{"id":268,"date":"2023-07-12T08:20:37","date_gmt":"2023-07-12T08:20:37","guid":{"rendered":"https:\/\/dvararesearch.com\/centre-for-customer-protection\/?page_id=268"},"modified":"2023-08-31T13:06:08","modified_gmt":"2023-08-31T13:06:08","slug":"introduction","status":"publish","type":"page","link":"https:\/\/dvararesearch.com\/centre-for-customer-protection\/introduction\/","title":{"rendered":"Introduction"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-page\" data-elementor-id=\"268\" class=\"elementor elementor-268\" data-elementor-post-type=\"page\">\n\t\t\t\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-a0707a3 elementor-section-full_width elementor-section-stretched elementor-section-height-min-height elementor-section-height-default elementor-section-items-middle\" data-id=\"a0707a3\" data-element_type=\"section\" data-settings=\"{&quot;background_background&quot;:&quot;classic&quot;,&quot;stretch_section&quot;:&quot;section-stretched&quot;}\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-d1487e9\" data-id=\"d1487e9\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-element elementor-element-2bb2fa4 elementor-widget elementor-widget-heading\" data-id=\"2bb2fa4\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<style>\/*! elementor - v3.15.0 - 09-08-2023 *\/\n.elementor-heading-title{padding:0;margin:0;line-height:1}.elementor-widget-heading .elementor-heading-title[class*=elementor-size-]>a{color:inherit;font-size:inherit;line-height:inherit}.elementor-widget-heading .elementor-heading-title.elementor-size-small{font-size:15px}.elementor-widget-heading .elementor-heading-title.elementor-size-medium{font-size:19px}.elementor-widget-heading .elementor-heading-title.elementor-size-large{font-size:29px}.elementor-widget-heading .elementor-heading-title.elementor-size-xl{font-size:39px}.elementor-widget-heading .elementor-heading-title.elementor-size-xxl{font-size:59px}<\/style><h1 class=\"elementor-heading-title elementor-size-default\">OUR PERSPECTIVE<\/h1>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-7f11e70 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"7f11e70\" data-element_type=\"section\" data-settings=\"{&quot;background_background&quot;:&quot;classic&quot;}\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-6e086dd\" data-id=\"6e086dd\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t\t<section class=\"elementor-section elementor-inner-section elementor-element elementor-element-20d016a elementor-reverse-mobile elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"20d016a\" data-element_type=\"section\" id=\"Untiring\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-50 elementor-inner-column elementor-element elementor-element-58915b8\" data-id=\"58915b8\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-element elementor-element-098c2cc elementor-widget elementor-widget-text-editor\" data-id=\"098c2cc\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<style>\/*! elementor - v3.15.0 - 09-08-2023 *\/\n.elementor-widget-text-editor.elementor-drop-cap-view-stacked .elementor-drop-cap{background-color:#69727d;color:#fff}.elementor-widget-text-editor.elementor-drop-cap-view-framed .elementor-drop-cap{color:#69727d;border:3px solid;background-color:transparent}.elementor-widget-text-editor:not(.elementor-drop-cap-view-default) .elementor-drop-cap{margin-top:8px}.elementor-widget-text-editor:not(.elementor-drop-cap-view-default) .elementor-drop-cap-letter{width:1em;height:1em}.elementor-widget-text-editor .elementor-drop-cap{float:left;text-align:center;line-height:1;font-size:50px}.elementor-widget-text-editor .elementor-drop-cap-letter{display:inline-block}<\/style>\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-c8fb1dd elementor-widget elementor-widget-text-editor\" data-id=\"c8fb1dd\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p>ADVOCACY FOR FINANCIAL CUSTOMER PROTECTION<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-834c37f elementor-widget elementor-widget-text-editor\" data-id=\"834c37f\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p>Dvara Research is uniquely positioned to study the state of financial customer protection in India, and to devise solutions that will enhance customer experience and trust. We have over a decade of experience in studying and documenting the financial lives of low-income households. We have developed deep expertise in understanding the structure of the Indian financial system and the regulatory frameworks that govern it. In our thinking, we strive to also maintain a sensitivity towards the imperative for business model sustainability faced by financial service providers.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-8194941 elementor-widget elementor-widget-html\" data-id=\"8194941\" data-element_type=\"widget\" data-widget_type=\"html.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<button id=\"myButton\" class=\"shbt\" onclick=\"myFunction()\">See More<\/button>\r<script>\rfunction myFunction() {\r var element = document.getElementById(\"sechide\");\r element.classList.toggle(\"secshow\");\r var btn = document.getElementById(\"myButton\");\r\r    if (btn.value == \"See Less\") {\r      btn.value = \"See More\";\r      btn.innerHTML = \"See More\";\r    } else {\r      btn.value = \"See Less\";\r      btn.innerHTML = \"See Less\";\r    }\r}\r<\/script>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t<div class=\"elementor-column elementor-col-50 elementor-inner-column elementor-element elementor-element-9ad9144\" data-id=\"9ad9144\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-element elementor-element-1b9298a elementor-widget elementor-widget-image\" data-id=\"1b9298a\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<style>\/*! elementor - v3.15.0 - 09-08-2023 *\/\n.elementor-widget-image{text-align:center}.elementor-widget-image a{display:inline-block}.elementor-widget-image a img[src$=\".svg\"]{width:48px}.elementor-widget-image img{vertical-align:middle;display:inline-block}<\/style>\t\t\t\t\t\t\t\t\t\t\t\t<img decoding=\"async\" src=\"https:\/\/dvararesearch.com\/centre-for-customer-protection\/wp-content\/uploads\/elementor\/thumbs\/23-1-qam1mki7mvnjiqqwqz790g9nnywxajc10pq14pr8ts.jpg\" title=\"Advocacy\" alt=\"Advocacy\" loading=\"lazy\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-inner-section elementor-element elementor-element-e6f2b5b elementor-reverse-mobile elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"e6f2b5b\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-inner-column elementor-element elementor-element-233c8d2\" data-id=\"233c8d2\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-element elementor-element-9c4810e elementor-widget elementor-widget-text-editor\" data-id=\"9c4810e\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-inner-section elementor-element elementor-element-5e3edb3 elementor-reverse-mobile elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"5e3edb3\" data-element_type=\"section\" id=\"sechide\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-inner-column elementor-element elementor-element-20911bf\" data-id=\"20911bf\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-element elementor-element-2e01a58 elementor-widget-laptop__width-initial elementor-widget elementor-widget-text-editor\" data-id=\"2e01a58\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p>As such, we occupy a unique vantage point in the financial inclusion ecosystem and possess the ability to identify levers of financial customer protection that can be commercially viable and regulatorily compliant.<\/p><figure id=\"attachment_4515\" aria-describedby=\"caption-attachment-4515\" style=\"width: 427px\" class=\"wp-caption alignleft\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-4515 \" src=\"https:\/\/dvararesearch.com\/centre-for-customer-protection\/wp-content\/uploads\/2023\/08\/dvara-infographicc.png\" alt=\"Advocacy for financial customer protection\" width=\"427\" height=\"695\" srcset=\"https:\/\/dvararesearch.com\/centre-for-customer-protection\/wp-content\/uploads\/2023\/08\/dvara-infographicc.png 795w, https:\/\/dvararesearch.com\/centre-for-customer-protection\/wp-content\/uploads\/2023\/08\/dvara-infographicc-184x300.png 184w, https:\/\/dvararesearch.com\/centre-for-customer-protection\/wp-content\/uploads\/2023\/08\/dvara-infographicc-630x1024.png 630w, https:\/\/dvararesearch.com\/centre-for-customer-protection\/wp-content\/uploads\/2023\/08\/dvara-infographicc-768x1249.png 768w\" sizes=\"auto, (max-width: 427px) 100vw, 427px\" \/><figcaption id=\"caption-attachment-4515\" class=\"wp-caption-text\"><strong>Illustration 1.1<\/strong><\/figcaption><\/figure><p><span style=\"color: var( --e-global-color-text );\">G<\/span><span style=\"color: var( --e-global-color-text );\">iven this background, in December 2021, Dvara Research launched the Customer Protection Program to design, test, and scale customer protection solutions\u00a0for meaningful financial inclusion in partnership with stakeholders. We are confident that we can become an ideal partner for stakeholders in co-creating solutions that will build customer trust and customer loyalty, thus benefiting both customers and financial service providers. We also look forward to creating significant momentum towards regulatory policies that promote customer protection.<\/span><\/p><p>Our past work is a testament to our optimism and\u00a0<span style=\"color: var( --e-global-color-text );\">confidence. In 2013, Dvara Research proposed a theoretical framework<span class=\"tooltips \" style=\"\" title=\"&lt;a href=&quot;https:\/\/www.dvara.com\/research\/wp-content\/uploads\/2013\/06\/A-New-Framework-for-Financial-Consumer-Protection-in-India-IFF-Position-Paper.pdf&quot; target=&quot;_blank&quot; rel=&quot;noopener&quot;&gt;Sahasranaman, George, Rajendran &amp;amp; Prasad, 2013, A new framework for financial customer protection in India- https:\/\/www.dvara.com\/ research\/wp-content\/uploads\/2013\/06\/A-New-Framework-for-Financial-Consumer-Protection-in-India-IFF-Position-Paper.pdf&lt;\/a&gt;\"><strong>[1]<\/strong><\/span> for financial customer protection in India, which called for a significant shift from a disclosure-driven approach where the onus is on the customer to make the right choice, to one that is based on suitability, where the onus is on the financial service provider to ensure that the appropriate advice or product has been provided to customers. The \u2018Right to Suitability\u2019 was also articulated as one of the six vision statements in the Mor Committee<span class=\"tooltips \" style=\"\" title=\"&lt;a href=&quot;https:\/\/rbidocs.rbi.org.in\/rdocs\/PublicationReport\/Pdfs\/CFS070114RFL.pdf&quot; target=&quot;_blank&quot; rel=&quot;noopener&quot;&gt;RBI, 2014, Committee on comprehensive financial services for small businesses and low-income households- https:\/\/rbidocs.rbi.org.in\/rdocs\/ PublicationReport\/Pdfs\/ CFS070114RFL.pdf&lt;\/a&gt;&lt;\/span&gt;&lt;span style=&quot;color: var( --e-global-color-text );&quot;&gt;\"><strong>[2]<\/strong><\/span> constituted by the Reserve Bank of India (RBI) in 2013, for which we served as the technical secretariat.\u00a0<\/span><\/p><p>The Right to Suitability was later enshrined in RBI\u2019s \u2018Charter of Customer Rights\u2019 released in 2015. We have also made several contributions to the conceptualisation of the Digital Personal Data Protection Bill and its contributions were recognised in the Srikrishna Committee Report (2018).<span class=\"tooltips \" style=\"\" title=\" &lt;a href=&quot;https:\/\/www.meity.gov.in\/writereaddata\/files\/Data_Protection_Committee_Report.pdf&quot; target=&quot;_blank&quot; rel=&quot;noopener&quot;&gt;MEITY, 2018, A free and fair digital economy, Committee of experts under the chairmanship of Justice B.N.Srikrishna- https:\/\/www.meity.gov.in\/ writereaddata\/files\/Data_Protection _Committee_Report.pdf&lt;\/a&gt;\"><strong>[3]<\/strong><\/span>\u00a0Lastly, Dvara Research has also collaborated with policy think tanks such as NITI Aayog to create customer protection toolkits, and conceptualise mechanisms to simplify redress in the financial sector.<\/p><p>Over the last three years, Dvara Research has been building a portfolio of action research projects, where the goal has been to validate or test the solutions that our theoretical work points to. A few examples are shown in <strong>Illustration 1.1<\/strong>.<\/p><p>Dvara Research\u2019s current work under the Customer Protection Program is unfolding in a similar manner and is significantly adding to its existing portfolio of projects.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-c6580b6 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"c6580b6\" data-element_type=\"section\" data-settings=\"{&quot;background_background&quot;:&quot;classic&quot;}\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-9bb188c\" data-id=\"9bb188c\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t\t<section class=\"elementor-section elementor-inner-section elementor-element elementor-element-50890a1 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"50890a1\" data-element_type=\"section\" id=\"Comprehensive\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-50 elementor-inner-column elementor-element elementor-element-979779e\" data-id=\"979779e\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-element elementor-element-d494862 elementor-widget elementor-widget-image\" data-id=\"d494862\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<img decoding=\"async\" src=\"https:\/\/dvararesearch.com\/centre-for-customer-protection\/wp-content\/uploads\/elementor\/thumbs\/18-e1691501186225-qam1wylz6xvnvjni2gwrktv43bp0e2l745da4uck1c.jpg\" title=\"COMPREHENSIVE CUSTOMER PROTECTION\" alt=\"COMPREHENSIVE CUSTOMER PROTECTION\" loading=\"lazy\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t<div class=\"elementor-column elementor-col-50 elementor-inner-column elementor-element elementor-element-6eaa054\" data-id=\"6eaa054\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-element elementor-element-8189437 elementor-widget elementor-widget-text-editor\" data-id=\"8189437\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p>COMPREHENSIVE CUSTOMER PROTECTION<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-31fcc9b elementor-widget elementor-widget-text-editor\" data-id=\"31fcc9b\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p>We believe that customer protection in financial services is fundamentally different from that for non-financial products and services.<span class=\"tooltips \" style=\"\" title=\"&lt;a href=&quot;https:\/\/www.dvara.com\/research\/wp-content\/uploads\/2020\/01\/A-Strategy-for-Comprehensive-Financial-Inclusion.pdf&quot; target=&quot;_blank&quot; rel=&quot;noopener&quot;&gt;George, May 2019, Universal conduct obligations for financial services providers serving retail customers- https:\/\/www.dvara.com\/research\/ wp-content\/uploads\/2019\/05\/ Universal-Conduct-Obligations-for-FinancialServices-Providers-Serving-Retail-Customers.pdf&lt;\/a&gt;\"><strong>[4]<\/strong><\/span> Unlike in a non-financial product where the outcome of a purchase is immediately visible, in a financial product, that is seldom the case. When saving or investing in a long-term retirement product, the outcome of the strategy becomes visible only in the long run. Similarly, when buying health or life insurance, the assurance of whether the claim will be settled or not, if such a situation arises, becomes known only in the future.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-c2bdedb elementor-widget elementor-widget-html\" data-id=\"c2bdedb\" data-element_type=\"widget\" data-widget_type=\"html.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<button id=\"myButton1\" class=\"shbt\" onclick=\"myoneFunction()\">See More<\/button>\r<script>\rfunction myoneFunction() {\r var element = document.getElementById(\"sechide1\");\r element.classList.toggle(\"secshow1\");\r var btn = document.getElementById(\"myButton1\");\r\r    if (btn.value == \"See Less\") {\r      btn.value = \"See More\";\r      btn.innerHTML = \"See More\";\r    } else {\r      btn.value = \"See Less\";\r      btn.innerHTML = \"See Less\";\r    }\r}\r<\/script>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-inner-section elementor-element elementor-element-353247d elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"353247d\" data-element_type=\"section\" id=\"sechide1\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-inner-column elementor-element elementor-element-a3bd164\" data-id=\"a3bd164\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-element elementor-element-b3eaf71 elementor-widget elementor-widget-text-editor\" data-id=\"b3eaf71\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p>Furthermore, the world of financial products and services is becoming increasingly complex. The rise of digital finance is enabling an unbundling of the value chain or a modularisation of financial products and services. This benefits customers because it allows for increasing product customisation. But it also complicates the problem of choosing a suitable financial product because it greatly expands the range of product types facing a\u00a0<span style=\"color: var( --e-global-color-text );\">customer. The benefits of unbundling and digitisation are also\u00a0<\/span><span style=\"color: var( --e-global-color-text );\">counterbalanced by new emergent risks<span class=\"tooltips \" style=\"\" title=\"&lt;a href=&quot;https:\/\/www.dvara.com\/research\/wp-content\/uploads\/2017\/10\/ConferenceProceedings_DvaraResearch.pdf&quot; target=&quot;_blank&quot; rel=&quot;noopener&quot;&gt;Dvara Research, August 2017, Conference Proceedings titled Designing regulations for a rapidly evolving financial system- https:\/\/www.dvara. com\/research\/wp-content\/uploads\/2017\/10\/ ConferenceProceedings_ DvaraResearch.pdf&lt;\/a&gt;\"><strong>[5]<\/strong><\/span><\/span><span style=\"color: var( --e-global-color-text );\">, most notably data <\/span><span style=\"color: var( --e-global-color-text );\">misuse and frauds<span class=\"tooltips \" style=\"\" title=\"&lt;a href=&quot;https:\/\/www.cgap.org\/blog\/evolving-nature-and-scale-of-consumer-risks-in-digital-finance&quot; target=&quot;_blank&quot; rel=&quot;noopener&quot;&gt;Duflo and Chalwe-Mulenga, Oct 2021, Evolving nature and scale of consumer risks in digital finance- https:\/\/www.cgap.org\/blog\/ evolving-natureand-scale-of-consumer-risks-in-digital-finance&lt;\/a&gt;\"><strong>[6]<\/strong><\/span>, and a potential worsening of already extant <\/span><span style=\"color: var( --e-global-color-text );\">harms such as unfair conduct, inadequate information, poor\u00a0<\/span><span style=\"color: var( --e-global-color-text );\">disclosures and lack of transparency, and inadequate grievance\u00a0<\/span><span style=\"color: var( --e-global-color-text );\">redress channels.<\/span><\/p><figure id=\"attachment_3388\" aria-describedby=\"caption-attachment-3388\" style=\"width: 290px\" class=\"wp-caption alignright\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-3388 size-full\" src=\"https:\/\/dvararesearch.com\/centre-for-customer-protection\/wp-content\/uploads\/2023\/08\/Blue_Entrepreneur_Personalities_Business_Infographic__4_-photoshop-1-e1690880513462.png\" alt=\"\" width=\"290\" height=\"490\" data-wp-editing=\"1\" srcset=\"https:\/\/dvararesearch.com\/centre-for-customer-protection\/wp-content\/uploads\/2023\/08\/Blue_Entrepreneur_Personalities_Business_Infographic__4_-photoshop-1-e1690880513462.png 290w, https:\/\/dvararesearch.com\/centre-for-customer-protection\/wp-content\/uploads\/2023\/08\/Blue_Entrepreneur_Personalities_Business_Infographic__4_-photoshop-1-e1690880513462-178x300.png 178w\" sizes=\"auto, (max-width: 290px) 100vw, 290px\" \/><figcaption id=\"caption-attachment-3388\" class=\"wp-caption-text\"><strong>Illustration 1.2<\/strong><\/figcaption><\/figure><p><span style=\"color: var( --e-global-color-text ); text-align: right;\">\u00a0<\/span><\/p><p><span style=\"color: var( --e-global-color-text ); text-align: right;\">Given these emerging trends, it is quite likely that the principle of \u2018caveat emptor\u2019 or \u2018buyer beware\u2019\u00a0will continue to be insufficient for protecting customers\u2019 interests. Financial literacy campaigns, which are essentially motivated by the same principle, are also likely to be ineffective (as they have proven to be, in the past) in producing desirable financial behaviours among customers.<\/span><\/p><p>As stated earlier, Dvara Research has instead consistently championed the principle of suitability, which we see as a process attribute rather than an outcome. The requirement of suitability holds the provider accountable for ensuring that the customer\u2019s context is always carefully attended to in the process of giving advice or selling.<span class=\"tooltips \" style=\"\" title=\"&lt;a href=&quot;https:\/\/www.dvara.com\/research\/wp-content\/uploads\/2013\/06\/A-New-Framework-for-Financial-Consumer-Protection-in-India-IFF-Position-Paper.pdf&quot; target=&quot;_blank&quot; rel=&quot;noopener&quot;&gt;Sahasranaman, George, Rajendran &amp;amp; Prasad, 2013, A new framework for financial customer protection in India- https:\/\/www.dvara.com\/research\/ wp-content\/uploads\/2013\/06\/A-New-Framework-for-Financial-ConsumerProtection-in-India-IFF-Position-Paper.pdf&lt;\/a&gt;\"><strong>[7]<\/strong><\/span> We recommend that every financial services provider follow a board-approved suitability policy that adequately protects all retail customers, especially the low-income ones.<\/p><p>In contrast to that desirable standard, the current financial customer protection regime in India may be characterised<span class=\"tooltips \" style=\"\" title=\"&lt;a href=&quot;https:\/\/www.dvara.com\/research\/wp-content\/uploads\/2019\/05\/Universal-Conduct-Obligations-for-Financial-Services-Providers-Serving-Retail-Customers.pdf&quot; target=&quot;_blank&quot; rel=&quot;noopener&quot;&gt;George, May 2019, Universal conduct obligations for financial services providers serving retail customers- https:\/\/www.dvara.com\/research\/ wp-content\/uploads\/2019\/05\/ Universal-Conduct-Obligations-for-FinancialServices-Providers-Serving-Retail-Customers.pdf&lt;\/a&gt;\"><strong>[8]<\/strong><\/span> with four specific concerns as shown in <b>Illustration 1.2<\/b>.<\/p><p>Clearly, this state of affairs will not make for meaningful financial inclusion insofar as adequate customer protection should be regarded as a constitutive or integral feature of such inclusion. In our view, a reorientation of the system towards meaningful inclusion consists in recognising five attributes to be incorporated into the design and delivery of financial products and services:<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-6d53d81 elementor-widget elementor-widget-image\" data-id=\"6d53d81\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"1050\" height=\"700\" src=\"https:\/\/dvararesearch.com\/centre-for-customer-protection\/wp-content\/uploads\/2023\/08\/Infography_1.gif\" class=\"attachment-full size-full wp-image-3863\" alt=\"\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-fbef793 elementor-widget elementor-widget-text-editor\" data-id=\"fbef793\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p>We believe that on one front, regulators and policymakers should recognise these attributes of financial products and services as being desirable and be able to tell when they are absent. Therefore, we strive to support regulators and policymakers by (i) providing them with research insights that add to their existing understanding of the financial and household sectors; (ii) developing toolkits that help them monitor markets more effectively; and (iii) making recommendations that help orient existing frameworks and guidelines towards the manifestation of the above attributes.<\/p><figure id=\"attachment_2311\" aria-describedby=\"caption-attachment-2311\" style=\"width: 500px\" class=\"wp-caption alignleft\"><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-2311\" src=\"https:\/\/dvararesearch.com\/centre-for-customer-protection\/wp-content\/uploads\/2023\/07\/Lock-infographic-report.png\" alt=\"Dvara\" width=\"500\" height=\"500\" srcset=\"https:\/\/dvararesearch.com\/centre-for-customer-protection\/wp-content\/uploads\/2023\/07\/Lock-infographic-report.png 500w, https:\/\/dvararesearch.com\/centre-for-customer-protection\/wp-content\/uploads\/2023\/07\/Lock-infographic-report-300x300.png 300w, https:\/\/dvararesearch.com\/centre-for-customer-protection\/wp-content\/uploads\/2023\/07\/Lock-infographic-report-150x150.png 150w\" sizes=\"auto, (max-width: 500px) 100vw, 500px\" \/><figcaption id=\"caption-attachment-2311\" class=\"wp-caption-text\"><strong>\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0Illustration 1.3<\/strong><\/figcaption><\/figure><p>On the other front, financial customer protection cannot be made a reality without the participation of financial service providers. Therefore, we seek to work with them and co-create new products and processes that will incorporate the above attributes. We believe in a collaborative style of engagement with providers, which most importantly requires us to actively listen to them and remain very open to understanding their priorities and constraints. We appreciate that customer protection is the by-product of a negotiation between customer concerns and provider constraints, and that the pathway to greater customer trust and loyalty can therefore only be dialectical.\u00a0<\/p><p>We encourage providers to undertake five actions, while remaining mindful of business model sustainability concerns.<\/p><p>We recommend these five actions(as shown in <b>Illustration 1.3<\/b>) because we believe that they will help providers design financial products and services that are relevant, affordable, accessible, intuitive, and trustworthy. For instance, when the suitability of a product is enhanced in terms of its design and distribution, customers find the product to be more attuned to their needs and context, and they can access the product\/service conveniently and at a price that makes sense for them. Therefore, enhancing product suitability automatically makes the product\/service more relevant, accessible, affordable, trustworthy, and intuitive for the customer.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>OUR PERSPECTIVE ADVOCACY FOR FINANCIAL CUSTOMER PROTECTION Dvara Research is uniquely positioned to study the state of financial customer protection in India, and to devise solutions that will enhance customer experience and trust. We have over a decade of experience in studying and documenting the financial lives of low-income households. We have developed deep expertise [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"footnotes":"","_links_to":"","_links_to_target":""},"hashtags":[],"class_list":["post-268","page","type-page","status-publish","hentry"],"_links":{"self":[{"href":"https:\/\/dvararesearch.com\/centre-for-customer-protection\/wp-json\/wp\/v2\/pages\/268","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dvararesearch.com\/centre-for-customer-protection\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/dvararesearch.com\/centre-for-customer-protection\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/dvararesearch.com\/centre-for-customer-protection\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dvararesearch.com\/centre-for-customer-protection\/wp-json\/wp\/v2\/comments?post=268"}],"version-history":[{"count":499,"href":"https:\/\/dvararesearch.com\/centre-for-customer-protection\/wp-json\/wp\/v2\/pages\/268\/revisions"}],"predecessor-version":[{"id":4541,"href":"https:\/\/dvararesearch.com\/centre-for-customer-protection\/wp-json\/wp\/v2\/pages\/268\/revisions\/4541"}],"wp:attachment":[{"href":"https:\/\/dvararesearch.com\/centre-for-customer-protection\/wp-json\/wp\/v2\/media?parent=268"}],"wp:term":[{"taxonomy":"hashtags","embeddable":true,"href":"https:\/\/dvararesearch.com\/centre-for-customer-protection\/wp-json\/wp\/v2\/hashtags?post=268"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}