Banks to fully disclose product risks and terms

The Bank of Russia's analysis of consumer complaints reveals a systemic issue where financial institutions frequently withhold crucial information about their offerings.

This often occurs when individuals engage with services through digital channels, such as mobile applications or bank websites, for products like deposits, loans, or investment vehicles.

Banks tend to emphasize attractive features while downplaying or entirely omitting inherent risks and specific terms.

For instance, some institutions market brokerage and trust management services alongside traditional savings products, despite investment products carrying no guarantee of returns.

This practice, not classified as advertising, previously fell outside existing regulatory frameworks, leaving consumers vulnerable to incomplete disclosures.

The newly approved law directly addresses this gap by mandating comprehensive information provision.

The new legislation specifically targets the use of 'dark patterns' — deceptive design choices that can subtly influence customer decisions.

By regulating the content of information provided across all customer touchpoints, including physical branches, official websites, and mobile applications, the law ensures a consistent and transparent disclosure standard.

This regulatory intervention is designed to empower consumers with the necessary clarity to make genuinely informed financial choices.

It directly counters the previous tendency of credit institutions to obscure less favorable aspects of their products, fostering a more equitable and trustworthy financial environment for all participants.