Staff incentive schemes lead to bad deals for consumers – paper
Colombian paper examines the effect of bank incentive schemes on consumers
Clients of financial institutions are "rarely" offered the cheapest products because of staff incentive schemes in Colombia, a working paper published by the Central Bank of Colombia has found.
Authors Xavier Giné, Nídia García and José Gómez-González examine evidence from auditors who visited financial institutions and sought to buy credit and savings products.
"We develop a transparency index that reports the percentage of the total cost of a product that is disclosed to the client by the
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