An outcome of these developments has been creation of new regulatory bodies to focus exclusively on consumer protection and financial market conduct. We are also witnessing a lot of mis-selling by the banks, not only of the banking products but also the non-banking financial products that they sell at their braches, especially insurance.
The purpose of allowing banks to sell the non-financial products is not to create an avenue for generating non-interest income and to facilitate customers’ diverse needs. So the banks must not aim only at the former and they should, in fact, link their sales to the needs of their banking customers.