The thesis analyses legal environment of the financial services market in relation with business practice of retail financial products distribution in Czech republic. It describes current legislation and instruments of regulation of the distributional activities both on national and supra-national (european) level. Furthermore, it introduces the development of regulation in light of identified weaknesses of legislation, leading to specific recommendations and measures ensuring vast consumer protection and fixing the level-playing-field in distribution throughout various sectors of financial markets and their layovers. The conclusions are based on author´s theoretical studies of economic and legal context and private business practice.

The diploma work is concerned with the topic of bank client security, as a consumer and an investor, captured in the Czech law, incorporating elements of EU directives. The thesis defines terms of "consumer" and "investor", explains why they are considered bank clients and introduces reasons of their protection. It describes elements of bank clients' protection such as: deposit insurance (including comparison of foreign systems - Switzerland and New Zealand), consumer credits rules, payment system and Bureau of Financial Arbiter, personal information security and bank secret. The last chapter addresses investor protection, falling under European directive MiFID (Markets in Financial Instruments Directive).

The behaviour of taking out unsecured loans to purchase goods or services is in danger of causing over-indebtedness, especially among young adults. The lending of consumer credits is closely associated with inadequate creditworthiness assessments as well as high interest rates, which implicates that borrowers with narrow margins are granted loans that they are later unable to repay. Consumer information in the form of loan terms and pre-purchase information is not sufficient to give the consumer an understanding of the long-term effects that a consumer credit may have on the personal finance. The aim of this study is to explore how the Swedish Consumer Agency can use cautionary tales to influence young adults’ (18–29 years) attitudes towards consumer credits. The research objective is to present a design proposal for a narrative, as part of a public communication campaign with the Swedish Consumer Agency as messenger. To develop an understanding of possible reasons why young adults take out consumer credits, as well as the consequences for those who cannot repay their loans, quantitative as well as qualitative data was collected from government publications and official statistics. Based on the findings from the data collection, a narrative for a campaign video was created in the format of a screenplay. The narrative's potential impact was then evaluated with the help of prospective users of the campaign video. The results from the user testing show that the narrative activated psychological processes in the participants which are associated with attitudinal impact. Thus, the results suggest that a cautionary tale, which explains potential causes and effects of over-indebtedness that is relatable to young adults, can influence young adults' attitudes towards consumer credits. / Att ta lån utan säkerhet för att köpa varor eller tjänster är ett beteende som särskilt bland unga vuxna riskerar att leda till överskuldsättning. Utlåning av konsumtionskrediter är nära förknippad med bristande kreditprövning så väl som höga räntekostnader, vilket medför att låntagare med små marginaler beviljas lån som de senare inte förmår att betala tillbaka. Konsumentinformation i form av lånevillkor och förköpsinformation är inte tillräckliga för att ge konsumenten en förståelse för vilka effekter konsumtionskrediter kan ha på privatekonomin långsiktigt. Syftet med denna studie är att utforska hur Konsumentverket kan använda varnande berättelser för att påverka unga vuxnas (18–29 år) attityder till konsumtionskrediter. Målet med studien är att utforma ett gestaltningsförslag till ett narrativ, som en del i en offentlig kommunikationskampanj med Konsumentverket som avsändare. För att utveckla en förståelse för varför unga vuxna tar konsumtionskrediter, liksom vilka konsekvenserna blir för dem som inte kan betala sina skulder, samlades kvantitativa så väl som kvalitativa data från statspublikationer och officiell statistik. Med utgångspunkt i fynden från datainsamlingen utformades ett narrativ till en kampanjfilm, gestaltat som ett filmmanus. Narrativets potential till attitydpåverkan utvärderades därefter med hjälp av presumtiva användare av kampanjfilmen. Resultaten från användartesterna visar att narrativet aktiverade psykologiska processer hos testdeltagarna som är associerade med attitydpåverkan. Resultaten föreslår således att en varnande berättelse som redogör för möjliga orsaker till och konsekvenser av överskuldsättning som unga vuxna kan relatera till, kan påverka unga vuxnas attityder till konsumtionskrediter.

In this study we propose to enhance the predictive power of a Buy Now, Pay Later (BNPL) consumer credit scorecard by leveraging detailed product information. The object of analys is in this study is Klarna Bank AB, which is the largest retail finance provider in Sweden. This research conducts a quantitative study in order to firstly, investigate if it is possible to find subcategories that correlate more with credit risk than the existing product categories at Klarna. This will be investigated by categorizing already accepted orders into more granulated product categories than Klarna's existing level. Secondly, this study investigates how more detailed product categorization can improve a BNPL e-commerce consumer credit scorecard. Lastly, a qualitative analysis of what the business impact an implementation of this feature could entail for Klarna Bank AB is conducted. Our results demonstrate that it is possible to find subcategories that correlate more strongly with credit risk than the existing categories. The characteristics of the high-and low risk product categories align with existing research on online consumer behavior. More specifically, we found that luxury products, ego-related products, and products related to addictive behavior had the highest risk. We also contribute to existing research within the credit risk management field by finding that trending/new products on the market have a higher risk, and that the novelty of a product should be taken into consideration in credit risk prediction. By applying a hypothetical credit scoring model on a dataset of already accepted orders that took the new detailed product categories into consideration, the discrimination performance could be improved. However, risks regarding adding more data into a credit risk model need to be considered before implementing the proposed solution. Our study, therefore, demonstrates the potential of including more granulated product category information in a BNPL e-commerce consumer credit scorecard to improve risk prediction. While the results of this study are limited to the studied context, it is considered generalizable in that the proposed method could effectively be adapted to retrieve corresponding findings in other contexts. / Denna studie föreslår att förbättra prediktionsförmågan hos en konsumentkreditriskmodell inom Buy Now, Pay Later (BNPL) genom att utnyttja detaljerad produktinformation. Analysobjektet i studien är Klarna Bank AB, som är den största BNPL-aktören i Sverige. I detta arbete genomförs en kvantitativ studie för att först och främst undersöka om det är möjligt att hitta produktkategorier som korrelerar mer med kreditrisk än vad de nuvarande produktkategorierna på Klarna gör. Detta ska undersökas genom att kategorisera redan accepterade ordrar i mer granulerade produktkategorier än Klarnas befintliga nivå. Därefter ska det undersökas hur mer detaljerad produktkategorisering kan förbättra en kreditriskmodell för BNPL-företag. Till sist genomförs en kvalitativ analys över vilken affärspåverkan en implementering av denna lösning skulle kunna innebära för Klarna Bank AB. Våra resultat visar att det är möjligt att hitta underkategorier som korrelerar starkare med kreditrisk än de befintliga kategorierna hos Klarna. Egenskaperna hos de produktkategorier med hög och låg risk överensstämmer med befintlig forskning inom konsumentbeteenden online och psykologi. Mer specifikt fann vi att lyxprodukter, ego-relaterade produkter, och produkter relaterade till beroendebeteenden hade den högsta risken. Vi bidrar också till befintlig forskning inom forskningsfältet för kreditrisk genom att finna att trendiga/nya produkter på marknaden har högre risk och att det borde beaktas vid kreditriskbedömning. Genom att tillämpa en hypotetisk kreditvärderingsmodell på en dataset av redan accepterade ordrar, som tog hänsyn till de nya detaljerade produktkategorierna, kunde prediktionsförmågan förbättras. Risker med att lägga till mer data i en kreditriskmodell måste dock övervägas innan den föreslagna lösningen implementeras. Vår studie visar på potentialen i att inkludera mer detaljerad produktkategoriinformation i ett consumer credit scorecard för BNPL-företag för att på så sätt förbättra riskprediktionsförmågan. Även om resultaten av denna studie är begränsade till den studerade kontexten, anses det vara generaliserbart genom att den föreslagna metoden effektivt skulle kunna anpassas för att hitta motsvarande resultat i andra kontexter.

Gauteng, one of the nine provinces of South Africa, has a high number of households as compared to the other provinces. Geographically the province has the smallest land size, however it forms the central part of the South African economy. From the total value of credit granted in all provinces, Gauteng has the highest. The province has a high number of registered debt counsellors and an increasing number of consumers who apply for debt counselling because of over-indebtedness. The high number of the registered debt counsellors and consumers seeking debt counselling service gave rise to the purpose of the study. The purpose of the study was to assess the role of debt counselling services provided by debt counsellors to consumers on the one hand, and to also assess whether debt counselling has had a positive effect on the personal financial well-being of consumers who participated in the debt counselling process on the other hand. Furthermore, the study aimed at developing a framework that will empower consumers to be self-sufficient with their finances. From the purpose of the study, two research questions were proposed: (1) How does the debt counselling service provided by debt counsellors assist consumers to manage their finances effectively? (2) Which role does the debt counselling service provided by debt counsellors play in terms of the personal financial well-being of consumers? In an attempt to answer research questions, the theoretical framework of both personal finance and debt counselling were studied. The importance of personal finance, personal financial planning, the evolution of debt counselling, the effectiveness and the ineffectiveness of debt counselling services were identified. A two-phased sequential design (qualitative and quantitative) was used. Fifteen debt counsellors were selected (for the first phase of the study) by making use of a purposeful sampling. These debt counsellors were interviewed and further requested to identify and send questionnaires to consumers whom they have rendered debt counselling service between the years 2007 and 2013. In the second phase of the study, 300 over-indebted consumers were surveyed through a snowball non-probability sampling technique and a response rate of 61% was realised. Data was analysed using ATLAS.ti and the Statistical Package for Social Science (SPSS) for the first and the second data collected respectively. Furthermore, the exploratory factor analysis was used to analyse the data, and the factorability of the data was assessed by means of two statistical measures, namely Bartlett’s test of sphericity and Kaizer Meyer-Olkin. It was observed that most debt counsellors lack financial management knowledge and do not have mechanisms to verify their clients’ financial well-being after debt counselling service had been completed. In addition, there was no evidence that consumers who received debt counselling improved in their financial well-being and that consumers also lacked personal financial management skills. The study concluded that, although debt counselling is essential, it does not necessarily assist consumers to effectively manage their finances. The study purports to suggest the following: Debt counsellors should be subjected to formal financial management training prior to their registration, debt counsellors should provide personal financial management education to their clients, and assess the financial management conduct of their clients once debt counselling process is complete, and debt counsellors should establish debt counsellors’ forums. The South African government (in conjunction with the Department of Education and Training) should introduce and implement personal financial management education in both primary and high schools’ curricula. Personal financial management should continue to be offered at adult learning centres as well as other institutions of higher learning. Employers should appoint employee wellness officers who will provide personal finance training to employees. Credit providers should take the responsibility of educating their clients on how to manage their accounts and the importance of paying debts on time. The South African media should also be used by the government and the NCR to educate and inform consumers about finance-related matters. Finally consumers should seek guidance and advice before making financial commitments. The study concluded by suggesting a framework that should help consumers to manage and sustain their financial well-being. / Business Management / DCOM (Business Management)

In South Africa household debt has increased rapidly over the past few years, therefore illustrating the importance of analysing liability usage behaviour of individual members within the household. In order to comprehend the behaviour of South Africans regarding liability usages, this study provides insight into why individuals find it necessary to obtain liability products as well as to indicate whether liability products are used to address the financial needs for the purpose it was developed for. To achieve the aim of this study, it was firstly necessary to develop a theoretical framework for the process of selecting credit products when satisfying financial needs. Secondly, the characteristics and intended usage purposes of different credit products available in South Africa were discussed and a debt classification framework was developed. Finally, data obtained from the Finscope South Africa survey was analysed according to the developed frameworks following a combination of two approaches. Firstly, a qualitative approach was used to identify the different financial needs which are satisfied when using liabilities. The financial needs identified were classified according to Alderfer’s existence relatedness growth (ERG) theory and the factors that have an influence on liability usage. Secondly, a quantitative approach was followed to indicate which financial needs are fulfilled when using different credit products. The results of this study suggest that individuals do not use liabilities only for the purpose what the products were originally developed for. The findings clearly indicated that individuals mainly use liabilities to satisfy basic needs which are classified as existence needs according to Alderfer’s ERG theory. Based on the data analysis a variety of factors such as access to credit and certain demographic characteristics have an influence on liability usage behaviour of individuals. The results further show that individuals mainly use informal, unsecured, short-term loans when satisfying their financial needs which might indicate that South Africans are unable to access formal credit products. / Financial Accounting / M. Phil. (Accounting Science)

Gauteng, one of the nine provinces of South Africa, has a high number of households as compared to the other provinces. Geographically the province has the smallest land size, however it forms the central part of the South African economy. From the total value of credit granted in all provinces, Gauteng has the highest. The province has a high number of registered debt counsellors and an increasing number of consumers who apply for debt counselling because of over-indebtedness. The high number of the registered debt counsellors and consumers seeking debt counselling service gave rise to the purpose of the study. The purpose of the study was to assess the role of debt counselling services provided by debt counsellors to consumers on the one hand, and to also assess whether debt counselling has had a positive effect on the personal financial well-being of consumers who participated in the debt counselling process on the other hand. Furthermore, the study aimed at developing a framework that will empower consumers to be self-sufficient with their finances. From the purpose of the study, two research questions were proposed: (1) How does the debt counselling service provided by debt counsellors assist consumers to manage their finances effectively? (2) Which role does the debt counselling service provided by debt counsellors play in terms of the personal financial well-being of consumers? In an attempt to answer research questions, the theoretical framework of both personal finance and debt counselling were studied. The importance of personal finance, personal financial planning, the evolution of debt counselling, the effectiveness and the ineffectiveness of debt counselling services were identified. A two-phased sequential design (qualitative and quantitative) was used. Fifteen debt counsellors were selected (for the first phase of the study) by making use of a purposeful sampling. These debt counsellors were interviewed and further requested to identify and send questionnaires to consumers whom they have rendered debt counselling service between the years 2007 and 2013. In the second phase of the study, 300 over-indebted consumers were surveyed through a snowball non-probability sampling technique and a response rate of 61% was realised. Data was analysed using ATLAS.ti and the Statistical Package for Social Science (SPSS) for the first and the second data collected respectively. Furthermore, the exploratory factor analysis was used to analyse the data, and the factorability of the data was assessed by means of two statistical measures, namely Bartlett’s test of sphericity and Kaizer Meyer-Olkin. It was observed that most debt counsellors lack financial management knowledge and do not have mechanisms to verify their clients’ financial well-being after debt counselling service had been completed. In addition, there was no evidence that consumers who received debt counselling improved in their financial well-being and that consumers also lacked personal financial management skills. The study concluded that, although debt counselling is essential, it does not necessarily assist consumers to effectively manage their finances. The study purports to suggest the following: Debt counsellors should be subjected to formal financial management training prior to their registration, debt counsellors should provide personal financial management education to their clients, and assess the financial management conduct of their clients once debt counselling process is complete, and debt counsellors should establish debt counsellors’ forums. The South African government (in conjunction with the Department of Education and Training) should introduce and implement personal financial management education in both primary and high schools’ curricula. Personal financial management should continue to be offered at adult learning centres as well as other institutions of higher learning. Employers should appoint employee wellness officers who will provide personal finance training to employees. Credit providers should take the responsibility of educating their clients on how to manage their accounts and the importance of paying debts on time. The South African media should also be used by the government and the NCR to educate and inform consumers about finance-related matters. Finally consumers should seek guidance and advice before making financial commitments. The study concluded by suggesting a framework that should help consumers to manage and sustain their financial well-being. / Business Management / DCOM (Business Management)

In South Africa household debt has increased rapidly over the past few years, therefore illustrating the importance of analysing liability usage behaviour of individual members within the household. In order to comprehend the behaviour of South Africans regarding liability usages, this study provides insight into why individuals find it necessary to obtain liability products as well as to indicate whether liability products are used to address the financial needs for the purpose it was developed for. To achieve the aim of this study, it was firstly necessary to develop a theoretical framework for the process of selecting credit products when satisfying financial needs. Secondly, the characteristics and intended usage purposes of different credit products available in South Africa were discussed and a debt classification framework was developed. Finally, data obtained from the Finscope South Africa survey was analysed according to the developed frameworks following a combination of two approaches. Firstly, a qualitative approach was used to identify the different financial needs which are satisfied when using liabilities. The financial needs identified were classified according to Alderfer’s existence relatedness growth (ERG) theory and the factors that have an influence on liability usage. Secondly, a quantitative approach was followed to indicate which financial needs are fulfilled when using different credit products. The results of this study suggest that individuals do not use liabilities only for the purpose what the products were originally developed for. The findings clearly indicated that individuals mainly use liabilities to satisfy basic needs which are classified as existence needs according to Alderfer’s ERG theory. Based on the data analysis a variety of factors such as access to credit and certain demographic characteristics have an influence on liability usage behaviour of individuals. The results further show that individuals mainly use informal, unsecured, short-term loans when satisfying their financial needs which might indicate that South Africans are unable to access formal credit products. / Financial Accounting / M. Phil. (Accounting Science)