MARKETPLACE LENDING ASSOCIATION BACKS GUIDELINES FOR RESPONSIBLE INVESTMENT IN DIGITAL FINANCE

18 Mar 2019

The Marketplace Lending Association (MLA) joined as the latest Signatory to the “Guidelines for Investing in Responsible Digital Financial Services.” These guidelines were co-developed by an Investor Working Group of more than 30 members including IFC, CDC and DEG, among others, through feedback and lessons culled from existing global industry principles and frameworks. The MLA represents some of the most prominent online lenders in the US. Names like Prosper, LendingClub, and SoFi […]

A GROWING TREND IN FINANCIAL REGULATION: THEMATIC SANDBOXES

Schan Duff
18 Mar 2019

By Schan Duff In 2016, the UK Financial Conduct Authority (FCA) pioneered the concept of a market-driven regulatory sandbox with cohorts selected from a general pool of aspiring innovators. Reminiscent of private-sector incubators or accelerators, the FCA’s sandbox model had immediate intuitive appeal for regulators and fintech innovators seeking common ground. Scan the globe today and you will find that most of the active regulatory sandbox programs follow a similar approach. […]

PROTECTING BORROWERS FROM THE UNSCRUPULOUS LENDERS

26 Feb 2019

Consultations on setting up new regulations to protect consumers from  unscrupulous lenders. Imagine paying interest rates of between 520 to over 1500 percent over a year on a loan. That’s the unfortunate reality for some Papua New Guineans, who borrow money from unregulated money lenders operating in the country. A review by Bank of Papua New Guinea and IFC, the International Finance Corporation, a member of the World Bank Group, […]

FINTECHS AND BIG DATA: OPPORTUNITIES, RISKS, AND APPROACHES TO CONSUMER DATA PROTECTION IN KENYA AND EAST AFRICA

Laura Caron
26 Feb 2019

By Laura Caron Saving for healthcare on a mobile phone (SDG3) Nairobi, Kenya by ITU Pictures, on Flickr It is nearly impossible to hear about digital financial services (DFS) without also hearing about big data. The term “big data” refers to datasets that are large, rapidly-changing, and/or that cover a wide variety of information. These kind of datasets have many applications in DFS, and at least 24 African fintechs use […]

GAMIFICATION: JACKPOT OR FOOL’S GOLD?

26 Feb 2019

  Gamification is a trendy term in some circles, a magic wand of sorts that suddenly makes finance appealing to the average layman and does wonders to revenue and customer acquisition. A deeper look into the gamification of financial services reveals inherent limitations — but also untapped potential — from both the standpoint of financial literacy and usage. A New Cheat Code? As financial systems diversify and new technologies like […]

THE PROMISE OF PSYCHOMETRIC-BASED CREDIT SCORING IN FINANCIAL INCLUSION

Saul Fine
12 Feb 2019

By Saul Fine is Founder, Chief Scientist & CEO of Innovative Assessments More and more lenders around the world are using alternative data to improve their credit models and better serve the underbanked. Alternative credit data are typically derived from non-traditional sources of financial-related information, such as mobile/internet transactions and payments. But these data can also be non-financial in nature, and as such, provide lenders with a very different kind of credit information. Non-financial data […]

HOW DOES DIGITAL FINANCE IMPACT LOW-INCOME CLIENTS? INSIGHTS FROM A NEW ‘EVIDENCE GAP MAP’

NIAMH BARRY
07 Feb 2019

Image courtesy of Institute for Money, Technology and Financial Inclusion. For the most part, the digital finance community is confident that the digitization of financial services presents an opportunity to get people on the track to living happier, healthier and more prosperous lives. But we should not assume that these are inevitable or exclusive outcomes. Where we have hope, we also have concerns. However, we know that the more we learn about […]

WHY RESPONSIBLE FINANCE INSTITUTIONS SHOULD EMBRACE “UBERIZATION”

Andrée Simon, President & CEO of FINCA Impact Finance
07 Feb 2019

By Andrée Simon, President & CEO of FINCA Impact Finance The sharing economy is forcing banks to compete with dynamic tech firms outside the traditional financial sector. While competition is key, “Uberization” is also creating opportunities for synergy between banks and P2P platforms.   The Sharing Economy The term “sharing economy” dates back to 2007 when Harvard Professor Lawrence Lessig used it to describe how the Internet was changing the world of work. Since […]

LEVERAGING DIGITAL PRESENCE FOR CONSUMER RELATIONSHIPS

Isabelle Smith and Laura Caron
31 Jan 2019

By Isabelle Smith and Laura Caron — In June 2018, co-founding investors and endorsers became signatories to the 10 Guidelines for “Investing in Responsible Digital Financial Services”. These Investor Guidelines directly respond to the increased opportunities and evolving risks emerging in digital financial services, and they range from fostering a proportionate legal and regulatory framework to preventing over-indebtedness, as well as managing risks. The two organizations highlighted below embody, in […]

4 KEY FINANCIAL SERVICES TRENDS IN THE NEW AGE OF WORK

Bill Ready, Executive Vice-President and Chief Operating Officer, PayPal
28 Jan 2019

By Bill Ready, Executive Vice-President and Chief Operating Officer, PayPal– This article is part of the World Economic Forum Annual Meeting Workers need urgent access to new types of credit and savings. Image: Unsplash   The rise of artificial intelligence (AI), machine learning (ML) and automation, the proliferation of internet-based technology platforms, and the move toward more entrepreneurial sources of income are combining to fundamentally shift the ways people work and […]