The 2018/19 edition of the consumer trends Report is more extensive than previous editions as it provides a comprehensive quantitative assessment of the trends and a qualitative description of each retail banking product or service within the EBA's consumer protection scope. It also outlines the related issues and the applicable legislative and regulatory framework, including the measures the EBA has undertaken to address them.
In this Report, the EBA observed that mortgages continue to have a big impact on consumers' personal finances, representing 77% of loans to households, and follow a trend of slight increase in terms of volume and value for the past five years. During the same period, the volume of consumer credit was relatively stable, while deposits slightly decreased in their volume. With reference to payment accounts, the EBA observed that the number of people holding a payment account within the EU increased and covered a significant percentage of the EU population. This may have resulted in the significant increase in the use of digital and online payment services.
The Report also identified the most relevant topics for consumers, such as fees and charges; indebtedness, responsible lending and creditworthiness assessment; financial literacy and education; transparency and disclosure of pre-contractual information and changes to contractual terms and conditions; data breach and cyber security; and cross-border selling of products and services. More specifically, these topics focus on issues related to consumer detriment arising from the lack of transparency and disclosure of information on fees and charges, poor creditworthiness assessments, and the complexity of financial products.
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