Page 9 - Tanzania-Enabling-Mobile-Money-Policies
P. 9
introdUCtion
lessons for the industry
• Seek to establish a direct relationship with the regulator, engaging proactively to understand its perspective and concerns.
• Keep the regulator informed of the progresses made in the provision of the services and the lessons of implementing deployments.
• identify the regulator’s objectives and the role of the industry in supporting the regulatory journey over time.
• expect that the nature and scope of engagement with the regulator will change over time based on the maturity of the market
and the provider.
box 1
The boT’s coMMiTMenT T o financial inclusion
as a public policy objecTive
The BOT has embraced financial inclusion as a public policy objective, using the legal and regulatory framework for mobile pay-
ments to address the issue. BOT launched their National Financial Inclusion Framework (NFIF) in December 2013, setting the
4
objective of 50% financial inclusion by 2016 with clear targets for a range of indicators (e.g., 25% of people will live within 5 km of a
financial access point; 25% of Tanzanians will have at least two weeks of household income in their electronic account). The defini-
tion of financial inclusion includes mobile money services. The NFIF recognises the role of mobile money in “revolutionising the
landscape of financial services” over the last five years. Furthermore, the NFIF identifies four core enablers of financial inclusion,
5
each closely associated with the characteristics of mobile money: proximity, payments, and the storage of value and information.
Building on these core enablers, the NFIF has set priority areas for action from 2014–16 to achieve the above targets:
• increasing the proximity of financial access points to where people live and transact;
• enabling robust payment platforms;
• supporting robust electronic information infrastructure for individual and business profiles, credit history, and collateral by
establishing an effective know your customer (KYC) process, increasing the engagement of the credit reference bureau, and
establishing and using a central collateral database; and
• ensuring that customers are informed and protected.
Figure 1
coMparing Mobile Money in Tanzania and Kenya:
yearly TransacTion value 6
25
21,9
kENYA
20
17,8 17,7
TANzANIA
(Us$) bILLION 10 8,4 13,5 10,6
15
5,4
5 3,4
1,9
0.18 0.1 0.6 1 USd = 1,627.47 tZS
0 1 USd = 86.4495 KeS
2007 2008 2009 2010 2011 2012 2013
4. tanzania national Council for Financial inclusion (2012), “national Financial inclusion Framework”, 15, http://www.bot-tz.org/nFiF/national%20Financial%20inclusion%20Framework.pdf
5. ibid, 8.
6. data published on the website of Bank of tanzania and the Central Bank of Kenya.
3
lessons for the industry
• Seek to establish a direct relationship with the regulator, engaging proactively to understand its perspective and concerns.
• Keep the regulator informed of the progresses made in the provision of the services and the lessons of implementing deployments.
• identify the regulator’s objectives and the role of the industry in supporting the regulatory journey over time.
• expect that the nature and scope of engagement with the regulator will change over time based on the maturity of the market
and the provider.
box 1
The boT’s coMMiTMenT T o financial inclusion
as a public policy objecTive
The BOT has embraced financial inclusion as a public policy objective, using the legal and regulatory framework for mobile pay-
ments to address the issue. BOT launched their National Financial Inclusion Framework (NFIF) in December 2013, setting the
4
objective of 50% financial inclusion by 2016 with clear targets for a range of indicators (e.g., 25% of people will live within 5 km of a
financial access point; 25% of Tanzanians will have at least two weeks of household income in their electronic account). The defini-
tion of financial inclusion includes mobile money services. The NFIF recognises the role of mobile money in “revolutionising the
landscape of financial services” over the last five years. Furthermore, the NFIF identifies four core enablers of financial inclusion,
5
each closely associated with the characteristics of mobile money: proximity, payments, and the storage of value and information.
Building on these core enablers, the NFIF has set priority areas for action from 2014–16 to achieve the above targets:
• increasing the proximity of financial access points to where people live and transact;
• enabling robust payment platforms;
• supporting robust electronic information infrastructure for individual and business profiles, credit history, and collateral by
establishing an effective know your customer (KYC) process, increasing the engagement of the credit reference bureau, and
establishing and using a central collateral database; and
• ensuring that customers are informed and protected.
Figure 1
coMparing Mobile Money in Tanzania and Kenya:
yearly TransacTion value 6
25
21,9
kENYA
20
17,8 17,7
TANzANIA
(Us$) bILLION 10 8,4 13,5 10,6
15
5,4
5 3,4
1,9
0.18 0.1 0.6 1 USd = 1,627.47 tZS
0 1 USd = 86.4495 KeS
2007 2008 2009 2010 2011 2012 2013
4. tanzania national Council for Financial inclusion (2012), “national Financial inclusion Framework”, 15, http://www.bot-tz.org/nFiF/national%20Financial%20inclusion%20Framework.pdf
5. ibid, 8.
6. data published on the website of Bank of tanzania and the Central Bank of Kenya.
3
