Foster a Proportionate Legal and Regulatory Framework

Potential Actions for Signatories are based on recent industry examples, and are not intended to be used as a compliance checklist given digital financial services standards are still evolving.  Rather, examples of potential actions should be used for a more comprehensive due diligence assessment, and an opportunity for Signatories to develop new products and solutions for customers. Signatories may test, refine and adapt current industry evidence so as to be more relevant to their digital financial services investments, business models, market context, among other factors.
Examples of potential actions:
  • Regularly exchange insights within the investor community on regulatory challenges or lessons from operating
    in markets with widely varying stages of market development (examples may include regulation to address
    aggressive marketing techniques, terms & conditions displays on mobile screens, cooling off periods,
    transparency in pricing/interest rates, standardized product features; ethical collection practices, etc).
  • Meet with (a) financial sector policymakers, regulators, and supervisors; and (b) IFI/DFIs during due diligence to
    offer know-how, advice, and guidance as mediators in the private sector development and promoters of digital
    financial inclusion. This potential action serves to avoid unintended dysfunctionalities of regulation or overreaction
    in politically heated contexts.
  • Support local legal and regulatory requirements, particularly those that are intended to strengthen consumer
    protection. Where such local regulatory requirements do not exist, or are inadequate, align with relevant
    international or industry standards (e.g., codes of conduct).
  • Engage proactively with policymakers and regulators so that rule-making is informed by a firm understanding
    of the technological and business model components of digital financial services that deepen financial
    inclusion; consider ways to share data regarding how services are being used by under-served populations.
  • Participate in industry-wide initiatives or associations that develop tools or resources for financial services
    providers intended to improve the quality of digital financial services (e.g., local bank or FinTech associations
    that offer training to members).