Building Confidence by Building Awareness

Transcription

1 Building Confidence by Building Awareness Increasing Public Awareness The Task of Deposit Guarantee Schemes The Bank Deposit Guarantee Fund (Romania) And The International Association of Deposit Insurers Fred S. Carns Director Office of International Affairs March 2011

2 Public Awareness of Deposit Insurance Systems Program Outline Enhancing Public Awareness of Deposit Insurance - Objectives of a Public Awareness Program - Organizing an Effective Public Awareness Campaign - Overview: FDIC Public Awareness Programs - FDIC Deposit Insurance Awareness Campaigns: Before and During the Financial Crisis Slide 2

3 Objectives of a Public Awareness Program IADI Core Principle: Public Awareness Enhancing the Level of Stakeholder Awareness Building Public Confidence in the DI and Banking System Building Acceptance A successful public awareness program sends the right messages, educates its target audience, instills consumer confidence, and builds a positive and credible brand image for the deposit insurer to enhance financial stability Slide 3

4 Objectives of a Public Awareness Program Establishing Consistent Objectives and Understanding The public should be continually familiarized with the benefits and limitations of the DI system Awareness enhances confidence to close gaps in public knowledge and expectations Building Acceptance Policymakers should consider public consultations with key stakeholders Objectives: Public feedback Modification planning Consensus-building Slide 4

5 Objectives of a Public Awareness Program Awareness: An Internal and External Process Sustaining Public Awareness Enhancing the Level of Stakeholder Awareness Deposit Insurers can broaden public awareness by providing more information and extending the target audience Engagement and Feedback Channels Using the best vehicle to reach a target audience will ensure that messages remain effective and relevant Internal Communication DI employees can strengthen the brand image and communication channels with the external audience Slide 5

6 Objectives of a Public Awareness Program Maintaining Public Awareness Building Public Confidence in the Deposit Insurance and Banking System Objectives after establishing a DI system: Building the reputation of the deposit insurer as a wellmanaged and capably-governed organization Complementing the operations of the DI system Good consumer relationships are maintained through depositors positive experience with the deposit insurer Upholding Public Confidence DI systems should seek awareness and maintain desired levels of visibility with target audiences Slide 6

7 Objectives of a Public Awareness Program Strengthening Consumer Protection Keeping Consumers Informed Broadening the spectrum of a Public Awareness campaign: Which financial instruments are covered by deposit insurance The reimbursement process: How depositors may file claims Identifying which financial institutions offer insured deposits Deposit insurance coverage limits - Promoting awareness of the deposit insurance system - Promoting safe banking practices to protect depositors Consumer protection involves other financial safety net players - Particularly important for countries without a single agency charged with consumer protection duties Slide 7

8 Organizing an Effective Public Awareness Campaign Identify & Institutional Depositors Determine: - Target Audience Groups General Public & Depositors - Appropriate Message from the Deposit Insurer Media Legislators & Other Authorities Member Institutions Slide 8

9 Organizing an Effective Public Awareness Campaign Responsible Parties and Content Whose Message? - Deposit Insurers are the primary parties responsible for promoting deposit insurance awareness - Deposit Insurers should work closely with other financial safety net players to identify and share common objectives in presenting communications about financial stability - Collaborative initiatives underscore a cohesive message What Message? - Messages should focus on the introduction of the deposit insurance system and the level and scope of coverage - Content should take into account the stage of DI system development and specific national needs - Information should be presented in the most concise and simple language Slide 9

10 Organizing an Effective Public Awareness Campaign Communication Tools - Effective tool combinations take into account literacy levels, population size, demographic characteristics of specific target audiences, and budgetary constraints Signs Printed Materials Mass Media Logos - Integrated communication plans should be implemented to ensure consistency Lectures & Seminars Toll Free Lines Web sites Slide 10

11 Organizing an Effective Public Awareness Campaign Timing, Budgets, and Resources Frequency of Communication Budgetary Considerations - Ongoing activities should be conducted at the national, regional, or district level - Monitor public perceptions and reactions to keep current information in consumer consciousness and assess the needs of new target audiences - Campaign timing is key during periods of critical transition for a DI system - Evaluate the type/frequency of public awareness campaigns and the communication tools to be used - Newly established organizations need larger budgets and should evaluate campaign costs and strategies to benchmark future activities - Consider activities that can be performed in-house and those which will require outsourcing Slide 11

12 Organizing an Effective Public Awareness Campaign The Evaluation Process Analyzing the effectiveness of a public awareness campaign: Three Key Categories 1. Output measures 2. Outcome measures 3. Impact measures Output Measures Outcome Measures Impact Measures Slide 12

13 Overview: FDIC Public Awareness Programs FDIC Public Awareness programs can be divided into pre- and post-failure categories Activities Before a Bank Fails Activities After a Bank Fails External Assistance Depositor Information Community Outreach Nationwide Communications FDIC Consumer Protection Toll Free Call Center Training and education for bank employees FDIC Signage at teller stations EDIE Interface Print and Broadcast Media Coverage Consumer News Magazine Web and Video Educational Resources Town Hall Meetings to advise local community members Branch level FDIC support Regional Educational Events Press Releases (multiple languages) Web site for closed banks Deposit Insurance Awareness Campaigns Collaboration with other financial safety net players Internal FDIC communication Slide 13

14 Overview: FDIC Public Awareness Programs Household Survey on Deposit Insurance Awareness, 2001 Slide 14

15 FDIC Deposit Insurance Awareness Campaigns: Before and During the Financial Crisis Pre - Crisis Deposit Insurance Outreach - Conducting deposit insurance seminars for bankers on the deposit insurance rules - Collaboration with the Office of Public Affairs and others to identify opportunities to publicize FDIC deposit insurance coverage - New FDIC Sign and Changes to the Advertising Rules for teller signage - Update/re-design of the Electronic Deposit Insurance Estimator (EDIE) in Nationwide seminars to increase awareness about FDIC deposit insurance resources for consumers - Marketing the FDIC s deposit insurance seminars to bank trade organizations - Release of new videos and publications on the FDIC s rules for deposit insurance coverage Slide 15

16 FDIC Deposit Insurance Awareness Campaigns: Before and During the Financial Crisis - A comprehensive best-practice financial education curriculum Money Smart - Launched in 2001, the FDIC has exceeded its original commitment to reach one million consumers - Free and available in four primary formats, including an instructor-led curriculum for adults in seven languages and an edition of Money Smart for Young Adults Slide 16

17 FDIC Deposit Insurance Awareness Campaigns: Before and During the Financial Crisis During the Crisis: Deposit Insurance Campaigns - Since 2008 the FDIC has carried out an extensive, multi-year public education campaign aimed at raising awareness of how FDIC deposit insurance works - The effort was initiated after receiving thousands of inquiries from depositors and bank employees about deposit insurance information and guidance in the wake of bank failures Slide 17

18 FDIC Deposit Insurance Awareness Campaigns: Before and During the Financial Crisis During the Crisis: Deposit Insurance Campaigns The FDIC Teams up with '60 Minutes' A Confidence-Building Story - Televised on March 8, 2009, the segment featured an FDIC closing team executing a resolution plan and enabling a failed bank to reopen - The segment demonstrated the FDIC alleviating the concerns of bank employees and customers - The FDIC s duty to protect insured deposits and build public awareness was highlighted throughout the program Slide 18

19 FDIC Deposit Insurance Awareness Campaigns: Before and During the Financial Crisis During the Crisis: Deposit Insurance Campaigns 2008 FDIC Campaign Promoting Deposit Insurance - Series of public service announcements featuring personal finance expert Suze Orman and FDIC Chairman Sheila C. Bair - Ads feature information to help consumers learn about the benefits and limitations of deposit insurance - Topics include the importance of keeping funds in insured accounts and knowing how FDIC insurance works - The public is encouraged to visit myfdicinsurance.gov, a new FDIC Web site to watch the TV spots Slide 19

20 FDIC Deposit Insurance Awareness Campaigns: Before and During the Financial Crisis Deposit Insurance Awareness Efforts: FDIC Activities in February 2011 Notice of Proposed Rulemaking 3 March 2011 Financial Institution Letter - Board of Directors issued a Notice of Proposed Rulemaking to improve consumer awareness of deposit insurance coverage. Proposed rules would require: - Annual training for bank staff - Alerting new customers to whether their accounts might exceed the deposit insurance limit - Financial institutions to provide basic FDIC-published literature - The FDIC will conduct 10 telephone seminars on deposit insurance coverage rules - Bank employees and officials may voluntarily participate - Each seminar will run 120 minutes and be followed with a question-andanswer session Slide 20

21 Thank You March 2011