METODOLOGÍA PARA VALORAR LA ALIMENTACIÓN EL DÍA DE LAS PRUEBAS DE LOS

From the perspective of the EU level, restricted access to basic banking services in its member states could be an obstacle to fulfilling the single market objective, as the use of payment services is essential for customers’ free mobility to work, study or reside in other member states.418 Furthermore, since there are many other services attached to payment accounts, owning a bank account is also of great significance as it fulfils customers’ basic demands, especially in countries of higher bank penetration, which could further promote social and economic inclusion.419

However, the use of payment services in the EU has not yet reached its potential; for example, a 2011 Eurobarometer survey found that one in ten citizens in the EU did not own a bank account.420 According to the European Commission, there are about 30 to 68 million EU citizens who have no bank accounts based on two surveys conducted in 2009 and 2011 respectively.421 The World Bank’s 2012 survey deems this number to be 56 million.422 Although the majority (56%) of people choose not to have an account (eg, less-educated or older people), a significant number of people are refused access to bank accounts by the local banks.423 As the Single Market Act II (2012) states, ‘[A]ccess to payment accounts and other banking services have become essential for participation in economic and social life, but discrimination, for instance on grounds of residence, nationality or low level of resources, does still occur.’424

Generally, there are two groups of people who have been refused access to bank accounts in the EU. The first group includes people with a vulnerable economic status due to, for example, low income, incorrect documentation or bad credit

418 _{Consolidated Versions of the Treaty on European Union and the Treaty on the Functioning of}

the European Union [2010] OJ EU 83/ 01, a rt 45, ‘Freedom of move ment fo r worke rs shall be secured within the Union.’

419

Commission, ‘Single Market Act II: Together for New Growth’ COM (2012) 573 final (Single Market Act II), Key action 12.

420

Commission, ‘Special Eurobarometer 373, Retail Financial Services’ (2012).

421

Co mmission, ‘Impact Assessment, Accompanying the Document, Proposal for a Directive of the European Parlia ment and of the Council on the Co mparability of Fees Related to Pay ment Accounts, Pay ment Account Switching and Access to Payment Accounts with Basic Features’ SWD (2013) 165 final, Annex II, 1.1.1.

422

Asli Demirguc-Kunt and Leora Klapper, ‘Measuring Financial Inclusion, the Global Findex Database, New Data on Accounts and Payments’ (2012).

423

Ibid Annex II, para 1.1.5.

history, while the second group are people of non-residence in the current country.425 Two kinds of consumers are classified here, namely (i) ‘vulnerable’ consumers and (ii) ‘mobile’ consumers.426 The former includes people who are vulnerable because of their mental, physical or psychological infirmity, age or credulity, and low income, while the latter refers to consumers who move across borders for various reasons, including work, study or retirement.427

The European Commission concludes that there are several reasons for the problem of why EU customers face difficulties in accessing accounts from a more macro perspective:428 they can be grouped into three: (i) member countries’ regulatory framework, (ii) the banking industry and (iii) the customers themselves.

2.4.1.1 Restrictive regulatory framework in member states

Owing to the significance of payment accounts, several member states are already aware of regulation in this area. However, the levels of regulatory framework in EU member states are different, ranging from mandatory regulation429 and voluntary industry code430 to no framework in place. In the UK, for example, there was no mandatory regulation in place prior to 2015. Since there is no unified regulatory framework across different countries, compliance costs of banks with varied regulation are also increased, which are finally transferred to customers.431 Moreover, some member states also have discriminatory rules on basic bank accounts; for example, in Belgium the right to access basic bank accounts is confined to its residents.432 Similar rules can be found in the Netherlands, where the conditions of opening basic accounts include a permanent residence or an address with a recognised aid agency in the Netherlands.433

425 _{Demirguc-Kunt and Klapper (n 422).} 426

Ibid Annex II, para 1.1.6.

427

Ibid.

428

Impact Assessment of the Directive (n 421), Annex II, 1.2.

429

These countries include Belgium, France, Finland and Denmark. See Impact Assessment (n 421), para 3.2.

430

Ibid. Member states that only have voluntary industry codes include the UK and Germany.

431

Ibid Annex II, para 1.2.1.

432

Commission, ‘National Measures and Practices as Regards Access to Basic Payment Accounts Follow-up to the Recommendation of 18 July 2011 on Access to a Basic Payment Account’ SWD (2012) 249 final, para 2.1. Belgium.

Moreover, without mandatory regulation, it is less easy for customers to obtain basic payment accounts. Data from the European Commission show that member states with a legal framework in place on this issue have lower levels of financial exclusion than those who only have a self-regulatory framework or those who have no frameworks in place.434 Self-regulation through a voluntary industry code is also criticized as less effective. Without mandatory requirements the industry code may not reach its full effectiveness.435

2.4.1.2 Banking industry’s reluctance to provide information and service

The summary of responses to the European Commission’s consultation on bank accounts published in July 2012 relates to customers’ limited access to bank accounts due to insufficient income, poor creditworthiness and unpaid overdrafts, among other reasons for rejected applications for bank accounts.436 Banks are criticized for ‘picking up customers’ based on customers’ different margins of profitability. Some banking industry associations also admitted that those factors were reasons for financial exclusion, although most respondents in the financial sector maintained that there were no obstacles to consumers’ access to bank accounts.437

2.4.1.3 Customers’ low awareness and confidence levels

From the demand side, customers’ low awareness of the availability of basic bank accounts also blocks them from being financially included. This unawareness could be partly attributed to the banks’ reluctance to market their basic services because of low profitability, especially in EU member states where banks are obliged to open bank accounts under the regulatory framework. Other reasons include the relatively low financial literacy of the vulnerable group, who may not see the benefits to using banking services. Complex information on banks’ products will cause misconceptions in this case. There are also factors of mistrust of banks and the financial system. The Impact Assessment of the

434

Ibid.

435

FSUG, ‘Financial Services User Group’s (FSUG) Response to th e Consultation on Bank Accounts’ (2012).

436

Commission, ‘Summary of Responses to the Public Consulation on Bank Accounts ’ (2012), para 2.3.1.1.

Recommendation mentions that due to lack of financial education or bad past experiences, people may feel that they cannot control their personal finance using bank accounts (which have an overdraft facility).438