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.
Better understanding and managing these risks 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:
What risks do consumers and customers perceive and experience when using digital financial services?
What are the consequences of those risks for consumers, providers, and financial inclusion?
How can those risks be addressed?
You can join CGAP on June 29th for a half-day event in Washington DC 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.
For more information on the event and to register please visit the CGAP website.
Focus Note: “Doing Digital Finance Right: The Case for Stronger Mitigation of Customer Risks”
Blog post: “Seven Customer Risks that Need Attention Now”