Dutch Authority for the Financial Markets sets five expectations for banks to counter discrimination in services

The Dutch Authority for the Financial Markets has published the results of a review of how five large banks tackle discrimination in their services, and said banks should actively address experienced discrimination. The report sets out five supervisory expectations and related recommendations, reflecting the AFM’s view that discrimination can arise as an unintended consequence of processes designed to reduce risk and can harm customer interests. The review was intended both to gauge the maturity of banks’ anti-discrimination approaches and to prompt firms to analyse their own processes and customer outcomes. The AFM said the participating banks have taken constructive steps and now recognise the problem of experienced discrimination, with increasing focus on embedding controls structurally through outcome monitoring and timely process adjustments to avoid indirect exclusion of certain groups. Its five expectations cover board-level ownership of a shared vision, organisational arrangements to detect and address discrimination, a culture aimed at preventing discrimination, appropriate communication during customer reviews, and the use of signals and complaints to prevent discrimination. The AFM encouraged all banks to use the report’s expectations and recommendations, and noted that the work follows earlier research by De Nederlandsche Bank as part of joint supervisory efforts on this issue.