This paper marks the launch of a new IMF series, Fintech Notes. Building on years of IMF staff work, it will explore pressing topics in the digital economy and be issued periodically. The series will carry work by IMF staff and will seek to provide insight into the intersection of technology and the global economy. The Rise of Digital Money analyses how technology companies are stepping up competition to large […]
Digital Financial Services have progressed rapidly since the first mobile-money services in East Africa a decade ago. Their early success in Kenya and Tanzania sent telecom firms, banks, technology firms, and development institutions scrambling to launch similar services. Yet many or most of these new services found only limited success of their own. The process delivered valuable lessons to the industry, however, including insights about scale, effective engagement models, the […]
As populations age and birth rates decline in many parts of the world, digital solutions have an important role to play in ensuring financial well-being for older adults. Globally, the number of people aged 60 years or over has more than doubled since 1980, and the share of older adults is projected to double again by 2050. This paper, jointly released by the Better Than Cash Alliance and the World […]
Rampant wars, conflict, and persecution are driving the world’s displaced population to record high numbers. According to United Nations High Commissioner for Refugees (UNHCR), by the end of 2017, more than 68 million people worldwide were forcibly displaced—more than the entire population of the United Kingdom. More than a third of displaced persons have become refugees, seeking safety across international borders. A new IFC study—Private Sector & Refugees: Pathways to […]
In brief Our consumer study, one of the largest of its kind, offers banks and insurers deep insights into their customers’ attitudes and preferences. Banking and insurance customers are more willing than ever to share data—if their needs are met in return. We identified four consumer personas that vary based on how they value banking and insurance offers and services. Personalization: The expected prize for consumers’ data What do banking […]
Fintechs are innovating at every step of the financial services value chain, often through new value propositions, including flexible products and better ways to address the financial challenges faced by low-income customers. They are making financial services more affordable and accessible. They are improving the customer experience of financial services and accelerating use and engagement. They are also building the groundwork—including easier digital identity verification, collaborative customer due diligence, data […]
Copyright: World Bank Group Maintenance fees, minimum balance requirements, and high indirect access costs often keep low-income individuals from saving with financial institutions. Can digital financial services be the solution to their long-term saving? Across the developing world, financial institutions have leveraged digital technologies and innovative business models to expand access to digital financial services (DFS), such as digital transaction accounts and payment services, which serve as the gateway […]
Financial technology (fintech) has taken centre stage in the financial inclusion industry. Many believe that low cost, far-reaching digital solutions hold the key to reach out to the 1.7 billion people worldwide who are still excluded from formal financial services. Not only are fintech initiatives mushrooming, the number of investment activities is also increasing, including those by impact investors such as Triodos Investment Management. Exploring the promise and the pitfalls […]
Together with private sector investors, IFC has been leading a global effort to develop new guidelines for responsible investing in digital finance. These guidelines leverage IFC’s significant experience with the Equator Principles and responsible investing in micro, small, and medium enterprises (MSMEs) by focusing on strengthening governance, risk management, consumer protection, and financial well-being for the unbanked and underserved—as well as IFC’s experience as advisor and investor in the digital […]
New mobile money propositions have the potential to reduce the world’s unbanked population by more than a third The mobile phone could draw an extra 607 million into the financial mainstream – but access to mobile money is just the first step in achieving true financial inclusion Oslo, Norway (March 28, 2019) – A new report from Mastercard confirms the power of mobile technology to improve financial inclusion. The research […]