Africa’s Economic Information for the Benefits of Senegal Oil

The structure of banks and financial intermediaries has changed significantly in recent years to adapt to the changes resulting from deregulation and liberalization of the industry.
The financial crisis, especially the 2008 financial crisis, showed the tightening of international financial regulations after the fact, which was more restrictive and led to the development of “shadow banking” or “shadow banking” activities.
Indeed, banks are no longer seen as privileged interlocutors in savings mobilization and private sector financing amid increasing health constraints.
This qualitative evolution of intermediation, sometimes even under the driving force of banks, is due to the diversification of banking and financial products and services, resource mobilization, or bank monopoly and financing in private sector savings and financing. It leads to market erosion.
This has created new forms of intermediation and the emergence of new players, especially non-banking players whose organizational and operational models are different from banks and are transforming the classic pattern of banking and finance.
These new entrants provide alternative solutions that allow the traditional banking sector to better manage their exposure to credit risk, and in particular to diversify them by relying on outsourcing of these risks. Because of this, we rely heavily on new technologies. Especially the financial market due to securitization.
These new entrants’ economic models are basically rooted in technology, the Internet and mobile phones, and through crowdfunding, the supply and distribution of banks and financial products and services, as well as the channels of funding and investment sources. It has made diversification possible. Platforms, digital asset issuance, and cryptocurrencies have become a reality under the control of certain jurisdictions where early legislation was adopted to facilitate this method of financing start-ups.
These developments in the industry have been closely monitored by banking and regional financial market regulators, and through several initiatives, most of the players involved in positive reflection, especially organizations, governments, banks and intermediary management (SGI). ), Associates microfinance. Institutions, insurance, telecommunications, service providers, fintech, etc.
In addition, the COVID-19 pandemic has provided new impetus for the development of “online banking” and “online stock markets” and the depersonalization of customer relationships associated with remote transactions.
Within WAMU, it should be noted that the adoption of new directives and directives by the central bank has significantly expanded the area of ​​bank regulation. (Order No. 008-05-2015 regarding the issuance of electronic money, Order No. 15-12 / 2010 / RB, etc. of December 13, 2010, which sets the conditions for the activities of intermediaries in banking transactions at WAMU).
As part of its development, the general rules of regional financial markets, with the support of the Public Savings Financial Markets Regional Council (CREPMF), which provides a means to mobilize savings for private sector financing, are now commonplace. Is a bank that can carry out transactions reserved for financial market professionals.
Under the influence of raising soundness constraints and the penetration of new technologies, the philosophy and physiognomy of financial intermediation raises fundamental issues.
“Is the WAEMU member country or the African banking industry strong enough to embrace the ongoing structural changes and absorb the qualitative impact of digital on the diversification of supply channels for goods and services? Financial? »» »
As Fintech has become an integral player, it is appropriate to question the structural, organizational and functional models of new players and establish a competitive advantage in their relationships with players in banks and financial markets. am.
Consumer protection of financial products and services is also an important issue in building the trust of investors and consumers.
Overall, it is worth focusing on the adequacy of the regulatory environment for these changes in traditional mediation patterns due to the development of blockchain, cryptocurrencies, artificial intelligence, big data and more.
Therefore, the challenge is to track the evolution of banks and financial intermediaries in WAMU member countries and discuss the impact of financial inclusion on dynamics and the true added value of local private sector financing.
The discussion can focus on:

  • How to make effective protection mechanisms and guarantees recognized by consumers of banks and financial products in the WAEMU region?
  • What mechanism do you need to implement to ensure investor payments in the event of late loan repayments or losses?
  • The contribution of technology and innovation to the dynamics of banking and financial services delivery?
  • What impact does intermediary have on the distribution of banks, financial products and services, and even on economic growth?