Financial literacy and consumer protection

Report
Empowering Tomorrow’s
Consumers
Consumer Protection & Financial Literacy
Sue Rutledge
Global Coordinator, World Bank
PARTICIPANTS:
PLEASE SIT WITH CONSUMER
ORGANIZATIONS FROM YOUR GEOGRAPHIC
REGION
Empowering Tomorrow’s
Consumers
Consumers International
World Congress 2011
5 May Hong Kong
Consumer Protection
& Financial Literacy
Sue Rutledge
Global Coordinator, World Bank
Global Program on Consumer Protection
& Financial Literacy
• Program for Europe & Central Asia Region
started 2005
• Global Program launched November 2010
• World Bank loans of $28 million
• Ongoing projects of $144 million
• Donor funding from Dutch BNPP, Japanese
PHRD, Russian Financial Literacy/Financial
Education Fund, Swiss SECO, UK DFID, USAID
3
Strategy for Country Programs
Input
Baseline
Household Survey
of Financial
Literacy &
Consumer
Behavior
Diagnostic
Review of Legal
& Regulatory
Framework
Action Plan to
Implement
Recommendations
Implementation
Program
Follow-up
Household
Survey
Feedback Loop
4
Projects Underway
Implementation Programs
Action Plans
-In pipeline
Household Surveys
-In pipeline
Diagnostic Reviews
-In pipeline
Status of Country Programs
• 33 countries have requested assistance
• Detailed diagnostic reviews completed in 12
countries
• Household surveys in 4 countries
• Action plans in 3 countries
• Implementation underway in 3 countries
• Planned activities in 14 countries
• Armenia, Azerbaijan, Bosnia & Herzegovina, India,
Kazakhstan, Malawi, Nicaragua, Pakistan,
Philippines, Russia, South Africa, Tajikistan, West
Bank/Gaza, Zambia
6
Initial Results of Country Programs
Czech
Republic
Slovakia
• First Financial Education Strategy (2007)
• Consumer Protection Department at CNB (2008)
• Financial Arbiter to cover all financial sector (2009)
• New regulation of financial intermediaries (2010)
• Banking Association’s ombudsman (2007) and new
financial ombudsman (2010)
Azerbaijan
• Central Bank’s Consumer Protection Unit (2009)
• Steering group on consumer protection (2010)
Lithuania
• MoF’s evaluation of institutional arrangement (2010)
• Industry association implemented recommendations
(2010)
Malawi
• Inter-institutional working group on consumer protection
& competition, including Reserve Bank (2011)
7
Main Stakeholders
GOVERNMENT
• Ministries (e.g. Finance,
Economy, Education)
• Public agencies (e.g.
consumer protection, data
protection, competition)
• Councils (e.g. consumer
protection, education)
CIVIL SOCIETY
• Consumer associations
• Debt counseling
• Foundations
• Academia
• Media
FINANCIAL
SUPERVISORS
• Financial supervisory
agencies
• Central Bank
• Financial consumer
protection agency
• Compensation schemes
REDRESS
MECHANISMS
• Ombudsman
• Arbitration
• Mediation, conciliation
• Courts
FINANCIAL INDUSTRY
• Industry associations
• Training centers
• Financial institutions
(incl. distributors)
• Financial infrastructure
(e.g. credit bureaus)
INTERNATIONAL
COMMUNITY
• Donors
• Regional organizations
• Standard setters
• International
associations
8
All Formal Financial Services
covered by Good Practices
Banking
Insurance
Good Practices for each sector focus on
Securities
o Consumer disclosure
o Business practices
Ins
o Complaints & dispute
resolution
Private
Pensions
o Financial literacy
Non-Bank
Credit,
incl. MFI
Credit
Reporting
9
Some Ideas on how Consumer
Organizations can Help
o Collect and publish case studies and other data on
consumer complaints about financial services
o Publish stories showing how consumers can exercise
their legal rights
o Publish comparable financial offers
o Provide glossary of common financial terms and
concepts
o Maintain a hotline of advice for financial consumers
o Go to court on behalf of financial consumers
o Advocate for improved consumer protection in
financial legislation
10
How can Consumer Organizations
become Eligible for World Bank Funding?
• Develop organization charts with defined roles
• Draft five-year strategies
• Prepare annual budgets
• Have annual financial statements audited by
independent auditor
• Establish track record of impact in helping
financial consumers
• Provide advice to government consumer
protection agencies
11
Empowering Tomorrow’s
Consumers
Consumers International
World Congress 2011
5 May Hong Kong
World Bank
Global Program on Consumer Protection &
Financial Literacy
Sue Rutledge - Global Coordinator
[email protected]

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