It includes documents available from CGAP, USAID, the World Bank, GSMA, and other organizations that … Op Ed by Task Force Member ..... Media. Asian Development Bank. Complex and confusing user Against this backdrop, the discussions at the Responsible Finance Forum focused on risks with particular relevance to digital financial services, including breaches of data protection, fraud, and inadequate consumer recourse, among others that pose challenges for both financial service providers and regulators. Responsible Finance and Operations Officer, Microfinance & Digital Finance Practice, Financial Institutions Group. Financial inclusion enables individuals and firms to participate in and benefit from the formal financial system. 5. Responsible digital financial services Technological innovation is enabling financial service providers (FSPs) to increase their outreach enormously through the provision of digital financial services (DFS). 2. For more information about Responsible Finance Forum VI: Evidence and Innovation for Scaling Inclusive Digital Finance, including presentations and a summary of event outcomes, visit here. The Community is an important first step – but it’s only a first step. The COVID-19 pandemic could be a game changer for digital financial services. From the Center for Financial Inclusion. This issue will be addressed at the Responsible Finance Forum in Antalya, Turkey, September 7-9, 2015. We are a cornerstone of the World Bank Group’s 2020 Universal Financial Access Goals, we contribute to the United Nations’ 2030 Sustainable Development Goals, and our work in responsible digital financial services remains a priority of the G20 and the Global Partnership for Financial Inclusion. Low-income households and small firms can benefit... Financial institutions and governments have been working for years to leverage digitized G2P for women’s financial inclusion and economic empowerment. Seven Key Concerns of Digital Financial Services (DFS) Customers Source: CGAP 1. Only 17% agree with the statement: “Digital financial service providers are currently doing an adequate job of protecting consumers.” Even among financial service providers, only 35% responded that they were doing an adequate job. Responsible Digital Finance Rafe Mazer (firstname.lastname@example.org) May 18, 2017. – Providers of DFS that are digital only, that provide dedicated DFS as their main service offering But while digital financial services (DFS) offer a multitude of benefits for the poor, they are not without their own set of challenges. To prepare the list of... Read more. It is powered by compliant technologies and products that increase access in a fair and increasingly personalized manner. Prevention of Over-Indebtedness 15 3. Responsible Digital Finance With the rapid adoption of digital financial services, this series focuses on how to foster a more responsible ecosystem through examining the biggest consumer risks, promising mitigation efforts and latest evidence and data on the issue. Financial inclusion in the digital economy. RESPONSIBLE DIGITAL CREDIT: WHAT DOES RESPONSIBLE DIGITAL CREDIT LOOK LIKE? The Landscape of Digital Credit Providers 7 Marketplace Lenders 7 Other Digital Lenders 10 2. The reluctant consensus was that little is known and there is still a lot to learn. 3. Their emails are email@example.com, firstname.lastname@example.org, and email@example.com respectively. Although the broader financial inclusion community seems to agree that this area deserves more attention, it also agrees that there are significant gaps in our knowledge of both the perceptions and experiences of consumer risks with digital financial services globally. Meet the leaders who provide strategic guidance, Stay up to date on the latest developments at CGAP, Find out more about why financial inclusion matters, Review annual reports, strategy and charter, Contact us with questions and media inquiries, A child plays with a mobile device with his mother working in the background, G20 Global Partnership for Financial Inclusion meeting, Basel II meeting among Standard Setting Bodies, code of conduct for mobile money providers, Safaricom Launches Feature to Stop Erroneous Transfers: Hakikisha, DFS Risk: “When It Works, It’s Great; When It’s Bad, It’s Awful", http://www.afi-global.org/library/publications/mobile-financial-service…. There is evidence of a clear tension between the advantages of digital financial services and the risks to customers. 6 Our Shared Digital Future Executive Summary A responsible approach from business will be essential to managing digital transformation. Making Finance Work for Africa Partnership at the AfDB, G20 and the Global Partnership for Financial Inclusion, LAUNCH OF CEO FORUM FOR OIKOCREDIT PARTNERS IN AFRICA. “Digital wage payments have the potential to drastically reduce administrative cost and worker time off production lines, while promoting enhanced financial inclusion and financial capabilities of workers.” Craig Churchill, Chief of Social Finance Programme, ILO Geneva, said: “The ILO celebrates its centenary this year. IFC Digital Finance Tools. Together with private sector investors, IFC has been leading a global effort to develop new guidelines for responsible investing in digital finance. 8. Ninety-seven percent believe that digital financial service providers bear the primary responsibility for mitigating consumer risks. As part of its network-wide digital transformation, FINCA rolled-out ‘CLICK’, a new financial product that empowers users to take control of their finances. providers of pay-as-you-go solar products and other products-as-a-service delivery models with an embedded financial service within (i.e. Other vulnerable populations were not far behind: risks to the elderly (77%), rural populations (72%), and women and girls (50%) all merited “particular consideration.” Urban populations were seen as the least vulnerable to the risks of DFS. July 10, 2019 0. As digital credit providers have grown exponentially over the past few years, and as digital products and models have proliferated, so too have concerns around consumer protection. In Bangladesh, for example, annual growth in the number of mobile money users, agents and … 6. 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