Responsible Finance Forum

Investor Guideline 9: Preventing Over-Indebtedness in Digital Credit Markets | Investors’ Checklist

01 April 2020

This discussion paper relates to Principle 9 of the Investor Guidelines for Responsible Investing for Digital Financial Services (DFS), which pertains to preventing over-indebtedness in digital credit markets. There is increasing investments from responsible DFS investors into this market given its potential power to further financial inclusion. However, in some markets, recent media show rising incidence of client defaults and persistently high prices. How can responsible investors differentiate DFS and fintech players that are innovating to strengthen customer protection versus those who do not? The aim of this paper is to be a springboard to help kickstart a dialogue amongst responsible investors on emerging best practices for identifying prospective fintech and DFS partners, building on lessons from past crises in global financial inclusion, and their implications for digital financial services.

The draft Briefing Note is a result of internal activities of the Working Group of the Guidelines for Responsible Investing in Digital Financial Services. It is a draft version and serves as a basis for further consultation and discussion.

All investors and signatories are welcome to send comments or feedback to:

Felipe Vargas Gomez, Incofin (
Lory Camba Opem, IFC (

For more information, contact: