Innovations in digital technology have created new and exciting opportunities to reach unbanked and underbanked low-income customers in emerging markets as well as developed countries. Traditionally, these customer segments have been considered too risky and too poor to be of interest to banks and insurance companies. Mobile wallets and mobile money transfers, peer-to-peer and other alternative lending platforms, pay-as-you-go asset finance and digital micro-credit are examples of recent innovations that are reaching hundreds of millions of consumers and small businesses. These innovations are radically changing the financial services landscape around the globe.
While the opportunities have increased, so too have the risks surrounding digital financial services for investors, investees, customers and wider digital ecosystems across markets and regions.
50 leading organizations, including the Medical Credit Fund, teamed up to develop a set of guidelines for investors who are interested in funding inclusive digital financial services in a responsible way.
Since 2009, the Medical Credit Fund’s focus has been to increase access to loans for small and medium-sized healthcare facilities and services. Collaborating with other fintech investors and digital finance investors to agree on a set of guidelines is crucial to the ensure our continued emphasis on responsible investments.
The guidelines are a voluntary framework that organizations can sign up to and use as guidance when they invest in responsible digital financial services. The guidelines will benefit digital financial service providers and their customers by helping investors to better evaluate and manage risks associated with digital transformation and digitalization.
Learn more about the guidelines.