Research Focus
Markets for digital financial services (DFS), particularly mobile money and agent banking, are expanding rapidly across low- and middle-income countries (LMICs). This growth is driven by digitization initiatives that are reshaping financial ecosystems. At the core of these ecosystems are retail distribution and vendor networks, which play a crucial role in facilitating the conversion of money between physical cash and digital currency. These networks also serve as essential onboarding channels for a broader set of digital financial tools and services.
Emerging evidence highlights the significance of well-functioning agent networks in driving DFS adoption and usage. However, rigorous quantitative research on the organization and operation of vendor networks, vendor incentives and behaviors, and interventions aimed at expanding network reach and density remains limited. Many critical research questions persist in this space.
ReFinD Initiative
The Research on Financial Inclusion and Digitalization (ReFinD) initiative is a sub-grants-awarding research program that aims to support interventions that enhance the reach and efficiency of agent networks. By leveraging public policy and commercial solutions with scalable potential, ReFinD seeks to address structural constraints that hinder agent network expansion globally. The initiative’s overarching objective is to advance multidisciplinary research that evaluates interventions driving digital financial inclusion, particularly among vulnerable and excluded populations.
ReFinD employs a collaborative research model that fosters partnerships among researchers, policymakers, and financial service providers. By experimenting with practical solutions, the initiative aims to expand mobile money and agent banking networks, thereby connecting low-income households, women, and vulnerable populations to formal financial services.
The initiative prioritizes projects based in Sub-Saharan Africa, Southeast Asia, and South Asia, ensuring robust collaboration between researchers from the Global South and Global North. To achieve its goals, ISSER (Institute of Statistical, Social and Economic Research) facilitates partnerships and provides funding for both pilot and large-scale research projects. Funding is specifically directed at high-impact, rigorous studies with the potential for publication in leading academic journals in economics, development studies, and management sciences.
ReFinD also emphasizes knowledge dissemination through various channels, including:
Policy Briefs: Summarizing key research findings for policymakers and stakeholders.
Academic Publications: Contributing to the global discourse on DFS and financial inclusion.
Conferences and Workshops: Hosting convenings that bring together experts to discuss and disseminate research insights.
Practical Implementation Guides: Providing actionable recommendations for industry practitioners and policymakers.
By supporting evidence-based solutions, ReFinD aims to drive meaningful advancements in digital financial inclusion, ultimately contributing to broader economic empowerment and financial stability in LMICs.
ReFinD focuses on key digital finance retailing issues critical to policymakers, practitioners, and researchers in LMICs. These include:
The Organization of Retail DFS: Understanding the structural and operational frameworks that govern agent networks and their impact on DFS accessibility.
Vendor Incentives and Behavior: Exploring the motivational factors and business strategies that drive vendor participation and performance.
Constraints to the Expansion of DFS Retail Distribution Networks: Identifying barriers such as regulatory, financial, and logistical challenges that hinder network growth.
The Impact of Policy Interventions on Retail Distribution Practices: Assessing how policy changes affect agent density, service quality, and financial inclusion outcomes.
Relevant Regulations and Institutional Arrangements: Examining the role of policy frameworks in shaping DFS market dynamics and agent network operations.
Women’s Access to Digital Financial Services: Investigating gender-specific challenges and solutions for enhancing financial inclusion for women.
ReFinD is committed to achieving the following research objectives:
Expand Digital Financial Inclusion: Identify and support interventions that enhance access to digital financial services for underserved populations, including women and low-income communities.
Improve the Efficiency of Agent Networks: Develop strategies to optimize the performance of agent networks, ensuring reliable and cost-effective financial service delivery.
Analyze Vendor Incentives and Behavior: Understand the motivations, challenges, and business models of digital finance vendors to improve their engagement and sustainability.
Address Structural Constraints in DFS Networks: Investigate regulatory, financial, and operational barriers that limit the growth and effectiveness of DFS retail distribution.
Evaluate Policy and Regulatory Impact: Assess how policies and institutional frameworks influence DFS adoption, agent density, and financial inclusion outcomes.
Foster Collaboration Between Stakeholders: Strengthen partnerships between researchers, policymakers, and financial service providers to develop and implement impactful DFS solutions.
Support High-Quality, Scalable Research: Fund and promote rigorous studies that generate actionable insights and contribute to global knowledge on digital financial ecosystems.