Financial exclusion In Poland Katowice,

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

 Area 312,679 km2 (70th)  Population (34th)  PPP -Total $ 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

 Below 60 % of Polish population over 15 year old had a bank account

 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 Malta Luxemburg Portugal Spain Slovenia Cyprus Czech Republic Slovakia Lithuania Poland Finland Denmark Sweden Belgium France UK Estonia Germany Grece Irland Holand - 94

 ¼ of Polish people still have no access to financial services Why people are not willing to be active?  It is not necessary for them  They prefer to keep money in cash  They don’t have enough money to invest  The 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 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 factors Number of countries in which there was identified financial exclusion social factors Technical loop10/26 changes in job sector8/26 injustice in income8/26 market liberalisation, paying less attention to marginal market segments6/26 market liberalisation, dissapearing of institution for people of low income5/26 social help5/26 social changes4/26 money loundering3/26 monetary policy3/26 demographic changes - young people2/26 demographic changes - migrations2/26 supply factors Risk evaluation8/26 marketing8/26 geographic access7/26 product design7/26 service providing7/27 complex of choice7/28 price4/26 type of product1/26 demand factors cost related problems8/26 belief that it is not for poor/low selfestime8/26 fear of loosing financial control7/26 lack of trust to service providers7/26 alternative choices, cultural factors4/26 religion4/26 bad experiences1/26

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 members Loans (in thousand zł.) Years Number of branches Number members Loans (in thousand zł.)