FINANCIAL LITERACY: Issues and Challenges

FINANCIAL LITERACY: Issues and Challenges

Paper presented at the

Annual Seminar for Insurance Correspondents

By

Babajide Oniwinde–

Deputy Director, Corporate Strategy

National Insurance Commission

14^{th – 15th November, 2013}

Presentation Outline


Introduction
Financial Literacy Strategy
NAICOM’s Role in Financial Literacy
National Financial Literacy Implementation



Committee


Challenges of Financial Illiteracy
Conclusion

.




　


Financial Literacy Strategy

Financial Literacy Strategy

Media collaborate to help public awareness campaign power of the media to change the behavior beliefs and attitude of people.

Report but also educate – accident - would be good if they had insurance.

The massage is – what are the risk faced and what are the provisions made for such risk?

Financial Literacy Strategy

In event of demise and no financial plan how will family survive.

　

Financial Literacy Strategy

Financial Literacy Strategy

CAR Fire

CAR Theft (Snatching)



Financial Literacy Strategy

HOUSE FLOOD

HOUSE FIRE



Financial Literacy Strategy

BUILDING COLAPSE

BUILDING BOOM EXPLOSION




　


Financial Literacy

The strategic focus is segmented into different categories for the delivery of financial education which includes: school children, youths and undergraduates, Educated persons, uneducated persons and other key stakeholders.

Formation of Financial Literacy Committee


The inaugural meeting of the financial literacy Steering Committee was held on 16th July, 2013 and the Committee is composed of representatives of the following financial regulators and two banks:
Central Bank of Nigeria
Other Financial Regulators: (NAICOM, PENCOM, SEC, NDIC, NSE)
Min. of Finance
Min. of Education,
Min. of Information
Min. of Communication Technology,
Consumer Protection Council
Bankers Committee Representative: (ACCESS BANK & UNION BANK).
Developmental Partners (GIZ)
Civil Society

　
　



Formation & Membership of Working Groups

Committee’s Proposed Initiatives




　
　



Expected Outcomes of Proposed Activities


The following are the expected outcome of the activities of the Committee:
Increased knowledge and appreciation of the benefits of inclusive financial services.
Reduction in the percentage of financial excluded persons.
Increase in the scope and scale of use of financial services.
Improved savings culture and financial discipline.
Improved private entrepreneurship capacity, and linkage with financial services.
More efficient use of financial services which will result in improved indices of financial institutions in terms of profits and sustainable operations.
Enhanced contribution to growth and well-beings of Nigerians.
Enhanced competition and innovation in the market, resulting in increased variety of products and services at more affordable cost.
Increased access to formal financial services




Challenges/Risks


Funding


Single-Source Funding Model: Sole- Sponsorship Model
Cost Sharing Model (determine cost- sharing ratios)



Commitment & Sustainability of Initiative

Key stakeholders buy-in

(Effective Communication & Change Mgt. Strategy)