Kincaid stresses intermediary role in evolving consumer finance
Deputy Governor Colm Kincaid highlighted the critical role of financial intermediaries in meeting evolving consumer needs and navigating digital risks. Speaking at a BIPAR event, he emphasized their contribution to consumer protection and mobilizing household savings towards productive investment.
Digital shifts and savings mobilization
Consumer needs and expectations are rapidly evolving, driven by technology that increases demand for faster services, higher quality information, and diverse advice sources, including social media and AI.
While largely positive, this digitalisation introduces new risks such as online fraud, scams, and digital exclusion, as highlighted in the OECD's 2026 Consumer Finance Risk Monitor.
Retail intermediaries are crucial for helping consumers navigate this complexity by providing professional advice and acting as trustworthy, regulated entities.
They also play a critical role in mobilising Europe's substantial household savings towards productive investment, supporting innovation, growth, and a sustainable economy.
The Central Bank of Ireland supports the Savings and Investments Union and the development of Personal Investment Accounts, aiming to make investing more accessible for ordinary savers and better position retail investors for the future.
Modernizing protection and oversight
The regulatory framework must provide consumer confidence and be fit for purpose to support greater retail participation.
The EU's Retail Investment Strategy aims for a coherent cross-sectoral framework.
Ireland's new Consumer Protection Code strengthens firm requirements for acting in consumers' best interests, effective informing, digital design, managing conflicts, and treating vulnerable consumers.
The Central Bank ensures these standards are met and is simplifying its regulatory approach.
An integrated supervisory approach, launched in January 2025, enhances risk-based insights across firms, markets, and consumers, proving especially beneficial for intermediaries.
Trust, commissions, and the unregulated
Kincaid's speech underscores the Central Bank's proactive stance on consumer protection in a rapidly changing financial landscape.
The explicit focus on commissions and unregulated activities reveals a clear intent to address areas of potential consumer detriment and market opacity.
These measures are crucial for maintaining trust and ensuring fair outcomes for a digitally empowered but potentially vulnerable public.