Digital Finance

We support the introduction of disruptive technologies and drive market-wide digital transformation to increase competition and to demonstrate the necessity as well as the business case for: (a) serving new traditionally un(der) served segments; (b) developing new products; and, (c) reducing inefficiencies. We support financial institutions and financial service providers (new and existing) with capital and advisory services to assist those institutions to competitively and profitably serve the needs of clients. We create both competition and assists FIs to compete.

Since 2007 IFC has provided advice and invested in digital financial service providers. IFC’s engagement in the industry has followed the evolution of the industry:

The early years 2007 – 2010 saw a strong focus on mobile money & payments. As the industry grew there was a shift from payments to banking (2010-2014). Accordingly, IFC focused more on supporting the development of business strategies leveraging technology to enable financial services as well as optimizing distribution through agents. With the rapid evolution of the industry IFC’s support shifted to include risk management, product diversification beyond payments as well as improved consumer services. As technology evolves further and with the advent of increased computing technologies IFC is now also supporting (i) data analytics, leveraging artificial intelligence and machine learning to develop a more targeted product offering for financially excluded and underserved; (ii) process digitization to make FSPs more efficient and enhance customer experience; and (iii) increased consumer protection both with regard to fair and transparent products offers and data protection.