Financial Crime World

Financial Inclusion and Compliance in Spain: A Closer Look

Introduction

The Spanish Banking Association (AEB), CECA, and the National Union of Credit Cooperatives (UNACC) have recently released a comprehensive report on financial inclusion in Spain. The study, conducted by the Valencian Institute of Economic Research (Ivie), sheds light on the current state of access to banking services in the country, particularly in rural areas.

Banking Services Network

The report highlights several key findings related to the banking services network:

  • Branch Reduction: The number of branches has decreased from 45,707 to 19,015 between 2008 and 2021, representing a reduction of 58%.
  • ATM Decline: ATM numbers have also declined, decreasing by 23% in the same period.
  • Density: Spain’s banking service network is one of the densest in the EU-27, with an average of 2,463 people per branch.

Accessibility of Banking Services

The report highlights several key findings related to accessibility:

  • Municipalities without Bank Branches: A total of 4,422 municipalities out of 8,131 do not have a bank branch, representing 89.2% of all municipalities without branches in 2008.
  • Including ATMs: Including ATMs, the number drops to 4,007 municipalities (49.3%).
  • Financial Agents and Post Offices: Financial agents and post offices provide additional access points, reaching 3,342 and 3,200 municipalities respectively.

Characteristics of Municipalities Without Access Points

The report highlights several key findings related to the characteristics of municipalities without access points:

  • Population Size: The vast majority (92.5%) of municipalities without bank branches have less than 500 inhabitants.
  • Percentage of Population: A staggering 67.8% of the population lives in municipalities with fewer than 500 inhabitants.

Distance and Access Time to Banking Services

The report highlights several key findings related to distance and access time:

  • Access within 5 kilometers: An impressive 99.1% of the population has access to a banking service within 5 kilometers.
  • Access within 10 minutes: Additionally, 99.5% of Spaniards can reach a banking service in less than 10 minutes by road.

Conclusion

These findings demonstrate that while there are still areas in Spain where financial inclusion is lacking, the country’s banking services network remains robust and accessible to the majority of its population.