Financial exclusion

1
Financial exclusion

• Antonio-Claret García
• President of the International Association of
  Social Pledging Credit Establishments

2

• Financial Exclusion
• a growing phenomenon

3
MODERN CONCEPT OF CITIZENSHIP

• Political citizenship
• Civil citizenship
• Social citizenship

4
REASONS FOR THE EXCLUSION

• Closed branches of financial institutions in
  rural or depressed areas
• Inmigration
• Lack of financial products
• High price of financial products
• EFFECT
• Informal economy

5
ACTIONS AGAINST FINANCIAL EXCLUSION

• Make financial institutions accesible to all the
  people.
• Employees have to be on the level of the
  customers.
• Appropiate financial instruments.

6
Tools against financial exclusion

• Collateral loans
• Micro-loans
• Current account or savings account.

7
Collateral Loans

• Since 17th century
• Used for fight against usury

• Channelled through the Pawn banks
• Exported to several countries in Africa, América
  and Europe.
• CajaGranada Pawn Bank
• - Increase in business in 2004 5,5
• - Collateral Loans 5.000.000 euros
• - New clients Inmigrants

8
MICRO-LOANS

• Based on the confidence in the person.
• Support to a micro-business project.
• Invented by Muhammad Yunus
• Grameen Bank in Bangladesh 99 repayment.
• CajaGranada in Spain
• 150 micro-loans in two years.
• 1.000.000 euros given.
• 95 repayment.
• 67 of micro-loaners are inmigrants
• 70 of micro-loaners are women
• New Grameen Latin Foundation

9
RIGHT TO AN ACCOUNT

• No specific legislation.
• Is the moment for an european legislation for any
  kind of Social Account?
• It should be low cost or even free for people
  below certain incomes level.
• It should be the link between people at risk of
  financial exclusion and financial institutions.

10
SUMARIZE

• The way to combat financial exclusion
• Banking offices geographically diversified
• Accessible to everyone
• European legislation for the right of an account.
• Increase collateral loans and micro-loans.