The banking sector reaffirms its commitment to financial inclusion

The Spanish Banking Association (AEB), CECA, and the National Union of Credit Cooperatives (UNACC) have presented today in Madrid the “Report on Financial Inclusion in Spain”, prepared by the Valencian Institute of Economic Research (Ivie). This in-depth analysis of banking access in Spain outlines the landscape of access to financial services across the country, particularly in rural areas. It highlights that, despite the adjustments in the banking office network in Spain in recent years—focused on municipalities with over 10,000 inhabitants—“accessibility to banking services is good, as currently 98.6% of the population resides in a municipality where at least one point of access to banking services exists.”

The event has featured the participation of representatives from the three banking associations leading the report’s preparation, who have reaffirmed in their speeches the banking sector’s commitment to financial inclusion and the fulfillment of the actions outlined in the Strategic Protocol to strengthen the Social and Sustainable Commitment of Banking, signed a year ago. Among these measures is the update of the map of access to financial services in rural Spain, so that in the future mechanisms can be jointly devised between the sector and public administrations to expand access to basic financial services for the population.

María Abascal, General Director of AEB, has reminded that the banking sector’s goal has always been to support all its clients, including those in rural areas. In this regard, Abascal noted that “the sector is working with sensitivity and responsibility to provide an adequate response to this situation.” Along this line, Antonio Romero, Corporate Director of Associative Services and Resources at CECA, emphasized that “depopulation in Spain is a phenomenon that affects the provision of all types of services. The banking sector, in line with its social commitment, has been implementing measures for many years to facilitate access to financial services in rural areas.” Lastly, Cristina Freijanes, Secretary General of UNACC, underscored “the commitment of the financial sector to society, reflected in the initiatives that the associations undertake jointly, to unite efforts toward common goals.”

The presentation of the report was conducted by Joaquín Maudos, Professor of Economic Analysis at the University of Valencia, Deputy Director of Ivie, and collaborator of CUNEF, who, as the director of the research team responsible for the study, highlighted some of the main conclusions of the in-depth study conducted.

Thus, regarding the adjustment process of the banking office network—driven by the financial crisis, the sector’s low profitability issues in a context of reduced interest rates, and the rise of banking and non-banking competition—it is concluded that it has not resulted in financial exclusion, due to the existence of other points of access to banking services (ATMs, financial agents, mobile offices, postal offices) and the growth of online banking users. However, considering the difficulties faced by certain vulnerable groups and the potential risk of exclusion, the percentage of the population residing in municipalities where there is no point of access to banking services has been quantified, as well as the distance to the nearest ones.

The analysis shows that most of the adjustment in the office network has occurred in municipalities with more than 10,000 inhabitants (81.8%), while only 3% of the reduction is concentrated in those with fewer than 1,000 inhabitants.

The report indicates that in the aggregate of these municipalities, financial exclusion cannot be claimed, as taking into account the other access routes to banking services, the percentage of the population in these circumstances would decrease from 3.3% to 1.4%. “Specifically, 898,131 people and 1,192 municipalities can access banking services in their municipality of residence thanks to measures adopted by the banking sector to prevent financial exclusion, such as installing an ATM where there is no office, signing an agreement with postal services, offering services through a financial agent, and/or providing services through mobile offices,” notes the study. Additionally, considering access to other nearby offices, it is concluded that “the problem of accessibility to banking services is very limited” since 99.1% of the population has a point of access to banking services within 5 kilometers, and 99.5% within less than 10 minutes.

Banking associations, bearing in mind the results of this report, the assessment of the financial inclusion measures adopted, and their own vocation of service to society, will evaluate new measures that strengthen financial inclusion.