digital financial services pdf

endstream endobj startxref Digital financial services provide low-income households with access to affordable and convenient tools that can help increase their economic opportunities. For extremely poor families, combining digital financial services with livelihood promotion, safety nets, and mentoring boosts their long-term standard of living.³ Ending Poverty through Using digital technology to access financial services (known as Fintech) is becoming an everyday occurrence for millions of us, and is set to be a growing trend in how we spend, send and save money. h�bbd``b`q��Q �|$"�A\�K!��"RA\k�H�$�>�Rf&F� �qܿ�Ɏ�?��� ��� Their scalability means that they can be applied to hundreds of millions of customers, even for low-value transactions. It is a vital change in how banks and other financial institutions learn about, interact with and satisfy customers. An efficacious Digital Transformation Digital transformation Digital disruption A brief history . Next Page . h�b```f``z������ Ā B@1V �� ��� ((�`h((��TZ���(��A��C��ǬQME���i�}. This handbook is The Digital Financial Services (DFS) Lab+ – a joint initiative by Bangladesh Bank and a2i – attempts to expand and deepen digital financial inclusion through: 1. New data col-lected via digital devices are breaking down barriers to reaching customers once considered too risky to serve. In today's world, everything is digitized, which means we can access or get every service in digital format through mobile phones, computers, tablets, etc. %%EOF The transformative nature of M-PESA has had a deep impact on financial 254 0 obj <>stream Digital Financial Services (DFS) Glossary 3 Digital Financial Services (DFS) Glossary This glossary is a compilation of terms commonly used in the area of digital financial services and an explanation of what these terms mean. 55 0 obj <> endobj %%EOF 4 . At the same time they help build lasting, inclusive economic infrastructure that improves governance and provide a foundation for innovative business models that Digital financial services represent a new approach to financial inclusion— they give poor families access to an array of affordable resources that make financial transactions cheaper, more secure and transparent. endstream endobj startxref State of digital in financial services For the third year running, this study seeks to establish how financial services and insurance (FSI) companies view their position in the context of the sometimes momentous digital disruption that is occurring across their industries. %PDF-1.5 %���� %PDF-1.6 %���� The goal of financial services made available via digital means is to contribute to the reduction in poverty and deliver on the recognized benefits of financial inclusion in developing countries. There are … 545 0 obj <> endobj The purpose was to understand how disruptive innovations were reshaping the business of financial services as it exists today. This report looks at how clusters of innovation are affecting business in five areas of financial services: primary accounts, payments, capital … It complements the tri-partite framework of digital technologies, applications, and aspects with additional material to separate the aspects impacted by the developments related to digitalisation of financial services from the implications of these developments. digital% financial% services Mobile’money Agent’banking Branchless’banking Correspondent’banking. NON-BANK-BASED MODEL Definition A digital financial services … �O/gP�ؒv�\��q���p���b_. Waves upon waves of digital disruption Digital disruption isn’t an isolated event but is something that has repeatedly happened over the last Currently, innovative digital financial services via mobile phones and similar devices have been launched in at least 80 countries (GSMA, 2014), to encourage millions of poor customers to exclusively use digital financial services rather than cash-based transactions. Financial Services and Digital Transformation Financial services, it powers our economy and turns the wheels of business every day. Financial services transformation is also underway—and in some countries has outpaced the adoption of technology-driven business models in other industries. The challenging geography and poor infrastructure of many Pacific nations mean digital financial services (DFS) are a particularly effective means of enhancing financial inclusion in the region. Dd�Qh$$@���BC�&���_��%Š�B�Ph5*��x� ���J�y �6�L�Ν�s�5��|t�� �n�ĵY� ��vT��䯉��L7޺�ywz���s�cT�3k��'���]b�W|�S\�-좲A|AO6�q����Կ�Fb���n��t��OW�����K珸`ͧ0Q�xW�U�J������ӾȳC`��e����;y� K�;���f��'g�Q����6I����7��l�fIJ?��3Y�m�͖�ã_ ��:a Mobile money adoption in Kenya and Bangladesh is an example. A digital financial services business model, bank-based or non-bank-based, in which the bank is the primary driver of the product or service, typically taking the lead in marketing, branding and managing the customer relationship. The essential components of digital financial inclusion are as follows:. financial system. A report from the Deloitte Center for Financial Services Deloitte Digital is a digital consulting agency that brings together all the creative and technology capabilities, business acumen, and industry insight needed to help transform our clients’ busi- Key features of digital finance include the ability to use mobile devices, quickly authenticate identity, and real-time payment services. Session 4: Supervision and Regulation of Digital Financial Services— Keeping Up with Market Development 44 Session 5: Perspectives on Consumer Protection and Emerging Risks in Digital Finance 49 Session 6: The Cost and Value of Digital Finance 55 Session 7: The Way Forward 60 Closing Remarks—Diwakar Gupta 66 ADB Organizing Team 68 Digital Financial Services in the Pacific. Previous Page. Digital Financial Services (DFS) is a relatively new, low-cost means of digital access to transactional financial services. Financial services refer to services provided by the finance industry. Application of Digital Financial Services. Advertisements. Experiences and Regulatory Issues. EIB - UNCDF Digital Financial Services in Africa: Beyond the Kenyan Success Story 4 2.1 Success factors in Kenya There are a multitude of factors that led to the success of M-PESA in Kenya (see Annex 1 for the full Kenyan DFS case study). 560 0 obj <>/Filter/FlateDecode/ID[<5A5237E8B6D4514295316A3E26531690>]/Index[545 76]/Info 544 0 R/Length 86/Prev 1057538/Root 546 0 R/Size 621/Type/XRef/W[1 2 1]>>stream Digital financial services (DFS) are playing an increasingly central role in finan-cial inclusion efforts. However, a number The invention of computers and smartphones has created a huge impact on financial services. Often termed 'mobile money' or 'mobile financial services,' DFS is … The second handbook, Digital Financial Services and Risk Management, is a guide to the risks associated with mobile money and agent banking, and offers a framework for managing these risks. 0 Bank clients expect the system to move away from traditional, manual onboarding to fast, digital account open-ing. digital financial technology with particular focus on the hardware and software building blocks for successful deployment. Digital onboarding for financial services Today, nearly every aspect of our lives has been touched by technology, and banks are no exception. Digital financial services offer more convenience for customers, as they open access to a broader range of financial services (credit, but also savings, insurance and payments)9 that customers can access from their doorstep, even in remote areas, eliminating the need to travel to physical branches. These services can be accessed by digital channels such as mobile phones, electronic cards (credit, debit, and prepaid), vouchers, computers, and … h��ҽ.DQ��9�d – Digital channels refers to the internet, mobile phones, ATMs, POS terminals etc. Digital financial services (DFS) refers to banking (including savings, loans), insurance, and payment services (remittances, and bill payments). h�b```b`` f`2�12 � +P���c\�+�c��LV(�f��c�dx|�����X��!��uM�����S���͉`d>e�f��~��/��c��|3� institution and market restructuring, and competition in financial services. 153 0 obj <>/Filter/FlateDecode/ID[<714F6B4F4EED4AD09EC2BBE5DBC93AD0><4D0ABC5A14D29642B499EFD0AC70E5A4>]/Index[55 200]/Info 54 0 R/Length 290/Prev 161481/Root 56 0 R/Size 255/Type/XRef/W[1 3 1]>>stream �>�� Digital Financial Inclusion 4.4: G20 HLP 4: Expand the DFS Infrastructure Ecosystem 23 4.5: G20 HLP 5: Establish Responsible Digital Financial Practices to Protect Consumers 23 4.6: G20 HLP 6: Strengthen Digital Financial Literacy & Awareness 23 4.7: G20 HLP 7: Facilitate Customer Identification for Digital Financial Services 24 Digital Transformation is far beyond just moving from traditional banking to a digital world. effect of financial services delivered digitally The Digital Finance community rests on and is many ways an extension of the knowledge, practices, and evidence around how traditional (analog) financial services products and services have affected resource-constrained clients. “Digital financial inclusion” can be defined as digital access to and use of formal financial services by excluded and underserved populations. Such low-cost, high-volume, low-value digital financial transactions services by the excluded and underserved population” (CGAP, 2015). Still, there are specific challenges for the digital transformation of financial services … Digital financial services, powered by fintech, have the potential to lower costs by maximizing economies of scale, to increase the speed, security and transparency of transactions and to allow for more tailored financial services that serve the poor. The terms are grouped by category, rather than alphabetically. 0 The finance industry consists of a broad range of organisations that deal with the management of money. – DFS concept includes mobile financial services (MFS). Digital(financial(servicesmodel Digital Financial Inclusion Source:’World’Bank,’2014 Fintech &’digital’banking. Digital(financial(services Digital Financial Inclusion! Senior Director, Digital Engagement, Oracle Financial Services Global Business Unit . People can now pay bills, transfer money and access their bank statements easily using their computer or … Numerous studies and systematic Such services should be suited to the customers’ needs and delivered responsibly, at a cost both affordable to customers and sustainable for providers. 620 0 obj <>stream The report tracks five key verticals of digital financial services: payments, remittance, lending, insurance and investments. Mobile phones are reducing costs and connecting low-income clients to the formal banking system for the first time. Digital Financial Services (DFS) include a broad range of financial services accessed and delivered through digital channels, including payments, credit, savings, remittances and insurance. From the very beginning, the financial services industry has been synonymous with processing massive amounts of information. 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