The World Bank Implementation Status & Results Report Financial Education and Financial Literacy (P120338) Financial Education and Financial Literacy (P120338) EUROPE AND CENTRAL ASIA | Russian Federation | Finance, Competitiveness and Innovation Global Practice | IBRD/IDA | Investment Project Financing | FY 2011 | Seq No: 17 | ARCHIVED on 24-Jun-2019 | ISR37088 | Implementing Agencies: Ministry of Finance, Noncommercial Foundation for Enterprise Restructuring and Financial Institutions Development (FER), Russian Federation Key Dates Key Project Dates Bank Approval Date: 07-Dec-2010 Effectiveness Date: 29-Jul-2011 Planned Mid Term Review Date: 23-Nov-2014 Actual Mid-Term Review Date: 23-Nov-2014 Original Closing Date: 30-Jun-2016 Revised Closing Date: 31-Dec-2020 pdoTable Project Development Objectives Project Development Objective (from Project Appraisal Document) Project development objectives are to: (i) improve the financial literacy of Russian citizens (especially, among the school-age and college students, and active and potential low- and middle-income users of financial services); and (ii) strengthen the foundations for improving consumer protection in financial services. Has the Project Development Objective been changed since Board Approval of the Project Objective? No Components Table Name Development of financial literacy strategy and financial literacy and consumer protection monitoring and evaluation:(Cost $22.26 M) Financial Literacy Capacity Building:(Cost $66.10 M) Development and implementation of education programs and information campaign for improving financial literacy, incl $14 million in sub-projects:(Cost $53.65 M) Strengthening of consumer protection in financial services:(Cost $59.70 M) Project Management:(Cost $6.94 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Satisfactory Satisfactory Overall Implementation Progress (IP) Satisfactory Satisfactory Overall Risk Rating Moderate Moderate Implementation Status and Key Decisions «Implementation Status and Key Decisions (Public Disclosure)» On March 13, 2018 the Project was restructured to extend the closing date by 18 months to December 31, 2020 and add additional co-financing from the Borrower to increase project scale, increasing significantly the number of beneficiaries. The project now covers almost all Russian regions. 6/24/2019 Page 1 of 10 The World Bank Implementation Status & Results Report Financial Education and Financial Literacy (P120338) The implementation progress is satisfactory as evidenced by fulfillment of all PDO-level and Intermediate Results Indicators for 2018. Recent progress includes: The Road Map for three years for the implementation of the National Strategy for Financial Literacy for the Russian Federation (2017-23) was signed in December 2018. The third round of a survey on financial literacy was completed in December 2018, and for the first time covered all regions. Findings indicate that digital literacy and financial literacy are highly correlated. People who actively use Internet, electric banking and electronic financial transactions have the highest level of financial literacy. The survey accessed the effectiveness of the project in two pilot regions (Kaliningrad and Volgograd regions) which were included in all three rounds of the survey. The survey confirmed that the pilot regions, which joined the project earlier, had better result than other regions who were included at a later time. For example, since 2015 the share of Russian citizens (low- and middle-income) who understand risk to reward ratio in choosing financial products increased by 5.1% (from 66,7% to 71.8%) in the first two pilot regions and by 2,4% (from 66.3% to 68.7%) in other participating regions that were included in the project in 2014 (Altai krai, Arkhangelsk region, Krasnodar krai, The Republic of Tatarstan, Saratov region, Stavropol krai, Tomsk region). An interactive map to visualize financial literacy indicators was launched in February 2019 on the website https://karta.vashifinancy.ru. Third round of Consumer Finance survey related to the population’s financial and savings behavior were also conducted under the Project in December 2018. The survey shows that the number of households in Russia using bank accounts increased from 58% in 2013 to 71% in 2018, although compared with developed countries it remains low (in the USA 93% (2013), in the EU countries - 97% (2010)). The share of savings (deposits, securities, cash) decreased in the lowest-income group, but increased in the high-income group. The growth of coverage of financial assets is observed in all income groups (mainly due to using bank accounts). The survey found the level of credit coverage in Russia relatively low compared to the global indicators. It is 3 times lower than in the United States and 2.5 times lower than the average for OECD countries. Although the survey of financial behavior demonstrated some positive results, it also confirmed that it easier to build awareness around issues, but much more difficult to affect behavior change. It is also important to consider externalities such as economic situation and other social factors that can very much influence financial behavior. Second round of the analysis of effectiveness of educational programs implemented under the Project has been completed to evaluate the effectiveness of educational programs through analysis of the short-and medium-term impact produced on students. The assessment showed that despite the stable level of financial literacy among people who went through education programs, financial behavior can be further improved especially in such areas as management of personal finances, expressing complaints against financial institutions. As in medium-term perspective (12 months after completion) people who received and who did not receive the educational programs demonstrated almost the same financial behavior. Mobile applications Finsovet (informational and educational in financial literacy for different age groups) and Finznayka (social online game on financial literacy for secondary school students) was developed and now available at the App Store, Google Play for general access. Also, the website Monetkiny (https://монеткины.рф) online personal finance management service for children and teenagers was developed and is now fully operational. Currently, financial literacy packages (FLP) developed and tested under the Project are being finalized and used as basis for creating electronic versions of the instructional materials. 8 financial literacy packages out of 17 have been selected to be widely disseminated across Russian regions free of charge, the rest will be placed in the Internet. In 2018, the second All-Russian online financial literacy contest was held for schoolchildren involving more than 26,000 users from 80 + regions of the Russian Federation. The project implemented a massive information campaign. The Fifth National Savings Week was held between October 29 and November 12, 2018 covering more than 2 350 000 participants from nearly all regions of the country, over 13 000 activities were delivered. Four National Financial Literacy Weeks for Children and Youth were delivered covering over 4 700 000 participants. The activities delivered under the Fourth National Financial Literacy Weeks for Children and Youth that took place between April 09 and 22, 2018, covered more than 2 598 000 participants from all over the country (27 100 activities). A sixth round of Fund for Good Ideas (FGI) five rounds of competitive selection were held in financial literacy, financial consumer protection, and in the field of the awareness raising campaign. The sixth round will be conducted in 2019. A fully functioning 24-hour free hotline for financial services consumers was launched by Rospotrebnadzor. The hotline has been functioning for more than a year; the average monthly number of calls is about 3.5-4 thousand. An online reception desk of Rospotrebnadzor became operational in autumn 2018, where financial services consumers can file their application/complaint or get machine-aided clarifications remotely. One of the major milestones for the project was the appointment of the first financial ombudsman for pre-trial settlement of financial disputes in Russia. The position of financial ombudsman was established in Russia based on a new law, which came into force on September 3, 2018. Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating 6/24/2019 Page 2 of 10 The World Bank Implementation Status & Results Report Financial Education and Financial Literacy (P120338) Political and Governance -- Substantial Substantial Macroeconomic -- Substantial Substantial Sector Strategies and Policies -- Low Low Technical Design of Project or Program -- Low Low Institutional Capacity for Implementation and Sustainability -- Low Low Fiduciary -- Low Low Environment and Social -- Low Low Stakeholders -- Low Low Other -- Low Low Overall -- Moderate Moderate Results PDO Indicators by Objectives / Outcomes PDO Indicators on Financial Education and Literacy IN00703056 ►1.1 (1.1.1) % of active and potential low- and middle-income users of financial services understanding the trade-off between risk and rewards in choosing financial products in Kaliningrad & Volgograd (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 63.90 66.70 71.80 68.00 Date 31-May-2013 22-Oct-2018 04-Feb-2019 31-Dec-2020 IN00703057 1.1 (1.1.2) % of active and potential low- and middle-income users of financial services understanding the trade-off between risk and rewards in choosing financial products in 7 other regions (Percentage, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 66.30 66.30 68.70 68.00 IN00703058 ►1.2 (1.2.1) % of school-aged and college students understanding risk-reward trade-off and rewards in choosing financial products in Kaliningrad and Volgograd pilot regions (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 53.00 53.00 73.40 55.00 Date 31-May-2013 22-Oct-2018 04-Feb-2019 31-Dec-2020 IN00703059 1.2 (1.2.2) % of school-aged and college students understanding risk-reward trade-off and rewards in choosing financial products in 7 other regions (Percentage, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 51.90 51.90 64.50 54.00 IN00703060 ►2.1 (2.1.1) % of active and potential low- and middle-income users of financial services understanding the importance of financial cushion in Kaliningrad and Volgograd pilot regions (Percentage, Custom) 6/24/2019 Page 3 of 10 The World Bank Implementation Status & Results Report Financial Education and Financial Literacy (P120338) Baseline Actual (Previous) Actual (Current) End Target Value 30.50 35.70 37.90 37.00 Date 31-May-2013 22-Oct-2018 04-Feb-2019 31-Dec-2020 IN00703061 2.1 (2.1.2) % of active and potential low- and middle-income users of financial services understanding the importance of financial cushion in 7 other regions (Percentage, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 31.70 31.70 33.10 33.00 IN00703062 ►2.2 (2.2.1) % of school-aged and college students understanding importance of financial cushion in Kaliningrad and Volgograd pilot regions (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 75.50 75.50 77.60 77.00 Date 29-May-2015 22-Oct-2018 04-Feb-2019 31-Dec-2020 IN00703063 2.2 (2.2.2) % of school-aged and college students understanding importance of financial cushion in 7 other regions (Percentage, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 74.50 74.50 76.80 76.00 IN00703064 ►3. (3.1) % of active and potential low- and middle-income users of financial services who compare alternatives before obtaining a credit in Kaliningrad and Volgograd pilot regions (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 69.20 70.30 74.10 72.00 Date 31-May-2013 22-Oct-2018 04-Feb-2019 31-Dec-2020 IN00703065 3. (3.2) % of active and potential low- and middle-income users of financial services who compare alternatives before obtaining a credit in 7 other regions (Percentage, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 60.20 60.20 63.30 63.00 IN00703066 ►4. (4.1) % of active and potential low- and middle-income users of financial services who know what aministrative/legal action to be taken having discovered a deceit by provider of a financial service (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 32.20 39.80 47.20 42.00 Date 31-May-2013 22-Oct-2018 04-Feb-2019 31-Dec-2020 IN00703067 4. (4.2) % of active and potential low- and middle-income users of financial services who know what aministrative/legal action to be taken having discovered a deceit by provider of a financial service (Percentage, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 39.60 39.60 43.90 42.00 6/24/2019 Page 4 of 10 The World Bank Implementation Status & Results Report Financial Education and Financial Literacy (P120338) Overall Comments PDO The implementation progress evidenced by fulfillment of all PDO-level and Implementation Progress indicators for 2018. All PDO-level indicators show a positive trend and already exceeded the target values. Intermediate Results Indicators by Components Development of financial literacy strategy and financial literacy and consumer protection monitoring and evaluation IN00703068 ►1.1 Financial literacy strategy is developed and agreed between key stakeholders (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Yes. After extensive internal and external consultations the National Strategy has now been approved by the Central Bank and Value No Yes. Yes Ministry of Finance. On September 29, 2017, the strategy was approved by government - a key achievement and milestone. Date 28-Dec-2010 22-Oct-2018 04-Feb-2019 31-Dec-2020 IN00703072 ►1.2 Requirements to education programs are approved by the Expert Board (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No Yes Yes Yes Date 28-Dec-2010 08-Jun-2015 04-Feb-2019 31-Dec-2020 IN00703076 ►1.3 Four rounds of the FL assessment are conducted in YR 2,5,8,10 (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Yes. Third round of FL Yes, with extension No, survey to be survey done in 2018 survey shifted from Y7 Value No conducted in year 8 (Contract to Y8 and now also (2018) and 2020 FEFLP/QCBS-1.5) year 10 Date 28-Dec-2010 22-Oct-2018 04-Feb-2019 31-Dec-2020 IN00703080 ►1.4 Four rounds of the Consumer Finance Survey are conducted in YR 2,5,8, 10 (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Yes. Third round of the Yes, with extension No, survey to be Consumer Finance survey moved from Y7 Value No conducted in year 8 Survey are conducted to Y8 and now also (2018) and 2020 in 2018 year 10 6/24/2019 Page 5 of 10 The World Bank Implementation Status & Results Report Financial Education and Financial Literacy (P120338) Date 28-Dec-2010 22-Oct-2018 04-Feb-2019 31-Dec-2020 IN00703087 ►1.5 Ministry of Finance establishes dedicated working group on financial literacy and consumer protection (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No Yes Yes Yes Date 01-Sep-2010 30-Nov-2015 04-Feb-2019 31-Dec-2020 IN00703090 ►1.6 Amendments to the federal legislation to provide for effective consumer protection in financial markets and financial literacy are prepared (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No Yes Yes Yes Date 28-Dec-2010 22-Oct-2018 04-Feb-2019 30-Apr-2019 Financial Literacy Capacity Building IN00703069 ►2.1 # of regional FL development programs being implemented with the Project support (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 9.00 9.00 9.00 Date 28-Dec-2010 22-Oct-2018 04-Feb-2019 31-Dec-2020 IN00703074 ►2.2 (2.2.1) # of teachers of the relevant subjects trained by the Project in regions (two pilot and new participating regions) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 7,500.00 29,000.00 38,000.00 Date 28-Dec-2010 22-Oct-2018 04-Feb-2019 31-Dec-2020 IN00703078 ►2.3 (2.2.2 (methodists) and 2.4 (consultants) # of financial literacy specialists (consultants) and methodists trained for general education and vocational schools by the Project regions (two pilot an (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 2,500.00 7,100.00 6,800.00 Date 28-Dec-2010 22-Oct-2018 04-Feb-2019 30-Apr-2019 IN00703082 (2.7) Number of financial literacy textbooks published and distributed in regions (up to < 6,000,000) (Number, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 8,000,000.00 8,000,000.00 IN00703084 # methodists for general education and vocational schools, prepared by the Project (Number, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target 6/24/2019 Page 6 of 10 The World Bank Implementation Status & Results Report Financial Education and Financial Literacy (P120338) Value 0.00 0.00 1,500.00 1,500.00 IN00703089 2.3 (2.3: # students - future teachers trained under the Project in financial literacy) (Number, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 4,200.00 12,000.00 IN00703092 ►2.6 FL information and educational portal established and fully operational (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Yes, and about 75000 Value No Yes Yes visitors to site Date 28-Dec-2010 22-Oct-2018 04-Feb-2019 31-Dec-2020 IN00703093 2.5. #education events carried out by financial consultants (Number, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 4,050.00 16,800.00 15,000.00 Development and implementation of education programs and information campaign for improving financial literacy, incl $14 million in sub-projects IN00703070 ►3.1 (3.1.2) # of educational modules and learning materials developed nationally at federal level (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 107.00 130.00 120.00 Date 28-Dec-2010 22-Oct-2018 04-Feb-2019 31-Dec-2020 IN00703073 3.1 (3.1.1) # educational programs created at Federal level (Number, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 27.00 36.00 30.00 IN00703077 (3.9) Number of digital products (information, edutainment and social ad videos, games, webpages) created under Funds of Good Ideas (Number, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 109.00 118.00 140.00 IN00703081 ►3.2 National information campaign designed and launched (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No Yes Yes Yes Date 28-Dec-2010 22-Oct-2018 04-Feb-2019 31-Dec-2020 IN00703086 ►3.3 (3.6) # of financial literacy and consumer protection improvement initiatives supported through the Fund of Good Ideas (Number, Custom) 6/24/2019 Page 7 of 10 The World Bank Implementation Status & Results Report Financial Education and Financial Literacy (P120338) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 65.00 86.00 124.00 Date 28-Dec-2010 22-Oct-2018 04-Feb-2019 31-Dec-2020 Strengthening of consumer protection in financial services IN00703071 ►4.1 A system of hotline call centers to advise consumers on financial issues is established and operational (Yes or No) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 0.00 Date 28-Dec-2010 30-Jun-2016 30-Jun-2016 31-Dec-2020 IN00703075 4.1.1 Total number of complaints consultations on financial consumer rights issues provided by Rospotrebnadzor specialists (target value - 10 000 annualy) (Number, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 17,175.00 117,547.00 165,544.00 150,000.00 Date 31-May-2013 22-Oct-2018 04-Feb-2019 31-Dec-2020 IN00703079 4.1.2 Number of financial consumer complaints examined through Rospotrebnadzor "hotlines" and public officers (target value - 5000 complaints annualy) (Number, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 7,801.00 68,377.00 112,803.00 80,000.00 Date 31-May-2013 22-Oct-2018 04-Feb-2019 31-Dec-2020 IN00703083 ►4.2 Special system for submitting and handling financial consumer complaints in e-format is developed (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Yes, the system is now Value No Yes Yes established. Date 28-Dec-2010 22-Oct-2018 04-Feb-2019 31-Dec-2020 IN00703085 ►4.3 An e-library (infotheque) on topical CP issues is established and operational (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Yes, it is now Yes, it is now established Value No established and Yes and functioning. functioning. Date 28-Dec-2010 22-Oct-2018 22-Oct-2018 30-Apr-2018 IN00703088 ►4.4 Number of Rospotrebnadzor consulting centres for consumers in Russian Federation (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target 6/24/2019 Page 8 of 10 The World Bank Implementation Status & Results Report Financial Education and Financial Literacy (P120338) Value 0.00 580.00 580.00 500.00 Date 28-Dec-2010 22-Oct-2018 04-Feb-2019 31-Dec-2015 IN00703091 ►4.5 # of Rospotrebnadzor specialists trained during the Project on financial consumer protection and financial literacy (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 608.00 1,509.00 1,000.00 Date 28-Dec-2010 22-Oct-2018 04-Feb-2019 31-Dec-2020 IN00703094 ►4.6 # of the reports dedicated to the financial consumer protection, containing independent monitoring results and recommndations (Amount(USD), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 5.00 9.00 9.00 Date 28-Dec-2010 22-Oct-2018 04-Feb-2019 31-Dec-2020 IN00703095 (4.8) # of information materials (booklets/leaflets) on financial consumer protection distributed to consumers by Rospotrebnadzor staff (Amount(USD), Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 7,650,000.00 9,150,000.00 9,100,000.00 Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P120338 IBRD-79830 Effective USD 25.00 25.00 0.00 20.27 4.72 81% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P120338 IBRD-79830 Effective 07-Dec-2010 14-Mar-2011 29-Jul-2011 30-Jun-2016 31-Dec-2020 Cumulative Disbursements 6/24/2019 Page 9 of 10 The World Bank Implementation Status & Results Report Financial Education and Financial Literacy (P120338) Restructuring History Level 2 Approved on 11-Jun-2015 ,Level 2 Approved on 06-Jan-2017 ,Level 2 Approved on 12-May-2017 ,Level 2 Approved on 09-Mar-2018 Related Project(s) There are no related projects. 6/24/2019 Page 10 of 10