In June, @WorldBank published their #GlobalFindex Report '21.
The report highlights the need for strong #consumerprotection frameworks to ensure equitable access to #DigitalFinance.
🧵Our key takeaways:
Digital banking is on the rise globally.
▶️76% have an account with a bank or mobile money provider, up from 51% a decade ago
▶️In developing countries, this % rose from 42% to 71%
▶️ For the 1st time the gender gap between women and men who hold accounts has narrowed to 4%.
#InclusiveFinance is critical to meeting the SDGs.
▶️ Digitalisation increases transparency & reduces corruption
▶️ It increases women's financial independence and empowerment
▶️Households are better able to withstand financial shocks and prepare for emergencies.
#FairDigitalFinance has a long way to go.
▶️1.4 billion remain #unbanked
▶️Unbanked adults usually live in rural, poor areas with little access to education or internet
▶️Lack of money, distance to financial institutions, insufficient documentation most commonly cited reasons.
Consumer protection frameworks are critical to sustainable financial inclusion.
▶️Low income, unbanked and 1st-time account holders most vulnerable
▶️ Risks include: high or hidden fees, overindebtedness, fraud & discrimination
▶️Safeguards are needed to build #publictrust
Governments and regulators should ensure:
▶️Accessible information about fees so consumers know exactly what & when they will be charged
▶️Clear guidelines for financial institutions around disclosure and transparency
▶️Provision of financial literacy education.
At Consumers International, we work to ensure regulation and policy does not fall behind this rapid rise in financial digitisation.
Our #FairDigitalFinanceAccelerator builds up consumers associations in LMICs to ensure digital finance works for #consumers
consumersinternational.org/what-we-do/dig…
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