Digital Financial Inclusion and Regulation

Cover
Endorsements
Half Title
Series Page
Title Page
Copyright Page
Dedication
Contents
Foreword
Preface
Table of Statutes and Other Legal Instruments
Abbreviations
Book Summary
1. Introduction
	1.1 Background
	1.2 Definition of relevant financial inclusion concepts
		1.2.1 Financial inclusion
		1.2.2 Digital financial service
		1.2.3 Bank/non-bank institutions
		1.2.4 Mobile network operator
		1.2.5 Inclusive finance
		1.2.6 Financial health
		1.2.7 Financial stress
		1.2.8 Financial literacy and capability
	1.3 Dimensions of financial inclusion
		1.3.1 Banked
		1.3.2 Formal other
		1.3.3 Informal only
		1.3.4 Financially excluded
	1.4 Why is financial inclusion important for Nigeria?
	1.5 Chronicling Nigeria's journey to achieving financial inclusion
		1.5.1 Demographic profile of the excluded in the pre-2011 era
		1.5.2 Financial inclusion access strands
		1.5.3 Financial exclusion by gender
		1.5.4 Age range of the financially excluded
		1.5.5 Rural/urban exclusion
		1.5.6 Financial exclusion by level of education
		1.5.7 Geographical representation of financial inclusion by geo-political zones
		1.5.8 Stakeholder and industry profile
	1.6 Nigeria's commitment to the Maya Declaration
	1.7 Regulatory initiatives since the Maya Declaration
	1.8 The CBN 2018 National Financial Inclusion Strategy (NFIS) refresh
	1.9 Legal landscape for financial inclusion in Nigeria
	1.10 Institutional landscape for financial inclusion in Nigeria
		1.10.1 Central Bank of Nigeria
		1.10.2 National Insurance Commission (NAICOM)
		1.10.3 Nigerian Communications Commission (NCC)
		1.10.4 Nigeria Deposit Insurance Corporation
		1.10.5 National Pension Commission (PENCOM)
		1.10.6 Securities and Exchange Commission (SEC)
		1.10.7 National Bureau of Statistics (NBS)
		1.10.8 The National Identification Management Commission
		1.10.9 The Nigerian Postal Service
	1.11 How have we fared in the financial inclusion journey?
	1.12 Conclusion
	Notes
2. Financial Inclusion in the Context of Law and Development
	2.1 Introduction
	2.2 The law and development moments
	2.3 Law and development intersections
	2.4 Law and development theory in the context of financial inclusion
	2.5 Legal transplants
		2.5.1 Background to legal transplants
		2.5.2 The motivating factors for legal transplants
	2.6 Financial inclusion transplants in Nigeria
	2.7 Conclusion
	Notes
3. Regulation of Digital Financial Services
	3.1 Introduction
	3.2 The financial sector regulator
	3.3 Regulation and market competition
	3.4 The place of competitive advantages for DFS providers
	3.5 Determining dominance and anti-competition in DFS
	3.6 Regulatory sandboxes and prospective use cases in Nigeria
	3.7 Conclusion
	Notes
4. Dislodging the Barriers to Accessing Financial Services in Nigeria
	4.1 Introduction
	4.2 Barriers to financial inclusion in Nigeria
		4.2.1 Irregular income and unemployment
		4.2.2 Cost of financial services
		4.2.3 Illiteracy
		4.2.4 Distance
			4.2.4.1 Geographical spread of financial access points
			4.2.4.2 Agent banking/network
		4.2.5 Cash preference
		4.2.6 Identification documentation
			4.2.6.1 The National Identification Number
			4.2.6.2 Permanent voter card
		4.2.7 Complexity of account opening
			4.2.7.1 Know-Your-Customer compliance
			4.2.7.2 Bank Verification Number
			4.2.7.3 Proof of address
	4.3 Conclusion
	Notes
5. Rural Digital Financial Exclusion - Community Case Study (Ubulu-Uku, Nigeria)
	5.1 Introduction
		5.1.1 Outline of study
		5.1.2 Aims and objectives
		5.1.3 Method of identifying and selecting participants
		5.1.4 Key messages
	5.2 Background
	5.3 Financial inclusion themes
		5.3.1 Knowledge about financial inclusion initiatives
		5.3.2 Financial service adoption and usage patterns
		5.3.3 Barriers to accessing finance
			5.3.3.1 Demand-side barriers
			5.3.3.2 Supply-side barriers
			5.3.3.3 Regulatory barriers
		5.3.4 Coping strategies
			5.3.4.1 Use of banks in other communities
			5.3.4.2 The use of indigenous savings systems
		5.3.5 Consumer perception of DFS
			5.3.5.1 Perceptions about mobile network operators
			5.3.5.2 Perceptions about the postal service
			5.3.5.3 Insights from consumer perceptions
		5.3.6 User recommendations
	5.4 Lessons for financial inclusion
		5.4.1 Conventional banks are trusted but not easily accessible
		5.4.2 Cash is still king
		5.4.3 Tailored regulatory policies are essential
	5.5 Summary of findings
	5.6 Conclusion
	Notes
6. Emerging Technology and Implications for Financial Inclusion
	6.1 Introduction
	6.2 The financial technology sector in Nigeria: A brief overview
	6.3 Emerging trends in technology and potential for improving financial inclusion
		6.3.1 Distributed ledger technology
		6.3.2 Cryptocurrencies
		6.3.3 Central bank digital currencies
		6.3.4 Data analytics and big data
		6.3.5 Artificial intelligence
		6.3.6 Robo-advisors
		6.3.7 Application programming interface
		6.3.8 Peer-to-peer lending
		6.3.9 Digital identification
	6.4 Summary of legal issues raised by foregoing financial service technologies
	Concluding remarks
	Notes
Appendix
	Rural participants interview sheet
		Personal Information
		Information on formal finance participation
Bibliography
	Books
	Journal articles
	Institutional Publications
	Nigerian policy documents/publications
	Technical reports
	News media
	General Internet sources
Index