#financialedforum the business of life Financial Education Forum Hosted by Nomura International plc 27 October 2016
Introduction #financialedforum Russell Winnard Head of Educator Facing Programmes & Services, Young Enterprise
Welcome #financialedforum Charlotte Edgeworth Head of Community Affairs, EMEA Nomura International plc
Update #financialedforum Michael Mercieca Chief Executive Young Enterprise
MAS update & the new #financialedforum Financial Capablity Week Andy Briscoe Chairman Money Advice Service
MAS Update and new Financial Capability Week Andy Briscoe – Chairman 27 October 2016 6 moneyadviceservice.org.uk MAS update and new Financial Capability Week
Financial Capability Week 2016 7 MAS update and new Financial Capability 27 October 2016 Week
Thank you 8 MAS update and new Financial Capability MAS update and new Financial Capability 27 October 2016 Week Week
Teaching Islamic Finance #financialedforum Aftab Siddiqui Consultant on Islamic Finance Innovalue Consult
Islamic Finance Advisory | Contact Center Solutions | Business Advisory Islamic banking & finance & Young Enterprise’s journey October 2016
Islamic Finance Advisory | Contact Center Solutions | Business Advisory Agenda • Industry overview • Basic principles of Islamic finance • Conventional vs Islamic a comparison • Islamic banking Products • Regulatory development in UK • Development of Islamic financial institutions in UK • Young Enterprise’s journey
Islamic Finance Advisory | Contact Center Solutions | Business Advisory Industry overview • Islamic finance over a US$ 1.1trillion industry & growing • It has over 716 financial institutions globally • Presence in over 61 jurisdictions • Assets to raise over US$ 2 trillions • Leading financial groups HSBC, Citigroup, UBS & Nomura Source: Ernst and Young & Various
Islamic Finance Advisory | Contact Center Solutions | Business Advisory Basic principles • Basic premise of Islamic finance is sharing of profit and loss concept and to eliminate both interest and uncertainty from financial transactions • Islamic law prohibits investing in industries that are considered against the spirit of Islam and are non ethical (alcohol, pork, porn and other sin industries)
Islamic Finance Advisory | Contact Center Solutions | Business Advisory Conventional banking Islamic Mudaraba - P&L Sharing 1. Refers to the addition in the amount of the 1. Sharing risk & rewards from the financing principal of a loan according to the time for and investments the bank makes on which it is loaned and loan amount customer’s behalf 2. Recognizes the concept of money intrinsic 2. Promotes trade and concentrate on value, trading in money economic transactions 3. Loan is not contingent on the profit or loss 3. Returns are based on the amount of outcome, i.e. regardless of the resulting profit/loss realized from each transaction yield of the capital 4. Losses are borne completely by the lender. 4. Usually secured, so that the debtor has to The entrepreneur losses time, intellectual repay borrowed capital plus the fixed property and effort invested in the interest amount enterp rise
Islamic Finance Advisory | Contact Center Solutions | Business Advisory Islamic banking products • Profit sharing (Mudharaba) • Joint venture (Musharaka) • Cost plus (Murabahah) • Safekeeping (Wadiah) • Leasing (Ijarah) • Islamic insurance (Takaful) • Islamic Bonds (Sukuk) • Islamic Equity Funds
Islamic Finance Advisory | Contact Center Solutions | Business Advisory Source UKTI
Islamic Finance Advisory | Contact Center Solutions | Business Advisory Source UKTI
Islamic Finance Advisory | Contact Center Solutions | Business Advisory Young Enterprise’s experience • Teaching material developed during early part of pfeg’s (later to merge into Young Enterprise) formation • Currently no teaching resources available • Overall demand also seems to be low • What could be the reasons for this low demand?
Islamic Finance Advisory | Contact Center Solutions | Business Advisory
Sharpening Financial Education #financialedforum – research outcomes from a European study Caroline Jenner Chief Executive JA Europe
How the right partnerships can hone the skills of tomorrow’s workforce Caroline Jenner, CEO – JA Europe 27 October 2016
« Students who have had at least 4 interactions with employers while at school are 5 times less likely to be NEET and, on average, will make 16% more than their peers who have not had such interactions ». * *It’s Who You Meet, Education & Employers, UK
The EE-HUB
Special EE-HUB working group on financial education • European Banking Federation • JA Europe • Experts from Poland, Romania, Spain, UK, Turkey (in the case of UK, we worked with Young Enterprise (& pfeg)) • Organisation for Economic Co-operation and Development (OECD) • Vienna University of Economics and Business • Visa Europe
Survey Report Sept. 2016 www.jaeurope.org
SHARPENING FINANCIAL EDUCATION ... to support employment and entrepreneurial success.
Survey DEMOGRAPHICS WHO ARE THE RESPONDENTS? INDUSTRY ORGANIZATION SIZE 445 52% 36% 33% 43% RESPONDENTS from the business and finance community 39 5% COUNTRIES 31% Financial Industry 0-49 Other Industries 50-1000 No Answer More than 1000
SPAIN: Partnering with the banking association POLAND: Non-stop curricula from • Involvement of 1,043 primary to upper secondary volunteers from 24 banks • Progression of the learning and reached 14,211 outcomes students • More than 250,000 students & • Reduces the gap between 4,700 teachers every year school and the world of work, ensuring relevance of curriculum and providing role models and mentorship ROMANIA: Large scale blended learning initiative • In 5 years of reached over 800,000 beneficiaries • Complementary use of digital tools (face-to-face training sessions and two main e-learning) TURKEY: Peer-to-peer education model • 2.24 million people benefited from the programme which is active in 81 cities • Young people from a similar age group, background, culture and/or social UK: Interaction between financial and status teach their peers entrepreneurship education • Specialist ‘one stop shop’ for teachers and students • Entrepreneurship education is a highly effective way to teach financial education
Survey STRUCTURE financial skills does any business or WHAT organization need young people to be equipped with? should be involved in delivering financial WHO education to young people? should financial education be delivered to HOW young people?
WHAT key financial skills are needed?
WHAT key financial skills are needed?
WHAT key financial skills are needed?
WHAT key financial skills are needed?
WHO should be involved? 70% recognise their organisation’s potential to contribute at least a fair amount , particularly Respondents believe schools are currently when it comes to preparing young people for entering the workforce as an employee not fulfilling their potential. Only 19% stated that their country’s educational system is contributing at least a fair amount to equipping young people with the right financial skills. SCHOOLS 92% PARENTS 65% PRIVATE org. 49% PUBLIC org. 45%
HOW should financial education be delivered? Only 2% of respondents referred to trust as the main challenge to get involved in financial education citing time constraints (31%) and the lack of 88% of respondents stated that interest/awareness/motivation from a combination of public and private schools (20%) as far more problematic . initiatives would be the best way to improve financial education. 31% 20% 2% NGOs are appreciated as partnership builders and collaborators. 81% consider NGOs contribution in forging effective partnerships and providing volunteer opportunities are considered as extremely helpful.
HOW should financial education be delivered? “Volunteers are motivated by passion to transmit knowledge and, given their job, they are experts in their field. So you have a combination of both passion and knowledge that is not easy to find.” “Employee volunteering ads value, increases knowledge and creates some kind of "togetherness" in society - people feel they are not alone in their financial situations or considerations, they learn to pose questions and think critically, so they make better decisions.” “ Employee volunteering makes a bridge between school (academic approach) and the business environment.” Employee volunteering is one of the most common types of involvement from the private sector to support financial education. 63% of the respondents already involved in financial education are engaged in employee volunteering and consider it a win-win opportunity.
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