International Personal Finance (IPF), a leading international provider of consumer credit in growth markets, has announced the findings of the second ‘Financial Wellbeing and Inclusion Report’, carried out by YouGov, a leading international, full service online market research agency.
The research, which looked at the use of mainstream financial services amongst IPF customers, found that a majority (55%) still believe it has become more difficult to get credit in the last few years and 60% would have trouble trying to borrow money from a mainstream bank or lender. Over two-thirds of respondents from Hungary (71%) and Mexico (69%) believe it would be impossible or difficult to do so. Only 14% of IPF customers have a mortgage with Mexico showing the lowest share with only 6%. These results are despite the overwhelming majority of IPF customers taking a prudent approach to family finances with 93% thinking carefully before they borrow, 84% not using credit on impulse and 84% stating they never borrow more than they know they can repay without difficulty.
John Mitra, Group Corporate Affairs Director of IPF, commented: “Interestingly, while many believe that it would be difficult for them to borrow money from a mainstream lender; only a small percentage of respondents expressed a wish to have a bank account or a credit card. This may be an indication that the traditional banks have not won universal popularity among retail customers in these countries or continue to underserve this segment of society. As such, non-traditional consumer lenders have a key role to play in these markets by responsibly providing services that people want and need.
“We believe that people with lower incomes should have access to a greater range of financial services and IPF has already engaged in a number of insurance product pilots for households with moderate incomes. In addition, in the countries where we operate, many of our customers have very limited access to mortgages. We would call for lenders to assess other equally viable criteria, which could compensate for the absence of credit history records to open up the credit market to a wider consumer base.”
While just over half (54%) of IPF customers have a bank account and a third (33%) a credit card, the report highlights that few people have made provision for their retirement through savings, long-term investment or pensions. This is despite many people aspiring to put something away for their later years. Illustrating this, nearly three in ten (28%) IPF customers would like a savings account, and 22% a long-term investment or a retirement savings plan; much higher than the 12% who would chose a credit card, or the 9% who would open a bank account if their financial situation allowed it.
The second IPF Financial Wellbeing and Inclusion report is available here.
Further information
Contact Nick Jones, Head of Communications, International Personal Finance
+44 (0) 113 285 6815
