Customer outcomes approaches are emerging as a promising consumer protection paradigm where the regulatory focus shifts from provider compliance with prescriptive check-the-box rules to customer results or outcomes achieved through provider actions. This shift is highly relevant to emerging markets where unserved and underserved customers are targeted with a range of digital financial services that may expose them to new risks, and where vulnerable customers are disproportionately affected by global crises.
This paper builds on desk research of policy documents by global bodies and regulatory frameworks in 10 countries and aims to help national, regional, and global authorities make financial consumer protection more effective. It addresses demands from emerging market authorities looking to move toward a more customer-centric approach focused on customer outcomes. It outlines how the approach relies on a clear consumer protection mandate that supports the setup of customer outcomes developed through regulator–industry dialogue. It then analyzes key regulatory elements that support the attainment of customer outcomes.
Originally published on CGAP’s website.