TheRoleofFinancialInstitutionsinFinancialEducation.pdfVIP

The Role of Financial Institutions in Financial Education Shariq Mukhtar Citi Country Officer, Indonesia OECD-Bank Indonesia International Conference on Financial Education October 21, 2008 Bali, Indonesia Financial Literacy in Indonesia ? Indonesia’s “Fin-Q” score: 52.2 (out of 100) ? If they lost their jobs tomorrow, most respondents said their savings would last them less than 11 weeks ? 6 out of 10 Indonesians do not plan for their retirement ? Less than 25% have a formal retirement plan ? 39% believe that they will rely on their children as they get old ? 58% admitted an “average” understanding of personal financial management Source: Citibank Indonesia Fin-Q (Financial Quotient) Survey - 2007 2 Our Rationale 1 Leverages our financial expertise 2 Leverages our knowledge of consumer needs 3 Develops more informed and responsible consumers 3 A Financially Literate Customer… ? Is more confident ? Saves for their retirement ? Develops financial goals ? Balances their checkbook ? Is concerned about their credit rating ? Lives within their means ? Follows a budget ? Is a home owner ? Establishes good relationships with financial institutions ? Loyalty factor 4 Citi’s Parallel Approach Use Credit Wisely Save Invest Wisely Community ? Educational websites ? Publications seminars ? Country/regional programs for youth and ? Credit tools advice ? Industry investment fairs adults ? Media outreach ? Financial literacy surveys ? Capacity building of the financial education community Responsible advice to customers Support for: and other consumers