IMPROVE DISCLOSURE OF TERMS AND CONDITIONS FOR CUSTOMERS

Potential Actions for Signatories are based on recent industry examples, and are not intended to be used as a compliance checklist given digital financial services standards are still evolving.  Rather, examples of potential actions should be used for a more comprehensive due diligence assessment, and an opportunity for Signatories to develop new products and solutions for customers. Signatories may test, refine and adapt current industry evidence so as to be more relevant to their digital financial services investments, business models, market context, among other factors.
Examples of potential actions:
  • Encourage and support investees to disclose all relevant information transparently to customers in a clear,
    complete and timely manner. This includes pricing by product, in annualized terms (APR/ EIR), terms and
    conditions, customer rights as well as their responsibilities to the provider.
  • Encourage and support investees to proactively educate customers about pricing with the objective of
    promoting financial literacy, capability and informed decision-making.
  • Encourage and support investees to tailor product and pricing disclosure to improve accessibility, simplicity
    and comparability for the specific customer segment.
  • Encourage and support investees to provide disclosures in local, simple language or txt messages; using
    multiple communication channels (verbal, visual and written form), such as through digital/mobile platforms
  • Encourage and support investees to provide key facts in legal consent forms, contracts, marketing materials,
    public disclosure on website, local media/news channels
  • Encourage and support investees to avoid aggressive or push marketing practices; encourage opt-in marketing
    for customers to mitigate risks from behavioral biases.
  • Encourage and support investees to help strengthen consumer financial awareness, including understanding
    key terms & conditions before entering the contract.