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 […]

PARTNERING WITH PROVIDERS TO SET DFS STANDARDS FOR CLIENT PROTECTION

Alex Taylor, Wayne Hennessy-Barrett
17 Jan 2019

By Alex Taylor, Wayne Hennessy-Barrett This post, the first of two on pilot assessments for digital credit standards, features a Q & A with 4G Capital CEO Wayne Hennessy-Barrett. Digital lending has the potential to close the credit demand gap for unbanked, low-income customers, but the rapid growth of the sector has raised consumer protection concerns. In Kenya alone, a leading testing ground for the digital credit sector, there are […]

3 DATA PROTECTION APPROACHES THAT GO BEYOND CONSENT

David Medine, Gayatri Murthy
17 Jan 2019

By David Medine and Gayatri Murthy As digital financial services (DFS) gain popularity in developing countries, it’s becoming more important than ever for data protection legislation to protect consumers’ rights. As we argued in an earlier blog post, simply obtaining consent is not an effective way to protect data rights. Below are three legal approaches to data protection for the 21st century that go beyond consent . By taking one or more of these approaches, policy […]