For providers of mobile money services looking to navigate complex regulatory environments, there are valuable lessons that can be extracted from failed experiences - which can sometimes be traced back to challenging legal environments.
Financial inclusion in India has the mandate at the highest level of policy making, but the market has yet to respond positively to regulations that allow both public and private actors to pursue digitized payment services. Understanding demand for financial services is key to design services that reach scale.
Interoperability can greatly expand the reach and usefulness of financial services for the poor. What do regulators need to know about the complex interplay between interoperability and financial inclusion?
Small and medium banks in Brazil are starting to take advantage of new regulations that make it easier to adopt fully digital business models. What impact might this development have on financial inclusion in the longer term?
Regulations in the West African Economic and Monetary Union have enabled mobile money providers to double their agent networks since 2014, while restricting banks and microfinance institutions. Better regulations would create a level playing field and expand financial inclusion.
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.
Policy makers, regulators, and supervisors in countries where digital financial inclusion is expanding exponentially see the financial inclusion promise clearly. Yet, they are grappling with the fast-changing risk picture.
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.