international personal finance financial inclusion and wellbeing report

Wave 4 Results October – December 2013

International Personal FinanceFinancial Inclusion and Wellbeing Report

Contents

1. Background & Method2. Economic Outlook3. Financial Holdings4. Use of Credit Services5. Standard of Living6. Further Research

Background & Method

Background

• IPF currently provides consumer credit to 2.5 million customers, across six international markets. The business offering is unique for the markets in which IPF operates.

• This project is designed to engage with IPF’s customer base, understand the issues they have and their feelings towards the society in which they live, and how they can be better represented in the political and commercial worlds.

• IPF wishes to use this research to enhance its unique position as a mouthpiece for the lower socio-economic demographic amongst key groups of decision-makers.

• This was the fourth wave to be run using the IPF panel and 11,472 individuals completed the survey this time.

• Please note that any reference in commentary to ‘Czechs’ or ‘Hungarians’ specifically relates to IPF customers in those markets and not the population of the country as a wholeBackground & Method

Method

Invitation from IPF to register for the panel

Registration survey

YES Take survey now

NOTake survey later

Reminder to take survey

No response

Complete now

Wave 2 survey

Email invitation from YouGov to

take Wave 4

Call from IPF inviting customer to take part in

Computer Assisted Telephone Interview

(CATI)

Happy to take survey

Refused to take part

IPF customers not previously invited IPF existing panellists IPF customers without email addresses

Background & Method

Mexico & Poland only

Provident Communities

Czech Republic

Online completes 3,887

Hungary


Mexico

Online completes 198

CATI completes 280

Slovakia


Romania

Online completes 837

Poland


CATI completes 121

Background & Method

For wave 4 as with wave 3, we have continued to use the same the weighting process so that the data contained in this report is reflective of IPF’s customer book1. IPF customer book is the split by country of the customer database2. Market-level weighting shows the weighting used in the individual country tables3. Overall-level weighting are the weights used in the overall tables to emphasise the importance of each group in the customer book as a whole

IPF Customer BookCzech Rep Hungary Mexico Poland Romania Slovakia

% of customer book 10.5% 10.0% 28.0% 35.0% 10.9% 5.6%

Market-level weightingMale 46.6% 42.2% 32.4% 43.5% 44.8% 44.1%

Female 53.4% 57.8% 67.6% 56.5% 55.2% 55.9%18-24 13.7% 6.4% 15.7% 12.9% 5.4% 12.6%25-34 23.3% 18.3% 28.1% 21.2% 21.2% 23.2%35-44 23.3% 24.3% 27.3% 20.5% 29.3% 23.1%45-54 18.2% 20.2% 18.7% 20.8% 19.1% 20.1%

55+ 21.5% 30.8% 10.1% 24.6% 25.1% 21.1%

Overall-level weightingMale 4.9% 4.2% 9.1% 15.2% 4.9% 2.5%

Female 5.6% 5.8% 18.9% 19.8% 6.0% 3.1%18-24 1.4% 0.6% 4.4% 4.5% 0.6% 0.7%25-34 2.4% 1.8% 7.9% 7.4% 2.3% 1.3%35-44 2.4% 2.4% 7.6% 7.2% 3.2% 1.3%45-54 1.9% 2.0% 5.2% 7.3% 2.1% 1.1%

55+ 2.3% 3.1% 2.8% 8.6% 2.7% 1.2%

Provident Communities

Background & Method

Economic Outlook

Concerns over loss of employment and neighbourhood crime have fallen significantly in the past six months

Cost of living

Loss of your job

Crime in your neighbourhood

Cost of health services

Cost of education

Public service cuts

Other

Not sure

I have no concerns

50%

21%

11%

6%

4%

1%

2%

2%

3%

49%

18%

7%

6%

6%

1%

3%

5%

5%

Nov '13Apr '13

Which of these is of most concern to you currently? Base: April 2013 (9,960) | November 2013 (11,472)

• The flipside is an increase in the proportion of people concerned over the rise in education costs• More people are reporting that they have no concerns

Economic Outlook

Which of these is of most concern to you currently? Base: All in Czech Republic April (1,796) Nov (3,887)

Czechs are less concerned about job losses than they have been previously• This fall is significant among 18-24 year-olds, with a drop of eight percentage points• Cost of living concerns remain the same overall, although they are now driven more by women

than men

Apr Nov Apr Nov Apr Nov Apr Nov Apr Nov Apr Nov Apr Nov Apr Nov

64% 64% 63% 61% 65% 67%58% 56%

62% 64% 64% 64% 67% 66% 69% 69%

16%13% 17%

13%16% 12% 27%

19%15% 12% 17% 12%

15% 15% 11% 9%

5%5%

3%4%

7%5%

6%

6% 3% 4%3%

3%

6% 4% 8% 7%

11%15% 12% 17%

10% 13%6%

16% 15% 15%13%

16%9% 12% 9% 12%

3% 4% 5% 5% 2% 3% 3% 3% 5% 5% 3% 5% 3% 3% 3% 3%

Cost of living Loss of job Cost of health services Other No concerns

Total Male Female 18-24 25-34 35-44 45-54 55+

Economic Outlook

Which of these is of most concern to you currently? Base: All in Hungary April (4,835) Nov (3,457)

Very little has changed in the concerns of Hungarians in the past six months• 18-24 year-olds are significantly less concerned with the cost of living than they have been previously• Men have become more confident in the security of their jobs• The cost of education has become slightly more of a concern, but still sits at only 4% of Hungarians


80% 79% 78% 80% 81% 78%85%

78% 83% 83% 81% 80% 81% 79% 75% 76%

4% 4% 5% 3% 4%4%

4%

3%5% 4% 4% 3% 4% 5%

5% 3%

3% 3% 3% 3% 4%3%

1%

3%1% 2% 1% 1%

3% 2% 6% 5%

11% 12% 12% 11% 9% 14% 8%12%

9% 9% 12% 15% 10% 13% 13% 14%

2% 2% 2% 3% 2% 1% 2% 4% 2% 2% 2% 1% 2% 1% 1% 2%



Economic Outlook

Which of these is of most concern to you currently? Base: All in Mexico April (542) Nov (478)


22% 23% 25%19% 21% 25%

14%6%

14% 13%

29%36% 34% 37%

20% 18%

29% 24%28%

25%30% 23% 42%

28%

39%

25%

21%18% 18%

22%

26% 31%

34%

22%

33%

29%

34%

19%

29%

20%

30%

25%

36% 27% 35% 17% 42%

16%

14%

25%

12%

21%

14%

27%

13%

35%

16%

27%

14% 19% 11%22%

10%

27%

1% 6% 2% 6% 1% 6% 2%11%

1%10%

0% 0% 2% 2% 2%8%

Cost of living Loss of job Crime in neighbourhood Other No concerns


Economic Outlook

There has been a significant drop in the concerns of Mexicans over the levels of crime in their neighbourhoods• This is complemented by a six-fold increase in those who have no concerns• However, despite falls elsewhere, concern over the cost of living remains unchanged at a

quarter of respondents

Which of these is of most concern to you currently? Base: All in Poland April (915) Nov (1,794)


53% 50% 52% 49%55% 51%

44%53% 48% 52% 51% 49%

58%50%

61%

47%

22%20%

23%21%

21%20%

27%18% 31% 22% 24% 25%

20%24%

9%

14%

10%10%

11%10%

10%11% 9% 5%

5%5% 8% 7%

8%10% 19%

20%

10%13%

9%11%

10% 13% 13%14%

11%14% 9% 14%

11% 11%10%

11%

5% 7% 5% 9% 4% 5% 7% 10% 5% 7% 8% 5% 3% 5% 1%8%



Economic Outlook

Poles have become less concerned over the cost of living and job security over the past six months• However, this outlook on job security is only reflected in the attitudes of those aged 18-34; among

older people it continues to rise• The older generation are also noticeably concerned about the continued rise in health service costs

Which of these is of most concern to you currently? Base: All in Romania April (1,478) Nov (837)


62% 64% 63% 67%61% 61%

50%59%

53%61% 62% 59%

67% 66% 67% 71%

17% 16% 15% 12% 19% 18%

24%

24%

22%17% 16% 19%

18% 15% 10%10%

7% 6% 7% 6% 7% 6%7%

3%8% 6% 9% 9%

6%6%

4% 1%

11% 11% 12% 11% 11% 13%12%

8% 13% 12% 11% 11% 8% 12%18% 15%

3% 3% 3% 4% 2% 2% 7% 6% 4% 4% 2% 2% 1% 1% 1% 3%

Cost of living Loss of job Cost of education Other No concerns


Economic Outlook

The past six months has seen very little change in the concerns of Romanians• A slight rise in concern over the cost of living is most apparent among those aged 18-34• Concern over job losses and the cost of education have both dropped slightly suggesting a

general economic improvement

Which of these is of most concern to you currently? Base: All in Slovakia April (394) Nov (1,019)


64% 59% 64%55%

65% 63% 62%51%

69%61% 63% 64%

57% 53%

68% 65%

20%18%

17%

21%

21%16% 23%

22%

13%16%

23% 20%26%

27%

13%9%

3%5%

3%4%

3%5%

0%

4%

5%2%

3% 2% 3% 4% 4%10%

9%11% 10%

10%

8%12% 12%

13%6%

16%

10%9% 9% 8% 9% 9%

4% 7% 6% 10%3% 4% 3%

10% 7% 5% 1% 5% 5% 8% 6% 7%



Economic Outlook

IPF customers in Slovakia report that they have fewer concerns than they felt six months ago• This is reflected in fewer worrying about the cost of living• There has been an increase among men in concern over job security while the exact opposite

trend is apparent amongst female respondents

Increases in the cost of food, particularly in Czech Rep and Hungary, is the most apparent driver in the cost-of-living increase

All

Czech Rep

Hungary

Mexico

Poland

Romania

Slovakia

32%

23%

42%

26%

39%

20%

43%

25%

15%

8%

28%

23%

49%

21%

9%

6%

5%

19%

6%

1%

2%

6%

16%

18%

1%

4%

8%

7%

6%

2%

6%

5%

7%

5%

6%

12%

23%

4%

8%

13%

11%

12%

7%

6%

16%

9%

4%

4%

5%

4%

9%

1%

3%

3%

2%

3%

Increase in cost of food Increase in cost of utilities Increase in transport costs

Increase in rent or mortgage payments Increase in cost of consumer/household goods Other

Not sure I don’t believe there has been an increase in the cost of living

Which of the following would you say is most responsible for the increase in the cost of living? Please select one answer only. Base: All Nov’13 (11,472), CZ (3,887), HU (3,457), MX (478), PL (1,794), RO (837), SK (1,019)

• Cost of utilities remains the second most-cited item although significantly fewer people report this when compared with six months ago

• Healthcare and education costs are two items pushing the cost of living higher according to IPF customers

Economic Outlook

Thinking of the next twelve months, do you expect the economy in your country to get better or worse? Base: All Nov’13 (11,472), CZ (3,887), HU (3,457), MX (478), PL (1,794), RO (837), SK (1,019)

All

Czech Rep

Hungary

Mexico

Poland

Romania

Slovakia

12%

9%

13%

15%

11%

5%

14%

22%

18%

22%

26%

21%

24%

15%

20%

20%

10%

16%

25%

17%

26%

27%

41%

35%

19%

29%

21%

34%

16%

11%

17%

18%

13%

27%

9%

3%

1%

2%

6%

1%

5%

1%

Not sure A lot worse A little worse Will stay the same A little better A lot better

Confidence in the ability of the economy to improve over the next 12 months has risen since April 2013• This pattern, most evident in Hungary and Poland, is reflective of all Eastern European markets• Romania remains the market where people have the most positive outlook, with a third

expecting improvement• Mexicans expect a slight deterioration in the country’s economy in the next 12 months

Economic Outlook

Better

Increased earnings

Changed personal circumstances

New job

Able to work again

Family member sending money from abroad

Help from the state

Other

Not sure

39%

54%

30%

28%

7%

5%

3%

11%

2%

40%

49%

27%

25%

7%

5%

4%

11%

6%

Worse

Increased living cost

Reduced income

Job loss in HH

Not able to work

Changed personal circumstances

Family member stopped sending money from abroad

Other

Not sure

21%

72%

33%

25%

15%

11%

2%

7%

2%

18%

70%

32%

19%

13%

10%

4%

8%

5%

Thinking now of the financial position of your own household, over the next twelve months, do you think your financial position will get better or worse? You say that you think your financial position will get better/worse, which of these could explain why things will change? Base: All Apr’13 (9,960); Better (3,126); Worse (2,448) | Nov’13 (11,472); Better (4,589); Worse (2,065)

The past six months has seen a small movement in the level of positivity of IPF customers regarding their household finances• Increased earnings and changed personal circumstances remain the two most cited drivers of

improvement in household economic situation• However, there are increased levels of uncertainty when compared with six months ago

Economic Outlook

Apr’13

Nov’13

Thinking now of the financial position of your own household, over the next twelve months, do you think your financial position will get better or worse? You say that you think your financial position will get better/worse, which of these could explain why things will change? Base: All Nov’13 (11,472), CZ (3,887), HU (3,457), MX (478), PL (1,794), RO (837), SK (1,019)

Economic Outlook

Fewer Czechs and Hungarians feel that their household economic situation will worsen compared to six months ago• Mexicans are significantly less likely to claim that increased wages are the driver of improved

household financial situationCzech Rep Hungary Mexico Poland Romania Slovakia

Better 28% 29% 55% 37% 37% 32%

Increased hours /earnings 54% 55% 37% 64% 54% 26%

Changed personal / family circumstances 30% 19% 22% 34% 25% 23%New job 20% 28% 23% 28% 22% 29%

Able to work again 8% 6% 8% 7% 7% 5%Family member sending money from abroad 3% 6% 1% 7% 15% 8%

Help from the state 6% 2% 4% 6% 2% 4%Other 10% 13% 14% 9% 10% 8%

Not sure 3% 7% 9% 3% 3% 4%

Czech Rep Hungary Mexico Poland Romania Slovakia

Worse 23% 22% 8% 22% 23% 19%Increased cost of living 62% 77% 48% 75% 81% 48%

Reduced income / hours 26% 44% 23% 35% 33% 17%Job loss/ partner job loss 21% 21% 20% 20% 16% 15%

Changed personal / family circumstances 13% 6% 12% 12% 4% 8%Not able to work 10% 12% 1% 18% 11% 10%

Family member stopped sending money from abroad 1% 7% - 3% 9% 1%Other 11% 6% 13% 7% 4% 5%

Not sure 4% 3% 16% 2% 3% 4%

How much do you trust the financial sector?Base: All Nov’13 (11,472), CZ (3,887), HU (3,457), MX (478), PL (1,794), RO (837), SK (1,019)

Economic Outlook

Trust in the financial sector is higher in Mexico than other IPF markets• In Eastern Europe, Slovakians are most likely to trust their financial sector, with Hungarians the

least trusting • Perhaps reflecting the fact that cynicism increases with age, 18-24 year-olds are most trusting

of the financial sector

0 1 2 3 4 5 6 7 8 9 100%

5%

10%

15%

20%

25%

30%

35%

40%All Czech Rep Hungary Mexico Poland Romania Slovakia

No confidence Full confidence

Household economic situation summary

Compared to previous results,

fewer people are concerned about job losses and neighbourhood crime

Food and utilities remain most cited drivers of cost of living increases,

with healthcare more prominent than previously found

Mexicans are more trusting in their financial sector than any of the European nations

IPF customers are more positive about the economic outlook than six months ago

There is increased concern in the

rise of education costs since April 2013

Economic Outlook

Financial Holdings

Which of these products do you have? Choose as many as apply. Base: All Apr’13 (9,960) | Nov’13 (11,472)

Bank account

Credit Card

Life insurance

Retirement savings

plan

Buildings insurance

Savings account

Home contents

insurance

ASU in-surance

Mortgage Long term invest-ment

None of these

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

54%

33% 32%

20% 19% 19% 15% 15% 14%

3%

17%

54%

31% 32%

19% 18% 16% 15% 16% 14%

3%

17%

Apr'13 Nov'13

As found previously, just over half of IPF customers hold a bank account, although there has been a small drop in savings account ownership• There has also been a slight fall in credit card ownership in the past six months• Ownership of other financial products has not moved more than one percentage point

Financial Holdings

Which of these products do you have? Choose as many as apply. Base: All Czech Rep Apr’13 (1,796) | Nov’13 (3,887)

Bank account

Credit Card Retirement savings

plan

Life in-surance

Home con-tents in-surance

ASU In-surance

Buildings insurance

Mortgage Savings account

Long term investment

None of these

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

71%

37% 40%

27% 25%18% 16%

12% 11%4%

11%

74%

38% 35%

26% 26%19%

14% 12% 10%4%

12%

Apr'13 Nov'13

Fewer Czechs have plans in place for retirement than we saw six months ago• However, there has been a rise in the proportion of individuals holding a bank account• Czech Rep has also seen a slight fall in those who have buildings insurance

Financial Holdings

Which of these products do you have? Choose as many as apply. Base: All Hungary Apr’13 (4,835) | Nov’13 (3,457)

Bank account


Mortgage Credit Card Life in-surance

Buildings insurance

ASU in-surance

Retirement savings

plan

Savings account


None of these

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

77%

46%38%

30%23%

19%

10%6% 4%

2%6%

76%

45%37%

27% 24%20%

9% 6% 4% 2% 7%

Apr'13 Nov'13

A quarter of Hungarians have a credit card, significantly fewer than we saw in April 2013• Bank account ownership remains at three in four Hungarians, higher than almost all other markets• Ownership of life insurance is significantly higher among men (27%) than women (23%)

Financial Holdings

Which of these products do you have? Choose as many as apply. Base: All Mexico Apr’13 (542) | Nov’13 (478)

Retirement savings

plan

Life in-surance

Savings account

Credit Card Bank account

ASU in-surance

Mortgage Long term investment

Buildings insurance


None of these

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

30%24% 22%

18%14%

10%6% 4% 3%

1%

37%34%

24% 21%17% 16% 15%

6% 4% 3% 2%

34%

Apr'13 Nov'13

Ownership of ASU insurance in Mexico has increased by five percentage points since April 2013• Bank account ownership has risen slightly but remains very low compared to Europe• Retirement planning is the financial product most owned by Mexicans

Financial Holdings

Which of these products do you have? Choose as many as apply. Base: All Poland Apr’13 (915) | Nov’13 (1,794)

Bank account

Life in-surance

Credit Card Buildings insurance

Savings account

ASU in-surance

Mortgage Home con-tents in-surance

Retirement savings

plan


None of these

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

75%

46%40%

25% 25%21%

13% 12% 10%

2%8%

72%

47%

36%

25%21% 19%

13% 12%8%

3%9%

Apr'13 Nov'13

Poland has seen a fall in the level of ownership of both bank accounts and credit cards• Ownership of personal insurances (life, ASU) is significantly higher among men than women• Retirement plans are held by the same proportion of over 55s as those aged 35-44

Financial Holdings

Which of these products do you have? Choose as many as apply. Base: All Romania Apr’13 (1,478) | Nov’13 (837)

Credit Card Bank account

Buildings insurance

Life in-surance


Mortgage Retirement savings

plan

ASU in-surance

Savings account


None of these

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

45%

36%41%

21%15% 13% 13% 12%

7%2%

17%

47% 44%39%

20%14% 14% 14% 12%

7%2%

17%

Apr'13 Nov'13

Bank account ownership in Romania has significantly increased in the period from April to October 2013• However, credit card ownership has also risen in that time• Life insurance is owned by a quarter of men (24%) compared to only 17% of women

Financial Holdings

Which of these products do you have? Choose as many as apply. Base: All Slovakia Apr’13 (394) | Nov’13 (1,019)

Bank account

Credit Card Life in-surance

Retirement savings

plan


Mortgage Savings account

ASU in-surance

Buildings insurance


None of these

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

85%

43%38%

33% 35%

24% 21% 21% 18%

4% 3%

76%

37%

27% 26% 25%19%

16% 14% 13%

2%7%

Apr'13 Nov'13

Slovakia has seen falls in ownership of a number of products• Ownership of most products is higher among men than women except savings accounts, where

twice as many women have them• The proportion of credit card holders increases with age

Financial Holdings

Financial Holdings summary

As found previously, just over half of IPF customers hold a bank account

1234 1234 1234 1234

BANK

Mr Smith

Credit card and savings account ownership has fallen slightly since April 2013

ASU insurance is the only product(s) which has seen an increase in ownership levels over the past six months

The proportion of Romanians and Mexicans with retirement plans in place has improved since we last asked

Use of Credit Services

All

Czech Rep

Hungary

Mexico

Poland

Romania

Slovakia

23%

20%

13%

30%

22%

18%

28%

16%

19%

26%

9%

19%

13%

11%

36%

35%

46%

37%

32%

44%

28%

20%

20%

12%

23%

20%

21%

26%

5%

5%

3%

2%

7%

4%

7%

Not sure Impossible Difficult Quite easy Very easy

How easy do you think it would be for you to borrow [local currency] from a mainstream bank or lender? Base: All Nov’13 (11,472), CZ (3,887), HU (3,457), MX (478), PL (1,794), RO (837), SK (1,019)

IPF customers are more confident now that they could borrow money from a mainstream bank or lender than they were six months ago• This trend is most reflected in Mexico and Poland, although Hungary is experiencing a reversal with

more saying it would be impossible• Slovakians are the group most confident that they could attain credit, although less so than April 2013


Unexpected costs

Housing costs

Purchase of household appliances

Healthcare

Education

Food

Purchase of electrical devices

Purchase of clothes and shoes

Entertainment, hobbies

Jewellery

Other

Would not take loan for any of these

47%

28%

27%

26%

21%

17%

13%

9%

6%

1%

10%

9%

44%

25%

24%

23%

17%

14%

10%

9%

4%

1%

7%

11%

Nov'13Apr'13

Would you consider taking a loan for the following? Choose as many as apply.Base: All Apr’13 (9,960) | Nov’13 (11,472)

More individuals state that they would not be prepared to take a loan when compared with April 2013• Preparedness to take a loan has increased for only one reason (purchase of clothes/shoes) and this is only marginal• All other items (except unexpected costs) have seen a fall


Unexpected costs


Housing costs

Healthcare


Education

Food



Jewellery

Other


54%

33%

25%

25%

14%

14%

9%

4%

4%

1%

5%

10%

55%

35%

26%

22%

14%

14%

9%

4%

4%

1%

5%

11%

Nov'13Apr'13

Would you consider taking a loan for the following? Choose as many as apply.Base: All Czech Rep Apr’13 (1,796) | Nov’13 (3,887)

Czechs are significantly less likely to take a loan for healthcare reasons than previously• Women are noticeably more prepared to take loans for unexpected costs or household appliances• Somewhat surprisingly, likelihood of taking loans for healthcare decrease with age


Unexpected costs

Housing costs


Healthcare


Food

Education



Jewellery

Other


48%

29%

19%

13%

9%

9%

7%

5%

4%

0%

5%

24%

52%

27%

19%

14%

11%

10%

9%

6%

2%

0%

5%

20%

Nov'13Apr'13

Would you consider taking a loan for the following? Choose as many as apply.Base: All Hungary Apr’13 (4,835) | Nov’13 (3,457)

There has been a significant increase in Hungarians’ preparedness to take out loans to subsidise education costs• This particularly applies to those aged 18-24 (16%) compared to all other age groups• Hungarians have increased their willingness to take loans for unexpected costs


Unexpected costs

Healthcare

Education

Housing costs

Food





Jewellery

Other


53%

37%

41%

28%

28%

13%

9%

5%

9%

1%

12%

7%

37%

25%

23%

17%

16%

8%

7%

1%

1%

0%

12%

14%

Nov'13Apr'13

Would you consider taking a loan for the following? Choose as many as apply.Base: All Mexico Apr’13 (542) | Nov’13 (478)

Mexico has seen a 100% increase in the proportion of individuals unprepared to take a loan for any of the listed items• The result of this is a significant decrease for almost all items• Mexican men are significantly more likely than their female counterparts to take a loan for unexpected costs


Unexpected costs


Housing costs

Healthcare

Food



Education


Jewellery

Other


43%

34%

29%

23%

18%

18%

13%

12%

7%

1%

12%

7%

44%

33%

27%

24%

19%

15%

15%

15%

6%

1%

6%

8%

Nov'13Apr'13

Would you consider taking a loan for the following? Choose as many as apply.Base: All Poland Apr’13 (915) | Nov’13 (1,794)

Overall, very little has changed among Poles in terms of what they are prepared to take a loan to pay for• Polish women are significantly more likely to take loans to pay for housing costs• Men prefer the idea of taking loans in order to pay for electrical devices (non-household appliances)


Unexpected costs


Housing costs

Healthcare

Education


Food



Jewellery

Other


37%

35%

28%

21%

22%

12%

8%

7%

4%

1%

6%

8%

36%

31%

30%

21%

20%

14%

7%

7%

6%

1%

4%

9%

Nov'13Apr'13

Would you consider taking a loan for the following? Choose as many as apply.Base: All Apr’13 (1,478) | Nov’13 (837)

Romanian IPF customers maintain the attitudes towards loans, and what they will use them for, that they first displayed in April 2013• Women are significantly more likely than men to take loans for housing and healthcare costs• General preparedness to take a loan for these items decreases with age


Unexpected costs

Housing costs


Healthcare

Food


Education



Jewellery

Other


57%

26%

33%

26%

13%

14%

11%

7%

8%

1%

7%

11%

58%

30%

25%

23%

14%

13%

11%

7%

4%

1%

4%

11%

Nov'13Apr'13

Would you consider taking a loan for the following? Choose as many as apply.Base: All Apr’13 (394) | Nov’13 (1,019)

Compared to six months ago, significantly fewer Slovakians are prepared to take loans for household appliances and entertainment• In a reversal of trends seen in other markets, younger respondents are more likely to claim a

blanket ban on taking out loans


Please indicate whether you agree of disagree with each of the following statements… Base: All (11,472)

I think carefully before I borrow

I tend to use credit on impulse

I only use credit in an emergency

I use credit regularly just as part of the way I manage my budget

I usually borrow as much as the lender will allow me

I never borrow more than I know I can repay without difficulty

I can comfortably afford my credit repayments

92%

17%

87%

34%

37%

82%

72%

8%

83%

14%

66%

63%

18%

28%

Agree Disagree

A smaller proportion of individuals agree that they think carefully before borrowing in comparison with six months ago • This is in tandem with an increase in people prepared to use credit on impulse• More people are looking to borrow as much as the lender will give them


Please indicate whether you agree of disagree with each of the following statements… Base: All Czech Rep (3,887)








92%

19%

89%

33%

32%

89%

72%

8%

81%

11%

67%

68%

11%

28%

Agree Disagree

Czech Rep has seen a positive movement of respondents being able to afford credit repayments and never borrowing too much• They also state that fewer people are using credit regularly as part of their budget management• Men are significantly more likely to be able to afford their credit repayments


Please indicate whether you agree of disagree with each of the following statements… Base: All Hungary (3,457)








94%

13%

86%

32%

36%

84%

44%

6%

87%

14%

68%

64%

16%

56%

Agree Disagree

A higher proportion of Hungarians agree that they can comfortably afford their credit repayments when compared with previous findings• Women are more likely to use credit only in emergencies while men are more impulsive• Using credit as part of budget management increases with age


Please indicate whether you agree of disagree with each of the following statements… Base: All Mexico (478)








94%

18%

88%

37%

22%

70%

89%

6%

82%

12%

63%

78%

30%

11%

Agree Disagree

Evidence points to Mexicans moving towards less responsible borrowing• There is more impulsive borrowing and less concern over being able to afford repayments• 18-24s are particularly likely to borrow without checking they can afford to pay it back


Please indicate whether you agree of disagree with each of the following statements… Base: All Poland (1,794)








91%

17%

84%

29%

46%

84%

72%

9%

83%

16%

71%

54%

16%

28%

Agree Disagree

Results in Poland very much reflect those found six months ago, with nine in ten thinking carefully before borrowing• Women are more likely to use credit in an emergency, while men claim to use it as a regular

means of supplementing their budget


Please indicate whether you agree of disagree with each of the following statements… Base: All Romania (837)








92%

12%

89%

46%

39%

91%

62%

8%

88%

11%

54%

61%

9%

38%

Agree Disagree

There has been very little movement in attitudes toward credit in Romania, with the vast majority only using credit in an emergency• Women are significantly more likely to borrow as much as a lender will give them


Please indicate whether you agree of disagree with each of the following statements… Base: All Slovakia (1,019)








93%

16%

86%

35%

60%

90%

59%

7%

84%

14%

65%

40%

10%

41%

Agree Disagree

There has not been much change in the Slovakian attitude towards use of credit in the past six months• Men and 18-24s are the groups most likely to use credit impulsively• Older people are less confident in their ability to afford their repayments


If I could afford my repayments

How much I will have to repay in total

Whether I really needed the money

How long I will have to make the repayments

Ease of applying

The reputation of the provider

The APR

What family/friends will think of me taking out credit

0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% 55% 60% 65% 70% 75% 80%

SlovakiaRomaniaPolandMexicoHungaryCzech RepAll

The size of repayment and whether they could afford it were the two key concerns for IPF customers before deciding to take credit• Hungarians were most concerned about whether they really needed the money, suggesting the

credit was perhaps non-essential

What factors did you consider when deciding to take out credit? Choose as many as apply.Base: All Nov’13 (11,472), CZ (3,887), HU (3,457), MX (478), PL (1,794), RO (837), SK (1,019)


Use of credit services summary

There is increased confidence among IPF

customers that they would be able to borrow from a bank/mainstream lender now

Despite this, fewer want to take a loan now than they did in April 2013

Only purchasing clothes and shoes has increased as a motivation for taking a loan

More people are prepared to use

credit on impulse than was found previously, with fewer putting thought into whether they should borrow

Size of repayment and ability to afford it are the

key considerations before taking a loan

Standard of Living

Much more cautious

A little more cautious

About the same as usual

Spending a little more freely

Spending a lot more freely

All 45% 26% 17% 6% 2%

Czech Rep 34% 27% 27% 5% 5%

Hungary 62% 25% 7% 2% 0%

Mexico 59% 16% 12% 7% 2%

Poland 38% 36% 19% 4% 1%

Romania 38% 19% 21% 12% 8%

Slovakia 31% 22% 28% 8% 2%

Thinking about day-to-day spending over the last twelve months, which of the following would apply to how you have approached spending in current economic conditions? Base: All Nov’13 (11,472), CZ (3,887), HU (3,457), MX (478), PL (1,794), RO (837), SK (1,019)

Fewer IPF customers are spending as cautiously as six months ago, with the majority of those now spending about the same as usual • Older respondents are likely to be more cautious spenders than their younger compatriots• Cautious spending is significantly higher among Hungarians than other nationalities

Standard of Living

You have said that you have been more cautious in your spending in the last 12 months. Which if any of the following have you cut back on in order to decrease your level of day-to-day spending over the last twelve months? Please select all that apply. Base: All whose spending is more cautious Apr’13 (7,847) | Nov’13 (7,703)

Of IPF European customers who have reduced their spending, there has been an increase in those cutting back on buying quality food• Somewhat positively, fewer people are reducing their spending on healthcare and education• Spending on other items remains largely unchanged

Socialising

Consumer/household goods

Holidays

Telephone

Quality food

Transport

Heating

Healthcare expenditure

Education expenditure

70%

68%

63%

45%

38%

31%

29%

15%

11%

69%

68%

63%

44%

44%

32%

28%

14%

9%

Nov'13Apr'13

Standard of Living

You have said that you have been more cautious in your spending in the last 12 months. Which if any of the following have you cut back on in order to decrease your level of day-to-day spending over the last twelve months? Please select all that apply. Base: All whose spending is more cautious Czech Rep Apr’13 (1,176) | Nov’13 (2,353)

Significantly fewer Czechs are reducing their spending on telephones when compared with data from April 2013• Women (71%) are significantly more likely to reduce spending on consumer/household goods than men (63%)• Worryingly, the older generations are more likely to cut down on their heating expenditure


Holidays

Socialising

Telephone

Quality food

Transport

Heating



68%

64%

68%

52%

38%

27%

26%

10%

9%

67%

67%

67%

45%

35%

26%

25%

11%

10%

Nov'13Apr'13

Standard of Living

You have said that you have been more cautious in your spending in the last 12 months. Which if any of the following have you cut back on in order to decrease your level of day-to-day spending over the last twelve months? Please select all that apply. Base: All whose spending is more cautious Hungary Apr’13 (4,384) | Nov’13 (3,028)

There has been both a reduction in the proportion of Hungarians who are spending more cautiously and a reduction in the items they are reducing spending on• Men are significantly less likely to cut back on consumer goods but more likely to reduce transport spending• Reductions in holiday spending increase with age (18-24s: 41%, 55+: 58%)


Socialising

Quality food

Holidays

Telephone

Heating

Transport



76%

67%

64%

56%

54%

48%

41%

16%

7%

72%

66%

60%

55%

52%

42%

37%

12%

6%

Nov'13Apr'13

Standard of Living

You have said that you have been more cautious in your spending in the last 12 months. Which if any of the following have you cut back on in order to decrease your level of day-to-day spending over the last twelve months? Please select all that apply. Base: All whose spending is more cautious Poland Apr’13 (741) | Nov’13 (1,319)

There have not been any significant changes in the items Poles are prepared to reduce their spending on• However, fewer are prepared to reduce outlay on socialising, consumer goods and holidays• Men are significantly more likely to reduce spending on heating (28% vs. 22% of women)

Socialising


Holidays

Telephone

Quality food

Transport

Heating



74%

67%

65%

42%

41%

30%

26%

12%

11%

71%

63%

61%

40%

37%

33%

25%

13%

10%

Nov'13Apr'13

Standard of Living

You have said that you have been more cautious in your spending in the last 12 months. Which if any of the following have you cut back on in order to decrease your level of day-to-day spending over the last twelve months? Please select all that apply. Base: All whose spending is more cautious Romania Apr’13 (870) | Nov’13 (459)

Consumer goods, holidays and healthcare are three items that Romanians have increasingly reduced their spending on since April• However, education is the only significant change, with fewer cutting back on this• Reductions in healthcare spending increase with age (25-44: 14%, 45+: 26%)


Holidays

Socialising

Quality food

Telephone

Transport

Heating



76%

74%

73%

62%

47%

30%

27%

16%

9%

79%

77%

72%

64%

45%

28%

27%

20%

5%

Nov'13Apr'13

Standard of Living

You have said that you have been more cautious in your spending in the last 12 months. Which if any of the following have you cut back on in order to decrease your level of day-to-day spending over the last twelve months? Please select all that apply. Base: All whose spending is more cautious Slovakia Apr’13 (225) | Nov’13 (544)

Fewer Slovakians are reducing their spending on holidays, socialising and heating, although none of these are significant changes• Women are significantly more likely to reduce their outlay on quality food and socialising


Holidays

Socialising

Telephone

Transport

Quality food

Heating



68%

69%

70%

47%

37%

30%

30%

17%

12%

67%

66%

65%

48%

38%

28%

26%

15%

13%

Nov'13Apr'13

Standard of Living

How do you respond to rising food prices? Please choose up to two responses.Base: All whose spending is more cautious Slovakia Apr’13 (225) | Nov’13 (544)

In most IPF markets, the response to rising food prices is to take extra care to have less food being wasted• However Romanians prefer to save money from other areas of their life to have more to spend on food• The older generations are significantly more likely to buy less food rather than reducing spending

elsewhere

Standard of Living

I take extra care to have less food going to waste

I buy less expensive products

I try to save money from other parts of my life to have more on food

I buy less food

57%

44%

32%

16%

60%

49%

25%

20%

62%

46%

24%

17%

54%

31%

40%

9%

63%

55%

25%

16%

34%

31%

44%

31%

57%

47%

34%

13%

SlovakiaRomaniaPolandMexicoHungaryCzech RepAll

Approximately how much of your total income do you pay on energy bills?Base: All whose spending is more cautious Slovakia Apr’13 (225) | Nov’13 (544)

Three in five IPF customers are spending at least a quarter of their total income on paying energy bills• Hungarians spend the highest proportion, with one in three using half their income on energy• On the contrary, the majority of Poles spend less than a quarter of their income in this way

Standard of Living

14%

18%

25%

43%HalfA thirdA quarterLess than a quar-ter

22%

35%

24%

18%32%

36%

24%

8%

All

Czech Rep Hungary Mexico

Poland Romania Slovakia

8%10%

20%62%

23%

28%28%

21%

7%10%

31%

52%

18%

24%

30%

29%

14% 10% 9% 5% 6% 4%

23% 19%9% 8% 12% 8%

22%13%

20% 23% 25%39% 38% 46% 8%

5% 23% 25% 18% 24%

18% 35%

50% 49% 47%

47% 50%44%

48%

42%

53% 55%50%

55% 40%

41%

15% 16% 16%7% 5% 6%

20%33%

12% 10%17%

11%17%

10%

2% 1% 3% 1% 1% 0% 1% 1% 3% 2% 2% 1% 4% 1%

Very easy

Quite easy

Difficult

Impossible

Not sure

All Czech Rep Hungary Mexico Poland Romania Slovakia

If you were to face an emergency or an unexpected bill or expense how easy or difficult would it be for you to find -amount- without borrowing? How easy or difficult would you find it to save -amount- for a major purchase of something that you needed? Base: All Nov’13 (11,472), CZ (3,887), HU (3,457), MX (478), PL (1,794), RO (837), SK (1,019)

Living

Standards

IPF customers are less certain about whether they would be able to either save or find money for unexpected expenses than six months ago• Hungarians are more likely to believe they would be able to save money compared to their responses in April 2013• Mexicans are far less certain about the situation and particularly their ability to find money without borrowing

Standard of Living

Half of people have been asked by family or friends for financial help in the past six months• This pattern is fairly consistent across the markets, with Hungary having the highest level (58%)• 18-24s (61%) and singles without children (56%) are the groups most likely to be asked for help

Has anyone of your family or friends asked you for financial help in the last 6 months?Base: All Nov’13 (11,472), CZ (3,887), HU (3,457), MX (478), PL (1,794), RO (837), SK (1,019)

Standard of Living

52%41%

7%

YesNoRather not say

50%39%

10%

52%43%

5%

58%33%

9%

55%38%

7%

48%45%

6%

53%37%

10%

All

Czech Rep Hungary Mexico

Poland Romania Slovakia

Poles are the IPF customer group most likely to be satisfied with their overall standard of living, closely followed by Czechs

All

Czech Rep

Hungary

Poland

Romania

Slovakia

7%

7%

10%

7%

7%

8%

19%

21%

18%

17%

24%

20%

37%

32%

60%

34%

36%

33%

30%

36%

7%

35%

28%

33%

4%

3%

1%

5%

3%

3%

2%

1%

4%

2%

2%

3%

Very dissatisfied Quite dissatisfied Neither satisfied nor dissatisfied Quite satisfied Very satisfied Not sure

Generally, how satisfied are you with the overall standard of living of your household? Base: All Nov’13 (11,472), CZ (3,887), HU (3,457), PL (1,794), RO (837), SK (1,019)

• Romanians claim to be the least satisfied, although this is driven mostly by those aged 45+ • Overall, men (37%) are significantly more likely than women (31%) to be satisfied

Economic Outlook

Generally, how satisfied are you with the overall standard of living of your household? Base: All in Czech Republic April (1,796) Nov (3,887)

Satisfaction with standard of living has increased significantly among Czech in the past six months• Men are clearly more of a factor in this movement than women• 25-34 year-olds are also a lot more satisfied that they had been previously asked in April


9% 7% 8% 6% 10% 7% 10% 6% 7% 6% 7% 6% 9% 8% 12% 8%

25%21% 22%

19%

27%23%

23%20%

24%21% 22% 20%

24% 22%

31%

23%

30%32% 31%

29%

29%34%

21%28%

32%29%

32% 35%30% 35%

31%

31%

33% 36% 34%40%

31% 32%

39% 38%

33%38%

35% 35% 35% 33%24%

35%

3% 3% 4% 5% 2% 2%4% 8% 4% 4% 3% 3% 2% 1% 2% 2%

Very dissatisfied Quite dissatisfied Neither satisfied nor dissatisfied Quite satisfied Very satisfied Not sureTotal Male Female 18-24 25-34 35-44 45-54 55+

Economic Outlook

Generally, how satisfied are you with the overall standard of living of your household? Base: All in Hungary April (4,835) Nov (3,457)

Hungary has seen a move to indifference from dissatisfaction

• This is apparent across both genders and all age groups, although men remain slightly more positive than women as was found in April 2013


Economic Outlook


12% 10% 12% 11% 12% 9% 12% 15% 10% 7% 9% 9% 13% 9% 14% 11%

23%18%

23%20% 23%

17%

26%12% 21%

17%20% 15%

24%

18%

25%22%

55%60%

54%57%

56%62%

51%

59%59%

65%61%

62%

53%61%

51%55%

6% 7% 7% 7% 6% 6% 6% 10% 6% 6% 6%8% 5% 6% 7% 6%

1% 1% 1% 2% 1% 1% 3% 2% 1% 2% 1% 1% 1% 1% 1% 1%


Generally, how satisfied are you with the overall standard of living of your household? Base: All in Poland April (915) Nov (1,794)

The proportion of Polish IPF customers who claim to be very satisfied with their standard of living has increased since April 2013• Men and those aged 25-34 are significantly more satisfied than they were six months ago


Economic Outlook

Apr Nov Apr Nov Apr Nov Apr Nov Apr Nov Apr Nov Apr Nov Apr Nov7% 7% 6% 6% 8% 7% 3% 1% 4% 6% 6% 7% 7% 9% 13% 8%

20% 17% 20%15%

19% 18%17%

13%

22%12%

18% 18% 19%20%

20%20%

35%34% 32%

33%

38%35%

29%32%

35%

30%

33% 36% 36%34%

39%37%

34%35% 37%

37%

31%34%

44%

38%

32%

42%

38% 34% 33% 32%27%

32%

3% 5% 4% 7%3% 3% 6%

13%4% 7%

4% 4% 4% 3% 0%2%


Generally, how satisfied are you with the overall standard of living of your household? Base: All in Romania April (1,478) Nov (837)

The outlook of Romanians remains stable with one in three still dissatisfied with the standard of living they have• 18-24s have demonstrated a significant fall in satisfaction with life since April 2013• Contrarily, the over 55s are notably less dissatisfied with life


Economic Outlook


8% 7% 8% 7% 8% 7% 6% 3% 7% 5%11% 8% 6% 9% 7% 7%

25% 24% 24% 24% 26% 25%17% 23%

22% 22%

22%23% 26% 26% 33%

27%

35% 36% 34% 36%35% 35%

37%39% 37% 37%

33% 38% 37% 34%33%

33%

28% 28% 28% 29% 28% 27%35%

29% 29% 32% 30% 28% 27% 29% 25%24%

3% 3% 4% 3% 2% 2% 5% 6% 4% 3% 3% 3% 2% 2% 2%3%


Generally, how satisfied are you with the overall standard of living of your household? Base: All in Slovakia April (394) Nov (1,019)

Overall, Slovakians are slightly less positive about their standard of living than they were six months ago• Those aged 45-54 are significantly less satisfied than they were in April 2013


Economic Outlook

Apr Nov Apr Nov Apr Nov Apr Nov Apr Nov Apr Nov Apr Nov Apr Nov6% 8% 6% 8% 6% 8% 3% 6% 5% 8% 8% 6% 8% 10% 6% 10%

20% 20%17% 18% 23% 22%

21% 16%13%

14%19%

18%21%

25% 29%28%

33% 33%31% 30%

34% 35%40% 40%

41% 38%36%

34%17%

28% 30% 27%

34% 33%36% 37%

33% 30%26% 32% 33% 35%

34%35%

50%

32% 26% 30%

5% 3% 8% 4% 3% 2%8%

5% 6% 4% 2%3%

2% 3% 7% 1%


Standard of living summaryWhilst they haven’t thrown caution to the wind, fewer people are spending as carefully as they were six months ago

Living

Standards

For those who are cutting back, there has been an

increase in people moving to lower-quality food in an attempt to reduce

outgoingsThe response to rising food prices has

been individuals taking more care not to waste food

For the majority, at least a quarter of total income is

going towards energy bills

Half of people have been asked for financial help by family/friends in the past six months

One in three are satisfied with their standard of living

Further Research

Potential subjects for revisiting

• What are the elements that drive/impede trust in the financial sector? Are the feelings of IPF customers reflective of the general populations of their respective markets?

• There has been an improvement in retirement planning, but what plans are people making and how successful will they be in supporting financial stability in retirement?

• What are the cut-off points for people taking credit? When will people say repayments are too high?

• How much of a factor is seasonality in the level of change in preparedness to spend money? Does the run-up to Xmas affect people’s willingness to spend more freely?

• People are often being asked for financial support by family/friends, but are they giving it? How much are they giving and what are the repayment terms they agree? Are they having to borrow themselves in order to support others?

Leo Brownstein, YouGov Financial Services

[email protected] | 020 7012 6013

Contact

international personal finance financial inclusion and wellbeing report

Documents

customer book10

customer database2

ipf panel

ipfs customer base

international markets

partipf customers

weighting process

marketlevel weightingmale46