Consumer Empowerment and Market Conduct Working Group (CEMCWG)

Consumer empowerment and market conduct (CEMC) refers to policies and practices designed to promote stable and inclusive financial services via two interconnected pillars:

Empowering consumers to make more informed financial decisions via the provision of information, education and effective avenues for redress

Protecting consumers via effective regulation, supervision and enforcement of market conduct by financial services providers (FSPs).

AFI’s Consumer Empowerment and Market Conduct Working Group (CEMCWG)

A platform to discuss policy and regulatory issues related to consumer empowerment initiatives and market conduct regulations.

Launched in April 2011, CEMCWG aims to support consumer empowerment and protection in order to help secure access to and improve the quality of financial services. Its prime objective is to develop and share a common understanding of lessons learned and cost-effective policy tools, and to promote their adoption at the national level as well as in a broader international context.

Member 
Institutions

Countries

219

Policy changes

Knowledge products

Chairs & Focal points

Chair

Wati Seeto, Reserve Bank of Fiji

Co-Chair I

Natalia Sanchez, Superintendencia de Bancos de la República Dominicana

Gender Focal Point Lead

Ligia Marcela Herrera, Comisión Nacional de Bancos y Seguros de Honduras

Gender Focal Point Co-Lead

Gérard Nsabimana, National Bank of Rwanda

Objectives

Develop a shared understanding of good practices and cost-effective policy tools

Promote policy adoption at national and international levels

The CEMC Working Group achieves these objectives by:

Promoting transparency and disclosure

Encouraging effective sales and marketing practices

Promoting the harmonization of international initiatives

Creating avenues for help and redress

Championing the benefits.

Member Institutions

Agency of the Republic of Kazakhstan for Regulation and Development of Financial Market
Autorité de Contrôle de la Microfinance
Banco Central de Reserva de El Salvador
Banco Central de São Tomé e Príncipe
Banco Central de Timor-Leste
Banco Central del Paraguay
Banco de Moçambique
Banco Nacional de Angola
Bangko Sentral ng Pilipinas
Bangladesh Bank
Bank Al-Maghrib
Bank Negara Malaysia
Bank of Ghana
Bank of Namibia
Bank of Papua New Guinea
Bank of Sierra Leone
Bank of Tanzania
Bank of Uganda
Bank of Zambia
Banque Centrale de la République de Guinée
Banque Centrale de Madagascar
Banque Centrale de Mauritanie
Banque Centrale de Tunisie
Banque Centrale des Etats de l’Afrique de l’Ouest (BCEAO)
Banque Centrale du Congo
Banque de la République du Burundi
Central Bank of Armenia
Central Bank of Egypt
Central Bank of Eswatini
Central Bank of Jordan
Central Bank of Kenya
Central Bank of Lesotho
Central Bank of Liberia
Central Bank of Nigeria
Central Bank of Samoa
Central Bank of Sudan
Central Bank of Seychelles
Central Bank of Solomon Islands
Central Bank of Sri Lanka
Central Bank of The Gambia
Central Bank of the Republic of Uzbekistan
Centrale Bank van Suriname
Comisión Nacional Bancaria y de Valores de México (CNBV)
Comisión Nacional de Bancos y Seguros de Honduras
Direction Générale du Trésor, Ministère de l’Economie et des Finances, Madagascar
Financial Regulatory Commission of Mongolia
Maldives Monetary Authority
Microcredit Regulatory Authority of Bangladesh
Ministère de l’Économie et des Finances de la Côte d’Ivoire
Ministère des Finances et du Budget du Sénégal
Ministère des Finances de la République Tunisienne
Ministry of Finance Eswatini
Ministry of Finance and National Planning Zambia
National Bank of Cambodia
National Bank of Rwanda
National Bank of Tajikistan
National Reserve Bank of Tonga
Nepal Rastra Bank
Palestine Monetary Authority
Reserve Bank of Fiji
Reserve Bank of Malawi
Reserve Bank of Zimbabwe
Reserve Bank of Vanuatu
Superintendencia de Bancos de la República Dominicana
Superintendencia de Bancos del Ecuador
Superintendencia de la Economía Popular y Solidaria de Ecuador
Superintendencia General de Entidades Financieras de Costa Rica (SUGEF)

Subgroups & Planned Activities

Financial Education Subgroup

Increased access and usage of financial services and products is a catalyst for economic empowerment and development for marginalized and vulnerable target groups such as women, the youth and forcibly displaced persons. Financial education means a process of providing people with knowledge, understanding, skills and confidence to make financial decisions and take actions which are appropriate to their circumstances and needs. On the other hand, financial literacy is the outcome of financial education programs which means the knowledge, understanding, skills and confidence that people have to assist them in making sound financial decisions and actions. Financial literacy programs can help to promote financial education programs that are scalable and sustainable and can also help to pave the way for their financial inclusion in the medium to long term.

Planned deliverable: 1) Repository of online financial literacy tools, 2) Update of two knowledge products: Financial Capability Barometer and Financial Education LAC Case Study.

Market Conduct Supervision Subgroup

Until recently, the main objective of a Risk-Based Supervision (RBS) approach was ensuring the safety and soundness of the financial system. Originally used for prudential supervision of banks and insurance companies, RBS has been modified for use in pensions and is now being considered for market conduct supervision. The challenges of supervising consumer protection are the same: deploying sufficient resources, focusing on both present and future risks, preventing risks from escalating and taking early corrective actions. There is still a need to assess the effectiveness of CEMC supervision by regulators especially as it relates to planning and implementation of onsite examinations. To address main challenges related to complaint handling in Central Banks, including (but not limited to) human resource management, feedback mechanism, enabling regulations required for effective complaint handling and effective enforcement mechanisms.

Planned deliverable: 1) Guideline Note on Impact Assessment of Financial Service Providers, 2) Market Conduct Supervision Manual.

Consumer Protection for Innovation Subgroup

This new subgroup was formed with the objective to tackle issues around consumer protection and innovations. As technology advances, so do the risks associated with data breaches and unauthorized access. Robust data protection laws and practices are essential to safeguard consumer information. Encryption, access controls, and transparent data handling are critical components. With the rise of digital transactions, consumers need assurance that their financial assets are secure (e.g. with multi-factor authentication, real-time fraud detection, and secure payment gateways). Innovations often introduce new products and services and ensuring their safety and reliability is paramount. Regulatory oversight, product testing, and clear liability frameworks protect consumers. Financial literacy programs, awareness campaigns, and accessible information empower consumers about their rights, risks, and choices. In an era of complex contracts and terms, consumers must understand what they’re agreeing to. Plain language contracts, disclosure requirements, and transparent pricing foster trust. As AI, Internet of Things (IoT), and blockchain gain prominence, consumer protection must adapt. Ethical AI, data ownership, and smart contract security are pivotal.

Planned deliverable: 1) Webinar series, 2) Focus group on Bank Supervision Assessment (BSA) tool.

Maya Declarations

Consumer protection and empowerment are key to financial inclusion efforts and its aim of ensuring that everyone is included in their country’s financial sector. This is clearly demonstrated in the number of Maya Declaration targets that are categorized under CEMC – including targets on consumer protection, financial literacy and financial education.

Primary thematic area

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

Consumer Empowerment  and Market Conduct

Consumer Protection

Financial Literacy and Financial Education

Maya Declaration targets

Completed

In progress

Completion rate

55%

52%

54%

53%

48%

49%

40,1%

38%

39%

44%

46,5%

CEMC & Gender

According to the Global Findex 2021, 23 percent of unbanked adults globally do not trust the financial system. Of all the unbanked adults, 54 percent are women. Apart from lack of trust in the financial system, women face other challenges that hamper their access to financial services. These include information asymmetry and social norms which pose unique consumer protection issues. It is therefore essential that regulators and policy makers begin to explore gender specific consumer protection practices. These include having laws, regulations, business practices, and information that enable women to use financial services safely and responsibly.