Mobile money has had bad press lately for fraud-related cases. Most of the reported cases were either the result of internal employees misusing the system to cause operator losses or fraudsters trying to scam unsuspecting users. There is another angle that rarely gets any press—when users or agents abuse the platform and use it in rogue ways that it was never intended.
This debate over internet data tracking has important implications for financial inclusion and in particular new channels like mobile banking that are expanding access to finance to consumers in low-access markets. Some see the end business model for these channels as providing low-cost or free services to consumers, making their profits instead by selling their data to companies looking to offer these consumers tailored products. In this post, we present two different viewpoints from Rafe Mazer, who focuses on financial consumer protection, and Sarah Rotman, who focuses on product innovation.
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?
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.