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

UNICREDIT FOR CONSUMER PROTECTION: THE ITALIAN BUSINESS CASE CREDIT CRUNCH AND SHRINKING SAVINGS European Economic and Social Committee Emanuela Angori – Head of Business Development & Client Protection Bruxelles, 6 June 2013

EUROPEAN CONSUMER AGENDA KEY CHALLENGES 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. RECOMMENDED GOOD PRACTICES 4 KEY OBJECTIVES Reinforcing consumer safety   Launching Financial Education Initiatives  Enhancing consumer knowledge to allow an effective exercise of their Cooperating with AACC to enhance  rights transparency and simplification Stepping up enforcement and   Developing effective ways of securing redress alternative dispute resolution  Aligning consumer rights and  Adapting products and services to policies to changes in society and in socio-economic changes taking place the economy « .. Empowered and confident consumers can drive forward the European economy… » 2

KEY PRINCIPLES TO ENHANCE CONSUMER PROTECTION Key principles Description  Appropriate mechanisms should be developed to help existing and future consumers develop the knowledge, skills and confidence to appropriately Financial Education understand risks, make informed choises and take effective action to improve their and Awareness own 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 of the product Disclosure and  Financial promotion material should be accurate, honest, understandable and not Transparency misleading  Specif disclosure mechanisms, including possible warnings , should be developed to provide information Source: Extract from G20 High-level principles on financial consumer protection endorsed by the G20 Finance Ministers and Central Bank Governors at their meeting 3 on 14-15 October 2011

FINANCIAL EDUCATION IS MORE THAN JUST EDUCATION Promoting Adressing Empowering responsible social people consumption exclusion THE ITALIAN BUSINESS CASE 4

IN- FORMATI: THE DRIVERS In -formati: UniCredit Financial Education program in Italy from 2011  Free courses on Banking and Finance for customers and non-customers Reduce information  Courses with multi-target approach (consumers, asymmetry between non profit organisation, enterprises) Bank and Consumer  Courses available throughout the Country  Focus on consumers and territories real needs  Bank Experts provide non commercial courses on Increase capacity of a voluntary basis and outside work hours making aware and responsible choises  Courses offered to sensitive target such as hearing and speech impaired, immigrants, young people, new entrepreneurs … 5

IN -FORMATI: KEY DATA* 40.879 Trainees (about 90% Non Clients ) 143.838 Training hours delivered (about4 hours per trainee) 1.663 Courses delivered 11 Agreements on Financial Education with national stakeholders 250 Cities where courses have been delivered 768 Volunteer trainers involved in the program 21% Financial Literacy Index 3,1 Trainees satisfaction Index (escale from 1 a 4) * From March 2011 to May 2013 6

IN -FORMATI: KEY ANSWERS TO TERRITORIAL NEEDS Promoting Adressing Empowering responsible social people consumption exclusion  Start up courses  "Guadagniamo il futuro"  Courses for immigrant ("Earn your future") for people (Agenzia TU)  Courses on mortgages, young people in  Courses with consumer credit, cooperation with International Labour multichanel banking, etc. Consumer Associations Organization (ILO) for  Internationalization  "Bank trasparency and political refugees courses (enterprises) legality" courses with  Courses for people in jail Ministry of Education (ad es. Malaspina jail in (Legality Ship 2012 Palermo) Edition)  Revolving cards courses 7

NOI&UNICREDIT: THE CONSUMER ASSOCIATIONS PARTNERSHIP Noi&UniCredit: A program of permanent dialogue with italian Consumers' Associations (CA)  Multi-year strategic partnership with Contribute to reduce over-indebtedness and 12 CA registered at institutional level financial exclusion (Ministry of Economic Development) (2008 – 2013)  Permanent dialogue: 4 joint working groups composed by Consumers Increase Association and UniCredit experts semplification and transparency  Bank internal processes integration with tools carried out in partnership with CA 8

NOI&UNICREDIT: SUBSTANTIAL TRANSPARENCY AND FINANCIAL INCLUSION ACTIVITIES 1 TRANSPARENCY KIT FOR 2 PRODUCTS LAUNCH on MORTGAGE FINANCIAL INCLUSION  Decalogue  Simplified contract  FRIENDLY REPOSSESS  Variable-Rate mortgage note A product designed to  Analytical leaftlets merge overcome situations of illiquidity or temporary financial difficulties through 4 SIMPLIFIED CONTRACTS the alienation (total or partial)  Mortgage of a property, while retaining  Personal Lending the possibility to buy it back  Revolving cards through repurchase  Loans on salary  "CONTO TU FAMIGLIA " BANK ACCOUNT FOR 7 DECALOGUES – CAREGIVERS 10 KEY THINGS TO KNOW on A specific product for caregivers which enriches the  Mortgage offer of banking services with  Current Account services dedicated to  Personal Lending personal and professional  Credit Cards training, such as language  Debt Cards courses, and customized  Revolving cards insurance policies  Loans against salary For additional info: www.unicredit.it/associazionedeiconsumatori 9

NOI&UNICREDIT : JOINT FINANCIAL EDUCATION WITH CA'S "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) 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 * Figures refer to courses within In-Formati program, period March 2011 – April 2013 10

LESSON LEARNED: PUBBLIC AND PRIVATE WIN-WIN PARTNERSHIP Provide information Create an enabling about concrete framework: strategies, needs of territories/ resources and consumers and coordination contribute to INSTITUTIONS territorial projects TERRITORIAL STAKEHOLDER e.g. CONSUMER ASSOCIATION CONSUMERS Develop, deploy and monitor ENTERPRISES projects to increase financial Commitment to skills through financial develop their own knowledge transfer financial knowledge A new "paradigm" to enhance consumer protection 11

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 12