Towards Behaviorally-Informed Financial Consumer Protection

>Posted by Center Staff
The following post by Alexandra Fiorillo and Louis Potok, the vice president and an analyst at ideas42, respectively, was recently shared on the CGAP Microfinance Blog. The post presents the field of behavioral research as an important tool for informing consumer protection policy. Some policy-relevant research in the areas of information presentation and transparency has already been conducted, but there remains the need for additional investigations as well as strategic policy implementation, the authors assert. The post begins:
Behavioral economics is the science of human decision-making and how people’s biases and weaknesses can lead them to make harmful economic decisions. Behavioral research in consumer finance can help improve financial consumer protection. As Rafe proposed in the first blog post in the series, if we want to design policies that improve consumers’ outcomes in the marketplace, we need to understand their choices and motivations.
Some policy-relevant behavioral research has already begun…
Read the rest of the article on the CGAP blog.
Have you read? 
Progress toward Improved Client Protection in the Indian Microfinance Sector
An Excellent Resource on Regulating Client Protection: IFMR Trust’s Blog Series