Canada

1. Canada Canada Deposit Insurance Corporation Société d’assurance-dépôt du Canada CDIC Protecting Your Deposits Deposit Insurance Awareness John Raymond LaBrosseDirector, International AffairsCanada Deposit Insurance Corporation December 8, 2003

2. Canada Canada Deposit Insurance Corporation Société d’assurance-dépôt du Canada CDIC Purpose of the Presentation To provide an overview of CDIC’s approaches in meeting its responsibilities in regard to ensuring public awareness on deposit insurance.

3. Canada Canada Deposit Insurance Corporation Société d’assurance-dépôt du Canada CDIC CDIC’s Mandate • CDIC’s Statutory Objects are to: • Provide insurance. • Contribute to the stability of the financial system. • Promote standards of sound business and financial practices. • Do so in a manner that would minimize CDIC’s exposure to loss. • For the benefit of depositors.

4. Canada Canada Deposit Insurance Corporation Société d’assurance-dépôt du Canada CDIC Supporting CDIC’s Mandate • Why public awareness is so important? • Most Canadians do not know or fully appreciate • the value of deposit insurance. • Confusion exists as to what is insured and lack of awareness and misunderstanding about deposit insurance amount to risks. • Many Canadians believe in the invincibility of the financial system and the major banks. • Deposit insurance is not a concern to depositors, it is an expectation, a blind trust.

5. Canada Canada Deposit Insurance Corporation Société d’assurance-dépôt du Canada CDIC Supporting CDIC’s Mandate • As experience shows, there is always the potential for a member institution to fail and, given this reality, the risks of not informing Canadians about deposit insurance are high. • The risks of not adequately informing the public are: • Financial • Regulatory • Political • Reputation • If we did nothing, CDIC would be subject to criticisms should an institution fail.

6. Canada Canada Deposit Insurance Corporation Société d’assurance-dépôt du Canada CDIC Supporting CDIC’s Mandate • How public awareness fits with CDIC’s mandate to promote and contribute to the stability of the financial system: • Communicating the relevant details of deposit insurance to Canadians is a means to fulfill this mandate. • Informed financial consumers are better equipped to make financial decisions based on their needs and priorities. • Financial consumers who make decisions that are right for them contribute to the stability of the financial system. They are more secure in face of financial fluctuations and uncertainties.

7. Canada Canada Deposit Insurance Corporation Société d’assurance-dépôt du Canada CDIC Supporting CDIC’s Mandate Public Awareness and Canada’s Federal Deposit Insurance System: “Experience has shown that the characteristics of a deposit insurance system need to be publicized so that its credibility can be maintained and strengthened.” (Report of the Financial Stability orum’s Working Group on Deposit Insurance) The public needs to know and understand both the benefits and limitations of a DIS.

8. Canada Canada Deposit Insurance Corporation Société d’assurance-dépôt du Canada CDIC Effective Communications • Elements of effective communications: • Clearly defined objectives • Tailor messages, activities and tactics to “lowest common denominator”. • Reflect important “local” factors in the program. • Ensure your activities are open and transparent. • Challenge others to support your objectives. Be prepared for resistance.

9. Canada Canada Deposit Insurance Corporation Société d’assurance-dépôt du Canada CDIC Effective Communications • Assess your public environment to define your public awareness objectives. Find out: • Know your audiences. Who knows about deposit insurance? What do they know about it? How important is it to them? How do they get their financial information? Get to know the people you want to reach. • What is the correlation between certain characteristics (e.g. demographics, Religion, Urban and Rural) and level of knowledge? • Identify 3rd Party Stakeholders.

10. Canada Canada Deposit Insurance Corporation Société d’assurance-dépôt du Canada CDIC Effective Communications • Public opinion surveys enable you to: • Identify knowledge gaps within your public environment. • Segment the population into meaningful groupings – target audiences. • Set statistical targets for public awareness efforts. • Assess where you are achieving positive results – and where you need to introduce improvements. • The findings cannot be transferred to another context. The environment of every deposit insurance system is distinct – and must be studied and understood before a program can be truly effective.

11. Canada Canada Deposit Insurance Corporation Société d’assurance-dépôt du Canada CDIC Effective Communications • Focus groups do not generate statistics, but they can enhance your public awareness effort. • Focus groups go beyond numbers. • They probe and build insight into why people say what they do. • The freely expressed sentiments and reactions of participants speak volumes. • Focus group participants in Canada have told us clearly that depositors, CDIC and financial institutions all have a responsibility for public awareness. • They also told us that financial institutions should assume primary responsibility for awareness of deposit insurance… and why that is. • However,although the public expects their financial institutions to provide accurate and timely info about deposit insurance, experience shows otherwise FI’s do not share that view.

12. Canada Canada Deposit Insurance Corporation Société d’assurance-dépôt du Canada CDIC Effective Communications • To create a public awareness program for the benefit of depositors: • Respect the role of the deposit insurance system. Ask yourself, “Who is the system designed to protect?” • Apply the findings of your research to your messages, activities and approach. Know the effectiveness of you delivery channels. • Take into account the full context of the financial system. • Plan your program so it can remain relevant and responsive to trends and events.

13. Canada Canada Deposit Insurance Corporation Société d’assurance-dépôt du Canada CDIC Public Awareness Campaign • CDIC’s Public Awareness Campaign – A five-year program to increase public awareness of deposit insurance. The objectives of the program are: • To correct the misunderstanding that deposit insurance coverage is unlimited; • To inform consumers about the benefits and limitations of deposit insurance (e.g. limits of coverage, what is and is not insured); and • To increase public awareness of the federal deposit insurance system.

14. Canada Canada Deposit Insurance Corporation Société d’assurance-dépôt du Canada CDIC Public Awareness Campaign • Guiding Principles – Implementation of the program reflects a resourceful, responsible approach, which includes: • Capitalizing on partnerships; • Supporting and enhancing stakeholder relations; • Positioning the Corporation as a leading advocate of sound business and financial practices; and • Carrying out the strategy in a sustained manner, using a variety of tools and tactics carefully selected to match target audiences and messages.

15. Canada Canada Deposit Insurance Corporation Société d’assurance-dépôt du Canada CDIC Public Awareness Campaign • Target Audiences have been selected according to their information needs and, in some cases, their capacity to support and participate in the public awareness activities. The primary audiences are: • The public at large (25-64) • News media • Member Institutions • Government and Elected Officials • CDIC Employees

16. Canada Canada Deposit Insurance Corporation Société d’assurance-dépôt du Canada CDIC Public Awareness Campaign • CDIC uses a combination of activities and tools to increase public awareness. These include: • Television and print advertising • Member Relations • Media Relations • Stakeholder relations and partnerships • Public Relations • Internal Communications

17. Canada Canada Deposit Insurance Corporation Société d’assurance-dépôt du Canada CDIC Depositor Awareness • Television Advertising • Is the core activity of the program; • Is the source preferred by Canadians for information about deposit insurance; • Incorporates properties of sight, sound and motion to get a message across quickly, meaningfully and memorably.

18. Canada Canada Deposit Insurance Corporation Société d’assurance-dépôt du Canada CDIC Depositor Awareness • Member Relations • Involves seeking and acting on opportunities to work with member institutions to increase awareness of deposit insurance and of CDIC as a partner in Canada’s financial system; • Is an activity shaped to an important degree by the Deposit Insurance Information By-law; and • Not introduced yet / should speak to it, what it is, what itaccomplishes

19. Canada Canada Deposit Insurance Corporation Société d’assurance-dépôt du Canada CDIC Depositor Awareness • CDIC Decal and Brochures

20. Canada Canada Deposit Insurance Corporation Société d’assurance-dépôt du Canada CDIC Depositor Awareness • Media Relations • Uses survey results and stories that quantify trends to attract business and financial journalists’ interest; • Includes pro-active activities like offering interviews and feature opportunities; and • Also includes distribution of factual stories to community and multi-cultural newspapers across the country.

21. Canada Canada Deposit Insurance Corporation Société d’assurance-dépôt du Canada CDIC Depositor Awareness • Stakeholder Relations • Reinforces relevance of deposit insurance within the Canadian consumer marketplace through partnerships; • Has recently included partnerships with the Canadian Bankers Association, the Federation of Canadian Independent Deposit Brokers, and the Financial Consumer Agency of Canada; and • Provides leverage for the Corporation to engage in public education activities – an area that, in Canada, can be costly and complicated if pursued independently.

22. Canada Canada Deposit Insurance Corporation Société d’assurance-dépôt du Canada CDIC Depositor Awareness • Public Relations • Includes CDIC’s Web site, maintained to ensure it is user friendly; • Toll-free inquiries services; • Participation in conferences and trade shows – as speakers and presenters; and • Publications program.

23. Canada Canada Deposit Insurance Corporation Société d’assurance-dépôt du Canada CDIC Depositor Awareness • CDIC Web site • Website: www.cdic.ca • E-mail: info@cdic.ca

24. Canada Canada Deposit Insurance Corporation Société d’assurance-dépôt du Canada CDIC Depositor Awareness • Toll-free lines • Services in English: 1-800-461-CDIC (2342) • Services in French: 1-800-461-SADC (7232)

25. Canada Canada Deposit Insurance Corporation Société d’assurance-dépôt du Canada CDIC Depositor Awareness • Trade shows

26. Canada Canada Deposit Insurance Corporation Société d’assurance-dépôt du Canada CDIC Depositor Awareness • Publications program

27. Canada Canada Deposit Insurance Corporation Société d’assurance-dépôt du Canada CDIC Depositor Awareness • Internal Communications • CDIC Intranet site, which is being updated to ensure employees have easy access to corporate and other information to help them do their jobs; • Web-based newsletter, Flash; • Staff meetings and other corporate events to keep employees informed of corporate issues and foster team spirit.

28. Canada Canada Deposit Insurance Corporation Société d’assurance-dépôt du Canada CDIC Public Awareness Campaign • Common Features of the Public Awareness Activities • Corporate design • Reference to one another (e.g. Toll-free number and Web address on television advertisement) • Created to complement each other.

29. Canada Canada Deposit Insurance Corporation Société d’assurance-dépôt du Canada CDIC Public Awareness Campaign • Recognizing the merits of regular evaluation, CDIC conducts the following research projects: • Annual CDIC Public Awareness Survey (also known as “the tracking survey”) • Focus Testing • Mystery Shopper

30. Canada Canada Deposit Insurance Corporation Société d’assurance-dépôt du Canada CDIC Public Awareness Campaign • Impact to Date – Results of the 2003 Public Opinion Survey Highlights: • General awareness is now at 62%, an increase from 47% prior to the launch of the campaign. The goal for the end of year five is to reach an awareness level of 70%. • Awareness of the $60,000 limit is now 32%, up from 23% prior to the campaign. The objective is to reach 50% at the end of year five. • The percentage of those who incorrectly believe that mutual funds are insured has declined from 40 to 37%. Year four of the campaign is designed to particularly address this misconception.

31. Canada Canada Deposit Insurance Corporation Société d’assurance-dépôt du Canada CDIC Public Awareness Campaign • Are we realizing the campaign objective to persuade people to find out more about deposit insurance: • Calls to our Toll-free lines have increased to 16,270 at the end of year three, from 14,192 the year prior to the launch of the campaign, representing a 15% increase. • Visits to our Web site have increased to 282,694, representing 2.5 times the number of Web site visits in comparison to the year preceding the launch of the campaign. • The number of copies of the brochure Protecting Your Deposits requested by member institutions have increased from 735,652 to 1,125,919 – a 50% increase.

32. Canada Canada Deposit Insurance Corporation Société d’assurance-dépôt du Canada CDIC Public Awareness Campaign • Making the Campaign Stronger – According to what we find from surveys, focus groups, target audiences and experience, the campaign is monitored and directions adjusted. In year four, we are: • Developing a new television commercial to focus on reducing the number of depositors who incorrectly believe mutual funds are insured. • Increasing emphasis on public education through partnerships. • Strengthening public awareness work with member institutions through discussions and enhancements to the Deposit Insurance Information By-law.

33. Canada Canada Deposit Insurance Corporation Société d’assurance-dépôt du Canada CDIC Public Awareness Campaign A sustained, multi-faceted public awareness campaign is an integral component of an effective deposit insurance scheme.

34. Canada Canada Deposit Insurance Corporation Société d’assurance-dépôt du Canada CDIC Public Awareness Campaign • Some requirements for success include: • Attention and responsiveness to what the research indicates; • A strategic approach that unites the various activities and emphasizes partnerships and collaborations with appropriate parts of financial system; • Exchange of information with relevant organizations, with identification best practices; and • Innovation – the ongoing pursuit of opportunities so the program grows and remains relevant to depositors and the public at large.

35. Canada Canada Deposit Insurance Corporation Société d’assurance-dépôt du Canada CDIC Questions?

36. Canada Canada Deposit Insurance Corporation Société d’assurance-dépôt du Canada CDIC Protecting Your Deposits Canada Deposit Insurance Corporation50 O’Connor Street, 17th FloorP.O. Box 2340, Station DOttawa, Ontario K1P 5W51-800-461-2342www.cdic.caDenise RobichaudManager, Communications and Public Affairstel: (613) 995-6548 fax: (613) 947-0435 e-mail: drobichaud@cdic.ca