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UNI Europa Finance and the European Savings and Retail Banking Group (ESBG) have published a joint statement outlining three pillars which existing and upcoming regulation should take into account. ESBG and UNI Europa Finance believe in strong retail, regional and responsible banking shaped by diversity of banking business models, proportionality of regulation and individual and affordable personal financial advice.

Diversity in the financial sector enhances competition but also ensures a broader range of services can be offered to customers. This diversity is particularly crucial to local communities in terms of proximity to customers – savings and retail banks through their network of 58,000 branches serve 185 million customers and employ 810,000 people in Europe, particularly in rural areas.

Local banks are already suffering from overly strict regulation as imposed by the Basel III Framework – hence the framework, both current and in case of a Basel IV framework, should be adjusted and take into consideration the principle of proportionality so local banks can continue to play their essential part in driving the European economy forward.

Affordable access to personal financial advice is an important need that should be within reach of all retail clients, no matter the size of their portfolio. Local banks are in a unique position to be able to provide this direct advice to customers in a life-long partnership and exchange, with a well-grounded knowledge of the needs and requirements of each local customer. While digitalisation and automation provide valuable benefits and opportunities for the finance sector, there should also always be an option for banks to provide their customers with personal advice.

‘Diversity in the financial sector is fundamental for growth and job creation in Europe’ said Michael Budolfsen, President of UNI Europa Finance. ‘We need banks to cater to each customer and their specific needs, and regulation of the financial sector should stimulate diversity, which gives customers more options and provides better access to capital for SMEs. We therefore call for a dialogue between regulators, employers and trade unions about a regulation that strengthens growth, job creation and European citizens’ rights and access to personal financial advice.’

Read the full statement here in English, here in French, here in Spanish and here in German