Photo by Lorena Velasco via Communication for Development Ltd. Photo by Lorena Velasco via Communication for Development Ltd.

Market monitoring tools are built based on the experience of market conduct supervisors across the globe. Each tool includes guidance that describes its characteristics and benefits, the opportunities it may create, how to use it, and its limitations. Some supporting materials are also available for download.

There are three key ways to explore the various market monitoring tools:

1. Identify your objective and choose a tool [back to Market Monitoring Tools]
Start by identifying an objective in the depicted chart, and then feel free to explore the different tools that can help you advance your objective.

2. Go directly to a tool of interest  [back to Market Monitoring Tools]
Review summaries of each tool and then visit the full page for more information and download it for later use.

3. Review the accompanying country cases [this tab]
Below are six country cases that describe how individual countries have implemented various market monitoring tools—and why. Each case includes background about the country for added context and download for later use.

Country Cases

This section includes country cases illustrating how and why a market monitoring tool has been implemented, as well as reflections on implementation benefits and challenges and more.

Click on image to download country case

Type of market monitoring tool: Social media monitoring

Sub-type: Social media monitoring using supervisory technology (suptech)

Social media monitoring has enabled Ireland’s Central Bank to gain early knowledge of new financial services and products in the market, identify trends in consumer sentiment toward financial products and services, identify consumer issues and concerns in real time, and take quick action.

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Type of market monitoring tool: Phone surveys
Sub-type: Computer-assisted telephone interview

Computer-assisted telephone interview (CATI) phone surveys have enabled the Central Bank of Kenya (CBK) to understand the size of the digital credit market, the use of digital credit, customer experience with digital credit, and related risks. For example, results from a phone survey showed that 47 percent of digital borrowers in Kenya have repaid a digital loan late and 12 percent report having defaulted, flagging concerns for market conduct supervisors.

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Type of market monitoring tool: Analysis of regulatory reports
Sub-type: Analysis of granular data using suptech (supervisory technology)

Mexico’s National Commission of the Retirement Savings System (Consar) implemented a set of measures to produce high quality granular data reporting and invested in a machine learning tool as a substitute for manual data crunching. The result was an increased ability to identify patterns in the data and spot misconduct by regulated entities and their agents. For example, evidence of fraudulent account switching resulted in hundreds of agents being permanently banned from exercising any professional activity in the pension system. This action led to a reduction in fraud.

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Type of market monitoring tool: Analysis of consumer contracts

Sub-type: Analysis of draft (model) consumer contracts using suptech (supervisory technology)

Analyzing draft (model) consumer contracts for retail products helps market conduct supervisors spot when abusive, illegal, or noncompliant contractual clauses appear in consumer agreements. It also helps in monitoring new product launches and changes to current product terms. The downside is that the activity is labor-intensive and time-consuming. Banco de Portugal annually receives approximately 300 new draft consumer credit contracts and over 1,000 changes to existing credit contracts. Its Banking Conduct Supervision Department (BCSD) piloted a suptech tool that uses natural language processing (NLP) to automate the task. With the new tool now under full development, the expectation is that it will save 8–16 months of staff time per year, increasing supervisory efficiency and releasing intellectual capacity for other activities.

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Type of market monitoring tool: Mystery shopping

Sub-type: Product-focused mystery shopping

Mystery shopping has allowed KonfOP, the Russia-based International Confederation of Consumer Societies, to yield a wealth of findings and observations. Mystery shopping revealed important instances of noncompliance with consumer protection regulations, consumer discrimination (including gender discrimination), and abuse. Some findings have led to changes in regulations pertaining to financial consumer protection.

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Type of market monitoring tool: Analysis of regulatory reports

Sub-type: Analysis of granular data

Granular data helped Bank of Tanzania (BoT) assess the rapid growth of the digital credit market in Tanzania and identify a set of emerging consumer risks, especially on transparency, creditworthiness, and bias. For example, data showed that many borrowers chose lower interest loans as they took out more loans, and that women were as good at repaying loans as men but had significantly lower access to credit.

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