Digitization of financial resources useful for Africa and the Middle East in 2025 (study)



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Posted on
15.11.2018 at 20:18
jo
APA

According to a study by the well-known Mckinsey company, the digitization of financing will benefit Africa and the Middle East by 2025, as it will encourage the integration of 400 million new customers into the financial system, said Thameur Hemden, co-president of the Africa-Mediterranean Partnership Fund for Africa and the Mediterranean (FPAM) "The digitization of financial resources will benefit Africa and the Middle East by 2025, as 400 million people will be newly added to the financial system, with new deposits of US $ 758 billion, and new loans of € 448 billion will be provided to SMEs and individuals. and tax evasion for countries will be $ 20 billion annually, "says Mackinsey study Thameur Hemdane.

The Co-President for Participatory Financing Africa and the Mediterranean (FPAM) participated in the Massive Mass Forum in Africa, focusing on the topic of "Financial Innovation for Development".

Laurent Gonnet, Senior Financial Sector Expert at the World Bank (WB), examined reforms in preparation for increasing the digitization of finance in Africa and the Middle East.

The first reform concerns interoperability, because, according to Mr Gonnet, "someone with the Orange Money account in Senegal must be able to enter into a transaction with someone holding a bank account in Côte d'Ivoire. Thus, regional integration will form and competition will exist between mobile operators and banks ".

For him, this global market will develop the use of electronic money. Therefore, "The Central Bank of West African States (BCEAO) has set a period of 2 years for this interoperability to be a reality," he said.

In addition, Laurent Gonnet spoke of a regulation on means of payment, which urgently needs to be updated to cover the possibilities of digitization. According to this leading global financial sector at the World Bank, the banking intermediary regime is "probably at the center of a small banking revolution."


Indeed, he said that there are phenomenal expansion of mobile network operators, such as Orange and Tigo, based on distributors in order to flood the financial market.

A ban on conventional banks using this mode of business can soon be a thing of the past. "Banks have only one option: opening an agency, offering them the opportunity to recruit agents who could play the role of a distributor of products. The World Bank and the Central Bank are currently working in the banking intermediary regime," said Gonnet.

A World Bank expert said in his analysis that "the digital system in the banking sector will be bigger, but banks in this area are not yet equipped to reach the masses by opening low-cost accounts in remote areas".

In order to take advantage of digitization, Laurent Gonnet encourages the banks to explore the "success story of an interesting Banco Postal (Angola) that has benefited from a new regulatory regime for distributing agents instead of affiliates."

They also spoke about Fintech (financial company). For their appearance on the continent, Laurent Gonnet hopes that "within 6 months or even 1 year, the agreement on the Fintech regulatory framework" will see the day.

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