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



Posted on
November 15th, 2018 at 20:18
as per
APA

According to a study by the famous Mckinsei company, the digitization of finance will benefit from Africa and the Middle East by 2025, as it will promote the inclusion of 400 million new clients in the financial system, said on Thursday in Tacuma, Tameur Hemden, Co-Chair for Participatory Financing of Africa and the Mediterranean (FPAM) "Digitalization of finance will benefit from Africa and the Middle East by 2025, while 400 million people will be involved in the financial system, with deposits of US $ 758 billion, 448 billion dollars of new loans be provided for small and medium-sized enterprises and individuals. The reduction of public spending and tax evasion in the country will be 20 billion dollars a year, "says a study by Mckinseiova said Thameur Hampden.

Co-chairing for African and Mediterranean Participatory Financing (FPAM) participated in the Africa Finance Forum focusing on "Financial Innovation for Development".

For his part, Laurent Gonnet, Senior Financial Sector Expert at the World Bank (VB), reviewed reforms to increase the digitization of finance in Africa and the Middle East.

The first reform concerns interoperability, because according to Mr. Gonnet, "someone with the Orange Monei order in Senegal must be able to make a transaction with someone with a bank account in Côte d'Ivoire." So, regional integration will be established and competition will exist between mobile operators and banks. "

For him, this global market will develop the use of electronic money. That is why "the Central Bank of the West African States (BCEAO) has set a two-year horizon because this interoperability is a reality," he said.

In addition, Laurent Gonnet spoke about the payment method that is urgently updated to capture the opportunities provided by digitization. In the opinion of this leading specialist in the financial sector in the World Bank, the bank brokerage regime "is likely to be at the heart of a small banking revolution."


Indeed, he said, there is a phenomenal expansion of mobile network operators like Orange and Tigo on the basis of distribution agents to flood the financial market.

Banning conventional banks using this method may soon be a thing of the past. "Banks have only one option: opening up an agency, and we want to offer them the opportunity to recruit agents who could play the role of a product distributor." The World Bank and the Central Bank are currently working on a bank brokerage regime, "Gonnet said.

In his analysis, a World Bank expert argued that "digital data in the banking sector will be larger, but banks are not yet equipped in this area to reach masses by opening inexpensive bills in remote areas."

Therefore, in order to utilize digitization, Laurent Gonnet encourages banks to study "a successful story of an interesting Banco Postal (Angola) that used the new regulatory regime to have distribution agents instead of a branch office."

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


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