FECIF Editorial | November 2026

Europe has been working towards a more integrated, competitive and accessible financial market. Digitalisation has multiplied distribution channels, facilitated access to financial products and made an increasing number of offers available at the click of a button. But this development raises a fundamental question: does having more options necessarily lead to better decisions for consumers?

The answer depends on an often underestimated factor: the ability to compare. Competition is not measured solely by the number of institutions or products available. It also depends on whether consumers can genuinely understand the alternatives, assess their respective costs and benefits, and choose the option that best meets their needs.

This distinction is particularly relevant in the European credit market, where the diversity of products, national regulatory frameworks and commercial practices continues to make comparisons difficult.

A loan is about much more than the advertised interest rate. The repayment term, required insurance policies, bundled products, fees and early repayment conditions can significantly affect the overall cost of borrowing. Two seemingly similar offers may entail very different financial commitments over time.

Moreover, even when information is provided in accordance with legal requirements, it is not always easy to interpret. Lengthy documents, technical terminology and different ways of presenting commercial terms can turn an important decision into a complex exercise, particularly for those without specialist financial knowledge.

The European Union has sought to address these challenges through pre-contractual information requirements, consumer protection rules and the harmonisation of lending practices. The Mortgage Credit Directive and the revised Consumer Credit Directive reflect these concerns. However, the availability of standardised information does not, in itself, guarantee that consumers can use it to make informed decisions.

It is precisely in bridging the gap between having access to information and being able to turn it into an informed choice that financial advice and credit intermediation can add value.

The role of these professionals should not be limited to presenting offers or facilitating the conclusion of credit agreements. It should involve helping consumers identify relevant terms, understand the differences between alternatives and anticipate the financial consequences of their decisions. In an increasingly digital market, this human and specialist dimension remains essential.

Naturally, this contribution comes with responsibility. Trust depends on professional qualifications, the quality of the service provided and transparency regarding remuneration models, commercial relationships with financial institutions and the range of offers actually considered. Consumers should understand not only the terms of their credit agreements, but also how the alternatives presented to them are selected.

Transparency is therefore not an obstacle to credit intermediation. It is a prerequisite for its credibility and for recognition of the value it adds to the functioning of the market.

There is another dimension that deserves attention at European level: consumer mobility. The ability to switch financial institutions or transfer a loan is a tangible expression of competition. Yet this ability becomes less effective when costs, complex procedures or difficulties in comparing offers discourage consumers from switching. A genuinely competitive market should enable consumers to benefit from better terms not only when taking out a loan, but throughout the entire credit relationship.

The development of Open Finance could create new opportunities in this area. The sharing of financial data, with consumers' consent and subject to appropriate safeguards for security and data protection, has the potential to facilitate the assessment of alternatives, reduce information asymmetries and make processes more efficient.

However, technology does not eliminate the need for interpretation. On the contrary, the greater the volume of information available, the more important it becomes to ensure that it is presented clearly and used in consumers' best interests. Innovation should serve to improve the quality of decisions, not merely to speed up the lending process.

This is a challenge shared across European markets. Regardless of national specificities, households face financial decisions with long-term consequences, against a backdrop of increasingly complex products and changing distribution channels.

The debate on the future of financial services in Europe should therefore not focus exclusively on technological innovation, regulatory harmonisation or expanding the range of products available. It must also recognise the importance of financial literacy, meaningful comparability and access to qualified professional guidance.

Building a more competitive European financial market requires consumers who can genuinely exercise their freedom of choice. And that freedom can only be meaningful when information is understandable, alternatives are comparable and consumers can trust the professionals who support their decisions.