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BANKING INDUSTRY WELCOMES PRELIMINARY RECOMMENDATIONS FROM CONSUMER AND FINANCIAL LITERACY TASKFORCE
Sydney, 2 September, 2004: The Australian Bankers’ Association (ABA) welcomes the preliminary recommendations made to the Federal Government by the Consumer and Financial Literacy Taskforce.
The banking industry supports the Taskforce’s key recommendation of the establishment of a national financial literacy body.
Chairman of the ABA and member of the Consumer and Financial Literacy Taskforce, John McFarlane said: “I would see this coordinating body would have the role of connecting financial literacy education providers with consumers of that information as well as facilitating collaboration between industry, government and communities.”
“The banking industry also agrees with the proposed functions of the coordinating body - integration of consumer and financial literacy into our schools, further development of financial education in the workplace, more research undertaken to help us understand consumer and financial decision-making, a clearinghouse website which has proved successful overseas, an awareness campaign and awards for excellence.”
“I also acknowledge that the industry itself has much work to do in ensuring the information it provides its customers is clear and easily understood. The dangers of selling financial products to customers who may not fully understand them are very clear. Our customers lose in situations where they buy products that may be more costly or risky than they understood. We lose by having dissatisfied customers and, in the worst cases, by regulatory intervention and fines. The thousands of banking and investment products for sale today mean we must do more to ensure that customers fully understand what they are buying.”
David Bell, Chief Executive of the ABA, said: “While understanding these are preliminary recommendations ahead of the Taskforce’s final report which will now be delivered to the incoming Government, this positive advice will help build Australians capacity to more effectively manage their money.”
The ABA and its member banks are committed to the national goal of improving Australians’ financial literacy. Through the ABA’s program, ‘Broadening Financial Understanding’, we aim to help Australians make informed and confident decisions regarding the use and management of their money at all stages of their lives.
The ABA has already released its first publication to assist consumers find a bank account which best suits their needs – ‘Smarter Banking – Make the Most of Your Money.’ In the pipeline is another publication on credit management and a series of fact sheets on financial literacy topics.
For many years, Australian banks have recognised the importance of financial literacy and have put in place their own programs and initiatives. The ABA’s program is designed to work along side and complement the programs of its member banks.
Background notes for editors:
· One of the first initiatives of the ABA’s Broadening Financial Understanding program was to consult with community groups about their clients’ financial literacy needs. The ABA held a workshop in March this year which brought together national and international experts, consumer representatives, policy makers and bank representatives to discuss contemporary issues and future challenges in improving financial literacy.
· A report prepared on the conference, ‘Broadening Financial Understanding Workshop – Summary of Outcomes’ was incorporated into the ABA’s submission to the Federal Government on the Taskforce’s discussion paper.
· For a copy of the Consumer and Financial Literacy Taskforce’s discussion paper ‘Australian Consumers and Money’ please visit the website: http://cfltaskforce.treasury.gov.au
· For a copy of the ‘Broadening Financial Understanding Workshop – Summary of Outcomes’ paper please visit the ABA website: www.bankers.asn.au
· To obtain a free copy of ‘Smarter Banking – Make the Most of Your Money” freecall the ABA on 1800 009 180 or visit the ABA website to read the publication online – www.bankers.asn.au
For further information:
Heather Wellard
ABA Public Relations
Phone: 02 8298 0411
Mobile: 0409 830 439
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