Financial Capability Strategy Savings Steering Group - Amazon Web ...
Financial Capability Strategy Savings Steering Group Minutes Date: Time: Location: Chair:
Tue 18 July 2017 14.00-16.00 MAS office, 120 Holborn, London, EC1N 2TD Greg Davies, Centapse
Attendees Brian Morris, Building Societies Association | Carl Packman, Toynbee Hall | Charles McCready, TISA (by phone) | Greg Davies, Centapse | Peter Brooks, Barclays | Katherine Ryan, HSBC Money Advice Service Attendees Inigo Churchill (Secretariat) | Helen White (FinCap) | Sonia Fernandes (Policy) | Ben Crabb (Policy for Item 6) | Fiona Hague (FinCap for item 7) Apologies Mark Lyonette, ABCUL 1.
Welcome and minutes of previous meeting
1.1.
The Chair welcomed the group.
2.
Minutes of the meeting on Monday 24 April 2017
2.1
The minutes of the previous meeting were approved without amendment.
3.
Actions arising
Action
IC to pass GD Max Mawby, Behavioural Insights Team contact details
4.
Overview of Steering Group purpose
45
GD reminded the group that the Savings steering group action plan has been published on the www.fincap.org.uk website. This document is intended as a way of keeping track of progress against this theme of work. 5.
Action Plan work streams
5.1
Members identified the work stream that they feel will advance the action plan over the next quarter. Individual members then volunteered to lead on particular work streams
5.2
5.3
Taking forward the FAMR work on Rule of Thumb Sonia Fernandes outlined how the five broad principles that the FAMR report on rules of thumb identified in its ‘Financial Five’ map across to MAS work streams. Sonia then proposed that the Savings steering group concentrate of the ‘Planning for unexpected Life Events’ principle by forming a work stream
Minutes, SSG 20170718
1
to scope out and propose for testing rules of thumb on unexpected life events, including those relevant to fraud and protection 5.4
The suggested proposed outputs of the work stream: ▪ List of existing/new rules of thumb ▪ A bibliography of references on rules of thumb ▪ Scoring matrix to prioritise rules of thumb ▪ Proposals for MAS/partner organisations for testing
5.5
The work of this stream is intended to move forward the action plan activity: ‘Create a better understanding of savings behaviours and trade offs’
5.6
UPDATE: Peter Brooks volunteered to lead this work stream with the proposal of using the input from the MMU / Newcastle Uni paper to build out a set of potential rules of thumb under the 6 areas of financial behaviours they organize the study by. The plan would then be to break this down initially to a series of more general primary rules and a series of secondary rules which are more directly actionable but which may differ by life stage. The aim would be to feed some of these to the MAS testing so that at FinCap week we can present developments in the rules of thumb and results of testing.
Savings SG - Rules of Thumb Approach.pptx
Fintech and savings 5.7
The proposal is for an inquiry on potential of fintech for savings particularly around auto-saving and impulse saving.
5.8
The suggested proposed outputs of the work stream: ▪ Agree framework of discussions/scope of enquiry ▪ Identify providers to speak to (including partners) ▪ Undertake a programme of engagement to better understand provision and evaluation barriers ▪ Develop proposals for MAS/partner organisations next steps
5.9
Helen White identified Vaughan Jenkins as the FinCap Board expert on Fintech who has already indicated that he is keen to help in this area.
5.10
The work of this stream is intended to move forward the action plan activity: ‘Engagement programme with fintech savings providers to understand barriers (to provision and evaluation)’
5.11
UPDATE: Carl Packman volunteered to lead this work stream. The aim is to produce a briefing on:
Minutes, SSG 20170718
2
1) The Market: To describe the FinTech savings environment (Method: to repurpose data gathered by Toynbee Hall for its Savings for the Future report; a review of the Sergeant Review) 2) The Consumer: Insight on consumer characteristics using FinTech savings applications, looking at digital literacy/capability, savings levels, and habits (Method: to repurpose data gathered by Toynbee Hall for its Savings for the Future report; a new literature review compiling themes across demographic types from existing evidence) 3) The Product: To describe the savings FinTech app design principles in relation to a) behavioural insight (e.g. understanding how present bias can interfere with savings levels; using friction to spend down savings); b) the Sergeant Review; c) Financial capability more broadly, and d) consumer ‘wants’ and gaps in the market. Finally, arrange a two hour savings symposium with FinTech providers in this space (for 12-15 participants) in FinCap Week facilitated by Toynbee Hall held in London, with FinTech savings representatives, the insight of which to feature in the briefing. MAS will look to help with -
Identifying a venue for Symposium Liaising with guests Insight from internal experts on the FinTech / savings FinTech environment Navigating existing evidence on consumer characteristics, ‘wants’, and market need for FinTech savings applications.
What would a savings ecosystem focused on life-events look like? 5.12
To draft, refine and publish a short article that looks at the question of how to design an ecosystem of both savings and debt accounts / containers that is a) b) c)
d)
5.13
both behaviourally and financially sound, that encourages savings and good debt management, enables money to ‘flow’ into and out of the system in a way that balances short-term (buffer) needs, with medium term goals, and long-term retirement savings, and permits the automation of good savings behaviour across the whole ecosystem.
This will necessarily be conceptual, but should i)
ii)
Minutes, SSG 20170718
nonetheless relate to certain unavoidable realities of the current structure of the UK system (ISAs, LISAs, Pensions, etc.), and ii) should permit organisations to proceed practically with building such ecosystems using real accounts for their clients and customers.
3
5.14
The work of this stream is intended to move forward the action plan activity: ‘Evaluate effectiveness of life event based interventions that are (or could) be utilised to improve saving behaviours’
5.15
Greg Davies volunteered to lead this work stream and the goal would be to have something publishable in time for FinCap Week 2017. Other work streams
5.16
Charles McCready informed members of a working group that TISA is setting up that he will lead to respond to the reports published by the FAMR working groups. The aim of the group will be to: ▪ Identify areas for MAS and industry to work together ▪ Refining and developing policy recommendations on guidance ▪ Lobbying government
ACTION
Charles McCready feed back on the scope and terms of reference of his Industry Working Group.
5.17
All work streams will aim to produce a publishable output to be discussed at the next steering group meeting.
ACTION
IC / SF to meet with work stream leads to plan next steps
6.
Financial Guidance and Claims Bill
6.1
Ben Crabb from the MAS Policy team gave a presentation on the Financial Guidance and Claims Bill currently before the House of Lords. This is the piece of legislation that will bring the new Single Financial Guidance Body into being. The presentation (attached) covered areas of particular interest in the proposed legislation and laid out the current schedule for implementation. At this point the new SFGB is not expected to be in operation before Autumn 2018.
7.
FinCap Week 2017
7.1
Fiona Hague from the MAS Financial Capability team gave a presentation (attached) on the upcoming ‘FinCap Week 2017’. Members were encouraged to consider how they or their organisations might be involved.
7.2
Opportunities include: - Taking a stall or giving a presentation at the FinCap Conference - Publishing research relevant to fincap during the week or - Running your own event
7.3
If members or their organisations would like to find out more or commit to some form of involvement they can contact the FinCap Week team by email at ‘[email protected]’
Minutes, SSG 20170718
48
49
4
ACTION
Members to contact the FinCap Week 2017 team to discuss any planned or potential involvement in the event
8.
Strategy up-date
8.1
At the request of the Fincap Board MAS have been asked to look at refreshing the B2B logo for the financial capability strategy. A potential design has been identified and an application has been made to the Intellectual Property Office to register a Trade Mark.
8.2
MAS are reviewing the current design and content of the www.fincap.org.uk website. The process will be informed by both internal and external consultation and result in identifying options about how the website is developed in the future.
8.3
There were no other comments on the strategy update paper submitted.
9.
Any Other Business
9.1
Given that the group is moving towards more task and action focussed work streams there may be the opportunity for shorter or less regular meetings aimed at updating members as a whole on progress against the action plans. This will be kept under review.
ACTION
Members to proactively consider the timing, scheduling and agenda of future steering group meetings
Next Meeting
Minutes, SSG 20170718
50
51
Wednesday 11 October 2017, 10.30-12.30, MAS Offices To be reviewed
5
Savings Steering Group Action Log
Ref 38
44
45
46
48
49 50
51
Action As the work develops, MAS will share updates on Savings research it undertakes with the Savings SG to identify gaps the group and wider sector may wish to fill. MAS and CM to explore ways that TISA working group on can support test and learn activity GD to feed in thoughts on the challenges of trade offs/detriment to MAS for work on the future lab tests SG interested in a 1:1 discussion on to go through the detailed quantitative results of the BIT Savings Lab Tests to get in touch with MAS to arrange a meeting CM to come back on the scope and terms of reference of his Industry Working Group. MAS to meet with work stream leads to plan next steps Members to contact the FinCap Week 2017 team to discuss any planned or potential involvement in the event Members to proactively consider the timing, scheduling and agenda of future steering group meetings
Minutes, SSG 20170718
Owner MAS
Date due ongoing
MAS & CM
ongoing
GD
SG
Update
Introductory email sent 21/07/2017
ongoing
IC
Updated 4/8/2017
All
asap
All
ongoing
6
Tue 18 July 2017 14.00-16.00 MAS office, 120 Holborn, London, EC1N 2TD Greg Davies, Centapse
Attendees Brian Morris, Building Societies Association | Carl Packman, Toynbee Hall | Charles McCready, TISA (by phone) | Greg Davies, Centapse | Peter Brooks, Barclays | Katherine Ryan, HSBC Money Advice Service Attendees Inigo Churchill (Secretariat) | Helen White (FinCap) | Sonia Fernandes (Policy) | Ben Crabb (Policy for Item 6) | Fiona Hague (FinCap for item 7) Apologies Mark Lyonette, ABCUL 1.
Welcome and minutes of previous meeting
1.1.
The Chair welcomed the group.
2.
Minutes of the meeting on Monday 24 April 2017
2.1
The minutes of the previous meeting were approved without amendment.
3.
Actions arising
Action
IC to pass GD Max Mawby, Behavioural Insights Team contact details
4.
Overview of Steering Group purpose
45
GD reminded the group that the Savings steering group action plan has been published on the www.fincap.org.uk website. This document is intended as a way of keeping track of progress against this theme of work. 5.
Action Plan work streams
5.1
Members identified the work stream that they feel will advance the action plan over the next quarter. Individual members then volunteered to lead on particular work streams
5.2
5.3
Taking forward the FAMR work on Rule of Thumb Sonia Fernandes outlined how the five broad principles that the FAMR report on rules of thumb identified in its ‘Financial Five’ map across to MAS work streams. Sonia then proposed that the Savings steering group concentrate of the ‘Planning for unexpected Life Events’ principle by forming a work stream
Minutes, SSG 20170718
1
to scope out and propose for testing rules of thumb on unexpected life events, including those relevant to fraud and protection 5.4
The suggested proposed outputs of the work stream: ▪ List of existing/new rules of thumb ▪ A bibliography of references on rules of thumb ▪ Scoring matrix to prioritise rules of thumb ▪ Proposals for MAS/partner organisations for testing
5.5
The work of this stream is intended to move forward the action plan activity: ‘Create a better understanding of savings behaviours and trade offs’
5.6
UPDATE: Peter Brooks volunteered to lead this work stream with the proposal of using the input from the MMU / Newcastle Uni paper to build out a set of potential rules of thumb under the 6 areas of financial behaviours they organize the study by. The plan would then be to break this down initially to a series of more general primary rules and a series of secondary rules which are more directly actionable but which may differ by life stage. The aim would be to feed some of these to the MAS testing so that at FinCap week we can present developments in the rules of thumb and results of testing.
Savings SG - Rules of Thumb Approach.pptx
Fintech and savings 5.7
The proposal is for an inquiry on potential of fintech for savings particularly around auto-saving and impulse saving.
5.8
The suggested proposed outputs of the work stream: ▪ Agree framework of discussions/scope of enquiry ▪ Identify providers to speak to (including partners) ▪ Undertake a programme of engagement to better understand provision and evaluation barriers ▪ Develop proposals for MAS/partner organisations next steps
5.9
Helen White identified Vaughan Jenkins as the FinCap Board expert on Fintech who has already indicated that he is keen to help in this area.
5.10
The work of this stream is intended to move forward the action plan activity: ‘Engagement programme with fintech savings providers to understand barriers (to provision and evaluation)’
5.11
UPDATE: Carl Packman volunteered to lead this work stream. The aim is to produce a briefing on:
Minutes, SSG 20170718
2
1) The Market: To describe the FinTech savings environment (Method: to repurpose data gathered by Toynbee Hall for its Savings for the Future report; a review of the Sergeant Review) 2) The Consumer: Insight on consumer characteristics using FinTech savings applications, looking at digital literacy/capability, savings levels, and habits (Method: to repurpose data gathered by Toynbee Hall for its Savings for the Future report; a new literature review compiling themes across demographic types from existing evidence) 3) The Product: To describe the savings FinTech app design principles in relation to a) behavioural insight (e.g. understanding how present bias can interfere with savings levels; using friction to spend down savings); b) the Sergeant Review; c) Financial capability more broadly, and d) consumer ‘wants’ and gaps in the market. Finally, arrange a two hour savings symposium with FinTech providers in this space (for 12-15 participants) in FinCap Week facilitated by Toynbee Hall held in London, with FinTech savings representatives, the insight of which to feature in the briefing. MAS will look to help with -
Identifying a venue for Symposium Liaising with guests Insight from internal experts on the FinTech / savings FinTech environment Navigating existing evidence on consumer characteristics, ‘wants’, and market need for FinTech savings applications.
What would a savings ecosystem focused on life-events look like? 5.12
To draft, refine and publish a short article that looks at the question of how to design an ecosystem of both savings and debt accounts / containers that is a) b) c)
d)
5.13
both behaviourally and financially sound, that encourages savings and good debt management, enables money to ‘flow’ into and out of the system in a way that balances short-term (buffer) needs, with medium term goals, and long-term retirement savings, and permits the automation of good savings behaviour across the whole ecosystem.
This will necessarily be conceptual, but should i)
ii)
Minutes, SSG 20170718
nonetheless relate to certain unavoidable realities of the current structure of the UK system (ISAs, LISAs, Pensions, etc.), and ii) should permit organisations to proceed practically with building such ecosystems using real accounts for their clients and customers.
3
5.14
The work of this stream is intended to move forward the action plan activity: ‘Evaluate effectiveness of life event based interventions that are (or could) be utilised to improve saving behaviours’
5.15
Greg Davies volunteered to lead this work stream and the goal would be to have something publishable in time for FinCap Week 2017. Other work streams
5.16
Charles McCready informed members of a working group that TISA is setting up that he will lead to respond to the reports published by the FAMR working groups. The aim of the group will be to: ▪ Identify areas for MAS and industry to work together ▪ Refining and developing policy recommendations on guidance ▪ Lobbying government
ACTION
Charles McCready feed back on the scope and terms of reference of his Industry Working Group.
5.17
All work streams will aim to produce a publishable output to be discussed at the next steering group meeting.
ACTION
IC / SF to meet with work stream leads to plan next steps
6.
Financial Guidance and Claims Bill
6.1
Ben Crabb from the MAS Policy team gave a presentation on the Financial Guidance and Claims Bill currently before the House of Lords. This is the piece of legislation that will bring the new Single Financial Guidance Body into being. The presentation (attached) covered areas of particular interest in the proposed legislation and laid out the current schedule for implementation. At this point the new SFGB is not expected to be in operation before Autumn 2018.
7.
FinCap Week 2017
7.1
Fiona Hague from the MAS Financial Capability team gave a presentation (attached) on the upcoming ‘FinCap Week 2017’. Members were encouraged to consider how they or their organisations might be involved.
7.2
Opportunities include: - Taking a stall or giving a presentation at the FinCap Conference - Publishing research relevant to fincap during the week or - Running your own event
7.3
If members or their organisations would like to find out more or commit to some form of involvement they can contact the FinCap Week team by email at ‘[email protected]’
Minutes, SSG 20170718
48
49
4
ACTION
Members to contact the FinCap Week 2017 team to discuss any planned or potential involvement in the event
8.
Strategy up-date
8.1
At the request of the Fincap Board MAS have been asked to look at refreshing the B2B logo for the financial capability strategy. A potential design has been identified and an application has been made to the Intellectual Property Office to register a Trade Mark.
8.2
MAS are reviewing the current design and content of the www.fincap.org.uk website. The process will be informed by both internal and external consultation and result in identifying options about how the website is developed in the future.
8.3
There were no other comments on the strategy update paper submitted.
9.
Any Other Business
9.1
Given that the group is moving towards more task and action focussed work streams there may be the opportunity for shorter or less regular meetings aimed at updating members as a whole on progress against the action plans. This will be kept under review.
ACTION
Members to proactively consider the timing, scheduling and agenda of future steering group meetings
Next Meeting
Minutes, SSG 20170718
50
51
Wednesday 11 October 2017, 10.30-12.30, MAS Offices To be reviewed
5
Savings Steering Group Action Log
Ref 38
44
45
46
48
49 50
51
Action As the work develops, MAS will share updates on Savings research it undertakes with the Savings SG to identify gaps the group and wider sector may wish to fill. MAS and CM to explore ways that TISA working group on can support test and learn activity GD to feed in thoughts on the challenges of trade offs/detriment to MAS for work on the future lab tests SG interested in a 1:1 discussion on to go through the detailed quantitative results of the BIT Savings Lab Tests to get in touch with MAS to arrange a meeting CM to come back on the scope and terms of reference of his Industry Working Group. MAS to meet with work stream leads to plan next steps Members to contact the FinCap Week 2017 team to discuss any planned or potential involvement in the event Members to proactively consider the timing, scheduling and agenda of future steering group meetings
Minutes, SSG 20170718
Owner MAS
Date due ongoing
MAS & CM
ongoing
GD
SG
Update
Introductory email sent 21/07/2017
ongoing
IC
Updated 4/8/2017
All
asap
All
ongoing
6
