17% of Poles trust loan companies Financial sector reputation survey
Although 17% do not seem to be a high figure, loan institutions are currently at the same level of credibility as SKOK’s last year.
The analysis indicates that the trust index is increasing for all entities covered by the survey. However, the most dynamically for loan companies. The banks gained 1.6% confidence, the Polish Financial Supervision Authority 13.5%; Open Pension Funds 20%, and credit unions by over 40%.
Lending institutions increased their trust by 54% during the year. It’s really impressive growth. It is interesting that the percentage of people who declare distrust of loan institutions also decreased by 7%. This is another fact that confirms the thesis about the growing credibility of non-bank credit entities.
Wrong accusations in the background
The distrust of Poles was due to the myths created in the 1990s by the activities of often unprofessional local loan initiatives and companies. They abused trust, but more importantly – they acted outside the law.
Few of us are aware that the oldest online loan institutions (which are market leaders today) started their operations only four years ago and are not contaminated by media abuse.
Changes in the law
In March 2016, regulations came into force that reduced the maximum cost of credit and imposed new organizational requirements on loan companies. Under the act appointing the Financial Ombudsman, information requirements were also imposed on loan institutions. Some financial institutions have been charged with the so-called “Bank tax”.
What’s more, the Mortgage Act will come into force soon, which limits the possibility of granting mortgage loans only to banks and credit unions; introduces new obligations in the field of advertising and creates a long-term public Register of Loan Institutions at the Polish Financial Supervision Authority postulated by the Association of Loan Companies.
The number of complaints is falling
Another evidence of increased confidence in lending institutions is the fact that the Financial Ombudsman’s report shows that the number of complaints about lending institutions in 2016 was 210 out of 3723 applications for the entire financial sector (5.6%).