63 percent of Romanians have little knowledge of credit cards, reveals GFK study

Romanian’s have a low level of financial education according to a study conducted, this summer, by GFK Romania, for the Romanian Banking Association (ARB). The study included 1000 respondents of adult age and was conducted by phone.

While 55 percent of respondents have little knowledge of what a debit card is, around 62 percent have little idea what a banking account is. Romanians are also in difficulty when it comes to credit cards, around 63 percent responding that they have little knowledge of this, while 80 percent are puzzled by internet banking. In addition, 84 percent of respondents have little knowledge about housing contracts in savings-credit regimes, while 86 percent have a low level of awareness regarding telephone/mobile banking.

These data came from respondents that have a history of using banking services, but it also includes individuals that haven’t used a banking service yet. Employees with third education degrees, that have used banking services in the past, are better informed than the rest of respondents.

The study also reveals that 94 percent of Romanians don’t know what score banking is, while 87 percent have low clarity on terms such as ROBOR and EURIBOR.

The GFK study also shows that 21 percent of Romanians that are using banking services of some sort are not reading the contracts provided by banking institutions, while another 36 percent declared having partially read contracts. According to the results, clients that are contracting savings products are inclined to thoroughly read the documents, compared to clients that are opening banking accounts or cards.

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Out of the total population, 42 percent have declared they have little interest in banking products, while 29 percent have an interest only when looking for a certain product. Only 20 percent of respondents have an active informing behavior on banking products.

Around 42 percent of respondents mentioned TV shows as the main source of information on financing or banking news, while 40 percent appeal for information to relatives or friends. 37 percent get their information from banking leaflets, while 29 percent use traditional or on-line press as sources of information. However, 33 percent mentioned no source of information.

Following this study, the banking lobby ARB announced the launch of a new education program in the financial – banking area that comprises of weekly informative fillings that will be broadcast on the national television station (TVR). The short programs will be broadcasted twice a week at noon and prime-time and explain the main banking and financial terms through real life scenarios.

The campaign will be on air for six months starting this December and has been financed by ARB.

Radu Gratian Ghetea, president of ARB and CEC Bank, commented of the results stating that banks have created products and services, but have shown little interest in the financial education of Romanians, adding that a minimum level of knowledge has to be constructed for consumers. However, Ghetea believes that the same situation was encountered in other countries.
Ovidiu Posirca