Pavle Avramovic (Principal Researcher), Sanya Juneja (Principal Researcher), Yue Wu, Krishnamurthy Suresh, and Bryan Zhang.
This inaugural report examines how the convergence of digital public infrastructure (DPI) and digital financial services (DFS) is transforming the financial services sector worldwide. It explores the convergence through the lens of regulatory authorities’ perspective, focusing on how core DPI components – digital identity, real-time payments and consent-based data sharing frameworks – could impact regulatory objectives such as financial inclusion, market integrity, competition and financial stability.
Produced by the Cambridge Centre for Alternative Finance (CCAF) with the support of the UK Foreign, Commonwealth & Development Office (FCDO), this report offers vital insights for regulators, policymakers and other ecosystem actors seeking to understand the implications of DPI adoption and integration into financial markets.
Highlights from the report
1
DPI integration is reshaping financial services
Digital identity, real-time payments and consent-based data sharing are increasingly embedded in DFS, enhancing efficiency, reducing costs and expanding financial inclusion. With 113 jurisdictions adopting at least one DPI component and 56 implementing all 3, the convergence marks a global shift, but it also introduces new challenges in governance, security and interoperability.
2
Global expansion, local differences
DPI is being adopted worldwide, but its definition and implementation vary widely. A clear taxonomy of digital identity, payments and data sharing is essential to support aligned policymaking, promote interoperability and enable the scalable development of inclusive digital ecosystems.
3
Greater DPI maturity tends to coincide with better financial outcomes
Jurisdictions with all 3 DPI components see higher financial inclusion: card ownership jumps from 25% to 77%, digital payments from 45% to 83%, and documentation barriers to account ownership fall sharply. DPI maturity also appears to be linked to improved access to credit, government transfers and emergency financial resilience.
4
No one-size-fits-all, multiple models can succeed
Global case studies show varied but effective DPI implementation strategies. India’s public-private UPI model and Brazil’s regulator-led Pix both demonstrate how co-ordinated approaches, whether government- or industry-driven, can drive inclusion, innovation and trust in financial systems.
5
New technologies bring new risks and rewards
Innovations such as AI, tokenisation and digital wallets promise greater efficiency through automation and programmability, but they also raise significant concerns around data privacy, market concentration and systemic risk, making proactive and co-ordinated regulation more important than ever.
6
Governance must evolve for cross-sector co-ordination
DPI spans multiple regulatory domains, creating risks of fragmentation. National co-ordination bodies, cross-border forums and public-private partnerships are emerging as vital tools to balance privacy, competition and security in an increasingly integrated financial ecosystem.
7
Public-private partnerships are foundational to DPI success
Fintechs and platform providers are not just users but key co-creators of DPI components like digital identity and data sharing. Collaborative design, innovation and implementation between governments and industry can lower barriers, enhance interoperability and accelerate inclusive service delivery at scale.
This report provides a foundational resource for designing policies, governance frameworks and regulatory approaches that foster innovation, security and inclusion in the evolving landscape of DPI in financial services.