Financial Inclusion Remains a Challenge in Germany, Consumer Advocacy Group Finds
A recent survey conducted by the Consumer Advocacy Association (VZBV) has revealed that many banks in Germany are denying basic banking services to individuals in need, often leaving them without a means of managing their finances. The survey, which was reported by the Spiegel, found that some financial institutions are employing strategies to prevent customers from opening a basic account, even when it is legally required.
According to the VZBV, some banks are not providing clear information to customers about their right to a basic account, leading to a lack of access to this essential service. In some cases, the account was only opened after a consumer advocacy group intervened, threatening to involve the financial regulator.
The VZBV is calling on banks to take responsibility and ensure that every individual has access to a payment account. The organization is demanding that credit institutions be required to actively offer basic accounts when a standard account is not feasible.
In response, the German Banking Association stated that a basic account is crucial for participating in the economy and that disputes over this issue are relatively rare. The association does not believe a mandatory obligation to offer basic accounts is necessary, as customers receive extensive information on banking services in branches and online.