Basic Regulatory Enablers for Digital Financial Services
Digital financial services (DFS) differ from traditional financial services in several ways that have major implications for regulators. The technology enables new operating models that involve a wider range of actors in the chain of financial serv...
| Main Authors: | , |
|---|---|
| Format: | Brief |
| Language: | English |
| Published: |
World Bank, Washington, DC
2018
|
| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/692101533183892208/Basic-regulatory-enablers-for-digital-financial-services http://hdl.handle.net/10986/30275 |
| Summary: | Digital financial services (DFS) differ
from traditional financial services in several ways that
have major implications for regulators. The technology
enables new operating models that involve a wider range of
actors in the chain of financial services, from design to
delivery. The advent of DFS ushers in new providers such as
nonbank e-money issuers (EMIs), creates a key role for
agents in serving clients, and reaches customers who have
otherwise been excluded or underserved. This in turn brings
new risks and new ways to mitigate them. For many years now,
CGAP has been interested in understanding how these new
models are regulated, and how regulation might have to adapt
to enable DFS models that have potential to advance
financial inclusion. This focus note takes a close look at
four building blocks in regulation, which we call basic
regulatory enablers, and how they have been implemented in
practice. Each of the enablers addresses a specific aspect
of creating an enabling and safe regulatory framework for
DFS. Our focus is on DFS models that specifically target
excluded and underserved market segments. The authors
analyze the frameworks adopted by 10 countries in Africa and
Asia where CGAP has focused its in-country work on
supporting a market systems approach to DFS. |
|---|