The structure of banking and financial intermediation has changed greatly in recent years, to adapt to the changes resulting from deregulation and liberalization of the industry.
The financial crisis, especially in 2008, marked the strengthening of ex-post international financial regulations, which became more stringent and led to the formation of “shadow banking” or “shadow banking” activity.
Indeed, in the grip of increasing prudential constraints, the bank no longer emerges as the privileged interlocutor in mobilizing private sector savings and funding.
The qualitative evolution of this intermediation is leading to a collapse of banking monopolies and financial markets with the mobilization of resources or even savings and financing of the private sector thanks to a diversity of banking products and services. and finance, sometimes even under the force of banks.
This has resulted in new forms of intermediation, with the emergence of new players, particularly non -banking ones, whose organizational and operating models, different from banks, are changing the classic pattern of banking intermediation and financial.
These new entrants rely heavily on new technologies to offer alternative solutions that enable traditional banking sectors to better manage their exposures, particularly to credit risks. , and to diversify them in particular by using the outsourcing of these risks, henceforth are borne by dedicated structures in the financial markets, especially through securitization.
The economic model of these new participants, which is primarily rooted in technology, Internet and mobile telephony, has enabled a diversity of channels for the supply and distribution of banking and financial products and services as well as also sources of financing and investment, through crowdfunding platforms, the issuance of digital assets, cryptocurrency has become a reality under the control of some jurisdictions where embryonic law has been adopted to also promote the approach it’s funding start-ups.
These developments in the industry are closely monitored by banking and regional financial market regulators who, through several initiatives, link most of the players concerned with future reflections, to specifically bodies, public administration, banks, Intermediation Management (SGI), Microfinance institutions, Insurance, telecommunications, service providers, fintech, etc.
Moreover, the COVID-19 pandemic also gave new impetus to the depersonalization of customer relationships in the growing development of “online banking” and the “online stock market”, as well as distant transactions. .
It should be noted that within WAMU, the field of banking regulation has greatly expanded with the adoption of new directives and instructions of the Central Bank. (Instruction No. 008-05-2015 on the Issuance of Electronic Money, Instruction No. 15-12/2010/RB of 13 December 2010 which sets out the conditions for conducting intermediary activities in banking transactions in WAMU, etc.).
As part of these 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 private financing sector, is now opening a gateway to banks that can conduct trades typically reserved for financial market professionals.
Under the impact of raising cautious barriers as well as the penetration of new technologies, the philosophy and physiognomy of financial intermediation raises a key question:
“Is the banking industry of WAEMU member countries or even Africa strong enough to accept the structural changes being undertaken and capture the positive impact of digital in diversifying channels for the supply of products and service? financially? »
Since Fintech has become an important player, it is appropriate to question the structural, organizational and functional models of new players and place their competitive advantages in relation to banks and financial market players.
Consumer protection of financial products and services is also an important issue on the foundation of investor and consumer confidence.
In general, it is worth focusing on the adequacy of our regulatory environment on these changes to traditional patterns of intermediation in blockchain development, cryptocurrencies, artificial intelligence, Big data, etc.
Therefore, it is a question of re -monitoring the evolution of banking and financial intermediation in WAMU member countries and of discussing its impact on the dynamics of financial integration as well as its real added value to private sector funding. of the region.
Discussions may focus on:
- how to make effective the protection mechanism and the guarantees recognized for consumers of banking and financial products in the WAEMU area?
- what mechanism should be put in place to ensure the repayment of investors in case the repayment of the loan is delayed and/or in the event of losses?
- the contribution of technologies and innovations to 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 various regulatory authorities of banking, finance, insurance and more specifically the telecommunications sectors as well as all players in such 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 and payment services on the dynamics of financial integration and private sector funding of the region.
This will make it possible to anticipate structural and functional changes in the industry as well as developments, worldwide, to define the model of financial intermediation adapted to the structure of our economies to facilitate and promote new form of financial intermediation supported by FinTechs while maintaining the financial stability of the region.
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 its strengthening.