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How Regulation Influences Innovation of Digital Financial Services: Evaluating the Different Approaches in Our Countries of Operation

How Regulation Influences Innovation of Digital Financial Services: Evaluating the Different Approaches in Our Countries of Operation

In September 2016, member AccessHolding entered into a Partnership Agreement with member Mastercard Foundation to support the A2A Programme with USD 15.5 million over a period of five years. The overall objective of the A2A programme is to strengthen the capacities of the AccessHolding Network Financial Institutions (NFI) with the aim to increase outreach and improve access to financial services that meet client needs more efficiently and profitably. The partnership with Mastercard Foundation has two components: (i) Capacity Building and (ii) Digitalization. Recently, they released a report focusing on the African countries of operation, including Liberia, Madagascar, Nigeria, Rwanda, Tanzania and Zambia. They also generated a body of knowledge that can be shared with the wider stakeholder network. 

The motivation behind this study is to compile research and expert knowledge on the key issues shaping financial innovation as the most powerful tool for remaining competitive as a business and simultaneously addressing major challenges such as inequality, poverty, education and health care. AccessHolding has supported its network financial institutions in creating new products, channels and ways to interact with clients by advancing their digital capabilities while still giving banking a human face.  
 
In this report, you can find the answers for following questions: 
  • Which national regulations and settings influence the development of digital financial products and services?
  • What influences digital transformation?
  • What enhances digital innovation? 
To sum up, in their countries of operation, the regulatory approaches are very heterogeneous. Whilst some countries (like Rwanda) see digitalization as a way to accelerate growth and have adopted a national strategy of transformation, others (like Liberia) lack clarity and consistency of regulatory and legal frameworks. They found no common approach to enhance DFS innovation applied across countries and that an agile adaptation to changing environment was predominant.  
 
The authors also looked at the regulatory impact of the COVID 19 crisis and found that as a first response to the crisis, most governments focused their – mostly temporary – regulatory adjustments on “quick wins” that had a high potential to mitigate part of the impact of the pandemic on the national economy. 
 
Read more information about this report here
 
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Digital Transformation