Risk and Customer Protection in Digital Financial Services study - CGAP
CGAP hired MicroSave to investigate emerging consumer risk (fraud, data privacy and protection, etc.) in the provision of digital financial services through anin-depth research projectin three countries (Bangladesh, Philippines & Uganda). We selected these markets for regional diversity, regulatory approach, business models, etc. which allowed us to assess risk and customer protection issues in different environments and digital eco-systems. We also looked at conditions in markets where digital financial service models have been in place for sufficient time and have reached a scale to allow us to examine the evolution of risks and fraud over time. This research was conducted to build the evidence base of different consumer risks and their consequences for better client protection.
The project covered both desk and in-country research (demand-side surveys/focus groups of consumers, collection of supply-side data evidence and insights) on the digital financial services on offer, the branchless banking eco-system, and the regulatory environment. Stand-alone case studies of the three markets were presented to help identify key findings and conclusions that can be drawn from available evidence on current/future practices. A synthesis document, pulling together findings and recommendations from the country reports and other markets analysed by our team, presented a framework for risks and cost-effective solutions, and recommendations on actions for CGAP and different stakeholders. The report was presented at the Responsible Digital Finance workshop at the Global Partnership for Financial Inclusion conference.