Responsible Finance and Consumer Protection

PYMNTS.com has released Mid-Year 2018 Checkpoint ebook that maps outwhat payments executives believe is next for the year. Half way through 2018,  innovation within the payments space follows no timetable. PYMNTS.com asked several stakeholders across processing, banking, digital payments and other areas to share with us what trends shaped the first half of the year, and how they might shape the next six months before 2018 comes to a close.

In two years, India’s story of financial inclusion has shifted from account opening to account usage. Supported by enabling technology and focused policy moves, India presents a clear example of how policy imperatives can drive the agenda of financial inclusion. 2017 was a positive shift from 2015. During this time, new models like payments banks have emerged, support systems have become better, use-cases have increased, while agent networks have strengthened to position themselves as delivery channels for various financial and non-financial
services. 

Nearly a third (28%) of small business owners don’t feel financially confident unless they have a buffer big enough to cover running costs for a year, according to new research from credit card machine provider Paymentsense. The study found that despite this, more than four in 10 small business owners (41%) admit to having no such buffer in place, meaning as many as 2.3m UK small businesses may have no financial backup plan.

Bank loans accounted for 14 percent, while asset-based lending/factoring/invoice finance accounted for 16 percent of financial buffer.

IFC, a member of the World Bank Group helps regulators to tackle challenges faced by them and promote financial inclusion says, Rachel Freeman from IFC and the World Bank Group. She shares the challenges faced by regulators and whether fintechs need sandboxes to grow. View her insights on these topics in this video during the Money 20/20 event, and also find out what IFC is doing to strengthen fintechs and banks.
 

The Federation of Small Businesses (FSB) evidence suggests that, in terms of data protection regulation, the optimal regulatory balance has yet to be achieved for small businesses. Many are struggling with current data protection regulations. And the cumulative burden will only increase as the General Data Protection Regulation  (GDPR) comes into force.

Maria Roat is Chief Information Officer at the U.S. Small Business Administration explains how small businesses are at risk for cyber attacks and explains how her agency and others are working to help owners protect themselves. 

"Small businesses are targets, and many are unprepared for cybersecurity challenges including ever-changing and increasing threats from malware, viruses and ransomware against intellectual property and company data. Nor are they adequately prepared to recognize or respond to an internal or external incident," she says.

The SAP Business Partnership Study shows that three out of four small and midsize enterprises (SMEs) see IT and technology vendors not just as an external resource but as vital to their business.

More and more technology vendors are being used by business leaders for consultation (76 percent), for insight and advice (79 percent) and to anticipate needs and risks (76 percent).

With a purpose to create knowledge among SMEs and Financial institutions about the Credit Reporting for SME segment, the World Bank Group has developed two compelling and interactive online Learning Courses on this topic. These courses are intended to provide SMEs and lenders with the knowledge about MSME financing, credit information sharing, the role of credit information service providers, credit Reports, credit Score, and dispute resolution process.