The SAIA Consumer Education Fund Initiative has focused on improving financial literacy and risk management capabilities of consumers in various life stages since its inception in 1994. It continues to implement projects that are aligned with the Financial Sector Code (FSC) Consumer Education Guidelines published by the Financial Sector Transformation Council (FSTC).
Up until December when the amended FSC was gazetted, consumer education projects only focused on individual consumers and not business. The amendment is set to bring in Small to Medium and Micro Enterprises (SMMEs) in FSC Consumer Education Guidelines. SAIA has responded by introducing a project that addresses the needs of SMMEs as an additional offering from the SAIA Consumer Education Fund. This project offering will include the development of relevant consumer education content to be approved by SAIA and the rollout of the approved content through various implementation platforms. To kick start the project, two services providers have been contracted to provide content and implement the rollout respectively, as was recommended by the SAIA Financial Inclusion Committee and; approved by the SAIA Board Committee: Transformation and SAIA Board.
The objective of the SMME project is to provide business owners with the basic information on accessing the products and service of the financial sector to support their business growth and sustainability. SMME Consumer Education interventions will focus on financial risk management principles, thereby incorporating topics such as access to market, “access to finance” and “risk management and mitigation” aspects of running an SMME. The first instalment of the project launched at the Business Show SA 2019 that was held in Midrand on the 20th and 21st of February and the use of an Expo as a platform for content dissemination proved to be a success in reaching the appropriate target market. The Consumer Education stall received significant traffic from the Expo patriots and therefore a suitable platform the SMME project rollout.
Members with SMME insurance products are encouraged to avail themselves in assisting SAIA with the content approval process and also participation in the SAIA Financial Inclusion Committee in order to influence the output of the Financial Sector Code which is currently under review and as it relates to the development of appropriate insurance products, particularly for the consumption by SMMEs.
As an industry, it is essential that we should link our product development strategies with the promotion of financial literacy and risk management principle that will be responsive to the needs of the identified access to products target market. SAIA’s objectives, is to indirectly influence user penetration in accessing the financial sector’s products and services; specifically, non-life insurance products, as a result of enhanced understanding of the sector and its products and service, delivered through consumer education interventions.
For more information contact:
Zanele Gigaba, Transformation Manager