CGAP contracted with an in-country microfinance expert to assess the Indian consumer protection policy environment for low-income and/or inexperienced customers. This report is based on the findings of interviews conducted as well as desk research.
Transformational branchless banking heightens the consumer-related concerns of regulators and supervisors because it combines the use of agents and technology-enabled devices to serve large numbers of less educated and inexperienced customers.
Many in the private sector believe reaching large numbers of mass market clients is a precondition to large-scale profits, but at the same time, they are uncertain about how quickly branchless banking will gain traction with the unbanked, low-income clients who make up the mass market.
This Focus Note distills lessons from four microfinance markets: Nicaragua, Morocco, Bosnia and Herzegovina (BiH), and Pakistan. These countries have all experienced a microfinance repayment crisis after a period of high growth and are important microfinance markets in their respective regions.