Who is financially excluded?

National and regional studies on financial exclusion and poverty show that several factors have to be taken into account when considering financially excluded people, primarily one’s age, income, employment status, household income, geographic location and a series of attitudes.

Generally speaking, people with low income, less education, part of an ethnic minority or with migrant background and either very old or very young are more likely to be financially excluded than others. Women are also twice as likely to find themselves completely excluded from financial services than men. By household type, people who are completely financially excluded are more likely to be found within households with no wage earner.

 In 2003, financial exclusion disproportionately affects the following groups:

  • adult women are significantly more affected than men;
  • people aged 18 to 25 represent the most affected of all age groups in Western European countries while people older than 65 are the most likely to be financially excluded in Eastern Europe;
  • single parents and single people with no children are the most affected;

 As regards the working status of financially excluded people, students and unemployed are over-represented in Western Europe while people whose occupation it is to look after their home as well as once again unemployed people are most likely to be affected in Eastern Europe:

  • people having stopped their education at 15 are considerably more affected than those having studied until 20 and more;
  • financial exclusion incidence is more likely among the poorest parts of society, that is people in the lowest income quartile;
  • its occurrence is higher in rural areas than in urban ones (most noticeable in the new members states);
  • migrants and people from ethnic communities are more likely to be concerned, though this depends largely on their migratory plan.

 

 (%) Financial exclusion
                 

No access to credit       

                No savings
               No transaction bank account
                
  EU 15 EU10

EU 15                   

 EU 10 EU 15 EU 10 EU 15 EU 10
All  7 34 40 72 30 54 18 53
Work Status                
-Employed 3 13 27 57 26 40 11 29
-Looking after home  13  52  51  82  38  66  28  69
-Student  17  39  59  77  51  72  31  54
-Unemployed  12  57  57 84 45 77 25 71
                 
Gender                
-Male 5 30 36 69 28 49 16 51
-Female 8 37 43 75 32 58 20 54
                 
Age                
-18-25  13 36 52 73 47 67 25 51
-26--44  5  23 30 61 29 48  14  39
-45-64  5  31  36  73  25  49  14  52
-65+ 8 56 56 91 28 65 24 80
                 
Income                
-Lowest quartile  9  55  53  86  41  70  22 75
-2nd lowest quartile  5  37  41  80 30 56 15 61
-2nd highest quartile  4  20  35  66  24  45  11  41
-Highest quartile 2 14 21 53 16 37 9 27

 

 Source : Financial Services provision and prevention of financial exclusion, Réseau Financement Alternatif Report