There has been a renewed call for collaboration among African States in a bid to foster cross-border payments geared at scaling intra-regional challenges and creating opportunities for growth.
In an effort to seek solutions and drive innovation and collaboration within the fintech sector, the Fintech Association of Nigeria (FintechNGR), in partnership with the Africa Fintech Network (AFN), hosted an impactful webinar recently.
The discuss was themed “Scaling Cross-Border Payments and Remittances,” and brought together industry leaders to discuss the challenges and opportunities in advancing cross-border financial transactions.
Speaking at the Webinar, Director of Advocacy and Capacity Development at AfricaNenda, Jacqualine Jumah, highlighted key trends in payment volumes across Africa.
She noted that the continent has witnessed a significant surge in digital payment volumes, driven by increased mobile penetration and the adoption of fintech solutions.
She however cautioned that while the growth is encouraging, the continent must address infrastructural and regulatory challenges to sustain this upward trajectory.
Commenting on issues of security, fraud, data privacy, and the need for strategic partnerships across Africa, Country Director of Chipper Cash, Abiodun Animashaun, emphasised the critical need for robust anti-fraud measures in cross-border transactions.
He maintained that the success of these measures will rely heavily on global collaboration between the private and public sectors, stressing that this cooperation is essential for enhancing the security and efficiency of cross-border payments.
Lead Consultant at JFourth Solutions based in Singapore, Ho Chee Wai, advocated for collaboration with established players in target markets, noting that such partnerships are crucial for easing the complexities associated with regional expansion.
He emphasised that such alliances are not only beneficial for entering new markets but are also vital for accelerating the setup and operation of financial services across Africa.
The Forum highlighted the potential of a unified digital identity system in Africa. The panelists explored the use of mobile phones and biometric information to create blockchain-based ID tokens, which could significantly streamline Know Your Customer (KYC) processes, and suggested that this approach would be more efficient and secure compared to traditional ID methods, which often face significant logistical challenges.
Similarly, President Hong Kong Fintech Industry Association, Paul Li, addressed the challenges posed by varying privacy laws on the international transfer of data.
He noted that while technology such as AI can significantly aid in fraud prevention, the infrastructure required for such solutions is often hampered by these regulatory differences.
Li, called for a more unified approach at the governmental level to facilitate smoother data transfers, suggesting that mobile based solutions and blockchain technology could offer more streamlined and secure alternatives for managing digital identities.
The webinar underscored the need for continued dialogue, collaboration, and innovation to overcome the challenges in cross-border payments and remittances. It also set the stage for further discussions on blockchain technology, which will be explored in more depth during the upcoming Nigeria Fintech Week in October 2024.
These initiatives reaffirm FintechNGR and Africa Fintech Network’s commitment to fostering an innovation-driven environment not only in Nigeria, but across the entire Africa fintech ecosystem. By leveraging technology and strategic collaborations, both organizations continue to play a pivotal role in enhancing efficiency, security, and accessibility in the financial services sector.
The webinar, which had average of about 200 participants, featured key insights from seasoned practitioners and experts from across Africa, Hong Kong and Singapore.
The dialogue covered the opportunities and challenges to scaling cross-border payments to boost livelihood and intra-Africa trade as well as trade between Africa and the rest of the world; leveraging the development in fintech and wider digital finance space.
