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The Implications of Data Tracking on Financial Inclusion

This debate over internet data tracking has important implications for financial inclusion and in particular new channels like mobile banking that are expanding access to finance to consumers in low-access markets. Some see the end business model for these channels as providing low-cost or free services to consumers, making their profits instead by selling their data to companies looking to offer these consumers tailored products. In this post, we present two different viewpoints from Rafe Mazer, who focuses on financial consumer protection, and Sarah Rotman, who focuses on product innovation.

Regulation Spurs Innovation in the Philippines

More and more policymakers are now recognizing that financial exclusion is a risk to political stability and impedes economic advancement, and that financial inclusion measures can complement, not undermine, financial stability, financial integrity, and consumer protection.

Pyramids and Ponzis: Financial Scams in Developing Countries

There are many different flavors of financial crime. Often, highly visible ponzi or pyramid schemes occur in developed countries. But emerging economies are not immune to these problems.

Five Elements of A Social MFI

MFIs have the potential to go well beyond financial inclusion, and many do so by combining financial services with other non-financial interventions in coordinated programs to eliminate poverty and its manifestations.

Beyond the Mzansi Account in South Africa – Targeting Usage

Between 2004 and 2008 the percentage of banked South African adults increased from 46% to 63%. This feat was driven primarily by the six million Mzansi accounts that were opened over that period – two-thirds of which by people that had never before had a bank account. However, approximately 30% of these were inactive. This post explores the importance of understanding the financial needs of low income clients, and how business models need to adapt to meet those needs on an economically viable basis.

What Policies Make Finance Work for Africa’s Smallholder Farmers?

In some African countries as much as 80% of the population is employed in the agricultural sector. Even so, these countries need improved productivity and access to financial services to ensure food security and reach their potential. So, what policies can support innovative finance that reaches smallholder farmers?

Consumer Lending and Overindebtedness in Latin America

In Latin America household debt levels have been rising in recent years. Increased consumer debt level can in part be expected with growing economies. However, in several markets these debt levels may be leading large groups of consumers towards overindebtedness, and could pose a risk to economic growth, household well-being, and financial institutions with significant levels of consumer debt in their portfolios. This post examines some interventions underway to better understand the phenomenon of consumer lending and its implications.

Scammed: Pyramids and the Financial Inclusion Agenda

Large-scale financial crimes such as pyramid and ponzi schemes that promise high returns on dubious investments are always big news. Clearly they can lead to devastating losses for consumers, the great majority of whom typically lose all the money they invest. This in turn can threaten gains in financial inclusion by eroding potential new consumers’ confidence in the formal financial system.

Are You Getting Your Share? Revenue Protection in Mobile Money

Mobile money has had bad press lately for fraud-related cases. Most of the reported cases were either the result of internal employees misusing the system to cause operator losses or fraudsters trying to scam unsuspecting users. There is another angle that rarely gets any press—when users or agents abuse the platform and use it in rogue ways that it was never intended.

Banking 100 Million Pakistanis

This post on a recent report on Interoperability provides insights on why interoperability might be important, how we should think about it from a policy and market development perspective and how it should be measured, especially as it relates to financial inclusion.

Towards Behaviorally-informed Financial Consumer Protection

Behavioral economics is the science of human decision-making and how people’s biases and weaknesses can lead them to make harmful economic decisions.

MFI Shareholders And Directors Can Help Achieve Social Goals

As MFIs try to unravel industry expectations on social performance, there is often a missing piece in MFIs’ internal functioning.

Does Client Protection Matter to Clients?

What do microfinance clients think about client protection? Do client protection principles really matter to them?

Behavioral Economics for Market Regulation & Financial Education

Fostering trust and confidence in the soundness of financial markets and its players is crucial towards ensuring smooth and effective financial intermediation.

The Promises of Evidence-based Consumer Protection Polices

The expansion in credit and other financial products worldwide holds great promise to allow families to invest durable goods or human capital, or simply smooth consumption over time.

Getting Providers to Think about Client Protection

Important reforms are taking place today aiming to strengthen confidence and responsible practices in (micro) finance. However, financial authorities are not the only ones making efforts to build effective and complete frameworks to ensure responsible finance.

Is Behavioral Finance Relevant to Policymaking?

There is growing interest in—and evidence of—the role that behavioral economics can play in improving consumer financial protection policies.

Moving Towards A Robust Global Financial Data Architecture

We should not miss the opportunity for continued investment in data infrastructure. The capability to analyze and interpret data will also be key to advance financial inclusion.

Exclusion Costs: Financial Inclusion in the Arab World

Arab policymakers, who long regarded microfinance as charity for the poor, are realizing that a financial system that serves only 20 percent of the population is a key ingredient in the recipe for political instability.

What is the Telecom Regulator’s Role in Fostering Mobile Money?

Mobile money feels right for mobile network operators (MNOs): it is an extension of the basic prepaid platform and distribution networks they already operate. Mobile money does require greater surveillance against fraud and money laundering measures, but it’s all fundamentally about secure messaging.