Strategy for Financial Literacy -

Hong Kong SAR

OECD-Thailand Seminar on Financial Inclusion and Financial

Literacy in Asia, December 2014

Jeanette Kwok

Senior Manager, Corporate Communications, Research & Planning

Investor Education Centre www.hkiec.hk

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Contents

Establishment of the IEC

Hong Kong context and gaps

IEC Strategy

Hong Kong Strategy for Financial Literacy

Future plan

ESTABLISHMENT OF THE IEC

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Road to IEC

Feb 2010

HKSAR Government published proposals for a dedicated investor education organisation.

Dec 2010

HKSAR Government announced decision to establish the IEC with widespread support from stakeholders.

May 2012

Securities and Futures Ordinance amended to allow SFC to delegate its broadened education function to the IEC.

Nov 2012

The IEC officially launched

Helping HK people improve

their financial knowledge

and capability

Supported by financial

regulators, Education

Bureau and finance

industry

Work closely with

government, finance,

education and community

sectors

About the IEC

HONG KONG CONTEXT AND GAPS

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Hong Kong - statistics

Population 7.235 million (mid-2014)

Labour force 3.908 million (3.3% unemployment rate)

Oct 2014

GDP HKD2,022.2 billion / USD261 billion (2013)

GDP (per capita) HKD295, 303 / USD38,098 (2013)

Life expectancy Male: 81 Female: 86 (2013)

IEC Research: Financial literacy & capability

Financial

control 93% lived within

means

48% did not have a

budget plan to

manage expenses

Debts 1 in 5 HK people had

borrowed money and

19% had failed to

repay their debt

repayments on time.

13% admitted that they

struggled against

temptations

Financial goals Financial planning -

least knowledge and

capability

82% had financial

goals, but only half took

actions to achieve

Financial

resilience Half did not set aside a

fund for unexpected

financial needs

Youth Problems dealing

with money in

particular credit

cards

Least engagement

Investments One-third of investors

expected to have over

20% for their annual

investment returns

55% considered that

investing in RMB

guaranteed value

appreciation.

Retirement 16% did not save

Inflation was ranked top financial

concern, retirement needs came last.

Only 22% actually estimated how much

they need for retirement

IEC Research: Financial literacy & capability

IEC STRATEGY

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IEC Strategic Plan

2013 - 2016

Mass media

Research and evaluation, stakeholder collaboration

and international engagement

Community

outreach Website

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Strategy and approach

• Website: A central place

for comprehensive,

credible and impartial

financial information and

resources

• Outreach

activities for

school, youth,

grassroots and

elderly

• Media

campaigns on

TV, radio, print

and outdoor

channels

HONG KONG STRATEGY FOR FINANCIAL STRATEGY

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Objectives of Hong Kong Strategy for

Financial Literacy

Efficient

Relevant Consistent

Impactful

Improving financial literacy in HK

Contribute to

common objectives

Avoid duplication & ensure integration

Stimulate momentum

Provide guidance

and platform

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Key steps to building Hong Kong Strategy

for Financial Strategy

Audit of existing financial education initiatives & relevant research

Assess population needs to identify and agree target groups

Stakeholder consultation – clarify roles and responsibilities

Create structure for governance, co-ordination and implementation

Awareness, communication & engagement

Evaluation framework

IEC Financial Literacy Forum 2014

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Over 150 local and overseas practitioners and distinguished guests representing

the government, finance, education and community sectors gathered to discuss

promoting and improving financial knowledge and capability in Hong Kong.

FUTURE PLAN

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Refine IEC Strategy

Consumer research: IEC Brand & Resources

What works and what not

- Key audiences

- Gaps and mapping of contents and resources for audience

capability and needs

- Communications

- Brand acceptance, effectiveness and preferred qualities

Hong Kong Strategy for Financial Literacy and IEC Strategy

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Key focus areas

Develop Hong Kong Strategy for Financial Literacy

Financial Competency Framework (students and adults)

Independent, credible and accessible authority and brand for

financial education

Financial Capability and Behaviour Monitor

THANK YOU!

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