Financial Education Forum Hosted by Nomura International plc 27 - - PowerPoint PPT Presentation

the business of life

Financial Education Forum

Hosted by Nomura International plc

27 October 2016

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Introduction

Russell Winnard Head of Educator Facing Programmes & Services, Young Enterprise

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Welcome

Charlotte Edgeworth Head of Community Affairs, EMEA Nomura International plc

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Update

Michael Mercieca Chief Executive Young Enterprise

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MAS update & the new Financial Capablity Week

Andy Briscoe Chairman Money Advice Service

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MAS update and new Financial Capability Week

moneyadviceservice.org.uk

Andy Briscoe – Chairman

MAS Update and new Financial Capability Week

27 October 2016

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MAS update and new Financial Capability Week

Financial Capability Week 2016

27 October 2016

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MAS update and new Financial Capability Week MAS update and new Financial Capability Week

Thank you

27 October 2016

Teaching Islamic Finance

Aftab Siddiqui Consultant on Islamic Finance Innovalue Consult

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Islamic Finance Advisory | Contact Center Solutions | Business Advisory

Islamic banking & finance & Young Enterprise’s journey October 2016

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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

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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

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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)

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Conventional banking Islamic Mudaraba - P&L Sharing

1. Refers to the addition in the amount of the principal of a loan according to the time for which it is loaned and loan amount 2. Recognizes the concept of money intrinsic value, trading in money 3. Loan is not contingent on the profit or loss

• utcome, i.e. regardless of the resulting

yield of the capital 4. Usually secured, so that the debtor has to repay borrowed capital plus the fixed interest amount 1. Sharing risk & rewards from the financing and investments the bank makes on customer’s behalf 2. Promotes trade and concentrate on economic transactions 3. Returns are based on the amount of profit/loss realized from each transaction 4. Losses are borne completely by the lender. The entrepreneur losses time, intellectual property and effort invested in the enterprise

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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

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Source UKTI

Islamic Finance Advisory | Contact Center Solutions | Business Advisory

Source UKTI

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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?

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Sharpening Financial Education – research outcomes from a European study

Caroline Jenner Chief Executive JA Europe

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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

445 39

RESPONDENTS

from the business and finance community

COUNTRIES

WHO ARE THE RESPONDENTS?

INDUSTRY ORGANIZATION SIZE

5% 43% 52%

 Financial Industry  Other Industries  No Answer  0-49  50-1000  More than 1000

36% 33% 31%

POLAND: Non-stop curricula from primary to upper secondary

• Progression of the learning
• utcomes
• More than 250,000 students &

4,700 teachers every year SPAIN: Partnering with the banking association

• Involvement of 1,043

volunteers from 24 banks and reached 14,211 students

• Reduces the gap between

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 status teach their peers UK: Interaction between financial and 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

• rganization need young people to be

equipped with? should be involved in delivering financial education to young people? should financial education be delivered to young people?

WHAT WHO HOW

WHAT key financial skills are needed?

WHAT key financial skills are needed?

WHAT key financial skills are needed?

WHAT key financial skills are needed?

Respondents believe schools are currently 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.

70% recognise their organisation’s potential to contribute at least a fair amount, particularly

when it comes to preparing young people for entering the workforce as an employee

SCHOOLS 92% PARENTS 65%

PRIVATE org. 49% PUBLIC org. 45%

WHO should be involved?

HOW should financial education be delivered?

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.

31% 2% 20% 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 interest/awareness/motivation from schools (20%) as far more problematic. 88% of respondents stated that

a combination of public and private initiatives would be the best way to

improve financial education.

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

• pportunity.

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.”

EE-HUB Recommendations

• Promote the benefits of school-business partnerships;
• Promote skills-based volunteering: a win-win opportunity
• Start early—implement a progression model from

primary to university; provide comprehensive support and training to teachers and head teachers

• Link entrepreneurship experiences with financial

education to reinforce understanding and relevance

• Monitor results and measure impact to ensure we focus
• n the right skills mix

#EEhubEU www.ee-hub.eu Led by JA Europe jaeurope.org

Department for Education update

Tom Nixon Head of Strategy Unit, Department for Education

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Lifesavers project moving forwards

Tom Sefton Advisor on Economics & Social Policy, Mission & Public Affairs Church of England

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Presentation to Financial Education forum, 27th October 2016

What is LifeSavers?

• A national, financial education

programme for primary schools, helping children and their families learn about money.

• Three core elements:
• School savings clubs
• Training and resources for teachers
• Parental and wider community

engagement

• Distinctive attributes: practical learning,

values-based, whole community approach

Savings club for pupils Whole community approach Teaching resources and CPD

Who is LifeSavers?

• Collaborative partnership between the

Archbishop of Canterbury’s Just Finance Foundation and Young Enterprise

• Funded by Virgin Money and HM Treasury/

Cabinet Office

• Locally, we work with schools, credit

unions and local churches

Why LifeSavers?

• Based on evidence of what makes for an effective financial education

programme:

• Starting early, when many habits around money are being

formed

• Providing practical experience, alongside classroom learning
• Taking a whole community approach to financial education
• Focusing on values and attitudes, as much as knowledge and

skills

Where is LifeSavers?

• Phase 1: small-scale pilot in six schools in 3 areas: Bradford,

Nottinghamshire and South East London (funded by HMT)

• Phase 2: wider rollout to 120 schools over 3 years (funded by Virgin

Money)

• Phase 3: website and CPD training to share resources and learning

with schools across the country (funded by Cabinet Office)

How does LifeSavers work?

Activity Short term outcomes Long term outcomes Overall aim

Values based financial education resources & training for classroom, plus whole school acts of worship School savings club set up in partnership with credit union & volunteers from church & community Regular engagement with parents/carers through homework, workshops, events, & school newsletters Pupils save regularly with school savings club, with support of staff, parents/carers and volunteers. Teachers have skills & confidence to deliver financial education as an integral part of primary education. Parents/carers more actively involved in children’s financial education & developing their own financial capability Children develop a savings habit, and through experience gain confidence in managing money. Children have age- appropriate understanding of money and wise, just, generous, thankful attitude to money. Parents/carers feel able to help children learn about money & consciously model positive behaviours.

GOAL: Children are equipped from an early age with the knowledge, skills, experiences and values to manage money well now and in the future as part of an embedded financial education programme within primary schools.

Educational Resources

“Five Big Questions About Money” classroom based resources

• Where does money come from?
• How does money make us feel?
• How can I keep my money safe?
• How does my money help others?
• What can we use our money for?

“Values For LifeSavers” whole-school collective worship/ assembly materials Exploring four values around money:

• Generosity
• Wisdom
• Thankfulness
• Justice

Savings Clubs

Savings clubs set up in school, in partnership with local credit union Run by volunteers from school and community –e.g. local church Pupils help run the savings club Handbook for school and credit union to walk through steps needed Each child given a passbook & stickers as they save Savers encouraged to set realistic savings goals & save for specific things

Wider Community Engagement

Parents & carers offered opportunity to volunteer with savings club. Classroom resources include ‘homework’ e.g. topics to discuss at home around money. Parents and carers offered workshops on how to help their children learn about money. Church & other community groups can support- e.g. with savings club, delivering assemblies. Awareness of credit union raised among teachers and families.

Key findings from the pilot

• Educational resources have been very well-received
• 40% take-up among pupils offered the savings club
• 85% of teachers said children enjoyed the teaching
• 100% of staff wanted LifeSavers to continue
• Unexpected benefits for pupil volunteers
• Role of area coordinator is vital to start things off
• LifeSavers contributes to positive school inspection
• Few withdrawals to date
• Too early to tell if it will raise credit union membership
• Not always easy to recruit adult volunteers or engage parents

What have LifeSavers schools said about the programme?

The children's enthusiasm for the scheme has been infectious as they've already started to talk to their friends about the savings club.

It’s exciting to see

• ur children are

thinking about their values with regard to money.

Training year 6 to run the savings club has been a brilliant

• pportunity for

responsibility which they have risen to.

Teacher enthusiasm has been very high despite competing commitments.

The holistic approach

• f the curriculum and

it being a whole school initiative for us has meant we are seeing the impact.

Messages are going home to parents via pupils about the importance of saving.

Evaluation of LifeSavers

• 2-year external evaluation to build evidence base on the benefits of

financial education:

• Data on the no. and regularity of junior savers
• Before-after survey of pupils
• End-of-year survey of teachers and parents
• 15 case studies: interviews/mini-focus groups with teachers,

parents, children & stakeholders

For more information

Tom Sefton, Social Policy Adviser, Church of England, Alison Tsang, LifeSavers Project Manager, Young Enterprise lifesavers@y-e.org.uk www.lifesavers.co.uk (from end of November)

Panel

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Close

We look forward to welcoming you to the next Financial Education Forum meeting on 23rd February 2017, at the British Museum

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