- Between 70-90% of central banks and financial supervisors have a role in consumer protection, financial education, and inclusion. - The two main obstacles to access of basic financial services identified are financial illiteracy and poverty/low income. - Less than 40% of countries have policies like a right to open a bank account, usury rate limits, or microcredit through mobile phones. - Almost 70% of countries have databases that track individuals' credit information.

1. CONSUMER PROTECTION,
FINANCIAL EDUCATION AND
INCLUSION, OMBUDSMAN: A
BENCHMARK
JUNE 2018
DGEI – DERIE - IBFI
This presentation summarizes the answers of 25 central banks to a
questionnaire for a seminar organized by the IBFI, dedicated to Consumer
Protection, Financial Education and Inclusion, with a focus this year on
mediation practices (26th-30th March 2018).

2. BETWEEN 70% TO 90% OF NATIONAL CENTRAL BANKS AND FINANCIAL
SUPERVISORS ARE INVOLVED IN CONSUMER PROTECTION, FINANCIAL EDUCATION
AND INCLUSION
2
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Has the central bank (or your authority) a
legal mission of financial services
consumers protection ?
Has the central bank (or your authority) a
role in the financial education of the
public ?
Has the central bank (or your authority) a
role in the financial inclusion ?
Figure 1: The central bank or prudential supervisor action

3. 3
I. FINANCIAL INCLUSION

4. 4
FINANCIAL ILLITERACY, THEN POVERTY AND LOW INCOME ARE THE TWO MAIN
OBSTACLES IDENTIFIED TO THE ACCESS TO BASIC FINANCIAL SERVICES
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
Difficulties related to the
identification of
individuals/customers
The small number of
bank branches
Financial illeteracy Poverty and low income The absence of any
obligation for banks to
open a bank account to a
natural person
Figure 2: What are the main obstacles to access to
basic banking services in your country?

5. 5
LESS THAN 40% OF COUNTRIES PUT IN PLACE ONE OF THE FOLLOWING FINANCIAL
INCLUSION POLICIES: RIGHT TO OBTAIN THE OPENING OF A BANKING ACCOUNT ;
USURY LIMIT RATE ; MICROCREDIT THROUGH MOBILE
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
Does there exist a "right to obtain the
opening of a banking account" ?
Is there any legal definition and a
calculation method for the usury limit
rate ?
Does microcredit through mobile
phones was developped in your
country?
Figure 3: Managing financial inclusion

6. 6
ALMOST 70% OF COUNTRIES HAVE DEVELOPED DATABASES WHICH MAKE A
CENSUS OF INDIVIDUAL CREDITS
0%
10%
20%
30%
40%
50%
60%
70%
80%
Is there databases for the oversight of
incidents when individuals use non-
cash means of payment ?
Is there databases for the oversight of
individuals credits pay-back incidents ?
Does there exist databases making the
census of individuals credits ?
Figure 4: Managing financial inclusion

7. 7
II. CONSUMER PROTECTION

8. 8
A LARGE MAJORITY OF COUNTRIES – MORE THAN 75% - PUT IN PLACE LEGAL RULES
ADDRESSING PRE-CONTRACTUAL RELATIONS, ENTERING INTO CONTRACT,
PERFORMANCE, COMPLAINTS AND CLOSURE OF THE CONTRACT
72%
73%
74%
75%
76%
77%
78%
79%
80%
81%
82%
Sale process
(advertising, pre-
contractual
information, business
practices, advice)
Entering into a
contract
Contract performance Complaints handling Closing the contract
Figure 5: In your country, what is the scope of the
consumer protection rules in the business cycle ?

9. 9
BETWEEN 80 TO 90% OF CENTRAL BANKS AND SUPERVISORS RECEIVE CONSUMERS’
COMPLAINTS AND CONTROL BUSINESS PRACTICES. ONLY 50% OF THE AUTHORITIES WARN
THE PUBLIC AGAINST DUBIOUS PRODUCTS OR MISBEHAVING COMPANIES
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Does a prudential control of
bussiness practices exist ?
May your Authority receive
complains and claims from the
consumers against the credit
institutions ?
Periodical alerts and warnings
against some dubious financial
products or institutions are they
broadcasted among the general
public ?
Figure 6: The central bank or prudential supervisor action

10. 10
III. ALTERNATIVE DISPUTES RESOLUTION

11. 11
54% OF THE ANSWERING COUNTRIES HAVE A MEDIATION MECHANISM. 33% OF
COUNTRIES HAVE A SINGLE OMBUDSMAN IN CHARGE OF THE 3 FINANCIAL
SECTORS (BANKS, INSURANCES, INVESTMENT FIRMS).
0%
10%
20%
30%
40%
50%
60%
70%
80%
Is there any Mediation
framework in your
country ?
Was this framework
created by Law?
Is there a common
Ombudsman for the
three sectors of banking,
insurance and
investment services?
Do several Ombudsman
exist for the following
financial sectors:
banking, insurance,
investment services?
Figure 7: Mediation for Consumers

12. 12
IN 60% OF COUNTRIES THE OMBUDSMAN IS A PUBLIC BODY
0%
10%
20%
30%
40%
50%
60%
70%
Is the Ombudsman a
public authority?
Is it possible for the
Ombudsman to be a
private actor?
Is the Ombudsman
independant from the
firms and professional
associations of the
concerned financial
sector?
Is it possible for the
Ombudsman to be part
of a professional
association of the
concerned financial
sector?
Is it possible for the
Ombudsman to be
appointed by a firm
whose commercial or
financial service is
concerned by the
litigation?
Is it possible for the
Ombudsman to be
paid by a firm whose
commercial or
financial service is
concerned by the
litigation?
Figure 8: Mediation for Consumers

13. 13
IN 80% OF COUNTRIES THE MEDIATION IS NOT A COMPULSORY REMEDY
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
Is the mediation a
compulsory remedy?
When mediation is not
compulsory is the consent of
both parties necessary?
Is the mediation free of cost
for the consumers and the
professionals?
Figure 9: Organizational features of the Mediation
Is the decision of the
Ombudsman
compulsory for both
parties?

14. 14
OMBUDSMAN’S DECISIONS ARE CONFIDENTIAL IN A MINORITY OF COUNTRIES
(43%). IN 53% OF COUNTRIES THE OMBUDSMAN COULD TRANSFER THE CASE
TO COURT OF JUSTICE IN ORDER TO SANCTION A PROFESSIONAL.
0%
10%
20%
30%
40%
50%
60%
Is the Ombudsman's decision confidential? Is it possible for the Ombudsman to transmit some
information to a public authority in order to sanction a
professional?
Figure 10: Organizational features of the Mediation

15. 15
ONLY HALF OF THE COUNTRIES HAVE AN AUTHORITY FOR CERTIFYING AND
SUPERVISING OMBUDSMEN. IT IS EVEN MORE RARE – 43% - FOR SUCH AN
AUTHORITY TO BE ENFORCED WITH THE POWER OF SANCTIONING
OMBUDSMEN
38%
40%
42%
44%
46%
48%
50%
52%
Is there an authority to certify the Ombudsman or to
set the list of Ombudsman?
Is this authority in charge of sanctioning an
Ombudsman?
Figure 11: Organizational features of the Mediation

16. 16
A MINORITY OF OMBUDSMEN PUBLISH PUBLIC REPORTS AND DATA RELATED TO
THEIR DECISIONS, THE RATE OF SATISFACTION OF PARTIES AND SOME
ELEMENTS OF THEIR JURISPRUDENCE
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
Does the Ombudsman publish data
related to the rates of his positive and
negative opinions?
If yes do the published data deal with
the rates of the Ombusdman's opinions
followed by the parties?
Does the Ombudsman publish some
elements of his jurisprudence on an
anonymous format in order to inform
the public?
Figure 12: Advertising Ombudsman's decisions

17. 17
THANK YOU!
This year the participating central banks were from Brazil, Bulgaria, Central Africa
States’ Bank, Croatia, Czech Republic, Democratic Republic of Congo, Ethiopia, Georgia,
Guinea, Hong-Kong, India, Indonesia, Jordan, Lebanon, Macedonia, Morocco, Mexico,
Mongolia, Philippines, Russia, Slovakia, Spain, Turkey, Uganda, Ukraine.