International Personal Finance

International Personal FinanceWave 2 Report

August – October 2012

1. Background/Methodology

2. Economic Outlook

3. Financial Holdings

4. Use of Credit Services

5. Standard of Living

6. Conclusions & Recommendations

Contents

Background/Methodology

1

IPF currently provides consumer credit to 2.5 million customers, across six international markets. The business offering is unique for the markets in which IPF operates.

This project is designed to engage with IPF’s customer base, understand the issues they have and their feelings towards the society in which they live, and how they can be better represented in the political and commercial worlds.

IPF wishes to use this research to enhance its unique position as a mouthpiece for the lower socio-economic demographic amongst key groups of decision-makers.

This was the second wave to be run using the IPF panel with more targeted questioning and the survey opened up to a significantly larger proportion of IPF customers.

Background

Methodology The process was adjusted for this wave in order to invite new registrants

as well as the existing panel

Invitation from IPF to register for the panel

Registration survey

YES Take survey now

NOTake survey later

Reminder to take survey

No response

Complete now

Wave 2 survey

Email invitation from YouGov to

take Wave 2

Call from IPF inviting customer to take part in

Computer Assisted Telephone Interview

(CATI)

Happy to take survey

Refused to take part

IPF customers not previously invited IPF existing panellists IPF customers without email addresses

Provident Communities

Czech Republic

Online completes

1,307

CATI completes

72

Hungary

Online completes

5,066

CATI completes

102

Mexico

Online completes

244

CATI completes

100

Slovakia

Online completes

237

CATI completes

135

Romania

Online completes

2,028

CATI completes

136

Poland

Online completes

1,309

CATI completes

97

Economic Outlook

2

Two in three Provident customers consider the cost of living to be of most concern currently

Cost of living

Loss of your job

Cost of education

Cost of health services

Crime in your neighbourhood

Public service cuts

Other

Not sure

I have no concerns

68%

11%

4%

4%

2%

2%

3%

3%

3%

70%

11%

4%

3%

2%

2%

3%

2%

2%

44%

22%

4%

7%

6%

1%

6%

5%

5%

CATIOnlineAll

Which of these is of most concern to you currently? Base: All (10,833), Online (10,191), CATI (642)

• …however this drops significantly when looking at the CATI respondents

• They are twice as likely to be concerned about losing their job, and the cost of health services

Cost of living is the biggest concern in Czech Republic

Which of these is of most concern to you currently? Base: All in Czech Republic (1,379)

• Younger people are far less concerned about the cost of living but worry more for their job stability

Total

Male

Female

18-24

25-34

35-44

45-54

55+

0.68

0.66

0.69

0.58

0.68

0.65

0.72

0.72

0.13

0.12

0.13

0.23

0.13

0.12

0.14

0.07

0.03

0.02

0.04

0.02

0.03

0.05

0.02

0.01

0.13

0.15

0.12

0.14

0.13

0.14

0.09

0.18

0.03

0.05

0.02

0.03

0.03

0.04

0.03

0.02

Cost of living Loss of job Cost of Education Other No concerns

Four in five Hungarians are concerned over the cost of living, more than any other market

Which of these is of most concern to you currently? Base: All in Hungary (5,168)

• Very few people in Hungary claim to have no concerns

Total

Male

Female

18-24

25-34

35-44

45-54

55+

0.82

0.81

0.82

0.84

0.83

0.82

0.82

0.79

0.04

0.04

0.04

0.04

0.03

0.04

0.05

0.03

0.04

0.03

0.05

0.01

0.04

0.06

0.04

0.01

0.09

0.1

0.08

0.1

0.09

0.07

0.08

0.16

0.01

0.02

0.01

0.01

0.01

0.01

0.01

0.01


In Mexico, crime in the neighbourhood is the single largest concern

Which of these is of most concern to you currently? Base: All in Mexico (344)

• This is perhaps reflective of the current situation with high rates of drug crime

• Concern over job stability is also high in Mexico, but the cost of living is of relatively little worry

Total

Male

Female

18-34

35-44

45+

0.13

0.12

0.13

0.14

0.14

0.11

0.27

0.31

0.24

0.31

0.27

0.3

0.29

0.28

0.29

0.27

0.31

0.28

0.29

0.26

0.33

0.26

0.25

0.3

0.02

0.03

0.01

0.02

0.03

0.01

Cost of living Loss of job Crime in your neighbourhood Other No concerns

Half of Poles worry over the cost of living while a quarter are concerned about the security of their jobs

Which of these is of most concern to you currently? Base: All in Poland (1,406)

• Overall, Poland has the highest percentage of respondents who have no concerns

• Employment uncertainty is most prevalent among 25-34 year olds

Total

Male

Female

18-24

25-34

35-44

45-54

55+

0.49

0.48

0.5

0.49

0.41

0.55

0.51

0.52

0.24

0.26

0.23

0.23

0.33

0.22

0.24

0.13

0.06

0.05

0.07

0.07

0.08

0.07

0.05

0.02

0.15

0.13

0.15

0.14

0.12

0.09

0.14

0.29

0.06

0.08

0.05

0.07

0.06

0.07

0.06

0.04


Romanians are most concerned about the cost of living, and this only increases with age

Which of these is of most concern to you currently? Base: All in Romania (2,164)

• But very few worry about the cost of education, most surprisingly amongst the 18-24 year-olds

Total

Male

Female

18-24

25-34

35-44

45-54

55+

0.6

0.61

0.59

0.61

0.55

0.6

0.64

0.65

0.17

0.13

0.2

0.14

0.2

0.16

0.19

0.06

0.03

0.02

0.03

0

0.03

0.04

0.02

0.02

0.16

0.18

0.16

0.21

0.17

0.16

0.13

0.25

0.04

0.06

0.02

0.04

0.05

0.04

0.02

0.02


Cost of living is of most concern in Slovakia, particularly for those in the 35-44 age group

Which of these is of most concern to you currently? Base: All in Slovakia (372)

• Worries over loss of job consistently increase with age• Women are significantly more likely to be concerned about the cost

of living (66% vs. 57% of men)

Total

Male

Female

18-34

35-44

45+

0.62

0.57

0.66

0.58

0.65

0.61

0.18

0.17

0.19

0.16

0.18

0.2

0.01

0.02

0.01

0

0.02

0.01

0.16

0.19

0.12

0.21

0.11

0.15

0.03

0.05

0.02

0.05

0.04

0.03


The general economic expectation is low, with three in five expecting things to get worse in the next 12 months

Thinking of the next twelve months, do you expect the economy in your country to get better or worse? Base: All (10,833), CZ (1,379), HU (5,168), MX (344), PL (1,406), RO (2,164), SK (372)

• This wave of negativity is notably higher in the more northerly countries, Poland, Czech Rep and Slovakia

• However, there is a fair amount of confidence in the stability of the Mexican economy, with one in three expecting it to remain at the same level

• Romanians are those most likely to expect economic improvement, reflecting the growth in GDP that they are currently experiencing

All

Czech Rep

Hungary

Mexico

Poland

Romania

Slovakia

0.27

0.25

0.31

0.32

0.25

0.19

0.27

0.38

0.39

0.45

0.24

0.32

0.28

0.28

0.22

0.29

0.16

0.16

0.35

0.2

0.38

0.11

0.05

0.07

0.24

0.07

0.25

0.06

0.02

0.02

0.01

0.04

0.01

0.08

0.01

Not sure/Will stay the same A lot worse A little worse A little better A lot better

Overall, there are an equal number of people expecting their household situation to get better or to get worse• Increase in earnings is the main factor anticipated to boost

household income for those expecting improvement• The cost of living is perceived as the key contribution to a

worsening of household financesBetter

Increased earnings

New job

Changed personal circumstances

Family member sending money from abroad

Able to work again

Other

Not sure

32%

53%

28%

24%

7%

6%

10%

6%

Worse

Increased living cost

Reduced income

Job loss in HH

Not able to work

Changed personal circumstances

Family member stopped sending money from abroad

Other

Not sure

34%

81%

38%

21%

10%

8%

7%

6%

2%Thinking now of the financial position of your own household, over the next twelve months, do you think your financial position will get better or worse? You say that you think your financial position will get better/worse, which of these could explain why things will change? Base: All (10,833)

Over half of Mexicans and Romanians expect the financial position of their household to improve in the coming year• This will mainly be driven by an increase in earnings or a change in

job• Increased living costs and job instability are expected to contribute

to household economic decline, particularly in the Czech Republic and Hungary

Thinking now of the financial position of your own household, over the next twelve months, do you think your financial position will get better or worse? You say that you think your financial position will get better/worse, which of these could explain why things will change? Base: All (10,833), CZ (1,379), HU (5,168), MX (344), PL (1,406), RO (2,164), SK (372)

Czech Rep Hungary Mexico Poland Romania Slovakia

Better 22% 24% 55% 31% 53% 34%

Increased hours /earnings 57% 49% 31% 63% 56% 38%

New job 25% 31% 27% 32% 24% 34%

Able to w ork again 7% 6% 7% 7% 6% 7%

Changed personal / family circumstances 28% 17% 33% 30% 27% 22%

Family member sending money from abroad 3% 5% 2% 8% 10% 9%

Other 8% 12% 27% 8% 6% 11%

Not sure 3% 9% 6% 2% 4% 9%

Worse 40% 41% 16% 33% 26% 28%

Reduced income / hours 26% 45% 28% 33% 26% 28%

Job loss/ partner job loss 19% 18% 43% 24% 27% 34%

Not able to w ork 6% 10% 11% 15% 6% 18%

Changed personal / family circumstances 11% 6% 19% 9% 10% 15%

Increased cost of living 80% 84% 35% 81% 77% 64%

Family member stopped sending money from abroad 0% 12% 4% 2% 3% 1%

Other 8% 6% 17% 5% 5% 4%

Not sure 2% 2% 4% 2% 2% 2%

Household economic situation summary

The percentage of Czechs expecting their household financial situation to worsen increases with age, from 62% amongst 18-34s to 81% for the over 55s. This is mostly attributed to the cost of living. Expectation in Romania also trends with age in the same way.

29% of Hungarian men expect improvement compared with only 21% of women. The men are especially confident of a positive shift in their employment circumstances

A similar pattern prevails in Poland (37% of men expecting better situation against 27% of women)

In Mexico, those who are married without children are most positive about their household situation, particularly when compared with single parents and families with children

Of those in Slovakia who expect their situation to decline, the younger are most likely to cite the increased cost of living

Financial Holdings

3

Bank account ownership is noticeably low in Romania and Mexico

Which of these products do you have? Choose as many as apply. Base: All (10,833), CZ (1,379), HU (5,168), MX (344), PL (1,406), RO (2,164), SK (372)

• Motor insurance and retirement savings are most common amongst residents of the Czech Republic and Slovakia

• Half of Poles have life insurance, while Hungary has the highest mortgage uptake

Home

cont

ents

insu

ranc

e

Mot

or in

sura

nce

Bank a

ccou

nt

Savin

gs a

ccou

nt

Mor

tgag

e

Life

insu

ranc

e

Unem

ploy

men

t, sick

ness

or a

ccid

ent in

sura

nce

Long

term

inve

stmen

t

Retire

men

t sav

ings

pla

n

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

All Czech Rep Hungary Mexico Poland Romania Slovakia

*

*Not relevant in Mexico

Just under half of the Czech respondents do not have any cash savings• The average monthly expenditure on repayment of debts is more

than half the average level of savings

Less than 3,000 Koruna

3,000 - 15,000 Koruna

15,001-30,000 Koruna

More than 30,000 Koruna

Not sure

No savings

20%

22%

5%

4%

6%

43%


15,001-30,000 Koruna

30,001-150,000 Koruna


Not sure

No debt

10%

25%

32%

23%

9%

1%


1,500-8,000 Koruna


Not sure

No repayments

8%

64%

22%

5%

1%

Cash savings Total debt Repayments

Do you have any cash savings? If so how much? Thinking now of all your borrowings, which of the following ranges would your total debt fall into? How much do you spend each month on repaying credit and loans? Base: All in Czech Republic (1,379)

Three quarters of Hungarian respondents have no savings

• Two in five have debts greater than 400k forint

Less than 100,000 forint

100,000-300,000 forint

300,000-500,000 forint

More than 500,000 forint

Not sure

No savings

16%

3%

1%

1%

3%

76%


250,000-400,000 forint

400,000-2m forint

More than 2m forint

Not sure

No debt

36%

23%

22%

10%

7%

2%


20,000-100,000 forint

More than 100,000 forint

Not sure

No repayments

24%

63%

7%

4%

2%


Do you have any cash savings? If so how much? Thinking now of all your borrowings, which of the following ranges would your total debt fall into? How much do you spend each month on repaying credit and loans? Base: All in Hungary (5,168)

Very few Polish respondents have savings of more than 2,500 PLN• A third have debts greater than 10k PLN, with only 3% having no

debts at all

Less than 500 zloty

501-2,500 zloty

2,501-5,000 zloty

More than 5,000 zloty

Not sure

No savings

23%

14%

3%

5%

4%

50%

Less than 1,000 zloty

1,001-5,000 zloty

5,001-10,000 zloty

More than 10,000 zloty

Not sure

No debt

11%

35%

17%

28%

6%

3%

Less than 200 zloty

201-700 zloty

More than 700 zloty

Not sure

No repayments

15%

46%

34%

3%

2%


Do you have any cash savings? If so how much? Thinking now of all your borrowings, which of the following ranges would your total debt fall into? How much do you spend each month on repaying credit and loans? Base: All in Poland (1,406)

Debts in Romania appear to fall in the higher brackets of 1,000 or more lei• Three in five are paying more than 250 lei per month in repayments

Less than 100 lei

101-500 lei

501-1,000 lei

More than 1,000 lei

Not sure

No savings

7%

10%

7%

9%

2%

65%

Less than 500 lei

501-1,000 lei

1,001-5,000 lei

More than 5,000 lei

Not sure

No debt

3%

11%

42%

36%

6%

2%

Less than 50 lei

50-250 lei

More than 250 lei

Not sure

No repayments

3%

31%

61%

2%

3%


Do you have any cash savings? If so how much? Thinking now of all your borrowings, which of the following ranges would your total debt fall into? How much do you spend each month on repaying credit and loans? Base: All in Romania (2,164)

Over half of Slovakian respondents have cash savings, higher than any market except the Czech Republic• Debts are typically lower than €5k and over half of repayments are

subsequently less than €300

Less than 150 Euros

150-500 Euros

501-1,000 Euros

More than 1,000 Euros

Not sure

No savings

16%

15%

8%

8%

5%

48%

Less than 500 Euros

501-1,000 Euros

1,001-5,000 Euros

More than 5,000 Euros

Not sure

No debt

23%

22%

27%

19%

6%

2%

Less than 60 Euros

61-300 Euros

More than 300 Euros

Not sure

No repayments

15%

56%

22%

4%

3%


Do you have any cash savings? If so how much? Thinking now of all your borrowings, which of the following ranges would your total debt fall into? How much do you spend each month on repaying credit and loans? Base: All in Slovakia (372)

Financial Holdings summary

In the Czech Republic, levels of debt are highest amongst those aged 25-44; in Hungary it is the older generation who find themselves most in the red

In Poland, debt levels are very similar amongst men and women. Strangely, the employed (full-time workers and the self-employed) have higher debt levels than those out of work

Romania has a rather unorthodox pattern of debt levels rising in line with increasing salaries – this would seem to contradict traditional expectations

There are no results for Mexico as these questions were excluded from the Mexican survey

Use of credit services

4

For the majority of Eastern European customers of IPF, home credit is the most widely used form of credit

Which of these credit products have you used within the last three years? Choose as many as apply. * In Mexico, Bank overdraft and Credit Union loans were replaced with Personal Credit and MicrocreditBase: All (10,833), CZ (1,379), HU (5,168), MX (344), PL (1,406), RO (2,164), SK (372)

• However, in Mexico it is personal credit that is most often used• The older age groups tend to access other forms of credit more

than their younger counterparts

Bank o

verd

raft*

Credi

t car

d

Term

loan

Home

cred

it

Credi

t uni

on lo

ans*

Fore

ign

exch

ange

cred

it

Other

form

of c

redi

t

Perso

nal C

redi

t*

Micr

ocre

dit*

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%


The general perception is that it has become more difficult to get credit in the last few years• This is very apparent in Hungary, where three in four believe it is

now harder to get credit• Only in Slovakia do more than one in five believe it has become

easier

All

Czech Rep

Hungary

Mexico

Poland

Romania

Slovakia

0.1

0.1

0.12

0.08

0.09

0.07

0.18

0.64

0.5

0.74

0.45

0.64

0.57

0.35

0.19

0.32

0.11

0.27

0.21

0.28

0.2

0.07

0.09

0.03

0.19

0.07

0.08

0.28

Not sure More difficult About the same Easier

Would you say that is has become easier or more difficult to get credit in the last two to three years? Base: All (10,833), CZ (1,379), HU (5,168), MX (344), PL (1,406), RO (2,164), SK (372)

Just over half of respondents believe that they can comfortably afford their repayments

Please indicate whether you agree of disagree with each of the following statements… Base: All (10,833)

• A third of people use credit on a regular basis as part of their household budgeting

• The overwhelming majority claim to think carefully before they borrow money

I think carefully before I borrow

I tend to use credit on impulse

I only use credit in an emergency

I use credit regularly just as part of the way I manage my budget

I usually borrow as much as the lender will allow me

I never borrow more than I know I can repay without difficulty

I can comfortably afford my credit repayments

93%

15%

88%

34%

39%

86%

54%

7%

85%

12%

66%

61%

14%

46%

Agree Disagree

Czech respondents claim to be better placed to meet their credit repayments than the average IPF customer

Please indicate whether you agree of disagree with each of the following statements… Base: All in Czech Republic (1,379)

• Single individuals without children are most likely to afford repayments (81%)• Impulsive credit usage seemingly decreases with age (34% of 18-

24s vs. 17% of 55+)








90%

19%

89%

35%

33%

87%

70%

10%

81%

11%

65%

67%

13%

30%

Agree Disagree

Only two in five Hungarians can comfortably afford their repayments

Please indicate whether you agree of disagree with each of the following statements… Base: All in Hungary (5,168)

• This concern increases with age, and is more common amongst women

• Credit usage is not exclusive to unemployed or lower income respondents, but relatively consistent across all levels








95%

13%

89%

31%

39%

84%

38%

5%

87%

11%

69%

61%

16%

62%

Agree Disagree

Mexico has a much greater level of control when it comes to obtaining credit

Please indicate whether you agree of disagree with each of the following statements… Base: All in Mexico (344)

• …Very few borrow the maximum amount they can get, and four in five assess how much they can repay before borrowing

• Women are far more likely to use credit as part of their regular budget (45% vs. 30% of men)








94%

14%

85%

39%

16%

79%

80%

6%

86%

15%

61%

84%

21%

20%

Agree Disagree

Nearly half of Poles usually borrow as much as the lender will give

Please indicate whether you agree of disagree with each of the following statements… Base: All in Poland (1,406)

• But only one in four use credit as part of their regular budget management

• Those aged 25-44 tend to be the group who most consider whether they need credit before borrowing








89%

18%

82%

27%

47%

83%

70%

11%

82%

18%

73%

53%

17%

30%

Agree Disagree

Two-thirds of Romanians can comfortably afford their credit repayments

Please indicate whether you agree of disagree with each of the following statements… Base: All in Romania (2,164)

• This is significantly more common amongst men (69%) compared to women (59%)

• Single individuals without children are far more likely to use credit impulsively








94%

14%

88%

44%

39%

91%

63%

6%

86%

12%

56%

61%

9%

37%

Agree Disagree

A quarter of Slovakians use credit on impulse, higher than any other market

Please indicate whether you agree of disagree with each of the following statements… Base: All in Slovakia (372)

• Three in five borrow as much as the lender will give, but conversely, the same number believe they can comfortably afford the repayments

• 44% of men use credit as part of their budget compared to only 28% of womenI think carefully before I borrow







92%

25%

87%

35%

58%

86%

65%

8%

75%

13%

65%

42%

14%

35%

Agree Disagree

Advice from a consultant is considered the most important aspect when taking out a loan• This is closely followed by product literature in the form of

brochures and websites• Czech & Slovak respondents prefer to take advice from relatives

and friends• Poles use the internet as their most important consideration

What aspects would you consider the most important when taking out a loan? Choose up to three.. Base: All (10,833), CZ (1,379), HU (5,168), MX (344), PL (1,406), RO (2,164), SK (372)

Advice

from

a co

nsul

tant

of th

e le

nder

Produ

ct br

ochu

res d

escr

ibin

g th

e lo

ans

Inte

rnet

Advice

from

rela

tives

/ frie

nds

Adver

tisin

g

Med

ia re

ports

on

the

lend

er/ it

s pro

ducts

Advice

from

an

inde

pend

ent b

roke

r0%

10%

20%

30%

40%

50%

60%

70%


Standard of living

5

Four in five respondents are spending more cautiously than previously• Hungarians have become particularly frugal with nine in ten

spending more cautiously in the last 12 months• The Czech & Slovak respondents have kept their spending the most

stableMuch more

cautiousA little more

cautiousAbout the same

as usualSpending a little

more freelySpending a lot

more freely

All 54% 25% 13% 5% 2%

Czech Rep 32% 29% 24% 8% 5%

Hungary 70% 22% 5% 1% *

Mexico 51% 26% 9% 10% 3%

Poland 38% 40% 16% 4% 1%

Romania 43% 22% 19% 9% 6%

Slovakia 28% 24% 30% 13% 3%

Thinking about day-to-day spending over the last twelve months, which of the following would apply to how you have approached spending in current economic conditions? Base: All (10,833), CZ (1,379), HU (5,168), MX (344), PL (1,406), RO (2,164), SK (372)

Three quarters of respondents have been put off making major purchases in the last 12 months• Hungarians and Mexicans have been particularly put off• Women and the older generation are those more likely to have

steered away from major purchases

…put off making major purchases unless absolutely necessary

…just as likely to make a major purchase as any other year

…more likely to make major purchases this year

Not sure

All Czech Rep Hungary Mexico Poland

76%

15%

4%

5%

And still thinking now about the last twelve months, but this time about spending on major purchases. Which of these best describes your own spending behaviour? Base: All (10,833), CZ (1,379), HU (5,168), MX (344), PL (1,406), RO (2,164), SK (372)

Romania SlovakiaI have been…

67%

24%

6%

3%

83%

11%

2%

4%

81%

6%

7%

5%

67%

23%

5%

5%

73%

15%

7%

5%

61%

20%

9%

10%

The overwhelming majority would find it difficult to find money for an emergency payment or to save for a major purchase• However, a quarter of Mexicans believe they can easily find the

specified sum• Women claim it would be much harder for them to save (45% vs.

30% of men)

5% 4% 6% 3% 3% 3%8% 7% 4% 5% 7% 6%

14%9%

35% 39%28%

45% 44%50%

11% 11%

27% 28% 26%23%

21%35%

52%49%

51%

46% 50%44%

61%57%

58% 57% 53%59% 43%

42%

8% 7%14%

6% 2% 3%

18% 24%

9% 10% 11% 11%20%

12%

Very easy

Quite easy

Difficult

Impossible

Not sureAll Czech Rep Hungary Mexico Poland Romania Slovakia

If you were to face an emergency or an unexpected bill or expense how easy or difficult would it be for you to find -amount- without borrowing? How easy or difficult would you find it to save -amount- for a major purchase of something that you needed? Base: All (10,833), CZ (1,379), HU (5,168), MX (344), PL (1,406), RO (2,164), SK (372)

One in three people are not satisfied with the standard of living in their household• A worryingly low number of Hungarians are happy with their lot,

although more than half are unsure how they feel• Comparatively, almost half of Mexicans are satisfied with their

standard of living

All

Czech Rep

Hungary

Mexico

Poland

Romania

Slovakia

0.04

0.01

0.06

0.01

0.02

0.01

0.02

0.32

0.31

0.34

0.35

0.29

0.31

0.28

0.42

0.32

0.53

0.17

0.33

0.34

0.3

0.22

0.35

0.06

0.47

0.36

0.34

0.41

Not sure Dissatisfied Neither satisfied nor dissatisfied Satisfied

Generally, how satisfied are you with the overall standard of living of your household?Base: All (10,833), CZ (1,379), HU (5,168), MX (344), PL (1,406), RO (2,164), SK (372)

Standard of living summary

Older Czechs are likely to be more cautious with their spending in comparison to their younger compatriots. However, those aged 18-34 have kept their spending stable rather than increasing it

Unsurprisingly, in Hungary, those in the higher income brackets are less likely to defer major purchases unless they are absolutely necessary

The lower earners would also find it very difficult to raise enough money to make an emergency purchase without using credit

A third of Mexican men believe themselves to be capable of saving for a major purchase, compared with only 19% of women

Satisfaction with their standard of living is highest among 25-44s and those who are married with children in Poland

In Romania, the self-employed are those most satisfied with their standard of living (40%). This is double the number of employed who feel satisfied.

Women in Slovakia are significantly more likely to find it difficult to raise the money to pay for an essential purchase (73% vs. 83% of men)

Conclusions & Recommendations

6

Arguably the most significant finding from the research is that only one in five respondents are satisfied with their current standard of living

The cost of living is the most frequently cited concern that people have. This is unsurprising in a global market where there have been significant rises in food and fuel prices amongst other things

The rise in the cost of living is a key driver in the perception of the majority of respondents that their household economic situation will get worse in the next twelve months

On a macro level, expectation is that the respective national economies are also likely to decline in the next year. However, Mexicans & Romanians have much greater confidence in their economies, reflecting the reforms recently proposed by the Mexican government and the rise in GDP in Romania

Summary of findings (1)

In each market except the Czech Republic, at least half of people have no savings, stalling their chances of building household economic stability

Home credit is the form of credit most widely used amongst IPF customers in Eastern European markets. Personal credit is most cited in Mexico

The general perception is that it is becoming increasingly difficult to attain credit. For those who have, affordability is a key issue, with half saying it is a challenge to meet their repayments

There is a worrying trend identifying a third of people using credit as a component of their home budget management. This contradicts the suggestion that nine in ten only use credit in emergencies

Reliance on credit is perpetuated by the notion that individuals find it difficult to raise money for an emergency purchase, or even to save for a major acquisition


People consider being able to get advice from a lender as the most important aspect when finding a credit agency to borrow from. However, a large proportion now look to the internet, highlighting the increase in access amongst the lower economic classes worldwide

Reflecting the times, people are currently spending more cautiously than previously. Few have kept to the same levels of spending, let alone increase it. Major purchases are being deferred by most


What items are influencing the perceived increase in living costs?

What factors are affecting the opinion that there has been a decline in both national and household economic decline?

What have respondents cut back on in order to decrease their level of spending?

In what way are IPF customers using credit as part of their household budget? Have they always had to rely on credit to meet their needs? If not, what has changed to bring this situation about?

Potential subjects for revisiting

Date post:	04-Jan-2016
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