Spotlight on: BRANCHLESS BANKING

Diagnostic assessments of the regulatory environment for "branchless banking," which has significant potential to increase access to finance in underserved areas of the world.

As defined by the Consultative Group to Assist the Poor (CGAP), "branchless banking" refers to:

"the delivery of financial services outside conventional bank branches using information and communications technologies and nonbank retail agents."

In addition to permitting banks and other traditional financial institutions to reach unbanked clients in a more cost-effective manner, branchless banking can allow nonbank actors (such as mobile phone operators, technology companies, microfinance institutions, and other parties) to provide financial services to the unbanked and underserved. However, various laws and regulations may impede or limit the ability of banks and nonbanks to use branchless banking methods.

CGAP recently performed diagnostic assessments of the legal/regulatory environment for branchless banking in 7 countries: Brazil, India, Kenya, Pakistan, the Philippines, Russia, and South Africa. Country-specific "Notes on Regulation of Branchless Banking" are now available for each country.

To view the "Notes on Regulation of Branchless Banking" series, please click here.