Why does cybersecurity matter for digital financial services (DFS)? DFS in lower and middle income countries (LMICs) are growing both organically and through USAID assistance and take a few different forms. Public mobile money systems are increasingly popular, in some cases comprising a majority of all transactions. The mobile money platform M-Pesa in Kenya handles as much as 72% of all financial transactions across the country. USAID also uses DFS in its programming, such as with the Vietnam Forests and Deltas activity. Where populations have access to digital platforms, humanitarian aid organizations use DFS to deliver aid during crises and conflict. DFS has revolutionized financial inclusion, improving access to financial services and helping to build sustainable economic infrastructure that benefits the most vulnerable individuals. But these new platforms and services are not without risks. As more data and money move through these systems, they have become highly attractive targets for cyber attacks. Digital financial systems rely on consumer confidence, and thus adequate cybersecurity protections are critical to the continued growth of the DFS sector.
Cybersecurity Sectoral Briefer - Digital Financial Services
Date published: Oct. 17, 2023