Banking advertising under the microscope: transparency is key

Banking advertising is the first point of contact between institutions and their customers and can have a bearing on financial behaviour. The Banco de España’s tasks include oversight of the advertising of banking and payment products and services offered by banks and other supervised institutions.

As part of this task, the Banco de España verifies that the information advertising provides on the products offered is clear, sufficient and impartial. It also reviews advertising not placed directly by financial institutions but that includes offers for any of their products or services, such as financing for a holiday or a new car. Any advertising that fails to comply with regulations must be rectified or withdrawn to prevent consumers from making decisions on the basis of incomplete or biased information.

New banking products and services are constantly being offered through ever newer channels. Accordingly, the Banco de España has strengthened its oversight systems, harnessing a technological tool to monitor a greater number of advertisements in a wider range of media, including digital and social media.

The general principles and criteria laid down in the regulations were recently revised by the Banco de España in a new circular on the advertisingAbre en ventana nueva of banking products and services. Disclosure requirements have been strengthened to ensure that the general public is able to compare and select the products that best suit their needs. Also, institutions are required to tighten controls at the design stage of their advertising campaigns.