Building Africa’s digital public infrastructure

The Inclusive FinTech Forum (IFF), a global event focused on promoting financial inclusion and fintech for good, is currently taking place in Kigali. With over 3000 delegates in attendance, the forum aims to drive the advancement of policies and regulations that will facilitate meaningful long-term connections and partnerships to promote financial inclusion through innovative fintech solutions. CNBC Africa's Flora Limukii had a conversation with Sopnendu Mohanty, CEO for Global Finance and Technology Network, on the sidelines of the event. Mohanty highlighted the significance of central banks in Africa upgrading their policies and frameworks to attract more companies into the fintech space, creating a more dynamic market environment. Key Points: 1. Regulatory Frameworks Across Africa: Mohanty emphasized that while regulatory frameworks vary across different African countries, central banks worldwide typically focus on key areas such as know your customer, money laundering, market integrity, consumer protection, financial stability, and technology risk. He suggested that the consistency in these core focus areas should eliminate the need for maneuvering through regulatory hurdles, emphasizing the importance of strong digital public infrastructure and well-understood operating processes. 2. Data Protection and Cybersecurity: The conversation also touched on the critical aspects of data protection and cybersecurity in the digitization of financial services. Mohanty stressed the significance of implementing robust market infrastructure, comprehensive data protection regulations, and consumer education to ensure secure handling of data and foster trust among customers. He underscored the need for financial literacy, cybersecurity awareness, and data protection literacy to align with evolving digital practices. 3. Impact of Artificial Intelligence on Fintech: Mohanty acknowledged the pivotal role of artificial intelligence (AI) in shaping the future of fintech, noting that AI has already begun transforming business models within the industry. While AI presents opportunities for fintech companies to enhance their operations and services, Mohanty also highlighted the potential for AI to disrupt existing business models by altering consumer experiences and market dynamics. He discussed the evolving landscape of partnerships in fintech, particularly collaborations between telcos, banks, investors, and regulatory bodies. Mohanty emphasized the importance of collective involvement from various stakeholders to drive innovation and growth in the fintech sector. Quote: Mohanty stated, 'The outcome comes because people come here, they talk to each other, they discuss issues which are important to them and they find a way to look at the future of the industry. They use this platform to forge some alliances.' In conclusion, the Inclusive FinTech Forum serves as a platform for industry players to engage, collaborate, and strategize towards advancing financial inclusion and fostering fintech innovation in Africa. By addressing regulatory challenges, enhancing data protection measures, embracing AI technologies, and fostering diverse partnerships, the fintech ecosystem in Africa can continue to evolve and drive sustainable economic growth and inclusion.