2018 - 2019 Edition of Citi Perspectives for the Public Sector

Citi Perspectives for the Public Sector |  2018-2019 23 Banking without Barriers: Digitization across Africa, Middle East and Asia A technological transformation is underway in banking services in emerging markets. While all markets are growing rapidly, there are distinct trends across different regions, with Africa focusing on mobile, the Middle East embracing fintech, and Asia reaching a tipping point with a preponderance of wallets for instant payments and merchant settlement. “Universal access to financial services is within reach — thanks to new technologies, transformative business models and ambitious reforms,” said the President of the World Bank Group, Jim Yong Kim. For many in the emerging markets, such as Africa, the Middle East and Asia Pacific, where digital financial services are most needed, the change cannot come soon enough. In advanced economies, new technologies have disrupted certain business models and industries. Their application has been less dramatic in emerging economies, although there are notable exceptions, such as Kenya’s M-Pesa. But while these transformations have taken time to mature, and some economies are still lagging, some observers believe a tipping point is near. A number of countries are rapidly cultivating a supportive ecosystem for digital financial services to prosper, based on a strong partnership between the public and private sector and more specifically commercial banks, mobile network operators, fintechs, central banks and regulators. Citi’s Digital Money Index report identifies four essential pillars as underpinning digital money readiness. • Government and market support • Financial and technology infrastructure • Propensity to adopt • Presence of digital money solutions Both the importance — and the level of advancement — of each pillar varies considerably by region. This article explores these pillars with a specific focus on recent developments in digital money solutions and digital financial services in Africa, Middle East and Asia. Dustin Oliver Ling Global Public Sector Banking, Citi Esther Chibesa Head of TTS Sub- Saharan Africa Payments & Receivables, Citi David Aldred Head of TTS Middle East & North Africa Regional Sales, Citi Morgan McKenney Citi TTS Asia Pacific Core Cash Management Regional Head Sources: GSMA: The Mobile Economy Reports: Sub-Saharan Africa, West Africa, Middle East and North Africa. 2017 and 2018 editions. Forbes: Fintech is the new oil in the Middle East and North Africa by Suparna Dutt D'Cunha December 11, 2017 The World Bank Group 2018 Global Findex Survey