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 sector.
The financial crisis, in particular that of 2008, marked a strengthening of the more restrictive international financial regulation ex post, which led to the development of “shadow banking” or “shadow banking”.
In fact, in the grip of growing prudential constraints, the bank no longer appears as the privileged interlocutor in the mobilization of savings and in financing 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 in saving and financing of the private sector thanks to a diversification of banking and financial products and services, sometimes even under the impulse of banks.
New forms of intermediation have arisen, with the emergence of new players, in particular non-banks, whose organizational and operational model, different from that of banks, transforms the classic model of banking and financial intermediation.
These new entrants rely heavily on new technologies to offer alternative solutions that allow traditional banking sectors to better manage their exposures, in particular to credit risks, and to diversify them in particular by resorting to the outsourcing of these risks, from now on onwards charged to structures dedicated to the financial markets, in particular through securitization.
The economic model of these new entrants, fundamentally rooted in technology, the Internet and mobile telephony, has allowed a diversification of the supply and distribution channels of banking and financial products and services as well as sources of financing and investment, through crowdfunding platforms. , the issuance of digital assets, cryptocurrency has become a reality under the control of some jurisdictions in which an embryonic regulation has been adopted to promote this way of financing start-ups as well.
These developments in the sector are closely followed by the regulators of the banking and regional financial markets who, through various initiatives, associate most of the stakeholders interested in forward-looking reflections, in particular entities, public administrations, banks, Intermediation Management (SGI), Microfinance institutions , insurance, telecommunications, service providers, fintech, etc.
In addition, the COVID-19 pandemic has also given new impetus to the depersonalization of customer relationships 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 significantly 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 13 December 2010 establishing the conditions for exercising the activities of intermediary in banking operations in the WAMU, etc. ).
As part of the developments, the General Regulation of the Regional Financial Market under the aegis of the Regional Council for Public Savings and Financial Markets (CREPMF), which offers tools to mobilize savings for private sector financing, now opens a door to banks who can carry out transactions usually reserved for financial market professionals.
Under the effect of the increase in prudential constraints and the penetration of new technologies, the philosophy and physiognomy of financial intermediation raise a fundamental question:
“Is the banking sector of WAEMU member countries or even of Africa sufficiently robust to accommodate the structural changes taking place and absorb the qualitative impact of digital in the diversification of supply channels for products and services? financial? “
Since fintechs have become essential players, it is appropriate to question the structural, organizational and functional models of the new players and to situate their competitive advantages with respect to banks and financial market players.
The protection of consumers of financial products and services is also a crucial issue in building investor and consumer confidence.
Overall, it is worth focusing on the adequacy of our regulatory environment for these changes in traditional brokerage models with the development of blockchain, cryptocurrency, artificial intelligence, big data, etc.
It is therefore a question of retracing the evolution of banking and financial intermediation in WAMU member countries and discussing its impact on the dynamics of financial inclusion as well as its real added value in financing the regional private sector.
Discussions could focus on:
- how to make effective the protection mechanism and the guarantees recognized to 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 repayment of the loan and / or in the event of losses?
- the contribution of technologies and innovations in the dynamics of the supply 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 with all the players in the aforementioned sectors (Administrations, banks, management and brokerage companies, financial institutions and Payment, 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 on the dynamics of financial inclusion and financing of the regional private sector.
It will allow to anticipate the structural and functional changes of the sector as well as the developments, at international level, to define the financial intermediation model adapted to the structure of our economies in order to oversee and promote new forms of financial intermediation supported by FinTechs while preserving financial stability. regional.
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 to strengthen it.