Press release
Minister for Finance Michael McGrath welcomes OECD report on Risks Facing Financial Consumers
Published on
Last updated on
Published on
Last updated on
The Minister for Finance Michael McGrath has today welcomed the publication of the OECD’s Consumer Finance Risk Monitor.
The OECD Consumer Finance Risk Monitor sets out the risks facing financial consumers globally in a range of key sectors including banking and payments, credit, insurance, investments and pensions based on input from 43 countries including Ireland. Key risks highlighted in the report include inflation and rising interest rates, financial scams and frauds, and poor-value products and services.
It also describes regulatory and supervisory approaches that are being undertaken by countries across the OECD to monitor and address these risks.
Minister McGrath welcomed publication of the report and said:
"The publication of the OECD’s first Consumer Finance Risk Monitor is an important addition to the work being undertaken at a national, European and international level to understand and address the complex and evolving range of risks facing consumers of financial products and services.
“I welcome the fact that Ireland is one of 43 countries that inputted into this Monitor. The risks highlighted in the Monitor are ones that many consumers of financial products and services in Ireland may also face. It is also welcome to see consumer protection initiatives that have been undertaken in Ireland, including the ban on price walking and financial education campaigns on ‘Buy Now Pay Later’, highlighted in this report.
“The OECD Monitor will help to inform the government’s ongoing focus on strengthening the consumer protection framework including in terms of the work on Push Payment Fraud and on the development of Ireland’s first National Financial Literacy Strategy.”
The full OECD Report is available at - https://www.oecd-ilibrary.org/finance-and-investment/consumer-finance-risk-monitor_047b2ea6-en
The Consumer Finance Risk Monitor (the Monitor), developed by the G20/OECD Task Force on Financial Consumer Protection, synthesises the perspectives of 43 jurisdictions on risks to financial consumers in 2022 and 2023.
The Monitor covers current and emerging risks stemming from the operating environment; demand-side risks; conduct-related risks; tools used to monitor risks; products and services giving rise to consumer detriment; consumer complaints; and financial scams and frauds.
Key findings include:
The agreed benchmark which OECD member countries aim to reach are the G20/OECD High Level Principles on Financial Consumer Protection (“the Principles”).
The updated Principles were adopted by OECD Governments including Ireland on 12 December 2022. Ireland is committed to adhering to these Principles when developing policy at home and contributing to policy development in European and international fora.
The Financial Consumer Protection Roadmap September 2023 published in September 2023 by the Minister for Finance highlights the Principles as the key benchmark for financial consumer protection policies in Ireland and sets out how the cross-cutting principles underpin recent and planned work in the financial consumer protection space.
The National Financial Literacy Strategy is also being developed in line with the OECD Recommendation on Financial Literacy and the Principles. A mapping report on financial education provision in Ireland will be published in Q1 2024 and the National Financial Literacy Strategy will be developed and published by the end of 2024.