A framework for identifying and assessing crisis responses must take account of the special characteristics of microfinance which leads to the question of how regulators should respond. A review of current practice in a range of countries suggests there are six key steps to be taken at the level of regulation and policy.
Internet platforms are taking the world by storm, making it easy for third parties to exchange goods and services. Adding financial services can improve the experience, but what risks should financial service providers and regulators consider?
Agents play a crucial role in lowering the cost of delivery to reach the unbanked and underbanked population. An increasing number of countries, especially emerging markets and developing economies, allow a diverse array of banks and nonbank institutions to distribute digital financial services through agents.
A special licensing category for nonbank e-money issuers is considered a key regulatory enabler for inclusive digital financial services. This Technical Note compares the EMI license with the payments bank license that India, Mexico and Nigeria have created.
In addition to the behavior of market actors, regulation can have a substantial impact on the dynamics of competition in digital financial services markets. CGAP examines some regulatory levers that policy makers can deploy to promote more competition in emerging economies.
Regulators face a challenge in balancing policies on anti-money laundering and combating the financing of terrorism against their financial inclusion goals. This Technical Note provides guidance on using risk-based approaches to customer due diligence, with examples from around the world.
The expansion of digital financial accounts among poor customers has raised the question of whether e-money should be covered by deposit insurance and if so, how. This Technical Note examines the options while arguing that deposit insurance should not be the first line of defense in many emerging markets.
CGAP has developed a typology to help policy makers and financial service providers evaluate the financial inclusion potential of a new range of collaborative approaches to customer due diligence to combat money laundering and terror financing.
This Technical Note looks in detail at safeguards such as maintaining customer funds in bank accounts and diversifying funds across several banks to reduce the concentration risk. It also discusses the option – offered in some countries – of placing funds in other safe, liquid assets.
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,