Appearance before the Standing Committee on Finance (July 7, 2020): Summary of COVID-19 international efforts to educate consumers

Backgroud

In early May, FCAC participated in the virtual meetings of the OECD International Network on Financial Education (OECD-INFE), an international forum for policy makers and stakeholders to exchange information and research related to financial literacy, education, and financial inclusion.

The spring meetings focused on sharing policy responses to mitigate the impacts of COVID-19 on consumers and identifying emerging trends and issues such as a greater reliance on digitalization for banking and delivery of financial education.

Data/Quick facts

• Internationally, COVID-19 is likely to result in the emergence of new vulnerable populations (i.e., women, youth, unskilled workers) and heighten the vulnerability of current at-risk populations such as seniors and low-income households.
• There is a significant international focus on communications and outreach targeting vulnerable populations via accessible communication channels using both traditional media (e.g., newspapers and TV) and non-traditional channels (e.g., webinars).
• Traditional media have been effective in reaching vulnerable populations who have lower digital literacy or who are unable to access online platforms (i.e., seniors, low-income populations).
• Some vulnerable populations such as seniors prefer to use cash, making digital literacy even more important and timely as financial transactions and education interventions are increasingly moving online.
• Internationally, there is a growing need for anti-fraud campaigns due to the rise in new types of fraud.

Key messages

• OECD and its member countries have implemented timely responses to support the protection and resilience of financial consumers.
• International policy initiatives and financial education actions to respond to COVID-19 are aligned with Canada’s responses (e.g. income supports, fraud prevention, consumer education, stakeholder engagement, measurement and evaluation).
• Moving forward, there is a need to advance digital literacy to assist consumers in accessing banking and other financial services and educational supports.