Research & Analysis

2018 Trends in International Funding for Financial Inclusion

International funding increased by 12 percent in 2018 to approximately $47 billion, a trend that has been consistent over the past five years. A third of international funders have been purposefully aligning their financial inclusion efforts to the achievement of SDGs.

International Funding for Financial Inclusion in 2018: Global Data

Data snapshots are available at the global and regional levels and represent funding commitments from 23 international public and private funders.

Nonbank E-Money Issuers vs. Payments Banks: How Do They Compare?

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.

Is Data Privacy Good for Business?

Do poor customers value data privacy? Six experiments in India and Kenya indicated they do and are willing to pay for it. For providers, this suggests that offering products with privacy and protection features can give them a competitive market edge.

The Trillion-Dollar Question

What must providers do differently to make digital payments work better than cash for merchants and their customers? Peter Zetterli’s search for an answer led him to a surprising question: What if trying to be better than cash is the wrong approach?

Fair Play: Ensuring Competition in Digital Financial Services

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.

A Tale of Two Sisters: Microfinance Institutions and PAYGo Solar

Decisions on whether to compete or collaborate with new types of financial services providers and how to do so are some of the biggest challenges that MFIs face. Two global microfinance groups, Baobab and FINCA, have concluded that PAYGo financing can help them reach additional clients.

Agent Networks at the Last Mile

Most digital financial services users require agents to help them switch between worlds of cash and digital currency. Global evidence suggests six principles for building viable agent networks in rural areas home to poor, financially excluded populations.

Risk-Based Customer Due Diligence: Regulatory Approaches

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.

Deposit Insurance Treatment of E-Money: An Analysis of Policy Choices

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.