With the COVID-19 pandemic restricting the movement of people and goods, modes of transaction have shifted dramatically. Growing use of digital financial services has turned crisis into opportunity, enabling previously unbanked people and small firms to join the financial system.
Know your customer (KYC) regulations are designed to ensure that providers of financial services know their customers’ identities, and with more and more users taking up financial services online, KYC verification tools are also moving online to keep pace.
While many fintech firms experienced rapid growth during the COVID-19 pandemic, consumers and regulators alike need to know both the upsides and the downsides of new business models emerging in digital finance.
COVID-19 has accelerated the shift to digital payments. Now, authorities overseeing financial services and digital technologies must come together to set up proactive, strategic, inclusive policy frameworks for rapidly evolving services.