1 / 8

M-BANKING & REGIONAL FINANCIAL INTEGRATION IN EAST AFRICA

M-BANKING & REGIONAL FINANCIAL INTEGRATION IN EAST AFRICA. David Porteous Making Finance Work for Africa Nairobi 4-5 March 2007. Finland ($37 460). Philippines ($1300). South Africa ($4 960). India ($720). Kenya ($530). 1. The promise of m-banking. 97%. 97%.

Antony
Download Presentation

M-BANKING & REGIONAL FINANCIAL INTEGRATION IN EAST AFRICA

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. M-BANKING & REGIONAL FINANCIAL INTEGRATION IN EAST AFRICA David Porteous Making Finance Work for Africa Nairobi 4-5 March 2007

  2. Finland ($37 460) Philippines ($1300) South Africa ($4 960) India ($720) Kenya ($530) 1. The promise of m-banking 97% 97% % mobile phone usage 45% Mobile penetration 2006: Uganda: 5.3% Tanzania: 5.2% But growing at CAGR 60-100% 15% 10% 10% 45% 96% % banked Numbers: GNIpc (Atlas) Current US 2005

  3. 2. Categorizing m-banking approaches • Additive m-banking: • Another channels for banked customers like internet. Becoming common in Nordics, Japan, Korea; but also in many developing countries • Transformational m-banking: • Targets unbanked, based on known needs: • Safe store of value • Cash in and out easily and cheaply • Ability to transfer P2P • Few models emerging in Philippines (G-Cash, SmartMoney), Africa including M-Pesa launched in Kenya 5/03/07

  4. 3. Regional policy and regulatory issues • Common operators • Celtel market integration plans • Regional retail banks • Labour mobility and growth of intra-regional remittances • Social Protection Payments to most vulnerable require transfer mechanism • e.g. Kenya SPP pilot

  5. Specific regulatory issues to address • E-money • Who may issue it? What risks to manage? • 2. Non-bank agents for cash handling • Who may handle cash and on what basis? • Retail payment system interoperability • Who may join and when? • 4. AML/CFT • Should there be exemptions for CDD/ KYC on low value accounts and provision for remote opening?

  6. Towards an enabling environment for m-banking Kenya’s recent move 2. Low certainty; High Openness 1. High certainty; High Openness Openness 4. Low certainty; Low Openness 3. High certainty; Low Openness Certainty

  7. Conclusions • Challenge: • Rapid scaling possible, even likely, through ‘grey’ and overlapping regulation domains in many countries • Opportunity: • May introduce competitive more retail banking services, even to relatively remote areas • However, it requires coordination and policy focus within country, and across country • What can be learned from the 2 year pilot of M-Pesa in Kenya to date? • M-banking provides a lens through which to focus on how to provide conditions which encourage growth of a competitive, inclusive retail banking sector

  8. Thank you!

More Related