FCA Insights paper on how consumers learn about financial products

Industry News | 05/09/19

The Financial Conduct Authority (FCA) has published an Insights paper titled ‘Learning from experience in financial services’, exploring how consumers develop knowledge about financial products. The most important financial products, such as pensions and mortgages, are for most consumers ‘one-shot decisions’, limiting the scope to learn from experience. The FCA states that new research suggests consumers rarely learn how to effectively use financial products, and that in the cases that they do, it is the result of practical experience rather than the descriptive method of learning.