Empowering Financial Consumers: Navigating Risk, Enhancing Literacy, Promoting Inclusion

Empowering and Protecting Financial Consumers: Navigating the Pathway to Well-being

Supporting financial consumers through robust protection measures is pivotal in ensuring their financial well-being and promoting frer, more inclusive financial markets. The OECD advances research and policy analysis while facilitating international collaboration among policymakers and stakeholders for implementing effective policies that enhance financial consumer protection, education, and inclusion.

Risks Facing Financial Consumers: A Comprehensive Overview

Our Consumer Finance Risk Monitor evaluates risks across 43 economies worldwide, highlighting potential vulnerabilities such as inflation and rising interest rates, fraudulent schemes, scams, and poor-value products. The most prevalent forms of fraud involve misleading consumers to share personal information 86 of respondents or enticing them with fake investment opportunities that m to solicit money transfers, investments or bogus insurance policies 84.

Understanding Financial Scams: A Statistical Insight

Pie chart showing:

• 38 were victims of schemes designed to induce monetary transactions

• 29 had their personal information compromised through fraudulent means

• 16 fell prey to fraudsters impersonating banks, financial advisors, or other service providers

• 7 experienced debitcredit card fraud

Lifelong Financial Literacy: The Need for Knowledge and Skills

With high inflation and escalating interest rates posing significant challenges, it's crucial that individuals possess adequate knowledge about personal finance. The International Survey on Adult Financial Literacy conducted by the OECD and INFE reveals that while most adults have a basic grasp of financial concepts, their overall literacy levels need substantial improvement to cope with difficult economic circumstances.

Digital Finance: Navigating Opportunities and Risks

In today's digital landscape, there is an expanding range of consumer financial services avlable through new products, service providers, and increased automation. However, digital financial literacy remns a low average across economies, especially among those with lower incomes or education levels. Notably, many avoid sharing sensitive information like PINs and passwords but may inadvertently expose themselves to risks by using public Wi-Fi for online shopping or fling to recognize the non-legal status of cryptocurrencies as ter.

Sustnable Finance: Aligning Values and Risk Management

As sustnable finance plays a crucial role in addressing climate objectives, it is essential that governments educate consumers on the nuances of new products such as green bonds, ESG funds, and digital assets. The report Financial Consumers and Sustnable Finance offers policy considerations for regulators responsible for overseeing financial consumer protection agnst risks like greenwashing.

Latest Insights: Navigating Financial Challenges

The OECD continues to provide valuable insights through blog posts, videos, and reports that delve into various aspects of personal finance management, including planning for retirement, understanding sustnable investment opportunities, and enhancing digital literacy skills. These resources m to empower consumers by equipping them with knowledge necessary to navigate economic complexities.

Country-Specific Initiatives: Fostering Global Co-operation

The OECD International Network on Financial Education INFE serves as a global platform promoting international cooperation among policymakers and stakeholders for financial education. Through GMW, an annual awareness campgn targeting young people from an early age, INFE underscores the importance of fostering lifelong learning about personal finance management.

Engaging in a Multi-faceted Approach

The OECD's comprehensive approach to supporting financial consumers involves addressing protection measures, enhancing literacy levels through educational campgns and resources, and promoting global collaboration. By tackling risks proactively and providing accessible knowledge on managing finances responsibly across various life stages, the organization strives to contribute significantly towards creating inclusive, resilient, and financially empowered societies worldwide.

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