Namibia Grapples with Fintech and Financial Crime Risks as FinTech Square Looms

Bridging the Financial Exclusion Gap through Innovation

As Namibia seeks to bridge its financial exclusion gap, the Namibian Financial Institutions Supervisory Authority (Namfisa) is set to host its third edition of FinTech Square this week. This event promises to explore the world of financial technology within the country’s non-banking financial institutions sector.

Themed “FinTech Unleashed: Showcasing Innovation at the Square”

The event, scheduled for May 30 and 31, aims to connect Namfisa with innovators, consumers, industry players, and regulatory authorities at the forefront of innovation, technological advancement, and digital transformation. The event is being held in collaboration with the Communications Regulatory Authority of Namibia (Cran) and GIZ Namibia through its ProBats II project.

Aligning with Strategic Themes

According to Namfisa Chief Executive Kenneth Matomola, FinTech Square is designed to advance digital innovation for greater financial inclusion in Namibia’s non-banking financial institutions sector. The event also aims to enhance efficiency and sustainability in fulfilling the authority’s mandate. Matomola emphasized that this aligns with one of Namfisa’s strategic themes of innovation, which encourages technology adoption and embracing new technologies.

Importance of Cooperation

Cran spokesperson Mufaro Nesongano highlighted the importance of cooperation between regulatory bodies, stating that the partnership aims to enhance the efficiency of executing their respective mandates. Nesongano emphasized that cooperation is crucial in fostering growth and stability in Namibia’s information and communication technology and financial sectors.

Potential of Fintech

GIZ’s Ndapandula Auala highlighted the potential of fintech to disrupt traditional non-banking services, enhancing financial inclusion and access to financial services. She also emphasized the opportunities for local economic development that fintech provides, noting that it offers innovative solutions to connect micro, small, and medium enterprises to affordable financial services.

Concerns about Financial Crime Risks

As Namibia navigates the world of fintech, concerns about financial crime risks have been raised. Experts warn that unregulated fintech activities can lead to increased vulnerability to money laundering, terrorist financing, and other illicit activities. The country’s financial sector has faced challenges in addressing these risks, including a lack of resources and expertise.

Addressing Financial Crime Risks

With FinTech Square set to take place amidst concerns about financial crime risks, industry stakeholders are keenly watching how Namfisa will address these issues during the event. The authority is expected to provide updates on its initiatives to promote fintech innovation while ensuring that it is done in a responsible and regulated manner.

Conclusion

FinTech Square promises to be an exciting event that showcases innovation and technological advancement in Namibia’s non-banking financial institutions sector. However, concerns about financial crime risks must also be addressed to ensure the growth and stability of the country’s financial sector.