Transcript of DEVELOPMENT OF DIGITAL FINANCIAL INCLUSION IN KENYA FRANCIS WANGUSI DIRECTOR GENERAL/COMMUNICATIONS...
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- DEVELOPMENT OF DIGITAL FINANCIAL INCLUSION IN KENYA FRANCIS
WANGUSI DIRECTOR GENERAL/COMMUNICATIONS AUTHORITY OF KENYA
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- WHAT IS THE SUCCESS STORY? By 2006, only 185,000 of the adult
Kenyans were formally banked, but by March 2014, 26.2M accounts had
been registered on mobile money platforms, 59% of which were active
with a total of 116,196 mobile money agents. KEY STATISTICS ON
MOBILE MONEY IN KENYA - MARCH 2014 (SOURCE CENTRAL BANK OF
KENYA)
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- DRIVERS OF THE SUCCESS STORY Motivator with its blue print of
making a middle income economy by 2030 Financial Regulator/driver
ICT regulator/driver Deepened and broadened the penetration of ICT
and Financial services Deepened and broadened Financial services
through progressive financial regulation Deepened and broadened
penetration of ICT services through progressive financial
regulation
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- Policy & Regulatory Actors Policy & Regulatory Actors
MNOs Mobile Money Platforms KEY ACTORS IN MOBILE MONEY
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- EVOLUTION OF MOBILE MONEY SERVICES IN KENYA DEVELOPMENT OF
MOBILE FINANCIAL ECOSYSTEM IN KENYA 2005 Safaricom finalizes the
development of the framework for M-pesa pilot as microfinance
repayment tool CBK gives Safaricom an authorization to pilot the
M-pesa framework The M-pesa pilot commences in town called Thika in
Kenya 2006 M-pesa pilot successful complete Safaricom seeks further
authorization to convert from microfinance to mobile money transfer
The Financial Regulator directs Safaricom to further information
regarding M-pesa legal structure 2007 CBK gives an objection to the
conversion M-pesa from microfinance to mobile money transfer
platforms The first mobile money transfer launched in Kenya 2008
M-pesa facilitates bill payment and bulk salary payments M-pesa
customers begin getting M-pesa services at Post bank branches
Introduction of cardless ATM withdrawals to M-pesa customers 2009
National treasury gives M-pesa a clean bill of health GOK exempts
all financial services including mobile money transfer from VAT
Amendment of the financial act 2009 allows the use of agent banking
GOK allows M-pesa customers to receive directly international
remittances through M-pesa platform Some microfinance okeys
customers to make payments through M-pesa (SMEP & MFL)
Insurance companies begin to insure customers using M-pesa (Kilimo)
Partnership between Kenya power and Safaricom to enable KPL
customers pay bills through M-pesa Another partnership with
Grundfors enable rural households to pay for safe water through
M-pesa Celtel Kenya LTD and ESSAR mobile Kenya LTD introduce
competition to M-pesa through Launch of their mobile money
platforms.
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- DIVERSITY IN DIGITAL FINANCIAL SERVICES Flexible e-Banking on
Mobile Platform Easy & Fast Mobile Saving & Loaning
Services Accessible Bank Saving & Lending Service The mobile
money eco-system now integrated under the National Payment System
Created more confidence and resilience through oversight.
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- FROM MOBILE MONEY TRANSFER TO DIGITAL INCLUSION Rapid
transformation from P2P to P2B, P2C, B2B and vice versa
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- DFS HAS ACCELERATED E-COMMERCE GROWTH AND EMPLOYMENT CREATION
The highest no. of transactions take place within the mobile money
markets through selling of goods and services, including cattle
trade as well as P2P money transfers Booming business in small
markets being accelerated by Mobile financial services
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- GOVERNMENT WHIPPED TO DIGITAL FINANCIAL PLATFORMS TO IMPROVE
SERVICE DELIVERY Enhancing the way every Kenyan accesses Government
services Konza the first smart city in Kenya being built for
digital compliance including digital financial inclusion
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- CHALLENGES FACING DIGITAL FINANCE SERVICES IN KENYA Managing
Competition Unprecedented cases e.g Thin SIM for Mobile Money
Dynamic Innovations requiring Dynamic Regulations Cyber Security
Threats & Fraud
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- Digital financial inclusion is part of the enablers
accelerating the countrys aspiration of being a middle income
economy by 2030. Kenyas experience underlines the importance of PPP
and international cooperation as the way to go in order to fully
exploit the potential of DFS and DFI. CONCLUSION
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- THANK YOU