upu forum for financial inclusion for development berne
TRANSCRIPT
BERNE, 5 NOVEMBER 2014
Clifford Nkomo : Head Postal Services
1. BACKGROUND
2. CURRENT SITUATION
3. REGULATORY CHALLENGES
4. OPPORTUNITIES
5. RECOMMENDATIONS
6. SADC POLICY RESOLUTIONS
Governments in the Southern Africa Development Community (SADC), as
elsewhere in the world, are pursuing financial inclusion as an enabler for
socio economic development and reduction of poverty.
The post office with an existing wide branch foot print offers a viable
avenue (cost and security) for the role out of financial services to the poor,
unbanked, disadvantaged low income groups especially in the rural areas.
There are over 5600 post offices spread across the 13 SADC countries with
a postal density ratio of 1:38600, representing the largest single branch
network of any kind.
Due to the decline in mail volumes, the post office has sought new revenue
streams through offering diversified financial services through partnerships
with banking and non- banking institutions including mobile money
operators.
In SADC region average mobile telephony penetration is around 80% with
network coverage of 90% of the population making this the most potent
tool for financial inclusion.
Only about 42% of the adult population in the Sothern Africa region is
formally banked.
Mobile money offers the unbanked a fast and hassle free access to financial
services.
The proliferation of mobile financial services has been so rapid giving
governments little room to develop formal regulatory frameworks.
Most countries in the region either do not have structured regulations for
mobile financial services or a flexible one exists.
There is a hybrid scenario regarding the regulation of mobile financial
services in the region between the ICT/Postal Regulator and the Financial
Services regulator; the former covering the platform or channel of
conveyance and the later content.
The role of mobile financial services as a catalyst for postal financial
inclusion is not clearly defined or regulated.
Regulation imbues important tenets of financial inclusion such as
affordability, accessibility (infrastructure), quality, and customer protection.
The increasing interest by mobile financial services operators to extend the
service across borders of the SADC region thus attracting greater attention
regarding Anti-Money Laundering (AML), Combating the Financing of
Terrorism (CFT) and customer security protection among other issues.
The market and technological convergence requiring re-consideration by
policy makers and regulators of policies or regulations affecting spectrum
deployment, competition, broadband, privacy and data protection,
taxation, numbering, tariff and licensing;
Further mobile financial services regulation is required in SADC regarding
the following:
i) Specific regulation on agent banking – specifying the role of non-
bank agents and non-bank issuers of mobile money.
ii) Specific requirements are needed regarding AML/CFT for agents.
iii) Protection of mobile money.
iv) Consumer protection ( understanding, data privacy and security)
v) Establishment of legal authority to regulate and supervise mobile
banking services.
Development of partnerships between the postal and mobile operators as
well as the Central banks to grow the mobile financial services through the
cash merchant business model.
In collaboration with mobile network operators, to provide consumer
awareness and education on mobile money services to grow the business
through quality of service and experience in service provision.
CRASA and SADC Member States to consider supporting the ITU Study on
the development of mobile money standards;
SADC, CRASA, SADC Banking Association, Non-Banking Financial Regulatory
Institutions, Southern Africa Postal Operators’ Association (SAPOA) and
Southern African Telecommunications Association (SATA) to look into
development of a SADC Inclusive Governance Framework for the provision
of mobile financial services.
Collaboration between Central Banks, Non-Banking Regulators, Postal
Operators and Communications Regulators to facilitate successful mobile
money postal financial inclusion;
Use of post offices to set up and co-sharing of ICT infrastructures, such as,
mobile towers to enhance mobile money deployment.
Consideration to extend the definition of Universal Postal Services to
include all aspects of financial inclusion;
Development of a SADC Model Policy, Laws and Regulations on Postal
Financial Inclusion.
To develop a clear postal regulatory framework aimed at improving
Corporate Governance and fostering reform of the sector in the region and
allowing Postal Operators to diversify into new areas of activity.
To improve the inter-operability of postal networks and systems at national
and regional levels.
To support the development and implementation of regional initiatives
aimed at offering seamless financial services within the postal service
taking into consideration security and customer protection parameters.
To urge Member States, within their budgetary resource allocation and
other constraints, to improve and provide physical infrastructural
development within the postal sector including electrification and Internet
connectivity to all Post Offices in the region.
To promote the harmonization of postal policies and legislation in order to
strengthen the capacity of Regulators.