Financial exclusion in Spain Sara Carreño Iglesias Andrés Fernández Rodríguez Andrea Rodríguez García

Index 1.Background of Spain 2.Level of financial exclusion 3.Causes and consequences 4.Government role 5.Institutions 6.Alternative way to finance projects 7.Caja España y Montes de Piedad 8.Conclusions

1. Background of Spain

Madrid Mariano Rajoy King Juan Carlos I Population 46,704,314 inhabitants

GDP $1,414 trillions Unemployment25,9%26,3% Males25,1%25,9% Females26,8% Under 25 years54,6%55,7% España: Paro Deficit Million €% PIB €-7,10% €-10,60%

Poverty in Spain 21,6% under the poverty line Poverty line Families = 14,000 €Individuals = 7,000€

2. Level of financial exclusion

Before 2007… Since 2008, near 10,500 bank branches have close in Spain The most affected provinces are: Barcelona (16,454 inhabitants) Tarragona (14,258 inhabitants) Caceres (14,229 inhabitants) Madrid (11,319 inhabitants) Castilla and León  the 75% of its municipalities 353,836 inhabitants = the 13.9% of the region’s total population

As a solution… Internet and telephone banking E-commerce it is not very popular Is essential that people have access to information and communications technology to prevent their financial exclusion

3. Causes and consequences

Causes… arising from the supply side The exclusion via prices. Commercial exclusion. The complexity of options The geographical access. started by the demand part The exclusion via conditions. The fear of losing financial control. The self-exclusion. Cultural and religion reasons. The preference of alternative suppliers

… and consequences Social Depend on status and life experience of the people Not well seen to paid big amounts of money in cash Financial The access difficulties Incomes through their bank account payment of bills gets costly

4. Government role

-As a facilitator: an understanding of the problem providing positive incentives to encourage the changes in the banking system to promote financial inclusion a support of market initiatives contributing directly to the provision of financial services

- As a legislator: Direct legislation every citizen should have access to specific basic transaction banking services Indirect regulation remove obstacles that fortify financial exclusion. Positives incentives innovations in the banking system to work for financial inclusion.

Local authorities: How local authorities can help against financial exclusion? Giving economic aid to schools, retired people… Build their own financial inclusion strategy Working in partnership and support the development and growth of credit unions services Developing as many as possible ideas in order to contribute together with national government

5.Institutions

6. Alternative way to finance projects

is the collection of finance from backers—the "crowd"—to fund an initiative and usually occurs on Internet platforms. The initiative could be a nonprofit campaign, a political campaign, a charitable campaign, a commercial campaign or a financing campaign for a startup company. Crowdfunding

The Cosmonaut The Cosmonaut is a Spanish science fiction film, released in May It is one of the best known cases of the use of crowdfunding in our country. Producer from just 2 € and receive instead a welcome pack, a producer certificate, entry into a drawing for an authentic costume cosmonaut and your name in the credits.” €

Ademar Club Balonmano Ademar León is a Spanish handball team founded in our city, León. The team plays in Liga ASOBAL and Velux EHF Champions League. They offered : 5 € = thanks and post tweet 20 € = video with the best moments 30 € = 35 € = VIP tickets 50 € = the name in the stadium 100 € = End of Season Dinner 150 € = the name on the shirt of a player 500 € = clinic with coaches 600 € = play a game: fans vs official team

7. Caja España y Montes de Piedad

These organizations are a “peculiarity” of the Spanish financial systems that fight against poverty and financial exclusion. Objective: get loans to families with emergency needs, giving the most favorable conditions possible.

8. Conclusions