Digital Payments • Mobile/Internet

CONTENTS

1 EXECUTIVE SUMMARY

2 INTRODUCTION

3 FINTECH USE CASES AND BUSINESS MODELS FOR MSME

ACCESS TO FINANCE

Crowdfunding Regulatory Framework

3

3

5

6

4 POLICY GUIDELINES: REGULATORY FRAMEWORK FOR

FINTECH AND DIGITAL CREDIT 8

Regulatory Oversight on FinTech or Digital Credit 8 Sandbox for Emerging FinTech Regulatory Frameworks 10 Market Conduct Enforcement on Digital Credit 12 Comprehensive and Effective Credit Referencing Systems 15 Credit Information Sharing 15 Data Privacy and Consumer Protection 17 Policy Guidance 18

5 POLICY GUIDELINES: FINANCIAL STABILITY

6 CONCLUSION

7 REFERENCES 20

21

22

ACKNOWLEDGMENTS

This guideline note is a product of the SME Finance Working Group (SMEFWG) and its members. Contributors:

From the AFI Management Unit, Diana Taty Azman (Policy Analyst – Policy Programs and Regional Initiatives), Nik Kamarun Nik Kamil (SME Finance Senior Policy Manager, Alliance for Financial Inclusion) and Dr. Hamid Alavi (independent consultant). This report benefited from key inputs provided by Eliki Boletawa (Head of Policy Programs and Regional Initiatives) and Ghiyazuddin Mohammad (Senior Policy Manager of Digital Financial Services Working Group) The guideline note benefited from the careful review by members of the SME Finance Working Group: Jason Barrantes Rojas (SUGEF Costa Rica), Ellen Joyce Suficiencia (Bangko Sentral Ng Pilipinas), Waleed Samarah (Central Bank of Jordan), Peter Owira (SASRA Kenya), Gul Badshah Safi (Da Afghanistan Bank), Dominic Sikakau (Bank of Papua New Guinea), Lukman Abdulkadir Sale (Central Bank of Nigeria) and Olga Ilyukevich (National Bank of the Republic of Belarus) We would like to thank AFI member institutions, partners, and donors for generously contributing to the development of this publication.