Donors have a very important role to play when addressing risks related to developing new products or trying to reach new customers. With information playing a key role in identifying the requirements of an inclusive financial system that includes understanding the awareness and knowledge of poor consumers capacity to understand the financial services on offer. Along with what works and what doesn’t work for the relevant stakeholders.
Specifically, donors can help with:
- By investing in information solutions that take into account how consumers and providers can use relevant data, creating long-term data solutions that address needs well beyond a donor’s intervention.
- By supporting initiatives that reduce the cost of collection and analysis of relevant data, enabling providers to make important business decisions and de-risking the process of innovation.
- By supporting regulators to collect and disseminate data that has use, cases that serve the overall public good, such as serving as a feedback loop to market actors.
This is not all as the donors can look into the information needs of a particular product: credit, payment/transfers, savings or insurance etc. Understand the risks associated with each product and their respective functionality with regards to operations, finance and reputation.
With data growing rapidly in a digitized world, it is not the quantity of data but the availability of relevant data and the ability to analyze and understand the meaning of such data can greatly help in identifying the areas required for work. A better understanding of the specific needs of the markets, products and consumers will help donors working closely with financial providers shape the promotion of more inclusive financial services.