This presentation by Alicia Valencia was made during the first Roundable at the Conference on Global and European Trends in Financial Education in Istanbul on 22-23 May 2014, which explored the role(s) of the private and not-for-profit sectors in financial education, financial literacy and innovation for young people and financial education for migrant workers and their families. Find out more at http://www.oecd.org/daf/fin/financial-education/2014-conference-global-european-trends-financial-education.htm

1. OECD-INFE
GLOBAL AND EUROPEAN TRENDS IN
FINANCIAL EDUCATION
CONFERENCE
22-23 MAY 2013, ISTANBUL
FINANCIAL EDUCATION IN TURKEY

2.  Positive association between saving, investment and
growth
 Domestic saving to GNI fell from 23.5% in 1990s to 12%
in 2013
 Dependence on foreign savings Current Account
Deficit
 Increased consumption driven by a rise in credit flows
 Incapability of households in managing their debts as
conveyed in the National Financial Capability Survey.
OECD-INFE, Istanbul/TURKEY

3.  Real estate and gold is the dominant investment
instruments
 ISE Market Capitalization - 34 % of GDP (2013)
 Pension Funds - 1,2% of GDP (2013)
Outcomes:
- Room for Turkish financial markets to grow
- Need for policies to promote long term savings
and improve deepening of the financial markets
OECD-INFE, Istanbul/TURKEY

4.  A nationwide study (a geographically and socio-economically
representative nationwide sample, 3009 households)
 Conducted to inquire into financial capabilities, skills, behaviors,
tendencies, and decision-making patterns of citizens across Turkey
 Designed to provide input for active policies and programs that
would enhance financial literacy and make efficient use of available
resources in the country.
 The survey was sponsored by the IBRD (Selection No. 1046162) and
fielded in April-June, 2012 using face-to-face interview method.
 The survey instrument was developed in collaboration with the
World Bank and with the contribution of the Capital Markets Board
(CMB) of Turkey. It was based on the questionnaire previously tested
by the World Bank in several other countries. Each country made
their own distinct modifications in the questionnaire to be applied in
their country.
OECD-INFE, Istanbul/TURKEY

5. Main Goals:
 to help citizens to improve their understanding of capital
markets-related financial concepts and products; and
manage their money
 to provide information and tools to help citizens make
informed decisions about their finances
 to improve saving investment culture of general public
 to increase access to financial services and hence making
progress in financial inclusion
OECD-INFE, Istanbul/TURKEY

6. TARGET GROUPS
General Public with an emphasis on:
 University students
 School-aged children
 Women (including unbanked)
 Employees (public and private sector)
 Retired people
 Current and potential investors
 Others (Handicapped people, newly married couples, unemployed
people etc.)
OECD-INFE, Istanbul/TURKEY

7. • Ministry of Development  İstanbul Finance Center Project
• Ministry of Education
• Treasury
• Central Bank
• Banking Supervision and Regulation Agency
• Capital Markets Board of Turkey
• State Deposit Insurance Fund

8. National Strategy comprises a 5-year Action Plan with the
following programs & projects:
 National Survey on Financial Literacy funded by the World Bank to determine the current state
of art
 A website dedicated to financial education
 Facebook page with 5,243 members
 Seminars for women
 Seminars for university students
 Incorporating finance topics into school curriculum
 Essay contest for school aged children
 Simulation Games
 Promotion campaigns abroad for potential investors
 Preparing printed and electronic materials
 Establishing Call Center, improving existing ones
 Promoting Private Pension System
 Training the trainers
OECD-INFE, Istanbul/TURKEY

9.  Utilizing national education system’s online platform
where more than 17 million students and teachers
are users (www.eba.gov.tr)
 An efficient and effective way of reaching primary
and secondary education
 In February 2014 a Memorandum of Understanding
signed with Ministry of Education
 Online training for teachers, contests for students,
online games, informative videos, e-books and other
teaching materials will be the main tools
OECD-INFE, Istanbul/TURKEY

10.  Aligning priorities in a segmented financial sector
regulatory framework (banking, capital markets,
insurance)
 Lack of specific budget for financial education
 Ensuring involvement of all the relevant public, non-
public institutions (more than 40 stakeholders)
Strength:
Full political support
OECD-INFE, Istanbul/TURKEY