When you see a doctor, you expect them to diagnose and treat health issues. Similarly, you can expect your banker to take care of your financial well-being. It’s not just about providing financial products; it’s also about empowering clients to manage their money effectively. This can range from basic savings accounts to a variety of cross-sell products like credit cards, insurance policies, loans, and investments.
Financial well-being cannot be fully achieved without a focus on literacy and education for both bankers (employees) and clients. As a client, you can make wise decisions by choosing to work with entities that promote financial inclusion and educational initiatives.
Furthermore, implementing financial literacy programs for employees equips them to help clients and themselves develop healthy financial habits and make informed decisions. Ultimately, financial literacy encompasses a holistic understanding of money management, shaping attitudes and habits that lead to long-term financial well-being.
From a regulatory perspective, many financial organizations are required to comply with ESG (Environmental, Social, and Governance) standards set by investors and governments. Through the lens of a client, Lindsay Hamson, an ESG consultant, notes that “clients now favor brands, aka financial entities that care about sustainability. If you have money and want to put it somewhere, you have options to choose brands with a sustainability plan,” or those that focus on financial inclusion and education to serve customers, employees, and communities.
Financial education can be a key component of the ‘S’ in ESG—Social. As a client who cares about your financial well-being, you now have the option to favor financial brands that prioritize ESG or sustainability when selecting a bank, for example.
We have reviewed a few ESG reports from American Express* and the National Bank of Canada**. It is clear that both companies are making efforts to promote financial inclusion and education within their sustainability strategies. Importantly, each initiative includes specific impact metrics or data, rather than just photos and text for marketing purposes. Some of the Financial Literacy and Community Empowerment Initiatives in these reports:
*Financial Literacy Platform for Bankers/Agents*: A resource with tools and articles to help agents provide tailored financial advice to their clients.
*Managing Your Money Workshops*: Free, multilingual workshops for newcomers and immigrants, available both virtually and in-person.
*Financial Literacy 101*: An interactive online platform offering free financial education for students.
*Financial Literacy Month*: Workshops and articles on personal finance topics for clients, agents, and the community.
*Partnership with Finance Newsletter Provider*: Collaboration to deliver sponsored content that enhances financial literacy outreach.
*Women’s Finance Initiatives*: Content and virtual conferences designed to empower women in managing their finances, supported by a media campaign.
*Sponsorships*: Initiatives that promote financial literacy and encourages employee involvement like train the trainers program
*Media Awareness Campaign*: In 2023, the bank equipped financial writers and journalists with tools to understand the local financial landscape.
At Money With Mina, we offer a variety of financial literacy initiatives similar to those mentioned. We can partner with financial entities to provide customized financial education programs to clients, employees, and communities, to align with their mission. These programs can effectively meet ESG standards and reporting requirements. Ultimately, whether financial entities believe in promoting financial literacy or not, clients now have the power to choose brands that prioritize ESG, Sustainability, and Financial Inclusion.
*American Express (link)
**How We Support Sustainable Development (National Bank of Canada)
Financial literacy, ESG, and Inclusion with Kareem Refaay, MD London Institute of Banking & Finance
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