Improve financial literacy for depositors


Deposit insurance policy plays an important role in enhancing public confidence in the banking and financial system. Raising public awareness of deposit insurance policy contributes to promoting the process of national financial information dissemination.

Dissemination of financial knowledge and the role of deposit insurance

Financial education is considered an effective consumer protection method, an effective supporting tool for operating policies, and indirectly supports the realization of national goals such as economic growth. In Vietnam, depositors are the core of the financial system and also the users of financial services. Therefore, financial education for depositors is considered one of the top priorities, so that individuals realize the role of financial literacy for themselves and the economy. At the same time, it contributes to limiting participation in informal banking services (such as black credit); gaining confidence in transactions as well as tracking their accumulated funds at depository institutions.

According to data announced by the Vietnam National Credit Information Center (CIC) at the Conference to implement the CIC Development Scheme to 2025, with a vision to 2030, the coverage of national credit information has reached over 48,6 million information subjects (both legal entities and persons), more than 60% of adults in Vietnam. The depth of credit information has reached a maximum score of 8/8 according to the evaluation criteria of the World Bank Group since 2020. To achieve the above success, in recent years, the State Bank of Vietnam (SBV) and related agencies, including Deposit Insurance of Vietnam (DIV) have closely coordinated, step by step asserting their role in implementing knowledge dissemination and awareness raising activities in the field of finance - banking in general, and deposit insurance policy in particular.

As an important component in the system of national financial safety agencies, over the past time, DIV has always actively disseminated deposit insurance policy to help improve public confidence in the credit institution system, stabilize political security and social life. DIV regularly communicates widely on basic issues related to depositors' interests such as coverage limit, deposit insurance fund, payment processes, etc.; Along with that, DIV disseminates new regulations on monetary policy, banking operations to advise depositors. Through such activities, people are not misled by negative and intransparent news, avoiding bank runs and market disturbances.

Actively disseminate deposit insurance policy - strengthen depositors' confidence

Over the years, the DIV has actively diversified its public communication activities, choosing the means suitable for each target audience. Information on deposit insurance policy and news on the financial-banking market would be brought to the public in a clear and timely manner so that they have the right understanding, consistency, and confidence in the Government's policy and get assured to deposit money at credit institutions.

For example, promoting communication on mass media with high spread such as newspapers/magazines with large readership; central and local radio and television channels; policy discussions, reports and skits... to disseminate the deposit insurance policy to the public.

DIV also uses its official communication channels to contribute to the transmission of information to depositors, typically the website of the DIV with more than 1 million visits per year, the "what depositors should know" section is designed specifically for depositors with many valuable news, articles with practical information. The quarterly deposit insurance newsletter is sent to all deposit insurance participating institutions, namely 1283 institutions, thereby providing information to leaders and transaction officers at these units, ensuring that they have knowledge and understanding of deposit insurance policy to explain to depositors at the most basic level when necessary.

DIV regularly organizes the dissemination of deposit insurance policy as well as basic financial knowledge to people in all provinces and cities, especially depositors in rural and mountainous areas who have little access to banking services as well as information about this type of service. Specifically, the DIV has integrated communication in the events of the People's Credit Fund meetings; in regular activities of local socio-political organizations such as Farmers' Union, Women's Union, Fatherland Front...; or combined in intensive examination of People's Credit Funds under the direction of the Governor of the SBV.

At the same time, coordinate with Vietnam postal system (VNPOST) to print information about deposit insurance policy on pension payment envelopes; place standees, posters at transaction points, commune cultural post offices, district post offices. On average, each district post office receives about 300-400 turns of people to do transactions every month. With the wide coverage and reach of the postal system, the deposit insurance policy has been transmitted to remote areas, mountainous and border communes.

To assess the awareness level of depositors, DIV conducted an online survey of depositors at deposit insurance participating institutions nationwide. Accordingly, the demographic characteristics of the group of depositors with basic understanding of deposit insurance policy showed that there was no clear difference between depositors in rural and urban areas (with 43% and 55.9% respectively). It can be seen that this even distribution is the result of the DIV's communication activities in rural and mountainous areas, narrowing the awareness gap between people in urban and rural areas.

It can be seen that the efforts in policy dissemination of the DIV are increasingly strengthening the confidence of depositors. They already have certain knowledge to understand and prevent black credit; instead they tend to use financial products and services from reputable credit institutions that are guaranteed by the State. This great step is the result of the efforts to reform administrative procedures, increase utilities, create favorable conditions and improve people's understanding in accessing and using financial services of the State and the banking sector. DIV also actively contributed to this process and actively increase depositors' confidence in the deposit insurance policy of the Government and the SBV through the deposit insurance tool.

In order to continually promote the improvement of financial literacy for depositors, in the coming time, the DIV needs to improve policy communication on all aspects: the scale, the depth of information, network expansion to the public. In particular, it is necessary to have a smooth connection with relevant parties to create understanding, agreement and support in communication activities. To achieve the above goal, it is vital to amend the Law on Deposit Insurance as soon as possible, which supplements the responsibility and obligation to participate in communication of credit institutions, because they are the beneficiaries of the policy and are also the direct focal point that complete the transactions and have contact with depositors, with certain advantages in disseminating deposit insurance policy as well as financial knowledge to depositors.

Communication Department