Basic Regulatory Enablers for Digital Financial Services

Paper
Date Published: 
May 2018
Author: 
Stefan Staschen & Patrick Meagher
Publisher: 

Guiding policy makers to create an enabling environment for digital financial services

This Focus Note takes a close look at four building blocks in regulation — basic regulatory enablers, and how they have been implemented in practice. Each of the enablers addresses a specific aspect of creating an enabling and safe regulatory framework for digital financial services (DFS). The publication’s focus is on DFS models that specifically target excluded and underserved market segments. It analyzes the frameworks adopted by 10 countries in Africa and Asia where CGAP has focused its in-country work on supporting a market systems approach to DFS. The four basic enablers are as follows:

  1. Nonbank E-Money Issuance;
  2. Use of Agents;
  3. Risk-Based Customer Due Diligence (CDD);
  4. Consumer Protection.

This research aims to understand how a range of countries has addressed the four enablers in their regulatory frameworks and to see what lessons can be learned from their experience. The countries covered are Kenya, Rwanda, Tanzania, Uganda, Côte d’Ivoire, Ghana, Bangladesh, India, Pakistan and Myanmar.

Type: 
Paper