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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
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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
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Our Rationale
Leverages our financial expertise
Leverages our knowledge of consumer needs
Develops more informed and responsible
consumers
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3
2
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• 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
A Financially Literate Customer…
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Use Credit Wisely
Citi’s Parallel Approach
Save & Invest Wisely Community
• Educational websites
• Credit tools & advice
• Media outreach
• Publications & seminars
• Industry investment fairs
• Financial literacy surveys
• Country/regional
programs for youth and
adults
• Capacity building of the
financial education
community
Responsible advice to customers and other consumers
BUSINESS RESPONSIBILITY
Support for:• Low-income/disadvantaged• Advocates/practitioners
COMMUNITYRESPONSIBILITY
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www.usecreditwisely.com
Australia, India, Indonesia,
Korea, Malaysia,
Philippines, Singapore,
Taiwan, Thailand
Citibank India’s website
Citibank Indonesia’s website
available in Bahasa
Use Credit Wisely – Educational Websites
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Use Credit Wisely – Localized Credit Tools & Advice
10.000 booklets produced and distributed
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• Journalist classes
including financial
education
• Involving various media in
major cities of Indonesia
• Participation and support
of regulators and partners
Use Credit Wisely –
Media Outreach
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Additional Media Outreach –
Consumer Protection
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Save & Invest Wisely – Publications & Seminars
• Alliance of Experts series – Hong
Kong, Korea, Singapore, Taiwan,
India, Indonesia and Philippines
• Regular publication to inform
customers on the latest trends,
financial tips, banking products and
services
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Save & Invest Wisely – Industry Investment Fairs
• Outreach to investors in collaboration
with major industry players
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“Fin-Q” Surveys
6 out of 10 Indonesians do not
save for their retirement
Regional Financial Quotient survey to
analyze financial literacy, and consumer
behaviour in savings, investing, insurance
and retirement
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Community – Agent Penny in Primary Schools
Primary school children – comic, drama,
teacher’s kit, website
Implemented in China, Hong Kong, Indonesia,
Malaysia, Singapore, Taiwan
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Community – Financial TV Show for General Public
TV Program with weekly financial
tips
Topics: credit cards, investing,
consumer finance, insurance, etc.
Audience can ask questions online
according to financial needs
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Community – Financial Education for The Poor
• Launched in 2007, aimed at helping
microentrepreneurs expand their
businesses
• US$131,000 Citi Foundation grant for
Indonesia to reach 150 microfinance
providers in Bandung, Jogjakarta,
Surabaya, Denpasar, Makasar and
Balikpapan
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Community – Developing Finance Sector Talent
• Citi University
Banking Course has
become part of the
university curriculum
• Similar banking
courses are running
across the region
University of
Indonesia
Lectures by Citi
Indonesia management
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Community – Financial Education Partnerships
Partnership with Bank Indonesia to
support 2008 Financial Education
Year
Educating the general public by
disseminating information and using
AYO ke BANK mobile units
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Community – Financial Education Capacity-building
Citi-FT Financial Education Summit - New Delhi, December 2007
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Citi’s Long-term Commitment to Financial Education
• “Knowledge is Your Greatest Asset”
• Creation of the Citi Office of Financial Education in 2004
• 10-year global US$200 million commitment to financial education programs (funded by the Citi Foundation and Citi businesses)
– US$121 million spent to date
– US$36 million spent in 2007 in 65 countries
– over 9 million “lives touched” in 2007