Money Advice ServiceThe way forward

Allison Barnes & Colin Kinloch

Thursday 28 JuneMoney Advice Scotland Conference

Ready for JulyAll current tools, calculators and planners plus:

• C. 650 action-orientated articles

•More comparison tables

•C. 30 template letters/documents

•New tools including ‘Summer 2012 budget planner’ (May), savvy mover (June) and Auto-enrolment

•Revised ‘Health check’

•Action plans

•Personalisation

•Commenting

•Web chat

•Email alerts

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In plan for 2012/13

• Offline versions of all tools

• More on Auto-enrolment

• Pilots of Universal credit

• Isa (and other) alert tool

• Extension of comparison tables

• Other tools

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Medium term plans

• Impact UK financial capability

• Drive awareness of benefit of managing your money

• Build customer engagement - 11 million users each year

• Drive action, getting (closer) to the point of purchase

• Play major part in the government change initiatives e.g. Auto Enrolment, Universal Credit, Simple Products

• Align Money Advice, Debt Advice and Financial Education

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Online research community

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• New online RESEARCH community being established.

• Cross-section of customers:

different life-stages

attitudinal segments,

range of financial experiences

across 4 countries

• Enable quick and cost-effective feedback on our service and key money issues through surveys, discussions, and co-invention.

• Currently testing the new website with customers.

Financial education of young people

Review of financial education of young people funded by industry:

• Map the landscape

• Identify evidence of impact, UK and worldwide

• Identify learning's from other areas that can be applied, e.g. health/sex

Emerging insights

• Lack of robust evidence - urgent need for Key Performance Indicators

• Attitudes are formed early (5-12) – need to engage this age group

• Interventions within a broader family framework have the potential for long-term behaviour change – align financial education of young people with adult money advice

Source: Mapping: Primary research by Money Advice Service, Dec 11 / Mar 12

Literature review: Ci research on behalf of Money Advice Service, Conducted Dec 11 / Mar 12.

Financial capability

• Desire to build on the skills/knowledge-based FSA Baseline survey, also exploring attitudes, emotions, motivations and behaviour in real lives.

• Commissioned a significant ethnographic research program with Ipsos-MORI.

• Following 72 families and how money fits into their lives over a year. Boosted by interviews with individuals experiencing life trigger events (e.g. redundancy, new baby).

• Quantifying in March 2013 to provide a new baseline of financial capability.

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Financial capability

• Outputs will include:

• refined definition of financial capability

• better understanding of the determining factors

• interventions affecting capability.

• Deliverables will include searchable film database, as well as the usual reports.

• Want to engage stakeholders now to help guide the research.

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UK Financial Capability Strategy

• Asked by Westminster HMT to develop new UK financial Capability Strategy

• Currently reviewing the ‘rest of the worlds’

• Will engage with policy units of each government and regulator to prepare first draft for discussion

• Will then seek inputs through consultation process (to be defined)

UK Financial Capability Strategy

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Financial Education of Young People

Specific Debt Advice

Generic Money Advice

Navigable landscape

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The Debt Advice Coordination

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Overarching principles

We will develop a new model from the point of view of people in need, not the process of delivery; one which

• has Reach and Accessibility

• is Simple to understand• encourages Self-help whenever practical and

• Addresses gaps in delivery (without displacing or substituting for existing funding arrangements)

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Funding in Scotland

We are providing funding to increase advice and support advice

infrastructure in Scotland

Scottish Legal Aid Board grant funding being put in place (£2.2m)

and open for applications

Agreements being put in place (£500k) with Money Advice

Scotland, Accountant in Bankruptcy & Improvement Service

Reducing Demand

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Financial Education of Young People

Specific Debt Advice

Generic Money Advice

Navigable landscape

Allison.barnes@moneyadviceservice.org.ukColin.kinloch@moneyadviceservice.org.uk