The Bank of France’s Observatory for Banking Inclusion (OIB) published its 2024 annual report, pointing to an overall improvement in financial inclusion monitoring indicators while flagging the need for continued vigilance on household financial difficulties. The report highlights earlier detection of financial fragility by banks, a long-term decline in overindebtedness despite a recent pickup in case filings, and emerging risks linked to new forms of borrowing such as mini-loans and instalment payments. By end-2024, banks had identified 4.6 million customers as financially fragile, up 6.3% from 2023 and 97.6% from 2015, with 88% detected using preventive criteria. Around 1.1 million people benefited from the offer for financially fragile customers (OCF) in 2024, and the report notes a significant decline in banking fees for financially fragile customers and OCF beneficiaries in recent years. While overindebtedness filings rose 10.8% year on year, the total number of overindebted people stood at 480,000 at end-2024, down 44% over 10 years; the OIB and the Bank of France are monitoring the renewed increase in filings observed since mid-2023. On credit products, the OIB recommends that all lenders systematically consult the National File of Consumer Credit Repayment Incidents (FICP) before granting credit, and notes that mini-loans and instalment payments are expected to be more tightly framed through the ongoing transposition of the recent Consumer Credit Directive. The report also tracks the “right to an account” procedure, noting a 3.2% fall in bank designations in 2024 but persistent practical difficulties in obtaining refusal letters and longer account-opening times, which the planned digitisation of exchanges with the Bank of France is intended to improve.
Bank of France 2025-06-27
Bank of France Banking Inclusion Observatory reports earlier identification of financial fragility and urges tighter safeguards on new credit products
The Bank of France’s Observatory for Banking Inclusion reported improvements in financial inclusion indicators for 2024, while highlighting the need for vigilance on household financial difficulties. The report noted a 6.3% increase in financially fragile customers and a 10.8% rise in overindebtedness filings, despite a long-term decline. It recommends lenders consult the National File of Consumer Credit Repayment Incidents before granting credit and anticipates tighter regulation of mini-loans and instalment payments.