Consumer protection has far-reaching implications for many activities in the financial services sector—from product development and terms of service, to the customer experience throughout the sales and product life cycle. Consumer protection concerns may also affect markets in which organizations operate—their geographical distribution, customer base and the products offered.
Regulations designed to protect consumers could encourage (or force) organizations to fundamentally reorganize processes and structures.
In some countries, where regulation may be less of a driver for change, organizations are recognizing that consumer protection is important from a business perspective. It can, in fact, help improve customer experience and satisfaction and potentially create a point of differentiation when compared with competitors.
Whatever the impetus, consumer protection is now considered among financial institutions’ top strategic and cultural drivers—a business issue to be considered at the board level, as well as across operations and functions. An organization’s success may depend on how effectively it can enhance consumer protection processes.
A challenging framework
Assessing a business line’s or entity’s consumer risks profile can be a challenge for even the most experienced of institutions. Organizations may demonstrate that they effectively identify and manage the potential risks that may arise throughout the life cycle of products, services and supporting infrastructure.
Our insight covers:
- An overview of the Central Bank of the UAE’s (CBUAE) Consumer Protection Regulation (circular no: 8/2020, dated 25/11/2020)
- Questions organizations should be asking themselves to assess and manage consumer protection risks
- KPMG’s methodologies and approaches to support entities as they align with the CBUAE’s Consumer Protection Regulation and international leading practices