The 2nd Financial Education and Entrepreneurship Congress took place in Warsaw on March 15th. It was organized by four institutions collaborating with the financial sector: the Warsaw Institute of Banking Foundation, the WSE Foundation, the Think! Foundation, and the Lesław A. Paga Foundation. The congress is sponsored by, among others, the Polish Financial Supervision Authority and the Ministry of Entrepreneurship and Technology.
Krzysztof Pietraszkiewicz and Gertruda Uścińska
Opening the Congress, Krzysztof Pietraszkiewicz, President of the Polish Bank Association, thanked all the organizations that led to the creation of educational programs. He presented a diploma to Professor Gertruda Uścińska, President of the Social Insurance Institution (ZUS), for her personal and institutional commitment to educating various groups of society. In her gratitude for the distinction, Professor Gertruda Uścińska pointed to the lack of knowledge about social insurance. She mentioned that, for example, participants in the Social Insurance Knowledge Olympiad receive their student indexes from universities collaborating with ZUS.
Sławomir Sikora
Sławomir S. Sikora, CEO of Citi Handlowy Bank, pointed out in his introductory speech that we are living longer, and future guaranteed benefits will only amount to about one-third of the final salary. Therefore, maintaining the standard of living of our citizens in the future will be difficult. Therefore, everyone should be interested in financial education. Next year, the financial sector will "celebrate" the centenary of the creation of the first pyramid scheme. These schemes, in fact, are still in operation today. This is further evidence of the lack of basic economic knowledge. Sławomir S. Sikora also mentioned the dangers associated with opening access to bank accounts under PSD2.
Education is the basis
The next item on the agenda was the debate: "Digitalization of the Economy and Financial Education in Poland – Challenges." It was moderated by Bartek Godusławski, a journalist from "Dziennik Gazeta Prawna," and attended by: Jacek Fotek, Vice President of the Management Board of the Warsaw Stock Exchange; Paweł Jaroszek, Member of the Management Board of the Social Insurance Institution; Krzysztof Pietraszkiewicz, President of the Polish Bank Association; Łukasz Świerżewski, Director of the Communication and Promotion Office of the Ministry of Finance; and Paweł Zegarłowicz, Vice Chairman of the Kronenberg Foundation at Citi Handlowy Bank.
KEFiP Main Panel
Łukasz Świerżewski cited the introduction of the mandatory use of the JPK VAT file by businesses when dealing with tax offices as an example of an educational initiative. This applied even to the smallest sole proprietorships. The Ministry of Finance conducted numerous educational activities, also in collaboration with partners and companies operating in the market.
Krzysztof Pietraszkiewicz spoke about the new technologies banks are using today. That's why educating the public on how to use them effectively is so important. He also mentioned bank initiatives such as the establishment of the Bank Cybersecurity Center. He pointed out that it's impossible to talk about the pension system without educating the public about it. Paweł Zegarłowicz, meanwhile, argued that an educated consumer is also a better customer for banks, as they make fewer mistakes, which in turn improves their relationship with the bank. For companies, bank customers, it's crucial whether they educate their employees, as this makes the company more secure. Łukasz Świerżewski stated that it's important to inform the public and explain what public finances are and why it's so important for citizens to fulfill their tax obligations.
Paweł Jaroszek reminded the public that the insurance system is not just about pensions, as citizens begin to benefit from benefits even before they are born; after all, expectant mothers benefit from sick leave and sick pay during pregnancy, he emphasized. He also spoke about the future size of pensions and the need for economic education for younger generations and encouraging them to save long-term. Jacek Fotek, in turn, pointed out that the stock market is not a casino. While education levels are rising, this doesn't fully translate into practical decisions, he emphasized. Even the most educated investor sometimes makes decisions based on emotions. That's why we need to educate wisely. He also mentioned initiatives by the Warsaw Stock Exchange (GPW) such as the Summer Stock Exchange School and the GPW Foundation. Krzysztof Pietraszkiewicz appealed for all institutions offering services related to new technologies to educate about them. He also called for such educational activities to be exempt from taxation.
Skillful investing
Witold Siekierzyński from SWPS University and e-Service spoke about where economics meets psychology and how attitudes toward money impact the use of financial services and entrepreneurship. He stated that we need to teach about the psychological mechanisms that influence society. Educating the financial sector and public officials is also crucial, because if we don't, our educational efforts will be ineffective. He also mentioned the hierarchical model of attitudes toward money.
Michał Żugajewicz, President of the StudyInn Foundation, presented the importance of supporting entrepreneurship development. His presentation was also attended by mentors from the Entrepreneurship Development Program. One of them stated that a young entrepreneur can be helped by opening doors to further development. For those from large companies, being a mentor is an opportunity for self-fulfillment in solving real-world problems for startups on the market. The winner of the program (prize: PLN 6,000) was the "Citi Guide Tour" team.
Michał Masłowski, Vice President of the Association of Individual Investors, presented a profile of the stock market investor based on the National Investor Survey (OBI 2017). The survey involved 4,711 participants. The average Polish investor is a male, approximately 42 years old, who has been investing in the stock market for eight years and has seven companies in his portfolio. The average German investor, on average, is 56 years old, has been investing for 22 years, and holds shares in 19 companies. He also invests long-term and participates in company general meetings.
Finance in practice
Waldemar Zbytek, Vice President of the Warsaw Institute of Banking Foundation, presented finance in practice, i.e., cooperation in financial education. He emphasized that 62 banks have already joined the program. However, there is still a noticeable lack of basic economic knowledge. He announced an agreement regarding a cybersecurity education project. He mentioned difficulties in implementing cashless payments in smaller towns. Why is this happening – is it due to a lack of knowledge? He asked.
Diploma Ceremony
Awards for the most active banks and volunteers in the "Bankers for Children and Youth Education BAKCYL" project were presented by Krzysztof Kokot, President of the Management Board, and Urszula Szulc, Director at the Warsaw Institute of Banking Foundation. Last year, 47 banks joined the project. As of December 2017, 722 volunteers participated in the program. Awards were presented in several categories to: Plus Bank, Kaszubski Bank Spółdzielczy, BZ WBK (for the highest number of volunteers), District Cooperative Bank in Lututów, ING Bank Śląski, Cooperative Bank in Zator, Cooperative Bank in Lipno, and Deutsche Bank. Karol Nowakowski from BGK proved to be the most active volunteer.
Awards were also presented to participants of the Modern Business Management project. They were presented by Waldemar Zbytek, Vice President of the Management Board, and Krzysztof Ostafiński, Director of the Modern Business Management Program at the Center for Banking Law and Information. The awards were received by Dr. Marek Szewczyk, Dr. Anna Korzeniowska, Dr. Agnieszka Huwerska, Dr. Katarzyna Kochaniak, and Dr. Agnieszka Parkitna. Last year, 120 universities participated in the program.
Cooperation in financial education and entrepreneurship – this first session was coordinated by the Warsaw Institute of Banking Foundation and moderated by Maciej Małek, editor-in-chief of the monthly "Nowoczesny Bank Spółdzielczy".
What does cooperation give us?
This was the title of the opening address by Włodzimierz Kiciński, Vice President of the Polish Bank Association. He noted that only 42% Poles understand basic financial concepts, such as inflation or compound interest. Scandinavian countries fare best in this regard. Global financial literacy research conducted by Standard & Poor's shows that only 33% adults worldwide have the knowledge to make informed financial decisions. According to Poles, a 2015 NBP study suggests that the primary educators should be schools and teachers (56% responses) and the media (46%). According to the IBRIS study, conducted for the Warsaw Institute of Banking, 38% rural residents claim to have a good understanding of finances, and this is confirmed. At the same time, and this may be concerning, only 9% believe their financial knowledge is limited.
Economic education is truly worth investing in. The "Bankers for Education" program brings together 140,000 students for 1,200 lectures at 120 universities. There are also projects educating seniors and children.
Paweł Jaroszek, member of the management board of the Social Insurance Institution; Krzysztof Pietraszkiewicz, president of the Polish Bank Association; Łukasz Świerżewski, director of the Communication and Promotion Office of the Ministry of Finance and Paweł Zegarłowicz, vice-chairman of the Kronenberg Foundation at Citi Handlowy Bank.
The debate, "How to Effectively Conduct Financial Education?" was moderated by Witold Siekierzyński from SWPS University and e-Service Sp. z o.o. Participants included: Włodzimierz Kiciński, Vice President of the Polish Bank Association, Krzysztof Kokot, President of the Management Board of the Warsaw Institute of Banking Foundation, Rudolf Borusiewicz, Director of the Office of the Association of Polish Counties, and Małgorzata Nadziejko from Cogito Publishing House.
Krzysztof Kokot called for financial education, understood as a way to teach prudence. Such education should be effective, influencing behavior in situations where financial knowledge is useful. Małgorzata Nadziejko expressed her belief that parents should provide financial education and should be prepared to do so. Rudolf Borusiewicz stated that it's better to learn from others' mistakes. He also emphasized the importance of universities of the third age. Gaining practical knowledge is crucial. Local government can be a partner in this. Krzysztof Kokot pointed out, among other things, that seniors are particularly vulnerable to financial fraud. Therefore, educational efforts should be targeted at them. While volunteers do a great deal, funding is needed to conduct specific educational activities. The discussion touched on the value of financial education for society, emphasizing the need to avoid false starts in educational programs. When the BAKCYL program launched, there was a problem with practical outreach to schools, but fortunately, its creators utilized local governments as intermediaries.
Examples of good practices
Magdalena Swoboda-Młynarczyk from the Ministry of Finance spoke about educational projects for children and young people. She presented the TAX EDU program of the European Parliament and the European Commission. Although it's difficult to educate about taxes in an engaging way, learning is meant to be fun and engaging. The educational format is eLearnings – primarily short video formats. The Ministry of Finance representative presented, among other things, the educational game Taxlandia. She also spoke about the "Mission Budget" program.
Marzena Atkielska from the BZ WBK Foundation spoke about financial education at Bank Zachodni WBK SA. Interactive games were replaced by board games. Children are divided into teams, with leaders selected. Małgorzata Gromiec, a member of the SRK SF Steering Committee, presented the Sectoral Council for Financial Sector Competences. It currently comprises 33 entities and has been operating for a year.
Congress participants
At the end of the session, the results of the "Million to Bank" competition, run in high schools, were announced. The presentation was led by Marcin Polak from the THINK! Foundation and Waldemar Zbytek, Vice President of the Management Board of the Warsaw Institute of Banking Foundation. New scenarios for the game have already been created.
Two other panel sessions were held simultaneously. The first, titled "Investing – Myths and Reality: What You Need to Know to Increase Your Chances on the Stock Exchange?", was coordinated by the WSE Foundation and the Lesław A. Paga Foundation and moderated by Tomasz Prusek, President of the Przyjazny Kraj Foundation. The session focused on investing and related myths, among other topics. The dilemmas of the beginning investor were also discussed. The second session was devoted to volunteering in economic education. This part was coordinated by the Warsaw Institute of Banking Foundation and moderated by Urszula Szulc, Director of the BAKCYL Project.
Bohdan Szafrański
