Distribution of financial services is a key constraint to extending financial services to low-income markets. Traditional networks are often costly, cumbersome and intimidating for low-income clients to use.

As result much attention is currently placed on the development of new technologies (e.g. mobile phones) and business models (e.g. branchless banking) and creating the regulatory space for these models to develop. This will benefit not only the extension of banking networks but also the distribution of all other non-bank financial services. Cenfri sees this as a key focus area in support of financial inclusion.

Some of Cenfri's work in this area include:

• During 2007 Cenfri staff participated in country policy and regulatory diagnostics undertaken by CGAP to understand the policy and regulatory environment for branchless banking. This work is part of the CGAP Technology Program’s broader initiative to pioneer new uses of technology to bank the unbanked poor. Hennie Bester led the diagnostic teams in Brazil, the Philippines and South Africa. Louis de Koker provided AML/CFT expertise on this project.
• The work of Cenfri staff in the area of AML/CFT has also sought to support the utilisation of new models and technologies. Cenfri is currently providing AML/CFT expertise in relation to mobile phone banking, development of a regulatory system to support transformation mobile phone banking in the Maldives. Cenfri staff also led a project to design a set of tools or guidelines to facilitate the implementation of FATF Recommendations in developing countries without impacting unduly on access to financial services. The project involved a cross-country analysis of conditions in Indonesia, Kenya, Mexico, Pakistan and South Africa. One of the specific considerations was to ensure that AML/CFT regulation does not unecessarily impede the utilisation of new models and technology.