The efforts made in recent years by all entities participating in the financial markets to increase the level of financial education are starting to show, albeit timidly for now, stated Marian Siminică, Director of the Institute of Financial Studies (ISF), at an international conference organized by the University of Alba Iulia with ISF as a partner. In turn, Gabriel Avrămescu, First Vice-President of the Financial Supervisory Authority (ASF), conveyed to the academic community that the institution he leads greatly needs young specialists connected to the current realities of the market and that ASF will have an unprecedented openness in this regard.
The ISF Director presented a comprehensive study conducted by the OECD on 39 countries worldwide, which shows that, despite being positioned toward the bottom of the ranking, Romania has recorded an increase in the level of financial education between 2020-2024. This progress is all the more significant given that the average score across countries declined during the period analyzed by the OECD, while in Romania, major projects in this area only began in the last 4-5 years.
You can consult the full OECD study, including details about the state of financial education in Romania, by segments and categories, HERE.
“In the last 4-5 years, our strategic objective at ISF has been to contribute to increasing the level of financial education among the general population, and particularly among young people. This is an ambitious goal to which all entities in the financial markets contribute, and actions in this regard have been intensified. Important steps have been taken. I would like to highlight 2020, the year in which, based on a partnership between the Ministry of Finance, Ministry of Education, Financial Supervisory Authority, and National Bank of Romania, financial education was introduced as a mandatory subject for 8th-grade students. The effects will, of course, be seen over time, but the first signs of improvement are already appearing. Then, in 2022, through a parliamentary initiative, April 11 was declared the Day of Financial Education. This is a symbolic event, but it demonstrates the cohesion of entities in the financial markets toward a common goal: to increase the level of financial education, as this contributes to enhancing resilience and well-being and generates economic growth. Last but not least, a major event that has not been widely discussed is the approval of the Financial Education Strategy 2024-2030, a document that outlines clear objectives, by category, of what we need to do by 2030,” stated Marian Siminică at the International Conference on Management, Economics, and Accounting, organized by the “1 Decembrie 1918” University in Alba Iulia with ISF among the main partners.
According to the cited source, the increase in the level of financial education is also evident from indirect indicators, not just dedicated studies, with the growth in the consumption of financial products and services being relevant in this regard. “The level of financial education is often measured indirectly through the number of newly opened bank accounts, the number of insurance policies purchased, and the number of investors on the stock exchange. These are indicators that show we are making progress. Mr. Ciuncan (note: Alexandru Ciuncan, President and General Director of UNSAR, the association of insurance companies) mentions a 14% growth in the insurance sector. The number of investors on the stock exchange has also increased. In 2020, there were between 55,000 and 60,000 active investor accounts; now there are nearly 180,000 accounts,” detailed Siminică.
Regarding the OECD report, as mentioned earlier, the bad news is that we are at the bottom of the ranking, but the good news is that we have improved from one evaluation to the next, and we are among the few countries that have achieved this.
Romania ranks 35th out of 39 countries, with a score of 54 on a scale from 1 to 100. This is quite low, considering that most European countries are in the upper part of the ranking. Among the top 17 countries, 14 are European. Among European countries, Italy has a lower score than us, and Hungary is slightly higher. Albania is also at the bottom, while all other European countries are in the upper part. The good news, however, is that compared to the 2020 evaluation, Romania has recorded a slight increase. It is not a significant increase, but I believe this progress is also a result of the financial education projects carried out by all entities in the financial markets. It is noteworthy that Romania has improved while the average score has declined. We have thus somewhat closed the gap, reaching about 89% of the average score. Hungary, for example, declined during this period, while Romania improved.
Marian Siminică, Director of ISF
ASF is seeking well-prepared specialists and announces unprecedented openness: It’s very hard to find them!
Romania still has a gap not only in terms of low and medium levels but also regarding specialists in the financial sector. In this regard, the academic environment plays an essential role, especially in a world where technology and innovations in general are advancing rapidly. Gabriel Avrămescu, First Vice-President of ASF, extends a direct invitation to the academic community, emphasizing that the Authority greatly needs specialists.
“I would like to make a request, as I see there are many participants from the academic environment. ASF aims to open up. We want to make all processes and mechanisms specific to the markets we regulate transparent. That is why we aim, through the Institute of Financial Studies (ISF), to develop partnerships with specialized universities. Why is this partnership necessary? Because there is a need for well-prepared people in the market. At this moment, there is a need for people connected to the market’s realities because, while things are well-established in the insurance sector, the capital markets have a constant dynamic, and we need to transpose many European mechanisms, which requires continuous adaptation to what is happening in the market,” stated Avrămescu.
The First Vice-President of the Authority, responsible, among other things, for financial education, says it is increasingly difficult to find specialists and provides a concrete example of a situation ASF is currently facing, namely the obligation to build a dedicated area for the supervision and regulation of crypto markets.
“It is very difficult for us to find, for example, specialists in the cryptocurrency area, and we all know that several directives will be transposed regarding the regulation and supervision of cryptocurrencies. There is a need to develop the stock exchanges. The Bucharest Stock Exchange is shaping up as a stock exchange with regional potential, but we need specialists there. The specialists provided by the academic environment must be adapted and connected to what is happening in Europe. We have very good connections with EIOPA and ESMA, European authorities that support us with specialists when needed. That is why I ask you to stay in constant contact. You have full openness from the ASF Council and each vice-president,” declared Avrămescu.
11 years of the International Conference for Management, Economics, and Accounting (ICMEA), four years of partnership with ISF
As mentioned, the statements were made on the occasion of ICMEA 2024, an event organized by the “1 Decembrie 1918” University in Alba Iulia, with ISF as a partner. Here is what some of the most important participants said on this occasion:
“We have managed to create an event of high standing. Our university is entering a period when we will have more international conferences. The fact that there are so many of you here only makes me happy because we are returning to a state of normality. I hope these things will continue,” said Daniel Breazu, Rector of the “1 Decembrie 1918” University in Alba Iulia.
“We all know there has been a partnership between ASF and the University of Alba Iulia for many years. Together with our partners and colleagues from the Institute of Financial Studies, we want this partnership to last and strengthen,” said Gabriel Avrămescu, First Vice-President of ASF.
“History is always on the side of educated nations. I confirm this year as well the openness of our industry to the academic environment. We are interested in strengthening this connection. It depends on you to build the future generations. Just as an idea, compensations of 5.2 million euros are paid every calendar day, money that goes to people and companies. I don’t know of a developed economy that does not have a strong insurance industry behind it. I don’t think we can do our job without the help of the academic environment,” said Alexandru Ciuncan, President of the National Union of Insurance and Reinsurance Companies (UNSAR).
“We are partners for the fourth edition. Each time, our partnership has grown. We have other projects as well. In April, we had a team of specialists from ISF in Alba Iulia, who joined those from ASF and the academic environment in a SmartFIN event dedicated to students. Next week, we will be here again with another event dedicated to students, with representatives of the financial markets regulated by ASF. Then there is the student competition, in which ISF is a partner and will even award prizes for the best papers. These are just a few examples of collaborations, and I feel that this partnership will grow,” said Marian Siminică, Director of ISF.
