Page 108 - ITU-T Focus Group Digital Financial Services – Recommendations

ITU-T Focus Group Digital Financial Services
Recommendations

Market monitoring tools are important for reviewing debt trends on a continuous basis, using both demand-side
data and review of digital credit portfolios. One useful step is to establish standardized reporting requirements
for market monitoring. Reporting data can be complemented by information from other sources, such as
complaint data, consumer research, consumer advocates, credit information bureau, and other potential
indicators of debt stress and an overheated market.
Regulators’ engagement with providers on product design can help to mitigate potential consumer protection
weaknesses in a product and its value chain, identify cost-effective practices that improve transparency and
repayment performance (that might serve as the basis for rules), and assess market trends as they arise. For
example, the State Bank of Pakistan (SBP), recently created a digital credit “sandbox” by inviting prospective
lenders to apply for approval; a first applicant has been approved for a six-month pilot, with a stocktaking
midway and final approval decision at the end.

Analyzing available research and data on the customer experience, such as mystery shopping, surveys, and
focus group discussions, will help to identify emerging risks and prioritize regulatory responses. In addition,
regulators should encourage providers to improve consumer awareness and understanding over time.

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