This article was written by Corinne Riquet Senior Financial Sector Specialist and  Eric Duflos, Senior Financial Sector Specialist. The original article was published by CGAP. You can find the article here. 

For several years, CGAP has worked in the WAEMU region to step up consumer protection for digital finance users through its WAEMU Lab. The three focus countries (Côte d’Ivoire, Senegal, and Burkina Faso) have prototyped several elements of CGAP’s Responsible Digital Finance Ecosystem (RDFE) conceptual framework – including a national survey of the risks faced by digital finance users, the elaboration of an action plan to combat risks, and its implementation to ensure that consumers face fewer risks and have better outcomes when they use digital financial services. In 2022, along with the Agency for the Promotion of Financial Inclusion (APIF) and the Observatory of the Quality of Financial Services (OQSF), CGAP conducted the first survey of its kind in Côte d’Ivoire to understand the experience, challenges, and risks faced by users of digital financial services (DFS). Against a backdrop of growing adoption of these services, the results showed high levels of users’ exposure to risks and challenges, particularly fraud and lack of transparency. While levels are still high, a 2024 follow-up survey revealed encouraging improvements, with a significant reduction in the risks and challenges to which DFS users are exposed in Côte d’Ivoire.

To better understand what is behind the progress accomplished, CGAP conducted several interviews with leading actors in the Ivorian ecosystem – three main lessons stood out.

1. Getting comprehensive consumer data at the national level is essential to measure risk exposure and help authorities develop action plans to address it

For the first time, the 2022 baseline survey provided all stakeholders in the Ivorian DFS ecosystem with national data and an accurate, highly detailed picture of the risks and challenges associated with the use of DFS in their market. Among other things, the data was based on a sample that is representative of the users at a national level and could also be disaggregated by gender and education or income level. Ecosystem stakeholders already had information available via field feedback and their own surveys, but these did not always cover all the areas of risk highlighted by the survey. This detailed data enabled national authorities, providers, and consumer associations to guide their decision-making and actions to support the adoption of DFS safely, with positive results for consumers. Three major consumer risks that became apparent in the first survey were high levels of fraud, the lack of transparency of digital financial services, and difficulties making transactions due to network problems.

The collective analysis of this data has helped national authorities and other ecosystem actors to develop action plans that address the main risks and challenges identified.

When the survey results were presented, all the digital finance ecosystem stakeholders were able to internalize the data together. This was probably the first time they were in the same room together. It initiated a unique process that helped them better understand the consumers’ realities and reach a consensus on the most important risks and challenges to be addressed and thus identify the main actions to be implemented. This process was then rapidly translated into an action plan drawn up by the national authorities. This action plan, realistic and focused on the short term, also fed into the action plan for implementing the existing national financial inclusion strategy and the annual work programs of the national authorities. There was a focus on reducing fraud exposure through consumer education and awareness-raising actions.

2. Survey data enables DFS providers to refine their understanding of the situation and, in some cases, influence their actions

The results of the initial survey complemented what data providers already had available internally. It enabled them not only to reinforce the actions already undertaken but also to start new initiatives to improve customers’ experience and reduce their risk exposure.

“These data help to strengthen our analysis system, so that we can gain a better understanding of our customers and their expectations, and to open up new work paths and improve current actions.” Interview with Valérie Gossan, Compliance Officer at Orange Mobile Money in Côte d’Ivoire 

Over the past two years, all providers have placed particular emphasis on the fight against fraud and scams, with positive results. For example, the percentage of users who have lost money because of a fraud or scam has been reduced by 64%.

Mobile money providers, such as MTN and Orange, have improved cost transparency for the services they offer, with much more clarity on the transaction costs for consumers. As a result, in 2024, only 6% of users said they had no information on costs before carrying out their transactions, compared to 33% in 2022.

Based on consumer complaints, the telecoms regulator has made it a priority to improve the quality of the GSM network. This has resulted in more stringent injunctions to mobile operators to improve the network, as well as the adoption of a new approach to fines, the proceeds of which are now to be ploughed back into improving service quality.

Providers have also improved complaints handling, whether by implementing more efficient operational procedures, increasing the number of channels through which customers can contact the service provider, or improving call center waiting times. The impact of these actions has led to a very significant increase in the percentage of people who have contacted service providers when experiencing difficulties. This percentage has more than doubled in two years.

On the other hand, the fierce competition has led to lower pricing and, consequently, lower commissions paid to agents. This trend has resulted in new or exacerbated risks when dealing with agents. In 2024, 54% of users had to deal with a request for additional fees from agents at least once in the last 12 months, compared with 8% in 2022, and 37% had been refused a small deposit or withdrawal. This difficulty was not mentioned in 2022.

Furthermore, in 2024, agents provided less assistance to customers than in 2022 in all areas, justified by the drop in certain risks but not for all. For example, in 2022, 60% of DFS users claimed to receive warnings from agents about cases of fraud and scams, whereas in 2024 only 33% did so, despite a slight reduction in attempts.

3. It is critical that stakeholders agree to conduct such surveys on a regular basis and integrate the results into a new set of actions

Gathered at a workshop to discuss the results of the follow-up survey and evolutions since 2022, ecosystem stakeholders agreed on a number of actions to address the most critical risks and challenges to DFS adoption in Côte d’Ivoire. Priorities included continuing the fight against fraud and scams through new collaborations facilitated by the OQSF. Providers also committed to strengthening agent training so that they can better assist customers, in parallel with exploring the introduction of incentive bonuses. Digital credit providers and authorities agreed that they should strengthen the fight against illegal digital credit offers with providers. At the same time, they plan to improve the design of their products and transparency to better meet the needs of customers. This improvement could reverse the DFS adoption decline between 2022 and 2024. Finally, authorities also committed to further including women in digital finance as they only represent 31% of DFS users.

The experience of consumers using DFS in Côte d’Ivoire requires continued attention. Nevertheless, the results of this second survey combined with the commitment of key actors to continue to work towards more responsible digital financial services and measure progress are highly encouraging. This experience and the lessons learned are key for future implementation of the RDFE, notably for our upcoming pilots in Rwanda and Peru and for other countries as they work to make their own ecosystems more responsible.