EBA欧洲银行-Consumer-Trends-Report-2017_30页_659kb

EBA Consumer Trends Report 2017 Summary

Core Content

The EBA Consumer Trends Report (CTR) 2017 provides an overview of consumer trends and issues in the European Union (EU) related to retail banking products and services. It highlights the challenges and opportunities arising from financial innovation, regulatory changes, and evolving consumer behavior. The report is based on inputs from national competent authorities (CAs) and consumer associations, and it outlines both the trends observed and the actions taken by the EBA and CAs to address consumer concerns.

Main Topics Covered

1. Retail Banking Products and Services

• Mortgages

  • The most common form of collateral for housing loans, representing 60%–85% of household loans in MS.
  • Increasing volume and value due to low interest rates and rising real estate prices.
  • Concerns about future interest rate increases and the impact on repayment and household indebtedness.
  • Issues include unclear contract terms, high fees, and difficulty in switching providers.
  • The Mortgage Credit Directive (MCD), effective from 2016, aims to improve transparency, fairness, and sustainability in mortgage lending.

• Consumer Credit

  • Includes personal loans, credit cards, and overdraft facilities.
  • EBA has limited regulatory authority over this sector.
  • CAs reported increased demand for consumer credit, driven by low interest rates.
  • Common issues include high fees, poor sales practices, and insufficient consumer protection.
  • Complaints about consumer credit were relatively low, with 'charges and fees' being the most frequent reason.

• Payment Accounts

  • Essential for accessing the financial system and using other banking services.
  • The Payment Accounts Directive (PAD), effective from 2016, aims to increase transparency and access.
  • Most CAs observed increased penetration of payment accounts.
  • Common issues include unclear fee structures, administrative problems, and sales-related concerns.
  • Complaints about payment accounts were high, with 'administration' and 'charges and fees' being the main reasons.

• Payment Services

  • Includes debit and credit cards, electronic money, and digital payment solutions.
  • Payment cards are the most widely used payment instrument.
  • The Payment Services Directive (PSD2), effective from 2018, aims to foster innovation and competition.
  • EBA has developed draft regulatory technical standards (RTS) on strong customer authentication and secure communication.
  • Issues include payment security, data integrity, and high costs due to hidden fees.
  • Complaints about payment services were relatively high, with 'administration' and 'charges and fees' being the leading concerns.

• Deposits

  • A core banking activity, often linked with payment accounts.
  • The low interest rate environment has led to a decline in traditional deposits.
  • Consumers are increasingly turning to more liquid assets like sight deposits and current accounts.
  • Issues include the termination of high-yield savings contracts and discrepancies in interest rates between deposits and loans.
  • Structured deposits are less commonly used, with concerns about poor consumer understanding of their risks.

• Electronic Money

  • A digital equivalent of cash, stored electronically.
  • Still in a developing stage, with few complaints reported in 2016.
  • Risks include fraud and money laundering.

Key Issues and Trends

2. Topical Issues

• Indebtedness

  • Consumers in most MS have seen an increase in debt levels.
  • Contributing factors include low interest rates, lender practices, and innovative financial models.
  • Sub-topics:
    • Commercial lending practices
    • Household borrowing, creditworthiness assessments, and arrears handling

• Banking Fees and Costs

  • Financial institutions are increasingly relying on fees to offset declining interest income.
  • Issues include lack of transparency, increased fees, and difficulty in comparing costs.
  • Sub-topics:
    • Fees and charges on payment accounts and their comparability
    • Costs related to loans

• Selling Practices

  • Financial institutions use inappropriate incentives and bundled products to attract consumers.
  • Issues include mis-selling, financial loss, and unsuitable contractual agreements.
  • Sub-topics:
    • Cross-selling
    • Sales incentives

• Innovation in Payments

  • New payment methods such as mobile payments, instant payments, and contactless solutions are being introduced.
  • Concerns include security risks and the complexity of new business models.

• Foreign Currency Loans

  • Consumers with foreign currency loans face risks from currency fluctuations.
  • Trends include a decrease in borrowing or restructuring of existing loans.

• Alternative Financial Services Providers

  • Crowdfunding and other alternative services are gaining popularity.
  • Consumers may lack awareness of the authorisation status, safeguards, and fees associated with these services.

• Innovative Uses of Consumer Data

  • Consumers are sometimes unaware that their data is used for other purposes.
  • Risks include unsolicited product promotions and data sales to third parties.

Measures Taken

• The CTR 2017 includes the measures already taken by the EBA and CAs to address the identified issues.
• The EBA has developed draft RTS on payment services and is monitoring the implementation of these standards.
• The European Commission is reviewing dynamic currency conversion (DCC) practices and may take further action to ensure transparency and fairness in exchange rates.

Conclusion

The report underscores the need for continued vigilance in protecting consumers from financial risks, particularly in the context of rising indebtedness, complex fee structures, and the rapid development of financial technologies. It also highlights the importance of transparency, fair lending practices, and consumer education in addressing these challenges.