Consumer Protection In The Digital Era

"All banking customer groups now prefer digital channels", concludes the October 2019 McKinsey report, "Inflection point: Seven transformative shifts in US retail banking".

Rising consumer expectations for digital banking convenience is requiring banks and financial technology companies (fintechs) to explore ways to improve customer service in the digital era. However, one of the biggest stumbling blocks to achieving this goal is legislation, and particularly, consumer protection requirements which are mainly based on disclosure obligations. Banks and fintechs focused on digitally engaging with consumers would benefit from understanding the legislative frameworks governing consumer protection, and the impediments they may represent to innovation.