CGAP : 3 Steps Policy-Makers Can Take Now on Digital Credit

Two important issues are noticeable in digital credit market development: it can expand so fast that it becomes difficult to control by financial authorities, and there is very limited oversight of market conduct

in this sector to date. To address these issues, even with limited or dispersed authority, the article elaborates three first steps policy-makers could take to better understand and manage consumer protection and other risks in emerging digital credit markets. These three steps are: use payments data to monitor market growth and portfolio quality, gather demand-side evidence on digital borrowers, and coordinate across authorities to address primary consumer protection risks. To read more about the arguments behind these effort, you can find the article here.