Caribbean Digital Transformation Program Workshop
How can governments foster digital financial services?
Enabling New Players & Products
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.
Made with FlippingBook Ebook Creator