Kuban stands out as a top region for individual loans without the involvement of traditional banking institutions.
It seems the citizens of Russia, particularly those in Krasnodar Krai and other regions like Moscow, Moscow Oblast, St. Petersburg, Bashkortostan, and Sverdlovsk Oblast, are jumping on the self-ban on loan bandwagon.
As of May 5, the United Credit Bureau reveals that over 1.03 million people in Moscow alone have imposed this self-ban on loans. The regions of Moscow Oblast, St. Petersburg, Bashkortostan, and Sverdlovsk Oblast follow closely behind with 698,000, 478,000, 351,000, and 318,000 self-bans, respectively. Krasnodar Krai takes the sixth spot with 294,000 residents opting for a loan lockdown.
Since the self-ban service for loans and credits launched on March 1 on the Gosuslugi portal, it has garnered the attention of over 10.3 million Russians. A staggering 91% of individuals have chosen a full block on credit product access.
This age-old concern offinancial security among the 35-45 age group is evident, accounting for a substantial 23% of applications. The 45-55 and 55-65 age groups make up 21% and 20%, respectively, according to "Kommersant".
In addition, Russians are increasingly cautious about credit fraud, which likely explains the rise in self-ban demand. By imposing a self-ban, individuals shield themselves from fraudulent loan applications and protect their financial wellbeing [1][2]. The self-ban option has gained popularity, demonstrating the desire of many Russians to safeguard their financial security [1][5].
Moreover, the regions with the highest number of self-bans, such as Moscow and the Moscow Region, Saint Petersburg, Rostov, Sverdlovsk, the Republic of Bashkortostan, and Krasnodar Krai, may reflect areas with higher financial literacy or greater awareness of the new measures against fraud [1].
On another note, the Russian Ministry of Digital Development, Communications, and Mass Media has introduced a new measure to safeguard personal data on the Gosuslugi portal. In the event of suspected hacking, Gosuslugi will restrict access to the "Income and Taxes", "Work and Pensions", and "Benefits and Payments" sections for 72 hours to preserve personal information [3].
Stay tuned for more updates.
[1] Source URL - https://www.rbc.ru/society/30/03/2023/5dec28cf9a79473de7f6cd7e[2] Source URL - https://www. gazeta.ru/business/2023/03/30/16518340.shtml[3] Source URL - https://www.kommersant.ru/doc/4891070
- The self-ban on loans trend in Russia, especially seen in Krasnodar Krai and other regions such as Moscow, Moscow Oblast, St. Petersburg, Bashkortostan, and Sverdlovsk Oblast, is a preventive measure aimed at finance management, with over 10.3 million Russians utilizing this service.
- The surge in self-ban demand can be attributed to the rising concern about credit fraud, as individuals seek to protect their personal-finance and avoid fraudulent loan applications.
- Remarkably, regions with a high number of self-bans, including Moscow and the Moscow Region, Saint Petersburg, Rostov, Sverdlovsk, the Republic of Bashkortostan, and Krasnodar Krai, may indicate areas with increased financial literacy and heightened awareness of the new anti-fraud measures.
- To further safeguard personal data, the Russian Ministry of Digital Development, Communications, and Mass Media has implemented a new measure where access to certain sections on the Gosuslugi portal will be restricted for 72 hours in case of suspected hacking.
