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New financial payment systems may actually be increasing the exclusion of vulnerable groups. These were the findings of a new EUFFI study, conducted across 5 EU member countries presented at the conference Financial Inclusion & New Means of Payment: Qualitative review in five European countries. Speakers at the conference also discussed financial inclusion and exclusion more generally.

The conference was hosted by MEP Evelyne Gebhardt, who spoke on the issue of financial inclusion and access, particularly for vulnerable groups; "Currently, banking service providers in the EU fall short in providing basic banking services in a comprehensive manner. The access to basic banking services and traditional means of payment, such as cash payments or paper transactions must become a universal right. We need to pay special attention to vulnerable consumers."

Michel Barnier, Commissioner for the Internal Market and Services, also brought up the importance of social inclusion, adding that “there is no sustainable economic performance without social inclusion in companies and in society.”

The conference highlighted the fact that more than 30 million people (10% of Europeans) lack access to even a basic bank account. About half of these people would like access but don’t have it due to a variety of constraints. The president of the EU Foundation for Financial Inclusion, Jim Murray, listed some of the causes of financial service inaccessibility in the countries studied, including “low income, uncertain income, changes in status, isolation, disability, and previous financial history, or lack of one.” For these people, modern financial means are less accessible than cash. He also discussed the need to design for all, an initiative that helps ensure universal access to public services by meeting the needs of disadvantaged people.

The study under discussion at the conference concluded that while cash is the most important and typically only means of payment available to many people, it is becoming increasingly difficult for people to use cash exclusively. Many banks are charging large sums to handle cash payments, and even access to local utility offices and post offices (which provide many financial services) is increasingly restricted as branches close. “It is no longer acceptable for millions of Europeans to be denied access to a bank account,” said Commissioner Barnier, later adding that “access to financial services has become more important over time. It is now at the point where we must try to ensure universal access.”

In our recommendations on financial inclusion, we stressed the need to put in place measures to bridge the technological gap, in case of new ICT products and services provided by banks, insurances and credit agencies, and to address the difficulties that some groups may face in accessing ICT (e.g. people with low incomes or who currently have no access to / use of a computer or internet). Therefore, we welcome that the Commission’s proposal for a directive on basic bank accounts ensures that payment accounts with basic features are not only offered by providers that only offer accounts with online banking facilities.