Page 17 - Tanzania-Enabling-Mobile-Money-Policies
P. 17
oUtLooK and next StePS
4
outlook and
next steps
d espite the pending adoption of the new regulatory framework, the mobile money industry continues to progress, with active
dialogue between providers and the Bot, which is committed to continue to address market developments and enable innova-
tions with the aim to achieve digital financial inclusion. the new national Financial inclusion Framework clearly articulates the
role of mobile money in tanzania’s development and its potential to guide Bot policy and regulation to meet its financial inclusion goals.
constructive dialogue and evolving engagement
between regulator and the private sector
there has been a marked evolution in the relationship between the Bot and the mobile money industry. today, mnos are able to speak
with the regulator directly as a trusted party, without their bank partners. this is a significant change, which demonstrates a shift in the
regulator’s approach and underpins the draft mobile Payments regulations. the direct dialogue has enabled effective understanding of
both the value proposition of mnos and the regulatory objectives of the Bank. direct dialogue with the regulator has been critical for
mnos to better understand the Bot’s approach, concerns, and objectives, to present and get approval for new service deployments in a
dynamic market, and to receive prompt, direct responses in a competitive environment.
Both the providers and the regulator note positively that engagement has not been limited to specific provisions in the regulations, but
rather has supported mutual learning. it has also allowed them to identifying appropriate metrics for monthly reporting. eventually, this
dialogue has allowed the regulator to access more (and more meaningful) data than anticipated and to refine their monitoring approach.
While current discussions with the regulator tend to be bilateral between single provider and the Bot, some industry players are keen to
replicate the engagement model that is already in place between mnos and the tCra, where the industry often has a common position
and addresses the regulator jointly as competition abates and common issues arise.
market developments
tanzania is a mature mobile money market with a great level of competition. the regulatory approach to interoperability is followed with
great interest, given the potential implications for providers’ business models, their current and future investments, and the impact on
customers in terms of transactionality of the accounts, but also cost the services and various consumer protection issues. Bot is keen to
ensure that interoperability is implemented in an orderly and effective manner that ensures all stakeholders benefit from the efficiencies
that interoperability brings. in this regard, the draft mobile Payments
regulations allows the market to implement systems that are capable of being interoperable and to deploy market-led interoperable
solutions. Publicly, the Bot has stated a preference for the market to arrive at an interoperable solution on its own.
in line with this, the market has already commenced an interoperability project facilitated by the iFC that involves all four mnos and the
banks that are pursuing mobile banking with them.
Providers are also looking to expand into the area of international money transfers and are working closely with the Bot to reach a
shared understanding of the potential issues. this will allow the regulator to understand the proposed model, what values are expected,
and what regulations are required from a foreign exchange perspective. other issues, such as transaction limits and corresponding
11
4
outlook and
next steps
d espite the pending adoption of the new regulatory framework, the mobile money industry continues to progress, with active
dialogue between providers and the Bot, which is committed to continue to address market developments and enable innova-
tions with the aim to achieve digital financial inclusion. the new national Financial inclusion Framework clearly articulates the
role of mobile money in tanzania’s development and its potential to guide Bot policy and regulation to meet its financial inclusion goals.
constructive dialogue and evolving engagement
between regulator and the private sector
there has been a marked evolution in the relationship between the Bot and the mobile money industry. today, mnos are able to speak
with the regulator directly as a trusted party, without their bank partners. this is a significant change, which demonstrates a shift in the
regulator’s approach and underpins the draft mobile Payments regulations. the direct dialogue has enabled effective understanding of
both the value proposition of mnos and the regulatory objectives of the Bank. direct dialogue with the regulator has been critical for
mnos to better understand the Bot’s approach, concerns, and objectives, to present and get approval for new service deployments in a
dynamic market, and to receive prompt, direct responses in a competitive environment.
Both the providers and the regulator note positively that engagement has not been limited to specific provisions in the regulations, but
rather has supported mutual learning. it has also allowed them to identifying appropriate metrics for monthly reporting. eventually, this
dialogue has allowed the regulator to access more (and more meaningful) data than anticipated and to refine their monitoring approach.
While current discussions with the regulator tend to be bilateral between single provider and the Bot, some industry players are keen to
replicate the engagement model that is already in place between mnos and the tCra, where the industry often has a common position
and addresses the regulator jointly as competition abates and common issues arise.
market developments
tanzania is a mature mobile money market with a great level of competition. the regulatory approach to interoperability is followed with
great interest, given the potential implications for providers’ business models, their current and future investments, and the impact on
customers in terms of transactionality of the accounts, but also cost the services and various consumer protection issues. Bot is keen to
ensure that interoperability is implemented in an orderly and effective manner that ensures all stakeholders benefit from the efficiencies
that interoperability brings. in this regard, the draft mobile Payments
regulations allows the market to implement systems that are capable of being interoperable and to deploy market-led interoperable
solutions. Publicly, the Bot has stated a preference for the market to arrive at an interoperable solution on its own.
in line with this, the market has already commenced an interoperability project facilitated by the iFC that involves all four mnos and the
banks that are pursuing mobile banking with them.
Providers are also looking to expand into the area of international money transfers and are working closely with the Bot to reach a
shared understanding of the potential issues. this will allow the regulator to understand the proposed model, what values are expected,
and what regulations are required from a foreign exchange perspective. other issues, such as transaction limits and corresponding
11
