Benefits & Challenges of Digital Financial Inclusion

5 November, 2014

Regulators around the world recognize the potential benefits of financial inclusion powered by digital finance. But with new technology comes new responsibility. An interesting new CGAP video prepared to inform policy makers and standard-setting bodies.

The video was prepared for the Second G20 Global Partnership for Financial Inclusion (GPFI) Conference on Standard-Setting Bodies and Financial Inclusion. The theme of the conference, held in Basel from 30-31 October, was "standard-setting in the changing landscape of digital financial inclusion." Representatives from six global standard-setting bodies who are engaged in work relevant to digital financial inclusion, along with the GPFI, attended the event, hosted by the Financial Stability Institute at the Bank for International Settlements. 

Written and Produced by Jeanette Thomas, 2014.

"A lot of the poorest people in the world don’t have a financial history. And thus by saving, they can create that history so that they can be evaluated to receive a credit" (Bernardo González, Vice President for regulatory policy, CNBV, Mexico)

"Using big data to make instant credit decisions about customers who previously had no financial information or collateral, has meant a whole new customer base... But handling big data and algorhytms for credit decision-making brings responsibilities."

 Source and to read the blog post: The Consultative Group to Assist the Poor (CGAP)

 

 

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