The Role of Funders in Digital Finance: What Should Funders do?
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Transcript of The Role of Funders in Digital Finance: What Should Funders do?
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The Role of Funders in Digital Finance:
What Can/Should Funders Do?
10 March 2016
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What we will cover
• Funders’ involvement in DFS
• What barriers limit the development of digital financial services?
• How can funders address these barriers? • How can funders cooperate and learn from each
other?
2
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My organization’s involvement in digital financial services can be best described as…
A. We are not involved in digital financial services
B. DFS is a new area we are exploring
C. We are involved in DFS, but it represents a small part of our financial inclusion portfolio
D. DFS represents a large part of our financial inclusion portfolio
E. DFS is our main focus in financial inclusion
3 A. B. C. D. E.
0%
41%
12%
24%24%
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Do you think your organization will increase its focus on digital financial services?
4
A. Yes B. No C. Maybe
A. B. C.
75%
25%
0%
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In which regions do you expect to increase your focus?
A. Eastern Europe and Central Asia
B. Sub-Saharan Africa C. Middle East and North
Africa D. South Asia E. East Asia and Pacific F. Latin America and
Caribbean G. Global programs H. We are not increasing or
changing our focus
5
A. B. C. D. E. F. G. H.
0%
76%
6%
12%
0%0%0%
6%
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A market systems lens on digital financial services
6 Source: Adapted from CGAP Funder Guidelines
SUPPLY
RULES AND NORMS
Competition rules
Informal norms
Supervision
Regulations (KYC, consumer protection, agent regulation, e-money
regulation)
Interoperability Standards
DEMAND CORE
SUPPORTING
FUNCTIONS Payment platforms
Credit information
systems
Skills & capacity
National ID
Data sharing platforms
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Where do you see the main barriers in the development of digital financial services? (select up to three of the following options)
7
A. Limited client uptake B. Reluctance from
financial service providers to innovate
C. Supporting functions are not in place (e.g. weak telecom connectivity, absence of ID systems, …)
D. Restrictive regulatory environments
E. Lack of funding F. Other
A. B. C. D. E. F.
20%
9%
3%3%
26%
40%
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Which barriers should funders focus on? (select one of the following options)
A. Limited client uptake B. Reluctance from
financial service providers to innovate
C. Supporting functions are not in place (e.g. weak telecom connectivity, absence of ID systems, …)
D. Restrictive regulatory environments
E. Lack of funding F. Other
8
A. B. C. D. E. F.
25%
6%
13%
0%
6%
50%
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What does it take to support digital financial services?
Deep market knowledge
Strong technical capacity
Trusted relationships with market actors
Deep engagement with partners
Flexibility
Long time horizon
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Is your organization well equipped to support digital financial services?
A. No B. No, but we are
working on it C. Somewhat D. Yes, but we still face
some challenges E. Yes, we are very well
equipped
10 A. B. C. D. E.
10%
20% 20%
30%
20%
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Where do you see opportunities for collaboration with other funders? (select your priority)
A. Market information / market studies
B. Research C. Coordination and
market facilitation at the country level
D. Capacity building / training
E. Innovative funding mechanisms
F. Other
11
A. B. C. D. E. F.
23%
8% 8%8%
15%
38%
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12
What are your key take aways from this event?
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Advancing financial inclusion to improve the lives of the poor
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