The structure of banking and financial intermediation has changed a lot in recent years to adapt to the transformations brought about by deregulation and liberalization of the industry.
The financial crisis, especially the 2008 crisis, marked an ex post tightening of international financial regulations that were more restrictive and led to the development of “shadow banking” or “shadow banking”.
Indeed, with increasing prudential restrictions, the bank no longer acts as a privileged participant in savings mobilization and private sector financing.
This qualitative evolution of intermediation leads to the erosion of banking monopolies and financial markets in mobilizing resources or even private sector savings and financing through the diversification of banking and financial products and services, sometimes even under the influence of banks.
This has led to the emergence of new forms of intermediation with the emergence of new players, especially non-banks, whose organizational and operating model, different from banking, is transforming the classical model of banking and financial intermediation.
These new entrants are relying heavily on new technologies to offer alternative solutions that allow traditional banking sectors to better manage and diversify their risks, in particular credit risks, in particular by outsourcing these risks, which are now carried by special structures on the market. financial markets, in particular through securitization.
The economic model of these new entrants, based on technology, the Internet and mobile telephony, has allowed diversification of the supply and distribution channels of banking and financial products and services, as well as sources of financing and investment through crowdfunding. platforms, the issuance of digital assets, cryptocurrencies have become a reality under the control of certain jurisdictions that have adopted rudimentary legislation also promoting this method of financing startups.
These developments in the industry are closely monitored by banking and regional financial market regulators, who, through several initiatives, connect most of the players interested in forward thinking, in particular, governments, banks, intermediation management (SGI), microfinance. institutions, insurance, telecommunications, service providers, fintech, etc.
Moreover, the COVID-19 pandemic has also given new impetus to the depersonalization of customer relationships with the growing development of “online banking” and “online exchange” as well as remote transactions.
It should be noted that within the framework of WAMU, the field of banking regulation has expanded significantly with the adoption of new directives and instructions by the Central Bank. (Instruction No. 008-05-2015 on the issuance of electronic money, Directive No. 15-12/2010/RB dated December 13, 2010, establishing the conditions for intermediary activities when performing banking operations in VAMU, etc.) .
As part of the development of the General Regulation of the Regional Financial Market, under the auspices of the Regional Council for Public Savings and Financial Markets (CREPMF), which offers tools to mobilize savings for private sector financing, now opens the gate for banks to carry out transactions that were normally reserved for financial market professionals. .
Influenced by rising prudential restrictions as well as the penetration of new technologies, the philosophy and physiognomy of financial intermediation raises a fundamental question:
“Is the banking industry in UEMOA or even Africa strong enough to accept ongoing structural changes and the qualitative impact of digital technologies on the diversification of product and service delivery channels? »
Since fintechs have become important players, it is appropriate to question the structural, organizational and functional models of new players and to determine their competitive advantages in relation to banks and financial market players.
Consumer protection for financial products and services is also an important issue at the heart of investor and consumer confidence.
In general, it is worth focusing on the adequacy of our regulatory framework for these changes in traditional mediation schemes with the development of blockchain, cryptocurrencies, artificial intelligence, big data, etc.
Therefore, it is a question of following the evolution of banking and financial intermediation in WAMU member countries and discussing its impact on financial inclusion dynamics as well as its real added value in regional private sector finance.
Discussion may focus on:
- how to make effective the protective mechanism and guarantees recognized for consumers of banking and financial products in the UEMOA zone?
- what mechanism should be put in place to ensure that investors are paid in the event of loan delinquency and/or loss?
- the contribution of technology and innovation to the dynamics of the supply of banking and financial services?
- the impact of intermediation on the spread of banking and financial products and services, and on economic growth?
The forum is a platform for dialogue and consultations with various regulatory bodies of the banking, financial, insurance and, in particular, telecommunications sectors, as well as with all players in these sectors (administrations, banks, management and intermediary companies, financial and payment institutions). , microfinance institutions, solution and technology providers, service providers, fintech, organizations, private sector, etc.)
The forum aims to discuss the impact of banking/financial intermediation and the provision of technology services and payments on the dynamics of financial inclusion and financing of the regional private sector.
This will allow us to anticipate structural and functional changes in the industry, as well as developments at the international level, in order to define a financial intermediation model adapted to the structure of our economies in order to control and promote new forms of financial intermediation supported by fintech companies. maintaining regional financial stability.
Finally, it will discuss the traditional legal and regulatory system for protecting consumers of financial products and services and identify appropriate guidelines for strengthening it.