One in four individuals do not trust credit cards

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A new consumer survey showed that one out of every four residents in the UAE consider credit card issuers the least trustworthy of all financial service providers.

The survey, included in the tenth edition of the “Middle East Investment Overview” (MEIP) report issued by Insight Discovery in Dubai, showed that the percentage of consumers who reported credit card issuers as the worst reputation among a group of service providers increased from 18% In 2019 to 23% this year.

For his part, Nigel Celetto, CEO of Insight Discovery, said, “It is not surprising to see that trust has become an issue of the utmost importance. When the private monthly interest rates they charge against credit installments reach 3% and the average annual percentage in some companies exceeds 40%. To restore consumer confidence, credit card issuers must review the value proposition of their products by exploring new ways to demonstrate their desire to Pain help Of consumers to manage their finances in these difficult realistically and real times.

While other financial service providers in Canada and other countries are striving to help employment during the “Covid-19” crisis, we have not seen similar movements by card issuers in the Middle East. I think it is necessary for some credit card issuers to focus less on the benefits of their cards (such as cashback plans, golf practice, air miles, etc.) and to reveal the true cost of owning a credit card by disclosing and transparently the annual interest rate they charge. We consider that the websites that offer credit card comparison services in the Middle East contribute to the aggravation of the problem as they promote the benefits of cards and the monthly interest rate, but they rarely mention the annual interest rate of the cards. “

Independent financial advisors, on the other hand, achieved relatively good results in the survey.

“Financial advisors, like others in other professions, must deal with a wave of new regulations, including the various initiatives taken by the authorities in the Gulf Cooperation Council states that seek to improve the behavior of advisors, including the rules laid down by the Insurance Authority in The United Arab Emirates, due to enter into force in October 2020. The consultants have responded to these rules and the industry will be stronger as a result. Unlike the global financial crisis of 2008-2009, the Covid-19 pandemic, which began to affect Appear on the real economy and not In the financial markets, and based on our latest report, we are optimistic that the consultants can continue to have a relationship with their clients, especially consultants who provide digital solutions.

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