DPI has the potential to improve the delivery of digital financial services to last-mile populations, but it must be designed so that people trust, understand, benefit from, and feel protected when using these services. How do we ensure that DPI is sustainably developed, implemented responsibly, and leads to positive consumer outcomes?
Digital public infrastructure (DPI) is an evolving concept without a commonly agreed definition. However, there are three layers that are foundational for the design and delivery of financial services: digital ID, digital payments, and consent-based data exchange.
Our research aims to address open questions we must consider to achieve the potential of DPI, highlight the importance of participant-centric research and design, and further explore the layers of DPI that are pertinent to inclusive finance, like data exchange.
A LANDSCAPE ANALYSIS
Foundational Elements of DPI for Inclusive Finance
This report provides an analysis of the three foundational elements of DPI for inclusive finance: digital ID, digital payments, and consent-based data exchange. It also identifies open questions that need to be addressed to advance and refine DPI for inclusive and sustainable development.
Responsible DPI for Improving Outcomes Beyond Inclusion
Hear CFI’s researchers discuss challenges with defining DPI, what we must consider to build responsible systems, and what we are working on to explore the topic further.
A PARTICIPANT-CENTRIC APPROACH
Designing DPI for Positive Participant Outcomes
DPI has the potential to significantly enhance the design and delivery of digital financial services, placing participants at the center of the experience. Some countries have demonstrated successful and scalable DPI models. The success of these initiatives in delivering meaningful benefits to citizens can vary by country, influenced by factors such as state capacity, accountability, and rule of law. By focusing on the needs and experiences of consumers and identifying the necessary safeguards to protect participants, DPI can improve outcomes and benefit all.
The Potential of Data Sharing
Empowering Consumers and Preventing Harm from Data Exchange
Data exchange is a foundational layer of DPI. The ability to exchange a wide range of data about consumers, SMEs, and their activities can enable financial institutions to design more efficient and personalized services, positioning data exchange as a key driver of future financial inclusion efforts. Focusing on leading markets like the EU, Singapore, India, and Brazil, this unique research examines the realities of implementing data exchange practices after the first few years and the barriers and opportunities that arise therein. It also aims to provide insights for other countries developing their own data exchange frameworks, emphasizing key policy choices needed to create inclusive, secure, and efficient data.
