Consumer and data protection risks have historically been treated as separate concerns. Instead, all authorities involved with consumer data protection should work together to regulate in a way that ensures the responsible use of consumer data.
Mapping the stakeholder landscape can be a useful tool to assist market conduct authorities in designing various aspects of a consumer advisory panel, ensuring they make sound strategic decisions about whom to involve and how best to do so.
CGAP undertook qualitative research on how industry associations can promote responsible digital finance. We identified 10 activities that support customer-centricity, capability, and collaboration – the three building blocks of responsible digital financial services ecosystems.
What was once an edgy new market with promises of high returns is now better known for scandal and volatile losses. Better protections for crypto consumers are urgently needed, especially for those who are low-income and least able to weather losses.
Open finance gives consumers control over their personal financial data, leading to more suitable and better-targeted financial services. But this ability to move entire financial histories both empowers consumers and poses risks.
This year, the Findex database provided new information on the quality of customers’ journeys in accessing and using financial services, including some of the risks consumers face, and the outcomes they experience - we break down the numbers.
While digital financial services are driving financial inclusion in Côte d’Ivoire, we are also seeing the emergence of significant consumer risks that will require concerted action from all stakeholders in the digital finance ecosystem to counteract.
How can FCP authorities bridge the regulator-consumer gap and ensure the financial marketplace is fair and balanced for all consumers? One promising solution is consumer advisory panels, which elevate the collective consumer voice.
Emerging evidence shows digital finance consumer risks are increasing and, if not mitigated, could undermine users’ trust. We highlight risks that affect digital financial services users in Sub-Saharan Africa and measures to mitigate them.
As big tech platforms enter the financial services space, they could potentially undermine competition in ways that set back financial inclusion. How can regulators preserve healthy competition and harness the potential of platform-based finance?
As big techs and other platforms ramp up their financial service offerings in emerging markets, regulators can look at developments in advanced economies to get a glimpse into the data protection issues they will need to consider.
Between the global big techs and the local unicorns, platforms will soon be a major force in financial services if they are not already. Here are the three main sets of challenges they pose for regulators.
A tool piloted by CGAP and 4G Capital reliably measures changes in borrower behavior to detect financial stress. If stress indicators are found to predict future repayment, the tool could also serve as an early warning system for issues like default.
Last year, news reports emerged of aggressive debt collection amid India's digital credit boom. New research shows that early warning signs on social media preceded the reports, highlighting the value of social media for consumer protection.
As media reports of abusive lending practices emerge amid India’s digital consumer credit boom, the country can steer digital credit in a more promising direction by ramping up its efforts to listen to consumers and taking the necessary actions.