EBA Publishes Methodological Guide to Mystery Shopping
The European Banking Authority (EBA) published a methodological guide to mystery shopping. For the purpose of this guide, mystery shopping is understood as an undercover research approach used by competent authorities, or the market research companies they hire, to measure the quality of customer service and to gather information about financial products and services and the conduct of financial institutions toward consumers. This exercise covers initiatives in respect of products that fall in the scope of action of the EBA consumer protection mandate—that is, mortgage credit, consumer credit, deposits, payment accounts, payment services, and electronic money.
Mystery shopping may include the use of individuals that may act as potential or actual customers and are trained and briefed to experience and measure key phases of a product’s lifecycle and compliance with particular requirements. The guide sets out seven steps how mystery shopping activities can be conceived and carried out, how national competent authorities can use the guide as a complement to other existing supervisory tools, and how to adapt such activities to the particular circumstances, goals, and mystery shopping powers conferred on national competent authorities under the national and/or EU laws, such as the EU Consumer Protection Cooperation Regulation. The guide has been developed based on the findings and good practices identified in the EBA report on mystery shopping activities of national competent authorities; the report was published in May 2021 this year. Thus, this guide is the second step to fulfilling the new EBA mandate under Article 9(1) of the EBA Founding Regulation; the mandate has been applicable since January 2020 and requires EBA to "coordinate mystery shopping activities of competent authorities, if applicable." As per the guide, the national competent authorities can consider the following steps when building a mystery shopping activity:
- Define the goals of the mystery shopping activity
- Select the products/services and their distribution channels
- Select the financial institutions to be mystery-shopped
- Select the mystery shoppers and consumer profiles
- Design scenarios for mystery shoppers
- Design the assessment questionnaire for mystery shoppers and data gathering
- Assess the findings and follow up
The guide applies irrespective of whether the activity is conducted directly by the supervisors or outsourced to an external provider. In addition, the guide applies to both online and onsite mystery shopping activities but focuses on the onsite activities. The guide is not mandatory and does not aim to harmonize the mystery shopping practices of national competent authorities or imply that all national competent authorities would need to adopt it as supervisory tool.
Related Links
Keywords: Europe, EU, Banking, Mystery Shopping, Mortgage Lending, Consumer Credit Directive, Consumer Lending, Lending, Consumer Credit, EBA
Previous Article
Irish Central Bank Updates Identifier List for AnaCredit ReportingRelated Articles
APRA Publishes Results of Climate Risk Self-Assessment Survey
The Australian Prudential Regulation Authority (APRA) has published the findings of its latest climate risk self-assessment survey conducted across the banking, insurance, and superannuation industries.
ACPR Publishes Updates Related to CRD IV and Covered Bonds
The French Prudential Supervisory Authority (ACPR) published a notice related to the methods for calculating and publishing prudential ratios under the Capital Requirements Directive (CRD IV) and the minimum requirement for own funds and eligible liabilities (MREL).
BIS Paper Contributes to Debate on Regulating NBFIs and Big Techs
The Financial Stability Institute (FSI) of the Bank for International Settlements recently published a paper proposing a framework for classifying financial stability regulation as either entity-based or activity-based.
EIOPA Publishes Guidance on Climate Change Scenarios in ORSA
The European Insurance and Occupational Pension Authority (EIOPA) published the risk dashboard based on Solvency II data and the final version of the application guidance on climate change materiality assessments and climate change scenarios in the Own Risk and Solvency Assessment (ORSA).
EBA and ECB Respond to Proposals on Sustainability Disclosures
The European Banking Authority (EBA) and the European Central Bank (ECB) published their responses to the consultations of the International Sustainability Standards Board (ISSB) and the European Financial Reporting Advisory Group (EFRAG) on sustainability-related disclosure standards.
BIS Report Notes Existing Gaps in Climate Risk Data at Central Banks
A Consultative Group on Risk Management (CGRM) at the Bank for International Settlements (BIS) published a report that examines incorporation of climate risks into the international reserve management framework.
EBA Publishes Multiple Regulatory Updates for Regulated Entities
The European Banking Authority (EBA) published the final guidelines on liquidity requirements exemption for investment firms, updated version of its 5.2 filing rules document for supervisory reporting, and Single Rulebook Question and Answer (Q&A) updates in July 2022.
EIOPA Issues SII Taxonomy and Guide on Sustainability Preferences
The European Insurance and Occupational Pensions Authority (EIOPA) published Version 2.8.0 of the Solvency II data point model (DPM) and XBRL taxonomy.
EESC Opines on Proposals on CRR and European Single Access Point
The European Union published, in the Official Journal of the European Union, an opinion from the European Economic and Social Committee (EESC); the opinion is on the proposal for a regulation to amend the Capital Requirements Regulation (CRR).
HM Treasury Publishes Multiple Regulatory Updates in July 2022
HM Treasury published a draft statutory instrument titled “The Financial Services (Miscellaneous Amendments) (EU Exit) Regulations 2022,” along with the related explanatory memorandum and impact assessment.