Digital financial services (DFS) are spearheading greater financial inclusion in Sub-Saharan Africa, with 338 million registered accounts in 2017 and a significant boost in penetration from 12 percent to 21 percent between 2014 and 2017.

As technology disruptions and new players change the face of microfinance, regulators need to fully comprehend this changing environment and be prepared with adequate supervision and oversight tools. Inclusive digital finance is contingent on a broader disaggregation of the financial services value chain, with banks and non-banks (including FinTech companies) assuming different responsibilities according to their area of specialization, through a web of partnerships.

Regulators need to identify how to optimize synergies between digital finance and microfinance for financial inclusion, such as consumer protection for DFS, KYC, credit risk management, data privacy, innovation, reporting, financial education and other areas.