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> Posted by Alexandra Rizzi, Deputy Director of the Smart Campaign
The following is part of the Smart Campaign’s #FintechProtects series. We’re raising awareness about responsible digital financial services, spotlighting work from the Smart Campaign and others, and engaging with industry actors on how fintech can move forward in a way that’s best for clients. For more information on #FintechProtects, and to get involved, click here.
In financial inclusion circles there is palpable excitement around the promise of digital financial services (DFS) – most recently quantified by the McKinsey Global Institute as the potential for 1.6 billion individuals becoming banked, $2.1 trillion in loans disbursed, and 95 million new jobs. Yet, in order for this potential to be achieved, customers must trust the service. For instance, India-based MicroSave conducted research showing that while 85 percent of DFS customers said they would recommend DFS to others, they thought of it as a Plan B due to lack of trust. Issues that can erode or prevent trust from building include gaps in data protection and security, service downtime, insufficient transparency, agent misconduct and unauthorized fees, among others. As Graham Wright of MicroSave writes, “It is clear that there are immediate potential wins for DFS providers who address consumer protection issues.”
In this post the Smart Campaign spotlights a fast-growing fintech company, JUMO, that is helping to define what responsible digital finance means.
> Posted by Jeffrey Riecke, Communications Associate, CFI
On Monday, Myanmar launched its first domestic online payment network. The payment platform centers on a partnership between 2C2P, a Southeast Asian payment services company with a history of digital finance work in the country, and Myanmar Payment Union (MPU), the national payment network set-up by the country’s central bank. The new platform allows MPU cardholders, currently 900,000 individuals and counting, to make online purchases in-country. The e-pay advancement is a promising step for financial inclusion in the country, which continues its recovery from economic isolation and military rule.
The Myanmar Payment Union, the country’s only domestic card-based payment system, launched in 2011, encompasses 20 banking partners, including three state-owned banks. In the time since MPU introduced banking cards and ATMs, card adoption has increased, with enormous growth in 2014, from roughly 200,000 cardholders early in the year to the current level of 900,000. With the new online payment system, businesses now need to sign onto the service via one of MPU’s partner banks, which will provide technical support and consultation throughout the process. On both the business and consumer end, achieving the necessary platform traction will require significant awareness building – quelling fundamental questions like: will my payment actually reach the merchant?