UNICREDIT FOR CONSUMER PROTECTION: THE ITALIAN BUSINESS CASE CREDIT - - PowerPoint PPT Presentation

Emanuela Angori – Head of Business Development & Client Protection

Bruxelles, 6 June 2013

CREDIT CRUNCH AND SHRINKING SAVINGS European Economic and Social Committee UNICREDIT FOR CONSUMER PROTECTION: THE ITALIAN BUSINESS CASE

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EUROPEAN CONSUMER AGENDA KEY CHALLENGES



Launching Financial Education Initiatives



Cooperating with AACC to enhance transparency and simplification



Developing effective ways

• f

alternative dispute resolution



Adapting products and services to socio-economic changes taking place

The European Consumer Agenda focuses on the principles of trust and awareness of European consumers in order to re-launch the single market and overcome the difficult economic situation.

4 KEY OBJECTIVES



Reinforcing consumer safety



Enhancing consumer knowledge to allow an effective exercise of their rights



Stepping up enforcement and securing redress



Aligning consumer rights and policies to changes in society and in the economy

« .. Empowered and confident consumers can drive forward the European economy… » RECOMMENDED GOOD PRACTICES

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KEY PRINCIPLES TO ENHANCE CONSUMER PROTECTION

Source: Extract from G20 High-level principles on financial consumer protection endorsed by the G20 Finance Ministers and Central Bank Governors at their meeting

• n 14-15 October 2011

Key principles Description

• Appropriate

mechanisms should be developed to help existing and future consumers develop the knowledge, skills and confidence to appropriately understand risks, make informed choises and take effective action to improve their

• wn financial well-being
• Financial Education and awareness should be delivered through diverse and

appropriate channels, should begin at an early age and be accessible for all life stage

• Specific programmes and approaches related to financial education should be

targeted for vulnerable groups of financial consumers

• Provide consumers with key information on fundamental benefits, risks and terms
• f the product
• Financial promotion material should be accurate, honest, understandable and not

misleading

• Specif disclosure mechanisms, including possible warnings, should be developed to

provide information Financial Education and Awareness Disclosure and Transparency

FINANCIAL EDUCATION IS MORE THAN JUST EDUCATION

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Empowering people Adressing social exclusion Promoting responsible consumption

THE ITALIAN BUSINESS CASE

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IN-FORMATI: THE DRIVERS In-formati: UniCredit Financial Education program in Italy from 2011

 Free courses

• n

Banking and Finance for customers and non-customers  Courses with multi-target approach (consumers, non profit organisation, enterprises)  Courses available throughout the Country  Focus on consumers and territories real needs  Bank Experts provide non commercial courses on a voluntary basis and outside work hours  Courses

• ffered

to sensitive target such as hearing and speech impaired, immigrants, young people, new entrepreneurs … Reduce information asymmetry between Bank and Consumer Increase capacity of making aware and responsible choises

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40.879

143.838

Trainees (about 90% Non Clients)

1.663

Courses delivered

768

Volunteer trainers involved in the program

21%

Financial Literacy Index

250

Cities where courses have been delivered

3,1

Trainees satisfaction Index (escale from 1 a 4)

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Agreements on Financial Education with national stakeholders

* From March 2011 to May 2013

Training hours delivered (about4 hours per trainee)

IN-FORMATI: KEY DATA*

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Empowering people Adressing social exclusion Promoting responsible consumption

 Start up courses  Courses on mortgages, consumer credit, multichanel banking, etc.  Internationalization courses (enterprises)  "Guadagniamo il futuro" ("Earn your future") for young people in cooperation with Consumer Associations  "Bank trasparency and legality" courses with Ministry of Education (Legality Ship 2012 Edition)  Revolving cards courses  Courses for immigrant people (Agenzia TU)  Courses with International Labour Organization (ILO) for political refugees  Courses for people in jail (ad es. Malaspina jail in Palermo)

IN-FORMATI: KEY ANSWERS TO TERRITORIAL NEEDS

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NOI&UNICREDIT: THE CONSUMER ASSOCIATIONS PARTNERSHIP

 Multi-year strategic partnership with 12 CA registered at institutional level (Ministry of Economic Development) (2008 – 2013)  Permanent dialogue: 4 joint working groups composed by Consumers Association and UniCredit experts  Bank internal processes integration with tools carried out in partnership with CA

Noi&UniCredit: A program

• f

permanent dialogue with italian Consumers' Associations (CA)

Contribute to reduce

• ver-indebtedness and

financial exclusion Increase semplification and transparency

7 DECALOGUES – 10 KEY THINGS TO KNOW on

 Mortgage  Current Account  Personal Lending  Credit Cards  Debt Cards  Revolving cards  Loans against salary

1 TRANSPARENCY KIT FOR MORTGAGE

 Decalogue  Simplified contract  Variable-Rate mortgage note  Analytical leaftlets merge

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4 SIMPLIFIED CONTRACTS

 Mortgage  Personal Lending  Revolving cards  Loans on salary

2 PRODUCTS LAUNCH

• n

FINANCIAL INCLUSION

FRIENDLY REPOSSESS

A product designed to

• vercome

situations

• f

illiquidity

• r

temporary financial difficulties through the alienation (total or partial)

• f a property, while retaining

the possibility to buy it back through repurchase

"CONTO

TU FAMIGLIA " BANK ACCOUNT FOR CAREGIVERS A specific product for caregivers which enriches the

• ffer of banking services with

services dedicated to personal and professional training, such as language courses, and customized insurance policies

NOI&UNICREDIT: SUBSTANTIAL TRANSPARENCY AND FINANCIAL INCLUSION ACTIVITIES

For additional info: www.unicredit.it/associazionedeiconsumatori

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LEGALITY SHIP 2012 EDITION

 Courses and games on financial education to thousands of young

students on «Legality Ship» together with the Ministry of Education

 Courses on Legality and Finance to 150 students and teachers on the

"Legality ship" "GUADAGNIAMO IL FUTURO (EARN YOUR FUTURE)" *

 309 courses  200 schools  8372 participants

"FACILE&SICURO" (Easy and secure): E-money

 21 meetings  National Day with 20 INFO POINTS nationwide  8300 citizens involved  E-money guide

FACILE&SICURO: multichannel bank

 Meetings with 150 CAs executives  Multichannel Bank guide  Meetings on territories (starting now)

NOI&UNICREDIT : JOINT FINANCIAL EDUCATION WITH CA'S

* Figures refer to courses within In-Formati program, period March 2011 – April 2013

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LESSON LEARNED: PUBBLIC AND PRIVATE WIN-WIN PARTNERSHIP

CONSUMERS TERRITORIAL STAKEHOLDER e.g. CONSUMER ASSOCIATION INSTITUTIONS ENTERPRISES

Commitment to develop their own financial knowledge Create an enabling framework: strategies, resources and coordination Develop, deploy and monitor projects to increase financial skills through financial knowledge transfer Provide information about concrete needs of territories/ consumers and contribute to territorial projects

A new "paradigm" to enhance consumer protection

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THANKS FOR YOU ATTENTION Emanuela Angori

Head of Business Development & Client Protection Country Development Department

Emanuela.Angori@unicredit.eu

+ 39 06 54455464 + 39 335 8306450