Must Read of the Week:
Digital financial services (DFS) have seen a tremendous increase in usage in the past few years. As last week’s News Post highlighted, 2014 was another year of growth for DFS and there are now 255 mobile money deployments worldwide. As more growth is predicted in the industry, especially in developing markets, we expect the global ecosystem to deepen with regards to the products and services offered. The expanding customer base will lead to innovations and products beyond the current staples (savings, loans, etc.) as providers look to distinguish themselves from one another. Although many innovations are currently limited to developed markets, we expect developing markets will be importing these (or, hopefully creating their own) very soon.
As the use of DFS continue to increase, so does the risk posed to those connecting with the various platforms. In this week’s Must Read, the Bill and Melinda Gates Foundation explore risks facing the DFS industry issues in their report, Assessing Risk in Digital Payments. The report assesses three categories of risk: operational risks, solvency/liquidity risks, and risks associated with more advanced financial services. The greatest risks to the industry, according to the report, lie in operational issues.
Read the article and report here: http://www.impatientoptimists.org/Posts/2015/02/Assessing-Risk-Within-Digital-Financial-Services