New report: Promoting Competition in Digital Financial Services
On 17 June 2026, we launched a report examining how public and financial authorities can foster more competitive digital financial services (DFS) markets and, in turn, support capital formation and economic development in emerging markets and developing economies (EMDEs). This report is a collaborative initiative between the Cambridge Centre for Alternative Finance and Financial Innovation for Impact, with support from the Foreign, Commonwealth & Development Office.
Competition in Digital Financial Services: Regulatory Strategies and Pathways for Emerging Markets and Developing Economies provides a unique contribution towards our collective understanding of how policy and regulatory tools can be leveraged to promote competition in digital financial services (DFS) in emerging market and developing economies (EMDEs).
Our launch event featured a presentation of the report’s key findings, followed by a panel discussion bringing together leading experts from academia, international organisations, and public and financial authorities.
The emergence and growth of new digital financial services providers are reshaping competitive dynamics within financial systems, creating new opportunities for innovation, financial inclusion, and economic growth. Yet the benefits of increased competition do not arise automatically.
In some markets, existing policy and regulatory frameworks do not effectively support the entry and scaling of new players capable of exerting competitive pressure on incumbent financial institutions. In others, new forms of market dominance are emerging around platform power, access to data, and control over key infrastructures necessary to provide digital financial services. In both contexts, competition law enforcement alone is often insufficient to address these challenges.
To support authorities navigating this evolving landscape, the report develops a framework for understanding the main barriers to competition in DFS markets and their implications for capital formation. It further identifies policy and regulatory tools that can help create more competitive, innovative, and efficient digital financial ecosystems.
Drawing on global research, comparative case studies, and insights from public and financial authorities, the report provides practical guidance on how to design effective strategies to promote competition in DFS while balancing broader policy and regulatory objectives.