Home / Central Banks

Fintech, Banks & Regulators: Collaboration is Key!

All revolutions arrive with challenges. As much as the emerging partnerships between legacy banks and fintech firms is changing the way financial services are provided, there is an increasing awareness from consumers that such partnerships are jeopardizing their privacy and data security. Regulatory flexibility has enabled fintech entrepreneurs to grow and prosper quickly. But as much as policymakers recognize the benefits of flexibility for the fintech industry at large, they are also conflicted about how bank-fintech partnerships should be regulated to address new risks which could arise specifically due to partnerships.

From a payments perspective, the central banks relationship with MobiCash should focus on facilitating financial inclusion and access through payment systems. By supporting ad hoc initiatives targeted at financially-excluded population segments:. In a more indirect way, MobiCash sees the financial stability role as its most important contribution to financial inclusion.

This role often requires MobiCash to work on promoting sound and efficient payment systems, improving the functioning of the financial system and protecting consumers and users of financial services.Indeed, MobiCash efforts to safeguard financial stability can potentially contribute significantly to financial inclusion.

A smoothly functioning, efficient and stable financial system is likelier to engage with financially-excluded households or firms than a system where financial instability or stress prevails. The focus areas towards which MobiCash will direct its actions include ensuring the existence of a robust electronic information infrastructure for individuals and business profiles, credit history and collateral; ensuring that consumers are informed and protected; and encouraging the design and development of demand-based solutions,