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The OECD Consumer Finance Risk Monitor provides an analysis of risks facing financial consumers globally. It analyses consumer harm and complaints in five product markets (banking and payments, credit, insurance, investments and pensions) and describes regulatory and supervisory responses to address market conduct risks. It also highlights tools used to monitor risks and presents data on financial scams and frauds.
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Consumers of financial products and services face a complex landscape with a range of evolving issues, opportunities and risks. In this context, it is critical for policymakers, national authorities and international bodies responsible for financial consumer protection to identify and monitor the risks affecting financial consumers, track consumer detriment and share effective approaches that can help address these risks and harms. The Consumer Finance Risk Monitor (the Monitor), developed by the G20/OECD Task Force on Financial Consumer Protection, synthesises the perspectives of 43 jurisdictions on risks to financial consumers in 2022 and 2023. The Monitor covers current and emerging risks stemming from the operating environment; demand-side risks; conduct-related risks; tools used to monitor risks; products and services giving rise to consumer detriment; consumer complaints; and financial scams and frauds. To address risks to financial consumers, policymakers should ensure the full implementation of comprehensive financial consumer protection frameworks in line with the G20/OECD High-Level Principles of Financial Consumer Protection to strengthen supervisory capacity, empower financial consumers and protect those who may be vulnerable.
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Consumers of financial products and services are confronted by a complex and varied landscape that presents a range of evolving risks. In this context, it is critical for policymakers, national authorities and international forums to actively monitor the risks to financial consumers, track consumer detriment and share effective approaches that can help address these risks and harms. The G20/OECD Task Force on Financial Consumer Protection has developed the Consumer Finance Risk Monitor to support these objectives and facilitate global dialogue. This chapter provides an overview of recent economic and financial trends and describes the development and methodology of the Consumer Finance Risk Monitor.
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Certain risks that consumers face stem from the broader economic context in which they operate. This chapter reports the most significant risks stemming from the operating environment identified by responding jurisdictions. These risks include inflation and rising interest rates, financial scams and frauds, new business models and innovation along with financial market volatility.
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Demand-side risks relate to the characteristics and circumstances of consumers themselves. This chapter reports the most significant demand-side risks identified by responding jurisdictions. These risks include lack of financial literacy, over-indebtedness, lack of digital capability and insufficient income. The chapter also discusses additional sources of financial consumer vulnerability.
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Conduct-related risks arise from the behaviour and actions of financial services providers. These risks include poor-value financial products and services, ineffective disclosures, poor financial advice, dishonest sales practices and unsuitable product design. In addition to describing the most significant risks to financial consumers stemming from the conduct of financial institutions, this chapter also highlights the regulatory and supervisory actions taken to address these risks in 2022 and presents information on the tools used to monitor conduct risks in the financial sector.
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Understanding levels of consumer detriment from specific financial products and services offered in different market sectors can help policymakers, regulators and supervisors strengthen financial consumer protection frameworks and address areas of highest concern. This chapter analyses products and services giving rise to consumer detriment in five product markets: banking and payments, credit, insurance, investments and pensions.
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Data gathered through consumer complaints about financial products and services can signal gaps in financial consumer protection frameworks and highlight areas that may need to be addressed by policymakers and regulatory and supervisory authorities tasked with administering and enforcing financial consumer protection laws, regulations and other measures. This chapter reports data on consumer complaints in five product markets: banking and payments, credit, insurance, investments and pensions.
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Financial scams and frauds rose in many jurisdictions during the COVID-19 pandemic, accelerated by increased remote access and widespread adoption of digital products and services. Financial scams and frauds continue to be a major cause of concern among jurisdictions. This chapter reports the most common financial scams and frauds in 2022. It also describes regulatory and supervisory actions taken to address the increasing incidence and complexity of financial scams and frauds.
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