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Presentation on the Legal and Regulatory Framework: Fintechs By: Stephen Mwaura Nduati
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Presentation on the Legal and Regulatory Framework: Fintechs By: - - PowerPoint PPT Presentation
Presentation on the Legal and Regulatory Framework: Fintechs By: - - PowerPoint PPT Presentation
Presentation on the Legal and Regulatory Framework: Fintechs By: Stephen Mwaura Nduati 1 2 Kenya Area: 582,650 sq km Population: 46 million GDP per Capita: USD 1409.61 Currency: Kenya Shilling Legal System: English Common Law system No. of
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Kenya
Area: 582,650 sq km Population: 46 million GDP per Capita: USD 1409.61 Currency: Kenya Shilling Legal System: English Common Law system
- No. of mobile money accounts: 28
million. Mobile Phone penetration: 78%
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▪ A System that enables the transfer of money
from one party to another “ A set of instruments, procedures and rules for the transfer of funds among system participants”.
Committee of payment and settlement systems for BIS
What is a Payment System?
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PAYMENT AND SETTLEMENT SYSTEMS
“Payment and settlement systems are to economic activity what roads are to traffic: necessary but typically taken for granted unless they cause an accident or bottlenecks”
64th BIS Annual BIS Report (1994)
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ELEMENTS OF FINTECH/ PAYMENT SYSTEM
Payment Instruments
Network
arrangements Institutions providing payment services Market Conventions, Contractual Arrangement Laws, Standards and Rules
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FINANCIAL INCLUSION
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✓ An increase to 67 percent of Kenyans can access financial services . ✓ Only about 7.8 percent are served by informal financial services. ✓ A reduction to 25 percent of the population are still excluded. Source: Financial Access Surveys: 2006, 2009 & 2013
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1998 1999 2000 2001 2002 2 003 2004 2005
NPS MODERNISATION FRAMEWORK (1998-2005) ENHANCEMENT TO ELECTRONIC
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Policy and Regulation Cheque payment systems Payment Card systems
Kenswitch goes live Dec 2002
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NPS MODERNISATION FRAMEWORK (2007 – 2015)
Launched in 2009
Policy and Regulatio n Large Value Payment Systems Cheque payment systems
2007 2008 2009 2010 2011 2012 2013 2014 2015 &
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FUTURE
Policy and Regulation
Large Value Payment Systems Cheque paymen t systems
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CURRENT POLICY FRAMEWORK FOR FINTECHS
Enabling Environment for Mobile Banking in Africa
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E- commerce AML-CFT Bank Agency Payment systems Bank
- utsourcing
Comp- etition Telco regulation EE: MOBILE PAYMENTS, FINTECHS & MOBILE BANKING
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ENABLING ENVIRONMENT
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POLICY FRAMEWORK
What is the role of the private sector? What is the role of the Government? What is the role of the Central Bank?
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CHALLE LLENGES
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- 1. Access
- 2. Risk ( Legal, Operational, Business ).
- 3. Regulatory and/or Stakeholder support
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