An Expository Overview of the Financial Integrity Risk Associated with the Relaxation of Financial Regulation to Promote Financial Innovation through Mobile Money Services in Zimbabwe
Keywords:
Financial regulation; mobile money services; financial integrity; financial innovation; financial sectorAbstract
The rationale for financial regulation is to promote and maintain financial integrity in the financial sector of any country. In this regard, it is important to note that the need for access to formal financial services such as credit, insurance and banking is being addressed by financial technology (fintech), particularly mobile money services (MMS) in Zimbabwe. However, the relevant laws in Zimbabwe do not expressly provide for fintech innovation. Moreover, the Zimbabwean policy makers have grappled with the constant and rapid growth of fintech. The Zimbabwean policy makers have struggled to strike a balance between maintaining financial integrity and creating an environment that promotes financial innovation. Thus, the Zimbabwean policy-makers have a tricky responsibility of safeguarding the stability of the financial sector while simultaneously promoting financial innovation and new financial services and products. Given this background, this article investigate the challenges associated with the relaxation of financial laws to promote financial innovation such as MMS in Zimbabwe.
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Reserve Bank of Zimbabwe Act 5 of 1999 [Chapter 22:15] as amended.
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