Javier Dorado believes that it is necessary for citizens to understand why it is important to plan, save and invest thinking in the long term and affirms that funds are the most appropriate vehicles to channel those savings.
Is financial education still a pending issue in Spain?
Yes, definitely. Although we are improving little by little thanks to the efforts of the organisms and the financial entities, we still have a long way to go. You only have to see the current composition of the financial savings of families in Spain, the majority is concentrated in assets that do not beat inflation and, therefore, impoverish the saver / investor.
What measures could the administration and the financial entities take to get it approved?
Great strides have been made such as the prominence given to the global saving day or the creation of information platforms and the dissemination of financial culture. Financial institutions play a very important and not at all easy role in the education of society, since they have the ability, at the time of relating to their clients, to transmit messages and concepts related to saving and investment that are crucial for the short-term mindset of savers and investors gradually change. It is necessary to turn around the traditional way of thinking, start moving to the future and, based on that projection, return to the present and decide the most appropriate plan of action. Between all of us we have to get savers to stop to plan and set themselves financial goals, and to understand that the main risk for them is not the volatility of the markets but, for example, not being able to retire in the conditions they want or can not meet goals.
You have promoted financial education through the web 'Fund your future'. Why did you decide to create it and what results are you giving?
In line with the Corporate 'claim' of JP Morgan Asset Management (Let's solve it), Our mission is to help our clients find investment solutions suited to their circumstances and needs. For this, it is necessary for people to understand why it is important to plan, save and invest thinking in the long term and establish financial objectives with time horizons. Creating 'Fund your Future' we wanted to support the financial advisors of this country by providing a simple, intuitive and interactive web tool that helps them convey to their clients these basic but important messages that give meaning to the sacrifice that means saving: plan , start as soon as possible, invest in the long term, how to beat inflation thanks to financial markets, diversify, assume volatility as something normal … 'Fund your Future' It is another step in our commitment to the advisors, a reflection of the work we have been doing for many years with them, but through concepts aimed mainly at the end customer. We want to help Spanish savers achieve their financial goals and we intend, through some simple questions and interactive tools, to generate curiosity and concern in the saver, starting with a 'The future is closer than it seems, is it prepared?'. 'Fund your Future' has a year and a half of life, and we know that there are many advisors in our country who use it to have conversations with their clients about the importance of the long term to be successful when it comes to saving and investing.
In what other ways does your financial institution promote financial education?
We have always been committed to the training of financial advisers. We are partners of EFPA, we are part of the financial education plan of the Bank of Spain and the National Securities Market Commission and we have developed training initiatives for advisors. In addition, we have the Market Insights program to support the consultant in advising and educating the final client.
With a greater financial culture of the savers and the investors could have avoided scandals like the one of the preferred participations?
Problems of this type have been several over the years, due to a lack of understanding on the part of small investors about the products they were hiring. Although regulators constantly introduce changes and additional controls to protect the small saver and the investor, the most important thing is to make them understand the basic concepts when investing, for example, that of diversification, since correct diversification can contribute significantly to reduce the level of risk of an investment portfolio. If the level of financial culture in our country were adequate, small savers and investors would be more familiar with the existing products to make the savings profitable, which are many and very good. There are still people who think that investment funds are destined only for large assets, or that they are high risk products, when they are the most appropriate vehicles to channel the savings of any individual. This thought would be less frequent if it improved the financial culture in Spain.