Financial Crime World

Protecting Financial Data in a Digital Age: Mali’s Journey

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Mobile Payments on the Rise in Mali

Bamako, Mali - As the use of mobile phones and digital financial services continues to grow in Mali, concerns about data protection are rising. With millions of people using mobile money, sending remittances, and accessing credit through their phones, there is a growing need for robust data protection measures.

Growing Digital Financial Services Ecosystem

According to a recent report by the World Bank, Mali’s government has taken steps to develop digital financial services (DFS), but challenges remain at the infrastructure, regulatory, and market levels. The country’s financial sector is dynamic, with access to financial services increasing from 38% in 2017 to 44% in 2021.

Key Statistics:

  • Mobile money accounts per 1,000 adults increased from 235 in 2015 to 935 in 2021.
  • Only 38% of Malian adults received a digital payment in 2021.
  • Access to financial services increased from 38% in 2017 to 44% in 2021.

Importance of Data Protection

The World Bank’s study highlights the importance of data protection in Mali’s DFS ecosystem. The report notes that leakages can be reduced so that beneficiaries receive the full value of funds, and governments can strengthen accountability by tracking where funds are spent.

Addressing Concerns: Government Initiatives

To address these concerns, the Malian government has committed to increasing access to financial inclusion through its 2021-2026 National Financial Inclusion strategy. The Jigisemeyiri Project distributed cash transfers to 62,000 households suffering from food insecurity during the pandemic, and the PAFEEM will accelerate access to transaction accounts for thousands of individuals and MSMEs.

Challenges Remaining in Mali’s DFS Ecosystem

Despite these efforts, challenges remain in Mali’s DFS ecosystem. The country’s credit infrastructure is limited, and the institutional framework needs to be strengthened. Credit bureau regulations exclude client data from prepaid service utility bills, impeding alternative credit scoring methodologies.

Key Challenges:

  • Limited credit infrastructure
  • Institutional framework needs strengthening
  • Credit bureau regulations impede alternative credit scoring methodologies

Accelerating Digital Financial Services Adoption

To accelerate the adoption of digital financial services, Mali should improve its financial and digital infrastructure, update its regulatory and legal framework to reflect technological changes, adapt technology to local financial habits, and introduce DFS across sectors and multiply use-cases.

Collaboration and Governance

The World Bank has called for collaboration between the central bank and the telecom regulator Agence Malienne de Régulation des Télécommunication et des Postes to address these challenges. The establishment of a Financial Services Quality Observatory will also be key in ensuring that consumers’ financial complaints are addressed, despite the rise in fraudulent incidents.

Conclusion

As Mali continues to grow its DFS ecosystem, it is essential that robust data protection measures are put in place to ensure the security and integrity of customers’ financial information. With the right policies and regulations in place, Mali can unlock the full potential of digital financial services and promote inclusive growth and recovery in the country.