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Communicating deposit insurance policies - a tool to maintain depositor confidence
Depositors are an essential force contributing to the development of the banking system, but are also easily affected by conflicting information flows. Therefore, by being fully and promptly provided with knowledge about finance - banking - deposit insurance, their understanding will be improved, thereby taking appropriate action against false rumors that threaten the entire banking system.
The Core Principles for Effective Deposit Insurance Systems of the International Association of Deposit Insurers (IADI, 2014) recommends that: “To protect depositors and contribute to financial stability, it is necessary to ensure that the public be fully informed about the deposit insurance system. At the same time, the deposit insurance participates in the process of developing communication plans involving all members of the financial safety net, to ensure that the public awareness program and communication are comprehensive and consistent.
According to experience from a number of international deposit insurance organizations, communication to raise depositor awareness needs to be associated with the specific activities and development strategies of the; have a specific roadmap and high professionalism, contributing to the successful implementation of the organization's long-term goals. Deposit insurance is a form of public policy, so communication should be considered one of the important operations along with other operations such as supervision, examination, reimbursement...; is an important bridge to convey the core message of the deposit insurance organization - which is to protect the interests of depositors, contributing to ensure the safe and healthy development of the financial and banking system.
During the stable period, it is necessary to promote communication through many channels suitable for each target audience. Along with this process is the organization of training to raise public awareness about finance - banking - deposit insurance. When false rumors cause depositors to be panic and disrupt the market, communication tools help the deposit insurance organization handle the crisis at many different levels. Classifying the crisis and finding the cause is an important factor in building an appropriate handling scenario. It is necessary to proactively and actively coordinate with the central bank and relevant agencies to focus on handling the crisis, avoiding the risk of contagion that threatens the safety of the banking system and erodes depositors' confidence.
In addition, the deposit insurance organization needs to conduct independent and regular assessments of the level of depositors' awareness through surveys of public groups. In addition to helping receive information from the target public, this is also the basis for the deposit insurance organization to plan a communication strategy suitable for each public audience in each stage of development. Along with that, diversifying communication products to ensure suitability for each audience such as depositors, organizations participating in deposit insurance and management agencies.
Ensure communication is correct, easy to remember, and easy to access
In Vietnam, according to the provisions of the Law on Deposit Insurance, DIV is responsible for organizing communication of policies and laws on deposit insurance. This is an important operation to provide complete and accurate information to depositors, ensuring the legitimate rights and interests of depositors, thereby contributing to realizing public policy goals.
Determining the role of the media in raising public awareness in general and depositors in particular, DIV in recent years has actively implemented communication of deposit insurance policies to strengthen depositors' trust, through that contributing to maintain the safety and health of the banking system.
In particular, in the context of the Deposit Insurance Development Strategy to 2025, with orientation to 2030 approved by the Prime Minister, raising depositors' awareness is an important task of DIV in the coming time. time. specific, DIV aims to have 45% and 55% of depositors grasp the core contents of the deposit insurance policy by 2025 and by 2030, including: Deposit insurance coverage limit; claiming individuals; announcing deposits; payment period; operations of the deposit insurance organization and information on related banking activities. The target audience is depositors, especially depositors in rural and mountainous areas - where there is little access to information about banking activities and deposit insurance.
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To achieve the above goal, it is necessary to improve the legal basis for communication activities, specifically clarifying the functions and tasks of DIV in deposit insurance policy communication. At the same time, due to research and propose amendments and supplements to the Law on Deposit Insurance, including contents that stipulate that organizations participating in deposit insurance are responsible for coordinating with deposit insurance to organizations propagate deposit insurance policies. DIV is currently conducting research and developing a communication project, ensuring adherence to the Deposit Insurance Development Strategy, as well as compatibility with major policies of the Government and the banking industry. When issued, the Communication Project will be the basis and orientation for the macro-level communication activities of the deposit insurance in the coming time.
To improve communication efficiency and help information about deposit insurance policies reach the public according to the criteria of "easy to understand, easy to remember, easy to access", DIV said they will continue to innovate forms and tools. Propagate policies along with official communication channels of DIV such as website and DIV Bulletin. Along with that, press resources such as newspapers, online newspapers, radio, television - official, reputable media channels with pervasive power and great influence on the target public will be increased by DIV. In addition, develop and apply new communication tools to ensure timely and meet the information exploitation needs of readers in the digital environment, in addition to the goal of helping to convey information visually and vividly. It also helps DIV effectively listen to information from public opinion, thereby providing direction and communication messages to ensure "hit and right" criteria to the public, helping to increase public awareness of DI policy.
At the same time, through local socio-political organizations such as the Farmers' Union, Women's Union, Fatherland Front..., DIV will actively integrate information and knowledge about deposit insurance in a simple way, easy to understand so that deposit insurance policy can "go to every alley, knock on every house". Actively coordinate with State Bank branches, Banking Association, and People's Credit Fund Association to incorporate knowledge about deposit insurance into banking staff training programs. These can be considered practical, effective communication channels and ensure the fastest spread to the target public group.
In general, with efforts to continuously innovate methods, actively change communication channels and choose simple and accessible messages, deposit insurance policies have become closer and closer to the public; thereby contributing to strengthening the trust of depositors, helping them gradually change their behavior and behavioral habits when encountering conflicting information or false rumors about banking activities, especially in the context of restructuring the system of credit institutions with the increasingly active participation of DIV in recent times .
Assess public perception for appropriate communication
According to the International Association of Deposit Insurance (IADI), assessing the level of public awareness is a necessary requirement, thereby determining the annual awareness increase target and building appropriate communication strategies for each period . This needs to be done periodically, alternating between large-scale, wide-ranging independent assessments and narrow-scale self-assessments. Also according to IADI, most deposit insurance organizations deploy public awareness assessment.
Regarding this content, DIV said they have initially conducted an assessment of public awareness to recognize remaining problems, and at the same time propose solutions to improve communication effectiveness for the next stage. specifically, according to the results of a narrow-scale national survey conducted by DIV, out of 1,069 survey participants, 34.6% simultaneously grasped all core information about deposit insurance policy. The majority of depositors were partially aware (at least 1 core policy element), but did not fully understand all the core contents of the deposit insurance policy, accounting for 61.6%. Notably, 3.8% of depositors participating in the survey were completely unaware of any of the above policy elements. Currently, DIV is organizing an independent survey on a national scale with a larger sample to assess the level of depositors' awareness of deposit insurance policies, then conduct a survey on the level of depositors' awareness every three years to provide directions and solutions in communication activities to raise public awareness about deposit insurance.
For the goal of striving to have 45% and 55% of depositors grasp the core contents of the deposit insurance policy by 2025 and by 2030, according to information from the DIV, this target is determined on the basis of experience of some international deposit insurance organizations. Canadian Deposit Insurance Corporation determined that public awareness needs to reach 60-65% and set the target awareness level at 65% in the next 5 years (compared to the current level of 50%); Taiwan Central Deposit Insurance Corporation has a public awareness level of over 60% and plans to increase this index to over 70%; Malaysian Deposit Insurance Corporation targets the awareness rate of deposit insurance to be 57-60%. To carry out the task of protecting the legal rights of depositors, contributing to ensuring the safety of the system of credit institutions, and maintaining public trust in the banking system, DIV announced the level of awareness of the above target. This is a premise for DIV to continuously improve and renew its communication activities on deposit insurance policies.
Communication Department
