Development of a global policy model for digital identity and e-KYC

• Aug 14, 2025
• 1 min

Many financial institutions in developing economies continue to face challenges in the implementation of digital identity and electronic know-your-customer (e-KYC) frameworks. These challenges stem from the absence of standardized, practical guidance that blends global best practices with local realities. While we find proven approaches across jurisdictions, they are often fragmented and not tailored for replication or scale. Bridging this gap requires structured, evidence-based policy models that support country-specific implementation.

MSC supported the Alliance for Financial Inclusion (AFI) in designing a global policy model to address this need. We began by developing a research and survey framework to assess the status of digital ID and e-KYC across AFI member institutions. This was followed by in-depth stakeholder interviews and focus group discussions with selected members and external experts. Insights from this process shaped the development of a policy model that codifies successful practices, policy lessons, and implementation strategies. The draft underwent a consultative review process with AFI members and was formally endorsed by the membership council.

The final model provides a standardized yet flexible framework for countries to guide the implementation of digital ID and e-KYC systems. MSC presented the draft to central banks and financial regulators through AFI-led workshops, where expert feedback further strengthened the document. Published in September 2021, the policy model now serves as a strategic reference across the AFI network. The AFI also supports its members through targeted capacity-building initiatives to drive adoption and implementation.

The Alliance for Financial Inclusion (AFI) commissioned the project.