Caribbean Digital Transformation Program Workshop

How can governments foster digital financial services?

Digital Infrastructure

Enabling New Players & Products

Consumer Protection

Credit Infrastructure


Diverse approaches • Partner with

Key considerations • Credit information sharing reduces information asymmetries between lenders / borrowers • Alternative data from digital sources and analytical tools (AI/ML) can lower cost of lending. • Digitalizing Secured Transaction Registries

Entry is not enough • Allow level

Core Infrastructure • Support broadband connectivity • High penetration of smartphones Other government services • Digitalize G2P (social benefit transfers) • Digitalize government platforms (e.g., land & tax records)

Transparency is key • Rules to foster clear and timely

bank or licensed entity (bKash and Brac Bank)

playing field and prevent regul. arbitrage

disclosure by standardizing

• Specialized license as

• Economies of scale / scope could lead to a

total-cost metrics for mobile money products and remittances (e.g., Kenya Competition Authority) protect data (e.g., EU Data Protect. Regulation)

financial service provider (common). existing non- financial entity (uncommon, e.g., Kenya).

few cornering the market

• License an

• Banks could

restrict access to financial infrastructure

• Regulations to

• Techn. firms could restrict access to

data/tech. tools While some countries have used specialized regimes to test new products, regulatory sandboxes are increasingly used to foster innovations in a controlled environment and with limited risk.

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