This study looks at Pakistan’s nearly decade-old experience with regulating digital financial services (referred in the local context as branchless banking) as a test case for the RIA Lite methodology,
Under the right circumstances, financial inclusion, stability, integrity, and consumer protection (collectively referred to as I-SIP) can be positively related, and the failure to consider any one of these objectives can lead to problems.
This Brief explains why approaches to inclusive finance that are currently widespread do not share the potentially destabilizing attributes of other types of shadow banking, concluding by identifying some risks worth monitoring as the picture continues to evolve.
Pakistan is the second country selected for an I-SIP rapid research exercise. The main objectives of the research were to develop and refine the I-SIP Methodology, raise awareness of I-SIP linkages, and help Pakistani policy makers adopt the I-SIP Methodology.
This report introduces and develops the concept that a proportionate approach to any financial inclusion measure (and specifically to its regulatory and supervisory design and implementation) should seek to optimize the I-SIP linkages:maximizing synergies and minimizing tradeoffs and negative outcomes.