Digital Finance

digital-financeDigital financial services (DFS) can expand the delivery of basic financial services to the poor through new technologies like mobile phones, electronic money and new channels such as retail agents. These channels can drastically drive down costs for customers and service providers, opening the door to remote and underserved populations to products such as micro loans, insurance and remittances services. Countries such as Kenya, India and China have experienced remarkable advances in financial inclusion using digital financial services, which leverage information and communication technology, and agent networks as cost-efficient distribution channels. Digital finance is also a powerful means to expand access beyond financial services to other sectors, including agriculture, transportation, water, health and education. Innovative payment models linked to products, such as solar panels, or to utilities such as water, are being tremendously successful in many low income countries.