Doing Digital Finance Right:
Achieving Stronger Customer Risk Mitigation in Digital Financial Services

June 23, 2015

Network downtime and agent liquidity are real problems in bringing digital financial services to the developing world.

In fact, upwards of a third of consumers in Rwanda, Tanzania, Ghana, Kenya and Uganda experience downtime. More than 2 in 10 (and sometimes over half) have been unable to complete their transactions due to insufficient agent liquidity.

Michelle CGAP blog image 6 23

Digital delivery of financial services will undoubtedly play a central role in bridging the financial inclusion gap. But along with the potential benefits – easier access, lower costs, product diversification beyond simple money transfer and payment services – come risks such as opaque terms and conditions, agent misconduct or fraud that can harm customers and reduce their trust and usage of the new services. Understanding and managing these risks better can help advance customer well-being, provider success and financial inclusion progress.

CGAP’s Protecting Customers initiative launched a Focus Note, Doing Digital Finance Right: The Case for Stronger Mitigation of Customer Risks,” presenting new research on Responsible Digital Finance. The paper explores consumer risks in digital finance—particularly through the lens of lower-income and less-experienced consumers—by asking three related questions:

  1. What risks do consumers and customers perceive and experience when using digital financial services?
  2. What are the consequences of those risks for consumers, providers, and financial inclusion?
  3. How can those risks be addressed?

You can join CGAP on June 29th for a half-day event in Washington D.C., to learn more about the risks consumers face, why it matters, and promising solutions to tackle these risks and achieve increasing trust, uptake and usage of digital financial services.

Get more information on the event and register here.