Learning Aim B Explore the personal finance sector

Learning Aim B

Explore the personal finance sector

Poll

How are you doing and how was your weekend?

• What weekend

• Dry

• Okish

• Fantastic

Open Ended

Which learning assessments have we covered so far?

A: Understand the importance of managing personal finance

• A1 Functions and role of money

• A2 Different ways to pay

• A3 Current accounts

• A4 Managing personal finance

Open Ended

Identify two disadvantages of using a credit card (2 marks)

Open Ended

Describe two examples of a type of borrowing (4 marks)

Open Ended

Give four types of insurance products provided by banks.

B Explore the personal finance sector 

• B1 Features of financial institutions

• B2 Communicating with customers

• B3 Consumer protection in relation to personal finance

• B4 Information guidance and advice

Open Ended

What are financial institutions and can you name any with examples?

B1: Features of Financial Institutions

These are organisations that offer financial services to individuals and/or businesses. These services include the ability to deposit or withdraw money, obtain credit and make investments.  

Open Ended

How many building societies and banks are there in the UK?

B1: Features of Financial Institutions

There are more than 45 building societies and 300 banks in the UK, making it the biggest banking system in Europe and the fourth largest in the world.

Open Ended

What is the difference between a bank and a building society?

B1: Features of Financial Institutions

http://news.bbc.co.uk/1/hi/business/2965412.stm

https://www.youtube.com/watch?v=eg8AMWT2u6k

Open Ended

Who are the biggest bank in the uk?

B1: Features of Financial Institutions

Types of organisations

Research their objectives and their advantages and disadvantages:

​●Bank of England

●Banks

●Building societies

●Credit unions

●National Savings and investments

●Insurance companies

●Pension companies

●Pawnbrokers

●Payday loans

B2: Communicating with customers

Traditionally, banking was carried out face to face. Over time this relationship has become less personal.

Open Ended

Any questions?

Open Ended

How has technology affected how banking operates?

Consider this from the point of view of employees, banks, customers (of different ages) and other businesses.

Poll

Have these changes had a positive or negative impact on banking?

• Positive

• Negative

Open Ended

Has this affected other industries or just banking? Think of examples

Multiple Select

Which methods of interaction do banks use which their customers?

• Branch

• Online banking

• Telephone banking

• Mobile banking

• Postal bannking

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B3 Consumer protection in relation to personal finance

​Have you been missold PPI?

Open Ended

What does PPI stand for?

B3 Consumer protection in relation to personal finance

PPI stands for payment protection insurance. It's designed to cover your loan or credit card repayments for a year in the event of an accident, sickness or, in some cases, unemployment.

In itself, it isn't a bad product. But it's been widely mis-sold.

B3 Consumer protection in relation to personal finance

There are laws and organisations responsible for protecting the rights of consumers. In relation to personal finance, they are there to help ensure that the consumer is not treated unfairly or exploited.

Open Ended

Can you name any organisations that are concerned with protecting consumer rights.

B3 Consumer protection in relation to personal finance

Financial Conduct Authority (FCA) www.fca.org.uk

●Financial Ombudsman Service (FOS) www.financial-ombudsman.org.uk

●Financial Services Compensation Scheme (FSCS) www.fscs.org.uk

B3 Consumer protection in relation to personal finance

Financial Conduct Authority (FCA) www.fca.org.uk

B3 Consumer protection in relation to personal finance

​Financial Ombudsman Service (FOS) www.financial-ombudsman.org.uk

B3 Consumer protection in relation to personal finance

Financial Services Compensation Scheme (FSCS) www.fscs.org.uk

Open Ended

Can you name any leglislation concerned with protecting consumer rights.

B3 Consumer protection in relation to personal finance

●Legislation –consumer credit www.gov.uk/offering-credit-consumers-law

Open Ended

Personal finance is a complicated matter and it is important to all individuals. Can you name any government-funded and independent organisations which offer guidance and advice?

B4: Information guidance and advice

●Citizens Advice

●Independent financial advisor (IFA)

●Price comparison websites

●Debt counsellors

●Individual Voluntary Arrangements (IVAs)

●Bankruptcy​

B4: Information guidance and advice

●Citizens Advice

​Benefits	​Consumer	​Family
​Work	​Housing	​Law and Courts
​Debt and Money	​Immigration	​Health

B4: Information guidance and advice

●Independent financial advisor (IFA)

Independent financial advisers (IFAs) are professionals who offer independent advice on financial matters to their clients and recommend suitable financial products from the whole of the market.​

B4: Information guidance and advice

●Price comparison websites

Price comparison sites do exactly what their name implies: compare the price of goods and services from a range of companies. This allows you to make sure you get a deal that's tailored to you at the best price.​

B4: Information guidance and advice

●Debt counsellors

Give people personalized financial advice, specifically on how to manage their money and debts more effectively and responsibly. Develop a complete budget analysis of someone's current financial situation.​

B4: Information guidance and advice

●Individual Voluntary Arrangements (IVAs)

​An Individual Voluntary Arrangement ( IVA ) is an agreement with your creditors to pay all or part of your debts. You agree to make regular payments to an insolvency practitioner, who will divide this money between your creditors. An IVA can give you more control of your assets than bankruptcy.

B4: Information guidance and advice

●Bankruptcy​

Bankruptcy is a legal status that usually lasts for a year and can be a way to clear debts you can't pay. When you're bankrupt, your non-essential assets (property and what you own) and excess income are used to pay off your creditors (people you owe money to). At the end of the bankruptcy, most debts are cancelled.​