CAVEAT EMPTOR VS FIDUCIARY OBLIGATIONS OF FINANCIAL INSTITUTIONS. ETHICAL PERSPECTIVE. CURRENT TRENDS AND IMPLICATIONS.
CAVEAT EMPTOR VS FIDUCIARY OBLIGATIONS OF FINANCIAL INSTITUTIONS. ETHICAL PERSPECTIVE. CURRENT TRENDS AND IMPLICATIONS.

Summary/Abstract: The complex nature of financial services and the importance of finance in the economy may imply that more protection is needed. Too much protection, however, may diminish alertness, ability to make knowledgeable decisions and acquire knowledge. Financial institutions’ operations are based on trust whose sources are different in nature. Results of an online survey carried out among young people which addressed the issue of trust in financial industry and its foundations will be discussed to provide for profound understanding of potential threats and opportunities the industry may face. Trust in financial institutions may be undermined by moral deficiencies in the industry which are not rare. They should be identified as having potential in making customers’ position disadvantaged. On the other hand, new customers’ stance towards ethical issues, their expectations and new trends in behaviour have potential to affect changes. The emerging new business models are, to great extent, based on trust. Peer to peer transactions and sharing economy are signs of consumers’ more active role and evolving attitude to ethical issues. Are the trends in parallel to consumers strength, and level of education? Should the new consumer be empowered to make decisions, also financial, based on own experience and knowledge? Or should there be regulatory protection, and if so, in what form? The new generation of creators rather than passive consumers, more users than owners need independence which often results in selecting offerings of new players - “disruptors”- also in the financial services industry.

• Details
• Contents