The Use of ‘Mobile Phones’ in Changing the Banking Regulatory Landscape in Africa

Abstract

The widespread mobile phone usage across Africa and in other regions where the number of telephone subscribers has now exceeded the number of bank account holders has changed the ease with which banks and other financial services are regulated. Bearing this in mind, the article articulates that mobile phones can be used to plug the gaps in the regulation of the banking and financial markets, not only in Africa but also in other regions. It is worth noting that the data on mobile phones have been used to enhance the ability of oversight institutions to generate information and plug regulatory gaps, especially in the economies of less developed countries. Some countries lack the capacity for robust data generation and as a result have utilised mobile phones to fix the gaps in the regulation and delivery of financial services. Mobile phones have been utilised to effect payment to workers and to pay household bills, and are used by small businesses to effect international business transactions and even to prevent crime through intelligence-sharing and by using forensics on mobile phones to prosecute criminals.