Africa has made giant strides in FinTech development and regulation – Addison



Advertisement


Governor
of
the
Bank
of
Ghana
(BoG),
Dr
Ernest
Addison
has
said
that
Africa
has
made
giant
strides
in
FinTech
development
and
regulation,
particularly
with
its
leadership
role
in
the
mobile
money
technology
space.

Therefore,
he
said,
the
concept
of
interoperable
mobile
money
systems
holds
an
enormous
potential
towards
the
establishment
of
comprehensive
cross-border
payment
interoperability
in
the
short-medium
term.

Dr
Addison
explained
that
an
efficient
cross-border
payment
interoperability
system
can
deliver
seamless
payments
between
buyers
and
sellers
across
African
countries,
as
well
as
provide
extensive
inclusivity
in
expanding
access
to
payment
and
financial
services
for
the
youth,
vulnerable
groups,
and
striving
entrepreneurs.

This
notwithstanding,
he
said,
achieving
cross-border
interoperable
mobile
money
systems
would
require
harmonised
regulatory
frameworks,
consistent
technical
standards,
and
robust
infrastructure.

In
addition,
Dr
Addison
said,
strong
public
private
partnerships,
involving
mobile
network
operators,
financial
institutions,
FinTechs,
and
regulators
would
address
technical
challenges
and
ensure
regulatory
compliance.

Other
strategies
that
would
ensure
the
adoption
and
long-term
system
reliability
of
cross-border
payment
interoperability
include
customer
education
and
trust,
scalability,
and
system
sustainability,
as
well
as
inclusive
access,
which
is
essential
for
all
segments
of
society,
including
rural
and
underserved
populations.

“Policy
coordination
and
governance
are
also
essential
for
smooth
operation
and
compliance
in
a
multi-country
environment.
By
implementing
these
strategies,
African
countries
can
facilitate
efficient
cross-border
transactions
and
promote
financial
inclusion
to
stimulate
economic
growth.

“On
a
more
positive
note,
the
foundational
elements
necessary
to
implement
this
idea
of
cross-border
payment
interoperability
are
partly
in
place
in
some
African
countries.
These
include
regulatory
sandbox
programmes,
progressive
regulatory
frameworks,
and
a
dynamic
FinTech
sector,
eager
for
growth
opportunities.
However,
what
may
be
lacking
is
collaboration
among
stakeholders,”
Dr
Addison
said
during
the
Africa
Prosperity
Network
(APN)
2024
symposium
on
retail
payment
interoperability,
in
Accra
on
Friday,
July
5.

He
further
stated
that
effective
collaboration
between
regulators,
financial
institutions,
mobile
money
operators,
FinTech
innovators,
and
other
stakeholders
is
crucial
to
address
technical
challenges,
ensure
regulatory
compliance,
build
trust,
and
drive
the
scalability
and
sustainability
of
cross-border
mobile
money
and
other
interoperability
initiatives.

By
fostering
a
collaborative
ecosystem,
Africa
can
harness
its
FinTech
advancements
to
unleash
the
full
potential
of
interoperable
mobile
money
systems,
benefiting
both
individuals
and
countries
across
the
continent.

“On
this
note,
I
would
like
to
extend
my
sincere
thanks
to
the
organisers
of
this
symposium
for
their
dedication
towards
the
launch
of
this
initiative.
Your
commitment
to
foster
collaboration
and
innovation
in
this
crucial
area
is
commendable.

“Permit
me
to
also
add
that
the
initiative
to
scale
up
cross
border
payment
interoperability
aligns
with
the
broader
financial
sector
digitisation
and
inclusion
agenda
of
the
Bank
of
Ghana.
It
is
therefore
our
hope
that
other
central
banks
on
the
continent
will
join
in
and
contribute
to
its
realisation,”
Dr
Addison
said.