Ushering in Financial Literacy Month in Canada, Bank of Nova Scotia Thursday announced the introduction of a global financial literacy strategy to support communities in Canada and across Scotiabank’s global network.
Under the new strategy, which is part of the bank’s Bright Future program, Scotiabank will implement a life stages approach to financial literacy to encourage lifelong financial learning and ensure that people’s varying needs, at different stages of life, are met.
“This strategy provides a financial literacy roadmap for Scotiabank, its products and services and its philanthropic efforts to ensure our customers and communities around the world are getting the financial information they need, in plain language and in a timely fashion,” said Kaz Flinn, vice president, corporate social responsibility for Scotiabank. “We encourage everyone to develop their own financial roadmap and seek continued expert guidance throughout their lives.”
Scotiabank’s global financial literacy strategy will be guided by a mission statement: “Scotiabank is committed to providing access to education, resources and advice that enable individuals to make knowledgeable and responsible financial decisions, while giving them the confidence they need to save and invest for a bright future.”
The strategy identifies four life stages pillars, stages in life when people have different financial needs and information requirements:
1. Starters: These people are at the beginning of their relationship with a financial institution, have little experience with financial products, and a need to understand basic banking concepts. Starters will experience a number of firsts during this life stage.
2. Builders: Builders are of varied backgrounds at this life stage and have a number of financial needs. Regardless of financial standing and career path, this life stage contains events that will shape their financial health.
3. Accumulators: These individuals are generally established in their line of work and may be married and/or have children. They have assets to protect and a number of life events related to their finances. As these individuals approach retirement they may need more education about their finances.
4. Preservers/De-accumulators: No longer working and living on fixed incomes, these people may not be technically savvy or familiar with current banking technologies. At this life stage the consumer is also more likely than at any other segment to be divorced, separated or widowed.
“Given the international nature of Scotiabank’s business, it was important for us to develop a strategy that would be applicable across many different cultures and priorities,” said Flinn. “Life stages are not based on age or assumed wealth, but on the financial events that shape your life, and so while starters in one country may be school age children, in another they may be 20 years old and opening their first bank account. Our aim is to look at the advice needed at a life stage, rather than have our financial literacy programs defined by demographics.”