Artikel
A system to support the transparency of consumer credit offers
The development of financial markets and the low level of financial literacy does not facilitate consumer protection. A significant problem is the lack of information or unclear information regarding financial offers, including consumer credit. Financial protection for consumers can be increased by using systems that support consumers faced with a lack of transparency of consumer credit offers. The theoretical objective of the research is to identify the completeness of information allowing for verifying the annual percentage rate (APR) in the consumer credit offers presented and compared on websites of financial intermediaries and banks as well as the identify of APR calculation methods. After analysis of different credit offers (document analysis), a prototype of the system regarding credit costs measured at the appropriate interest rates (APR and AER) calculated in the correct manner was created. This may facilitate practices for informing consumers about the characteristics of consumer credit and at the same time support the implementation of the concept of responsible lending. The system developed uses a computer to simulate human thinking and to augment it with artificial intelligence. It facilitates the elimination the behavioral biases during the taking of financial decisions, which are the result of a low level of financial literacy.
- Language
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Englisch
- Bibliographic citation
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Journal: Journal of Risk and Financial Management ; ISSN: 1911-8074 ; Volume: 13 ; Year: 2020 ; Issue: 12 ; Pages: 1-13 ; Basel: MDPI
- Classification
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Wirtschaft
- Subject
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consumer credit/loan
deficit of financial information
financial consumer protection
annual percentage rate
APR
annual effective rate
AER
periodic rate
- Event
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Geistige Schöpfung
- (who)
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Frączek, Bożena
- Event
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Veröffentlichung
- (who)
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MDPI
- (where)
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Basel
- (when)
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2020
- DOI
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doi:10.3390/jrfm13120317
- Handle
- Last update
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10.03.2025, 11:42 AM CET
Data provider
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Artikel
Associated
- Frączek, Bożena
- MDPI
Time of origin
- 2020
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Complex pricing and consumer-side transparency
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Costly contracts and consumer credit
Consumer credit and payment cards
Dealer Pricing of Consumer Credit
Credit constraints and consumer spending
When Transaction-Level Wage Transparency Can Increase Consumer Preference
Consumer instalment credit and economic fluctuations
Consumer credit with over-optimistic borrowers
Elasticities of demand for consumer credit
Tighter Credit and Consumer Bankruptcy Insurance
Cognitive Processing of Consumer Credit Offers
Complex pricing and consumer-side transparency
Effects of balance transfer offers on consumer short-term finance: Evidence from credit card data
Costly contracts and consumer credit
Consumer credit and payment cards
Dealer Pricing of Consumer Credit
Credit constraints and consumer spending
When Transaction-Level Wage Transparency Can Increase Consumer Preference
Consumer instalment credit and economic fluctuations
Consumer credit with over-optimistic borrowers
Elasticities of demand for consumer credit