Relying solely on broad-based financial literacy schemes is ineffective for consumers and brokers, the chief executive of the
FBAA has told ASIC.
Peter White, CEO of the FBAA, has sat down with ASIC to discuss the need for personalised and measurable financial literacy programs.
“For effective financial literacy, the outcomes of learning need to be measurable. That then means it must be to the individual and not to groups as such. Tools on websites that are trying to educate a mass group, but have no means of showing that an individual has learnt anything do have their place for general information, but true financial literacy needs the outcomes measured for effectiveness,” he told
Australian Broker.
According to White, two new streams of effective and measurable literacy systems are set to enter the marketplace for borrowers, which will also provide best practice for continuing broker education.
Whilst White told
Australian Broker he could not reveal the specifics until they are ready to launch in a formal manner, he said the new programs will engage borrowers and brokers in an interactive online discussion forum – and most importantly, it will be tangible and measurable.
White’s ongoing discussions with ASIC forms part of a continual meet-and-greet he is having with the regulators to highlight the needs of the broking sector. Other discussion points with ASIC include the evolving needs in motor dealership vehicle finance.
The FBAA head has also met the Federal Shadow Financial Services Minister to talk through various lending and broker based issues and other matters relating to Lenders Mortgage Insurance.
The FBAA has also said that meetings are planned between White and the new Assistant Treasurer to highlight areas needing completing and/or improving under the NCCP.
