Group To Discuss Digital Financial Literacy At RegTech Confab

The Groupe Speciale Mobile Association(GSMA) has expressed desire to share insights on mobile money financial literacy toolkit and how it would deepen growth of financial literacy in Africa.

GSMA, a non-profit industry organisation that represents the interests of mobile network operators worldwide, will be at the 2023 RegTech Africa Conference in Lagos to share insights on key research findings on digital financial literacy, especially, in low and medium income countries of Africa.

The conference, with the theme: ‘Elevating national policy on financial inclusion, consumer protection and cyber security,’ is coming at a time when the growth of digital financial services has been at the centre of financial inclusion initiatives in many countries, notably, in Sub Saharan Africa.

According to the group, the mobile financial service will continue to play a primary role in financial inclusion in developing countries by providing access to financial services for the previously unbanked segment of the population.

Mobile and other digital platforms have become a primary channel for increased cashless transactions, including government transfers during the Covid-19 pandemic, reinforcing the importance of all citizens – women and men – having access to financial services.

The digital financial literacy toolkit is an implementation handbook for organisations, especially, smallholder farmers, women, youths and local communities to integrate either part or whole of it in their programmes on digital literacy and digital financial literacy.

Financial literacy has been recognised as a key driver for financial inclusion, and has been incorporated as an integral part of the financial inclusion policy agenda of many countries.

However, despite this success, many countries still face challenges in reaching large segments of their unbanked populations, particularly, the lack of financial literacy which has been highlighted as a primary barrier to financial inclusion.

According to the chief executive officer, RegTech Media, Cyril Okoroigwe, widespread use of mobile phones has led to a rapidly growing mobile phone-based economy.

Okoroigwe noted that, favourable regulatory environments and good supervisory practices have enabled significant innovation in mobile transfer services in various countries, giving rise to an entire digital financial services ecosystem offering savings, insurance, local and international money transfers, payments and credit services on mobile money platforms, to both individuals and corporate entities.

“With increased usage of digital financial services over the past few years, there is need for digital skilling programs to improve financial literacy and digital literacy for all to participate in a financially inclusive economy.,

“The widespread use of mobile phones has led to a rapidly growing mobile phone-based economy in which mobile platforms are increasingly used as an alternative to traditional banking and other financial systems,” he said.

He stressed that, mobile financial services remain the most effective contributor to global financial inclusion initiatives and particularly, in developing countries, as it remains a key driver of economic growth by creating employment, driving business productivity, entrepreneurship and formalising the economy.