Financial exclusion in

SpainSara Carreño Iglesias

Andrés Fernández RodríguezAndrea Rodríguez García

Index

1. Background of Spain2. Level of financial exclusion3. Causes and consequences 4. Government role 5. Institutions6. Alternative way to finance projects7. Caja España y Montes de Piedad8. Conclusions

1. Background of Spain

Madrid

Mariano Rajoy

King Juan Carlos I

Population

46,704,314 inhabitants

GDP$1,414 trillions

2013 2012Unemployment 25,9% 26,3%

Males 25,1% 25,9%

Females 26,8% 26,8%

Under 25 years 54,6% 55,7%

España: Paro

Deficit Million € % PIB

2013 -72.577 € -7,10%

2012 -109.460 € -10,60%

Poverty in Spain21,6% under the poverty line

Poverty lineFamilies = 14,000 € Individuals = 7,000€

2. Level of financial exclusion

Before 2007…

Since 2008, near 10,500 bank branches have close in Spain

The most affected provinces are: • Barcelona (16,454 inhabitants)• Tarragona (14,258 inhabitants)• Caceres (14,229 inhabitants) • Madrid (11,319 inhabitants)

Castilla and León the 75% of its municipalities

353,836 inhabitants = the 13.9% of the region’s total population

As a solution…

Internet and telephone banking

E-commerce it is not very popular

Is essential that people have access to information and communications technology to prevent their financial exclusion

3. Causes and consequences

Causes…

arising from the supply side

• The exclusion via prices.

• Commercial exclusion.

• The complexity of options

• The geographical access.

started by the demand part

• The exclusion via conditions.

• The fear of losing financial

control.

• The self-exclusion.

• Cultural and religion reasons.

• The preference of alternative

suppliers

… and consequences

Social• Depend on status and

life experience of the people

• Not well seen to paid big amounts of money in cash

Financial

• The access difficulties• Incomes through their bank

account

payment of bills gets costly

4. Government role

-As a facilitator:• an understanding of the problem

• providing positive incentives to encourage the changes in the banking system

• to promote financial inclusion

• a support of market initiatives

• contributing directly to the provision of financial services

-As a legislator:

• Direct legislation every citizen should have access to specific basic transaction banking services

• Indirect regulation remove obstacles that fortify financial exclusion.

• Positives incentives innovations in the banking system to work for financial inclusion.

Local authorities:

• How local authorities can help against financial exclusion?

• Giving economic aid to schools, retired people…

• Build their own financial inclusion strategy

• Working in partnership and support the development and growth of credit unions services

• Developing as many as possible ideas in order to contribute together with national government

5.Institutions

6. Alternative way to finance

projects

is the collection of finance from backers—the "crowd"—to fund an initiative and usually occurs on

Internet platforms. The initiative could be a nonprofit campaign, a political campaign, a charitable

campaign, a commercial campaign or a financing campaign for a startup company.

Crowdfunding

The Cosmonaut

The Cosmonaut is a Spanish science fiction film, released in May 2013. It is one of the best known cases of the use of crowdfunding in our country.

• Producer from just 2 € and receive instead a welcome pack, a producer certificate, entry into a drawing for an authentic costume cosmonaut and your name in the credits.”

• 400.000 €

Ademar

Club Balonmano Ademar León is a Spanish handball team founded in our city, León. The team plays in Liga ASOBAL and Velux EHF Champions League.

They offered : 5 € = thanks and post tweet 20 € = video with the best moments30 € = thename@ademar.com35 € = VIP tickets50 € = the name in the stadium 100 € = End of Season Dinner 150 € = the name on the shirt of a player 500 € = clinic with coaches 600 € = play a game: fans vs official team

7. Caja España y Montes de

Piedad

• These organizations are a “peculiarity” of the Spanish financial systems that fight against poverty and financial exclusion.

• Objective: get loans to families with emergency needs, giving the most favorable conditions possible.

8. Conclusions