Consumers of financial products and services experience a fast-evolving and complex landscape. The rise in financial scams and frauds poses material threats to consumer confidence and financial well-being, while the rapid digitalisation of the financial sector is transforming how consumers access, use and manage financial products and services, creating both new benefits and challenges. At the same time, macroeconomic conditions may increase borrowing costs and put pressure on many household budgets. When these pressures interact with pre-existing vulnerabilities affecting certain households, such as low levels of financial literacy and high debt levels, they amplify risks to financial well-being. These can be compounded by risks stemming from market conduct, such as unclear disclosures and misleading financial advice.
This second edition of the Consumer Finance Risk Monitor examines global trends and risks affecting financial consumers based on inputs from 60 countries around the world, across five product sectors: banking and payments, credit, insurance, investments and pensions. The report also describes financial consumer protection regulatory and supervisory actions, as well as recommendations on strengthening financial consumer protection, enhancing market conduct supervision and enforcement, and empowering consumers.
