European Commission publishes a behavioural study on the impact of digitalisation of financial services on consumers’ decisions

The study – named “Behavioural study on the digitalisation of the marketing and distance selling of retail financial services” – was conducted by means of behavioural experiments and a survey answered by 8,451 consumers in six countries (Finland, France, Germany, Lithuania, Romania and Spain).

According to the European Commission, these are some of the study’s main findings:

• Consumers make better choices when information is provided to them upfront and saliently, at the right time and in a format that helps comparison. Information presented in one go, in a simple and structured comparison table particularly helps vulnerable consumers and users of smartphones.

• Making speedy purchasing decisions can cause consumers to make bad decisions. The study shows that slowing down the process improves consumer decision.

Moreover, it suggests ways to improve how consumers are informed when looking to obtain financial products on the internet, such as consumer credit or bank accounts.

Findings from the study will inform the European Commission’s evaluation of the Directive on credit agreements for consumers (Directive 2008/48/EC) and the Directive concerning the distance marketing of consumer financial services (Directive 2002/65/EC). This evaluation includes a public consultation, whereby the Commission invites all relevant stakeholders to express their opinion on the relevance, pertinence and effectiveness of the Directive. The feedback period ends on 2 July.

The ‘Behavioural study on the digitalisation of the marketing and distance selling of retail financial services’ can be found on the European Commission’s website.