Building Confidence by Building Awareness

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					 Building Confidence by Building
           Awareness
Increasing Public Awareness – The Task of Deposit Guarantee Schemes




              The Bank Deposit Guarantee Fund (Romania)
                                   And

             The International Association of Deposit Insurers




                            Fred S. Carns
                                Director
                    Office of International Affairs

                           30 - 31 March 2011
 Public Awareness of Deposit Insurance Systems



Program
 Outline

           Enhancing Public Awareness of Deposit Insurance

           - Objectives of a Public Awareness Program

           - Organizing an Effective Public Awareness Campaign

           - Overview: FDIC Public Awareness Programs

           - FDIC Deposit Insurance Awareness Campaigns:
             Before and During the Financial Crisis




                                                                 Slide 2
Enhancing Public Awareness of Deposit Insurance
Objectives of a Public Awareness Program


                IADI Core Principle: Public Awareness

                                                               Building Public 
                                                             Confidence in the DI 
                                                             and Banking System
                              Enhancing the Level of 
                                  Stakeholder 
                                   Awareness

   Building Acceptance



  A successful public awareness program sends the right messages, educates its
  target audience, instills consumer confidence, and builds a positive and credible
  brand image for the deposit insurer to enhance financial stability

                                                                                      Slide 3
Enhancing Public Awareness of Deposit Insurance
Objectives of a Public Awareness Program

    Establishing Consistent Objectives and Understanding

                 The public should be continually familiarized with the
                 benefits and limitations of the DI system
                    – Awareness enhances confidence to close gaps in public
                      knowledge and expectations


  Building       Policymakers should consider public consultations with
 Acceptance      key stakeholders
                 Objectives:
                    – Public feedback
                    – Modification planning
                    – Consensus-building


                                                                          Slide 4
Enhancing Public Awareness of Deposit Insurance
Objectives of a Public Awareness Program

         Awareness: An Internal and External Process

                 Sustaining Public Awareness
                 – Deposit Insurers can broaden public awareness by
                   providing more information and extending the target
                   audience
  Enhancing      Engagement and Feedback Channels
 the Level of    – Using the best vehicle to reach a target audience
 Stakeholder       will ensure that messages remain effective and
 Awareness         relevant
                 Internal Communication
                 – DI employees can strengthen the brand image and
                   communication channels with the external
                   audience

                                                                         Slide 5
Enhancing Public Awareness of Deposit Insurance
Objectives of a Public Awareness Program

                Maintaining Public Awareness


                  Objectives after establishing a DI system:
   Building          – Building the reputation of the deposit insurer as a well-
                       managed and capably-governed organization
    Public 
 Confidence 
    in the        Complementing the operations of the DI system
   Deposit           – Good consumer relationships are maintained through
                       depositors’ positive experience with the deposit insurer
  Insurance 
 and Banking 
   System         Upholding Public Confidence
                     – DI systems should seek awareness and maintain
                       desired levels of visibility with target audiences

                                                                              Slide 6
Enhancing Public Awareness of Deposit Insurance
Objectives of a Public Awareness Program

                       Strengthening Consumer Protection

Keeping Consumers Informed                Broadening the spectrum of a Public
                                          Awareness campaign:

 Which financial            Identifying        - Promoting awareness of the deposit
                               which            insurance system
 instruments are
                             financial
 covered by deposit
                           institutions
 insurance
                          offer insured        - Promoting safe banking practices to
                             deposits           protect depositors

                                          Consumer protection involves other
 The
 reimbursement                            financial safety net players
 process:
                      Deposit insurance       - Particularly important for countries
 How                   coverage limits          without a single agency charged with
 depositors may
                                                consumer protection duties
 file claims


                                                                                       Slide 7
Enhancing Public Awareness of Deposit Insurance
Organizing an Effective Public Awareness Campaign


                                     Institutional
Identify &                            Depositors

Determine:
 - Target Audience                    General
   Groups                             Public &
                                     Depositors


 - Appropriate                                         Member
                       Media                         Institutions
   Message from the
   Deposit Insurer
                                     Legislators
                                      & Other
                                     Authorities

                                                             Slide 8
Enhancing Public Awareness of Deposit Insurance
Organizing an Effective Public Awareness Campaign

        Responsible Parties and Content
        Whose Message?                            What Message?

- Deposit Insurers are the primary          - Messages should focus on the
  parties responsible for promoting           introduction of the deposit
  deposit insurance awareness                 insurance system and the level
                                              and scope of coverage
- Deposit Insurers should work closely
  with other financial safety net players   - Content should take into account
  to identify and share common                the stage of DI system
  objectives in presenting                    development and specific
  communications about financial              national needs
  stability                                 - Information should be presented
- Collaborative initiatives underscore a      in the most concise and simple
  cohesive message                            language



                                                                               Slide 9
Enhancing Public Awareness of Deposit Insurance
Organizing an Effective Public Awareness Campaign

                 Communication Tools

- Effective tool combinations               Printed Materials
 take into account literacy
 levels, population size,
 demographic characteristics      Signs                          Logos
 of specific target audiences,
 and budgetary constraints
                                              Mass Media

- Integrated communication       Lectures
 plans should be                    &                           Web sites
 implemented to ensure           Seminars
 consistency                                   Toll – Free
                                                 Lines


                                                                            Slide 10
Enhancing Public Awareness of Deposit Insurance
Organizing an Effective Public Awareness Campaign

       Timing, Budgets, and Resources
 Frequency of Communication             Budgetary Considerations

 - Ongoing activities should be         - Evaluate the type/frequency of
   conducted at the national,            public awareness campaigns and
   regional, or district level           the communication tools to be used
 - Monitor public perceptions           - Newly established organizations
   and reactions to keep current         need larger budgets and should
   information in consumer               evaluate campaign costs and
   consciousness and assess the          strategies to benchmark future
   needs of new target                   activities
   audiences
                                        - Consider activities that can be
 - Campaign timing is key during         performed in-house and those
   periods of critical transition for    which will require outsourcing
   a DI system

                                                                            Slide 11
Enhancing Public Awareness of Deposit Insurance
Organizing an Effective Public Awareness Campaign

The Evaluation Process
Analyzing the effectiveness of a
public awareness campaign:
                                    Output
Three Key Categories               Measures              Outcome
1. Output measures                                       Measures
2. Outcome measures
3. Impact measures



                                               Impact 
                                              Measures




                                                             Slide 12
Enhancing Public Awareness of Deposit Insurance
Overview: FDIC Public Awareness Programs

FDIC Public Awareness programs can be divided into pre- and
                  post-failure categories
       Activities Before a Bank Fails                      Activities After a Bank Fails 
       External              Depositor                  Community                Nationwide 
      Assistance            Information                  Outreach              Communications


  FDIC Consumer             EDIE Interface           Town Hall Meetings          Press Releases 
  Protection Toll –                                    to advise local              (multiple 
  Free Call Center            Print and                 community                  languages)
                           Broadcast Media                members
                              Coverage
    Training and                                                                  Web site for 
                              Consumer                  Branch – level 
   education for                                                                  closed banks
                                News                    FDIC support
  bank employees
                              Magazine
                                                          Regional             Deposit Insurance 
   FDIC Signage at          Web and Video                Educational              Awareness 
    teller stations          Educational                   Events                 Campaigns
                              Resources


                       Collaboration with other financial safety net players
                                  Internal FDIC communication
                                                                                                    Slide 13
 Enhancing Public Awareness of Deposit Insurance
 Overview: FDIC Public Awareness Programs

Household Survey on Deposit Insurance Awareness, 2001




                                                Slide 14
Enhancing Public Awareness of Deposit Insurance
FDIC Deposit Insurance Awareness Campaigns: Before and During the Financial Crisis



          Pre - Crisis Deposit Insurance Outreach

                                           - Update/re-design of the Electronic
    - Conducting deposit
                                             Deposit Insurance Estimator (EDIE)
      insurance seminars for
                                             in 2005
      bankers on the deposit
      insurance rules                      - Nationwide seminars to increase
                                             awareness about FDIC deposit
    - Collaboration with the Office
                                             insurance resources for consumers
      of Public Affairs and others
      to identify opportunities to         - Marketing the FDIC’s deposit
      publicize FDIC deposit                 insurance seminars to bank trade
      insurance coverage                     organizations
    - New FDIC Sign and                    - Release of new videos and
      Changes to the Advertising             publications on the FDIC’s rules for
      Rules for teller signage               deposit insurance coverage


                                                                                Slide 15
Enhancing Public Awareness of Deposit Insurance
FDIC Deposit Insurance Awareness Campaigns: Before and During the Financial Crisis



                            Money Smart
  - A comprehensive best-practice
    financial education curriculum


  - Launched in 2001, the FDIC has
    exceeded its original commitment to
    reach one million consumers


  - Free and available in four primary
    formats, including an instructor-led
    curriculum for adults in seven
    languages and an edition of Money
    Smart for Young Adults



                                                                           Slide 16
Enhancing Public Awareness of Deposit Insurance
FDIC Deposit Insurance Awareness Campaigns: Before and During the Financial Crisis



          During the Crisis: Deposit Insurance Campaigns


- Since 2008 the FDIC has carried out an
  extensive, multi-year public education
  campaign aimed at raising awareness of
  how FDIC deposit insurance works


      - The effort was initiated after receiving thousands
        of inquiries from depositors and bank employees
        about deposit insurance information and
        guidance in the wake of bank failures




                                                                           Slide 17
Enhancing Public Awareness of Deposit Insurance
FDIC Deposit Insurance Awareness Campaigns: Before and During the Financial Crisis


         During the Crisis: Deposit Insurance Campaigns
                     The FDIC Teams up with '60 Minutes'

       A Confidence-Building Story

 - Televised on March 8, 2009, the segment
   featured an FDIC closing team executing
   a resolution plan and enabling a failed
   bank to reopen

 - The segment demonstrated the FDIC
   alleviating the concerns of bank
   employees and customers

 - The FDIC’s duty to protect insured
   deposits and build public awareness was
   highlighted throughout the program

                                                                           Slide 18
Enhancing Public Awareness of Deposit Insurance
FDIC Deposit Insurance Awareness Campaigns: Before and During the Financial Crisis


         During the Crisis: Deposit Insurance Campaigns

                                       2008 FDIC Campaign Promoting Deposit
                                                     Insurance


                                     - Series of public service announcements featuring
                                       personal finance expert Suze Orman and FDIC
                                       Chairman Sheila C. Bair

                                     - Ads feature information to help consumers learn
                                       about the benefits and limitations of deposit
                                       insurance

                                     - Topics include the importance of keeping funds in
                                       insured accounts and knowing how FDIC insurance
                                       works

                                     - The public is encouraged to visit
                                       myFDICinsurance.gov, a new FDIC Web site to
                                       watch the TV spots

                                                                                    Slide 19
Enhancing Public Awareness of Deposit Insurance
FDIC Deposit Insurance Awareness Campaigns: Before and During the Financial Crisis


                    Deposit Insurance Awareness Efforts:
                                FDIC Activities in 2011

       7 February 2011 Notice of                    3 March 2011 Financial
          Proposed Rulemaking                          Institution Letter


  - Board of Directors issued a Notice of       - The FDIC will conduct 10 telephone
    Proposed Rulemaking to improve                seminars on deposit insurance
    consumer awareness of deposit                 coverage rules
    insurance coverage. Proposed rules
                                                - Bank employees and officials may
    would require:
                                                  voluntarily participate
  - Annual training for bank staff
                                                - Each seminar will run 120 minutes and
  - Alerting new customers to whether             be followed with a question-and-
    their accounts might exceed the               answer session
    deposit insurance limit
  - Financial institutions to provide basic
    FDIC-published literature

                                                                                          Slide 20
Thank You




 30 - 31 March 2011

				
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