On Harnessing the Potential of Financial Inclusion

May 01, 2011 | P. Dittus, M. Klein | BIS

The paper describes one commercially viable initiative in more detail, M-PESA in Kenya, and analyses in details the transactions involved. It argues that in order to harness the potential of financial inclusion it is vital to permit experimentation with different business models. Regulation is therefore required that enables such experimentation by being calibrated to the type of service offered, but which can be tightened if and when such schemes become bigger with the potential to impact financial stability: risk-proportionate regulation by service type.

Theme: Financial Inclusion, Digital Finance | Country: Kenya | Pages: 25