Assessing financial inclusion in Portugal from the central bank's … · 2017. 4. 21. · 2 •...

Assessing financial inclusion in Portugal from the central bank’s perspective

João Cadete de Matos

Director ● Statistics Department

International Statistical Institute Regional Statistics Conference

Bali, Indonesia | 22 – 24 March 2017

2 • Assessing financial inclusion in Portugal from the central bank’s perspectiveMarch 2017

Contents

1. Motivation

2. The evolution of the provision of financial services inPortugal

3. The role of the Banco de Portugal as a provider offinancial services

4. Measuring financial inclusion in Portugal

5. Conclusions


Contents

3 • March 2017

Motivation

• There are still more than two billion adults that do not have access to formalfinancial services (ATISG*, 2010)


1. Motivation


Financial inclusion – the ability of individuals or enterprises to obtain formal financial services appropriate to their needs

Major challenge for central banks and policy

makers worldwide

*ATISG: Access through Innovation Sub-Group of the G-20 Financial Inclusion Experts Group

4 • March 2017

How can the Banco de Portugal help policy-makers in addressing this challenge?

• The Banco de Portugal publishes statistics on:



1. Motivation

5 • March 2017

How can the Banco de Portugal help policy-makers in addressing this challenge?

• The Banco de Portugal publishes statistics on:


These data can be used to monitor the provision of financial services in Portugal


1. Motivation

6 • March 2017

The evolution of the provision of financial services in Portugal

0

200

400

600

800

1.000

1.200

1.400

1.600

1.800

2011 2012 2013 2014 2015

ATM demographic coverage(Number of ATMs per million inhabitants)

European Union Portugal



2. The evolution of the provision of financial services in Portugal

7 • March 2017

0

200

400

600

800

1.000

1.200

1.400

1.600

1.800

ATM demographic coverage in 2015(Number of ATMs per million inhabitants)





8 • March 2017

And why is that? … The role of MULTIBANCO

• A sophisticated network shared by every bank operating in the economy that fullyintegrates ATMs and EFTPOS

• In addition to cash operations, it offers a wide range of more than 60 differentservices (e.g., money transfers, payments for utilities bills, payments to the State andthe Social Security, mobile phone top-ups, transport ticketing, event booking andticketing, …)


“Portugal’s ATMs are among the most high functional of Western Europe. A wide range of unusual facilities are also available (…). ATMs are also advanced in terms of hardware features.”

RETAIL BANKING RESEARCH BULLETIN

“Portugal’s MULTIBANCO system is acknowledged to be one of the most sophisticated and comprehensive in the world.“

EUROBUSINESS

“... the example of the Portuguese system, SIBS, suggests that greater innovation may arise out ofa system where all the processing for a number of payment methods is carried out centrally.”

THE OFFICE OF FAIR TRADING



9 • March 2017

0

5.000

10.000

15.000

20.000

25.000

30.000

2011 2012 2013 2014 2015

POS demographic coverage(thousands per million inhabitants)

European Union Portugal





10 • March 2017

0

50

100

150

200

250

300

Luxe

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Un

ited

Kin

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Bu

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man

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Number of institutions offering payment servicesper million inhabitant in 2015





11 • March 2017

0

100

200

300

400

500

600

700

800

2012 2013 2014 2015

Number of offices of institutions offering payment services per million inhabitants

Euro area Portugal





12 • March 2017

0

200

400

600

800

1.000

1.200

1.400

Po

lan

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Cyp

rus

Lith

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Bel

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Ital

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Spai

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Au

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Euro

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Latv

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Ger

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Cro

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Irel

and

Gre

ece

Fin

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Den

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Number of offices of institutions offering payment servicesper million inhabitant in 2015





13 • March 2017

50%

62%68% 70%

5%

9%

11%14%

12%

12%

14%

12%

33%

17%

7%4%0% 0% 0% 0%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2000 2005 2010 2015

Transactions per type of payment service: Portugal 2000-2015

Card payments Credit transfers Direct debits Cheques Others





14 • March 2017


3. The role of the Banco de Portugal as a provider of financial services


The role of the Banco de Portugal as a provider offinancial services

Banking conduct supervision

• Advertising

• Complaints

Bank Costumer Portalclientebancario.bportugal.pt

15 • March 2017 Assessing financial inclusion in Portugal from the central bank’s perspective

The role of the Banco de Portugal as a provider offinancial services

The Central Credit Register (CCR)• Database managed by Banco de Portugal. Registers information supplied by

reporting institutions (institutions that grant loans) concerning the creditliabilities of their clients (individuals and organizations)

• Main purpose: To support credit institutions when evaluating the risk of grantingcredit to the economic agents, allowing them to obtain information on theaggregated indebtedness of their clients or any individual or organization askingfor a loan.

• Data reported include, inter alia: Loans outstanding granted to households andcorporations by type and purpose; potential loans and securitised loans; typeand value of collateral or guarantee; original and residual maturity; creditdefaults and the number of days the loan is past due; country where the loanwas granted




The Portuguese Central Credit Register – some figures



17 • March 2017



Central Credit Register coverage rate(as % of adult population)

Portugal has been leading this ranking

for a long time

The Portuguese Central Credit Register – Some figures

Source: World Bank, Doing Business 2016



The Portuguese CCR – The way forward

2005Bilateral exchange ofcredit data with otherEU CCR (MoU)

2018

New system (on a loan-by-loan basis; AnaCredit)

1978Beginning of CCR (ona debtor-by-debtorbasis)

.




The Portuguese CCR – The way forward

Transmission of information on loans – New CCR (2018)

Statistics Department (new CCR)

Financial Stability Department

Banking Conduct Supervision Department

Banking Prudential Supervision Department

Markets and Reserve Management Department

Credit Institutions

Integrated Management of InformationAnaCredit

Including MIR on loans

CCR (2016)

24 variables

New CCR (2018)

179 variablesPrevious +51, AnaCredit +62, other +42



20 • March 2017




Measuring financial inclusion in Portugal

• To acquire information on the financial attitudes, behaviours and on thelevels of understanding of financial matters by the population, Banco dePortugal conducted a survey on the financial literacy of the Portuguesepopulation


Measuring financial inclusion in Portugal – Results of the survey

11% of the Portuguese population did not have a bank account in 2010





The main reason for not having a bank account was not having enough income to justify it



• For the individuals who have a bank account...


Measuring financial inclusion in Portugal – Results of the survey• For the individuals who have a bank account...



• For the individuals who have a bank account...



• Minimum banking services: An initiative taken by Banco de Portugal topromote financial inclusion



• Minimum banking services accounts have more than tripled since 2013!

9.646

13.884

24.068

34.953

0

5.000

10.000

15.000

20.000

25.000

30.000

35.000

40.000

2013 2014 2015 2016

Evolution of the number of minimum banking services accounts

+44%

+73%

+45%


Conclusions

• Payment statistics are increasingly more relevant in evaluating the degreeof financial inclusion of an economy and, thus, critical for policymakers andcentral banks

• The development of comprehensive central credit registers, such as thePortuguese CCR, are key to foster financial inclusion, by supporting creditinstitutions in the assessment of credit risk

• Central banks also play an important role as conduct supervisors, byadvertising best practices and managing complaints that encourage creditinstitutions to promote financially inclusive actions

• Despite that the current results are encouraging, the challenges aheaddemand that policymakers and central banks keep financial inclusion highin the agenda


5. Conclusions

29 • March 2017

Thank you for your attention!

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