LIVE: Int'l forum on personal finance and financial literacy

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LIVE: Int'l forum on personal finance and financial literacy

The 2012 Citi-Financial Times Financial Education Summit brings NGOs, financial institutions, consumer advocates, private businesses and others from Asia Pacific and beyond

  • Kraska says their company focuses on now is consumer protection.
  • Conference venue still full. This is a well attended event.

  • Kraska: we need to have everybody engaged in this process. we;re not completely altrusitic on financial capability. this is in the best interest of our industry. if we have financial savvy customers, they buy more products, etc.
  • Kraska: we have that as a common goal. there's strength in partnerships
  • Kraska says they they want to make sure customers are top of mind in product devt...they must be easy to understand and explain.
  • Kraska says customers can't deal with 'pages and pages' of docs. keep things simple.
  • Kraska says advertising must be clear. it has the elements of financial education.
  • Kraska says, however, it has to have an element of education and make sure customers understand everything about those products - transparency from point of sale onward.
  • Kraska says they can measure impact. they learned a lot about what works for customers, their customers are not shy. their customers are using their products in the way they envisioned it.
  • Kraska says innovation can spur financial education...govt's role is embedding financial education in the curriculum.
  • Kraska says NGO partners helps them a lot, they know their clients.
  • Kristin Kraska is the director for Governance, Regulatory & External Affairs of Citi Global Consumer Banking

  • Kraska: we partnered with the City of San Francisco on children's savings accounts. San Francisco has also embedded financial education in the Math curriculum.
  • JC Parrenas, Coordinator of the Advisory Group of APEC Financial System Capacity Building talks about PPPs
  • Parrenas: the public sector alone cannot absorb these costs.
  • Parrenas: cannot take financial ed as one element alone. models alone cannoty bridge the gap.
  • Parrenas: we need a roadmap. efforts can succeed through a roadmap.
  • Julius Caesar Parrenas is an international govt relations professional w extensive experience in PPPs in areas of finance, business and economics

  • Parrenas: we need to combine financial education with financial access. need to create products for the unbanked.
  • Parrenas: govts roles including developing strategies, raising awareness on potential needs, consumer protection awareness, etc.
  • Parrenas says what's important is disclosure of financial products, providing advice, delivery of financial products, appropriate to the needs of people, among others.
  • Parrenas says collaboration among various institutions is also important as well as focus on financial ed of children.
  • Parrenas: financial ed should be included in school curricula.
  • Parrenas says challenges - making topics relevant, teaching teachers, and others.
  • Next speaker is Richard Hinz.
  • Hinz talks about what it takes to build financial capability.
  • Richard Hinz of World Bank has a work background that includes reforms in social security systems and regulation of pension funds

  • Hinz: absence of self control, procrastination and inertia affects decisionmaking.
  • Hinz says the degree of trust in institution affects the number of interests on an institution.
  • Hinz says biology matters.
  • Hinz: behavior is the result if the interaction of these two - reflective and cognitive - but they they are often in conflict and it is not always obvious which dominates.
  • Hinz says in the 998,000 years of evolution there has been a selection bias in favor of impulsive present orientation of people.
  • Hinz says peer group effects are important in financial decision.
  • How biology affects financial decision making

  • Hinz: farmers purchase more crop insurance when there is a higher density of training in the community.
  • Hinz: Social pressure affects financial decisions

  • Hinz: how do you stop people from smoking? don't put messages in packs.
  • Hinz says that in France, they say smoking can cause impotence, they can kill you and your friend.
  • Hinz: mass media could be more influential that norms.
  • Hinz: money has strong cultural implications. financial capability depends on the setting - urban vs rural, etc.
  • Professionals in this field are careful about framing their questions, approach on cultural, social norms

  • Hinz quotes Mark Twain. I've never let my schooling interfere with my education.
  • Floor opens for questions.
  • Sicat: the main focus of our capital market ed is to be part of any portfolio of investment. not just current working adults - but students.
  • Sicat: the educ efforts focus on basic saving strategies. it is a challenge. we are working with Banking Association of the Phils. the nation is 'over-banked'
  • Rep of Citi-Singapore asks Philippine Stock Exchange chief Hans Sicat about stock market education approach

  • Kraska: its about finding the right product, not just the point of sale but value over time. you have to build in other components.
  • Closing remarks will be delivered by Sanjiv Vohra, Citi Country Officer, Philippines.
  • Vohra thanks all participants who are still here. most tables are still full at this hour.
  • Vohra said Citi has helped make banking available to all
  • Vohra: we are confident that if you all work together, financial ed will improve to reach those who need them the most.
  • Vohra: financial ed is a life skill... we remain comitted to empowering communities through financial community programs. Maraming salamat at mabuhay tayong lahat.
  • Sanjiv Vohra, Citi Country Officer- Philippines, hopes this financial education summit will be part of the bank's landmark contributions to the country.

  • Summit closes.
  • Still full.

  • More post-event networking.

  • Rappler's Cai Ordinario joins ambush interview with PSE's Hans Sicat.

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