international personal finance
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International Personal Finance. Wave 2 Report. August – October 2012. Contents. Background/Methodology Economic Outlook Financial Holdings Use of Credit Services Standard of Living Conclusions & Recommendations. 1. Background/Methodology. - PowerPoint PPT PresentationTRANSCRIPT
International Personal FinanceWave 2 Report
August – October 2012
1. Background/Methodology
2. Economic Outlook
3. Financial Holdings
4. Use of Credit Services
5. Standard of Living
6. Conclusions & Recommendations
Contents
Background/Methodology
1
IPF currently provides consumer credit to 2.5 million customers, across six international markets. The business offering is unique for the markets in which IPF operates.
This project is designed to engage with IPF’s customer base, understand the issues they have and their feelings towards the society in which they live, and how they can be better represented in the political and commercial worlds.
IPF wishes to use this research to enhance its unique position as a mouthpiece for the lower socio-economic demographic amongst key groups of decision-makers.
This was the second wave to be run using the IPF panel with more targeted questioning and the survey opened up to a significantly larger proportion of IPF customers.
Background
Methodology The process was adjusted for this wave in order to invite new registrants
as well as the existing panel
Invitation from IPF to register for the panel
Registration survey
YES Take survey now
NOTake survey later
Reminder to take survey
No response
Complete now
Wave 2 survey
Email invitation from YouGov to
take Wave 2
Call from IPF inviting customer to take part in
Computer Assisted Telephone Interview
(CATI)
Happy to take survey
Refused to take part
IPF customers not previously invited IPF existing panellists IPF customers without email addresses
Provident Communities
Czech Republic
Online completes
1,307
CATI completes
72
Hungary
Online completes
5,066
CATI completes
102
Mexico
Online completes
244
CATI completes
100
Slovakia
Online completes
237
CATI completes
135
Romania
Online completes
2,028
CATI completes
136
Poland
Online completes
1,309
CATI completes
97
Economic Outlook
2
Two in three Provident customers consider the cost of living to be of most concern currently
Cost of living
Loss of your job
Cost of education
Cost of health services
Crime in your neighbourhood
Public service cuts
Other
Not sure
I have no concerns
68%
11%
4%
4%
2%
2%
3%
3%
3%
70%
11%
4%
3%
2%
2%
3%
2%
2%
44%
22%
4%
7%
6%
1%
6%
5%
5%
CATIOnlineAll
Which of these is of most concern to you currently? Base: All (10,833), Online (10,191), CATI (642)
• …however this drops significantly when looking at the CATI respondents
• They are twice as likely to be concerned about losing their job, and the cost of health services
Cost of living is the biggest concern in Czech Republic
Which of these is of most concern to you currently? Base: All in Czech Republic (1,379)
• Younger people are far less concerned about the cost of living but worry more for their job stability
Total
Male
Female
18-24
25-34
35-44
45-54
55+
0.68
0.66
0.69
0.58
0.68
0.65
0.72
0.72
0.13
0.12
0.13
0.23
0.13
0.12
0.14
0.07
0.03
0.02
0.04
0.02
0.03
0.05
0.02
0.01
0.13
0.15
0.12
0.14
0.13
0.14
0.09
0.18
0.03
0.05
0.02
0.03
0.03
0.04
0.03
0.02
Cost of living Loss of job Cost of Education Other No concerns
Four in five Hungarians are concerned over the cost of living, more than any other market
Which of these is of most concern to you currently? Base: All in Hungary (5,168)
• Very few people in Hungary claim to have no concerns
Total
Male
Female
18-24
25-34
35-44
45-54
55+
0.82
0.81
0.82
0.84
0.83
0.82
0.82
0.79
0.04
0.04
0.04
0.04
0.03
0.04
0.05
0.03
0.04
0.03
0.05
0.01
0.04
0.06
0.04
0.01
0.09
0.1
0.08
0.1
0.09
0.07
0.08
0.16
0.01
0.02
0.01
0.01
0.01
0.01
0.01
0.01
Cost of living Loss of job Cost of Education Other No concerns
In Mexico, crime in the neighbourhood is the single largest concern
Which of these is of most concern to you currently? Base: All in Mexico (344)
• This is perhaps reflective of the current situation with high rates of drug crime
• Concern over job stability is also high in Mexico, but the cost of living is of relatively little worry
Total
Male
Female
18-34
35-44
45+
0.13
0.12
0.13
0.14
0.14
0.11
0.27
0.31
0.24
0.31
0.27
0.3
0.29
0.28
0.29
0.27
0.31
0.28
0.29
0.26
0.33
0.26
0.25
0.3
0.02
0.03
0.01
0.02
0.03
0.01
Cost of living Loss of job Crime in your neighbourhood Other No concerns
Half of Poles worry over the cost of living while a quarter are concerned about the security of their jobs
Which of these is of most concern to you currently? Base: All in Poland (1,406)
• Overall, Poland has the highest percentage of respondents who have no concerns
• Employment uncertainty is most prevalent among 25-34 year olds
Total
Male
Female
18-24
25-34
35-44
45-54
55+
0.49
0.48
0.5
0.49
0.41
0.55
0.51
0.52
0.24
0.26
0.23
0.23
0.33
0.22
0.24
0.13
0.06
0.05
0.07
0.07
0.08
0.07
0.05
0.02
0.15
0.13
0.15
0.14
0.12
0.09
0.14
0.29
0.06
0.08
0.05
0.07
0.06
0.07
0.06
0.04
Cost of living Loss of job Cost of Education Other No concerns
Romanians are most concerned about the cost of living, and this only increases with age
Which of these is of most concern to you currently? Base: All in Romania (2,164)
• But very few worry about the cost of education, most surprisingly amongst the 18-24 year-olds
Total
Male
Female
18-24
25-34
35-44
45-54
55+
0.6
0.61
0.59
0.61
0.55
0.6
0.64
0.65
0.17
0.13
0.2
0.14
0.2
0.16
0.19
0.06
0.03
0.02
0.03
0
0.03
0.04
0.02
0.02
0.16
0.18
0.16
0.21
0.17
0.16
0.13
0.25
0.04
0.06
0.02
0.04
0.05
0.04
0.02
0.02
Cost of living Loss of job Cost of Education Other No concerns
Cost of living is of most concern in Slovakia, particularly for those in the 35-44 age group
Which of these is of most concern to you currently? Base: All in Slovakia (372)
• Worries over loss of job consistently increase with age• Women are significantly more likely to be concerned about the cost
of living (66% vs. 57% of men)
Total
Male
Female
18-34
35-44
45+
0.62
0.57
0.66
0.58
0.65
0.61
0.18
0.17
0.19
0.16
0.18
0.2
0.01
0.02
0.01
0
0.02
0.01
0.16
0.19
0.12
0.21
0.11
0.15
0.03
0.05
0.02
0.05
0.04
0.03
Cost of living Loss of job Cost of Education Other No concerns
The general economic expectation is low, with three in five expecting things to get worse in the next 12 months
Thinking of the next twelve months, do you expect the economy in your country to get better or worse? Base: All (10,833), CZ (1,379), HU (5,168), MX (344), PL (1,406), RO (2,164), SK (372)
• This wave of negativity is notably higher in the more northerly countries, Poland, Czech Rep and Slovakia
• However, there is a fair amount of confidence in the stability of the Mexican economy, with one in three expecting it to remain at the same level
• Romanians are those most likely to expect economic improvement, reflecting the growth in GDP that they are currently experiencing
All
Czech Rep
Hungary
Mexico
Poland
Romania
Slovakia
0.27
0.25
0.31
0.32
0.25
0.19
0.27
0.38
0.39
0.45
0.24
0.32
0.28
0.28
0.22
0.29
0.16
0.16
0.35
0.2
0.38
0.11
0.05
0.07
0.24
0.07
0.25
0.06
0.02
0.02
0.01
0.04
0.01
0.08
0.01
Not sure/Will stay the same A lot worse A little worse A little better A lot better
Overall, there are an equal number of people expecting their household situation to get better or to get worse• Increase in earnings is the main factor anticipated to boost
household income for those expecting improvement• The cost of living is perceived as the key contribution to a
worsening of household financesBetter
Increased earnings
New job
Changed personal circumstances
Family member sending money from abroad
Able to work again
Other
Not sure
32%
53%
28%
24%
7%
6%
10%
6%
Worse
Increased living cost
Reduced income
Job loss in HH
Not able to work
Changed personal circumstances
Family member stopped sending money from abroad
Other
Not sure
34%
81%
38%
21%
10%
8%
7%
6%
2%Thinking now of the financial position of your own household, over the next twelve months, do you think your financial position will get better or worse? You say that you think your financial position will get better/worse, which of these could explain why things will change? Base: All (10,833)
Over half of Mexicans and Romanians expect the financial position of their household to improve in the coming year• This will mainly be driven by an increase in earnings or a change in
job• Increased living costs and job instability are expected to contribute
to household economic decline, particularly in the Czech Republic and Hungary
Thinking now of the financial position of your own household, over the next twelve months, do you think your financial position will get better or worse? You say that you think your financial position will get better/worse, which of these could explain why things will change? Base: All (10,833), CZ (1,379), HU (5,168), MX (344), PL (1,406), RO (2,164), SK (372)
Czech Rep Hungary Mexico Poland Romania Slovakia
Better 22% 24% 55% 31% 53% 34%
Increased hours /earnings 57% 49% 31% 63% 56% 38%
New job 25% 31% 27% 32% 24% 34%
Able to w ork again 7% 6% 7% 7% 6% 7%
Changed personal / family circumstances 28% 17% 33% 30% 27% 22%
Family member sending money from abroad 3% 5% 2% 8% 10% 9%
Other 8% 12% 27% 8% 6% 11%
Not sure 3% 9% 6% 2% 4% 9%
Worse 40% 41% 16% 33% 26% 28%
Reduced income / hours 26% 45% 28% 33% 26% 28%
Job loss/ partner job loss 19% 18% 43% 24% 27% 34%
Not able to w ork 6% 10% 11% 15% 6% 18%
Changed personal / family circumstances 11% 6% 19% 9% 10% 15%
Increased cost of living 80% 84% 35% 81% 77% 64%
Family member stopped sending money from abroad 0% 12% 4% 2% 3% 1%
Other 8% 6% 17% 5% 5% 4%
Not sure 2% 2% 4% 2% 2% 2%
Household economic situation summary
The percentage of Czechs expecting their household financial situation to worsen increases with age, from 62% amongst 18-34s to 81% for the over 55s. This is mostly attributed to the cost of living. Expectation in Romania also trends with age in the same way.
29% of Hungarian men expect improvement compared with only 21% of women. The men are especially confident of a positive shift in their employment circumstances
A similar pattern prevails in Poland (37% of men expecting better situation against 27% of women)
In Mexico, those who are married without children are most positive about their household situation, particularly when compared with single parents and families with children
Of those in Slovakia who expect their situation to decline, the younger are most likely to cite the increased cost of living
Financial Holdings
3
Bank account ownership is noticeably low in Romania and Mexico
Which of these products do you have? Choose as many as apply. Base: All (10,833), CZ (1,379), HU (5,168), MX (344), PL (1,406), RO (2,164), SK (372)
• Motor insurance and retirement savings are most common amongst residents of the Czech Republic and Slovakia
• Half of Poles have life insurance, while Hungary has the highest mortgage uptake
Home
cont
ents
insu
ranc
e
Mot
or in
sura
nce
Bank a
ccou
nt
Savin
gs a
ccou
nt
Mor
tgag
e
Life
insu
ranc
e
Unem
ploy
men
t, sick
ness
or a
ccid
ent in
sura
nce
Long
term
inve
stmen
t
Retire
men
t sav
ings
pla
n
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
All Czech Rep Hungary Mexico Poland Romania Slovakia
*
*Not relevant in Mexico
Just under half of the Czech respondents do not have any cash savings• The average monthly expenditure on repayment of debts is more
than half the average level of savings
Less than 3,000 Koruna
3,000 - 15,000 Koruna
15,001-30,000 Koruna
More than 30,000 Koruna
Not sure
No savings
20%
22%
5%
4%
6%
43%
Less than 15,000 Koruna
15,001-30,000 Koruna
30,001-150,000 Koruna
More than 150,000 Koruna
Not sure
No debt
10%
25%
32%
23%
9%
1%
Less than 1,500 Koruna
1,500-8,000 Koruna
More than 8,000 Koruna
Not sure
No repayments
8%
64%
22%
5%
1%
Cash savings Total debt Repayments
Do you have any cash savings? If so how much? Thinking now of all your borrowings, which of the following ranges would your total debt fall into? How much do you spend each month on repaying credit and loans? Base: All in Czech Republic (1,379)
Three quarters of Hungarian respondents have no savings
• Two in five have debts greater than 400k forint
Less than 100,000 forint
100,000-300,000 forint
300,000-500,000 forint
More than 500,000 forint
Not sure
No savings
16%
3%
1%
1%
3%
76%
Less than 250,000 forint
250,000-400,000 forint
400,000-2m forint
More than 2m forint
Not sure
No debt
36%
23%
22%
10%
7%
2%
Less than 20,000 forint
20,000-100,000 forint
More than 100,000 forint
Not sure
No repayments
24%
63%
7%
4%
2%
Cash savings Total debt Repayments
Do you have any cash savings? If so how much? Thinking now of all your borrowings, which of the following ranges would your total debt fall into? How much do you spend each month on repaying credit and loans? Base: All in Hungary (5,168)
Very few Polish respondents have savings of more than 2,500 PLN• A third have debts greater than 10k PLN, with only 3% having no
debts at all
Less than 500 zloty
501-2,500 zloty
2,501-5,000 zloty
More than 5,000 zloty
Not sure
No savings
23%
14%
3%
5%
4%
50%
Less than 1,000 zloty
1,001-5,000 zloty
5,001-10,000 zloty
More than 10,000 zloty
Not sure
No debt
11%
35%
17%
28%
6%
3%
Less than 200 zloty
201-700 zloty
More than 700 zloty
Not sure
No repayments
15%
46%
34%
3%
2%
Cash savings Total debt Repayments
Do you have any cash savings? If so how much? Thinking now of all your borrowings, which of the following ranges would your total debt fall into? How much do you spend each month on repaying credit and loans? Base: All in Poland (1,406)
Debts in Romania appear to fall in the higher brackets of 1,000 or more lei• Three in five are paying more than 250 lei per month in repayments
Less than 100 lei
101-500 lei
501-1,000 lei
More than 1,000 lei
Not sure
No savings
7%
10%
7%
9%
2%
65%
Less than 500 lei
501-1,000 lei
1,001-5,000 lei
More than 5,000 lei
Not sure
No debt
3%
11%
42%
36%
6%
2%
Less than 50 lei
50-250 lei
More than 250 lei
Not sure
No repayments
3%
31%
61%
2%
3%
Cash savings Total debt Repayments
Do you have any cash savings? If so how much? Thinking now of all your borrowings, which of the following ranges would your total debt fall into? How much do you spend each month on repaying credit and loans? Base: All in Romania (2,164)
Over half of Slovakian respondents have cash savings, higher than any market except the Czech Republic• Debts are typically lower than €5k and over half of repayments are
subsequently less than €300
Less than 150 Euros
150-500 Euros
501-1,000 Euros
More than 1,000 Euros
Not sure
No savings
16%
15%
8%
8%
5%
48%
Less than 500 Euros
501-1,000 Euros
1,001-5,000 Euros
More than 5,000 Euros
Not sure
No debt
23%
22%
27%
19%
6%
2%
Less than 60 Euros
61-300 Euros
More than 300 Euros
Not sure
No repayments
15%
56%
22%
4%
3%
Cash savings Total debt Repayments
Do you have any cash savings? If so how much? Thinking now of all your borrowings, which of the following ranges would your total debt fall into? How much do you spend each month on repaying credit and loans? Base: All in Slovakia (372)
Financial Holdings summary
In the Czech Republic, levels of debt are highest amongst those aged 25-44; in Hungary it is the older generation who find themselves most in the red
In Poland, debt levels are very similar amongst men and women. Strangely, the employed (full-time workers and the self-employed) have higher debt levels than those out of work
Romania has a rather unorthodox pattern of debt levels rising in line with increasing salaries – this would seem to contradict traditional expectations
There are no results for Mexico as these questions were excluded from the Mexican survey
Use of credit services
4
For the majority of Eastern European customers of IPF, home credit is the most widely used form of credit
Which of these credit products have you used within the last three years? Choose as many as apply. * In Mexico, Bank overdraft and Credit Union loans were replaced with Personal Credit and MicrocreditBase: All (10,833), CZ (1,379), HU (5,168), MX (344), PL (1,406), RO (2,164), SK (372)
• However, in Mexico it is personal credit that is most often used• The older age groups tend to access other forms of credit more
than their younger counterparts
Bank o
verd
raft*
Credi
t car
d
Term
loan
Home
cred
it
Credi
t uni
on lo
ans*
Fore
ign
exch
ange
cred
it
Other
form
of c
redi
t
Perso
nal C
redi
t*
Micr
ocre
dit*
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
All Czech Rep Hungary Mexico Poland Romania Slovakia
The general perception is that it has become more difficult to get credit in the last few years• This is very apparent in Hungary, where three in four believe it is
now harder to get credit• Only in Slovakia do more than one in five believe it has become
easier
All
Czech Rep
Hungary
Mexico
Poland
Romania
Slovakia
0.1
0.1
0.12
0.08
0.09
0.07
0.18
0.64
0.5
0.74
0.45
0.64
0.57
0.35
0.19
0.32
0.11
0.27
0.21
0.28
0.2
0.07
0.09
0.03
0.19
0.07
0.08
0.28
Not sure More difficult About the same Easier
Would you say that is has become easier or more difficult to get credit in the last two to three years? Base: All (10,833), CZ (1,379), HU (5,168), MX (344), PL (1,406), RO (2,164), SK (372)
Just over half of respondents believe that they can comfortably afford their repayments
Please indicate whether you agree of disagree with each of the following statements… Base: All (10,833)
• A third of people use credit on a regular basis as part of their household budgeting
• The overwhelming majority claim to think carefully before they borrow money
I think carefully before I borrow
I tend to use credit on impulse
I only use credit in an emergency
I use credit regularly just as part of the way I manage my budget
I usually borrow as much as the lender will allow me
I never borrow more than I know I can repay without difficulty
I can comfortably afford my credit repayments
93%
15%
88%
34%
39%
86%
54%
7%
85%
12%
66%
61%
14%
46%
Agree Disagree
Czech respondents claim to be better placed to meet their credit repayments than the average IPF customer
Please indicate whether you agree of disagree with each of the following statements… Base: All in Czech Republic (1,379)
• Single individuals without children are most likely to afford repayments (81%)• Impulsive credit usage seemingly decreases with age (34% of 18-
24s vs. 17% of 55+)
I think carefully before I borrow
I tend to use credit on impulse
I only use credit in an emergency
I use credit regularly just as part of the way I manage my budget
I usually borrow as much as the lender will allow me
I never borrow more than I know I can repay without difficulty
I can comfortably afford my credit repayments
90%
19%
89%
35%
33%
87%
70%
10%
81%
11%
65%
67%
13%
30%
Agree Disagree
Only two in five Hungarians can comfortably afford their repayments
Please indicate whether you agree of disagree with each of the following statements… Base: All in Hungary (5,168)
• This concern increases with age, and is more common amongst women
• Credit usage is not exclusive to unemployed or lower income respondents, but relatively consistent across all levels
I think carefully before I borrow
I tend to use credit on impulse
I only use credit in an emergency
I use credit regularly just as part of the way I manage my budget
I usually borrow as much as the lender will allow me
I never borrow more than I know I can repay without difficulty
I can comfortably afford my credit repayments
95%
13%
89%
31%
39%
84%
38%
5%
87%
11%
69%
61%
16%
62%
Agree Disagree
Mexico has a much greater level of control when it comes to obtaining credit
Please indicate whether you agree of disagree with each of the following statements… Base: All in Mexico (344)
• …Very few borrow the maximum amount they can get, and four in five assess how much they can repay before borrowing
• Women are far more likely to use credit as part of their regular budget (45% vs. 30% of men)
I think carefully before I borrow
I tend to use credit on impulse
I only use credit in an emergency
I use credit regularly just as part of the way I manage my budget
I usually borrow as much as the lender will allow me
I never borrow more than I know I can repay without difficulty
I can comfortably afford my credit repayments
94%
14%
85%
39%
16%
79%
80%
6%
86%
15%
61%
84%
21%
20%
Agree Disagree
Nearly half of Poles usually borrow as much as the lender will give
Please indicate whether you agree of disagree with each of the following statements… Base: All in Poland (1,406)
• But only one in four use credit as part of their regular budget management
• Those aged 25-44 tend to be the group who most consider whether they need credit before borrowing
I think carefully before I borrow
I tend to use credit on impulse
I only use credit in an emergency
I use credit regularly just as part of the way I manage my budget
I usually borrow as much as the lender will allow me
I never borrow more than I know I can repay without difficulty
I can comfortably afford my credit repayments
89%
18%
82%
27%
47%
83%
70%
11%
82%
18%
73%
53%
17%
30%
Agree Disagree
Two-thirds of Romanians can comfortably afford their credit repayments
Please indicate whether you agree of disagree with each of the following statements… Base: All in Romania (2,164)
• This is significantly more common amongst men (69%) compared to women (59%)
• Single individuals without children are far more likely to use credit impulsively
I think carefully before I borrow
I tend to use credit on impulse
I only use credit in an emergency
I use credit regularly just as part of the way I manage my budget
I usually borrow as much as the lender will allow me
I never borrow more than I know I can repay without difficulty
I can comfortably afford my credit repayments
94%
14%
88%
44%
39%
91%
63%
6%
86%
12%
56%
61%
9%
37%
Agree Disagree
A quarter of Slovakians use credit on impulse, higher than any other market
Please indicate whether you agree of disagree with each of the following statements… Base: All in Slovakia (372)
• Three in five borrow as much as the lender will give, but conversely, the same number believe they can comfortably afford the repayments
• 44% of men use credit as part of their budget compared to only 28% of womenI think carefully before I borrow
I tend to use credit on impulse
I only use credit in an emergency
I use credit regularly just as part of the way I manage my budget
I usually borrow as much as the lender will allow me
I never borrow more than I know I can repay without difficulty
I can comfortably afford my credit repayments
92%
25%
87%
35%
58%
86%
65%
8%
75%
13%
65%
42%
14%
35%
Agree Disagree
Advice from a consultant is considered the most important aspect when taking out a loan• This is closely followed by product literature in the form of
brochures and websites• Czech & Slovak respondents prefer to take advice from relatives
and friends• Poles use the internet as their most important consideration
What aspects would you consider the most important when taking out a loan? Choose up to three.. Base: All (10,833), CZ (1,379), HU (5,168), MX (344), PL (1,406), RO (2,164), SK (372)
Advice
from
a co
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r0%
10%
20%
30%
40%
50%
60%
70%
All Czech Rep Hungary Mexico Poland Romania Slovakia
Standard of living
5
Four in five respondents are spending more cautiously than previously• Hungarians have become particularly frugal with nine in ten
spending more cautiously in the last 12 months• The Czech & Slovak respondents have kept their spending the most
stableMuch more
cautiousA little more
cautiousAbout the same
as usualSpending a little
more freelySpending a lot
more freely
All 54% 25% 13% 5% 2%
Czech Rep 32% 29% 24% 8% 5%
Hungary 70% 22% 5% 1% *
Mexico 51% 26% 9% 10% 3%
Poland 38% 40% 16% 4% 1%
Romania 43% 22% 19% 9% 6%
Slovakia 28% 24% 30% 13% 3%
Thinking about day-to-day spending over the last twelve months, which of the following would apply to how you have approached spending in current economic conditions? Base: All (10,833), CZ (1,379), HU (5,168), MX (344), PL (1,406), RO (2,164), SK (372)
Three quarters of respondents have been put off making major purchases in the last 12 months• Hungarians and Mexicans have been particularly put off• Women and the older generation are those more likely to have
steered away from major purchases
…put off making major purchases unless absolutely necessary
…just as likely to make a major purchase as any other year
…more likely to make major purchases this year
Not sure
All Czech Rep Hungary Mexico Poland
76%
15%
4%
5%
And still thinking now about the last twelve months, but this time about spending on major purchases. Which of these best describes your own spending behaviour? Base: All (10,833), CZ (1,379), HU (5,168), MX (344), PL (1,406), RO (2,164), SK (372)
Romania SlovakiaI have been…
67%
24%
6%
3%
83%
11%
2%
4%
81%
6%
7%
5%
67%
23%
5%
5%
73%
15%
7%
5%
61%
20%
9%
10%
The overwhelming majority would find it difficult to find money for an emergency payment or to save for a major purchase• However, a quarter of Mexicans believe they can easily find the
specified sum• Women claim it would be much harder for them to save (45% vs.
30% of men)
5% 4% 6% 3% 3% 3%8% 7% 4% 5% 7% 6%
14%9%
35% 39%28%
45% 44%50%
11% 11%
27% 28% 26%23%
21%35%
52%49%
51%
46% 50%44%
61%57%
58% 57% 53%59% 43%
42%
8% 7%14%
6% 2% 3%
18% 24%
9% 10% 11% 11%20%
12%
Very easy
Quite easy
Difficult
Impossible
Not sureAll Czech Rep Hungary Mexico Poland Romania Slovakia
If you were to face an emergency or an unexpected bill or expense how easy or difficult would it be for you to find -amount- without borrowing? How easy or difficult would you find it to save -amount- for a major purchase of something that you needed? Base: All (10,833), CZ (1,379), HU (5,168), MX (344), PL (1,406), RO (2,164), SK (372)
One in three people are not satisfied with the standard of living in their household• A worryingly low number of Hungarians are happy with their lot,
although more than half are unsure how they feel• Comparatively, almost half of Mexicans are satisfied with their
standard of living
All
Czech Rep
Hungary
Mexico
Poland
Romania
Slovakia
0.04
0.01
0.06
0.01
0.02
0.01
0.02
0.32
0.31
0.34
0.35
0.29
0.31
0.28
0.42
0.32
0.53
0.17
0.33
0.34
0.3
0.22
0.35
0.06
0.47
0.36
0.34
0.41
Not sure Dissatisfied Neither satisfied nor dissatisfied Satisfied
Generally, how satisfied are you with the overall standard of living of your household?Base: All (10,833), CZ (1,379), HU (5,168), MX (344), PL (1,406), RO (2,164), SK (372)
Standard of living summary
Older Czechs are likely to be more cautious with their spending in comparison to their younger compatriots. However, those aged 18-34 have kept their spending stable rather than increasing it
Unsurprisingly, in Hungary, those in the higher income brackets are less likely to defer major purchases unless they are absolutely necessary
The lower earners would also find it very difficult to raise enough money to make an emergency purchase without using credit
A third of Mexican men believe themselves to be capable of saving for a major purchase, compared with only 19% of women
Satisfaction with their standard of living is highest among 25-44s and those who are married with children in Poland
In Romania, the self-employed are those most satisfied with their standard of living (40%). This is double the number of employed who feel satisfied.
Women in Slovakia are significantly more likely to find it difficult to raise the money to pay for an essential purchase (73% vs. 83% of men)
Conclusions & Recommendations
6
Arguably the most significant finding from the research is that only one in five respondents are satisfied with their current standard of living
The cost of living is the most frequently cited concern that people have. This is unsurprising in a global market where there have been significant rises in food and fuel prices amongst other things
The rise in the cost of living is a key driver in the perception of the majority of respondents that their household economic situation will get worse in the next twelve months
On a macro level, expectation is that the respective national economies are also likely to decline in the next year. However, Mexicans & Romanians have much greater confidence in their economies, reflecting the reforms recently proposed by the Mexican government and the rise in GDP in Romania
Summary of findings (1)
In each market except the Czech Republic, at least half of people have no savings, stalling their chances of building household economic stability
Home credit is the form of credit most widely used amongst IPF customers in Eastern European markets. Personal credit is most cited in Mexico
The general perception is that it is becoming increasingly difficult to attain credit. For those who have, affordability is a key issue, with half saying it is a challenge to meet their repayments
There is a worrying trend identifying a third of people using credit as a component of their home budget management. This contradicts the suggestion that nine in ten only use credit in emergencies
Reliance on credit is perpetuated by the notion that individuals find it difficult to raise money for an emergency purchase, or even to save for a major acquisition
Summary of findings (2)
People consider being able to get advice from a lender as the most important aspect when finding a credit agency to borrow from. However, a large proportion now look to the internet, highlighting the increase in access amongst the lower economic classes worldwide
Reflecting the times, people are currently spending more cautiously than previously. Few have kept to the same levels of spending, let alone increase it. Major purchases are being deferred by most
Summary of findings (3)
What items are influencing the perceived increase in living costs?
What factors are affecting the opinion that there has been a decline in both national and household economic decline?
What have respondents cut back on in order to decrease their level of spending?
In what way are IPF customers using credit as part of their household budget? Have they always had to rely on credit to meet their needs? If not, what has changed to bring this situation about?
Potential subjects for revisiting