Mobile financial services: regulatory approaches to enable access
Mobile phones are now widely available and widely used. Financial services that take advantage of this new channel can contribute greatly to financial inclusion. However, in order to serve the needs of the population while simultaneously protecting users, financial regulators must understand and assess the risks of mobile financial services arising from the channel and the instrument.
Some of the policy questions that arise in this Policy Note are: How can regulators enable models of mobile financial services that expand financial inclusion and make the financial sector more efficient? How should the issuance of new mobile payment instruments like e-money be regulated? How should the use of the mobile phone as a channel be regulated? Do mobile financial services create new consumer protection and financial literacy challenges? What are the AML/CFT concerns in relation to mobile financial services? How should mobile financial services be supervised? What are the implications of mandating interoperability and interconnection of mobile financial services?
Drawing on existing research, it defines the policy solution, identifies the critical issues for decision-makers and gives practical examples from developing countries.
