Kenyan regulators took action to disclose Lipa na M-Pesa’s pricing structure. The move highlights a growing problem as digital financial services expand: Existing financial consumer protection rules are not being enforced consistently on these delivery channels.
But what does this movement towards codes of conduct amongst microfinance associations mean from the policy perspective? Policymakers (and the rest of us) cannot count on the microfinance industry to handle client protection all on its own.
More and more policymakers are now recognizing that financial exclusion is a risk to political stability and impedes economic advancement, and that financial inclusion measures can complement, not undermine, financial stability, financial integrity, and consumer protection.
Davel helped create South Africa’s National Credit Regulator, one of the world's most capable financial consumer protection agencies. In a new Focus Note, Davel draws on a number of debt crises and distills his own experience into practical guidance.