Banks Warn On Mobile Money Transfers

Posted to the web 13 October 2008 Mark Kapchanga Nairobi The banking fraternity is crying foul over what it described as unfair and increasing competition from money transfer operators. The industry says the operators are enjoying privileges similar to those extended to deposit taking institutions despite not being covered by the same regulatory regime. "Currently, there is no legal framework within which these entities provide their services despite behaving like current account institutions," says John Wanyela, executive director of the Kenya Bankers Association. "If these operators want to join the financial sector, they have to be properly licensed." The bankers are calling on the government to subject the services to prudential regulations "for robust and secure movement of funds across the economy." Under the proposed... [read full story]