Stories in Financial Inclusion Technology

We’ve gathered up the latest most interesting stories in financial inclusion technology. Did we miss anything? Tweet us at @StellarOrg.

Know Your Customer (KYC) is a fairly standard compliance to prevent money laundering. Though it is argued to make digital currency safer for some users, does it exclude others?

HSBC CEO Stuart Milne argues that in developing nations “the stringent KYC norms will ensure that banks do financial exclusion rather than financial inclusion.”

The Alliance for Financial Inclusion (AFI) presents three different perspectives from digital financial inclusion policymakers: African, Latin American, and the Pacific Islands. Insights come from the Global Policy Forum (GPF) and the Digital Financial Services Working Group.

The Guardian’s Global Development Professional Network facilitated a a live Q&A attempting to answer the important question “How do we promote responsible practices in financial inclusion while supporting innovation?” Paneslists included Elisabeth Rhyne, Managing Director at the Center for Financial Inclusion and Erin Steinhauer, Vice President of global financial inclusion at Visa.

Despite India’s efforts at financial inclusion (namely the Jan Dhan Yojana scheme), new research reveals that the policies aren’t reaching many of the people whom they’re meant to help. From the Center for Financial Inclusion:

“A group of mystery shoppers to pose as low-income customers interested in opening a BSBDA at 42 branches of 27 large banks in metropolitan Chennai.

None of the 42 bank branches visited offered a BSBDA as a first suggestion to the mystery shoppers. And even after the auditors pressed further, using key verbal prompts such as ‘basic’, ‘an account with no charges’, etc., only 14 percent of banks revealed the existence of BSBDA. […] Clearly the amount of time and energy required to access BSBDAs is quite high for potential clients and likely acts as a strong barrier to access.”

CEO of Nofiatcoin and Robert Reyes announced a digital currency startup haven that will work with the Dominican Republic government & financial regulators. His goal is “to create a home for our sector with clear rules that will allow any young DC [digital currency] startup to set up shop and grow without much costs.”

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