The structure of banking and financial intermediation has changed profoundly in recent years, to adapt to the transformations resulting from the deregulation and liberalization of the industry.
The financial crisis, particularly that of 2008, marked a strengthening of ex-post international financial regulations, which were more restrictive and led to the development of “shadow banking” or “shadow banking” activity.
Indeed, in the grip of increasing prudential constraints, the bank no longer appears as the privileged interlocutor in the mobilization of savings and the financing of the private sector.
This qualitative evolution of intermediation leads to an erosion of banking monopolies and financial markets in the mobilization of resources or even savings and financing of the private sector thanks to a diversification of banking and financial products and services, sometimes even under the impetus of the banks.
This has resulted in new forms of intermediation, with the emergence of new actors, particularly non-banking ones, whose organizational and operating model, different from that of the banks, transforms the classic pattern of banking intermediation and financial.
These new entrants rely considerably on new technologies to offer alternative solutions allowing the traditional banking sectors to better manage their exposures, particularly to credit risks, and to diversify them in particular by resorting to the outsourcing of these risks now borne by dedicated structures on the financial markets, in particular through securitization.
The economic model of these new entrants, fundamentally rooted in technology, the Internet and mobile telephony, has enabled a diversification of the channels for the supply and distribution of banking and financial products and services as well as the sources of financing and investment, through crowdfunding platforms, the issuance of digital assets, cryptocurrency has become a reality under the control of certain jurisdictions in which embryonic legislation has been adopted to also promote this method of financing start-ups.
These developments in the industry are being closely observed by banking and regional financial market regulators who, through several initiatives, associate most of the players concerned with forward-looking reflections, in particular bodies, public administrations, banks, Intermediation Management (SGI), Microfinance institutions, Insurance, telecommunications, service providers, fintech, etc.
Moreover, the COVID-19 pandemic has also given new impetus to the depersonalization of customer relations with the growing development of “online banking” and the “online stock market”, as well as remote transactions. .
It should be noted that within the WAMU, the banking regulatory field has greatly expanded with the adoption of new directives and instructions by the Central Bank. (Instruction No. 008-05-2015 on the Issuance of Electronic Money, Instruction No. 15-12/2010/RB of December 13, 2010 setting the conditions for the exercise of intermediary activities in banking transactions in the WAMU, etc.).
As part of the developments, the General Regulations of the Regional Financial Market under the aegis of the Regional Council for Public Savings and Financial Markets (CREPMF), which offers instruments for mobilizing savings for the financing of the private sector, opens now a gateway to banks that can exercise trades that were usually reserved for professionals in the financial market.
Under the effect of the raising of prudential constraints as well as the penetration of new technologies, the philosophy and physiognomy of financial intermediation raise a fundamental question:
“Is the banking industry of WAEMU member countries or even Africa sufficiently robust to embrace the structural changes underway and absorb the qualitative impact of digital in the diversification of channels for the supply of products and services? financial? »
Fintechs having become essential players, it is appropriate to question the structural, organizational and functional models of the new players and to situate their competitive advantages in relation to banks and financial market players.
The protection of consumers of financial products and services is also a crucial issue in the foundation of investor and consumer confidence.
Overall, it is worth focusing on the adequacy of our regulatory environment to these changes in traditional patterns of intermediation with the development of the blockchain, cryptocurrencies, artificial intelligence, Big data, etc.
Therefore, it is a question of tracing the evolution of banking and financial intermediation in the member countries of the WAMU and of discussing its impact on the dynamics of financial inclusion as well as its real added value in the regional private sector financing.
Discussions could focus on:
- how to make effective the protective mechanism and guarantees recognized for consumers of banking and financial products in the WAEMU area?
- what mechanism should be put in place to ensure the payment of investors in the event of a delay in the repayment of the loan and/or in the event of losses?
- the contribution of technologies and innovations in the dynamics of the offer of banking and financial services?
- the impact of intermediation on the distribution of banking and financial products and services as well as on economic growth?
The Forum is a platform for dialogue and consultation with the various regulatory authorities of the banking, financial, insurance and more particularly telecommunications sectors as well as all the players in the said sectors (Administrations, banks, management and intermediation companies, Financial and payment institutions, Microfinance institutions, solution and technology providers, service providers, Fintech, organizations, private sector, etc.)
The Forum aims to discuss the impact of banking/financial intermediation activities and the provision of technological services and payments in the dynamics of financial inclusion and the financing of the regional private sector.
It will make it possible to anticipate structural and functional changes in the industry as well as developments, internationally, to define the model of financial intermediation adapted to the structure of our economies in order to supervise and promote new forms of financial intermediation backed by FinTechs while preserving regional financial stability.
Finally, it will be the place to discuss the conventional, legal and regulatory system for the protection of consumers of financial products and services, and to determine the relevant guidelines for strengthening it.