1) The document discusses agent banking and digital financial services in Zimbabwe, noting their potential to increase access to financial services.
2) It outlines Zimbabwe's National Financial Inclusion Strategy to increase access to affordable financial services to 90% of the population by 2020.
3) The Reserve Bank of Zimbabwe regulates digital financial services and agent banking, which have grown significantly in recent years and now include over 3,000 agent banking outlets and 39,000 mobile payment agents.
Technical Report of ITU-T Focus Group on Digital Financial Services :
The Digital Financial Services Ecosystem
written by the following authors, contributors and reviewers:
Carol Coye Benson, Charles Niehaus, Mina Mashayekhi, Nils Clotteau, Trevor Zimmer, Bruno Antunes, Yury Grin, Peter Potgieser, Quang Nguyen, Graham Wright, Nathalie Feingold, Ashwini Sathnur, Johan Bosini, Jeremy Leach, Oksana Smirnova, Evgeniy Bondarenko
This Report defines the Digital Financial Services ecosystem and describes the players and their roles within the Ecosystem.
The report recognizes a goal of reaching “digital liquidity” – a state wherein consumers and businesses are content to leave their funds in digital form, therefore reducing the burden of the
“cash-in”, “cash-out” process. Various high-level challenges and issues in the ecosystem are acknowledged in the report
Overview of Digital Financial Services LandscapeJohn Owens
This presentation reviews the digital financial service landscape and is a primer for regulators and policy makers wishing to better understand current market developments.
Key challenges on Digital Financial Services for MFIsSimon Priollaud
101 on Digital Financial services
Key challenges on Digital Financial Services, Mobile Banking, Branchless Banking, Agent Banking
Roadmap to enter the market
Over the last decade, Africa has become a global leader in mobile money with the rate of smartphone adoption at twice the global scale. But what challenges is the industry facing and how can these be overcome? Our new article, sponsored by Mazars, explores.
A new era for Mobile Financial Services in french speaking africaLandry DJIMPE
This document, focusing on french-speaking Africa, shows an overview of regulatory updates on mobile financial services that resulted from a shift in customers' demands from mere P2P to more added-value services like loans, savings, insurance, wealth management, etc. This also brought up a shift in the business model of mobile money service providers, redefining the role of different stakeholders in the value chain : banks, mobile network operators, fintech, MFIs, etc.
Technical Report of ITU-T Focus Group on Digital Financial Services :
The Digital Financial Services Ecosystem
written by the following authors, contributors and reviewers:
Carol Coye Benson, Charles Niehaus, Mina Mashayekhi, Nils Clotteau, Trevor Zimmer, Bruno Antunes, Yury Grin, Peter Potgieser, Quang Nguyen, Graham Wright, Nathalie Feingold, Ashwini Sathnur, Johan Bosini, Jeremy Leach, Oksana Smirnova, Evgeniy Bondarenko
This Report defines the Digital Financial Services ecosystem and describes the players and their roles within the Ecosystem.
The report recognizes a goal of reaching “digital liquidity” – a state wherein consumers and businesses are content to leave their funds in digital form, therefore reducing the burden of the
“cash-in”, “cash-out” process. Various high-level challenges and issues in the ecosystem are acknowledged in the report
Overview of Digital Financial Services LandscapeJohn Owens
This presentation reviews the digital financial service landscape and is a primer for regulators and policy makers wishing to better understand current market developments.
Key challenges on Digital Financial Services for MFIsSimon Priollaud
101 on Digital Financial services
Key challenges on Digital Financial Services, Mobile Banking, Branchless Banking, Agent Banking
Roadmap to enter the market
Over the last decade, Africa has become a global leader in mobile money with the rate of smartphone adoption at twice the global scale. But what challenges is the industry facing and how can these be overcome? Our new article, sponsored by Mazars, explores.
A new era for Mobile Financial Services in french speaking africaLandry DJIMPE
This document, focusing on french-speaking Africa, shows an overview of regulatory updates on mobile financial services that resulted from a shift in customers' demands from mere P2P to more added-value services like loans, savings, insurance, wealth management, etc. This also brought up a shift in the business model of mobile money service providers, redefining the role of different stakeholders in the value chain : banks, mobile network operators, fintech, MFIs, etc.
In 2015, the CGAP-funded Financial Inclusion Insights Survey was conducted in Rwanda by InterMedia. The survey analyzes trends in mobile money usage in the country and highlights opportunities for growth in the industry.
M-PESA is a mobile based transfer of money between customers, facilitated by network of retail agents. Kenya is the first country to have adopted M-PESA where the model witnessed huge success and is contributing big way in enabling financial inclusion in the country. Deployment of M-PESA in India can bring similar benefits as experienced in Kenya. Growing mobile penetration in rural areas would ensure that people are able to benefit from mobile based money transfer concept. Indian regulatory system has also been gearing up to allow technology benefits in enabling financial inclusion, developments are only at introductory stage.
Digital financial services (DFS) are rapidly rewriting the landscape of financial access in developing markets. This deck is meant to serve as a primer to the DFS space by explaining the basic concepts and strengths of DFS models; showing how they are so successful because they correspond to the weaknesses of traditional delivery; and showcasing some of the next generation of DFS products in order to illustrate that this is just the beginning of a cross-sectoral revolution of access.
Experience in Supervising Banks and Non-banks Operating through AgentsCGAP
Agent supervision is still an underdeveloped area in the majority of countries with the exception of a few countries that have created comprehensive and detailed supervisory frameworks, encompassing all phases, from licensing to monitoring, from inspections to enforcement.
The majority of countries have not yet fully developed their supervisory procedures to identify and mitigate agent risks, acting on a more reactive and ad-hoc basis.
The approach in supervising agents varies considerably depending on the overall approach taken by supervisors (with some being more intrusive and some more lax in supervising the financial sector)
In the countries where nonbanks (e.g. mobile money providers) have extensive agent networks (e.g. Tanzania), there is disparity in the approach to supervising bank-based vs. nonbank-based agents
Global Landscape Study on P2G Payments: Summary of in-country consumer resear...CGAP
For this study on P2G (Person-to-government) payments, Rwanda was selected as a focus country given the potential reach and varied nature of two key initiatives: the IREMBO e-government platform and the Tap&Go smartcard for public bus transport. Digital payments for school fees and utility payments were also studied. Tap&Go is privately managed but offers P2G learnings for other countries where public transport is government-run.
The research sought to answer questions across three key areas:
1. How well did digital P2G payment solutions reach and address the needs of the financially excluded?
2. What were effective and sustainable business models between actors, and how were they set up?
3. How do current and planned solutions support and work with the evolving digital payments ecosystem in Rwanda?
Digital Financial Services for Financial InclusionJohn Owens
This presentation highlights some of the digital financial service trends, policy and regulatory issues and examples of digital financial services and the role it plays in financial inclusion in various countries in the Asia Pacific region.
This was the opening session of the panel on digital financial services and financial inclusion during the Asia Pacific Regional Forum on Universal Access and Services and Broadband Deployment 2015 in Bangkok, Thailand.
2 billion people globally have no bank account, but 1 billion of them have a mobile phone. Markets for digital financial services are expanding worldwide.
The rise of digital financial inclusion is an important global phenomenon. Today, financial services is probably the most digitized industry, as well as the most globalized, in addition to being for at least the past two decades the single largest component of global technology spending. Financial Inclusion is a relatively new socio-economic concept in India that aims to change the position where a majority of the country’s population is unbanked. Developing country governments are exploring ways to encourage their populations to use the four key instruments of financial inclusion: payment system, credit, insurance, and investment. By creating such an ecosystem, they can help expand access to affordable financial services to the financially excluded. The emergence of new digital technology, including Fintech, can ensure financial inclusion and improve financial well-being.
The Democratic Republic of the Congo offers huge market potential for technology start-ups. The political environment supports entrepreneurship and digital services. The aim of the National Digital Plan is to drive market and improve infrastructure to surge opportunities for financial inclusion.
In 2015, the CGAP-funded Financial Inclusion Insights Survey was conducted in Rwanda by InterMedia. The survey analyzes trends in mobile money usage in the country and highlights opportunities for growth in the industry.
M-PESA is a mobile based transfer of money between customers, facilitated by network of retail agents. Kenya is the first country to have adopted M-PESA where the model witnessed huge success and is contributing big way in enabling financial inclusion in the country. Deployment of M-PESA in India can bring similar benefits as experienced in Kenya. Growing mobile penetration in rural areas would ensure that people are able to benefit from mobile based money transfer concept. Indian regulatory system has also been gearing up to allow technology benefits in enabling financial inclusion, developments are only at introductory stage.
Digital financial services (DFS) are rapidly rewriting the landscape of financial access in developing markets. This deck is meant to serve as a primer to the DFS space by explaining the basic concepts and strengths of DFS models; showing how they are so successful because they correspond to the weaknesses of traditional delivery; and showcasing some of the next generation of DFS products in order to illustrate that this is just the beginning of a cross-sectoral revolution of access.
Experience in Supervising Banks and Non-banks Operating through AgentsCGAP
Agent supervision is still an underdeveloped area in the majority of countries with the exception of a few countries that have created comprehensive and detailed supervisory frameworks, encompassing all phases, from licensing to monitoring, from inspections to enforcement.
The majority of countries have not yet fully developed their supervisory procedures to identify and mitigate agent risks, acting on a more reactive and ad-hoc basis.
The approach in supervising agents varies considerably depending on the overall approach taken by supervisors (with some being more intrusive and some more lax in supervising the financial sector)
In the countries where nonbanks (e.g. mobile money providers) have extensive agent networks (e.g. Tanzania), there is disparity in the approach to supervising bank-based vs. nonbank-based agents
Global Landscape Study on P2G Payments: Summary of in-country consumer resear...CGAP
For this study on P2G (Person-to-government) payments, Rwanda was selected as a focus country given the potential reach and varied nature of two key initiatives: the IREMBO e-government platform and the Tap&Go smartcard for public bus transport. Digital payments for school fees and utility payments were also studied. Tap&Go is privately managed but offers P2G learnings for other countries where public transport is government-run.
The research sought to answer questions across three key areas:
1. How well did digital P2G payment solutions reach and address the needs of the financially excluded?
2. What were effective and sustainable business models between actors, and how were they set up?
3. How do current and planned solutions support and work with the evolving digital payments ecosystem in Rwanda?
Digital Financial Services for Financial InclusionJohn Owens
This presentation highlights some of the digital financial service trends, policy and regulatory issues and examples of digital financial services and the role it plays in financial inclusion in various countries in the Asia Pacific region.
This was the opening session of the panel on digital financial services and financial inclusion during the Asia Pacific Regional Forum on Universal Access and Services and Broadband Deployment 2015 in Bangkok, Thailand.
2 billion people globally have no bank account, but 1 billion of them have a mobile phone. Markets for digital financial services are expanding worldwide.
The rise of digital financial inclusion is an important global phenomenon. Today, financial services is probably the most digitized industry, as well as the most globalized, in addition to being for at least the past two decades the single largest component of global technology spending. Financial Inclusion is a relatively new socio-economic concept in India that aims to change the position where a majority of the country’s population is unbanked. Developing country governments are exploring ways to encourage their populations to use the four key instruments of financial inclusion: payment system, credit, insurance, and investment. By creating such an ecosystem, they can help expand access to affordable financial services to the financially excluded. The emergence of new digital technology, including Fintech, can ensure financial inclusion and improve financial well-being.
The Democratic Republic of the Congo offers huge market potential for technology start-ups. The political environment supports entrepreneurship and digital services. The aim of the National Digital Plan is to drive market and improve infrastructure to surge opportunities for financial inclusion.
Role of Technology in driving Financial Inclusion 2016 - Part - 5Resurgent India
The banking sector has made rapid strides largely because of the rapid advancement of technology. Automated teller machines, internet and mobile banking, payment wallets, and other advancements have made significant improvements to consumer experience and have also helped banks widen their reach.
Fintech in Ukraine 2018 (English language)UNIT.City
Introducing you the first market map of FinTech Industry in Ukraine, powered by USAID Financial Sector Transformation Project and UNIT.City.
Foreign partners, potential investors, banks often ask us about the state of any part finteсh industry of Ukraine.
Today, we present a research that will become a tool for finding partners for Ukrainian and international investors, corporations, R&D centers, journalists, startups and businesses in FinTech.
P.S. If you are creating a fintech business in Ukraine, but did not find your company on the map – write us and we will add it to the next update of this map.
TECHNOLOGICAL ADVANCES IN MICROFINANCE BANKS AND ECONOMIC GROWTH IN NIGERIAIAEME Publication
The study was designed to estimate growth implications of the intermediation activities of microfinance banks in Nigeria. The study covered the period 1992 to 2016. Model estimation was based on the technique of autoregressive distributed lag (ARDL) using data from the Central Bank of Nigeria statistical bulletin. Traditional intermediation functions of microfinance banks (deposit mobilization and credit creation) were adopted as explanatory variables while inflation and asset base were introduced as controlled variables. The result showed that while deposit mobilization significantly enhanced growth, microfinance banks’ loans and advances impeded the growth process.
The African Digital Banking Transformation Report is an initiative by African Banker magazine and Backbase, the leading Engagement Banking Platform, that aims to provide a clear roadmap for digital transformation across the banking sector in Africa. Know more about Digital Banking Report at www.backbase.com
In order to reduce cash handling cost of banks amongst other objectives, the Central Bank of Nigeria introduced the ‘cashless policy’. The success of this policy hinges on the adoption of alternative payment systems one of which is mobile banking. Thus it is imperative for policy makers and other relevant stakeholders to anticipate and deal with inhibitions surrounding the adoption of mobile banking by bank customers in the country. This study investigates the determinants of mobile banking adoption in Nigeria using a modified version of Technology Acceptance Model (TAM). This incorporates Perceived Risk, Facilitating Conditions and Demographic Characteristics (Age, Gender, Educational Qualification and Income) to Perceived Usefulness and Perceived Ease-of-Use as determinants of Mobile Banking Adoption. We also propose that this relationship is mediated by attitude towards mobile banking adoption. A total of 250 bank customers from the Lagos area were selected and a structured questionnaire was designed and copies distributed to them. Data was analysed using multiple regression and computed using SPSS 20.0 computer application. Results show that Perceived Usefulness, Perceived Ease-of-Use, perceived Risk, Facilitating Conditions, Age, Educational Qualifications and Income significantly determine Mobile Banking Adoption. However, the relationship between gender and Mobile Banking Adoption is not significant. The outcome of this study has some implications to m-banking policy formulation and implementation. It also throws more light into what should be done to improve mbanking adoption rate in Nigeria
South Africa: A Digital Innovation Hub for Financial ServicesSeymourSloan
South Africa is fast becoming one of the leading digital players in financial services along with Kenya and Tanzania. This piece explores how they have succeeded where others have stalled.
RBZ GOVERNORS SPEECH - 2016 - AGENT BANKING AND DIGITAL FINANCIAL SERVICES
1. Key Note Address
By
Reserve Bank of Zimbabwe
At the Agent Banking and Digital Financial Service
Conference 2016
Theme ‘‘Leveraging Technology to Achieve Socio-
Economic Transformation’’
Hosted by Mtilikwe Financial Services
14 July 2016
2. Page 2 of 10
Distinguished Guests,
Ladies and Gentlemen,
Let me start by thanking Mtilikwe Financial Services for
organising this conference and secondly for inviting the
Reserve Bank to speak on this occasion.
It is indeed an honour and great privilege for me to speak at this event on
“Agent Banking and Digital Financial Services Conference 2016”
especially during this time when Technology is taking over or has taken
over.
1. Essentially, digital financial services and new technologies offer
great potential to overcome massive developmental challenges and
make significant contributions towards achieving universal access
to financial services in the country. With easy access to financial
services comes development and economic growth.
2. Agent Banking refers to the provision of banking services, as
approved by the Central Bank, on behalf of a registered banking
institution under a valid agency agreement. It involves the delivery
of banking services outside traditional bank branches, through
strategic arrangements with existing retail businesses. The brick
and mortar strategy for presence is long gone. In comes technology
(mobile or web-based technologies) and agent banking.
3. Digital Financial Services (DFS) therefore offer fast, easy and
3. Page 3 of 10
convenient access to financial services by permeating the
geographical distance barrier to financial services, and reducing or
doing away with time required to travel to an access point. ACCESS.
What is also critical in all this is the cost of that service.
4. The digital financial services industry in Africa has grown
tremendously in the last few years. Demand for financial services
has been spurred largely by the emerging middle class (Techno-
savvy group), which has tripled over the past 30 years to more than
34% of the continent’s population, according to a 2013 Report on
Financial Inclusion in Africa by the African Development Bank.
5. To this end, domestic, regional and international financial services
groups are re-focusing their efforts to expand the menu of digital
financial services to meet the growing needs of different classes of
consumers. The thrust of Financial Inclusion is now quite topical in
most jurisdictions with most countries now adopting strategies that
involve Inclusive Economic Growth and Development.
6. According to estimates by the AfDB, digital banking in sub-
Saharan Africa is projected to grow by 15% per annum by 2020,
bringing the sector’s contribution to GDP to 19%. (Refer GDP
contributions).
7. Over the last few years, the growth in digital financial services in
Africa has largely been triggered by a boom in mobile technology.
4. Page 4 of 10
In 1998, there were less than 4 million mobile phones on the
continent. By the end of 2015, that figure had risen to 841 million
and is projected to continue growing, establishing Africa as the
second-largest mobile market by connections after Asia, and the
fastest-growing mobile market in the world.
8. In its pursuit to achieve financial inclusion, Zimbabwe launched a
comprehensive National Financial Inclusion Strategy (NFIS)
early this year. The major objectives of NFIS are to increase the
overall level of access to affordable and appropriate formal
financial services within the country to 90% by 2020. It is also
intended to increase the proportion of banked adults from 30% in
2014 to 60% by 2020.
9. The NFIS proposes specific measures and targets that enable
prioritisation of the currently under-served and marginalised
groups. It revolves around four pillars namely: Financial
Innovation, Financial capability, Consumer protection and
microfinance. Financial Innovation intertwined with the Digital
Financial Services.
Agent Banking and DFS Landscape in Zimbabwe
10. The Reserve Bank has, in the past, instituted a number of initiatives
to broaden access to financial services embracing the rapidly
evolving ICT consistent with the ZIM-ASSET, sub-cluster of
Monetary and Financial Reform Measures.
5. Page 5 of 10
11. Zimbabwe has witnessed the agent banking and DFS being
employed as effective tools to bring on board the poor, low-income
households, marginalized demographic groupings such as women,
youth as well as Micro, Small and Medium Enterprises (MSMEs)
through the financial inclusion agenda. 22% of adult population is
financially excluded; 30% of adults are banked: FinScope
Consumer Survey 2014). (Refer Steward Bank using the Ecocash
platform)
12. Increasingly, Agent Banking model is being recognized as efficient
and cost effective delivery channel of financial products and
services. The time for Brick and Mortar presence is gone. And that
model was expensive – imagine the cost of the building/rental;
maintenance, water and rates; insurance; security; CIT; numbers of
workers among other costs. No wonder bank charges in Zimbabwe
remained high - there are too many overheads to be covered.
13. There are currently over 3,000 Agent Banking outlets operational
country-wide and these have increased the proximity of financial
services to clients, particularly those previously unbanked. (Refer
spate of branch closures which took place in the early 2000s -
international banks started consolidating their branch networks).
Most of these branches were inherited/bought by indigenous banks
some whose fate we all know. That meant some areas which
previously had banks were now without any banking services when
the indigenous banks headed west.
6. Page 6 of 10
14. Allow me, Ladies and Gentlemen, to just talk about something
which has been with us for a while but its use was limited to the
main city centres – Use of Cards (Plastic Money). Zimbabweans
like cash transactions and until the advent ofthe cash shortages very
few people used plastic money. The distribution of the
infrastructure which includes POS and network systems as well as
the costs associated with such payment platforms were the major
factors contributing to low usage. The improvement in network
connectivity and power supply has seen an increase in the POS
machines from 3,000 in 2011 to around 18,000 as at the end of June
2016.
15. Mobile payment agents have also grown significantly from 6,900
in 2011 to over 39,000 by end of June 2016. This amply illustrates
the power of the mobile phone in the modern world and how far the
mobile phone can go in enhancing financial inclusion.
16. The Bank will be issuing Agent Banking Guidelines in due course.
The Consumer Protection Guideline is currently at stakeholder
consultation level before it is issued to the market. It is important to
note that innovation and technological advancements always
precede legislation.
17. In addition, the banking sector has since enhanced their delivery
channels through the introduction of digital financial services
related products leveraging on the active mobile and internet
7. Page 7 of 10
penetration rates of 96% and 48% respectively as at 31 December
2015.
18. While banks previously thought the MNOs were encroaching into
their domain, they have since realised that given the current
technological developments, they cannot sit by. They have now
embraced the MNOs and there is a lot of co-operation between the
two sectors. At the end of the day it is the customer who should be
satisfied with the products being offered.
19. In support of the DFS, Zimbabwe over the years has also
modernised its payment, clearing and settlement systems. Both
large value time critical systems (RTGS) and retail systems
including card, mobile and internet banking are already operational.
20. The financial sector players in the country have all adopted use of
modern electronic payments means which have brought
convenience to the transacting public.
21. The glaring examples are the collaboration with non-banking
institutions which include three mobile payment providers
(Ecocash, One Wallet and Telecash) and international (VISA,
MasterCard, Union Pay International) as well as Zimswitch the
local switch.
22. The local statistical data shows that, the payment systems volumes
and values have increased considerably in the recent past. For the
8. Page 8 of 10
year ended 2015, a total of 22 million e-payment transactions
valued at $5.2 billion were processed, a phenomenal increase from
a mere 3 million transactions valued at $367 million in 2010.
The number of cards issued is standing at 2.6 million and continues
to grow.
23. Parallel to that, a total of 228 million mobile payment
transactions valued at $4.6 billion were processed in Zimbabwe
in 2015, an increase from around 400 000 transactions valued at
$1.2 million in the 2010.
RESERVE BANK AS REGULATOR
24. Central banks across the globe, are involved with digital financial
services in three main ways, which are capacity, supervisory and
regulatory roles.
25. Ladies and Gentlemen, the Reserve of Zimbabwe, as the regulator
of the payment systems and the banking sector, continues to
encourage payment system providers and banking institutions to
embrace new technology and put in place necessary risk
management structures to mitigate risks associated with
technology-based products.
26. The Bank continues to shape the regulatory framework in line with
the ever-changing financial services landscape in terms of
technology and related banking products. The major thrust for the
9. Page 9 of 10
Bank is ensuring an inclusive and stable financial sector.
27. The Bank is currently seized with the development of an
Electronic Transactions Guideline which is all-encompassing.
The Bank is working with all key stakeholders including Technical
Assistance from the World Bank to have the guideline ready before
the end of 2016.
28. In this respect, we are co-ordinating and cooperating with other
financial sector regulators and other public authorities for
telecommunication, information technology, consumer protection,
competition, amongst others. The Bank has MOUs with other
regulators and this helps as the new products being launched cut
across regulators. This ensures that there is no regulatory arbitrage.
29. In the digital financial services arena, recent developments have
resulted in the reduction of transacting charges which will enhance
the usage and promotion of a cashless/cashlite society.
CONCLUSION
30. In concluding, Ladies and Gentlemen, the Digital Era is here and if
one does not embrace it, there is a serious risk of being left behind
and left behind for good. Institutions need to continue to be
innovative and come up with products which benefit the consumers.
31. The Central Bank stands ready to provide a supportive regulatory
10. Page 10 of 10
framework which allows for innovation taking cognisance of our
thrust for inclusive growth by ensuring that the unbanked and
under-served populations in the economy are brought into the net.
We also remain focussed on ensuring that the country’s financial
sector remains safe and sound.
32. I am confident that deliberations at this conference will focus on
strategies that will enhance the development of digital financial
services in Zimbabwe.
I Thank you