Regulating Digital Financial Services Agents in Developing Countries to Promote Financial Inclusion

(2015) Singapore Journal of Legal Studies, 26-45

UNSW Law Research Paper No. 17-27

19 Pages Posted: 26 May 2017

See all articles by Evan Gibson

Evan Gibson

The University of Hong Kong - Asian Institute of International Financial Law

Federico Lupo-Pasini

Durham Law School

Ross P. Buckley

University of New South Wales (UNSW) - Faculty of Law

Date Written: January 1, 2015

Abstract

Limited access to bank branches excludes over one billion people from accessing financial services in developing countries. Digital financial services offered by banks and mobile money providers through agents can solve this problem without the need for complex and costly physical banking infrastructures. Delivering digital financial services through agents requires a legal framework to regulate liability. This article analyses whether vicarious liability of the principal is a more efficient regulatory approach than personal liability of the agent. Agent liability in Kenya, Fiji, and Malawi is analysed to demonstrate that vicarious liability of the principal, coupled to an explicit agreement as to agent rewards and penalties, is the more efficient regulatory approach.

Keywords: Banking, financial services, developing countries, digital financial services, liability, vicarious liability, personal liability, agent liability, Kenya, Fiji, Malawi

Suggested Citation

Gibson, Evan and Lupo-Pasini, Federico and Buckley, Ross P., Regulating Digital Financial Services Agents in Developing Countries to Promote Financial Inclusion (January 1, 2015). (2015) Singapore Journal of Legal Studies, 26-45; UNSW Law Research Paper No. 17-27. Available at SSRN: https://ssrn.com/abstract=2973806 or http://dx.doi.org/10.2139/ssrn.2973806

Evan Gibson

The University of Hong Kong - Asian Institute of International Financial Law ( email )

Faculty of Law, Pokfulam Road
Pokfulam
Hong Kong
Hong Kong

Federico Lupo-Pasini

Durham Law School ( email )

50 North Bailey
Palatine Centre
Durham, County Durham DH1 3ET
United Kingdom

Ross P. Buckley (Contact Author)

University of New South Wales (UNSW) - Faculty of Law ( email )

Sydney, New South Wales 2052
Australia

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