Regulatory Challenges of Cross-Border Fintech Operations
Regulatory challenges of cross-border fintech operations
Global regulators discuss cross-border payment challenges and the need to foster collaboration between regulators and fintechs to unlock trade opportunities across Africa and beyond. Key discussions highlighted the need for interoperability, regulatory cooperation, and innovative solutions like blockchain and generative AI.
1. Unlocking cross-border payments:
- Kwame Oppong of the Bank of Ghana stressed the need for real-time payment systems and national switches to make cross-border payments cost-effective, noting that mobile money systems often clash with traditional banking infrastructures.
- Meanwhile, Christian Kajeneri Mugenzi from National Bank of Rwanda (NBR) pointed out that the biggest challenge fintechs face is lack of interoperability, even between similar mobile services across borders. Regulatory collaboration is crucial to address this.
2. Africa’s fintech future:
- Rwanda was highlighted as a model for fintech innovation, offering a safe, clean, and business-friendly environment.
- Collaboration between countries like Ghana and Rwanda is proving the potential of a unified African market.
- Regulatory sandboxes, like Ghana’s, are allowing real-time mobile money interoperability tests and paving the way for broader collaboration.
3. Japan’s contribution to cross-border payments:
- Dr. Jutaro Kaneko, Financial Services Agency, discussed Japan’s role in improving regional financial cooperation, particularly through the integration of digital payment systems, such as QR codes, and the ongoing efforts in generative AI to optimize cross-border transactions.
- Japan’s collaboration with ASEAN countries aims to streamline cross-border retail payment networks and support financial innovation through a coordinated regulatory approach.
To boost cross-border trade and payments, regulators, fintechs, and the private sector must unite to create seamless, interoperable systems.
Speakers:
- Christian Kajeneri Mugenzi, Director, Payment Systems, National Bank of Rwanda (NBR)
- Dr. Jutaro Kaneko, Deputy Commissioner for International Affairs, Financial Services Agency
- Kwame Oppong, Director of FinTech and Innovation, Bank of Ghana
Moderator:
- Raadhika Sihin, Head of Policy, Global Finance & Technology Network (GFTN)