LIVE FROM GSMA NFC & MOBILE MONEY SUMMIT 2012: Implementing mobile financial services in developing markets requires flexibility in response to regulatory issues, representatives from Bangladeshi operator Grameenphone and payment platform Monitise said today.
 
Delwar Hossain Azad, head of financial services for Grameenphone, explained that when the operator started to offer mobile financial services in 2006 – including ticketing and mobile wallet functionality for bill payment – banks were leading the development of the sector with little in the way of regulation.
 
But the arrival of a comprehensive regulatory framework at the end of 2011 prompted the operator to reconsider its position. “Regulations are the key decision maker of allowing any business model,” said Azad.

Grameenphone turned to a more collaborative model in which it works closely with several banks and other organisations on areas such as business development, risk management and financial operations.
 
MD for emerging markets for Monitise, Prateek Shrivastava, spoke about the difficulties presented by regulatory issues when launching mobile financial services in Nigeria.
 
The country’s central bank required 16 entities to be registered to operate mobile financial services before commercial launches could take place to ensure competition. The result was that the pilot phase lasted 18 months, creating “confusion and chaos” for investors, according to Shrivastava.