Communication is the key to raise public awareness of deposit insurance
Principle 10 of the Core Principles for effective deposit insurance systems states that the deposit insurer sets out a long-term strategy to achieve the goal of raising public awareness and allocates funds to build and maintain the target levels of public awareness of deposit insurance. Determining the role of media in raising awareness of the public in general and depositors in particular, deposit insurers around the world have developed and effectively applied many strategic communication plans.
In Malaysia, the deposit insurance corporation of malaysia (PIDM) always aims to build a solid foundation, responding to changes in the operating environment as well as the organization's focus. PIDM focuses on the pillar "Increasing the trust of stakeholders" - implementing many communication projects and initiatives such as Financial recovery 2.0, community financial education forum, thereby achieving the the target level of public awareness at about 75%, the level of community support reaches 50%.
In Korea, the financial education program of Korea deposit insurance corporation (KDIC) since 2010 has been implemented both in person and online and has brought many remarkable results. KDIC has trained a number of students as media collaborators on social networks to increase interaction with young people; organize seminars and exhibitions on financial investment techniques with more than 70% of attendees being middle-aged people to disseminate knowledge about deposit insurance. KDIC has also built an integrated information technology system (IRIS) that plays the role of providing information to depositors, supporting the quick reimbursement process, and implementing compensation procedures for deposits are insuranced. The public awareness rate of people has changed significantly thanks to the communication on deposit insurance policies in Korea, from 2015 to 2017, the public awareness rate of KDIC increased from 88% to 90.7%, The public awareness rate on the deposit insurance system increased from 91.2% to 93.2%, the public awareness rate about coverage limits increased from 93.9% to 96.7%.
In the Philippines, the Philippine Deposit Insurance Corporation (PDIC) is currently applying a digital communications project, collaborating with banks and local government. PDIC's digital communication services include internet, social networks and automatic switchboard message services through 78 centers in provinces and cities. PDIC also implemented many new communication activities such as launching the e-Calculator tool on deposit insurance to help depositors calculate insured deposit balances; Facebook and Twitter social media accounts were launched on the occasion of the organization's 53rd anniversary in 2016. PDIC launched the pioneering program to raise public awareness based on nationwide multi-platform media to promote the banking savings habit of Filipinos. The campaign includes 2 television commercials, 3 radio commercials and various social media content to educate the public on the benefits of banking services, encouraging them to continue or start saving money at the bank.
In Taiwan, especially during the 2007-2008 global financial crisis, along with the use of full insurance, the Central Deposit Insurance Corporation (CDIC) quickly organized communication activities to strengthen public awareness and maintain order and stability in the financial market, including 4 outstanding solutions: (a) Invite the former Prime Minister to participate in a short 30-second film to announce the application of blanket guarantee. The video was broadcast on 11 television channels and attracted public attention during the period from late 2008 to early 2009. Insured institutions coordinated to download the above video to show at business locations and the internet; (b) Use public posters about blanket guarantee, requiring insured institutions to display at business locations and notify depositors; (c) Advertise in major financial and economic magazines, public transportation, major shopping centers and (d) Authorize a professional organization to conduct public awareness surveys information on deposit insurance and information channels on deposit insurance and financial safety to serve as reference documents to handle the next crisis. Within 10 years from 2006-2015, the public awareness rate of deposit insurance in Taipei increased from 51% to 64% and CIDC has set a long-term target of 70% in the future.
Strive to have 45% and 55% of depositors grasp the core contents of deposit insurance policy by 2025 and 2030
Depositors are the key target audience in DIV's communication activities in recent years, especially small depositors in rural and remote areas. This is a public group that has limited access to information about banking activities and deposit insurance, who are very vulnerable to conflicting information.
According to survey results conducted by DIV among 1,880 depositors in 2023, 37.4% of depositors have general awareness about deposit insurance. The general awareness of depositors about the objectives of deposit insurance, the rights and obligations of depositors and some concepts related to deposit insurance is relatively good. However, depositors' awareness of specific information about deposit insurance policy still has many limitations that need to be supplemented. The number of people have knowledge about DIV is still quite modest (less than half of the survey participants).
Less than 50% of people with deposits at credit institutions actively seek information related to deposit insurance at these credit institutions. The channels to learn about deposit insurance are mainly through credit institutions officers. People who have heard/known about deposit insurance have higher trust in deposit insurance than people who have never heard of deposit insurance. People who have confidence in the deposit insurance and credit institutions are those who calmly follow official information from credit institutions and authorities. At the same time, they are not too worried about the money they are depositing in these institutions. There is a simultaneous relationship between trust in the credit institution system in general, trust in the financial institution where people have deposits, and trust in the deposit insurance policy.
According to statistics on the demand for information channels used when learning about deposit insurance policies of depositors, the information channels chosen by depositors the most belong to television, credit institution officers, friends/acquaintances; social network, electronic newspaper and the website of DIV.
The level of interest in deposit insurance policy of depositors is in average level. This is a point that needs attention for communication projects in the future. The goal of deposit insurance policy is to protect the right of depositors, but their need to learn about the policy is still modest.
General awareness differs according to education level, income, and residency. Specific awareness has some differences according to gender, age, education, income, residency. Therefore, information and propaganda work needs to take into account these factors.
Develop a comprehensive and long-term policy communication on deposit insurance project is one of the important tasks which set out in the Deposit insurance development strategy to 2025, with orientation to 2030. This is also a one of the recommendations of the IADI, according to which the deposit insurer should set a long-term strategy to achieve the goal of raising public awareness and allocate funds to build and maintain awareness levels.
Based on the Deposit insurance development strategy and the current level of depositors’ awareness, the project on communication of deposit insurance policies to 2025 and orientation to 2030 of DIV has set a general goal, which is: raising public awareness of deposit insurance policy to protect depositors and contribute to the stability of the financial and banking system. At the same time, the project also sets specific goals for the communication policy of deposit insurance, including the goal of awareness level (41% in 2024, 45% in 2025, 55% of depositors in 2030), developing the Law amend and supplement the Law on deposit insurance, implementing the Deposit insurance development strategy until 2025, with orientation to 2030 and communication goals associated with the operations of DIV.
Solutions
A communication project is a document that presents viewpoints, strategic orientations, goals and actionable solutions in developing and organizing communication work; Focused communication content, focusing on target audiences in each given period in accordance with the actual situation; How to resolve communication crisis risks and roadmap for implementing communication projects.
The project on communication of deposit insurance policy to 2025, with orientation to 2030 sets out solutions to raise depositors' awareness of deposit insurance policy, in accordance with the deposit insurance development strategy, meeting the functions, tasks and balance with the resources of DIV. The communication project is determined to be an effective tool, supporting the synchronous and consistent implementation of deposit insurance policy communication throughout the DIV system, ensuring the realization of goals according to the roadmap.
The core contents of the deposit insurance policy will be focused on: scope of insured deposits, insured institution, deposit insurance premiums, deposit insurance coverage limit, reimbursement to depositors and deposit insurers. In addition to the above contents, general issues of deposit insurance policy will also be disseminated to the public at a reasonable level depending on the time and the level of awareness of each public audience.
The communication project sets out specific solutions, suitable for each stage and in accordance with the Deposit insurance development strategy, including solutions on the legal basis, solutions according to the target audience, solutions according to communication tools, etc.
Regarding the legal basis, the Law on deposit insurance needs to stipulate specific responsibilities of insured institutions which are obliged to coordinate communication on deposit insurance policy, allowing DIV to spread out the image and activities of the deposit insurer.
Regarding communication tools, during the period of stability, communication and dissemination of deposit insurance policy need to be deployed regularly and periodically through many mass media channels suitable to target audience. In addition, attention should be paid to financial education for depositors to raise awareness about deposit insurance. During the period of fluctuations, it is necessary to restructure, focusing on transparent and widespread disclosure of information - especially information about prioritizing the protection of the legal rights of depositors. At the same time, it is necessary to periodically evaluate the effectiveness of communication and dissemination of deposit insurance policies through surveying the awareness level of depositors in order to update and supplement specific solutions for each period.
To achieve the goals of the communication project, it is necessary to deploy a number of groups of solutions and strategic actions, focus on applying modern solutions and applying digital tools to communicate in accordance with the needs of customers. the public's information needs, with new forms: deploy communication on social networks (Facebook, Zalo, Youtube) in a reasonable way, promptly capture negative information for correction; communicate and explain so that the deposit insurer is officially present on social networks, giving an official voice to preserve the trust of depositors; communicate through local loudspeaker systems (in remote areas); coordinate with the Vietnam Farmers' Union and the Vietnam Women's Union; strengthen communication to officials of insured institutions, etc.
In addition, to promote depositors' awareness of deposit insurance, a strong and comprehensive effort is needed not only from DIV but also from the relevant agencies. Therefore, it is necessary to build an effective coordination mechanism between DIV and competent agencies such as the State Bank of Vietnam, National Financial Supervisory Commission, Ministry of Finance, etc. and insured institutions such as commercial banks and people credit funds to create trust for depositors in the entire financial and banking system.
Every 3 years, the deposit insurer need to deploy an overall assessment of depositors' awareness nationwide with a large sample size, conducted by an independent market research and survey unit. From there, draw corresponding communication solutions, striving to achieve the goal that by 2025, 45% and by 2030, 55% of depositors will grasp the core contents of deposit insurance policy.
Communication Department