Bringing together global stakeholders to share ideas, research, and solutions on emerging consumer risks in inclusive finance.

THE COMPLEXITY OF THE INCLUSIVE FINANCE LANDSCAPE DEMANDS AN APPROACH THAT FACILITATES ANALYSIS AND ACTION.

For years, we have known that rapid digitalization and technology-led business models were changing the inclusive finance landscape, challenging regulatory capacity, and testing policymakers. The pandemic exacerbated existing risks in accessing financial services and created new risks due to the acceleration of digital financial services. The Responsible Finance Forum (RFF) aims to tackle critical questions and address consumer protection gaps to improve outcomes for low-income and vulnerable people.

RFF Working Groups

The RFF working groups convene, brainstorm, and develop outputs to inform the sector on the most pressing issues and potential solutions. There are currently three RFF working groups focused on redress mechanisms, digital credit, and artificial intelligence.

  • Goal: To collate best practices and innovative approaches around responsible redress mechanisms.

    Chaired by: Better than Cash Alliance (BTCA), Bangko Sentral ng Pilipinas

    The exponential growth in the adoption of digital payment services has brought an increase in disputes and grievances, underscoring the necessity for effective and responsible redress mechanisms.

    Many first-time users, especially low-income users, find it difficult to comprehend and navigate the resolution processes, and many lack alternative financial resources while awaiting resolution. Women may face additional barriers due to limited awareness, concerns about sharing personal information, and other constraints.

    Establishing user-friendly and robust recourse mechanisms is critical to providing low-income and women users critical safety nets.

  • Goal: To help responsible digital credit stakeholders better understand the range of solutions available to address digital credit consumer risks.

    Chaired by: Consultative Group to Assist the Poor (CGAP)

    Following an ecosystem approach, CGAP aims to understand digital credit solutions implemented by key stakeholders (e.g., regulators, supervisors, industry associations, consumer associations).

    The group also works to build knowledge of how solutions have been implemented to address consumer risks and what benefits and challenges they have faced.

    The working group encourages and promotes the exchange of knowledge, insights, and feedback on ongoing and planned responsible digital credit initiatives.

  • Goal: To map out the issues around responsible AI practices in the inclusive finance sector.

    Chaired by: Center for Financial Inclusion (CFI), Office of the United Nations Secretary-General’s Special Advocate for Inclusive Finance for Development (UNSGSA)

    Rapid digitalization of business models and delivery of financial services to low-income households are possible due to the use of algorithms, AI models, and machine learning. However, in a world that is inequitable, data-led models can mirror and exacerbate inequities and unfair practices.

    While several frameworks and policies have emerged, there remains a lack of consensus on best practices and, in particular, on considerations for the implications for inclusive finance.

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