EBA欧洲银行-Consumer-Trends-Report-2016_41页_1mb

EBA Consumer Trends Report 2016 Summary

Core Content

The EBA Consumer Trends Report 2016 outlines key consumer trends and issues in the EU banking sector, focusing on areas such as indebtedness, banking fees and costs, selling practices, and financial innovation. The report is based on data from national competent authorities (CAs), statistical analyses, and input from the EBA's Banking Stakeholder Group (BSG). It also includes insights from consumer complaints data and the FIN-NET network of ombudsmen.

Main Topics and Key Issues

The report highlights eight main trends that the EBA may focus on in 2017:

• Indebtedness: Rising levels of debt among consumers, particularly in the context of low interest rates.
• Banking fees and costs: Concerns over transparency and comparability of fees, especially on payment accounts and loans.
• Selling practices: Issues related to cross-selling and sales incentives, which may lead to unsuitable product offerings.
• Foreign currency loans: Risks associated with currency fluctuations and lack of transparency regarding these risks.
• Innovations in payments: Emerging payment technologies and their impact on consumer behavior and financial services.
• Alternative financial services providers: The role and risks posed by non-traditional financial institutions.
• Virtual currencies: The rise of cryptocurrencies and their regulatory implications.
• Innovative uses of consumer data: How financial institutions are using data and the potential risks to consumer privacy.

Key Information and Findings

Indebtedness

• Indebtedness remains a significant concern for consumer protection.
• Lending and related practices: Floor-rate clauses in mortgage loans have become more common, especially in the context of low or negative interest rates. These clauses limit the benefit of lower borrowing costs. Some CAs have taken steps to ban such clauses, while others see them as offsetting legal uncertainties.
• Household borrowing and arrears handling: Excessive borrowing in the pre-crisis period has led to high arrears, especially in mortgages. Financial institutions have been criticized for not providing sufficient support or restructuring options to consumers in financial distress.
• Creditworthiness assessment: Poor creditworthiness assessments by non-bank providers and lack of re-assessment during renewal of credit facilities have been identified as issues. The EBA issued Final Guidelines on creditworthiness assessment in June 2015, effective from 21 March 2016.

Banking Fees and Costs

• Banking fees are a major source of consumer complaints, particularly due to a lack of transparency.
• The EBA has issued Final Guidelines on fee terminology for payment accounts, aiming to standardize information across the EU.
• Comparison websites: These tools help consumers compare products but pose risks such as data misuse and outdated information.
• The EBA is working on the Payment Accounts Directive (PAD) to develop common terminology, Fee Information Documents (FID), and Statements of Fees (SoF).

Selling Practices

• Cross-selling: Financial institutions often bundle products, such as loans with insurance, which may not meet consumer needs. This practice can lead to higher costs and reduce competition.
• Sales incentives: Financial institutions may prioritize sales targets over consumer interests, leading to conflicts of interest and potential mis-selling. The EBA issued a Consultation Paper on remuneration practices in December 2015, aiming to improve fair treatment of consumers.

Foreign Currency Loans

• Only a few MSs consider foreign currency loans to be a significant issue, but they are still monitored due to currency risk exposure.
• Exchange rate fluctuations have led to increased repayment instalments, causing financial stress for borrowers. CAs have recommended restructuring loans to mitigate these risks.

EBA Actions and Future Plans

• The EBA continues to monitor and address consumer protection issues based on national priorities and market trends.
• The EBA has issued guidelines on arrears and foreclosure, and on creditworthiness assessments, in support of the Mortgage Credit Directive (MCD).
• The EBA is working on developing a consistent supervision approach for legal instruments issued in 2015 and 2016.
• In 2017, the EBA will not publish a Consumer Trends Report due to budget constraints.

Conclusion

The 2016 report reflects the evolving challenges in the EU banking sector, particularly in relation to consumer debt, fee transparency, and unethical selling practices. The EBA plays a crucial role in monitoring these issues and issuing guidelines to enhance consumer protection and financial innovation. Despite the lack of a 2017 report, the EBA remains committed to addressing these issues through its regulatory and supervisory efforts.