Preface 3

Foreword 4

Executive summary 8

1 Monitoring risks faced by financial consumers 11

1.1. Introduction 12

1.2. Objectives of the Consumer Finance Risk Monitor 12

1.3. Data collection and methodology 13

1.4. Recent economic and financial trends 13

1.5. Financial consumer protection: policy context 18

References 22

Notes 23

2 Risks stemming from the operating environment 25

2.1. Financial scams and frauds 28

2.2. Increasing use of digital technology 31

2.3. Levels of inflation and interest rates 31

2.4. Other risks stemming from the operating environment 32

References 33

Notes 35

3 Demand-side risks 37

3.1. Low levels of financial literacy 40

3.2. High levels of debt 42

3.3. Low levels of digital capability 44

3.4. Other demand-side risks 45

References 45

4 Conduct-related risks 49

4.1. Lack of or ineffective disclosures 52

4.2. Poor advice or failure to perform suitability assessments 54

4.3. Dishonest sales practices 57

4.4. Poor value financial products and services 59

4.5. Unauthorised financial activities 60

4.6. Lack of responsible lending, including aggressive debt collection 61

4.7. Regulatory and supervisory tools used to monitor conduct-related risks 62

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4.8. Effectiveness of monitoring tools 65

4.9. Plans to enhance or add monitoring tools 66

References 67

Notes 69

5 Products and services giving rise to consumer detriment 71

5.1. Banking and payments 72

5.2. Consumer Credit 76

5.3. Insurance 79

5.4. Investments 82

5.5. Pensions 84

References 86

6 Consumer complaints 89

6.1. Aggregate trends in consumer complaints 91

6.2. Banking and payments 92

6.3. Consumer credit 93

6.4. Insurance 95

6.5. Investments 96

6.6. Pensions 97

References 98

Notes 99

7 Thematic risks, policy responses and actions 101

7.1. Current and emerging thematic risks 102

7.2. Common policy responses 104

7.3. Actions for policymakers, regulators and supervisors 106

References 107

Annex A. List of participating jurisdictions 109

Annex B. Methodological notes for selected figures and glossary 113

Glossary 123