Press Release GfK BH Savings in B H banks The by richman6


									Press Release

27.02.2006 - GfK BH

Savings in B&H banks

The Project of continuous tracking of bank services usage with B&H citizens, named FMDS®
(Financial Market data Service), implemented by GfK BH – Centre for Market Research, shows
that just some 10% of citizens is saving money in banks while twice that much still keeps the
money at home.

“A penny saved is a penny earned” is an old, to some degree profane but nonetheless true saying. But is it
possible to save in a country with such a bad economic layout as B&H’s is? Sullen numbers about official
unemployment rate and average paycheck could hardly tell anything to contribute to that, but there is
another side to this story; banks are often reporting on positive results of their business and increasing
citizens’ savings.

Money can be saved in different manners besides keeping it on a savings account in a bank. For example it
could be invested in real-estate and shares, invested in life insurance etc. Yet, citizens’ interest for savings is
still low. According to the research GfK BH – Center for market research has conducted some 2/3 of B&H
citizens reported not to save at all. This proportion is somewhat higher in RS (79%), in opposition to FB&H
(58%). Keeping the money at home is still the most frequent way of saving, with 22% practitioners. 10% of
citizens, age 15 and over, are saving the money in the bank, and 5% of citizens invest in their personal
business. Having in mind that reform of pension system in B&H is still not actual, it is not surprising that
only 2,5% of citizens invest in their own life insurance. Other manners of saving have even lower share. It is
interesting that there is no difference in the manner of savings when it comes to man and women in B&H
except when investing in personal business, which is somewhat more typical for men. As a rule, persons of
high and higher education levels use more of each saving manner, just like those with middle and higher
business-hierarchy positions. It is clear, that economic power of better educated persons and those with
higher business positions, allows them not only to save more but to use different manners of saving and
investment as well. Private entrepreneurs, as a group, have the least of those that do not save at all, and it
is obvious that this group saves more through investments in personal business. Pensioners are according to
official statistics most endangered society group. This is reflected in the fact that this group has the highest
number of those that do not save money at all – 77%.
 GfK BH Center for Market Research                  FMDS® Financial Market Data Service                                 2006

   Manners of Saving

                                   Personally saving the cash                                                   21,5

                                       Saving in bank in B&H                            9,5

                               Investing in personal business                     4,6

                                   Investing in life insurance              2,5

                                         Buying real-estates               1,7

                               Saving in bank outside of B&H         0,6
                                                                                              65,7 % of
                              Buying works of art and jewelry        0,4                      sitizens does
                                                                                              not save at all
            Investing in volutary (private) health insurance         0,3

                                        Buying stocks/bonds          0,2

                          Buying shares in invesment funds       0,1

                          Investing in construction savings      0,1

                                                        Other        0,2

                                                                 0                5     10       15        20          25
    All respondents: N=1000
Speaking about he citizens’ perception of savings risk in B&H banks, GfK research shows that 38% of
citizens are convinced that there is no risk, 21% are convinced that the risk is low, 25% that there is middle
level risk and 16% are convinced that the risk is high. Interesting fact is that among those with high and
higher education levels we find relatively large number of those that still do not trust enough in the safety of
the savings in the banks that do their business in B&H, more then half of them reported that they consider
the risk to be in middle or high level. It is more surprising that higher confidence in savings have the citizens
with personal incomes between 500 and 1000 KM, in opposition to those with incomes over 1000 KM. These
data represent the sort of a warning for banks that neglected promotion of saving and insuring the money
in banks, so even those who could (and should) be their target audience do not have enough confidence to
start using this important bank service.

 GfK BH Center for Market Research       FMDS® Financial Market Data Service                         2006

   Savings risk

                                          No answer
                                             0%                    Yeas, high risk
                No risk at all

                                                                                     Yes, low risk

                                     Yes, middle level of

    All respondents: N=1000

As for predictions for this year the GfK research shows that only 21% of B&H citizens, age 15 and over are
convinced that the household they live in will in the following year be able to save some money. 40% are
not certain they will be able to do it and 39% has clearly pointed out they do not believe they will be able to
save. Personal assessment of possibility of saving within the households clearly depends mostly on
household income, which is higher in FB&H then in RS, so there we seek to find the reason for apparent
difference between entities – 26% of FBH citizens reported they are certain that their household will be able
to save money in the following year, which is the case for only 13% of RS citizens.
 GfK BH Center for Market Research       FMDS® Financial Market Data Service                         2006

   GfK Mood Barometar

            Will your household be able to save money within the next
                                   12 months?

         UNCERTAIN                                                     YES
            40%                                                        21%

GfK Group
The GfK Group is the No. 5 market research organization worldwide. Its activities cover five business
divisions, Custom Research, Retail and Technology, Consumer Tracking, Media and HealthCare. On 1 June
2005, GfK acquired the No. 10 market research group, NOP World. Excluding NOP World, GfK achieved
sales totaling 672 million euros in 2004. NOP World and the GfK Group recorded joint sales of almost one
billion euros in 2004. In addition to 13 German subsidiaries, the GfK Group has over 130 subsidiaries located
in 63 countries. Of a current total of around 7,600 employees, approx. 80 per cent are based outside of
Germany. GfK BH office was opened in 2004th and it presents first branch of any big international market
research company. For more detailed information visit our web sites: or

Josip Tvrtković
Skenderija 44
71000 Sarajevo, B&H
Tel. +387 33 550 300
Fax +387 33 444 226

To top