Eurobarometer: Cypriots do not trust bank employees for advice

Cypriots do not trust bank employees for advice on their financial activities compared to citizens of the rest of the EU, but they trust advertising materials more, according to an extraordinary Eurobarometer, released by the Commission, which concerns the relationship of European citizens with the world of financial services, especially amid the ever-increasing digitization of the sector and the development of sustainable finance.

Also according to the same data, Cypriots tend not to want their savings and investments to finance environmentally harmful activities, but they consider that they do not have enough information if this is actually happening.

The main sources of information used by Cypriots to make decisions about their personal financial issues are specialized guidance from magazines or a comparison service (40% in Cyprus, 36% in the EU), recommendations from friends, relatives and acquaintances (34% in Cyprus, 35% in the EU) and advertisements and brochures with information on specific banking products and services (24% in Cyprus, 14% in the EU).

Although they trust the advertisements of banking institutions, Cypriots do not trust the recommendations of bank employees or other financial advisors (17%), while in the EU this option is the most popular with 45%.

Only 8% in Cyprus and 5% in the EU state that they are influenced by information on social media and influencers.

Environmentally sustainable banking activities

In response to questions about sustainable finance, 39% of Cypriots and 24% in the EU said they strongly agreed that they would not want their savings and investments to be used to finance activities with a negative impact on the environment. Another 38% in both Cyprus and the EU stated that they quite agree that they would not want something like this, while only 7% in Cyprus and 16% in the EU strongly disagreed.

However, only 34% in Cyprus and the EU state that they are certain or relatively certain that they know whether their savings and investments are used in environmentally sustainable activities.

On the other hand, 46% in Cyprus and 29% in the EU state that they receive information on the environmental impact of their investments.

Cypriots are active in other member states

A 79% of Cypriots (86% in the EU) said they feel comfortable managing their personal finances, while 77% of Cypriots (72% in the EU) said they feel comfortable using websites and apps for their banking activities.

According to the same results, 9% in Cyprus (12% in the EU) of those who have a bank account stated that they have a bank account in another member state.

Cyprus is also well above the average in the percentage of bank customers who reported that they bought a product such as investments in another member state (38% in Cyprus, 15% in the EU).

The results of the Eurobarometer vary considerably from country to country, but also according to age, gender and educational level.

"As digitization and the sustainable economy change the way we bank, it is essential that Europeans are well informed, treated fairly and aware of the risks and opportunities so that no one is left behind," he said in her statement on the occasion of the publication of the investigation by the Commissioner for Financial Stability, Mairead Magines.

The results of the research will be a trigger for the development of policies by the Commission on issues such as the Capital Markets Union, direct payments, investment in trade, access to data in financial services and the digital euro, the Commissioner noted.

32% of Cypriots (19% in the EU) responded positively to the question whether their economic rights have been violated in the context of interaction with a banking organization.

Of these, 34% of Cypriots (34% in the EU) filed a complaint with the provider, however only 4% complained to the competent national authority (16% in the EU) and only 4% resorted to a consumer protection association (10% in the EU).

The data show differences in how consumers use ATMs or online banking services, although Cyprus is close to the averages.

Regarding the use of ATMs, 55% of Cypriots (46% in the EU) stated that they can very easily find a machine, 32% of Cypriots (40% in the EU) answered "somewhat easily", 8% in Cyprus (10% in the EU ) answered "somewhat difficult" and 5% of Cypriots (3% in the EU) answered "very difficult".

35% of Cypriots (33% in the EU) responded to a related question that they had heard of the digital euro, of which 12% in Cyprus (10% in the EU) considered that they had good knowledge of the subject, with 31% in Cyprus (23% in the EU) to state that they have heard about the issue but are not sure of the details.

But even among those who do not know what the digital euro is there is enough interest to learn more details. 35% in Cyprus (36% in the EU) answered that they do not know but would like to know, and 17% in Cyprus (and 27% in the EU) answered that they do not know but do not care.

The ad hoc Eurobarometer was based on a questionnaire with 16 questions and a sample of 27,862 people in all 27 Member States. In Cyprus, the sample was 513 people and the survey was conducted between May 30 and June 14, 2022.

Source: KYPE