Mobile Financial Services: Regulatory Reporting

This note discusses effective methods for adapting supervisory frameworks for financial services delivered through mobile phones. It draws on common regulatory practices within the Alliance for Financial Inclusion Mobile Financial Services Working Group to determine the most effective ways to supervise mobile financial services. The note evaluates the minimum data and information that suppliers would require to assess whether they comply with consumer protection and market stability objectives. It states that regular reporting requirements allow supervisors to ensure the compliance and health of individual providers, and to broadly oversee the safety and efficiency of the system. Moreover, it also allows supervisors to verify that the rights and interests of consumers are protected, product information is transparent, and customer claims and redress mechanisms are reported. The note identifies four key areas that should be captured in MFS regulatory reporting:

• Risk management frameworks and resulting data for risks pertaining to operations, liquidity, money laundering, and terrorist financing;
• Consumer protection including both quantitative and qualitative information;
• Public disclosure of information containing overview of mission, audited financial statements, capital base, and additional capital requirement for operational risk;
• Data and information on outreach and financial inclusion.