US research recommends measures to boost e-money's growth

Jun 08, 2011

New monetary policies should be introduced to secure the development of long-term banking services in Africa, according to a study.

This is according to a study conducted by the Massachusetts Institute of Technology and Georgetown University, published by French banking group BNP.

Researchers, who took the M-Pesa payment system in Kenya as an example, recommended the introduction of measures allowing mobile banks to issue net e-money, in order to balance the quantities of electronic and traditional funds.

They are also calling for the reduction of differences between the various paper money yield rates between public and private finance to avoid economic shortages.

Finally, so that mobile payment systems grow in the long term, mobile banks will have to develop new services such as insurance, savings or credit, the study concludes.

Tahir Hamid Nguilin, Vice-Governor of the Bank of Central African States, announced during a conference this week that the Economic and Monetary Community of Central Africa wishes to widen banking services' access through mobile telephony, Mutations newspaper reports.

"Mobile telephony is the perfect tool, especially because of its strong penetration rate in rural populations," he said.