A leading figure from Standard Chartered says a robust FinTech regulatory framework is crucial to Africa’s financial prospects.
Emmanuel DeGroote, Regional Head of Compliance, Africa and Middle East, for Standard Chartered, has argued that a sweeping transformation in the African financial sector has resulted in this need.
“As with any technological advancement, the prospects of FinTech led prosperity bring a host of risks and a sound regulatory framework is the only approach that can promote fair outcomes for people and reduce the risks of predatory practices against vulnerable customers,” he said.
“Implementing a regulatory framework for FinTech could support the development of a more digitised and robust financial system as well as pave the way for more innovation and frictionless digital banking solutions. With the threat of cyber-attacks, data vulnerability, fraud and more, FinTech can negatively impact stakeholders, FinTech entities, and banking and nonbanking participants, which is why it is imperative to strengthen safeguards and supervision in order to promote consumer safety, financial stability and market confidence.”
He added that the introduction of appropriate regulations can promote transparency and strengthen defence mechanisms to mitigate risks of cyber-attacks, breach of consumer data, fraud and money laundering.