Digital Financial Services
Working Group (DFSWG)

Digital Financial Services (DFS) has been a cornerstone of AFI’s work since its inception. This continues to be a key focus area for AFI members, as use-cases evolve with new and emerging technologies and the overlap with other core mandates of regulatory and policymaking objectives of market conduct, consumer protection, financial inclusion data and strategies, not forgetting SME finance. Furthermore, the rapid technological advances of DFS have increased the scope of work in this space significantly. The proliferation of digital identity systems, data driven financial products/services, crypto-currencies, blockchain applications, new ways for governments to augment the supervision of the financial industry and for the industry to automate compliance, all have immense potential for the member-base of AFI, hence, creating new opportunities for AFI to provide policy leadership, facilitate peer-learning and knowledge exchange, guidance and implementation support and extensive advocacy.

AFI and its members are actively working towards improving financial inclusion globally through their Maya Declaration commitments and increasing support for in-country implementation and measurable policy changes.

Fundamental and emerging topics under DFS are explored in-depth through AFI’s Digital Financial Services Working Group (DFSWG).

“Digital financial services contributed to increasing financial inclusion of women, but in some countries, it has been disproportional. Even though access to finance for women is rising, the gender gap is still persistent” (Dr. Alfred Hannig, Executive Director, AFI).

The key to success in financially empowering women is through gathering data, analyzing insight and continuously crafting effective strategies to engage and include women.

Reflects the network’s financial inclusion intervention priorities, DFS targets make up a significant share of Maya Declaration commitments with at least one appearing in every 50 commitments. DFS is among the top three working groups — alongside CEMC and FID — in terms of a continued uptick in commitments that address the usage and quality of financial inclusion.

Primary thematic area		2012	2013	2014	2015	2016	2017	2018	2019	2020
Digital financial services National payment system Agent banking Mobile financial services E-Money	Maya Declaration targets	38	52	68	72	89	95	111	160	165
	Completed	21	27	37	38	43	47	48	60	65
	In progress	17	25	30	33	46	48	67	100	96
	Completion rate	55%	52%	54%	53%	48%	49%	40.1%	38%	39%

• Create an enabling policy and regulatory environment for transformational DFS at national levels;
• Develop a shared understanding of the risk profiles of emerging digital financial services business models, which is essential in designing appropriate regulatory frameworks;
• Stimulate discussion and learning on new approaches and good practices in DFS regulation by encouraging policymakers to exchange experiences;
• Provide a platform for capturing, tracking and sharing information on innovative DFS, products, business models and appropriate new policy responses;
• Establish linkages and provide inputs, where appropriate, to global Standard-Setting bodies (SSBs) and other stakeholders seeking to establish proportionate supervisory practices for DFS.

RegTech Technical Taskforce (DFSWG Focal Points)

• Planned deliverable: Special Report on Regtech for Financial Inclusion.

CBDC and Financial Inclusion

• Planned deliverable: Special report to introduce members to CBDCs from a financial inclusion context, deliver an understanding of the underlying motivation, design choices and approach, risk mitigation options and provide insights into policy and regulatory implications to be considered in the evaluation of CBDC within an inclusive, sustainable, and secure financial system context. The work will be led by DFSWG and supported by other relevant working groups.

2022

• Regulatory and Supervisory Technologies for Financial Inclusion

2021

• Policy Framework on the Regulation, Licensing and Supervision of Digital Banks
• Case Studies of Multisectoral Approaches to Integrating Digital Financial Services for Women’s Financial Inclusion
• Digital Financial Literacy Toolkit
• Digital Financial Literacy Guideline Note
• Innovative Regulatory Approaches Toolkit
• Cybersecurity from the Perspective of the Financial Regulator and Supervisors in Peru
• Guideline Note on Data Privacy for Digital Financial Services
• Consumer Protection for Digital Financial Services: A Survey of the Policy Landscape

2020

• Lessons on Enhancing Women’s Financial Inclusion Using Digital Financial Services DFS).
• Policy Framework for Leveraging Digital Financial Services to Respond to Global Emergencies – Case of COVID-19.
• Creating Enabling Fintech Ecosystems: The Role of Regulators
• Policy Model on Consumer Protection for Digital Financial Services
• Case study on DFS supervision in Bangladesh

2019

• Cybersecurity for financial inclusion: framework & risk guide
• Policy Model for E-Money
• Policy framework for women’s financial inclusion using digital financial services
• Guideline Note 33: Digital Financial Services Indicators
• Guideline Note 32: KYC Innovations, Financial Inclusion and Integrity in selected AFI Member Countries

2018

• FinTech for Financial Inclusion: A Framework for Digital Financial Transformation
• Guideline Note 30: Innovative CrossBorder Remittance Services: Experiences from AFI Member Countries
• Financial Inclusion through Digital Financial Services and FinTech: The Case of Egypt
• Systems to support Financial Inclusion Digitally Enabled Cross Border Remittances in Lesotho: Key Policy Consideration to Break Uptake Barriers

2017

• Guideline Note 29: National Retail Payment

2016

• Guideline Note 19: DFS Basic Terminology

2014

• Guideline Note 15: MFS Assessing Levels of Interoperability
• Guideline Note 14: MFS Mobile-Enabled Cross-Border Payments
• Guideline Note 13: MFS Consumer Protection in Mobile Financial Services
• Guideline Note 12: MFS Supervision and Oversight of Mobile Financial Services

2013

• Guideline Note 11: MFS Indicators for Measuring Access and Usage
• Guideline Note 03: MFS Regulatory Reporting
• Guideline Note 02: MFS Technology Risks
• Guideline Note 01: MFS Basic Terminology