Laos banking on mobile financial services
Laos banking on mobile financial services
Deepening and widening the reach of financial services to ensure every eligible citizen has access to a range of regularly needed financial products and services is one of the major agendas of the Lao government.
The issues were outlined at a workshop on ‘Developing Client Centred Branchless and Mobile Financial Services in Laos' held yesterday in Vientiane.
“The Bank of the Lao PDR (BOL) is committed to the agenda of financial inclusion by way of enabling regulations and policy directives to support various stakeholders in the rollout of branchless and mobile financial services,” the BOL's Financial Institution Supervision Department Director General, Dr Akhom Praseuth said.
Branchless banking and mobile financial services can transform access to financial services and bring many more citizens and residents into the fold of the formal financial sector, according to a handout.
“Financial inclusion through the banking sector, and non-bank institutions, including mobile operators, retail companies and so on, is the corner stone of our efforts to reduce poverty; enhance economic development; and to achieve equitable growth for all the segments of our population,” Dr Akhom, who is also the Making Access to Finance More Inclusive for the Poor People (MAFIPP) Project Director, said.
MAFIPP is an UN Capital Development Fund (UNCDF) sector programme in Laos which seeks to increase access to financial services by low-income households and micro entrepreneurs on a sustainable basis, with its main funding from AusAid.
Innovations in technology and participation of many intermediaries – financial institutions, mobile network operators, retailing companies – is making it possible to extend the reach of financial services and products to Lao people who currently don't use or rarely use banking services, and this can be done cost effectively for the service providers and intermediaries.
“BOL is committed to enabling this and are making all the efforts to encourage and stimulate participation of various institutions, while ensuring the interests of the consumers are protected,” Dr Akhom said.
The Lao government recognises the vital role the financial sector plays in the national economy and therefore expansion of financial services is one of the key priorities.
BOL is drafting regulations on retail payments for banks and non-banks to engage in mobile-based payments.
This is a significant step towards developing non branch based channels and the use of technology to enhance the access and outreach of financial products and services.
BOL is working towards setting up an enabling environment, allowing players to submit applications and to test pilots approaches, in close collaboration with UNCDF and MAFIPP.
It is committed to an agenda of financial inclusion by way of enabling regulations and policy directives to support various stakeholders in the rollout of branchless banking.
“However we need to define the appropriate financial products and services meeting customers' needs and the models and frameworks that are balanced in terms of consumer needs, financial literacy, consumer protection, risk mitigation and aligned to our long term vision,” Dr Akhom said.
The workshop was attended by officers of banks, mobile and telecommunication companies, retail networks, financial industry associations and donor organisations.
It was to facilitate organisations and institutions design appropriate financial product and services based on digital technology for under-served and un-served customers.
vientiane times
