Study uncovers East-West gap in access to bank services

Millions of East Europeans do not have a bank account and live in “financial exclusion”, according to a study presented yesterday (28 May) by the European Commission. But even in the ‘old’ member states, a gap exists between the richer North and the South, it finds.

The study reveals that many European countries have a large percentage of “unbanked” nationals – as people without a bank account are called – with potentially negative social implications.

As a rule, countries with a higher GDP per capita have a very small percentage of unbanked citizens, it notes: less than 1% in Luxembourg, 1% in Belgium, the Netherlands and Denmark and 2% in France and Sweden. On the other hand, the figure stands at 28% in Greece, 17% in Portugal and 16% in Italy. 

For the 12 newer EU members, the highest percentage of unbanked nationals is in Latvia – 48%, followed by Lithuania with 41%, Poland 40%, Hungary 34%, Slovakia 26%, Malta 21%, Cyprus 18%, Czech Republic 17%, Estonia 16% and Slovenia 6%. No data in this category are available for the latest newcomers, Bulgaria and Romania. 

The average for the EU 15 is 7% compared to 34% for the 10 countries who joined the Union in 2004. 

Financial exclusion is tightly linked to social exclusion, the study underpins. It therefore calls on policymakers to consider financial exclusion issues in all courses of action regarding social exclusion or poverty. 

Governments are also considered to have their share of responsibility in promoting banking services inclusion. But the report highlights the gap in national debates to address financial inclusion. 

In half of the countries studied – the United Kingdom, Ireland, France, Belgium, Austria, Italy and Denmark, the debate has been led by various players, including governments. But in the other half of the countries studied – Bulgaria, Lithuania, Poland and Slovakia – a lack of national debate on financial inclusion is reported. 

Commenting on the report, EU Social Affairs Commissioner Vladimir Špidla noted that “the inability to access a bank account can cause further problems for low-income families in getting access to housing, health care and a range of social services”. 

Ensuring that each and every European has access to basic banking services is therefore a key goal for the EU and will form part of the Commission’s renewed social agenda, due to be presented next month, he noted.

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