This brief leverages research conducted by the Center for Financial Inclusion (CFI), surveying 4,000 Micro and Small Enterprises (MSEs) located in five metropolises — Delhi, Lagos, Addis Ababa, Jakarta, and São Paulo. The study focused on MSEs with less than ten employees operating in fixed locations, regardless of formality. MSEs of this size, despite their important role and contributions to the economy, tend to fall between the cracks since they are not individuals and often lack the formality, as well as the financial and legal depth of larger businesses.  

The consequence is that consumer protection of MSEs is a topic that continues to be under-researched although it is beginning to emerge as a crucial area to address, especially if we are to enable long-term trust in digital financial services.  Consumer protection challenges faced by MSEs and their owners have seldom been studied together, and this is an early attempt to highlight consumer protection gaps that should be closed. This brief classifies consumer protection challenges into five groups: 

  • Consumer protection and gender
  • Frauds and scams 
  • Consumer recourse and grievance redressal
  • Overindebtedness
  • Consumer protection challenges due to poor connectivity

      Authors

      Jayshree Venkatesan

      Senior Director, Consumer Protection & Strategic Industry Engagement

      As Senior Director, Consumer Protection & Strategic Industry Engagement, Jayshree leads the development and execution of the consumer protection research and influence strategy, contributing to CFI’s global portfolio. She also oversees the Responsible Finance Forum’s convening and influence model, building a community dedicated to addressing industry challenges in consumer protection and advancing the responsible finance agenda. 

      With two decades of experience spanning structured finance, innovative business models, consumer research, and policy influence, Jayshree has worked to advance financial inclusion and economic development globally. Before joining CFI, she spent nearly a decade as an independent consultant with institutions like CGAP, the World Bank, JICA, and ITAD, focusing on customer-centric business models and challenges faced by low-income consumers in accessing and using formal financial services. From 2009-2013, she was part of the founding team at IFMR (now Dvara Trust) in India where she led India’s first mezzanine fund for microfinance, which evolved into an alternate investment fund. Jayshree is also a senior policy fellow at the Leir Institute within the Fletcher School of Law and Diplomacy and has served as adjunct faculty at the Fletcher School of Law and Diplomacy, teaching decision analysis for business. 

      Jayshree is a recipient of the Chevening fellowship for leadership from the Foreign and Commonwealth Office, UK and completed the program at Kings College, London. She earned an MA in international relations from the Fletcher School of Law and Diplomacy, an MBA from Management Development Institute in Gurgaon, and an undergraduate degree in mathematics from Mumbai University. 

      Colin Rice

      Senior Research Specialist

      Colin joins CFI as a research specialist with a background in project design, monitoring and evaluation, and social performance management. He supports research projects as well as the implementation of data collection, management, review, and presentation; drafting blog posts and reports; planning events and workshops, among other things.

      Colin previously worked as the social performance manager at Small Enterprise Foundation, the largest MFI in South Africa, where he led a team responsible for gathering and analyzing insights on client progress, satisfaction, and challenges. He also reviewed and developed the organization’s social performance practices, in addition to working on the design, monitoring, and evaluation of financial education and savings projects.

      Prior to that, Colin spent time developing M&E tools for BancoSol in Bolivia, consulted with nonprofits and family philanthropic foundations in the DC area to strengthen internal operations, and was an intern on the Bankers without Borders team at Grameen Foundation.

      Colin has a master’s degree in social enterprise from American University: School of International Service and a bachelor’s degree in anthropology from Sewanee.

      Explore More

      Article

      South Africa’s Inclusion Story: Two Decades of Financial Progress Amid Economic Challenges

      Sign up for updates

      This field is for validation purposes and should be left unchanged.