CEMAC REGION : Mobile Money is revolutionizing Capital Markets
[abelainfo] - In 2024, fintech continues to play a crucial role in improving access to financial services and stimulating economic growth in Central Africa.
The massive adoption of mobile money has particularly transformed financial services, facilitating transactions, savings, and investments for a largely unbanked population.
According to Beac, more than 60 % of financial transactions in the region are now carried out through mobile money platforms, compared to only 25 % in 2018. This rapid adoption is explained by the growing popularity of services offered by platforms such as MTN Mobile Money and Orange Money. These services no longer just include money transfers and bill payments, but more recently, investment in financial products.
Indeed, portfolio management companies in Cemac are leveraging these platforms to collect investors’ savings, thus making investment products accessible to a wider population. The use of mobile money also reduces transaction costs for investors and portfolio managers. Fees are generally lower than traditional banking transactions, democratizing access to investment. Additionally, mobile money enables instant transactions, reducing processing times and facilitating more agile management of investment portfolios.
However, regulation remains a major challenge. The financial authorities in Cemac must continuously adapt their regulatory frameworks to manage the risks associated with digital transactions and ensure investor protection. The security of transactions and the protection of personal data are also essential concerns. Despite the robust security measures implemented by mobile money platforms, the risk of fraud and cyber-attacks persists.
The future of mobile money in Cemac looks promising. To capitalize on this trend, it is essential to strengthen regulation to protect investors while fostering innovation, improve security by investing in advanced security technologies, and encourage the adoption of new technologies by traditional financial institutions.
The democratization of savings and investment products is crucial for the economic development of the Cemac zone. By facilitating access to financial services, mobile money contributes to increased financial inclusion, the mobilization of local savings, and the stimulation of capital markets. These advancements will not only energize local economies but also strengthen the economic resilience of the sub-region as a whole.
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