Making digital marketplaces fairer
THE BANGKO Sentral ng Pilipinas (BSP) celebrates Consumer Welfare Month under its timely theme “Making Digital Marketplaces Fairer”.
Digital transformation exhibits no signs of slowing down. This is particularly true for the financial services industry which remains at the forefront in capitalizing on technological innovations in the design and delivery of financial products and services. Financial institutions are able use new technologies that afford them operational agility, allowing them to grow in scale, depth and breadth.
These have resulted in more accessible products as well as convenient and faster transactions. It has also expanded the reach of financial providers, significantly reaching markets that were previously unserved or underserved. These have resulted in many benefits for the consumers in terms of more choices brought about by competition as well as more bespoke and convenient financial products and services. However, there are also attendant risks to consumers that need to be managed to ensure continued trust in the system.
It is with this backdrop that the BSP is further strengthening its efforts to ensure consumer empowerment. An empowered consumer is one that enjoys access to suitable financial products and services in a safe and convenient manner; that has adequate choices and can make informed decisions, that are adequately protected; and that have mechanisms for assistance and redress.
Ensuring consumer empowerment contributes to the long-term health of and trust in the financial system that can reinforce financial stability. A careful and calibrated approach is necessary to ensure that an enabling policy and regulatory environment is in place, complemented with a strong consumer protection framework and supported by broad-based financial education efforts. This is a collective responsibility and shared accountability of policy makers, regulators, financial service providers and consumers alike.
“Ensuring consumer empowerment contributes to the long-term health of and trust in the financial system that can reinforce financial stability. A careful and calibrated approach is necessary to ensure that an enabling policy and regulatory environment is in place, complemented with a strong consumer protection framework and supported by broad-based financial education efforts.”