![]() ![]() It does so by testing: (1) participants’ design and content preferences (2) the information on which they typically focus (3) questions that arise with regard to the content and design (4) the amount of information that participants can comprehend and process and (5) how different presentations of information alter participants’ decision-making. KFS testing can identify and recommend improvements to the KFS. The purpose of rigorously testing a KFS is to assess how different versions of a KFS influence the understanding of product terms and conditions, as well as the consumer decision-making process. Testing a KFS is an important part of the design process and ensures that a KFS is designed in a way that reduces information asymmetry between consumers and providers of financial services most effectively. The design of a KFS is central to its success. A key facts statement (KFS) is an important tool to improve transparency and disclosure of information for financial products through the adoption of a standardized format that is designed to convey information in a simple and easy-to-understand manner. The paper also discusses a range of implementation considerations.ĭisclosure and transparency are cornerstones of financial consumer protection and are key drivers of trust in the financial system. Examples of regulatory approaches are drawn from country examples and international literature. This paper (1) identifies a range of consumer risks posed by fintech, focusing on four key fintech products (digital microcredit, peer-to-peer lending, investment-based crowdfunding, and e-money) and (2) discusses consumer protection regulatory approaches emerging internationally for policy makers to consider when developing regulatory policy to target such risks. The COVID-19 pandemic further accelerated the widespread transition of consumers to fintech and digital financial services, highlighting their significant benefits while also demonstrating how risks to consumers can increase in times of crisis and economic stress. ![]() ![]() A critical challenge for policy makers is to harness the benefits and opportunities of fintech while managing its risks, including for consumers. Fintech is increasingly recognized as a key enabler for financial sectors worldwide, enabling more efficient and competitive financial markets while expanding access to finance for traditionally underserved consumers. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |