Promote Responsible Investment in Digital Finance

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:
  • Integrate the assessment of consumer protection policies into our investment policies, due diligence process, investment selection process as well as financing and shareholder agreements and use relevant covenants.
  • Develop an action plan and support investees (technical assistance, advisory or related support) integrating consumer protection practices in institutional operations, systems, policies, procedures and reporting. Progress towards the action plan can be linked to certain investment milestones, such as subscription, conditions precedent to disbursement, reporting, etc.
  • Promote strengthened commitment to an institutional code of ethics, approved by the board, signed (at least annually) by all employees and reviewed regularly as a “living” document.
  • Promote as may be relevant, selected industry standards, for example: Smart Campaign Client Protection Principles for Microfinance, Social Performance Management for Microfinance, GSMA Mobile Money Certification, BTCA Responsible Digital Payments Guidelines, G20/OECD Policy, EU Privacy Directives/GDPR, PSD2, ISO Certification, etc.