Regulating Digital Financial Services Agents in Developing Countries to Promote Financial Inclusion

Evan Gibson, Federico Lupo Pasini, Ross P. Buckley

Research output: Contribution to journalArticle

Abstract

Limited access to bank branches excludes over one billion people from accessing financial services in developing countries. Digital financial services offered by banks and mobile money providers through agents can solve this problem without the need for complex and costly physical banking infrastructures. Delivering digital financial services through agents requires a legal framework to regulate liability. This article analyses whether vicarious liability of the principal is a more efficient regulatory approach than personal liability of the agent. Agent liability in Kenya, Fiji, and Malawi is analysed to demonstrate that vicarious liability of the principal, coupled to an explicit agreement as to agent rewards and penalties, is the more efficient regulatory approach.
Original languageEnglish
Pages (from-to)26-45
Number of pages21
JournalSingapore Journal of Legal Studies
Publication statusPublished - Jul 2015

Keywords

  • financial inclusion
  • regulation
  • digital financial services
  • mobile agents

ASJC Scopus subject areas

  • Economics, Econometrics and Finance(all)
  • Law

Fingerprint Dive into the research topics of 'Regulating Digital Financial Services Agents in Developing Countries to Promote Financial Inclusion'. Together they form a unique fingerprint.

Cite this