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01

Overview

DFS innovations continue to harness the potential of big data to provide financial services to unserved and underserved individuals and businesses.

02

Potential Benefits of Data Privacy and Protection Frameworks for DFS

Large volumes of traditional and alternative forms of data is being collected, processed and used. This has accelerated development of the DFS landscape with potential benefits for users, firms, and countries.

Potential benefits for users, firms, and countries

Photo Credit: World Bank
Source: World Bank
03

Key Concerns for DFS Users

Understanding data privacy concerns from the perspective of a DFS user is a critical first step towards policy and regulatory reforms which balance rights of users and obligations of providers.

04

Emerging Risks and Mitigants

Data privacy risks are evolving rapidly with varying mitigating actions being tested in different markets.

05

Guiding Principles

The guiding principles are intended to support a risk-based proportionate regulatory framework for data privacy and protection in a DFS context.

Guiding Principles
06

Implementation

There are three ways that the guiding principles could be implemented. They include

  1. an overarching law on data protection and privacy.
  2. incorporating data protection aspects in existing and related financial sector regulations.
  3. code of practice developed by industry association or representative body.

There are three ways that the guiding principles could be implemented. They include an overarching law on data protection and privacy, incorporating data protection aspects in existing and related financial sector regulations, or a code of practice developed by industry association or representative body

Photo Credit: World Bank
Source: World Bank

These approaches are not mutually exclusive and may be used to complement each other and provide a comprehensive framework.

In all cases, financial sector policymakers and regulators could consider a set of minimal actions (such as market risk assessments and stakeholder awareness) in the interim period before an implementation approach is finalized.

The extent to which the guiding principles are relevant for a country will depend on various factors. These include identified benefits and risks, policy priorities, existing legal and regulatory frameworks, supervisory and enforcement capacity, and market dynamics.

Overall, there should be effective consultation to identify the scope and coverage of laws, regulations, and guidelines. The guiding principles may provide the basis for consultation.