Global Microscope 2020 - The role of financial inclusion in the Covid-19 response - IDB Invest
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
Global Microscope 2020 The role of financial inclusion in the Covid-19 response Supported by
GLOBAL MICROSCOPE 2020
1
The role of financial inclusion in the COVID-19 response
About this report
The Global Microscope assesses the enabling • Mitul Thapliyal, Head of Digital Financial
environment for financial inclusion across five Services – Government Social Impact,
categories and 55 countries. Microsave
This year, regulators and policymakers have • Gerardo Uña, Senior Economist, International
faced a number of challenges as a result of Monetary Fund
the economic crisis caused by the COVID-19
pandemic. In recognition of this, the Global The Microscope was originally developed for
Microscope report focuses on the role that countries in the Latin America and Caribbean
financial inclusion has played in the crisis region in 2007 and was expanded into a global
response, and on the policies that have made study in 2009. Most of the research for this
financial systems in 55 mid- and low-income report—which included interviews and desk
countries more resilient and inclusive. analysis—was conducted between June and
September 2020.
We conducted a series of expert interviews to
help shape the research and inform our findings This work was supported by funding from the
and would like to thank the following individuals Bill & Melinda Gates Foundation, the Center for
for their time and insights: Financial Inclusion at Accion, IDB Invest and IDB
• Sajib Azad, Digital Finance Knowledge and LAB.
Research, Better Than Cash Alliance
The complete index, as well as detailed country
• Greta Bull, CEO, Consultative Group to Assist analysis, can be viewed on these websites:
the Poor https://www.eiu.com/n/campaigns/
• Ghiyazuddin Mohammad, Senior Policy microscope2020
Manager – Digital Financial Services, Alliance www.eiu.com/microscope
for Financial Inclusion https://idbinvest.org/en/publications
• Anit Mukherjee, Policy Fellow, Center for https://www.centerforfinancialinclusion.org/
Global Development series/global-microscope
• Pascual O’Dogherty, General Secretary, Please use the following when citing this report:
Association of Banking Supervisors of the EIU (Economist Intelligence Unit), 2020; Global
Americas Microscope 2020: The role of financial inclusion
• Mikaela Rabb, Senior Policy Associate, The in the COVID-19 response; New York, NY.
Abdul Latif Jameel Poverty Action Lab
For further information, please contact:
• Manoj Kumar Sharma, Director, Microsave Microscope@eiu.com
© The Economist Intelligence Unit Limited 2020GLOBAL MICROSCOPE 2020
2
The role of financial inclusion in the COVID-19 response
About the Economist Intelligence Unit About IDB Lab
The Economist Intelligence Unit (EIU) is IDB Lab is the innovation laboratory of the
the research arm of The Economist Group, IDB Group, the leading source of development
publisher of The Economist. As the world’s finance and know-how for improving lives in
leading provider of country intelligence, it Latin America and the Caribbean (LAC). The
helps governments, institutions and businesses purpose of IDB Lab is to drive innovation for
by providing timely, reliable and impartial inclusion in the region, by mobilizing financing,
analysis of economic and development knowledge, and connections to co-create
strategies. Through its public policy practice, solutions capable of transforming the lives of
The EIU provides evidence-based research vulnerable populations affected by economic,
for policymakers and stakeholders seeking social or environmental factors. Since 1993 IDB
measurable outcomes, in fields ranging from Lab has approved more than US$ 2 billion in
gender and finance to energy and technology. projects deployed across 26 LAC countries,
It conducts research through interviews, including over US$ 300 million to develop the
regulatory analysis, quantitative modelling Venture Capital industry in the region.
and forecasting, and displays the results via www.idblab.org
interactive data visualisation tools. Through a
About the Center for Financial Inclusion
global network of more than 650 analysts and
contributors, The EIU continuously assesses The Center for Financial Inclusion (CFI) works
and forecasts political, economic and business to advance inclusive financial services for
conditions in more than 200 countries. For more the billions of people who currently lack the
information, visit www.eiu.com. financial tools needed to improve their lives and
prosper. We leverage partnerships to conduct
About IDB Invest
rigorous research and test promising solutions,
IDB Invest, a member of the IDB Group, is a and then advocate for evidence-based change.
multilateral development bank committed CFI was founded by Accion in 2008; together
to promoting the economic development of we are working to create a financially inclusive
its member countries in Latin America and world. www.centerforfinancialinclusion.org
the Caribbean through the private sector. @CFI_Accion
IDB Invest finances sustainable companies
About Bill & Melinda Gates Foundation
and projects to achieve financial results and
maximize economic, social and environmental Guided by the belief that every life has equal
development in the region. With a portfolio of value, the Bill & Melinda Gates Foundation works
$13.1 billion in asset management and 385 clients to help all people lead healthy, productive lives.
in 25 countries, IDB Invest provides innovative In developing countries, it focuses on improving
financial solutions and advisory services that people’s health and giving them the chance
meet the needs of its clients in a variety of to lift themselves out of hunger and extreme
industries. poverty. In the United States, it seeks to ensure
that all people—especially those with the fewest
resources—have access to the opportunities they
need to succeed in school and life.
www.gatesfoundation.org.
© The Economist Intelligence Unit Limited 2020GLOBAL MICROSCOPE 2020
3
The role of financial inclusion in the COVID-19 response
Project teams Acknowledgements
The following researchers, country analysts and
The Economist Intelligence Unit
specialists contributed to this report. We thank
Monica Ballesteros, Project Manager:
them for their contributions:
monicaballesteros@eiu.com
Shubha Bharadwaj, Research Analyst: Country analysis:
Ayesha Khan, Research Analyst Diane Alarcon, Stephen Allen, Amila Desaram,
Jennifer Wells, Marketing Executive: Waqas Rana, Jamie Hitchen, Meryem Kabbaj,
jenniferwells@eiu.com; Bernard Kennedy, MANAUS Consulting (Tamar
+44(2)7 576 8224 Benzaken Koosed, Bryn Philibert, Ana Philibert,
Joel Levesque), Susana Martinez, MicroCredit
Ratings International Ltd. (M-CRIL) (Sanjay
Sinha, Sana Zehra, Gaurav Prateek, Shayandeep
Chakraborty, Abhinav Soni, Paritosh Singh,
Sahib Sharma and Krishna Raj Pandey), Andras
Radnoti, David Ramirez, Nick Wolf.
We also thank Maria Jose Baqueiro from
the Association of Supervisors of Banks
of the Americas (ASBA) for facilitating the
questionnaire to regulators in Latin America and
the Caribbean.
Model and report production:
Mike Kenny, Emma Ruckley, William Shallcross,
Nick Wolf.
© The Economist Intelligence Unit Limited 2020GLOBAL MICROSCOPE 2020
4
The role of financial inclusion in the COVID-19 response
Contents
About this report 1
Executive summary 5
Digital infrastructure investments pay off 5
Digital IDs can facilitate verification for cash transfers, but better data integration is 5
needed to target beneficiary populations
Digital channels are here to stay 6
Non-banks face major disruptions, affecting financial service availability for the poor 6
Financial authorities should adapt to protect consumers from emerging risks 6
Introduction 7
Key findings 10
Digital infrastructure investments pay off 10
Digital IDs can facilitate verification for cash transfers, but better data integration is 13
needed to target beneficiary populations
Digital channels are here to stay 16
Non-banks are facing disruptions that could decrease the availability of financial services 17
for the poor
Financial authorities should adapt to protect consumers from emerging risks 20
Regional findings and country summaries 22
Asia and Eastern Europe 22
Latin America and the Caribbean 37
Middle East and Africa 59
Methodology and overall rankings 80
Appendix 1: Detailed scoring guidelines 83
© The Economist Intelligence Unit Limited 2020GLOBAL MICROSCOPE 2020
5
The role of financial inclusion in the COVID-19 response
Executive summary
The global health crisis provoked by the transfers, 28 leveraged digital infrastructures
COVID-19 pandemic shuttered large parts of to distribute payments via financial or mobile
the global economy as governments around money accounts. Of the 20 countries with the
the world imposed lockdowns to mitigate the highest scores in the Microscope’s Infrastructure
spread of the virus. The economic consequences domain, all but one implemented an emergency
of the lockdowns have affected the poor cash programme. These include low-income
disproportionately. Early in the crisis, central countries such as Kenya that have invested
bankers recognised the need to establish in building payments, identification and
and strengthen inclusive financial channels connectivity infrastructure prior to the pandemic.
in order to let liquidity flow quickly down the These interventions will likely have positive and
“last mile” and ease the suffering of the most long-lasting effects on financial inclusion.
vulnerable. The crisis put financial inclusion at
the centre of governments’ priorities as they Digital IDs can facilitate verification
tried to reach those who were most affected for cash transfers, but better data
by the lockdowns. Rebuilding economies will integration is needed to target
require more than preserving powerful global beneficiary populations
and national players; small businesses will need
Fifty of the 55 countries in the 2020 Global
to be saved, and employment will need to be
Microscope have a national ID system that is at
ensured for workers in both the informal and
least partially digitised. Digital identification can
formal sector. Recovery needs to reach the most
help to facilitate the delivery of social assistance
vulnerable and proceed from there.
cash transfers, but it cannot ensure that such
The 2020 Global Microscope explores the role that benefits reach all who are eligible. Social
financial inclusion has played in policymakers’ protection programmes rely on the ability to
crisis response, providing data on how the 55 target specific populations based on income and
countries included in the index have leveraged other characteristics. In a number of countries,
their financial infrastructures to support cash transfer programmes have targeted
vulnerable individuals, small businesses and the workers from the informal sector who were not
financial providers that serve poor households. registered in tax and social security databases
or government protection programmes.
Digital infrastructure investments Governments have used a variety of methods
pay off to find and target beneficiaries, including using
digital tools to allow eligible households to
Of the 55 countries included in the 2020 Global
self-register for benefits. However, by relying
Microscope, 44 implemented cash transfers to
on digital channels, governments risk excluding
support vulnerable segments of the population.
millions of women, who have lower levels of
In countries where the financial sector had
access to mobile phones and digital IDs and are
already invested in digital financial infrastructure,
among the most vulnerable segments of the
policymakers were able to use digital distribution
population.
channels to pay funds to beneficiaries in need.
Of the 44 countries that implemented cash
© The Economist Intelligence Unit Limited 2020GLOBAL MICROSCOPE 2020
6
The role of financial inclusion in the COVID-19 response
Digital channels are here to stay that support provided by those regulators does
not reach some of the institutions that serve
Proportional customer due diligence and the
the most vulnerable communities. Regulatory
approval of electronic Know Your Customer
frameworks and supervisory authorities
(e-KYC) methods are essential for creating an
differ based on the level of risk that financial
inclusive digital financial system. While the 2020
institutions pose to the financial system.
Global Microscope shows that more than half
However, during this crisis it has become clear
of the countries included in the index have not
that the collapse of microfinance and non-
formally implemented e-KYC methods, some
bank financial institutions represents a social
countries have made changes in response to the
risk that financial authorities should take into
COVID-19 pandemic. For example, 11 countries
consideration. In order to provide effective
in the Microscope relaxed due diligence
support to microfinance institutions and other
requirements or allowed remote account
institutions that promote financial inclusion,
opening during the pandemic. An analysis by
regulators must be in close contact with the
Glenbrook attributes the opening of 60m new
sector, must possess and analyse the necessary
accounts globally to countries with pre-existing
data to understand these institutions’ portfolios,
enabling environments and those that quickly
and must then act accordingly.
adapted their rules.1
Financial authorities should adapt to
Non-banks face major disruptions,
protect consumers from emerging
affecting financial service availability
risks
for the poor
Cases of financial fraud have increased as bad
Economic shutdowns have upended business
actors seek to take advantage of pandemic-
models for many financial institutions that
related uncertainty, as well as changes in
target the poor. Their primary clients are
consumer behaviour, such as the shift to digital
among the most affected by the health and
banking.2 Governments and financial institutions
economic crises, and their high-touch business
will have to work together to address these
methods have had to either halt or adapt
challenges and foster a sense of trust among
to increased physical distancing and stay-
new entrants to the financial system. The
at-home requirements. Non-deposit-taking
introduction of comprehensive data privacy and
institutions, especially small and medium-sized
cybercrime protections should remain a priority
institutions, are usually not supervised by the
for governments that promote the increased use
same regulators as banks, which may mean
of digital financial services.
2 https://www.globenewswire.com/news-
1 https://www.findevgateway.org/sites/default/files/publications/ release/2020/06/24/2052648/0/en/As-More-Transactions-Shift-
submissions/72016/Emergency%20Disbursements%20during%20 Online-During-Pandemic-the-Financial-Services-Industry-
COVID-19_20200718.pdf Experiences-a-Surge-in-Fraudulent-Activity.html
© The Economist Intelligence Unit Limited 2020GLOBAL MICROSCOPE 2020
7
The role of financial inclusion in the COVID-19 response
Introduction
The global health crisis provoked by the other financial tools to even out the shocks
COVID-19 pandemic shuttered large parts of and persevere down the path to a new normal.
the global economy as governments around For those who are disconnected from the
the world imposed lockdowns to mitigate the financial system and lack access to such tools,
spread of the virus. The economic consequences the way forward could be decidedly bleak. The
of these lockdowns have affected the poor 2020 Global Microscope explores the role that
disproportionately. According to the World financial inclusion has played in policymakers’
Bank, the COVID-19 pandemic could push up crisis response, providing data on how the 55
to 100m people into extreme poverty. Almost countries included in the index have leveraged
half of the projected new poor will be in South their financial infrastructures to support
Asia, and more than one-third will be in Sub- vulnerable individuals, small businesses and the
Saharan Africa. Unemployment has spiked, and financial providers that serve poor households.
billions of workers in the informal economy are
The Global Microscope data assesses the
struggling to earn a living.3 Estimates from the
enabling environment for financial inclusion
first month of the crisis showed incomes for
across five dimensions 1) Government and Policy
informal workers dropping by an average of 81%
support, 2) Stability and integrity regulation, 3)
in Africa and the Americas.4
Products and outlets regulation, 4) Consumer
As businesses around the world found protection, and 5) Infrastructure.
themselves unable to trade and individuals
This year, many of the efforts made by
found themselves unable to work, they sought
regulators and policymakers to contain the
savings, credit, government assistance and
Government Stability and Products and Consumer Infrastructure
and Policy Integrity Outlets Protection
1. Market entry 1. E-money and 1. Financial services 1. Payments
1. National strategies
requirements simplified accounts users infrastructure
2. Financial and 2. Operational
2. Credit 2. Insurance users 2. Connectivity
digital literacy requirements
3. Government 3. Customer due
3. Emerging services 3. Data protection 3. Digital IDs
digitisation diligence
4. Supervisory
4. Inclusive insurance 4. Credit information
capacity
5. Cybersecurity 5. Financial outlets
3 https://www.ilo.org/global/about-the-ilo/newsroom/news/
WCMS_743036/lang--en/index.htm
4 https://www.ilo.org/global/about-the-ilo/newsroom/news/
WCMS_743036/lang--en/index.htm
© The Economist Intelligence Unit Limited 2020GLOBAL MICROSCOPE 2020
8
The role of financial inclusion in the COVID-19 response
COVID-19 crisis were not necessarily captured from funders.6 While survey data from the
by laws and regulations. For this reason, Consultative Group to Assist the Poor (CGAP)
the Microscope team conducted additional allayed some of the early concerns about
interviews with key experts and analysed a liquidity crisis among institutions in the
secondary sources to understand how financial sector, there may be a solvency challenge on
authorities were responding to the crisis. the horizon as repayment freezes expire and
Our findings are summarized in the country institutions determine which loans will be repaid
summaries below. The rest of the report and which could end up in default.7 In markets
highlights some of the policy responses and with different regulations for microfinance,
existing regulations and infrastructures that regulators may need to acknowledge the role
facilitated the financial authorities’ response to of these providers in aiding the recovery of low-
the current crisis. income clients and provide support to ensure
that they can fulfil this responsibility.8
Early in the crisis, central bankers recognised
the need to establish and strengthen inclusive Mobile money providers and particularly
financial channels in order to let liquidity flow the cash-in cash-out (CICO) agent networks
quickly down the “last mile” and ease the that support them also saw dramatic drops
suffering of the most vulnerable.5 The crisis put in revenue as a result of lockdown measures.
financial inclusion at the centre of governments’ In several countries CICO agents were not
priorities as they tried to reach those who were considered essential services despite their
most affected by the lockdowns. Rebuilding crucial role in distributing government
economies will require more than preserving payments and providing financial services to
powerful global and national players; small the most vulnerable populations. Furthermore,
businesses will need to be saved, and the reduction of transactions fees and decline
employment will need to be ensured for workers in transaction amounts threaten the long term
in both the informal and formal sector. Recovery viability of agent networks’ business model.
needs to reach the most vulnerable and proceed
Financial inclusion strengthens resilience
from there.
and enables low-income individuals to take
An important component of this effort is advantage of productive opportunities; these
ensuring that institutions that serve the benefits are in jeopardy if financial services
poor have the tools to survive the crisis. As providers (FSPs) that target these communities
we conducted research for the 2020 Global collapse. FSPs have supported their clients
Microscope, microfinance institutions (MFIs), during the COVID-19 pandemic with loan
mobile payment services and agent networks forbearance and fee readuction both voluntary
were all facing an extremely challenging and imposed by regulators. These institutions
business environment. Economic lockdowns, are in need of government support.
falling income among clients and moratoria
To remain in business, FSPs need access to
on payments have halted MFIs’ income
liquidity facilities similar to those provided
from loan repayments. At the same time,
economic uncertainty and questions about the
6 https://www.coronavirusandtheeconomy.com/question/how-
future viability of their business model have will-coronavirus-change-global-microfinance-industry
limited MFIs’ access to capital and liquidity 7 https://www.cgap.org/blog/there-liquidity-crisis-among-mfis-
and-if-so-where
8 https://www.cgap.org/research/publication/microfinance-and-
5 https://www.bis.org/speeches/sp200330.htm covid-19-framework-regulatory-response
© The Economist Intelligence Unit Limited 2020GLOBAL MICROSCOPE 2020
9
The role of financial inclusion in the COVID-19 response
by central banks to much larger institutions,
which are generally under distinct regulatory
regimes. Governments and regulators should
provide such support to institutions that
are well managed but find themselves in
trouble as a result of the pandemic. After all,
these institutions provide essential financial
channels that governments can use to support
vulnerable populations during this crisis. Even
in economies where digital payment services
reach large portions of the population, agent
networks and institutions can play a significant
role in providing cash-in/cash-out points so that
individuals can convert digital funds and use
them however they need.
© The Economist Intelligence Unit Limited 2020GLOBAL MICROSCOPE 2020
10
The role of financial inclusion in the COVID-19 response
Key findings
Digital infrastructure investments digital financial infrastructure, policymakers
pay off were able to use digital distribution channels to
pay funds to beneficiaries in need. During the
As economies slowed under lockdowns COVID-19 pandemic, these channels provide the
and individuals experienced a sudden loss added benefit of supporting physical distancing
of income, those without savings quickly requirements by removing the need for large
found themselves in need of support. Of groups to gather to receive cash distributions.
the 55 countries included in the 2020 Global Of the 44 countries that implemented cash
Microscope, 44 had implemented cash transfers, 28 leveraged digital infrastructures
transfers to support vulnerable segments of to distribute payments via financial or mobile
the population by the time of publication (see money accounts.
Figure 1).9 While the amounts, durations and
eligibility requirements of these cash transfers In Chile, for example, the government channelled
varied widely among countries, the need to funds through a basic ID-linked account
respond quickly did not. In countries where (CuentaRUT), which covers most low-income
the financial sector had already invested in people in the country.10 In Russia, benefits were
Figure 1
Emergency cash transfers in response to the COVID-19 pandemic
Cash transfers delivered primarily in cash
Cash transfers delivered primarily to an account
Source: The Economist Intelligence Unit
10 https://blogs.worldbank.org/voices/responding-crisis-digital-
payments-social-protection-short-term-measures-long-term-
9 https://www.ugogentilini.net/?p=1004 benefits
© The Economist Intelligence Unit Limited 2020GLOBAL MICROSCOPE 2020
11
The role of financial inclusion in the COVID-19 response
transferred through the government’s national In Colombia, a new cash transfer programme for
payment system, Mir, established by the Central households that were not previously covered by
Bank of Russia. In Madagascar, funds were social protection cash transfers reached 2.6m
distributed through Paositra Money, the post households and opened 1m new digital wallet
office’s mobile money service. and mobile phone payment service accounts in
order to distribute the funds.16 In addition, the
Digital transfers ensure that social assistance
government notified 3m individuals via SMS
can be distributed quickly, securely and without
that assistance funds were available while the
leakage. While conditions vary from country to
country was locked down.17 Pakistan leveraged
country, the Centre for Global Development
previous investments in digital infrastructure for
(CGD) noted that digital infrastructure—which
social protection payments to implement a fully
includes high levels of access to identification,
digital system of COVID-19 assistance payments,
mobile phones and financial accounts—enabled
delivered to 16.9m households in just ten days.18
governments to deliver COVID-19 cash transfers
Jordan combined an existing social protection
efficiently and quickly.11
beneficiary database with tools to remotely
Digital infrastructures have allowed contact and enrol individuals in COVID-19
governments to identify, register and cash transfer programmes, quickly reaching
mobilise funds on a massive scale. In Brazil, out to 200,000 individuals to confirm if they
the government’s aid for informal workers, had a mobile wallet, and provided extensive
microentrepreneurs, the self-employed and the communications to deliver information on
unemployed reached around 67m individuals, creating one if they did not.19, 20
starting in April 2020. A public bank opened
In countries where digital payment
digital savings accounts for individuals who did
infrastructure is still at an early stage,
not already have one so that they could receive
governments can support its development
the benefit, creating 25m new financial accounts
in three ways.21 First, they can invest in digital
as part of the programme. Beneficiaries have
infrastructure such as connectivity for citizens,
used around 40% of the funds to make digital
digital identification, and interoperable financial
payments to utilities and businesses, and for
management systems. Second, governments
Internet purchases, demonstrating increased
can facilitate enabling policies, such as ensuring
adoption of digital finance among a previously
a robust data privacy regime, enforcing
unbanked population.12 Thailand’s government
cybersecurity protections, and providing fair and
targeted around 24m individuals via digital
non-discriminatory access to payment systems.
cash transfers, leveraging its payment platform,
The 2020 Global Microscope demonstrates that
PromptPay.13, 14 PromptPay enables recipients
to easily receive and transfer funds using their
16 https://www.cgdev.org/publication/covid-19-colombia-impact-
citizen ID or mobile phone number instead of a and-policy-responses
bank account number, via electronic channels.15 17 https://www.findevgateway.org/sites/default/files/publications/
submissions/72016/Emergency%20Disbursements%20during%20
COVID-19_20200718.pdf
11 https://www.cgdev.org/blog/covid-19-how-countries-can-use- 18 https://www.app.com.pk/global/ehsaas-emergency-cash-
digital-payments-better-quicker-cash-transfers programme-covering-around-109-million-people-sania-nishtar/
12 Central Bank of Brazil 19 https://blogs.unicef.org/evidence-for-action/how-responding-
13 https://thepattayanews.com/2020/03/25/thai-government-set- to-the-syrian-humanitarian-crisis-helped-jordan-support-its-
to-hand-out-5000-baht-a-month-to-informal-workers-to-help- population-during-covid-19/
them-after-the-covid-19-coronavirus-crisis/ 20 https://www.worldbank.org/en/news/press-release/2020/06/25/
14 https://www.nationthailand.com/business/30385559?utm_ us374-million-to-provide-cash-assistance-to-poor-and-
source=homepage&utm_medium=internal_referral vulnerable-households-in-jordan
15 bangkokbank.com/en/personal/digital-banking/promptpay 21 Interview Ghiyazuddin Mohammad
© The Economist Intelligence Unit Limited 2020GLOBAL MICROSCOPE 2020
12
The role of financial inclusion in the COVID-19 response
such investments are necessary: only 22 of the Many countries lack sufficient connectivity to
55 countries in this year’s index comprehensively rely exclusively on digital solutions for social
protect individuals’ financial data, even fewer assistance payments. Increasing their applicability
(18 of 55) have an entity with strong capacity will require solutions for feature phones and
to enforce data protection, and 24 countries smartphones, as well as the provision of training
still need to open up at least one category of to beneficiaries, especially populations such
payment system to fair and non-discriminatory as older adults and/or women who may have
commercial access for all market participants. previously lacked access to these technologies.
Lastly, governments can create demand by Regulators and institutions should avoid
prioritising these channels in their cash transfer unnecessarily limiting the functionality of these
programmes. digital payment accounts in order to improve
the value proposition for users. For example, the
Figure 2 . Top performers in 2020 in the Infrastructure domain
Rank / 55 Δ Country 2018 2019 2020 Δ
=1 ←→ Argentina 82 83 82 -1
=1 ←→ Peru 77 83 82 -1
3 ←→ Uruguay 78 81 81 0
4 ▲ 13 Thailand 71 69 80 +11
5 ▲3 Brazil 67 72 78 +6
6 ▼2 Colombia 74 78 76 -2
7 ▼2 Mexico 74 75 75 0
=8 ▼1 Chile 80 74 74 0
=8 ▲4 China 65 71 74 +3
=8 ▼3 Costa Rica 63 75 74 -1
=8 ▲ 14 Russia 66 65 74 +9
=8 ←→ South Africa 72 72 74 +2
13 ▼1 Indonesia 71 71 73 +2
=14 ▼6 El Salvador 64 72 72 0
=14 ▼6 Panama 67 72 72 0
16 ▲3 Ecuador 59 67 71 +4
17 ▼5 Kenya 62 71 70 -1
18 ▼3 Bolivia 70 70 69 -1
=19 ▼1 Dominican Republic 66 68 68 0
=19 ▲6 India 61 63 68 +5
=19 ▲6 Rwanda 62 63 68 +5
Score is the weighted average of the following indicator scores: 5.1 Payments infrastructure; 5.2 Digital IDs; 5.3 Connectivity;
5.4 Credit information and other data-sharing systems
© The Economist Intelligence Unit Limited 2020GLOBAL MICROSCOPE 2020
13
The role of financial inclusion in the COVID-19 response
Figure 3
Correlation between Microscope’s Infrastructure score and Findex’s Account (% Age 15+)
Correlation Co-efficient (r) All countries 0.42
100
90
80
70
60
50
Accounts (% Age 15+)
40
30
20
10
0
0 10 20 30 40 50 60 70 80 90 100
Infrastructure
Source: The Economist Intelligence Unit
accounts could link to savings and credit products Digital IDs can facilitate verification
and provide a means of paying utility bills. for cash transfers, but better data
Of the 20 countries with the highest scores integration is needed to target
in the Microscope’s Infrastructure domain, beneficiary populations
all but one implemented an emergency cash As governments have rolled out financial
programme, and 14 of these countries leveraged support programmes in response to the
their digital infrastructures to distribute COVID-19 pandemic, some have found it
payments via financial and mobile money challenging to properly identify beneficiary
accounts. These include low- income countries populations. Providing identification for all
such as Kenya that have invested in building individuals is a vital support for increasing
payments prior to the pandemic. (See Figure 2) financial inclusion and improving access
These interventions will likely have positive to financial services. Foundational identity
and long-lasting effects on financial inclusion. programmes can also foster social inclusion,
The scores in the Infrastructure domain are enabling individuals to use a unique ID for
the inputs with the strongest correlation to multiple purposes including enrolling in school,
account ownership data from the World Bank’s accessing healthcare and voting.
2017 Global Financial Inclusion (Global Findex) Fifty of the 55 countries in the 2020 Global
Database.(See Figure 3) Microscope already have a national ID system
© The Economist Intelligence Unit Limited 2020GLOBAL MICROSCOPE 2020
14
The role of financial inclusion in the COVID-19 response
that is at least partially digitised (see Figure 2). banks. Sierra Leone’s new e-KYC system should
However, access to identification is not universal be fully implemented by the end of 2020 and
in many Microscope countries, and more uses blockchain technology to reach the 20%
than half of the countries have not approved of adults who are financially excluded based
electronic Know Your Customer (e-KYC) on a lack of proper identification. The country
schemes that facilitate remote and digital has built on lessons learned during its Ebola
account opening. virus epidemic in 2015 and is working towards
universal identification, which facilitates
The 2020 Microscope found that eight countries
financial inclusion but also assists with contact
have started offering e-KYC options since 2019.
tracing, providing and tracking healthcare, and
Brazil’s central bank has developed an open
targeting payments to healthcare workers and
data portal to simplify KYC for remotely opening
patients.22
digital accounts, even in the absence of a
national e-ID system. In Russia, a private firm is In addition to facilitating alternative channels
authorised to provide e-KYC services to banks, for financial inclusion and account opening,
and the government is developing its own universal digital identification is important for
solution that categorises customers into three ensuring that social protection programmes
levels of risk. In 2020 Thailand approved the use are secure and properly targeted and can avoid
of facial recognition technology for opening payment errors. Digital identification can help
online deposit accounts at six commercial to facilitate the delivery of social assistance
Figure 4
National ID systems with digital applications
Infrastructure → Digital IDs
Scored 0-100 where 100+best environment for financial inclusion Score 75+ Score 50-74 Score 25-49 Score 0-24
100
80
60
40
20
0
ARGENTINA
BANGLADESH
BOLIVIA
BRAZIL
CAMBODIA
CAMEROON
CHILE
CHINA
COLOMBIA
COSTA RICA
CÔTE D'IVOIRE
DOMINICAN REPUBLIC
ECUADOR
EGYPT
EL SALVADOR
GHANA
GUATEMALA
HAITI
HONDURAS
INDIA
INDONESIA
JAMAICA
JORDAN
KENYA
LEBANON
MEXICO
MOROCCO
MOZAMBIQUE
NEPAL
NICARAGUA
NIGERIA
PAKISTAN
PANAMA
PARAGUAY
PERU
RUSSIA
RWANDA
SENEGAL
SIERRA LEONE
SOUTH AFRICA
SRI LANKA
TANZANIA
THAILAND
TRINIDAD AND TOBAGO
TUNISIA
TURKEY
UGANDA
URUGUAY
VENEZUELA
VIETNAM
ETHIOPIA
MADAGASCAR
MYANMAR
DRC
PHILIPPINES
22 https://blogs.worldbank.org/digital-development/tracking-down-
ebola-biometrics-and-digital-identity
© The Economist Intelligence Unit Limited 2020GLOBAL MICROSCOPE 2020
15
The role of financial inclusion in the COVID-19 response
cash transfers, especially in the context of WhatsApp or websites.23 According to a CGD
physically distanced interactions during the report, South Africa received 13m applications,
COVID-19 pandemic. However, it cannot ensure of which around 6m were deemed to be valid. In
that such benefits reach all who are eligible. Pakistan, the Ehsaas programme received 146m
Social protection programmes rely on the SMS requests for assistance, of which 48m were
ability to target specific populations based on unique claimants.24
income and other characteristics. This can be
One of the main risks of relying on digital
an intensive process at the best of times and is
channels to register and identify participants
particularly complex when numerous individuals
for cash transfer programmes is the pervasive
and families need social assistance for the
gender gap in access to mobile phones (see
first time. Digital ID systems can facilitate this
Figure 3) and IDs. On average, the gender gap
process when it is integrated with other systems,
in access to mobile phones in Microscope
including social registries, SIM registration, and
countries is 7 percentage points. The gender gap
utility and tax databases.
in access to identification in these countries is
In many cases, individuals who became newly also 7 percentage points. These gaps threaten to
unemployed during the COVID-19 pandemic exclude some of the most vulnerable segments
were workers in the informal sector who of the population from emergency relief
were not registered in tax and social security transfers. Low-income populations face severe
databases, and potentially not even in social risks as a result of the COVID-19 pandemic,
protection programmes. In a number of and these risks are exacerbated for women.
countries, cash transfer programmes targeted Women’s employment is disproportionately
workers from the informal sector, reaching 79% in the informal sector, and the lack of social
of the entire population in the Philippines, 75% protection for workers in this sector has
in El Salvador, 38% in Chile and 31% in Tunisia. already affected women’s ability to support
Governments have used a variety of methods to their families. Some countries have adopted
find and target these beneficiaries. In Morocco, strategies to ensure that emergency relief is
cash transfers reached 3m informal-sector reaching women. Peru, for example, delivers
workers by using the health-sector database for stimulus checks to the woman in the household
targeting purposes. In Guatemala, authorities by default.25
have targeted individuals using public utility
bills that document low levels of consumption.
Colombia used a tax database to identify
vulnerable workers in the informal sector; its
cash transfers have reached 10.5m informal-
sector workers, or 21% of the population.
Some countries took advantage of the strong
incentives for individuals to self-register for 23 https://www.cgdev.org/sites/default/files/digital-technology-
benefits. South Africa, Pakistan and Brazil, for social-assistance-transfers-covid-19-relief-lessons-selected-cases.
pdf
example, launched multimedia campaigns 24 https://www.cgdev.org/sites/default/files/digital-technology-
inviting digital applications for emergency social-assistance-transfers-covid-19-relief-lessons-selected-cases.
pdf
relief, to be made through mobile phones, 25 http://documents1.worldbank.org/curated/
en/378931596643390083/pdf/Digital-Cash-Transfers-in-Times-
of-COVID-19-Opportunities-and-Considerations-for-Womens-
Inclusion-and-Empowerment.pdf
© The Economist Intelligence Unit Limited 2020GLOBAL MICROSCOPE 2020
16
The role of financial inclusion in the COVID-19 response
Digital channels are here to stay States, which includes Côte d’Ivoire, Senegal
and six other countries, enabled remote account
As physical distancing becomes the norm,
onboarding in 2020 for first- and second-tier
fuelling a desire to avoid crowds, long lines and
e-money accounts under special COVID-19 rules,
enclosed indoor spaces, financial institutions
facilitating the opening of 5.8m accounts in April,
have increased their efforts to promote digital
compared with 1.8m in March.29
channels and remote banking. Expanding service
channels and moving them closer to excluded Being able to open a new account is an
customers, whether physically or virtually, important step towards increasing financial
has long been a strategy to increase financial inclusion, but real inclusion can only be
inclusion. However, even in countries where achieved when users find value in using the
digital channels had been established prior to the accounts in the long term. Governments and
pandemic, some activities still required a visit to a financial service have worked together to
branch. That is now changing. encourage digital transactions and increase
the use cases for their accounts. During
Proportional KYC requirements and approval
the COVID-19 pandemic, 11 countries in
for e-KYC methods are essential for creating an
the Microscope reduced transaction fees
inclusive digital financial system. While the 2020
for accounts and five countries increased
Global Microscope shows that more than half
transaction limits, potentially enhancing the
of the countries included in the index have not
value proposition for clients. In Kenya, for
formally implemented e-KYC methods, some
example, M-PESA (the country’s most popular
countries have made changes in response to the
mobile money system) waived transaction fees
COVID-19 pandemic. For example, 11 countries in
for 90 days and increased transaction limits
the Microscope have relaxed KYC requirements
in co-ordination with authorities.30 Banking
or allowed remote account opening during
regulators also waived fees for transfers
the pandemic (see Figure 4). One analysis
between bank accounts and mobile wallets.31
attributes the opening of 60m new accounts
After this measure was adopted, the central
globally to countries with pre-existing enabling
bank reported a 10% increase in the number of
environments and those that quickly adapted
daily transactions.32 In Rwanda, the government
their rules.26 Colombia’s Specialised Deposit
eliminated charges on all mobile money
and Payment Companies were authorised in
transfers, as well as merchant fees on payments
2015, and in early 2020 regulators allowed the
for all contactless point-of-sale (via mobile)
lowest tier account that can be used to receive
transactions. By late April users were making
social benefits to be opened remotely.27 In
3m transactions a week—five times the pre-
Brazil and Chile, where assistance payments
pandemic norm.33 In the Philippines, e-money
are made via state-owned banks, beneficiaries
transfer services waived their user fees for the
can open accounts with just a national ID
number.28 The Central Bank of West African 29 https://www.findevgateway.org/sites/default/files/publications/
submissions/72016/Emergency%20Disbursements%20during%20
COVID-19_20200718.pdf
26 https://www.findevgateway.org/sites/default/files/publications/
submissions/72016/Emergency%20Disbursements%20during%20 30 https://www.finextra.com/newsarticle/35475/covid-19-m-pesa-
COVID-19_20200718.pdf waives-fees-to-discourage-cash-usage
27 https://www.findevgateway.org/sites/default/files/publications/ 31 https://home.kpmg/xx/en/home/insights/2020/04/kenya-
submissions/72016/Emergency%20Disbursements%20during%20 government-and-institution-measures-in-response-to-covid.html
COVID-19_20200718.pdf 32 https://www.economist.com/middle-east-and-africa/2020/05/28/
28 https://www.imf.org/~/media/Files/Publications/covid19-special- the-covid-19-crisis-is-boosting-mobile-money
notes/en-special-series-on-covid-19-digital-solutions-for-direct- 33 https://www.economist.com/middle-east-and-africa/2020/05/28/
cash-transfers-in-emergencies.ashx the-covid-19-crisis-is-boosting-mobile-money
© The Economist Intelligence Unit Limited 2020GLOBAL MICROSCOPE 2020
17
The role of financial inclusion in the COVID-19 response
Figure 5
Gender gap in mobile subscribers
Map shows 2020 country scores classified by score
Score 75+ Score 50-74 Score 25-49 Score 0-24
Source: The Economist Intelligence Unit
duration of the quarantine, and the central bank models for many financial institutions that
suspended licencing and registration fees for serve the poor. Their primary clients are
such services “to encourage financial institutions among the most affected by the health and
to actively offer safe, efficient and reliable digital economic crises, and their high-touch business
channels”.34 methods have had to either halt or adapt to
increased physical distancing and stay-at-home
Non-banks face major disruptions, requirements.
affecting financial service availability
Twenty-three Microscope countries created
for the poor
liquidity facilities that provide support to large
Governments around the world have provided financial institutions to contain systemic risks in
support to individuals, prioritising low-income the financial sector. However, efforts to protect
households and individuals in the informal financial institutions that serve the poor (agents,
economy who are most affected by the drop MFIs, mobile money providers and others) have
in economic activity caused by the COVID-19 varied, highlighting differences in regulatory
pandemic. However, the financial institutions regimes for non-bank financial institutions, as
that serve these populations also need support. well as a lack of visibility into their portfolios.
As in other sectors throughout the economy,
While bank branches and ATMs were
economic shutdowns have upended business
considered essential services during lockdowns,
34 https://business.inquirer.net/295959/bsp-waives-fees-for-new-e- several cash-in, cash-out (CICO) agents were
payment-services-as-people-shift-to-digital-transactions
© The Economist Intelligence Unit Limited 2020GLOBAL MICROSCOPE 2020
18
The role of financial inclusion in the COVID-19 response
Figure 6
Remote account opening by banks, non-banks, e-money issuers and agents
Products and Outlets → Accounts at financial institutions and e-money
3.1.3) Remote account opening, 2020 scores by country Score 75+ Score 50-74 Score 25-49 Score 0-24
Sored 0-100 where 100=best environment for financial inclusion
100
80
60
40
20
0
ARGENTINA
BOLIVIA
BRAZIL
CAMBODIA
CHINA
CÔTE D'IVOIRE
ECUADOR
EL SALVADOR
GHANA
KENYA
MEXICO
PARAGUAY
PERU
PHILIPPINES
RWANDA
TANZANIA
THAILAND
TRINIDAD AND TOBAGO
URUGUAY
CAMEROON
CHILE
COLOMBIA
COSTA RICA
GUATEMALA
HAITI
HONDURAS
INDIA
INDONESIA
JAMAICA
LEBANON
MOROCCO
NIGERIA
PAKISTAN
PANAMA
TUNISIA
TURKEY
UGANDA
BANGLADESH
DOMINICAN REPUBLIC
DRC
EGYPT
ETHIOPIA
JORDAN
MADAGASCAR
MOZAMBIQUE
MYANMAR
NEPAL
NICARAGUA
RUSSIA
SENEGAL
SIERRA LEONE
SOUTH AFRICA
SRI LANKA
VENEZUELA
VIETNAM
considered non-essential businesses. This viable during the crisis. In India, the government
created confusion in countries like Colombia is offering temporary subsidies to rural agents
and Kenya, where non-dedicated CICO agents to offset some of these loses. In Kenya, agents
were not allowed to operate during lockdowns.35 have a tiered fee structure that offers higher
Even in countries where CICO agents were incentives to rural agents for distributing
allowed to operate, many saw their revenues government payments.38 In Nigeria, the central
fall due to the economic slowdown. In Uganda bank established the Shared Agent Network
and Kenya, agents witnessed a 40% drop in the Expansion Facility, which provides financing
number of clients and the value of transactions to licence super agents and mobile money
in the first months of the pandemic.36 operators to expand their networks.39
Mobile money providers had to bear the costs MFIs are also facing challenges. Governments
of operating agent networks with below-normal in 21 Microscope countries have imposed
activity while also waiving cash-out fees, which moratoria on repayments, and 27 countries have
represent 70% of their revenue.37 Agents were encouraged financial providers to restructure
also asked to disburse COVID-19 government payments. To help institutions through this
payments using fee levels that were no longer period, 23 countries created liquidity facilities
for banks, but only 11 included MFIs in these
35 https://www.cgap.org/blog/agent-networks-vital-covid-19-
response-need-support 38 https://www.cgap.org/blog/agent-networks-vital-covid-19-
36 https://www.microsave.net/wp-content/uploads/2020/07/200710- response-need-support
Uganda-CICO-report-Final-edited-version.pdf 39 https://www.afi-global.org/publications/3496/Regional-Policy-
37 https://www.cgap.org/blog/agent-networks-vital-covid-19- Framework-To-Strengthen-Agent-Networks-For-Digital-
response-need-support Financial-Services-DFS
© The Economist Intelligence Unit Limited 2020GLOBAL MICROSCOPE 2020
19
The role of financial inclusion in the COVID-19 response
Figure 7
Market monitoring for market providers that are not regulated as financial institutions
Stability and integrity → Supervisory capacity
2.4.6) Market monitoring, 2020 scores by country Score 75+ Score 50-74 Score 25-49 Score 0-24
Sored 0-100 where 100=best environment for financial inclusion
100
80
60
40
20
0
ARGENTINA
COLOMBIA
INDONESIA
MYANMAR
PERU
PHILIPPINES
RUSSIA
SENEGAL
SOUTH AFRICA
TANZANIA
THAILAND
URUGUAY
BOLIVIA
CAMBODIA
CHILE
CHINA
ECUADOR
EGYPT
EL SALVADOR
ETHIOPIA
GHANA
GUATEMALA
HONDURAS
INDIA
JAMAICA
JORDAN
KENYA
LEBANON
MADAGASCAR
MEXICO
NICARAGUA
PANAMA
RWANDA
TURKEY
UGANDA
VIETNAM
BANGLADESH
BRAZIL
CAMEROON
COSTA RICA
CÔTE D'IVOIRE
DOMINICAN REPUBLIC
DRC
HAITI
MOROCCO
MOZAMBIQUE
NEPAL
NIGERIA
PAKISTAN
PARAGUAY
SIERRA LEONE
SRI LANKA
TRINIDAD AND TOBAGO
TUNISIA
VENEZUELA
facilities or mandated banks to extend liquidity for the eventual economic reopening and
to MFIs. In many cases, MFIs—especially recovery.
small and medium-sized institutions—are not
Regulatory frameworks and supervisory
supervised by the same regulators as banks,
authorities differ based on the level of risk
which may mean that the support provided
that financial institutions pose to the financial
by regulators does not reach some of the
system. However, during this crisis it has
institutions that serve the most vulnerable
become clear that the collapse of microfinance
communities.
and non-bank financial institutions represents
According to survey data from CGAP, 75% of a social risk, given that they serve over 140m
MFIs reduced the amount of money they loaned low-income customers worldwide.41 A survey
out as a result of the COVID-19 pandemic, on responses to the COVID-19 pandemic in
and for two-thirds this reduction represented Pakistan revealed that banks, non-banks, MFIs
more than half of what they would normally be and larger institutions all want a more uniform
lending.40 This reduced the amount of credit regulatory environment; one side wants access
available to the poorest in the economy, as well to the support facilities provided to larger, more
as the income that small and medium-sized regulated institutions, and the other side is
institutions rely on to sustain their operations. concerned about the more lenient regulation of
Governments need these institutions to remain smaller, non-bank financial institutions.42
operational in order to direct financial firepower
41 https://www.economist.com/leaders/2020/08/15/covid-19-is-
causing-a-microcredit-crunch
40 https://www.cgap.org/blog/there-liquidity-crisis-among-mfis- 42 https://www.financialaccess.org/assets/publications/2020/
and-if-so-where Covid19-MFIs.pdf
© The Economist Intelligence Unit Limited 2020GLOBAL MICROSCOPE 2020
20
The role of financial inclusion in the COVID-19 response
Figure 8
Cybercrime legal protection
Consumer protection → Data privacy and cymercrime protection
4.3.2) Cybercrime legal protection, 2020 scores by country Score 75+ Score 50-74 Score 25-49 Score 0-24
Sored 0-100 where 100=best environment for financial inclusion
100
80
60
40
20
0
DOMINICAN REPUBLIC
KENYA
TANZANIA
TURKEY
RUSSIA
PHILIPPINES
INDONESIA
EGYPT
NIGERIA
THAILAND
SENEGAL
BRAZIL
CAMEROON
MEXICO
PARAGUAY
JAMAICA
CÔTE D'IVOIRE
PAKISTAN
TRINIDAD AND TOBAGO
COLOMBIA
CHILE
ARGENTINA
PANAMA
MOROCCO
CHINA
INDIA
SOUTH AFRICA
SRI LANKA
UGANDA
PERU
RWANDA
GHANA
BOLIVIA
VIETNAM
TUNISIA
BANGLADESH
ECUADOR
JORDAN
EL SALVADOR
VENEZUELA
MADAGASCAR
NICARAGUA
COSTA RICA
GUATEMALA
NEPAL
HONDURAS
CAMBODIA
ETHIOPIA
MYANMAR
MOZAMBIQUE
URUGUAY
SIERRA LEONE
DRC
HAITI
LEBANON
In order to provide effective support to MFIs to implement such assistance is often lacking.
and other institutions that promote financial Just 12 of the 55 countries in the Microscope
inclusion, regulators must be in close contact have dedicated technical experts with advanced
with the sector, must possess and analyse the capacity to supervise non-bank financial
necessary data to understand these institutions’ institutions, and most countries could do
portfolios, and must then act accordingly. In more to understand and support the sector.
Peru, regulators’ knowledge of the sector and Furthermore, 43 of the 55 countries in the 2020
access to extensive data enabled them to act, Microscope do not regularly monitor providers
providing liquidity to MFIs and reducing their that are not regulated as financial institutions
supervisory burden during the pandemic, but provide financial services that could affect
while also ensuring that clients received debt the broader financial system (see Figure 5).
relief.43 In India, the government’s relief package
channelled support for MFIs and non-bank Financial authorities should adapt to
financial institutions through banks and protect consumers from emerging
provided incentives to push banks to on-lend risks
the funds received.44
The growth of digital financial services and
Unfortunately, the 2020 Global Microscope mounting economic pressures have created new
shows that the regulatory experience necessary risks for financial service users. Cases of financial
fraud have risen as bad actors seek to take
43 https://www.findevgateway.org/sites/default/files/users/user331/
Peru.pdf advantage of pandemic-related uncertainty,
44 https://www.bloombergquint.com/business/smaller-nbfcs-may- as well as changes in consumer behaviour,
see-limited-relief-from-rbis-tltro-20
© The Economist Intelligence Unit Limited 2020GLOBAL MICROSCOPE 2020
21
The role of financial inclusion in the COVID-19 response
such as the shift to digital banking.45 Scams emerged as the leader in the Sub-Saharan Africa
have proliferated around the world, including region after passing new regulations, prohibiting
phishing attacks seeking personal information aggressive selling and misrepresentation
in exchange for cash or “free” services, offers of and requiring lenders to disclose current and
emergency funds, and even fraudulent recalls of potential conflicts of interest to consumers.
cash said to be contaminated with coronavirus. However fourteen countries in the 2020 Global
These scams have the potential to undermine Microscope do not have consumer protection
trust in governments, financial institutions, and standards for digital financial services similar to
the digital channels that are vital to supporting those set for banks and other financial service
clients during the pandemic.46 The introduction institutions. In Argentina, regulated digital
of comprehensive data privacy and cybercrime financial service providers are not classified
protections should remain a priority for as financial institutions, which means that the
governments that are promoting the increased financial consumer protection framework does
use of digital financial services. Governments not apply to them. In Peru, they are subject
and financial institutions will also need to to a simplified consumer protection regime
work together to address these challenges and because they are presumed to present lower
foster a sense of trust among new entrants to risks to consumers. If individuals are to adopt
the financial system. The Dominican Republic, digital channels as a true alternative to in-
Kenya, Tanzania and Turkey have the most person banking, they must be assured that they
comprehensive legal frameworks to investigate will benefit from the same protections as via
and prosecute cybercrime (see Figure 6). physical channels. Furthermore, in the coming
years it will be important to assess, as well as
Consumer protection regulations also need
additional measures needed to that address
to keep pace with the risks posed by digital
specific risks emerging in digital channels such
financial services. The Global Microscope
as algorithmic bias and privacy issues. Less
assesses the comprehensiveness of regulation
than half the countries in our sample (22 out
across four key areas: 1) Disclosure of relevant
of 55) have comprehensive legal frameworks
product information, 2) Aggressive sales and
governing data privacy that applies to financial
debt collection practices, 3) Non-discrimination
services providers.
in financial services provision and 4) Standards
for complaints resolutions. This year, Tanzania
45 https://www.globenewswire.com/news-
release/2020/06/24/2052648/0/en/As-More-Transactions-Shift-
Online-During-Pandemic-the-Financial-Services-Industry-
Experiences-a-Surge-in-Fraudulent-Activity.html
46 https://www.cgap.org/blog/financial-scams-rise-coronavirus-hits-
developing-countries
© The Economist Intelligence Unit Limited 2020You can also read
