Czech Banking Association – Leader of the Financial Literacy Web-Page Project
Web-Project Summary also avialable on: www.financnivzdelavani.cz/Project_Summary
Professional associations and other entities, operating on the financial, banking and capital market in the Czech Republic have launched a project of the mutual web-pages, that is supported by the Czech National Bank and by the Ministry of Finance. Czech Banking Association (CBA) has initiated and co-ordinated this project. Czech Banking Association still acts as a leader in the entire process, and as a chief project co-ordinator. This role of the CBA emerges – inter alia – from a dominant position of banks in the financial sector of the Czech Republic. Each of participating associations utilises in the framework of the project a unique opportunity to provide the information needed to all persons interested in a better understanding of the principles of functioning of the financial products. Responsibility of every involved association for the contributions that topically fall into the sphere of its competence is linked to this. Education in financial matters, which is set as its objective, consists of the dispersion of financial literacy through a non-profit educational web and is aimed at explanation, how the financial products are functioning, what are the approaches to the solution of needs, goals and situations, which in the end are always somehow linked to money.
Key principles of the project of web-pages on financial literacy are:
- non-commercial character: the whole project is conceptualised as non-commercial, i.e. it contains no advertising messages, profitability assessment of various variants or any other concealed commercial recommendations. The respective OECD recommendations, articulated in the “Recommendation on Principles and Good Practices for Financial Education and Awareness” found their reflection in the project.
- unique character: the project is unique of its kind in the Czech Republic, which – however – has not as its aim to substitute a regular education on financial matters in the framework of the educational system.
- simple and easy to access: web-pages are designed so as to make the information accessible to all interested persons, regardless their technical equipment. This is the reason, why a web-page design is oriented in its text contents on an applicability of information after its downloading and printing without using a computer.
- voluntary principle of education: the project is designed as one of the sources of information from the sphere of financial products and services. As a “primer”, introducing into the world of finance, it is not aspiring on coercion of anybody to use these web-pages, but rather relies on attraction of interested persons, who wish to be capable to orient themselves in a standard offer by respective financial institutions of financial instruments for a client as an individual.
ongoing concept of the project: a follow-up and up-date shall be done in the course of the first year of functioning of the web-pages. The project is going to continue in the following years. Creation of a steering structure on the basis of an agreement among project partners - professional associations is assumed for this long-term phase of the project, i.e. administering financial literacy web-pages.
The structure of the web-pages is divided into several pillars, differing from each other by the way, how these issues are perceived. It is either a view directly through different financial products and services or a view through the needs, which emerge from the fact, that as individuals we find ourselves in various life periods or situations in the course of time, which require an appropriate response also from the financial view. An inseparable part of the web-pages form also the glossaries of terminology for various areas, which provide a clarification of professional terms and words to the amateurs in the world of finance.
Purpose pillar consists of two main components, viewing the financial needs of everyone of us with regard to the fact, that we are situated in a concrete phase of the life cycle or in a specific situation, which may take place practically at any time:
- life cycle periods: in the course of our life we are going through various periods, which influence our needs, e.g. by setting up family, by studies, entry into retirement age; this is reflected in also on our financial needs. These contexts are dealt with in the life periods part of the contents.
life situations: perhaps everyone of us is facing – from time to time – necessity to solve certain specific life situations. Many circumstances have to be taken into consideration, irrespective whether we are intending to take a loan, to make a deposit or to invest, to conclude insurance contract etc. The main of these factors, which it is advisable to take into regard, are noted in a part on various life situations.
Main objective of the product pillar is to familiarise interested persons with principles, on which the various financial products and services that we can currently find in the offer of banks and financial institutions, are functioning. The pillar is divided into parts corresponding to the segments of the financial market and provides for other useful information.
- Banking (including building societies products etc.)
- Financial transactions and distributions
- Investing and financial markets
- Pension insurance