Added: Demetra Wiechmann - Date: 16.10.2021 21:18 - Views: 21630 - Clicks: 7984
Tunisia is a country that has all of the necessary ingredients for digital financial services to take off. Yet despite the compelling evidence that digital financial services offer huge opportunities to expand financial inclusion by reducing costs, improving user experience, and reducing proximity barriers, less than four percent of Tunisians use mobile financial services. What does it take to move a market beyond stalemate? As early as January , the Tunisian Central Bank worked on improving the regulatory framework for digital payments.
That same year, a working group had been set up by the Government, led by the Ministry of Telecommunications, to examine digital finance. However, by , discussions had reached an impasse. While key market players mobile network operators, microfinance institutions, financial sector regulators agreed that the regulatory framework restrained the development of digital financial services, they disagreed on which sectoral reforms were necessary and lacked a detailed understanding of what the existing regulations permitted.
Dialogue was not producing any and tensions among private and public actors, as well as among public actors themselves, were rising. In November , the World Bank and CGAP launched a demand-side study to assess current usage and market potential for digital financial services, as well as a diagnostic of the regulatory framework and financial infrastructure underpinning digital finance. Cognizant of the existing tensions among stakeholders, the team realized the study itself would be unlikely to lead to market reform. As such, the team used the study as an opportunity to facilitate the market toward a common goal — moving ahead on sectoral reform to develop digital finance in Tunisia.
After six months of facilitating this process, CGAP and the World Bank see credible progress: there is an emerging model for digital finance in Tunisia, the details of which are being debated and finalized by authorities. Looking back, we can identify three key components that helped revive debates in a constructive way. This process of facilitating change — what is called a market facilitation approach — has been critical for achieving progress on digital finance in Tunisia. This approach has allowed stakeholders a much better understanding of the interventions needed to develop digital finance in Tunisia over the long term.
It has also allowed a better understanding of the incentives and interests of both public and private actors. Voices have been heard and key decisions taken — from developing market inter-operability to creating a legal and regulatory framework for an agent network in Tunisia — have been agreed upon by the steering committee and published in the final demand-side study.
While quantifying long-term impact of the project is difficult at this stage, CGAP and the World Bank are now working with the Tunisian authorities on deing a technical assistance program to further develop market infrastructure and the supervisory framework to promote digital finance, in concert with the host of market actors. While the political economy of reform remains difficult in Tunisia given its recent political transition and ongoing economic challenges, the market facilitation approach has proven to be a cost efficient and effective manner at advancing financial sector innovation.
email: [email protected] - phone:(241) 311-2279 x 8676
Speed Dating in Monastir, Tunisia