Kincaid: Intermediaries vital for consumer financial well-being
Colm Kincaid, Deputy Governor of the Central Bank of Ireland, highlighted the critical role of financial intermediaries in supporting consumer financial well-being. Speaking at BIPAR in Brussels, he addressed evolving consumer needs and the importance of robust regulation.
Navigating digital complexity
Colm Kincaid, Deputy Governor of the Central Bank of Ireland, underscored the critical role of financial intermediaries in an evolving digital landscape.
He noted that 2,500 of the 3,300 firms supervised by the Central Bank are retail intermediaries, providing essential distribution for insurance, pensions, investments, and mortgages.
Kincaid highlighted that digitalization, while beneficial, also introduces new risks like online fraud, scams, and digital exclusion, as cited in the OECD's 2026 Consumer Finance Risk Monitor.
Intermediaries are crucial for helping consumers navigate increasing financial complexity and distinguishing regulated from unregulated services.
Kincaid supported the Savings and Investments Union, an initiative to mobilize Europe's substantial household savings – €39.5 trillion in financial assets, with €10-12 trillion in cash and deposits – towards productive investment.
He welcomed Personal Investment Accounts to enhance accessibility, aligning with the EU's Retail Investment Strategy and Ireland's updated Consumer Protection Code.
Supervision for a changing market
Kincaid detailed the Central Bank of Ireland's commitment to a fit-for-purpose regulatory and supervisory framework, emphasizing a 'simplification mindset.'
The Central Bank is delivering 21 items in its simplification roadmap without lowering standards and has enhanced its gatekeeping process for intermediaries.
In January 2025, the Central Bank launched a new integrated supervisory approach to gain better risk-based insights across firms, markets, and consumers, especially benefiting intermediaries spanning multiple sectors.
Kincaid outlined key supervisory focus areas for 2026, including a thematic review on customer support and vulnerability, a review of intermediary commission arrangements to manage conflicts of interest, and ensuring firms properly manage risks from unregulated financial activities.
Frontline of trust
Kincaid's address highlights the persistent challenge of balancing financial innovation with robust consumer protection.
The focus on intermediaries is crucial, as they are the frontline in guiding consumers through increasingly complex digital offerings and identifying potential pitfalls.
While the Central Bank of Ireland's proactive reforms are positive, their true impact will hinge on diligent implementation and continuous adaptation to market dynamics.