Online sales of financial products and services: Bank of Russia’s consultation paper on regulation approaches
The Bank of Russia suggests establishing rules for financial institutions’ communication with consumers in the course of online deposit and loan (microloan) transactions. Financial institutions shall provide clear and comprehensive information about both the main financial product and additional services, as well as notify customers of related risks.
The regulator presents its recommendations in the consultation paper ‘Approaches to Regulating Online Sales Channels to Protect Financial Consumers’.
The Bank of Russia has analysed online sales at banks and microfinance organisations, carried out consumer satisfaction surveys about the process of loan, microloan and deposit transactions, and studied foreign experience in online sales regulation.
According to the findings of the regulator’s studies, there are some systemic problems in the market that are limiting consumer rights. Better financial inclusion for various categories of customers often involves new types of violations and malpractices.
The Bank of Russia suggests a number of regulatory changes in order to enhance the quality of services provided in the course of financial transactions and online sales and protect consumers against financial institutions’ unfair practices.
The Bank of Russia welcomes any suggestions and comments on the paper through 31 January 2024.