Financial exclusion

In Poland

Katowice, 09.05.2014

Team:

Filip Kałamaga Kasia Karwacka Maciej Czempiel

Agenda

Introduction Level and structure of financial exclusion Causes and consequences of financial

exclusion Government role in preventing financial

exclusion Institutions and their actions Characteristic of “SKOK” Conclusions

Introduction

What is financial exlcusion?

A state in which all people have access to appropriate, desired financial products and services in order to manage their money effectively. It is achieved by financial literacy and financial capability on the part of the consumer, and access on the part of financial product, services and advice suppliers

Area312,679 km2 (70th)

Population38 533 299 (34th)

PPP -Total $813.988 billion (21st)-Per capita $21,118 (49th)

GDP -Total $513,934 billion (23rd)-Per capita $13,334 (54th)

Unemployment =13.0%

Accession to the EU – 1 May, 2004

LEVEL AND STRUCTURE OF FINANCIAL EXCLUSION

2000-2005 Below 60 % of Polish population over 15

year old had a bank account

2006-2009 After the survey by NBP in 2009 this proportion amounted

to 77%

PEOPLE LIVING IN EUROPEAN UNION WHO USE BANK ACCOUNTS (2009, %): source: NBP

12. Austria - 9413. Malta - 9314. Luxemburg - 9315. Portugal - 8916. Spain - 8817. Slovenia - 8818. Cyprus - 8619. Czech Republic - 8620. Slovakia - 8521. Lithuania - 8122. Poland - 77

1. Finland - 992. Denmark - 993. Sweden - 984. Belgium - 985. France - 976. UK - 967. Estonia - 968. Germany - 969. Grece - 9610. Irland - 9511. Holand - 94

2009-2012 ¼ of Polish people still have no access to

financial services

Why people are not willing to be active?

It is not necessary for themThey prefer to keep money in cashThey don’t have enough money to investThe lack of trust

AMONG THOSE, WHO ARE IN THE BIGGEST DANGER OF FINANCIAL EXCLUSION People over 65 years of age - 57% of this group do not have an account (in

comparison to those aged 35-44 years the proportion of people without accounts amounted to 4%)

inhabitants with low incomes 41% of people living in households with incomes not exceeding 1300 zl does not have a bank account (among households with incomes at the level of 2400 to 3800 zł - 8%)

Low-educated (primary, basic) – 68 % while high-educated – 1 %

Retirees, pensioners and students - the percentage of people who do not have an account amounted to 50% , in the case of pensioners, 46% for pensioners and 41% for students).

Residents of rural areas - 28% (for example among the inhabitants of cities in size from 20 to 99 thousand the proportion of residents with no bank account is 14%)

Causes and consequences of financial exclusion

Causes

Type of factorsNumber of countries in which there was

identified financial exclusion

social factors

Technical loop 10/26

changes in job sector 8/26

injustice in income 8/26

market liberalisation, paying less attention to marginal market segments 6/26

market liberalisation, dissapearing of institution for people of low income 5/26

social help 5/26

social changes 4/26

money loundering 3/26

monetary policy 3/26

demographic changes - young people 2/26

demographic changes - migrations 2/26

supply factors

Risk evaluation 8/26

marketing 8/26

geographic access 7/26

product design 7/26

service providing 7/27

complex of choice 7/28

price 4/26

type of product 1/26

demand factors

cost related problems 8/26

belief that it is not for poor/low selfestime 8/26

fear of loosing financial control 7/26

lack of trust to service providers 7/26

alternative choices, cultural factors 4/26

religion 4/26

bad experiences 1/26

Effects:

Financial exclusion -> social exclusion

Impact on integration within modern European societies

Inconveniences and difficulties

Danger of poverty

Government goals and role for preventing financial exlclusion

Education Preventing poverty Unemployment Disabled peoples Social care

National Bank of Poland

Economic Education Portal NBPortal.pl

Educational programmes for schools, teachers

Project: The Accessible Bank

Financial Services Commission

Week of Savings on 31 October on the occasion of World Savings Day

Institutions and their actions

Years

Number of

branches

Number member

s

Loans(in thousand

zł.)Years

Number of

branches

Number members

Loans(in

thousand zł.)

2013 1 892 2 660 12 035 809 2004 1 461 1 169 2 856 265

2012 1 987 2 591 11 090 601 2003 1 285 924 2 212 939

2011 1 934 2 315 10 906 655 2002 923 703 1 659 780

2010 1 851 2 177 9 792 675 2001 680 525 1 235 554

2009 1 801 2 026 8 411 273 2000 560 394 865 748

2008 1 757 1 856 6 932 627 1999 420 306 668 386

2007 1 663 1 669 5 147 320 1998 290 259 412 482

2006 1 589 1 551 4 047 299 1997 237 194 280 598

2005 1 553 1 395 3 502 929 1996 168 138 160 843