Consumers Of Financial Services Research Articles

SCENARIO FORECAST OF THE IMPLEMENTATION OF THE DIGITAL MULTILEVEL MODEL OF TRANSPARENCY OF FINANCIAL RELATIONS

The study aims to develop and evaluate scenarios for implementing a digital multi-level financial and economic relations transparency model, which covers public, corporate, and personal finances. The study aims to identify key factors affecting the level of transparency, assess the consequences of implementing the model, and develop strategic recommendations to improve the efficiency of financial resource management and strengthen trust between market participants.The study's main results include the definition of three model development scenarios: optimistic, pessimistic, and realistic. Each scenario considers the specifics of public, corporate, and personal finance and reflects different levels of influence of key factors such as technological readiness, government support, and market participants' adaptation to changes. The implications of each scenario were assessed, including the potential benefits, risks, and challenges associated with implementing the model at different levels of finance.The study's main conclusions confirm that the digital multi-level model of transparency is an effective tool for increasing the transparency of financial and economic relations, reducing risks, and improving management efficiency. Implementing the model contributes to increasing trust in state institutions, improving corporate governance, and protecting the rights of consumers of financial services. Scenario forecasting makes it possible to adapt the model's implementation strategies to the changing conditions of the external environment, which contributes to its stability and successful integration into the financial system.The study also identifies directions for further research, including assessing the impact of individual digital technologies, developing new methods for monitoring transparency, and exploring barriers and incentives for implementing the model across industries and regions.

An empirical exploration of the drivers of trust in consumer financial services

An empirical exploration of the drivers of trust in consumer financial services

Purpose and principles of state regulation of non-bank financial services markets

The need for stable development and effective use of non-banking financial services market tools, as well as the imperfection of the current legislation in this area characterize the unconditional relevance of the topic of this article. The purpose of the article is to determine the purpose of state regulation of non-bank financial services markets, to define the concept of the principles of state regulation of professional financial activity, and to highlight and analyze the main principles of such regulation. It is noted that one of the main elements of state regulation of non-bank financial services markets is the purpose of such regulation. In view of the analyzed scientific positions and legislative provisions, it is concluded that the main goal of state regulation of non-banking financial services markets is: 1) ensuring transparency, reliability and openness in the markets of non-banking financial services; 2) coordination of activities of state authorities on the functioning of non-bank financial services markets; 3) protection of rights, legitimate interests and satisfaction of socio-economic needs of consumers of non-banking financial services; 4) prevention of abuses and violations in the markets of non-banking financial services. It is proposed to define the principles of state regulation of professional financial activity as the main ideas, basic principles, and general provisions of the implementation by the Regulators of a set of measures to regulate, control and supervise the activities of non-banking organizations and other participants in the markets of non-banking financial services in order to create favorable conditions for their functioning. , preventing and countering abuses and violations in the markets of non-banking financial services and ensuring the protection of the legitimate interests of clients. The main principles of state regulation of professional financial activity are highlighted: the principle of legality; principle of commensurability (proportionality); the principle of guaranteeing the rights and legitimate interests of participants in the financial services market (in particular, the rights of consumers); the principle of assessment by the Regulators of transactions, operations, circumstances and events taking into account their economic and factual content; the principle of mandatory licensing of professional financial activity; the principle of exclusivity of professional financial activity.

Common Financial Market of the EAEU: Concept, Structure and Problems of Formation

Aim. The purpose of the study is to substantiate the concept and structure of the common financial market of the Eurasian Economic Union, highlight the problems of its formation and ways to solve them. Tasks. The objectives of the study are: review and analysis of the definitions of the common financial market in the legal framework of the Eurasian Economic Union; highlighting key aspects of the development of the common financial market; defining its structure, problems of formation, proposing ways to solve them.Methods. Methods were used: institutional analysis, comparative analysis, system analysis to substantiate aspects of the formation and structure of the common financial market of the Eurasian Economic Union. The method of formal logical analysis was also used to clarify the concepts of the common financial market in various acts of the integration level.Results. Firstly, at the level of the Eurasian Economic Union, the concept and criteria of a common financial market have been established.Secondly, a broad and narrow understanding of the structure of the common financial market in the context of Eurasian integration is highlighted.Thirdly, the key aspects of the development of the common financial market are: expanding the range and accessibility of financial services; ensuring the rights of consumers of financial services and investors; security and transparency of financial services.Fourthly, the problems of forming a common financial market are highlighted, including the different levels of development of the markets of the integration member states, the weak sector of the securities and investment markets.Conclusions. The common financial market is part of Eurasian integration, the processes of formation of such a market are components of integration processes. The structure of the general financial market in the narrow sense includes the banking and insurance services sector, the securities market sector, and the relations between these sectors. A broad understanding of the structure of the general financial market additionally includes the tax, budget and currency areas.

EVOLUTION OF FUNCTIONS OF THE NATIONAL BANK OF UKRAINE: ECONOMIC AND LEGAL STUDY

The article is devoted to the analysis of the evolution of the functions of the National Bank of Ukraine for the period 1991-2023. The author's definition of the functions of the National Bank of Ukraine as its main directions and types of activities aimed at ensuring the stability of the monetary unit, protecting the rights and interests of the National Bank and the rights of consumers of financial services, etc. It was established that the scope of functions of the National Bank of Ukraine includes: establishment, security, foreign policy, foreign economic, human rights protection, anti-corruption, programmatic, law-making, control, and personnel. It has been proven that the functions of the National Bank of Ukraine are not exhaustive. The research methodology is formed within the framework of the use of economic and legal approaches. It is appropriate to analyze the base scenario of the macroeconomic forecast of the National Bank of Ukraine based on assumptions regarding further weighted monetary and fiscal policy and a wide range of economic and financial data used by the National Bank of Ukraine in the development of its monetary policy and control over its implementation. It is substantiated that when classifying the functions of the National Bank of Ukraine according to the criterion of the direction of its activities, it is necessary to take into account the dual nature of the National Bank of Ukraine: it is at the same time the central bank of Ukraine and a special central body of state administration. The factors that influenced the assignment of new functions to the National Bank of Ukraine and the exclusion of previously existing ones were determined. It is proved that during 1991-2023 the functions of the National Bank of Ukraine were expanded based on the principle of "prerogatives" and "inalienable rights".

The Role of European Supervisory Authorities in Consumer Protection Standard Setting on the Financial Services Market – Based on the Example of the European Banking Authority

The purpose of the article is to present the genesis of the emergence and the scope of powers of the European Supervisory Authorities (ESAs) (the EBA, ESMA, and EIOPA), with particular reference to the EBA as regards the building of its supervisory normative standard and the protection of the consumer of financial services. The authors will propose de lege ferenda postulates which, in their view, would allow for an improvement in the quality of the financial services offered to consumers and ensure a higher level of protection of their interests and, at the same time, legal certainty for their providers. Increasingly sophisticated and complex financial products cause interpretation difficulties for both the courts and consumer protection authorities, but above all for consumers themselves, which consequently poses a challenge for both sides of the market (supply and demand). It is also a challenge for the post-crisis ESAs as the EU bodies not only designated to monitor and manage both the stability and security of the financial market, along with the actual level of consumer protection within it. In the preparation of the article, the legal-dogmatic and legal-theoretical method, which is standard for such studies, was applied, which allows for an analysis of the provisions of EU law and the identification of the norms stemming from them using interpretation and the assessment of the content of the provisions through the prism of the principle of consumer protection from Articles 12 and 169 TFEU and the EBAs’ competence provisions. Due to the fact that, in principle, the powers and competences of all three ESAs are analogous and only differ in terms of the scope of their application (i.e., financial institutions operating in the relevant financial market sectors – banking, insurance, and pension and investment), the authors will present their considerations with reference to the European Banking Authority (EBA), which is an exemplification of the powers of the other supervisory authorities. Thus, the secondary piece of EU legislation to be considered in this article will be the Council and European Parliament Regulation, hereinafter known as “EBA Regulation” and the actions taken by the EBA on that basis.

Саморегулирование в микрофинансовой сфере и его влияние на защиту прав потребителей финансовых услуг

The article discusses the relevance of self-regulation in the field of microfinance organizations and the need to protect the rights of financial services consumers. The main principles and measures of the basic standard for protecting clients’ rights are described, as well as the importance of controlling the activities of MFOs. The authors discuss the effectiveness of the current self-regulation model and offer a number of recommendations for improving the control system and protecting the interests of clients.

Law and order? Associations between payday lending prohibition and alternative financial services use by degree of enforcement

AbstractSixteen jurisdictions in the United States prohibit payday lending through stringent usury laws or well‐established nonprofitable 36% interest rate caps. Yet over one in 10 consumers residing in these jurisdictions borrowed payday loans in the past 5 years. This raises questions about actual policy implementation and enforcement. We employ data from the 2018 National Financial Capability Study to investigate if associations between payday lending prohibitions and payday borrowing differ by degree of enforcement. We find that nuances in degree of enforcement among restrictive states are not associated with payday borrowing likelihoods. However, these nuances appear when examining payday borrowing frequency, particularly when controlling for consumers' financial circumstances and when conditioning on alternative financial services consumers. We consistently note the highest borrowing behaviors for states sans regulation. Policymakers may consider strengthening enforcement in cases where the primary goal is preventing or reducing payday borrowing.

Фінансова поведінка домогосподарств у контексті їх резильєнтного розвитку

The relevance of the article is related to the need to study the financial behavior of households as one of the factors of ensuring their resilient development in conditions of instability and uncertainty. In the conditions of war, the country’s financial market and the behavior of the subjects of financial relations are the epicenter of the country’s macroeconomic stability, which depends on the resilience of households to risky situations and the quality of life. The specified interrelationship will strengthen under the condition of active prejudice against poverty and state support of the population, which found itself in difficult life circumstances as a result of the war. The purpose of the article is to study the influence of financial behavior and financial instruments on the resilience of the country’s households in conditions of socio-economic instability and uncertain development prospects. The novelty of the work consists in identifying the peculiarities of the financial behavior of households, caused by the growth of wartime risks against the background of real opportunities and trends of their resilient development. The research is based on the use of various data sources and the application of a number of scientific methods (analysis, synthesis, comparison, generalization, selective observations). Modern financial behavior of households combines elements of various models — consumer, savings, investment, credit, insurance, charity, the relationships between which are transformed depending on the action of external and internal factors. In the conditions of war, the motives for forming one or another model of financial behavior of households change, in the choice of which they can be guided by the interests of preserving the status quo or increasing financial assets. The advantages of the saving behavior model of households as the most acceptable for resistance to wartime risks and threats and the transformation of labor income of the population into development investment resources are determined. Unlike most European countries, Ukraine is dominated by channels of unorganized savings of the population due to a low level of trust in banking structures, uncertainty in the future, and efforts to prevent the emergence of new financial risks. The transition to organized forms of savings of the population will ensure the resilience of economic development against the background of the stability of the financial and credit system of the state, trust in it by consumers of financial services. In this context, a sufficient level of profitability of financial instruments and financial literacy of the population are necessary. For its spread, it is necessary to achieve a sufficiently high level of income, rational consumption and possession of effective financial instruments against the background of trust in financial institutions.

Уполномоченные субъекты в сфере защиты прав потребителей финансовых услуг в Российской Федерации (на примере Банка России и Роспотребнадзора)

Purpose. The Bank of Russia and Rospotrebnadzor are vested with powers to protect the rights of consumers of financial services, while from the standpoint of current legislation, the functions of the Bank of Russia include regulation, control and supervision in the financial market, including the protection of the rights of consumers of financial services, with the exception of consumers of banking services, The powers of Rospotrebnadzor are to ensure the protection of consumer rights, among which consumers of financial services occupy a special place. The commonality of functions and powers of these entities dictates the need to analyze the areas of their activities and delineate competencies in the field of protecting the rights of consumers of financial services. Methodology: general scientific methods (analysis, synthesis, description), as well as specific scientific methods (formal legal and comparative legal). Conclusions. A number of functions of the Bank of Russia and Rospotrebnadzor are actually “duplicated”, which reduces the efficiency of work and the achievement of positive results in the field of protecting the rights of consumers of financial services; These entities are not exclusively engaged in protecting the rights of consumers of financial services, despite the fact that this category of consumers requires different protection from other consumers. Scientific and practical significance. The article presents an analysis of the activities of the Bank of Russia and Rospotrebnadzor in the field of protecting the rights of consumers of financial services, taking into account the delimitation and actual “doubling” of the powers of these entities in the characterized area

Механизмы защиты потребителей цифровых финансовых услуг

Modern trends in digitalization, which are becoming global in nature, radically affect the financial sphere of people’s lives. The use of digital technologies and the capabilities of the Internet helps to speed up and facilitate access to various financial services. Currently, customers can take advantage of a wide range of financial services, ranging from payments (for example, for utilities) to obtaining a consumer loan, without even leaving their place of residence. Such operations can be carried out in various ways: through an ATM, payment terminal, information kiosk, mobile or Internet application, by sending SMS in other ways. Payment for such services can be made either in cash or non-cash, or using special digital means, for example, electronic money or cryptocurrency. However, for financial services clients, the progress and spread of digital technologies not only increases the comfort and speed of financial transactions, but also increases risks that need to be taken into account and analyzed, as well as mitigation measures taken. The object of the study is the economic and legal relations that arise in the process of consuming digital financial services. The purpose of the study is to characterize the current mechanisms for protecting consumers of digital financial services. Research methods - analysis and synthesis, documentary method, abstract-logical method, statistical method, comparative legal, logical-legal methods. The scientific novelty of the research is the systematization of trends in the development of digital financial services, the main risks for users of these services, as well as key areas and mechanisms for protecting consumers of digital financial services.

The Legal Nature of the Institution of the Commissioner for the Rights of Consumers of Financial Services

Relevance. In 2018, the Institute of the Commissioner for Consumer Rights of Financial Services was established in the Russian Federation. The number of financial services provided to consumers is undoubtedly growing, and the number of cases of violation of citizens' rights by financial market organizations is also increasing. The Financial Commissioner is established to protect the rights of consumers, he considers disputes between consumers of financial services and financial organizations. The importance of the institution of the Commissioner for the Rights of Consumers of Financial services is increasing, which can be seen in the increase in the number of incoming appeals. However, studies of the legal nature of the institute have not been adequately reflected in legal science, which determines the relevance of this research topic.The purpose is to determine the legal nature of the institution of the Commissioner for the Rights of Consumers of Financial Services in the Russian Federation.Objectives: based on the analysis of the regulatory legal framework and scientific literature to determine the main activities of the Institute of financial Ombudsman to establish the essence of its legal nature.Methodology. In the course of the work, the methods of theoretical research (analysis and synthesis, induction and deduction, mental modeling), as well as the statistical method were used.Results. In the course of the study, the author proposed an understanding of the legal nature of the institution of the financial commissioner as a complex legal phenomenon, including human rights and quasi-judicial legal components.Conclusions. According to the results of the study, conclusions are drawn that the key areas of activity of the Institute of Financial Commissioner are the protection of the rights of consumers of financial services and dispute resolution. The Commissioner for the Rights of Consumers of Financial Services is a human rights body that embodies the guarantee of the state for the protection and observance of the rights and interests of consumers by financial organizations. The Financial Commissioner acts as a judge in the dispute, upon the outcome of the consideration of the case, makes a binding decision aimed at resolving the dispute, restoring justice and based on regulatory legal acts.

Customized financial literacy: a boon for universal financial inclusion of PWDs post COVID-19 pandemic in developing countries

PurposeCurrently, consumers of financial products and services have become more vulnerable to predatory financial institutions, especially in the aftermath of Covid-19 pandemic. Therefore, financial consumers like the persons with disabilities (PWDs) should be equipped with knowledge and skills to help them to evaluate complex financial products on offer in financial markets, especially in developing countries to avoid being victims of fraudulent lending. The purpose of this study is to establish whether customized financial literacy mediates the relationship between financial consumer protection and financial inclusion of PWDs’ owned MSMEs in rural Uganda post Covid-19 pandemic.Design/methodology/approachSmartPLS 4.0 was used to construct the measurement and structural equation models to test whether customized financial literacy significantly mediates the relationship between financial consumer protection and financial inclusion of PWDs’ owned MSMEs in rural Uganda post Covid-19 pandemic.FindingsThe results revealed a partial mediating effect of customized financial literacy in the relationship between financial consumer protection and financial inclusion of PWDs’ owned MSMEs in rural Uganda post Covid-19 pandemic. Conducting customized financial literacy increases financial consumer protection by 12 percentage points to promote financial inclusion of PWDs’ owned MSMEs in rural Uganda post Covid-19 pandemic.Research limitations/implicationsThis study focused only on customized financial literacy and financial consumer protection to promote universal financial inclusion of PWDs’ owned MSMEs post Covid-19 pandemic. Future studies may use data collected from other vulnerable groups amongst the unbanked population in developing countries, Uganda inclusive. In addition, this study also collected only quantitative data from the selected population. Further studies can be conducted using key informant interviews and focused group discussion to get the perceptions of the PWDs on being protected from exploitation by unscrupulous financial institutions.Practical implicationsThe findings from this study can help policymakers in developing countries like Uganda to revise the existing consumer protection law to include strong clauses on protection of people with special needs like the PWDs. The law must ensure that they are not exploited by financial institutions because of their conditions. The law ought to make sure that the PWDs are educated about their rights in the financial market place and all information on financial products offered by financial institutions should be simplified and interpreted to them before they make consumption decisions.Originality/valueTo the best of the authors’ knowledge, the present study is amongst the first few studies to provide a meticulous and unique discourse on the ever increasing role of financial literacy combined with consumer protection to reduce consumption risks within the financial markets, especially in developing countries in the aftermath of global pandemic shocks. This study uses the social learning theory, theory of reasoned action and theory of planned behaviour to elucidate how customized financial literacy can enhance consumer protection to increase financial inclusion of groups with special needs like the PWDs who have become more susceptible to exploitation by unscrupulous financial institutions in under-developed financial markets, especially in post Covid-19 pandemic.

THE CRYPTOCURRENCY ASSETS MARKET IN THE CONDITIONS OF MILITARY AGGRESSION

The Russian-Ukrainian war transformed the needs of consumers of financial services, both in Ukraine and abroad. On the one hand, the civilian population and the Armed Forces of Ukraine needed immediate help from the international community. On the other hand, individual and institutional investors were concerned about threats to traditional financial investments. The purpose of the article is to identify the priority directions for the development of the cryptocurrency asset market against the background of the Russian-Ukrainian war. The article presents an analysis of the cryptocurrency asset market with an emphasis on its structural changes in the conditions of the Russian-Ukrainian war. In the study, a survey was conducted to find out the impact of the war on the Ukrainian cryptocurrency market. The analysis of the survey results substantiates the hypothesis about the impact of increased hacking attacks by pro-Russian forces and missile attacks on the functioning of the cryptocurrency market in Ukraine. It has been confirmed that investments and payments are promising segments of the cryptocurrency market in Ukraine, in which, the most interested users and potential users of cryptocurrency are. Based on the received data, the weaknesses and strengths of the functioning of the cryptocurrency market in the conditions of war were identified. Threats and opportunities for the development of the cryptocurrency market against the background of Russian armed aggression are substantiated. The conducted research made it possible to formulate scenarios for the development of the cryptocurrency asset market in Ukraine in war conditions and the conditions for their implementation.

Complaint and Severity Identification From Online Financial Content

The automatic detection of <italic xmlns:mml="http://www.w3.org/1998/Math/MathML" xmlns:xlink="http://www.w3.org/1999/xlink">financial complaints</i> ( <italic xmlns:mml="http://www.w3.org/1998/Math/MathML" xmlns:xlink="http://www.w3.org/1999/xlink">FINCORP</i> ) can benefit businesses and online merchants. Compared with manually tagged complaints, they can use this information to monitor and address issues and effectively route them to appropriate teams. This can also promote greater transparency and accountability when dealing with consumer financial products and services, strengthening the firm’s brand value. In linguistic studies, complaints have been classified into severity categories based on the level of risk the complainant is prepared to accept. Furthermore, since emotions influence every speech act, an individual’s emotional state considerably impacts the complaint expression. In this article, we introduce a <italic xmlns:mml="http://www.w3.org/1998/Math/MathML" xmlns:xlink="http://www.w3.org/1999/xlink">FINCORP</i> resource, a collection of annotated complaints arising between financial institutions and consumers expressed in English on Twitter. The dataset has been enriched with the associated emotion, sentiment, and complaint severity classes. The dataset comprises 3149 complaint and 3133 noncomplaint instances spanning over ten domains (e.g., credit cards, mortgages). For a comprehensive evaluation of our dataset, we develop a multitask framework for complaint detection and severity classification with emotion recognition (ER) and sentiment classification as the additional tasks and compare it with several existing baselines. The corpus and code are available here: https://github.com/RohanBh23/FINCORP.

Globalization of Stock Markets and The Factors Affecting It

Stock exchanges occupy a special place among the links of the financial and credit system. Mobilization of temporarily free cash and its effective distribution is carried out on the stock exchange. The financial market is an extremely complex and multifaceted structure, where the following participate: 1. Market infrastructure institutions; 2. Financial intermediaries; 3. Consumers of financial services. It is important to note that trading on modern stock exchanges is mainly carried out through electronic trading terminals. However, in the world stock markets today, all the conditions exist for stock trading and stock exchange settlement to be affected by blockchain technology, and even more so than traditional currency markets. One of the important benchmarks for investors and speculators in organized stock markets to make transactions is the stock market index. Stock market indices are directly related to share prices and are calculated based on the value of shares (in appropriate proportions) included in the base for calculating the index. Thus, the participants of the financial market and the instruments circulating in the market, which serve its various types of operations and segments, are characterized by great diversity at the modern stage. Therefore, it is necessary to go through the listing procedures on the stock exchanges and trade in the securities of only those issuers that meet the established requirements, which include financial indicators of the issuer, level of liquidity and degree of risk. Keywords: stock markets; globalization of exchanges; Factors affecting

РОЛЬ БАНКА РОССИИ В ЗАЩИТЕ ПРАВ ПОТРЕБИТЕЛЕЙ ФИНАНСОВЫХ УСЛУГ

In modern conditions with the variety of forms and types of financial products and services offered on the market, as well as many organizations offering them to clients, a special role is played by the activities of the Bank of Russia aimed at protecting the rights of consumers of financial products and services, preventing violations of those rights, as well as increasing the level of financial literacy of the population. The reactive and preventive activities of that Bank in that area make it possible to effectively address the issue of customer rights violations.

Being Emotionally Supportive: Exploring the Value of Emotional Appeals Retargeting in Recovering Consumers of Financial Services

This study investigates whether retargeting, an operational approach broadly adopted in traditional retail but underexplored in financial services, is effective in recovering valuable consumers. Whereas informative appeal retargeting operations have been found useful and thus prevalently employed in traditional retail, we propose that emotional appeals retargeting operations should be more effective in successful financial consumer persuasion drawing on the uniqueness of financial services. Particularly, we explore the value of two types of emotional appeals retargeting strategies tailored for financial services: empathetic support and privacy commitment retargeting. Our field experiment involving a microloan platform reveals the effectiveness of emotional appeals retargeting in the financial service market. Specifically, empathetic support retargeting successfully recovers 11.93% of consumers, whereas privacy commitment retargeting recovers 17.27% of consumers. These effects translate to 5.19 and 10.53 percentage-point increases in the rate of return, respectively, over the no-message operation. This study further evaluates the quality of consumers retained by these retargeting strategies and finds that consumers called back by the empathetic support and privacy commitment retargeting present high credibility, with loan approval rates 11.4 and 13.69 percentage points higher than those of nonabandoning consumers, respectively. Accordingly, a more specific retargeting strategy is explored. Our study provides a systematical implication for nascent retargeting operation practices in the financial service market by elucidating the causes and effects of consumer returns.

Behavioral supervision of the Bank of Russia over the activities of microfinance organizations providing loans

The article discusses issues related to the implementation of behavioral supervision of the Bank of Russia over the activities of microfinance organizations, including the provision of loans. The main purpose of the study is to identify changes in approaches to supervision in the microfinance market since the transition to mega-regulation, identify the reasons for the emergence of a new type of supervision aimed at protecting the rights of consumers of financial services, and analyze the work of the mega-regulator in this area. The study examines in detail the issues of legal regulation of the implementation of behavioral supervision in this area and the consolidation of relevant provisions at the level of normative legal acts. Special attention is paid to the results of this supervisory activity of the Bank of Russia, in particular, their reflection at the level of the relevant acts of the mega-regulator. The methodological basis of the research is the general scientific method of analysis, private scientific methods of formal legal analysis and interpretation. The results of the application of behavioral supervision by the Bank of Russia are analyzed and it is shown that this type of supervision is an effective tool for supervisory activities, allowing not only to monitor compliance with the requirements of current legislation, but also to combat unfair practices on the part of supervised organizations. The importance of the preventive component of behavioral supervision is separately noted. Problematic aspects in legal regulation are considered, including the lack of a legal definition of the relevant term and special norms at the level of normative legal acts, and, as a result, the need to improve the legal regulation of behavioral supervision. The novelty of the study lies in the proposed concept of behavioral supervision of the Bank of Russia over the activities of microfinance organizations, as well as in the analysis of the use of a new type of supervision by the mega-regulator in relation to specific subjects of the financial market.

ISSUES OF PROTECTING CITIZENS' RIGHTS IN THE FIELD OF FINANCIAL SERVICES

Today, in the Russian Federation, situations of violating the rights and interests of consumers of financial services are quite often allowed, which negatively affects the economic situation of citizens and undermines confidence in the banking system of the state. The purpose of the study is to analyze the judicial practice and to develop recommendations for consumers of savings services and services on providing borrowed (credit) funds, compliance with which will significantly reduce the risks arising from concluding and executing bank deposit and loan agreements. Materials and methods. The materials of the reports made for the International Confederation of Consumer Societies on the state of protecting the rights and interests of consumers of the savings services market in Russia were used. General and specific methods were used as research methods, including system-legal, logical, structural-functional ones and others. Study results. Based on the analysis of modern legislation, law enforcement and judicial practice of the Russian Federation, the authors have identified the most typical violations of consumer rights in the market of savings services and services for providing borrowed (credit) funds. Of particular interest are cases related to toughening the requirements for personal identification and security of banking operations in the context of digitalization of the economy, which cannot but affect traditional procedures for processing and withdrawing funds under a bank deposit agreement. The article analyses the most common situations of violating the rights and legitimate interests of consumers of savings services and services for providing borrowed (credit) funds in Russia during execution of bank deposit agreements and loan agreements. The issues that require regulation in order to avoid violation of the rights and interests of the parties to the above-mentioned agreements have been studied. Recommendations are also proposed to reduce risks when implementing protection of savings services consumers, which was the ultimate goal of the study. Conclusions. Realization of the citizens' constitutional right to judicial protection of banking services, on the one hand, reveals acute and obvious problems in this area, on the other hand, contributes to optimization of banking and civil legislation. In the context of financial services digitalization, the interests of citizens are not sufficiently protected. However, solution to the problem should be comprehensive, since cases of cybercrime are often associated with mobile communications; therefore, they depend on the effectiveness of control and supervision in this area. It is important to provide the consumer with preliminary structured information that enables him to realistically assess the risks and, on this basis, make a well-founded decision about opening or managing an account.