The banking exclusion is characteristic of people experiencing such difficulties of access or use in their banking practices or they can not live a normal social life.
Definition of bank exclusion
Bank exclusion refers to different types of situations: accumulating banking fees, over- indebtedness , not having a deposit account or bank card, not being able to access credit adapted to his needs, etc.
Georges Gloukoviezoff, doctor of economics and founder of 2G Recherche, gives the following definition: “The banking and financial exclusion concerns the persons meeting such difficulties of access or use in their banking practices that they can not more to lead a normal social life ” 1 . These difficulties include:
- access and use of a bank account and associated means of payment;
- access and use of credit;
- access and use of savings products .
It is thus necessary to distinguish the difficulties of access, the difficulties of use of the banking services and to make the link between these difficulties and their consequences for the persons concerned. Bank exclusion is thus a process that starts with difficulties of use (having a consumer credit whose monthly payments are too high for example) and ends with access difficulties (being denied access to a deposit account).
Georges Gloukoviezoff estimates that about 5 million French people face the process of bank exclusion 2. A figure that could increase due to the increase in the number of over-indebtedness cases in recent years and the casualization of a portion of low-income workers. Nevertheless in 2012, 99% of households would have access to a bank account 3 .
French regulation against banking exclusion
1984: Right to the account : any person having no account in bank and being refused the opening of an account by a bank, can apply to the Bank of France which will designate a banking institution which will have the obligation to him opening an account.
1989: the Neiertz law created “an over-indebtedness commission” which analyzes the situation of the indebted borrower who makes the request. This commission may decide to reschedule or even cancel certain debts if they were contracted when the consumer was already over-indebted.
1998: the right to the account is completed by a “basic banking service”:
- the opening, holding and closing of the account;
- a change of address once a year;
- a statement of account at least once a month;
- on-demand bank account statements;
- the receipt of transfers received;
- the cashing of checks deposited on the account;
- the deposit and withdrawal of cash (in the bank);
- payment by direct debits, interbank payment securities (TIP) or transfer;
- a way to remotely view the account balance;
- a payment card with systematic authorization or, failing that, a card authorizing weekly cash withdrawals from the bank’s cash machines
- two bank checks a month.
2009: Accessibility Charter to reinforce the effectiveness of the right to account 4 of the AFECEI : it aims to consolidate the procedure and the effectiveness of the right to the account (specifies in particular the terms and deadlines of the exchanges of the credit institutions with the Bank of France and customer information).
2005: Creation of the Social Cohesion Fund which facilitates access to credit for the most vulnerable consumers
2010: Law No. 2010-737 of 1 st July 2010. This law aims to strengthen prevention of over-indebtedness:
- control of advertising for revolving credits;
- informing clients about the risk of indebtedness;
- extension of the right of withdrawal of the consumer (from 7 to 14 days).
Law 2013-672 of 26 July 2013 on the separation and regulation of banking activities:
- capping of intervention fees (including specific limits for vulnerable customers);
- distribution of an offer adapted to the needs of vulnerable clients (OCF);
- banks sign a banking inclusion and prevention of over-indebtedness charter;
- creation of an Observatory of banking inclusion under the aegis of the Banque de France.
The bank inclusion charter was signed in 2014 and entered into force in 2015.  [ archive ]
In October 2016, the Observatory of Banking Inclusion published its first annual report.  [ archive ]
The role of banks and microcredit to fight against banking exclusion [ change | change the code ]
The financial inclusion is then defined as the set of mechanisms put in place to fight against banking and financial exclusion. These resources make up what some now call “inclusive finance”. The role of banks is central to this process. Indeed, financial inclusion is not limited to access to an account, but to a more comprehensive control of banking tools.
Banks can participate in the financial education of weak clienteles, as is the case with the Caisses d’Epargne with Finance & Pédagogie .
They can also offer their customers products and services that are better suited to their resources and needs. Microcredit is part of these services. As microfinance researchers point out at Audencia Nantes , “microfinance is part of the CSR commitments of most banks [and] there are strong economic reasons to enter the [banking] market through microcredit”. Microcredit is a means for banks to reach a solvent clientele, but until then in the margin of the banking sector. As recalled by the Inspection Générale des Finances, in a report made public in December 2009, the banks have the expertise and sufficient means to develop this activity in partnership with associations and local authorities.
Supported microcredit is a complementary offer, especially for vulnerable clients for whom poorly controlled or inappropriate credit, for example in the form of a cash reserve, may prove to be a bad solution. The adaptation of microcredit to the needs of the borrower and the support he receives throughout his repayments significantly reduce the risk of over-indebtedness.
Notes and references
- ↑ George Gloukoviezoff, 2008 The banking exclusion. The social link to the test of profitability, Coll. The social bond, Paris: Presses Universitaires de France
- ↑ George Gloukoviezoff, 2005, “Can we quantify banking exclusion?” Moral report on the money in the world from 2004 to 2005, Paris: Association of Financial Economics, pp. 389-406
- ↑ http://www.fbf.fr/web/Internet2010/Content.nsf/DocumentsByIDWeb/87YCUS/ [ archive ]
- ↑ ( en ) [PDF] Ministry of Economy, Industry and Employment, ” Decree of 18 December 2008 approving the accessibility charter to strengthen the effectiveness of the right to the account ” [ archive ] , on bank-france.fr , December 26, 2008 (publication in the official journal of the French Republic )