Authorities should recognize and adapt to the transformative impact of technological advancements—such as cloud computing, data aggregation tools, and digital delivery platforms—which have significantly lowered the cost of reaching customers without the need for physical branches or extensive IT infrastructure. To foster competition-led financial inclusion, regulatory frameworks could be updated to accommodate new market entrants that leverage these technologies. These entrants often operate by disaggregating the traditional banking value chain, focusing on specialized functions such as customer-facing applications or back-office services (eg credit scoring or loan servicing), rather than replicating the full-service banking model. Financial supply chain disaggregation can enhance efficiency and expand access, thus improving consumer outcomes in DFS.
