Digitally Delivered Credit: Consumer Protection Issues and Policy Responses to New Models of Digital Lending

“While tremendous gains in financial inclusion have already been achieved, digital financial services, together with effective supervision (which may be digitally enabled), are essential to close the remaining gaps in financial inclusion.”

Rapid expansion of digital financial services (DFS) is driving the growth of inclusive finance. A new generation of DFS is emerging based on scalable and innovative business models that target the bottom of the pyramid- the most difficult to reach communities. In 2015, AFI issued Guideline Note 17: Policy Guidance Note on Digitally Delivered Credit. The AFI Consumer Empowerment and Market Conduct (CEMC) Working Group conducted a follow-up survey to cover evolving regulatory oversight mechanisms along with the performance of digitally delivered credit products, with focus on repayments, credit assessment models and pricing and disclosure. Download the full survey report to learn:

• the market conduct challenges with digital credit
• the emerging risks for financial market regulators and supervisors
• and the solutions for effective regulation and enforcement of market conduct on digital credit