Digital Financial Services

In 2019, 24 countries in the AFI network reported developing and implementing 36 policy changes to enhance digital financial services (DFS). This is the same number of countries that reported DFS reforms in 2018, where 44 policy and regulatory changes were reported. In the past three years, more than half of the countries in the AFI network have reported developing and implementing DFS reforms in their respective jurisdictions.

HIGHLIGHTS POLICY TRENDS REGIONAL TRENDS

36 reforms from 24 countries reported in 2019

120 Since 2017, there were 120 reforms from 46 countries reported

8fintech-related policy reforms

6policies reported for e-money and national payments systems each ASIA

EECA

LAC

MENA

SSA

PACIFIC

5

2

7

2

9

11

There is an uptake in fintech-related policies reported by the membership with 8 countries reported developing regulatory sandboxes (mostly from the Pacific) or amendment of national payments system acts to provide an enabling environment for innovations and fintech solutions for financial services. On e-money regulations, five members have also introduced or amended their existing regulations on electronic money. For example, Banco Central de Timor Leste introduced a policy on e-wallet platform for fintech companies in Timor Leste.

Other policy trends remain the same as previous years, with a focus on national payments system, with six policy changes reported. AFI members report implementing reforms to automate and modernize their systems to enable safe, secure and reliable payments and settlements.

From a regional perspective, the seven members institutions from the Pacific have reported a total of 11 DFS policy and regulatory reforms, the most across all regions. Further to the endorsement of the PIRI regional regulatory sandbox, each AFI member in the Pacific conducted stakeholder engagements with telecommunications authority, ministries, public and private sector stakeholders, trade unions and associations, external strategic stakeholders etc. in each of their respective jurisdictions towards the implementation of the regional regulatory sandbox.

Concurrently, the Reserve Bank of Vanuatu has also signed a memorandum of understanding (MOU) between the telecommunication, radio and broadcasting regulator (TRBR) for a joint regulation on mobile money operators in Vanuatu.