Financial Crime World

Mali Eyes Banking Regulations to Boost Data Protection in Digital Financial Services

As Mali looks to accelerate its digital financial services (DFS) sector, the government is faced with the challenge of ensuring data protection for its citizens.

The State of Digital Financial Services in Mali

Mali has made significant strides in increasing access to financial inclusion, with mobile money usage rising from 21% of GDP in 2015 to 65% in 2021. However, despite these gains, Mali’s financial sector still lags behind other countries in the region when it comes to digital payments.

Challenges Facing Mali’s Digital Financial Services

  • Only 38% of Malian adults received a digital payment in 2021, compared to 79% in Kenya and 49.5% in Ghana.
  • The country’s banking regulations are seen as a major hurdle to widespread adoption of DFS.
  • Outdated regulations on banking, microfinance, and credit infrastructure have hindered the development of the country’s financial sector.

Addressing the Challenges

To address these challenges, Mali is committed to increasing access to financial inclusion through its 2021-2026 National Financial Inclusion strategy. The government is also working with the World Bank on the Project to Promote Access to Finance (PAFEEM), which aims to accelerate access to transaction accounts for thousands of individuals and micro-small and medium-sized enterprises.

Key Steps Forward

To achieve these goals, Mali needs to take several steps:

Improve Financial and Digital Infrastructure

  • Connect the public treasury to the GIM-UEMOA payment system.
  • Establish a national platform to enable seamless transactions and reduce reliance on cash payments.

Update Regulatory Framework

  • Introduce new guidelines to facilitate market entry for newcomers and recruitment of agents.
  • Ensure rigorous consumer protection frameworks are in place.

Adapt Technology to Local Financial Habits

  • Digitize micro-savings groups (tontines) and micro-insurance services developed by Malian women to improve female adoption of DFS.

Multiply Use-Cases Across Sectors

  • Introduce DFS across sectors, such as education, agriculture, social protection, and energy.
  • Develop second-generation services such as micro-credit, micro-insurance, and micro-savings.

Unlocking the Full Potential of Mali’s DFS Sector

By addressing these challenges and taking bold steps to improve data protection, Mali can unlock the full potential of its DFS sector and enhance financial inclusion for its citizens.