Many investors want to better understand opportunities in the FinTech space but do not have a roadmap for how to evaluate such investments for their risks and benefits to clients. Industry-wide standards exist for evaluating the consumer protection and social performance management (SPM) practices of traditional financial service providers and can be a starting point for Fintech providers as standards and guidelines are being adapted. In the meantime, investors are seeking answers to the questions:
- During due diligence and monitoring of FinTech investments, how do we evaluate client protection risks?
- How do we assess the value for the end consumer?
- What should they be looking for with different models (e.g. pay as you go, P2P, insurance)?
This webinar series, funded by CDC Group, is designed to help start answering these questions. Each webinar convenes field experts and investors to highlight key areas for client protection and includes ample time for discussion between experts and investors to understand how to evaluate risks.
- Webinar 1: Evaluating Risks and Value to Clients - Oct. 6, 2017
In this introductory webinar, Alex Rizzi of the Smart Campaign outlined specific client protection risks posed by FinTech, and Pim Engels of FMO discussed how his organization is adapting its due diligence process for FinTech investments.
- Webinar 2: Evaluating Repayment Capacity Analysis - Dec. 7, 2017
In this webinar, Anup Singh of MicroSave and Rafe Mazer, a consumer protection expert who has worked with digital credit providers, discussed the risks associated with repayment capacity analysis and predatory marketing with respect to the sustainability and profitability of investments, as well as the impact on end-consumers.
- Webinar 3: Evaluating Risks with Agent Network Management - April 13, 2018
In this webinar, Venkat Attaluri of MicroSave discussed the risks associated with agent network management, as well as the questions investors can ask about this risk during due diligence and monitoring of FinTech investments.
- Webinar 4: Evaluating Pricing and Pricing Transparency - May 8, 2018
In this webinar, Rafe Mazer of FSD Kenya discussed whether increased scale and efficiencies in digital financial services are leading to lower prices for end-consumers. Eliud Mungai of Branch International and Peace Osangir of Kopo Kopo discussed how their organizations disclose pricing to clients.
Kopo Kopo PowerPoint
- Webinar 5: Evaluating Technology Risks and Opportunities - October 10, 2018
In this webinar, Monica Brand of Quona Capital discussed how her institution identifies technology risks and opportunities in FinTech investments, with the aim of creating value for end clients. Quona utilizes partnerships to identify such risks, and one partner - RippleWorks - joined the call to discuss how it helps investors manage technology risks.
- Webinar 6: Evaluating SPM Risks in Pay-as-you-go Models - March 14, 2019
In this webinar, Drew Corbyn of GOGLA and Luca Giacopelli of Mobisol discuss the main client protection risks in the pay-as-you-go off-grid solar industry, as well as the development of new tools to help assess those risks.
Join the conversation
Understanding the FinTech space and its effects on end clients is a moving target. The technology and delivery methods change rapidly, as do the players. It is essential that global learning is shared among investors. A good deal of learning has already taken place, and there are many initiatives aimed at self-regulation. Those with investments in FinTech can share their expertise with the rest of the industry. The learning curve will be much shorter if investors compare notes, and potentially arrive at some shared criteria for FinTech due diligence/monitoring and potentially a client protection certification for FinTech providers. There are several avenues for investors to join this work:
- Join the SPTF Social Investor Working Group, which is open to all social investors.
- Webinar 2: IFC's Due Diligence for DFS - May 2018
Corporate Governance for Financial Inclusion (IFC) - Includes customer risk assessment for responsible DFS
IFC draft due diligence checklist for operational and investment officers involved in DFS
-Webinar 3: Implementing Guideline 6: Promoting Fair and Transparent Pricing - May 2019
DEG draft briefing note
Smart Campaign PowerPoint