SAIA and FSB share passion to fight financial illiteracy

The two organisations will launch their partnership on Thursday, 21 April 2005, with the handing over of cheques to the FSB, the signing of a general memorandum of understanding and concluding a service level agreement with the first service provider of t

SAIA corporate affairs manager, Viviene Pearson, says consumer education is an important obligation for everyone in the financial services sector, especially in terms of the Financial Sector Charter.  She says SAIA has therefore pledged to spend many millions of rand on consumer education in the years to come as obligated by the Charter.

SAIA has set aside R4 million for this purpose for 2005.

“SAIA launched into its responsibility to help educate financial services consumers by establishing the SAIA Financial Sector Charter Consumer Education Initiative on behalf of its participating members. It has now joined hands with the FSB to combat financial illiteracy through three special projects,” she says.

Olivia Davids, head of the FSB’s consumer education department, says the partnership was a breakthrough in the FSB’s efforts to coordinate and focus financial consumer education programmes.

“The FSB does not have the financial resources to address the financial illiteracy problem in this country. But it has established several key initiatives to provide an enabling environment for consumer education, such as the Financial Services Consumer Education Foundation, through which we seek partnerships such as this one with SAIA,” she says.

The FSB has also coordinated the development of a consumer education initiative as well as consumer education materials with extensive industry and other stakeholder input. The initiative and educational materials will form the basis of consumer education activities.

SAIA has earmarked three projects for the joint venture with the FSB.  It includes empowering teachers to teach financial literacy, holding financial literacy workshops throughout South Africa and a financial literacy education drive. 

Pearson says the empowering project is aimed at grade 10 to 12 teachers. “We will be developing and providing a resource kit and facilitating teacher training workshops at all levels of the education system,” she says.  

The financial literacy workshops will be aimed at LSM 1 to 5 level consumers in rural areas, while the financial literacy education drive will be aimed at reaching commuters using taxis, trains and buses country-wide. 
 
The SAIA consumer education initiative sets strict criteria for approving project funds, including a stated objective consistent with the Financial Sector Charter (FSC). “The outcome must be measurable, even if imprecisely, and projects must ensure full points on FSC scorecard,” Pearson says. 

Projects must therefore be aimed at black people and at LSM levels 1 to 5, while focusing on financial knowledge and empowerment. Projects should also reach as wide a range of people as possible and have a lasting effect on people’s lives.

“Furthermore, projects should not be about marketing. They must be able to stand alone without overt branding,” Pearson adds.

She said SAIA has always believed that synchronized efforts with regard to consumer education were more meaningful than individual efforts. “That is why we are proud to be joining hands with the FSB on consumer education.  Their projects met our specific criteria and with the FSB’s resources and commitment we will make a real difference in the lives of many South Africans,” she says