A Consumer-centric Approach To Digital Public Infrastructure For Sustainable Financial Inclusion

Governments increasingly recognize the value of digital public infrastructure (DPI) in promoting sovereign societies and empowering individuals through the democratization of financial services. This paper expands on existing G20 recommendations for consumer protection in the context of DPI, and builds on research conducted by the Center for Technology and Society at FGV, the United Nations University EGOV Unit, Consumers International, and the Brazilian Institute for Consumers Protection (IDEC), to offer a critical approach to DPI with specific regard to its impact on financial inclusion and consumer welfare. The paper is aimed at policymakers, financial regulators, private financial and 1T companies, as well as academics, civil society and consumer rights advocates. It will have a threefold structure, as follows: The first part will describe the evolution of financial DPI and its impact on consumers in the context of three concrete case studies: the Brazilian Pix, the Indian UPI, and the Chinese e-CNY. The second part will draw from the case studies to identify best practices in DPI with regards to data governance and interoperability, transparency, anti-discrimination, cybersecurity, and data protection. Further, we discuss the importance of these elements to ensuring sustainable DPL. Lastly, we will offer actionable and evidence-based recommendations that should be adopted by governments to ensure safe and inclusive DPI. In particular, we will discuss the regulation of financial services, the prioritization of public infrastructure, the importance of meaningful internet connectivity, as well as digital and financial literacy policies.