The RegtechAfrica Magazine (Spring Edition Vol. 3)

Interview with Ambassador Maha Jouini (Head, Africa Centre for

Raoul Herborg, Managing Director, CBDC Unit at Giesecke+Devrient (G+D)

Editor's

Note

Finally, we are itching close to the long awaited RegTech Africa Conference 2023, scheduled to hold between 24th – 26th May at the Oriental Hotel in Lagos – Nigeria

Registration for in-person corporate participation is on a first-come, firstserve basis with limited slots available. For registration and partnership opportunities, please visit: www.regtechafricaconference.com or email info@regtechafrica.com; as we look forward to hosting you in Lagos.

The adoption and use of Artificial Intelligence (AI) are rapidly increasing around the world. In Africa, AI creation and implementation are transforming lives and cultures in a variety of ways including economically, socially, and politically. These developments are always difficult to comprehend and predict and they are becoming more so in the post COVID-19 pandemic era.

The adoption and use of these modern technologies in the African context are currently low due to some emerging challenges Consequently, these difficulties may have a direct influence on African economic development In this special Spring Edition, Maha Jouini (Head, Africa Centre for AI and Digital Technology) shares insights on some of the challenges facing the adoption of AI technologies in Africa which include skills acquisition, lack of structured data ecosystem, ethics, government policies, insufficient infrastructure and network connectivity, uncertainty, and user attitude. We look forward to your feedback, especially if you ’ ve got news or great article you would like to share. For now, stay safe!

EDITORIAL TEAM

Disclaimer:

Cyril Okoroigwe Chief

Executive Officer

Obiyomi Blessing

Chief Tech Officer

Joy Dieli

Business Development Director

Alabi Opeyemi

Social Media Analyst

Samuel Olaniran

Creative Designer

Creative Team

Smith Okoro

Oluwatimilehin Olatejumo

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The views, thoughts and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of RegTech Africa

CYRIL OKOROIGWE

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Global: 15 Best B2B eCommerce Platform in 2023

State of the laws and regulations governing AI in Africa: Are government authorities enforcing and monitoring compliance?

As the world ushers in the Fourth Industrial Revolution (4IR) – which is characterized by increasingly blurred lines between the digital, biological, and physical worlds, regulators are coming to grips with the opportunities of emerging technologies such as Artificial Intelligence (AI), robotics, and the Internet of Things These and other emerging technologies offer exciting possibilities; in theory, they might allow us to galvanize unprecedented socio-economic change and democratise access to services such as the Internet, education and healthcare AI is poised to impact Africa in several ways It has been hailed by many as a transformative force for African societies, promising to reduce inequality, alleviate poverty, and improve access to public services like health and education But the deployment of these powerful technologies is still in a fledgling phase on the continent and there are significant challenges to overcome in building capacity to fully harness their potential In this interview, Maha Jouini (Head, Africa Centre for AI and Digital Technology), shares unique insights on the current state of the laws and regulations governing AI in Africa and how AI-related data protection and privacy issues are being addressed

Q: Which areas of AI development are you most excited about and which do you think will offer the greatest opportunities?

First of all AI is to Mimic Human intelligence by machine Intelligence is faculty proper to human being, where we as human are able to make decisions which suit us best even in complexes situation. AI has many areas of development such as Deep learning, Natural language processing, Computer Vision, Robotics, Automation and so on. From my side I encourage my fellow Africans to embrace Machine Learning which consists of letting algorithms discover “patterns”, namely recurring patterns, in data sets. This data can be numbers, words, images, statistics. Anything that can be stored digitally can serve as data for Machine Learning. By detecting patterns in this data, algorithms learn and improve their performance in performing a specific task. In short, machine learning algorithms autonomously learn to perform a task or make predictions from data and improve their performance over time. Once trained, the algorithm will be able to find patterns in new data.

Q: What is the current state of the law and regulation governing AI in Africa? How would you compare the level of regulation with that in other jurisdictions

Despite the development that the world has known in artificial intelligence, the world has moved to the era of the fourth industrial revolution, where advanced robots and algorithms contribute to economic prosperity, support trade, and provide services to humanity. Africa still faces challenges to integrate artificial intelligence and technology into policies

Oxford AI worldwide readiness Index shows the gap between USA ranked as first and Mauritius considered as African flagship country in AI policy, ranked 45. There are three only African countries whose scores were higher than the global average of 47.42. Mauritius and Egypt are the only countries with an official National AI Strategy that

sets out a four-year plan from 2018-2022 to guide progress in this area In mid-2021, Egypt launched its national AI strategy, christened “Artificial Intelligence for Development and Prosperity” making clear ambitious development goals and economic growth

In Kenya, an AI task force of 11 experts drawn from other stakeholders, government agencies, the private sector and academia is expected to provide a roadmap on how the East African nation can apply AI “These initiatives can be seen to indicate a move towards more structured governance around AI in the region,” according to the report

The report adds, “The main priority for many subSaharan African countries is thus to develop talent and build capacity Only then can strategies be developed and implemented to guide AI readiness and ethical considerations of AI Tunisia (45 71), Morocco (42 38) and Ghana (40 19) are also among the top African countries that show high prospects of leveraging AI to boost governance and spur development

While Botswana and Ethiopia do not feature among Africa’s top ten countries in terms of AI readiness score, the report points to significant directions these economies are taking towards building their AI ecosystems.

For example, China has three AI policy approaches, the first one is led by the Cyberspace Administration of China, with a focus on rules for online algorithms and public opinion, Second belongs to the China Academy of Information and Communications Technology and they are mainly working on Tools for testing and certification of “trustworthy AI” systems. The third one is led by the Ministry of Science and Technology they are focusing on establishing AI ethics principles and creating tech ethics review boards within companies and research institutions.

USA last year launched the “Blueprint for an AI Bill of Rights” in order to MAKE AUTOMATED SYSTEMS WORK FOR THE AMERICAN PEOPLE. Which includes five principles:

Which includes five principles: That people should be protected from systems deemed “unsafe or ineffective;” that people shouldn’t be discriminated against via algorithms and that AI-driven systems should be made and used “in an equitable way; ” that people should be kept safe from abusive data practices”, “where appropriate” and get help from a person instead of a computer.

At European Union, in 2018 Commission of EU published the European AI strategy which aims to ensure that AI is human-centric and trustworthy. In April 2021, the Commission presented its AI package, including Communication on fostering a European approach to AI; a review of the Coordinated Plan on Artificial Intelligence (with EU Member States); a proposal for a regulation laying down harmonised rules on AI (AI Act) and relevant Impact assessment.

I believe that lack of resources and good infrastructures, peace and security challenges, lack of African expertise, and delays in launching national plans for artificial intelligence and understanding, are the areas of integrating artificial intelligence in Africa.

According to UNCTAD Africa has made significant strides in adopting data policy frameworks and laws. By December 2022, 33 African countries (60% of the continent), had implemented data protection legislation, up from 20 countries (36% of the region) five years ago.

Q: What are the general policies and strategies for managing the ethical and human rights issues raised by the deployment of AI?

General policies and strategies for AI deployment based on Fairness, Reliability and Safety, privacy and security, inclusiveness, Transparency and Accountability, these strategies urge the globe to use AI power for common good

Q: Have governments across the continent started releasing national strategies on AI? Are there any national efforts to create data-sharing arrangements? What trends do you see?

To compare, I think Africa still lags behind and we need to invest more in AI research and rise the debate about the future of Africa in the age of the Fourth industrial revolution. At north African level Egypt has already published AI National policy, Tunisia is supposed to have launched a National AI roadmap since two years, but have not been able to due to political crises the country face in recent years

Google launched Google’s AI principles, based on 7 principles such as AI must Be socially beneficial, AI has to avoid creating or reinforcing unfair biases, AI has to be built and tested for safety, AI framework must be Accountable to the people, AI must incorporate privacy design principles, AI must uphold high standards of scientific excellence So, AI has to be made available for uses that accord with these principles

Q: What are the general policies and strategies for managing the national security and trade implications of AI? Are there any inter-trade restrictions that may apply to AI-based products?

First, Artificial intelligence plays a key role in favour of national security such as: Optimize the processing of data related to specific defence sensors (radar, sonar, electronic warfare equipment, etc.). Prepare the missions upstream (more immersive and efficient simulators, planning, etc.). Promote the operational variations of R&T work in AI.

Thus, the Ministry of Defence in France assigns a budget of €100 million/year on average over the LPM period (Military Programming Law) 2019-2025 for studies and research on AI. Also Recruiting 200 AI specialists by 2023.

Moreover, AI is already changing the worldwide value chain as long as it can be used to improve predictions of future trends. In the recent OECD report on Artificial Intelligence and international trade published in April last year, OECD identifies four separate phases in an AI system’s lifecycle

Design, data and modelling including the planning and design of an AI system, data collection and processing, as well as model building and interpretation

Verification and validation including executing and fine-tuning models

Deployment into live production, including piloting, compatibility assessment, ensuring regulatory compliance, managing organisational change, and evaluating user experience

Operation and monitoring, including continuous monitoring of outputs in light of the desired objectives

And in the same report, OECD concludes that “Trade, and by extension, trade policy, can play an important role in each phase through facilitating access to goods, services, people and data Other policy disciplines, such as the protection of intellectual property rights or international standards, would also be of importance”

This link between AI and trade has to be interpreted into international legislation, rules, regulations and ethics in order to ensure that AI is used for Humanity

Q: How are AI-related data protection and privacy issues being addressed? Have these issues affected data sharing arrangements in any way?

Referring to the Henrich Foundation report on AI and international trade, there are trade challenges ahead for AI development like: As the access to data for AI, Privacy and AI (Reducing the flow of personal data across borders is one of the main reasons why governments are currently doing so however strong privacy protections will be required if people are going to be able to trust living their lives online, which includes providing immense amounts of personal data for AI learning ) Protection of source code (Requiring source of Code was identified by the Office of the United States Trade Representative (USTR) as part of the broader issue of forced technology transfer in China As AI is based on algorithms, conditioning market access on providing access to source code operates as an international trade barrier that reduces the diffusion of AI globally) Intellectual property protection and AI, AI and trade in goods

According to UNCTAD Africa has made significant strides in adopting data policy frameworks and laws. By December 2022, 33 African countries (60% of the continent), had implemented data protection legislation, up from 20 countries (36% of the region) five years ago.

Q: How are government authorities across jurisdictions enforcing and monitoring compliance with AI legislation, regulations and practice guidance? Which entities are issuing and enforcing regulations, strategies and frameworks with respect to AI?

AI governance is a new discipline, identified as “ a system of rules, practices, processes, and technological tools that are employed to ensure an organization’s use of AI technologies aligns with the organization’s strategies, objectives, and values which fulfil legal requirements, and meets principles of ethical AI followed by the organization.”

EU governments highlights that AI have to be human centric, Last year USA inaugurated the National Artificial Intelligence Advisory Committee (NAIAC), which will be tasked with advising the Biden administration on how to proceed with national AI governance efforts.

In December 2021, China released the Position Paper of the Peoples' Republic of China on Regulating Military Applications of Artificial Intelligence (AI), calling on parties to observe national or regional ethical norms for AI. At African level, no country has yet developed and adopted dedicated AI legislation. The closest yet is Mauritius, which implemented licensing procedures for entities that provide investment and portfolio management services enabled by artificial intelligence in 2021

Referring to AI Governance in Africa report 2022, there are only 11% of African countries – six in total – explicitly recognize AI as a priority in their National Development Plans, with a further four countries partially doing so

Q: What have been the most noteworthy AI-related developments over the past year in your jurisdiction?

The most noteworthy AI-related development is the use of Artificial intelligence in Healthcare: where machine learning are used as models to research medical data and uncover insights to improve health outcomes AI algorithms and other AI-powered applications are helping to support healthcare professionals in clinical settings and ongoing research In the field of medical imaging, AI tools are used to analyse, scan, x-ray, MRIs and other images to detect lesions or other features that a human radiologist might miss

Q: Which industry sectors have seen the most development in AI-based products and services in your jurisdiction?

ChatGPT became the most powerful AI system in the world. It is a type of artificial intelligence (AI) that is designed to understand and generate natural human language. Referring Forbes journal “The power of GPT-3 cannot be overstated. It is built on 175 billion parameters, each of which can be adjusted to improve the performance of the AI model. It is trained on vast amounts of data, including websites, texts, books, articles and other content. It has been designed to understand and generate natural human language, allowing you to talk to it just as you would ask a friend a question

Since the launch of ChatGPT, European and Chinese Universities started to develop regulations and exams to enhance plagiarism checker Noam Chomsky, well-known public intellectual said:” “ChatGPT could undermine education through high-tech plagiarism”

Q: Are there any pending or proposed legislative or regulatory initiatives in relation to AI?

April 2021 European Commission published the Proposal for a Regulation on AI in which aims to implement the development of an ecosystem of trust by proposing a legal framework for AI addressing issues such as prohibited practices for the sector, classification of high-risk IA systems or transparency obligations

Following the Commission’s proposal the regulation could enter into force late 2022/early 2023 in a transitional period The second half of 2024 is the earliest time the regulation could become applicable to operators with the standards ready and the first conformity assessments carried out

Q: What do you see as the greatest challenges facing both governments and society as a whole in relation to the deployment of AI?

I believe that the transfer of Technology is one of the major challenges to African governments and society. Because we Africans import technology and do not manufacture it. This technological dependency will harm our future and make African data to be under the control of foreign Tech companies.

The lack of home-grown Technology is threatening our African digital sovereignty as Pierre Belanger says: “Digital sovereignty is control of our present and destiny as manifested and guided by the use of technology and computer networks.”

About

Maha Jouini Founder and Head of African Center for Artificial Intelligence and Digital Technology

Author and founder the African Center for Artificial Intelligence and Digital Technology Based in Mauritania , She holds a master degree from Tianjin (China) University of Education and Technology, in the field of AI and new technology she Published several research and analytical articles in AI policies and the future of work in Africa in the AI age Fellow researcher at Center for AI and Digital Policy CAIDP

She is the African Regional Coordinator at the Global responsible AI hackathon 2023 launched by Woman in AI Ethics Initiative

Author , Speaker and Analyst, in her any publications and conferences, She highlights the Technology impact on the African economy and how technology can be a leverage for Woman and youth inclusion She advocates for Free movement of person in Africa and The African Continental Free Trade Area (AFCFTA) Through leading campaign and delivering training sessions to African youth

Q: What best practices would you recommend to assess and manage risks arising in the deployment of AI?

African policy efforts have to be built on a secure and inclusive infrastructure to support the local development of AI Empowering policy-makers and workforces on the continent in the field of AI and related data and technology skills Advocating for responsible use and development of AI in Africa and urging African government to Launch African AI Ethics Guidelines like Advancing African Value Systems and Principles in AI Ethics such as in Windhoek Statement on Artificial Intelligence in Southern Africa, Windhoek (Namibia), 9 September 2022

AI should emphasise digital literacy and education, community beneficiation, holistic reskilling programs, access to basic digital infrastructure, protection of minority ethnic communities and promotion of diverse forms of knowledge in developing AI solutions

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Cross-border payments have reached an ‘inflection point’.

G20 roadmap update sets new out practical initiatives

The G20 roadmap for enhancing cross-border payments has undergone a radical overhaul. The Bank for International Settlements’ Committee on Payments and Market Infrastructures believes that the roadmap is at an inflection point and is moving into a new phase of pursuing practical implementation.

The 19 building blocks of the comprehensive approach that defined the roadmap’s first two years have been replaced by three interconnected themes: payments system interoperability and extension; legal, regulatory and supervisory frameworks; and cross-border data exchange and messaging standards

Many of the original building blocks can be mapped to these three themes, but the update reflects a more focused, targeted approach to tackling the problems of high costs, low speed, insufficient transparency and lack of access

The new G20 roadmap has laid out concrete actions to be carried out over the next few years with the aim of achieving the quantitative targets agreed upon by the CPMI in 2021

OMFIF held a roundtable to discuss these aims with Thomas Lammer, deputy head of the secretariat CPMI, Nasreen Quibria, senior director and head of crossborder policy engagement at Visa, and Saskia Devolder, strategic programme director for crossborder payments at Swift

One of the CPMI’s main priorities in the roadmap is to promote fast payments systems that can be easily interlinked. The CPMI will establish a forum where central banks can share information and experiences on the process of upgrading their payment systems in an effort to ensure that new fast payments systems and central bank digital currencies are developed with the international dimension in mind.

The CPMI also plans to host a workshop to showcase existing interlinking arrangements, in the hope that the technical and operational prerequisites become widely known and incorporated into the development process for new systems.

The CPMI does not intend to do all the work itself. Partnerships with the private sector are an important part of the strategy for improving crossborder payments.

This is particularly in evidence with regard to the promotion of the ISO 20022 framework. While the framework has already been widely adopted for some types of payments, particularly those processed by Swift, there is more work required to extend it and develop a range of application programming interfaces to ensure that ISO 20022 payments are as accessible as possible to the broadest range of users

To help with this, the CPMI and Payments Market Practice Group have established a joint task force, which is working to ensure that payments system operators and market practice industry groups align with the ISO 20022 harmonisation requirements on schedule.

Work also needs to be done to smooth some of the frictions in the patchwork of various know your customer, anti-money laundering and countering the financing of terrorism regulations in different jurisdictions. And payment providers face challenges in obtaining licences to operate across multiple jurisdictions.

These frictions make it more difficult for providers to offer their services to as many users as possible, which reduces competition in the market and worsens outcomes for users. Fixing this is one of the actions prescribed by the roadmap.

The Financial Stability Board has set up a working group to develop recommendations to make the supervisory requirements for institutions providing cross-border services more consistent This will be followed by standards-setting bodies adapting their guidance to conform to the FSB’s recommendations and a further period for national authorities to evaluate how to change their own frameworks

Lewis McLellan is Editor of the Digital Monetary Institute, OMFIF

Four Driving Forces behind Crypto Adoption in Africa

THE DEVELOPMENT AND ACCEPTANCE OF DIGITAL CURRENCIES IN AFRICA HAVE BEEN TRULY MONUMENTAL

Although in 2022, the digital asset industry saw several high-profile breaches of trust and was largely characterized by volatility, the adoption of cryptocurrencies within the continent continued to grow.

There has also been a shift in reliance on traditional payment systems, creating a preference among young Africans for cutting-edge payment platforms over conventional ones

Africa, the second-most populous continent in the world with over 1 5 billion inhabitants, boasts a truly diverse and developing economy

According to Chainalysis, Kenya, Nigeria, South Africa, and Tanzania had among the highest rates of crypto adoption worldwide, ranking in the top 20 of the global adoption index

As Web3 real use cases continue to grow, it is critical to comprehend the factors that have fueled this expansion

Here are a few things to remember

Remittance Payments

Remittances are a major driver of the global economy, with billions of dollars moving around the world each year In Africa, remittances make up 1 3% of GDP and are expected to grow at an annual rate of 5 2% through 2025

The World Bank has estimated that there are about 400 million migrant workers in Africa, with about 50% of these migrants living outside their home country.

African households receive $100 billion in remittances each year – more than they spend on education and healthcare combined!

However, it is well known that several African nations now set a cap on the amount that can be transferred as well as charge steep rates.

As a result, the number of remittance payments

made using cryptocurrencies have been consistently increasing because of lower restrictions and fees, hence causing an upward scale in the crypto adoption rate as shown by Analysis

A recent study also shows that African cross-region transfers make up a more significant share of its cryptocurrency market than any other region globally, with Sub-Saharan Africa receiving over $ 48 billion of estimated remittances in 2019

Binance is aware of how increasingly people’s daily lives are being influenced by the world of blockchain and cryptocurrency as the Web3 market expands and so they continue to add new utilities and functionalities to enhance every aspect of their users ’ Web3 experience

For example, its recent product, Binance Pay – a contactless, borderless, and secure cryptocurrency payment technology, that ensures that users around the world can send and receive crypto across continents. Features such as this, provide increased accessibility of people’s own money whenever they need it and further highlight the user-centric character of digital assets.

Fiat Devaluation

In recent times, there has been a continuous trend of the devaluation of multiple African currencies, and this has invariably increased the value of the African crypto market

This is because cryptocurrencies have given them the ability to preserve their savings without h worry about inflation through stable digit currencies known as stablecoins

Owing to this, Binance has continued to b the most popular and widely recognized the African crypto market, where Africans bitcoins or exchange their currencies for stablecoins

International Trade

Cryptocurrencies have also grown to be a component of global trade as a result of t increasing acceptance in a variety of setti nations.

Before cryptocurrency, the cross-border p

bureaucracy was unquestionably a machine that prevented exchanges that could significantly benefit developing nations

Additionally, there is the difficulty of concluding international agreements using various currencies, a problem that is particularly prevalent on the African continent

Cryptocurrencies make it easier to transfer and receive money internationally, which is a gamechanging option for countries with underdeveloped banking infrastructure Since crypto-based transactions reduce the risk associated with international trading, safety concerns are also improved in this situation

The data speaks for itself and it is clear that Africans are beginning to adopt new technologies, albeit still early Considerable progress is also being made in the area of regulation and a stable regulatory environment will drive further support for innovation and solidify budding trust in the industry, leading to long-term growth.

Youth Interest and Education

Young people account for about 60% of the African population and by 2030, young Africans are expected to constitute 42% of global youth, according to the World Economic Forum African youth are eager to explore new opportunities to raise their level of living and generate income

It is impossible to separate the growth of cryptocurrencies in Africa from this group ’ s set of i d d id i h l Af i

recommendations to realize the potential of African e-commerce 5

According to IPAR, an institute for analysis and research on public policies in Rwanda, the process of digitizing economic activities must be facilitated and simplified This advice applies to other countries in sub-Saharan Africa

About

Idriss Linge is a Researcher at the Tax Justice Network, and a journalist working with the Ecofin Agency, a media agency specialising in financial and economic issues with a focus on Africa

He has been interested in questions surrounding tax for several years, which began when he analysed questions of taxation for a better distribution of mining revenues in his country, Cameroon, on behalf of civil society Idriss is also the producer the French-speaking Tax Justice Network podcast Impôts et Justice Sociale and is the author of several reports on taxation and illicit financial flows in Cameroon

In a little publicized report on the role of e-commerce in the postCovid 19 economic recovery, the IPAR-Rwanda institute made 5 recommendations which, from its point of view, would allow this sector to keep all its promises.

The first concerns a review of fees paid on financial transactions via mobile phones. According to the analysis, more affordable prices would encourage more people to make purchases through digital channels. A start, according to the analysis, would be to make fees free on small amounts.

The second piece of advice is to put in place public policies favorable to the acquisition and use of smartphones. In the specific case of Rwanda, the institute believes that this approach would make the current plan, which consists of connecting agricultural producers in Rwanda, more coherent. But the only acquisition of smartphones will not be enough, it will also be necessary to educate the population to use them.

It is also a question of initiating discussions on Internet tariffs Although Rwanda offers some of the lowest tariffs in Africa, for people living in rural areas, accessing technology remains an economic challenge The development of new connectivity solutions does not help matters, because investments in 4G are recent and require amortization for the companies that operate them IPAR believes that a support system for people in rural areas is an approach worth exploring

The last two recommendations relate to the expansion of exports via e-commerce, reducing the burden of formalities and providing support to the small and medium-sized enterprises concerned IPAR-Rwanda's recommendations have been supported by a comprehensive cost-benefit analysis for Rwanda's economy But the questions raised are applicable to several countries in sub-Saharan Africa, excluding South Africa

According to the most recent report of the GSMA (association of mobile operators) on the regulation of the telecommunications sector, African public policies have, in recent years, taken too many decisions likely to slow down the expansion of business around digital. In several countries of the region, in fact, governments find in mobile money an opportunity to mobilize tax resources. At the end of 2021, the question was debated in Cameroon where a 0.2% tax was imposed on the amounts transferred, and also in Ghana where the question even gave rise to a fight between parliamentarians.

However, despite its acknowledged rapid development, mobile money in Africa is far from having exhausted all of its growth potential. According to cross-data, made public in 2020 by Google and the World Bank, the potential for ecommerce in Africa will be $700 billion by 2050.

To this must be added that national and international transfers by mobile, deposit/withdrawal operations, as well as the payment of various fees and taxes for private or public services, should further inflate these potential volumes.

Nigerian Internet and mobile penetration grows

BY PAULA GILBERT, EDITOR, CONNECTING AFRICA

This according to the Digital 2021: Nigeria report from DataReportal.

The report said that, as of January 2021, Nigeria had a population of 208 8 million, and about 104 4 million were Internet users, giving a mobile penetration rate of 50% Of those, 93 3% accessed the Internet via a mobile phone

DataReportal said that the number of Internet users in Nigeria increased by 19 million, or 22%, between 2020 and 2021

About 50% of Nigeria's population is using the Internet and around 90% of the total population have mobile phones.

Nigeria's penetration rate was also higher than the West Africa regional average of 42% The stats also need to be viewed in the context of Nigeria's young population with 38.6% of people under the age of 13.

Mobile users

When it comes to mobile phones, there were 187.9 million mobile connections in Nigeria in January 2021. The number of mobile connections in the country also increased by 17 million, or 10%, between January 2020 and January 2021. In West Africa there is a 96% mobile penetration rate while Southern Africa's rate is 163% and East Africa is just 62%.

However, researchers did point out that many Nigerians have more than one mobile connection, so penetration numbers may look higher than they really are. Also, many of those phones are feature phones that may not be Internet enabled, which is why the Internet penetration numbers are lower.

In Nigeria if you look at users aged 16 to 64, 99.5% own a mobile phone with 99.2% owning a smartphone and 14.6% owning a feature phone. Just over 54% of the population have a laptop or desktop computer and 13.8% have a tablet.

*Source: Digital 2021: Nigeria report from DataReportal and partners Hootsuite and We Are Social

*Source: Digital 2021: Nigeria report from DataReportal and partners Hootsuite and We Are Social

In that age group the average daily time that Nigerians spend on the mobile Internet is 4 hours and 55 minutes

Social media scarcity

Looking at social media users, only 15 8% of Nigerians were using social media, or 33 million people

The number of social media users in Nigeria did however increase by 22% over the past year, adding an extra 6 million users On average in West Africa, about 16% of the population use social media

In Nigeria, the most-used social media platform was WhatsApp with 93% of Internet users aged 16 to 64 using the platform in the last month. The next most popular were Facebook (86.2%), YouTube (81.6%) and Instagram (73.1%).

*Source: Digital 2021: Nigeria report from DataReportal and partners Hootsuite and We Are Social

Nigeria Ranks Top for Nigeria Ranks Top for Cryptocurrency Use, Cryptocurrency Use, Ownership Ownership

Research reveals the countries with the highest rate of cryptocurrency use and ownership Nigeria takes the top spot, with almost half the population having used or owned cryptocurrency Europe only manages appears once in the top ten

New research has revealed the top ten countries that are the most popular for cryptocurrency ownership and use

The study, conducted by Trading Browser analysed data on cryptocurrency ownership and usage The ranking was done via the percentage of the population that reported that they used or owned cryptocurrency each year from 2019 to 2022

Nigeria tops the list with 45% of the population using or owning cryptocurrency in 2022 The nation boasts over 90 million people using cryptocurrency – that’s almost 1 5 times the population of the United Kingdom

From 2019 to 2022, Nigeria saw a 17% total increase in ownership and use from 28% to 45%, equating to over 34 million people adopting cryptocurrency over the three years

Coming in at second place is Thailand The Southeast Asian country has a massive 44% of its population reporting to using or owning cryptocurrency – equal to just over 30 million people

Despite being dwarfed by some of the other contenders on the list, Thailand has the biggest uptake in ownership and usage with a huge 21% increase from 23% to 44% That’s equal to 14 6 million people, just over one in five of the population of the country which is the highest percentage of the top ten

The number three spot belongs to Turkey The transcontinental country has 40% of its population owning and using cryptocurrency in 2022, equal to over 33 million people

The adoption of cryptocurrency has doubled from 20% to 40% amongst the population from 2019 to 2022 – over 16 million people This increase from 2019 to 2022 places Turkey second in terms of cryptocurrency uptake

The first South American country on the list, Argentina, comes in at fourth with an ownership and usage rate of 35% in 2022 – almost 16 million people This may well change in the near future though, with several draft laws aimed at institutionalising and regulating various aspects of digital assets and the virtual currency industry

Minister of State for Foreign Trade, Dr Thani Al Zeyoudi said in a recent interview with Bloomberg that a key area the UAE is looking to expand into, is cryptocurrencies. So, this might well mean that the 34% figure is set to increase over the coming years.

The remainder of the top ten features the Philippines at sixth place with 29% (15 million) of its population using or owning cryptocurrency. Vietnam is in

seventh place with 27% of the population, equalling just over 26 million people using or owning cryptocurrency

Surprisingly, in joint eighth place, the country with the highest population in the top ten, India, is matched with the country with the lowest population of the top ten, Singapore

Both nations have a rate of 25% of the population owning or using cryptocurrency in 2022 being over 341 million and almost 1 5 million respectively In ninth place is Brazil

The second South American country of the top ten has the lowest rate of cryptocurrency ownership and use at only 24% – just over 51 million of the population Last place in the top ten is South Africa with a usage and ownership ship of 23%, working out to over 13 million people.

Surprisingly, the United States ranks in at 22nd on the list with only 16% of the population owning or using cryptocurrency. That’s equivalent to just over one in six people. The United Kingdom ranks even lower, coming in at 50th place with only 11% of the country owning or using cryptocurrency – equal to just over 7 million people.

Commenting on the findings, a spokesperson for Trading Browser said “The information presented in the data offers valuable perspectives on the industry’s current status, specifically emphasizing the increasing adoption of digital assets worldwide It is positive to observe various countries making strides in terms of cryptocurrency regulation and infrastructure It is hoped that this data will contribute to the further development and widespread acceptance of digital assets ”

The study was conducted by Trading Browser, a one-stop solution for cryptocurrency traders and investors They have a dedicated team of experienced crypto professionals on hand to guide and help people through cryptocurrency trading They also provide information on the market, best practices for trading, and useful tools and resources for making informed decisions

Table created by tradingbrower com

The high cost of mobile data in Africa: Top 20 most expensive countries

African countries generally have some of the most expensive costs of mobile data in the world due to factors such as unavailability of infrastructure and high taxation in the telecom industry Equatorial Guinea has the most expensive price of mobile data in Africa, with one gigabyte costing as much as $49 67, followed by Sao Tome and Principe and Malawi

Africans rely heavily on mobile data to stay connected with the rest of the world, but unfortunately, many are paying exorbitant prices for this essential service. A report by Statista shows that African countries are among the most expensive in the world when it comes to purchasing mobile data.

While many African countries struggle with expensive data prices, some are paying more than others. In this article, we will highlight the 20 African countries with the most expensive mobile data prices.

Topping the list is Equatorial Guinea, where one gigabyte of mobile data costs a whopping $49.67. Sao Tome and Principe, and Malawi come in second and third place with $30.97 and $25.46 per gigabyte, respectively. Chad and Namibia round out the top five with average prices of $23.33 and $22.37 per gigabyte, respectively.

While these countries have the highest data prices, other African countries are not far behind. The Central African Republic, Seychelles, and Gambia are among the countries with high data prices, with averages of $9 03, $8 64, and $5 86 per gigabyte, respectively

Other countries with high data prices include Mauritania, Madagascar, Gabon, Cape Verde, Togo, Burkina Faso, Guinea-Bissau, Botswana, Benin, Mali, Sierra Leone, and Comoros

The high cost of mobile data in African countries can be attributed to various factors, including the unavailability of infrastructure and high taxation in the African telecom industry This makes it difficult for many Africans to stay connected to the internet and access vital services such as healthcare, education, and finance

BY VICTOR OLUWOLE

Victor holds the position of Head and Editor at Business Insider Africa His duties involve managing the Profit and Loss statement, establishing the editorial direction to produce unique articles and videos, recruiting talented contributors throughout Africa, and fostering relationships with clients for commercial and media partnerships Additionally, he oversees the growth of new business ventures and cultivates a community for aspiring entrepreneurs and business leaders in Sub-Saharan Africa

The critical role analytics plays in Africa’s banking and payments industry, today and in the future

BY SAS

Africa’s fintech industry is booming, driven by the rapid penetration of Internet access and the digitisation of businesses across the continent Using data and analytics for innovation and decision-making have proven to be critical in harnessing the opportunities unfolding in the African banking and payments sector This is according to SAS who was speaking at the recent Africa Bank 4 0 Summit which took place in Kenya from March 7 to 9

Ravi Acharya, SAS Managing Director and Regional Head of Middle East, Turkey, and Africa, was a keynote speaker at the start of the event examining the role of analytics in protecting and securing the financial services industry in Africa

“Fraud and financial crime compliance have become burning issues in Africa We had Mozambique and Angola on the Grey List with South Africa and Nigeria recently being added However, this presents an opportunity for the public and private sectors to place even greater emphasis on strengthening anti-money laundering regulations and initiatives in their respective countries Being grey listed will subject companies to

enhanced due diligence But this also means more frequent assessments for anti-money laundering and terrorism financing,” says Acharya

It is not only security that needs to be reimagined for a data-driven environment Using analytics to gain fresh insights on customer behaviour and expectations will be crucial for banks and payment providers to differentiate their service offerings

“Analytical reasoning therefore becomes an imperative when searching for innovative solutions that overcome many of the traditional challenges of the African banking environment When used in conjunction with each other, artificial intelligence (AI) and analytics can strengthen the value proposition of fintechs as this will provide a better understanding of what the market needs and wants,” adds Acharya

Fintechs need to have the ability to make decisions across the entire customer lifecycle, and each discrete customer journey. Digital platforms, when powered by AI and advanced analytics, enable fintechs to improve decision-making, increase speed and efficiency, remove potential discrimination, and bias from their models. This is achieved by using intelligent automation to create a centralised architecture that infuses their business processes with analytics, while driving a differentiated customer experience.

Zafir Junaid, SAS Regional Director for Middle East and Africa Growth Markets, says: “Fintech startups in Africa are generating estimated revenues of US $6 billion. Spurred by the availability of advanced technologies, it is especially those involved in banking and payments that are benefitting from a customer market who has embraced the accessibility of connectivity. Drawing insights from the influx of data being generated and analysing at scale to make faster, more relevant decisions, will be one of the driving forces not only on the continent but globally as well”.

During the afternoon on the 9th of March, Stephan Wessels, SAS Head of Customer Advisory for South Africa, will also participate in a panel discussion that aims to take a closer look at some of the strategies to consider that can help guide the future of Africa’s digital banking and payments industry

Speaking ahead of the panel discussion, Wessels says: “It must begin with fighting fraud and financial crime more effectively Using analytics and optimising processes with AI tools can result in identifying new opportunities to strengthen internal processes and systems when it comes to banking and payments using platforms like mobile devices and applications ”

One of the golden threads tying security, financial risk management, and enhanced customer experience together is access to a unified analytics platform “As African fintechs across banking and mobile payments embrace digital channels, they need to ensure their data and analytics environments are modernised to deliver the performance, insights, and scalability essential for a digital world,” say Junaid

Banks will need to build their value propositions based on leading AI and analytics capabilities. “They must become “AI first” in their strategy and operations and this will not only enable economies of scale but also strengthen customer engagement with distinctive experiences and superior value propositions,” concludes Acharya.

SAS is the leader in analytics Through innovative software and services, SAS empowers and inspires customers around the world to transform data into intelligence SAS gives you THE POWER TO KNOW®

About SAS

WorldRemit: Four Money Transfer Scams to Beware of in 2023

BY IMANE CHARIOUI, DIRECTOR OF FRANCOPHONE AFRICA, WORLDREMIT

The rapid growth of mobile money technology has disrupted the financial sector in Sub-Saharan Africa, fuelling social-economic transformation in many countries and the growth has provided considerable benefits to citizens looking to access reliable financial services.

In fact, Africa accounts for 70% of the world’s $1 trillion USD mobile money value. In 2021, the value of Africa’s mobile money transactions increased 39% to $701.4 billion USD from $495 billion USD in 2020, highlighting the future of banking in the continent as mobile money reduces transaction costs for users and helps households to manage their cash flows more effectively, manage risk and build working capital

In Cameroon, the rise of mobile money has enabled 98% of the population to be covered by a mobile GSM network (2G and above), accelerating financial inclusion and improving the welfare of low-income households

However, criminals have also discovered the opportunity this presents and the National Agency for Information and Communication Technologies (ANTIC) reported that cybercrime caused financial losses of 12 2 billion CFA Francs to the Cameroonian economy in 2021, double the losses reported in 2019

These losses were primarily due to scamming, and phishing, a technique used by fraudsters to obtain personal information to perpetrate identity theft amounted to 6 billion CFA Francs.

With these developments, managing security and privacy in a dynamic and vulnerable environment remains crucial. WorldRemit, a leading global payments company, has identified the top four money transfer scams occurring in the industry in 2023 that Cameroonian residents should look out for.

*Photo credit: WorldRemit

The four scams include email scams, such as taxation scams, where scammers impersonate the ATO, and online dating scams, where scammers can play on emotional triggers to get you to send money

In 2021, Interpol’s African Cyberthreat Assessment Report indicated that the highest-reported and most pressing cyber threat in Africa was indeed online scamming

Additionally, online shopping scams, such as overpayment scams, where scammers ask you to ‘refund’ an overpayment before you realise the credit card has been stolen or a payment receipt is fake, and Facebook impersonation scams, including money flipping scams that promise quick cash if you invest

“WorldRemit takes online security very seriously and we understand many of the tricks and techniques behind some of the most popular scams. We want to educate Cameroonians on what scams look like so that our customers can understand what to avoid and protect themselves from getting scammed,” said Imane Charioui, Director of Francophone Africa at WorldRemit.

Imane Charioui shares her top tips to avoid these four popular money transfer scams

Tips for avoiding email scams

Don’t click on links or open attachments in an unsolicited email.

Check the sender’s email address matches the website address of the organisation it says it’s from. Be wary if the email doesn’t use your name and says something like “Dear customer”

Avoid emails with a sense of urgency, asking you to act at once

Beware of emails with poor grammar and spelling mistakes

Never share personally identifiable information with someone who has contacted you unsolicited This includes banking and credit card information, your birth date, and Social Security/ Social Insurance numbers

Keep your devices updated with antivirus software to protect yourself from any malware

Tips to avoid online dating scams

Don’t trust those asking for you to share money, gifts or your bank account/credit card details Use social media channels and online to see whether their dating profile is consistent with their other online profiles

About

“Always double-check who is asking you to send money, and if you are not comfortable with the transaction, don’t pursue it Also avoid using third-party intermediaries, or agents who offer to make transactions on your behalf, and if you need to transfer money overseas, once you have checked the recipient, use a trusted money transfer service like WorldRemit to ensure that your money does arrive in time.”

As a rule, we advise that you shouldn’t send money to someone unless you have met them in person or via video

Tips for avoiding online shopping scams

Make sure that the website has ‘https’ in the URL (the extra ‘ s ’ is for ‘ secure’) and a small lock icon on the address bar Even then, the site could be unreliable

Read reviews about the quality of the merchandise, and make sure you ’ re not buying cheap and/or counterfeit goods

Check on the website for a clear refund policy and method of contact should you have a customer query

The website should not include an option to use an IMT to make the payment

Tips for avoiding impersonation scams

Don’t accept friend requests from people you don’t know and have never met.

Don’t share your password with others. When logging in, use two-factor authentication. Avoid connecting to public and free Wi-Fi networks. Keep your browser and apps updated. Add an added layer of security and use proactive cybersecurity software.

Technology Trends & Innovations to Look out for in 2023

BY JUSTICE GODFREY OKAMGBA

The direction that technology is moving in as well as recent innovations and advancements are referred to as technology trends A wide range of topics, including software, hardware, computer systems, mobile devices, the internet, and others, might be included in these trends The following are some examples of recent and emerging technological trends:

5G Technology

The latest generation of mobile network technology, known as 5G, offers higher speeds and reduced latency than earlier generations.5G technology is a new and advanced mobile communication standard that provides faster speeds, lower latency, and greater capacity than previous generations of mobile technology. In Nigeria, the adoption of 5G technology is still in its early stages.

The adoption of 5G technology will increase in Nigeria in the coming years as more infrastructure is put in place and the cost of deployment and devices decreases. The adoption of 5G technology is expected to bring many benefits to Nigeria, including faster internet speeds, improved connectivity, and the development of new technologies and services.

Machine Learning and Artificial Intelligence (AI)

Although the adoption of AI in Nigeria is still in its infancy, there is much potential for it to have a significant impact on a number of different economic sectors

Computers are now able to complete tasks that were previously deemed to be beyond their scope thanks to artificial intelligence (AI) and machine learning Utilizing these technologies will enhance decision-making, automate procedures, and offer individualized experiences

AI is being utilized, for instance, in the financial sector to enhance risk assessment, fraud detection, and customer service. Banks and insurance businesses, for instance, use AI to evaluate vast volumes of data and make wiser judgments.

The supply of computing resources, such processing power, and software, through referred to as cloud computing. Business now access and utilize these resources w buy, install, and maintain their own techn software thanks to this development

The flexibility to pay for only the resourc than making an upfront investment in co software is one of the key advantages of This can aid businesses in Nigeria in low expenses and improving productivity

The Internet of Things (IoT): The term “In (IoT) describes how many gadgets, includ household appliances, industrial machine smartphones, are connected to one anoth internet This development makes it poss analyze enormous volumes of data, whic used to boost productivity, safety, and qu

Cloud Computing Automation

Robotics and drones are two examples o technologies that are being used to carry out a variety of activities more quickly and accurately. It is expected that these technologies will continue to be used in a number of sectors, including industry, transportation, and agriculture.

Adopting automation technology can provide a variety of advantages, such as higher productivity, better quality, and lower prices. When introducing automation technology, businesses must carefully examine the possible effects on their staff as it can potentially result in job displacement

Virtual and Augmented Reality

People can now experience and engage with virtual surroundings in novel ways thanks to virtual reality (VR) and augmented reality (AR) These technologies are utilized for a number of purposes, including education and entertainment

For instance, in the healthcare sector, augmented reality and virtual reality have been used to train medical staff and simulate surgeries, enabling them to practice procedures in a secure and controlled setting

By offering immersive and compelling experiences that can aid in physical and cognitive rehabilitation, they have also been employed to support patient therapy and rehabilitation

Blockchain

Blockchain is a distributed ledger technology that makes it possible to store and move data and money in a secure and open manner Many different industries, including finance, supply chain management, and healthcare, could be completely transformed by it

Blockchain technology, for instance, has the potential to enhance voting system security and transparency, making it more difficult to tamper with election results

About

What are the top 10 ways AI is revolutionizingfintech?

Artificial Intelligence (AI) is revolutionizing the financial services industry, known as fintech. From improving customer experience to reducing operational costs and mitigating risks, AI is having a significant impact on fintech. In this blog, we will explore the top 10 ways AI is being used in fintech.

Fraud Detection and Prevention

One of the most critical applications of AI in fintech is fraud detection and prevention. AI algorithms can analyze vast amounts of data to identify patterns of fraudulent activity and flag potential threats in real time. This helps financial institutions mitigate losses from fraudulent activities, enhance customer security, and reduce operational costs.

Customer Service

AI-powered chatbots and virtual assistants are being used in fintech to provide customers with 24/7 access to information and support These systems can respond to customer queries and handle basic transactions, freeing up human customer service representatives to focus on more complex tasks.

Personalized Marketing and Recommendations

AI algorithms can analyze customer data, such as transaction history and behaviour patterns, to provide personalized marketing and product recommendations This helps financial institutions to increase customer engagement and satisfaction, leading to higher retention rates and customer lifetime value

Risk Management

AI algorithms can help financial institutions to analyze and manage risk more effectively The system can identify potential risk scenarios and provide realtime alerts, allowing institutions to take action before it is too late This helps to minimize losses and improve the stability of the financial system

Loan Approval and Underwriting

AI algorithms are being used in fintech to automate the loan approval and underwriting process. The system can analyze a large amount of data, such as credit scores and financial statements, to...

determine the risk associated with a loan. This helps financial institutions to make more informed lending decisions, reduce the time and resources required for loan processing, and improve the customer experience.

Investment Management

AI algorithms are being used to help individuals and institutions to manage their investments more effectively The system can analyze market data and provide real-time investment recommendations based on an individual's financial goals and risk tolerance This helps to improve investment returns and reduce the risk associated with investment portfolios

Trading and Algorithmic Trading

AI algorithms are being used in fintech to automate the trading process, including algorithmic trading The system can analyze market data and execute trades in real time, helping to improve investment returns and reduce the risk associated with trading activities

Financial Planning and Budgeting

AI algorithms are being used to help individuals and institutions to plan and manage their finances more effectively The system can analyze an individual's spending patterns and provide real-time budgeting and financial planning recommendations based on their financial goals

Insurance Claims Processing Blockchain Technology Conclusion

AI algorithms are being used in fintech to automate the insurance claims processing process The system can analyze claim data and provide real-time decision-making, reducing the time and resources required for claims processing and improving the customer experience

AI algorithms are being used to enhance the security and efficiency of blockchain technology, a decentralized ledger system that underlies many fintech applications. The system can analyze the vast amounts of data generated by blockchain transactions to identify patterns of fraudulent activity and flag potential threats in real time.

In conclusion, AI is revolutionizing the financial services industry, known as fintech From fraud detection and prevention to personalized marketing and investment management, AI is having a significant impact on the financial services sector As AI continues to evolve API based solutions are helping fintechs realize value through instantaneous customer scaling and enhanced customer onboarding procedures

Public and private sector collaboratio a critical success factor for CBDC

RAOUL HERBORG, MANAGING DIRECTOR, CBDC UNIT AT GIESECKE+DEVRIENT (G+D)

Rather than asking what problems are being solved think about what opportunities a Central Bank Di Currency can create, such as enhancing paym efficiency, reducing costs and driving digital growth o economy. But by far, the biggest motivator is foste financial inclusion, especially in emerging countries believe everyone should have access to convenient secure digital payments and it should be a given th digital form of public money is inclusive and resil There is no existing technological solution that meets fundamental core requirements of such a CBDC, whi why we developed our solution G+D Filia

G+D Filia is designed to be a government-issued, p digital payment instrument, providing outstan security and resilience with no single point of failure truly making it possible to balance privacy transparency From the very beginning, we considered how to handle secure consecutive of payments in areas without internet connectivity

A well-designed CBDC can serve as the bedroc innovation and could improve the way we pay and business

Q: The payments system is complex, new developments as CBDC only add to this complexity. What is the significance of CBDC to the future of financial market infrastructures?

We believe that CBDCs will in fact simplify the paym system as the current complexity is in part down to the fragmentation of the payment landscape. A CBDC could be that common standard upon which all industry players can build their products and services. In this scenario, the Central Bank will focus on providing the platform, ensuring the integrity of the ecosystem, and the entire industry can innovate.

CBDCs can be a bridge and ensure the seamless flow of funds between payment systems, but interoperability is key, as well as a trusted division of roles between the

Q A recent survey conducted by the Bank for International Settlements, suggested that many central banks around the world are looking into rolling out a central bank digital currency According to the BIS, this increase in interest may have been driven by a shift to digital solutions amid the COVID-19 pandemic as well as the growth in stablecoins and other cryptocurrencies What would be your take on this?

The pandemic undoubtedly drove digitalization in all areas of life Lockdowns encouraged a boom in ecommerce, and many payment providers took advantage of this situation to promote digital forms of payment But, if you

Q: What problem is G+D trying to solve with its CBDC solution and why?

have not subscribed to a payment service provider, you cannot pay digitally So, in this way, the pandemic has exposed the need for digital cash that can be used by everyone without fees or disclosure of data – and without involving a third party

The existence of cryptocurrencies shows the demand for digital tokens and development of stablecoins was based on the hope for stability in the crypto space. However, they aren’t reliable due to their volatility and are unsuitable as a means of payment. Afterall, there’s no proper regulation and no consumer protection. With a CBDC people can benefit from stability guaranteed by a central bank and transparent policy decisions.

Most importantly, though, the pandemic demonstrated that there might be some services in society where you don’t want to rely entirely on commercial players. Payment is such a critical service and the only public means of payment today that comes without commercial interests is cash. But cash doesn’t work digitally. Therefore, a CBDC would extend the reach of cash into an ever more digital world.

Q: According to the BIS survey, more than 70% of central banks are also exploring CBDCs with “private sector collaboration and interoperability” for existing payment systems Why do Central Banks Need to Engage the Private Sector on CBDCs? What are the characteristics or best practices of strong and inclusive public-private collaboration?

introduction of a CBDC simply by upgrading existing apps to support CBDC payments But, of course, we also need to look into how to reach the unbanked Here, fintechs could play a vital role as we have seen through a recently completed pilot project in Ghana in which the swift integration of financial intermediaries was pivotal to enable quick onboarding of consumers

Q: Financial inclusion is considered to be the main factor driving CBDC projects in the emerging and developing economies. How will CBDC affect the future of payments and boost financial inclusion in emerging countries?

Emerging economies are among the world’s pioneers of CBDCs These markets often have a stronger motivation to foster financial inclusion so take the leap from having a less efficient cash infrastructure, and people not having a bank account, straight to digitalization

The unbanked and underbanked population will benefit the most as currently their exclusion from financial services limits their opportunity to borrow at competitive rates, protect their money and save securely, and to receive and send funds. Unsurprisingly, it is a gating factor for much personal and economic advancement. Additionally, digital payments currently require contracts with a thirdparty provider, which may charge fees or use personal data. They may also demand a certain creditworthiness or that payees are a certain age.

With a CBDC, all these people finally have the chance to participate in the digital economy. For instance, for micro-entrepreneurs with village stores, it is important that a CBDC solution also works in offline scenarios so, from day one, that was a design criteria when we started building our CBDC solution and is again something piloted very successfully in a rural village in Ghana.

To be truly inclusive, a CBDC needs to be diligently designed. It cannot expect users to have access to a smartphone, to be tech-savvy or financially literate and neither can merchants be expected to have access to high-end point-of-sale terminal devices or internet connectivity An inclusive CBDC needs to come with a very simple and intuitive user interface and involve zero or ultra-low transaction fees It needs to be available through multiple low-cost formats, such as wristbands and smartcards, and also accessible for offline payments

Another important aspect is the fact that a CBDC

could ease cross-border payments The number of migrant workers globally is growing, and so are their remittances back home But sending money to friends and relatives in emerging countries can be challenging and very expensive since many of them are under or unbanked

Finally, Africa faces very particular challenges, such as difficulties with digital and electrical access, regulation and lack of interoperability between banking systems Here, a CBDC could be a viable solution

Q: What are the potential benefits and challenges related to CBDC implementation and what are the alternatives to CBDC?

CBDCs will benefit all parts of society. For example, some will finally be able to pay digitally, while others will profit from new features or value-added services for example receiving government support payments more efficiently

Citizens will, ultimately, get a universal and free means of payment that protects their privacy - just like cash does but in a digital Meanwhile, merchants will benefit from much lower costs in comparison to existing payment instruments CBDCs will also be a huge step forward for businesses and the industrybe it in M2M-payments, micropayments or for completely new business models

In summary, a country’s economy will benefit When introducing a CBDC, we’d expect to see multi-billion Euro savings for a mid-size country Of course, there are also challenges to be overcome and it’s crucial to analyze the impact of a CBDC on the national financial system That’s why we offer a pilot package consisting of a thorough training program, interactive workshop sessions and access to our CBDC sandbox This ensures our clients can test the solution in a secure, scalable and resilient environment Together with the fintech startup FNA, we have even developed an economic CBDC simulator to analyze the possible impact on commercial banks, for example

Security is another major CBDC challenge Therefore, the solution has to provide a level of security that is way beyond the typical payment standards and on a critical infrastructure level Pilot projects with real users in collaboration with financial services providers are also key for a proper roll-out as it allows us to learn and improve

Q: The leading economies and nations are generally perceived to be ahead of the game in the adoption of digital currency. What are the risks to the nations falling behind?

Ultimately, CBDCs will converge the best of both worlds: cash and digital payments In my opinion, there is no alternative I do essentially see two risks: other countries that introduce a digital currency and global Big Tech companies coming up with their own private payment solutions, much like Facebook did with Libra some time ago Both might challenge the role of the local currency and ultimately the role of the central bank as a guarantor of a resilient payment system

Countries with little cash usage need to ensure financial stability while also ensuring that digital payments don’t become the monopoly of private players. This is an important factor for payment sovereignty, after all, payments are part of the critical infrastructure of a country.

Q: As it becomes ever easier to conduct crossborder transactions, what are the key consumer risks pertaining to various types of digital currency? What is needed to coordinate and enforce consumer protection on a global level? And how do these risks compare to those of traditional fiat currency?

In our view, there aren’t different types of digital currencies There are CBDCs, which are currencies in the original meaning – being a means of payment, a store of value and a unit of account And there are digital assets like Bitcoin or stablecoins, which we don’t define as currencies

Looking at consumer protection, the Committee on Payment Market Infrastructure (CPMI) of the Bank for International Settlements (BIS) and the Financial Stability Board (FSB) have developed a G20-accepted roadmap for enhancing cross-border payments, with nineteen building blocks approved Protecting a CBDC from cyberattacks and other threats is just as important as upholding banknote security against counterfeiting Any CBDC deployment will need to balance the transparency of transactions with the privacy of consumer data It will also need to be fully compliant with KYC, AML/CFT regulations and requirements

There are in addition many benefits to increasing the ease of cross border transactions For instance, currency unions, which involve two or more states sharing the same currency, help to boost regional integration On a research we found out that cost savings with CBDCs in cross-border payments could

reach almost 50% compared with traditional banking infrastructures

Q: How would you describe the future of CBDC in emerging countries of Africa? Any final thoughts on how you or your organization will be a part of this future?

Africa will be among the most developed regions when it comes to implementing Central Bank Digital Currencies It has a chance to leapfrog more developed countries, where the introduction of CBDCs might be a long and cumbersome process, and even set standards in this important domain of the future

Currently, we are working on three CBDC projects in African countries, including the eCedi pilot in Ghana Additionally, we are partnering with the Central Bank of Eswatini to research and explore the development of a CBDC in the country

G+D has been an active participant on the ground in Africa for decades, and partners with numerous central banks to offer a full suite of cash-related services to their consumers As we have done for many years, we are committed to continuing to support Africa’s journey towards a future with also a digital form of public money

Raoul Herborg is an experienced entrepreneur who has spent many years building IT businesses He is always on the lookout for new business models, innovative start-ups, and organizations that are ready to reinvent themselves As a general manager, he excels in delivering digital innovations, including strategy, implementation, and business development Raoul is an expert in IT security and enterprise mobility

One of Raoul's notable achievements includes founding and developing a company for IT consultancy and software solutions that employs 100 people He has also acquired and managed several large-scale IT projects for high-profile clients in various industries Raoul has created and implemented a product business in the area of Enterprise Mobility Management and Mobile Security

Managing Director, CBDC Unit at Giesecke+Devrient (G+D)

Raoul Herborg,

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Top 10 Data Privacy and Protection Priorities for Organisations in 2023

World Privacy Day, observed annually on the 28th of January, serves as a reminder of the importance of protecting personal data in today’s digital age Data Privacy also provides individuals with control over how their data is collected, used, and stored Data protection is instrumental in achieving data privacy and by description, it refers to the technical and organisational measures put in place to protect data (including personal data) from unauthorised access, use, alteration, or destruction

To help address and manage the complexities of data privacy and protection, here are the top 10 topics an organisation can consider

Data Protection Strategy

Organisations should start by creating or updating a Data Privacy, Backup & Recovery, and Disaster Recovery plan as part of an overall data protection strategy

Encryption

Encryption is a crucial feature of data protection and protecting private data. Allowing for data encryption at rest and in transit (when moving data between on-premise and the cloud or even between various cloud environments)helps prevent unauthorised access to personal information. This is especially important for organisations that handle large amounts of private data, such as healthcare providers and financial institutions.

Multi-person authentication

Leveraging Multi-Person Authentication (MPA) with data protection systems ensures that critical tasks will require multiple approvals from pre-approved users. This is one of the simplest ways to prevent tasks like data exfiltration or deletion.

Immutable Storage

Immutable storage requirements are quickly becoming a standard requirement with data governance regulations like the Protection of Personal Information Act (POPIA), the Health Insurance Portability and Accountability Act (HIPAA), and others. When paired with MPA, you can create highly secure data storage tiers that are a perfect fit for the storage of confidential and private data.

KATE MOLLETT, REGIONAL DIRECTOR AT COMMVAULT AFRICA

Data Sovereignty

Organisations should consider regulations that impact private data storage when developing a data protection strategy This includes the location of where the data is stored and compliance with regulations regarding data sovereignty

Data Governance & Discovery

Organisations need to understand what data they have, where it is, and what is at risk. Being able to prioritise data based on your organisation’s policies, priorities, and applicable regulations is critical to protecting the data. You cannot protect what you do not know about.

Classification of data

Knowing what data exists and where it resides is only part of the solution. Organisations must consider what data is private customer data, business-critical, etc. in terms of its importance to your business and your customers.

Protecting only on-premises data may miss some critical customer data, such as data that lives in your Software as a Service (SaaS) based Customer Relationship Management (CRM) solution.

Retention

Being able to assign an expected lifespan to data can greatly impact your organisation’s bottom line and protect your customers’ private data. Having systems in place to automatically find, classify, and set retention periods will reduce the likelihood of data sprawl, reduce the amount of time to recover unused data, and reduce costs.

Resilience plan testing & incident response

Resilience plan testing is an often-overlooked area of a data protection strategy Creating or updating an outdated plan can be a daunting task Partnering with solution providers or strategic data protection companies with experience in creating a plan can significantly reduce the time it takes to do this

Risk Assessment

Organisations need to consider working with strategic vendors to perform a risk assessment on a half year or annual basis. Scheduled assessments can help build the muscle memory for a solid data protection and data privacy mindset.

In conclusion, by implementing this list of considerations and routinely refreshing your resilience plan, you can be confident that personal information is secure and compliant with the latest privacy regulations.

Regional Director at Commvault Africa

Kate Mollett is responsible for overseeing and managing the Commvault South & East Africa Regional team Her focus is on extending the companys market share, leveraging Commvaults expanding portfolio, and implementing business best practices to support the expanding Africa based Commvault team Critical success factors include leveraging Commvault's well-established partner network across the region while recruiting new partnerships to support geographic and sector-specific growth opportunities

The team is dedicated to serving customers of all sizes to maintain competitive advantage and regulatory compliance as they adapt to the latest global and business developments They provide strategic provision of converged data management solutions that redefine what backup means for the progressive enterprise that protects manages and uses its most critical asset its data

Kate Mollett

Informal credit providers had always existed in Sub-Sahara from time immemorial, they operate at communal level and it was easy to establish trust, income capacity, administer justice to defaulters With the advent of technology, increasing smartphone penetration, remote onboarding tools, improved digital identification, FinTechs are deploying digital credit platforms across Africa to bridge the credit gap which the licensed and authorized financial services could not meet

Few countries in Africa are considering regulations to guide the sector and Kenya took the lead The Central Bank of Kenya, Digital Credit Providers Regulations, 2022, was gazetted on March 18, 2022 The Regulations provide for the licensing and oversight of previously unregulated Digital Credit Providers (DCPs) by CBK The Central bank recently approved additional DCPs in January 2023, to bring licensees to 22

The Kenyan framework is consumer focused and robust document which will shape the market conduct by qualified and well governed digital lenders armed with proper assessments, tools, systems, policies, pricing, credible credit and customer management lifecycle processes and rules A robust framework will inspire confidence and growth in a continent, struggling with significant credit gap

...robust document which will shape the market conduct by qualified and well governed digital lenders armed with proper assessments...

EMMANUEL OKOEGWALE

Inadequacy of Nigeria’s digital credit playbook, lessons from Kenya’s regulations

The Central Bank of Nigeria which is seen as innovative in many areas such as recently deplored Nigeria’s digital currency and Domestic National card, can no longer play the ostrich by burying its head, in the rapidly moving sand of Fintech’s digital credit space

The emergence and rapid growth of nonlicensed digital credit providers (DCPs) brought some reliefs to the excluded segments but came with own risk of high defaults due to extreme high cost, improper market conducts and abuses which were so prevalent running up to 2022, that the Federal Competition and Consumer Protection Commission (FCCPC) had to step in and provide leadership during the turbulent period

During the uproars of 2022 about unjust and unfair treatments, the Central Bank of Nigeria whose job is to provide market stability, ensure certainty and appropriate risk, educated the citizens on the risk of taking loans from unlicensed and unregulated entities repeatedly but did not provide any insights into long term solutions to explore the opportunities to push for formalization of the sector from ‘under-the-table’ category

Plausible reasons for the non-recognition of DCPs may be, to encourage the digital credit providers to transition into full-fledged micro finance bank (Some already did) It looks like a ready-made regulatory solution but it won’t address the underlying factors because FINTECHS are wired differently from traditional Microfinance bank if we must face the reality of the emerging ‘uncontrolled market’ category

Post intervention of 2022 and to ensure some level of order, the FCCPC then developed a

‘Limited interim framework for digital leading which is the commission’s approach to provide some guidelines in the qualification for approval to carry out the business of digital credit in Nigeria The framework does what the commission wants to achieve in short term, to establish fit and proper ownership, loan calculation methodologies etc but not covering extensive domain areas of provisioning a financial services platform which a DCP is

FCCPC has shown leadership to steady a rocking ship but for how long? There is need for an encompassing and compelling digital credit framework which will address many present grey areas and future potentials so that the ecosystem is not stifled due to lack of framework guiding market operators, end-toend processes, standards, consumer protections etc

DCPs are playing some important roles in the bridging the credit gap but they should do it within the rule of law so that the ecosystem can grow

The framework does what the commission wants to achieve in short term, to establish fit and proper ownership, loan calculation methodologies etc

Nigeria should accelerate the development of its own DCP framework with the contribution from relevant agencies, standard setting bodies, regulators, knowledge matter experts, market operators to come up with a draft that is innovation led while balancing risk, customer protection and market dynamics in a timely manner

Closing the national credit gap will require many stakeholders at different level of the pyramid and the bottom of the pyramid should not be left devoid of any regulatory oversight As long as significant credit gaps exist, DCP cannot be wished away but proper framework that will guide the ecosystem should come into the National financial system’s playbook

Emmanuel Okoegwale Digital finance specialist emmanuel@mobilemoneyafrica com

Excellent knowledge of digital financial services, focused on Nigeria and Africa in general, close to two decades accomplished career track known throughout the industry for delivering results, high ethic standards, commitment and perseverance

An experienced executive who aggressively identify opportunities, new innovations and implementing challenging Financial services across Africa

A DFID consultant (Save The children, GEMS4 program) in the areas of mobile financial services and had achieved mobile money regulatory licensing for Zenith Bank, First Bank, Ecobank, Fortis MobileMoney, Zinternet, Teasy MobileMoney between 2011 - 2013 and currently contributing as a licensing consultant with Fidelity Bank in four states in the Federal Republic of NigeriaOrganizer of the annual MobileMoneyExpo in NIGERIA - wwwmobilemoneyexpocom and Judge at the GSMA Global awards in the Best MobileMoney category from 2011 and retained for the 2015 edition in Barcelona, Spain

Fintech Dominates Africa Startup Funding and Unicorn Club

In Africa, fintech maintains its position as the most dynamic and fastest-growing startup segment, attracting the lion’s share in startup funding and dominating other categories in terms of unicorn count, new reports by local media and information services platforms show

A report by Africa-focused tech information platform Afridigest, released on February 11, looks at the continent’s unicorn startups, revealing that out of the seven billion-dollar companies present in Africa as of February 2023, six are fintech companies

These companies primarily target the African market, and include both those headquartered in the continent and overseas Most operate in the digital payment and mobile money spaces, but some also tackle domains like digital lending

Africa’s six fintech unicorns are:

Flutterwave, a payment infrastructure provider originated from Nigeria and valued at US$3 billion;

OPay, a mobile-based financial platform for payments, transfers, loans, savings and more headquartered in Nigeria and valued at US$2 billion;

Wave, a mobile money startup from Senegal that’s worth US$1.7 billion;

Chipper Cash, a cross-border payments company that’s worth US$1 25 billion and which operates in seven African countries including Ghana, Nigeria and Uganda;

Interswitch, an Africa-focused integrated digital payments and commerce company worth US$1 billion and headquartered in Nigeria; and

MNT-Halan, Egypt’s largest and fastest-growing lender to the unbanked population valued at US$1 billion

MNT-Halan is the latest fintech company to join the unicorn club, having secured in February a US$400 million equity and debt funding round at a billion dollar valuation. The company, which provides a digital ecosystem and super-app that connect consumers, merchants and micro-enterprises with business loans, consumer finance, payments, buy now, pay later (BNPL) arrangements and e-commerce offerings, said it would use the proceeds to expand internationally after solid growth in Egypt.

Flutterwave, OPay, Wave and Chipper Cash all reached unicorn status in 2021 during the startup funding frenzy, data from CB Insights show. Interswitch, meanwhile, has been on the list the longest, having reached the billion dollar valuation milestone in 2019 after raising a rumored US$200 million funding round from Visa

In terms of funding amount, it is OPay that has secured the most venture capital (VC) funding at US$570 million, according to African tech-focused publication Tech Cabal OPay is followed by Flutterwave with a total of US$475 million, according to CB Insights and Dealroom; MNT-Halan with more than US$380 million in disclosed funding; Interswitch with US$321 million; and Wave with US$200 million

Africa’s startup funding landscape

Against all odds, fintech funding activity in Africa continued to rise in 2022, growing 39.5% year-overyear (YoY) to reach US$1.5 billion, data from Disrupt Africa’s latest African Tech Startups Funding Report show.

The trend is contradictory to what was observed in 2022 during which global fintech funding declined by 46% YoY as investors scaled back their investment pace amid slumping public markets

205 African fintech startups received funding in 2022 for an average deal size of US$7 million The figures represent an improvement from 2021 during which 184 companies secured funding and deal sizes averaged US$5 6 million This showcases the maturing of the sector where startups are raising larger rounds of financing to support their expansion and to scale up

Fintech funding in Africa by year, Source: African Tech Startups Funding Report 2023, Disrupt Africa, Feb 2023

In 2022, fintech remained the most funded startup sector in Africa, accounting for a staggering 43 4% of the continental total

Nigeria led the pack by contributing US$666 4 million or 46 1% of all fintech funding, followed with Egypt with US$402 million (27 8%), South Africa with US$132 6 million (9 2%) and Ghana with US$96 million (6 6%)

African startup funding by sector, 2022, Source: African Tech Startups Funding Report 2023, Disrupt Africa, Feb 2023

At least 987 different investors supported Africa’s startup landscape in 2022, according to the Disrupt Africa report The most active ones include early-stage funds Launch Africa Ventures, LoftyInc Capital Management and Future Africa, as well as accelerators Y Combinator, Techstars, Flat6Labs and Startup Wise Guys

An analysis by Africa: The Big Deal, a database and insights platform on startups funding in the continent, found Launch Africa Ventures to be the most prolific investor in Africa with at least 124 deals across 19 countries in 2021 and 2022 The figure gives it a rate of more than one deal signed each week on average According to the analysis, the firm got involved in 12% of all equity deals between US$100,000 and US$10 million that happened on the continent in the past couple of years

Fintech companies in Launch Africa Ventures’ portfolio include AfriEx, a remittance platform from Nigeria; AlphaDirect, a direct-to-customer insurtech startup from Botswana; Balad, a remittance-driven neobank from Egypt; Bitmama, a cryptocurrency exchange from Nigeria; and Kuda, a leading digital challenger bank in Nigeria

After Launch Africa Ventures, Flat6Labs was identified as the second most active startup investor in the region A seed and early stage venture capital (VC) firm and the operator of one of the leading startup accelerators in the Middle East and North Africa (MENA) region, Flat6Labs participated in at least 88 rounds of funding in 2021 and 2022 for an average of more than three deals signed per month

Fintech companies in its portfolio include InvoiceQ, a software-as-a-service (SaaS) e-invoicing platform from Jordan; Agel, a Sharia-compliant trade finance platform from Egypt; and Bayt Misr, a digital mortgage platform from Egypt

Top investors in Africa in 2021-2022 by number of US$100,000+ deals, Source: Africa: The Big Deal, Feb 2023

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Global: 15 Best B2B eCommerce Platform in 2023

B2B, business-to-business, refers to the direct sale of products and services between two businesses B2B is a radically different business strategy from B2C, in which businesses sell directly to customers

Instead, through an online sales platform, B2B eCommerce involves transactions between a manufacturer, a wholesaler, or a retailer

One of the most rapidly expanding sales channels is B2B eCommerce According to some estimates, the worldwide B2B eCommerce sector is worth over $12 trillion and accounts for 13% of all B2B sales in the United States

One of the most rapidly expanding sales channels is B2B eCommerce According to some estimates, the worldwide B2B eCommerce sector is worth over $12 trillion and accounts for 13% of all B2B sales in the United States

The movement has been fueled by innovation and technology from B2B eCommerce platforms In the past, sales and marketing for B2B businesses were laborintensive and manual Through e-commerce automation, the

introduction of digital commerce aids these businesses in reducing costs and increasing productivity

What is B2B eCommerce?

A basic explanation of B2B eCommerce is an online transaction between two businesses. In other words, a business engaging in a B2B transaction would be selling products or services to another business or its client. B2B businesses, like all other businesses, exist in various forms, sizes, and degrees of complexity. They may include services like accounting, legal, and digital, as well as physical products such as machinery, equipment, consumer goods, and so on, across various business types and industries

Many of us who buy online as consumers are unaware that the worldwide business-tobusiness digital commerce sector is six times larger than the B2C market As more local and international business customers migrate online in search of speed, convenience, and straightforward transactions, these numbers are expected to increase It would encourage historically offline B2B vendors to establish an eCommerce presence, hence increasing demand for B2B eCommerce platforms

Best B2B eCommerce Platform

Here we list some of the best B2B eCommerce Platform you can consider in 2023

1

ewiz commerce

It is an ai-powered B2B eCommerce platform for companies selling various products to other businesses. This platform is ideal for businesses of all sizes, including Manufacturers, Wholesalers, Suppliers, and Distributors. ewiz commerce includes a marketing automation solution that enables companies to increase their sales with targeted marketing campaigns. ewiz commerce facilitates merchandising order management and marketing automation for businesses

online publications from scratch using Flipsnack’s online design studio. It is among the best B2B eCommerce Platform you can consider in 2023.

PayPal

Whether you ’ re just starting out or already have a successful organization or marketplace, the PayPal B2B eCommerce Platform is a complete solution to meet your business needs and customers

Flipsnack

Flipsnack is an online, browser-based publishing tool that individuals worldwide use to create and publish digital catalogs, magazines, brochures, portfolios, reports, picture albums, and newspapers, among other sorts of publications It gives users the tools to create, distribute, and embed online magazines and convert PDFs into online flipbooks

3 2 4

The platform enables you to connect with more than 295 million PayPal customers worldwide and various platforms and marketplaces by utilizing our twosided network As a result, you may now locate new markets, channels, and high-value customers All the while granting your customers the option to make purchases as they like, almost anywhere in the world

NetSuite

It is a complete cloud-based business management system that enables over 32,000 enterprises to function more efficiently by automating essential operations and offering real-time visibility into operational and financial performance

www.flipsnack.com

For example, Flipsnack automatically converts a PDF into an online magazine with page flip effects once users upload it In addition, users may create their

NetSuite B2B eCommerce Platform provides companies with a clear view of their information and controls over their business with a single, integrated suite of applications for accounting, order processing, inventory management, manufacturing, supply chain, and warehousing operations.

www netsuite com

Best B2B eCommerce Platform

Here we list some of the best B2B eCommerce Platform you can consider in 2023

Adobe Commerce

To deliver individualized consumer experiences, Adobe Commerce enables major companies to create, manage, and change e-Commerce websites In addition to drag-and-drop page builders, other features include customer segmentation and targeting, content staging, rule-based product relations, and visual merchandising

with offices in New York, London, Boston, and Tel Aviv. You can consider is among the most reliable B2B eCommerce Platform.

For many eCommerce sites, including customization for certain businesses, categories, user groups, and products, Adobe B2B eCommerce Platform makes it simple to create promotions and pricing. With targeted promotions, rule-based upselling, and SEO suggestions, users may distribute discounts and promotions across many channels to customers and market groups To further tailor the consumer purchasing experience, targeting is based on customer journey characteristics such as abandoned carts, wishlists, search filters, and purchase history

7 6 8

Cin7 Omni

It is an automated inventory management platform for brands with a sales growth rate of more than $1 million. Cin7 B2B eCommerce Platform automates order processes to increase productivity and synchronizes stock with sales and orders across physical and online sales channels.

It is inappropriate for Rentals and Asset Management businesses. Cin7 enables brands that sell or distribute products to keep costs low, profits and cash flow strong, and stock levels optimal.

Yotpo

Yotpo, the top eCommerce marketing platform, helps drive direct-to-consumer growth for thousands of forward-thinking brands such as Rebecca Minkoff, MVMT, Bob’s Discount Furniture, and Steve Madden. This unified platform incorporates data-driven solutions for reviews, customer loyalty, SMS marketing, and more.

Yotpo empowers brands to create smarter, higherconverting customer experiences that ignite and maintain customer connections. We interface with the tools you use daily, such as Google, Instagram, leading eCommerce platforms, and the rest of your IT stack. Yotpo, is a member of the Forbes Cloud 100,

TrueCommerce EDI Solutions

TrueCommerce is the most comprehensive method for connecting your business across the supply chain, integrating EDI, inventory management, fulfillment, digital storefronts and marketplaces, your business system, and anything else. Companies must to be able to do business in several directions at once to remain competitive in today’s dynamic global economy.

However, doing so frequently requires too many solutions and too much assembly TrueCommerce

Best B2B eCommerce Platform

Here we list some of the best B2B eCommerce Platform you can consider in 2023 B2B eCommerce Platform has helped businesses become more connected, supported, and prepared for the future for decades. It is why thousands of companies, ranging from startups to the Fortune 100, rely on our services.

Companies may quickly grow their businesses with the help of PrestaShop thanks to PrestaShop Essentials, a suite of modules that provide safe payment solutions globally, performance analysis, and online marketing, and PrestaShop Platform, a hosting service

CommentSold

CommentSold is a cloud-based social commerce platform that facilitates consumer involvement and recommendations for businesses Among its primary features are catalog management, search engine optimization, preconfigured templates, data synchronization, channel management, and reporting It is among the top B2B eCommerce Platform

For expanding and existing online businesses seeking a robust solution in intuitive packaging, Bigcommerce is an all-in-one SaaS e-commerce platform Construct an online store from scratch or migrate from an existing platform with the userfriendly store builder, which features industryleading templates optimized to increase sales

In addition, Bigcommerce B2B eCommerce Platform comprises features and integrations to manage an entire business, allowing for comprehensive customization with an easy user interface. With a free 14-day trial, you can try Bigcommerce right now.

BigCommerce PrestaShop

By using its core principles of boldness, closeness, tenacity, and engagement, PrestaShop, a significant partner in digitizing commerce, aspires to become the reference commerce platform for the expansion of businesses throughout the world

PrestaShop B2B eCommerce Platform is the most popular open-source e-commerce solution in Europe and Latin America, with almost 300,000 websites currently employing its software worldwide

Customers may locate products that can be purchased in a post, video, or live stream using the online application, and they can make purchases there and then The invoice is issued by email or messenger, and customers can click a link to access their basket and complete the transaction. In addition, users may send timed pending cart reminders to customers and set the period of the cart’s expiration using the gamification function. The shipping capability enables employees to prepare packing lists and labels, consolidate and dispatch goods, and manage numerous orders.

Best B2B eCommerce Platform

Here we list some of the best B2B eCommerce Platform you can consider in 2023

SyncSpider B2B eCommerce Platform is an integration solution meant to assist eCommerce businesses in automating multi-channel sales processes, connecting apps, and synchronizing inventory data, among other things

It is an eCommerce-specific automation technology that helps increase income, consolidate inventory, and enhance the customer purchasing experience Synchronise data between applications and markets

For digital solutions and services for businesses, Vendasta is a customized B2B eCommerce Platform. They provide everything you need to minimize costs without losing performance, including an in-house fulfillment staff and a strong platform that serves multi-location brands.

Shopify Plus SyncSpider Vendasta nopCommerce

nopCommerce is an open-source B2B eCommerce platform that meets the demands of every retailer Companies selling real and digital items, as well as large and small-business online storefronts throughout the world, are all powered by it

The most outstanding features of open-source and commercial software are combined in nopCommerce, a clear and well-structured solution

Shopify Plus is a multi-channel eCommerce platform for large businesses, wholesalers, and corporate eCommerce stores that enables high-demand sales, greater customization, and scalability. Companies may modify their storefront, checkout page, and backend systems and create several shop versions for international eCommerce. They can even automate specific campaigns.

Shopify Plus B2B eCommerce Platform provides merchants, marketers, and eCommerce administrators with an intuitive Content Management System (CMS) that lets them manage products, content, and pricing without coding, as well as conversion-tested themes for customized design layouts and functionality. Users have complete control over the checkout procedure and access to more than one hundred payment gateways. Shopify Plus enables businesses to build sales channels spanning marketplaces, mobile, social, and offline, along with foreign eCommerce sites

How does B2B work?

In B2B eCommerce, one business offers another business a package of products or services Typically, a group or division uses the vendor’s products and services. Occasionally, a single buying user conducts a transaction supporting the organization’s business objectives. And other B2B transactions entail the organization’s usage of the products, such as office furniture, computers, and productivity software.

A purchasing committee handles the product selection process for more extensive or advanced B2B product acquisitions

A business decision-maker, such as the person in charge of the budget

A technical decision-maker who examines the capabilities of the possible products; and Influencers give feedback on the choice

It is a request for proposal, in which the buyer invites prospective suppliers to submit bids outlining their products, terms, and pricing that may be used for large acquisitions

Increase efficiency by using automation

Customize website experiences

Ordering procedures can help you increase sales

Final Words

In digital commerce, B2B eCommerce is a significant sales channel Changes in buying behavior as a result of the epidemic will boost adoption well beyond 2021 According to Forrester, B2B eCommerce, transactions will exceed $1 8 trillion by 2023, accounting for 17% of all B2B sales in the US

In B2B business, emails and phone calls still have their role Still, there’s no denying that eCommerce is pushing the frontiers of what B2B sales can be

Because purchasers are shifting, this is terrific news for B2B vendors Millennials, the generation who grew up with digital, account for over 73% of B2B buyers

What are the benefits of B2B eCommerce?

What precisely is B2B eCommerce? Information, products, and services are exchanged between businesses through B2B electronic commerce

However, B2B eCommerce does more than enable businesses to migrate online and sell their products to a bigger client base

It facilitates entry into new markets, increases employee productivity, and encourages existing customers to buy more Additionally, B2B brands with eCommerce capabilities outperform their competitors in terms of efficiency, demand more from their suppliers, and use actual data to drive business choices that help them remain competitive.

B2B eCommerce reduces costs while improving operations and internal procedures. Multiple channels and websites can be used to sell.

These new purchasers have higher expectations for convenience and relevance than their baby boomers and Generation X peers. B2B platforms continue to lead the way for costeffective and accessible selling options, with personalized sales portals, mobile ordering, AR tours, and self-service features.

As the year 2022 winds down, telecom operators stand tall to count their many achievements, which they said have impacted the Nigerian economy, including individuals and organisations in several ways, despite the challenges it faced with government agencies in some states that imposed all manners of levies and taxes on telecom operations.

Social miscreants, who were bent on milking the telecom sector dry, also faced operators with unnecessary monetary demands and willful destruction of telecom facilities.

Despite the challenges faced in 2021, the telecom operators, the industry regulator and the Minister of Communications and Digital Economy, Dr. Isa Ibrahim Pantami, have said the telecom sector raised the Nigerian Gross Domestic Product (GDP), created job opportunities and sustained the Nigerian economy by cushioning the effect of COVID pandemic on the economy.

Chairman, Association of Licensed Telecom Operators of Nigeria (ALTON), Mr. Gbenga Adebayo, told THISDAY that the telecom industry did well in 2022 in the areas of broadband penetration and coverage. According to him, in 2021, there were discussions around 5G spectrum licence, which was concluded in 2022, and one of the winners of the 5G spectrum licence, MTN, has since rolled out its 5G network in some states of the country In 2022, another 5G licence was auctioned and Airtel was offered the 5G licence

"The telecom industry in 2022 impacted a lot of sectors of the Nigerian economy

It also supported the financial sector in ensuring that the Central Bank of Nigeria (CBN) achieved its financial inclusion goals for the country The telecoms sector also supported the Fintech in disrupting the financial sector, especially the banks," Adebayo said

GDP Growth

In August this year, the National Bureau of Statistics (NBS) released data on sector contribution to Gross Domestic Product (GDP) for 2022 According to NBS statistics, the telecom sector contributed 12 12 per cent to total nominal GDP and 18 44 per cent to total real GDP in the second quarter of 2022

Telecom and information services are the major components of the sector Of the sector's total nominal GDP contribution in the first two quarter of 2022, telecom contributed 76 29 per cent, and 79 49 per cent to its total real GDP contribution

Explaining the sector's impact on the economy, NBS said, "In nominal terms, in the second quarter of 2022, the sector growth was recorded at 14 11 per cent (year-onyear), 14 18 per cent points increase from the rate of -0 07 per cent recorded in the same quarter of 2021, and 6 43 per cent points lower than the rate recorded in the preceding quarter

EMMA OKONJI WRITES ABOUT THE IMPACT OF TELECOM SERVICES ON THE NIGERIAN ECONOMY IN 2022, DESPITE THE MANY CHALLENGES IT FACED

"The quarter-on-quarter growth rate recorded in the second quarter of 2022 was 14 13 per cent The Information and Communications sector contributed 12 12 per cent to the total nominal GDP in the 2022 second quarter, lower than the rate of 12 22 per cent recorded in the same quarter of 2021 and higher than the 10 55 per cent it contributed in the preceding quarter

"The sector in the second quarter of 2022 recorded a growth rate of 6 55 per cent in real terms, year-on-year From the rate recorded in the corresponding period of 2021, there was an increase of 0 99 percentage points Quarter-on-quarter, the sector exhibited a growth of 13 41 per cent in real terms

"Of total real GDP, the sector contributed 18 44 per cent in 2022 second quarter, higher than in the same quarter of the previous year in which it represented 17.92 per cent and higher than the preceding quarter in which it represented 16.20 per cent."

The latest statistics obtained from the website of the Nigerian Communications Commission (NCC), the telecom industry regulator, showed that broadband subscription and penetration increased in 2022

According to the statistics, in July 2022, Nigeria recorded broadband subscription number of 84 9 million with a penetration rate of 44 49 per cent In August 2022, broadband subscription increased to 85 2 million and penetration also increased to 44 65 per cent In September 2022, broadband subscription rose again to 86 06 million with an increased penetration of 45 09 per cent In October 2022, broadband subscription also increased to 86 94 million and penetration also increased to 45 55 per cent

The Executive Vice Chairman, Nigerian Communications Commission (NCC), Prof Umar Garba Danbatta, said with the continued increase in the growth rate of broadband subscription and penetration, Nigeria would be able to achieve the 70 per cent broadband penetration target as contained in the Nigerian National Broadband Plan (2020-2025) The broadband plan seeks to deliver data download speeds across Nigeria at a minimum of 25Mbps in urban areas, and 10Mbps in rural areas, with effective coverage available to at least 90 per cent of the population and penetration rate of 70 per cent by 2025 at a price not more than N390 per 1GB of data The broadband plan also targets the deployment of nationwide fibre coverage to reach all state capitals, and provision of a point of presence in at least 90 per cent of local government headquarters.

It also targets tertiary educational institutions, major hospitals in each state and fibre connectivity at statutory rates of N145/ linear metre for Right of Way (RoW)

Analysing the growth of broadband subscription and penetration in 2022, Adebayo said the growth helped more Nigerians to have access to the internet to perform various online transactions in the financial sector and the e-commerce sector He said more Nigerians were able to carry out online businesses in 2022, and also successfully carried out financial transactions from their smartphones and other devices "With increased broadband connectivity, people were able to communicate seamlessly through voice calls and data communication via chats " Adebayo said

Riding on the federal government's National Digital Economy Policy and Strategy (NDEPS 2020-2030), which seeks to fast-track digital development and empower Nigerians with the right technology skills that will enable them develop technology solutions that will drive digital transformation across the country, the NCC, under the leadership of Danbatta, initiated the development of ICT Parks in each of the six geopolitical zones, and the commission is in the process completing the technology parks. When completed, it will boost youth digital skills acquisition, promote innovations, provide jobs for the teaming Nigerian youth and ultimately support the overall digital economy agenda of the federal government.

According to NCC, the four main objectives of establishing the ICT Parks are to provide Innovation Labs and Digital Fabrication Laboratories (Fablabs) for use by ICT innovators and entrepreneurs to turn their ideas into products

Digital Economy Policy

Broadband Penetration

According to the statistics, in July 2022, Nigeria recorded broadband subscription number of 84.9 million with a penetration rate of 44.49 per cent.

and prototypes; provide a Commercial H capacity building and digital skills; creat employment and entrepreneurial activit facilitate smart city deployment across t industrial complex.

NDEPS, which was launched in Novemb by President Muhammadu Buhari, was d to reposition the Nigerian economy in o take advantage of the many opportuniti digital technology provides The policy w developed to diversify the Nigerian econ away from dependence on oil and gas se

The NDEPS has eight pillars which inclu Development Regulations; Digital Litera Development; Solid Infrastructure; Servi Infrastructure; Soft Infrastructure; Digita Societies and Emerging Technologies, a Indigenous Development

Consequently, the NCC's ICT Parks project resonates with three of the key pillars of the NDEPS, which Danbatta said, impacted the Nigerian economy in 2022

The ICT Parks, involve the construction and equipping of a fully-functional Tier-4 Digital Industrial Complex (DIC) in each of the six geopolitical zones across the country Danbatta promised that since the project was designed to have a national spread, the commission would ensure that no part of the country would be left out of the initiative, adding that every corner of Nigeria will see the initiative taking off at different times

The NCC, in collaboration with the Ministry of Communications and Digital Economy, in 2021, commenced the process of auctioning 5G spectrum licence and concluded it in 2022, after it issued 5G licence to MTN Nigeria Plc and Mafab Communications Limited In November this year, NCC planned the second round of 5G spectrum auction in the 3 5GHz band, and had released the final information memorandum and bidders have expressed their interests to bid, before NCC eventually announced Airtel as the winner of the 5G spectrum in December, since it was the only operator among the bidders that met the payment deadline for the 10 per cent initial bid deposit

According to the information memorandum, which NCC had released, NCC had planned to offer the remaining lots of 2 x 100MHz TDD in

he 3.5GHz Spectrum band to support the rollout of 5G services in Nigeria. The proposed deployment is in line with the National Digital Economy Policy and Strategy (NDEPS) 2020 - 2030, National Policy on Fifth Generation (5G) Networks for Nigeria's Digital Economy and in fulfilment of one of the key initiatives of the Nigerian National Broadband Plan 2020-2025 (NNBP)

5G technology, also known as the fifth generation technology, is expected to bring a lot of benefits and opportunities that will engender accelerated growth and smart living in the country, when fully deployed The technology is also expected to bring substantial network improvements, including higher connection speed, mobility and capacity, as well as low-latency capabilities 5G is projected to contribute $2 2 trillion to the global economy by 2034, according to a 2020 GSMA Intelligence report, titled: 'The Mobile Economy' Determined to take the market by storm, MTN had earlier this year, launched its commercial 5G network in Lagos and Abuja, with plans to launch in additional five cities, namely Port Harcourt, Ibadan, Kano, Owerri, and Maiduguri

The Chief Executive Officer of MTN Nigeria, Mr Karl Toriola, had said customers with certain enabled devices would be allowed to connect with and try out the new service where coverage is available

To access the 5G network and enjoy its benefits, customers will need compatible devices, such as routers and mobile phones, which can be preordered from designated MTN walk-in stores and online via the MTN Nigeria website and emarketplace

5G Spectrum Auction

Chief Marketing Officer, MTN Nigeria, Adia Sowho, said: "Every major technological evolution redefines what is possible - changing the way we live and the way we connect MTN Nigeria has been at the forefront of every leap in telecommunications: from GSM to 2G, 3G, and 4G 5G has the potential to change everything It will allow us to connect, create, collaborate, and compete in ways we have not even begun to imagine "

The Challenges

Despite the achievements of telecom sector in 2022, the sector also faced some challenges, which Adebayo said must be addressed in 2023 in order to sustain the gains of the telecom sector

According to Adebayo, "The telecom sector had its challenges in 2022 Telecom operators suffered too many destructions of telecom equipment in 2022, which affected infrastructure rollout across the country Telecom masts and a lot of fibre optic cables were damaged in 2022 The sector suffered multiple regulations from different tiers of government and government agencies, who used that opportunity to impose multiple taxes and levies on telecom operations in the country. The challenges affected growth in telecom because telecom operators had to contend with the challenges."

We were also faced with the challenges of Forex, and high cost of diesel to power base transceiver stations (BTS). A lot of the telecom sites run on diesel and cost of diesel jumped from less than N300 per litre in January 2022 to over N800 per litre by December 2022, which affected the cost of delivering telecom services, even though we have not increased cost of telecom services, Adebayo further said. He, therefore, called on the government to begin to think about the sustainability of the telecom industry, to avoid further challenges in 2023.

Emma Okonji is a Nigerian journalist and writer who has been covering the technology sector for over 15 years She is currently the Technology Editor at ThisDay Newspaper, one of Nigeria's largest daily newspapers Okonji has won several awards for her work, including the Nigerian Academy of Science Media Award for Science Reporting She is known for her insightful and informative articles on technology and its impact on society, particularly in Nigeria and Africa as a whole

Emma Okonji

Utilizing the Validation Agent Framework to Support Greater Financial Inclusion for Indian SMEs

Rubix Data Sciences became GLEIF’s first Validation Agent in India in March 2022. One year on, Mohan Ramaswamy, Co-Founder & CEO of Rubix, sat down with GLEIF to discuss how this new role in the Global LEI System is enabling Rubix to support greater financial inclusion for SMEs across India.

In 2020, GLEIF launched the Validation Agent (VA) role within the Global LEI System, enabling financial institutions to simplify Legal Entity Identifier (LEI) issuance for their clients, reducing their onboarding timeto-revenue, and future-proofing their institutions for digital innovation.

The Validation Agent role is now performed by more than ten organizations globally, spanning Africa, China, Europe, India, the Middle East, and North America, with Rubix Data Sciences becoming the first India-based Validation Agent in 2022. Since then, Rubix has been actively engaging with key stakeholders and organizations across the region to promote broader adoption of the LEI. Mohan Ramaswamy is Rubix Data Sciences’ Co-Founder & CEO.

What challenges do Small and Medium Enterprises (SMEs) in India face when looking to break into international markets?

The crux of the challenge for many SMEs is the inability to prove and verify their identity, making it difficult to formally participate in the global financial system Favorable, or indeed any, access to capital, credit, and trade finance arrangements from banks and government schemes is essential for engaging meaningfully in the global marketplace Without these vital economic assets, funding working capital needs for imports and exports, delivering quality products and services, driving digital transformation, and attracting skilled talent becomes near impossible Yet this access requires SMEs to prove who they are

SMEs are also suffering from a fundamental trust deficit It is almost impossible to establish credibility and legitimacy with overseas buyers and sellers without a verifiable business identity In turn, validating the identity of overseas business partners is also difficult

Rubix Data Sciences became GLEIF’s first Validation Agent in India in March 2022 One year on, Mohan Ramaswamy, Co-Founder & CEO of Rubix, sat down with GLEIF to discuss how this new role in the Global LEI System is enabling Rubix to support greater financial inclusion for SMEs across India

How can globally recognized verifiable business identities help more SMEs gain access to the capital and trade finance needed to foster greater financial inclusion?

While India has made tremendous progress in fostering greater financial inclusion through the 'JAM trinity’ (Jan Dhan bank accounts for the

MOHAN RAMASWAMY, CO-FOUNDER & CEO AT RUBIX DATA SCIENCES

non-banked, Aadhar Identity Numbers, and Mobile Numbers), there is still a lot of ground to be covered Happily, a verifiable business identity such as the LEI opens doors for SMEs in the financial ecosystem Once they can prove that they are a valid entity, they are able to build a financial track record with banks, financial institutions, and other lenders This enables them to access financing on more favourable terms, meaning they are much less likely to fall prey to unscrupulous moneylenders charging exorbitant interest rates

What’s more, an SME with an LEI will find it easier to transact with large companies as a supplier, customer, distributor, or dealer while also establishing a trade credit history with these companies by accepting and making payments through the formal banking system

significant inbound capital investment

Given these benefits, Rubix signed a Memorandum of Understanding with the Federation of Indian Export Organizations (FIEO) in July 2022 to facilitate LEI issuance to Indian exporters and entities These organizations play a critical role in driving India’s socio-economic growth, and we recognize that equipping them with LEIs is particularly important because it will help them stand out in the global marketplace

Since then, Rubix has engaged over a thousand FIEO members and SMEs to generate awareness about the LEI By obtaining an LEI through Rubix, FIEO members benefit from increased trust and transparency with their counterparties, banks, financial institutions, and other stakeholder organizations

Since becoming India’s first Validation Agent, we have worked to build awareness of the various benefits the LEI delivers and support SMEs to obtain an LEI smoothly. Once obtained, it is possible to unlock access to trade finance and integrate it into domestic and global supply chains This drives a virtuous cycle that promotes growth and opportunity What’s more, as SMEs are the backbone of the Indian economy, this will naturally accelerate and increase financial inclusion across the entire country, as well as promote

Rubix has also engaged various export promotion councils, including the Gems & Jewelry Export Promotion Council (GJEPC), to build further understanding of the value of obtaining the LEI, particularly for their SME members

Rubix is also encouraging large corporations to mandate the LEI throughout their supply and distribution chains This ensures they only transact with those entities whose identity is validated, helping prevent fraud and money laundering and driving comprehensive risk management This also

How is Rubix’s role as a Validation Agent helping to facilitate more opportunities for SMEs in the region?

provides an impetus for SMEs who are part of these large supply and distribution chains to obtain an LEI

What further benefits is Rubix delivering to its clients through this role?

There has been significant regulatory momentum for the LEI over recent years. For example, banks must comply with multiple mandates from the national banking regulator – the Reserve Bank of India (RBI) –requiring the use of the LEI. The Securities and Exchange Board of India (SEBI) has also mandated the use of LEIs for certain financial intermediaries and capital market participants. The Insurance Regulator (IRDAI) also requires organizations to obtain the LEI for certain transactions.

As a Validation Agent, we are supporting organizations, including SMEs, to streamline and accelerate compliance with these regulatory requirements and guidelines and obtain an LEI seamlessly and costeffectively Rubix has also been active in working with banks to issue the LEI to their customers to ensure compliance with the relevant RBI, SEBI, and IRDAI guidelines

More broadly, we are proud that government organizations such as Prasar Bharati (India’s public service broadcaster) have trusted Rubix to assist them in obtaining the LEI from Legal Entity Identifier India Ltd (LEIL) Similarly, we have successfully assisted large public sector undertakings like the Bank of India in obtaining LEIs for three of its employee funds (Gratuity Fund, Provident Fund, and Pension Fund)

How does the Validation Agent status complement and enhance Rubix’s current offering?

Rubix operates in the risk management domain and has solutions across every stage of the B2B credit risk life cycle The LEI complements our current set of KYC offerings that help customers establish their own identity or validate the identity of their counterparties Most importantly, the LEI helps establish the global identity of an entity, and not just in a particular country. This will be especially helpful for Indian businesses, including SMEs.

Rubix has also incorporated the LEI into its Business Information Reports (Cross Border & Domestic) and Due Diligence Reports pertaining to companies, proprietorships, and partnership firms. These reports are relied on by banks, FinTechs, credit insurers, large companies, and SMEs to make risk decisions. Put simply, we believe that Validation Agent status will help Rubix comprehensively meet the risk

management needs of all our customer segments, including banks, FinTechs, companies, insurers, and SMEs

As the world’s economies continue to ‘go digital’, what role do you see the LEI playing in helping businesses grow around the world?

Globally, the LEI improves transparency, simplifies identity validation, sheds light on relationships between businesses, and helps fight money laundering and terrorist financing. These are imperative for reducing risk in the global financial system.

This is even more important when considering how rapidly digital transformation has redefined the business landscape. New methods and systems are required to effectively identify and validate businesses, which have shifted identity management to the center of global risk management.

In this digitalized world, organizations with an LEI face much less friction when transacting with banks and other financial players. Similarly, transacting with international parties is smoother. As more jurisdictions and regulators adopt the LEI as the identifier of choice, its significance, relevance, and utility will only continue to grow.

About the Global Legal Entity Identifier Foundation (GLEIF)

Established by the Financial Stability Board in June 2014, the Global Legal Entity Identifier Foundation (GLEIF) is a not-for-profit organization created to support the implementation and use of the Legal Entity Identifier (LEI) and its digital counterpart the verifiable LEI (vLEI) GLEIF is headquartered in Basel, Switzerland GLEIF’s mission is to manage a network of global partners to provide trusted services and open, reliable data for unique legal entity identification worldwide GLEIF makes available the technical infrastructure to provide, via an open data license, online access to the full global LEI database free of charge to users GLEIF is overseen by the Regulatory Oversight Committee, which is made up of representatives of public authorities from across the globe

Diversity and inclusion underpin GLEIF’s values This is reflected in its workforce of approximately 60 staff from over 20 nations, its operational excellence, and its commitment to open, global participation in the Global LEI System.

For more information, visit the GLEIF website at https://www.gleif.org/en.

ARTICLE BY ABIMBOLA ODEDEYI, COUNTRY MANAGER, UNLIMINT NIGERIA

In recent years, the financial business ecosystem has experienced a significant transformation, particularly with regard to payment solutions

Particularly between 2021-2022, The payments industry experienced a period of transition that fueled a greater level of industry consolidation and attracted more tech-savvy ecosystem players

Merchants learnt to incorporate newer and easier ways to reach and engage customers through digitallypowered storefronts; people traded with various types of cryptocurrencies as an alternative way to enjoy financial freedom and hedge their funds against economic instability; simply put, payment solutions have developed into an enabling function for the seamless operation of the business and financial worlds.

However, 2022 has also seen a sharp economic downturn, including hyperinflation, and a spike in the cost of living As the payment ecosystem continues to adapt and evolve in the face of such challenges and opportunities, here are the trends we believe will garner the most attention in 2023:

As is already common knowledge, the payment solutions market will continue to see significant growth in 2023 thanks to the relevance of cryptocurrencies and other digital assets Most significantly, there will be more regulation and more trust in it as a legitimate payment alternative

This is because cryptocurrency has established a huge significance in user applications and adoptions. In light of this, it is also anticipated that more countries will adopt or test the use of Central Bank Digital Currencies.

To ensure user safety, more private exchanges will take extra precautions to protect their clients and seek to operate in a regulated environment, thereby increasing trust in Crypto as a long-term payment solution.

As cryptocurrency becomes more regulated, the likelihood of the trust factor improving is high and we envisage more traditional retail channels offering it as an alternative payment method in addition to the existing traditional payment methods.

Crypto/ Central Bank Digital Currencies DeFI

The growing popularity of fiat-to-crypto and crypto-to-fiat services such as GateFi makes it much easier for new customers to enter the DeFi world

The plans of some countries’ central banks to issue a tokenized non-cash currency based on

blockchain technology may serve as another incentive to popularize DeFi

Stablecoins issued by regulated organizations can partially replace private decentralized stablecoins and cryptocurrencies in DeFi, which should increase trust in DeFi among new users and institutional investors alike

Solving risk management and fraud in finance has been a significant concern for many payment solution organizations around the world, and we predict that this will become even more apparent in the coming year

Competitive pressures and the benefits of AI optimization are driving business processes, and in some cases entire industries, to rely more heavily on AI

Companies are devoting more resources to developing, procuring, or acquiring AI tools and strategies to meet this demand

This is further underpinned by other external risk management factors that influence the Fintech ecosystem such as the diverse geopolitical realities across the globe, the heterogeneity of regulatory requirements across different markets, the emergence of new barriers to the flow of funds, as well as the innovation of new fraudulent measures by cybercriminals

As a result of all of these, it is reasonable to anticipate an emerging trend of the use of artificial intelligence technologies as financial protection and risk management tools in the coming year

made to cater to the demands of customers, whether those needs are directly or indirectly related to the management or usage of their cash. There are other businesses that provide these Superapp services, and Revolut, a financial application that enables you to manage investments, buy insurance, and book hotels, is just one shining example.

Additionally, customers can also order movie tickets, summon a taxi, or schedule a doctor’s appointment directly within an application called WeChat

Africa is seeing continued growth in digital services and super apps and we anticipate that this sector will continue to expand in the upcoming year. This trend is evidently emerging amongst financial institutions across the world.

These days, the banking applications of conventional financial institutions and other neo-banks are characterized by a plethora of supplemental features

Numerous Nigerian banks that have been successful in incorporating a lifestyle arch into their standard mobile banking applications are also following this trend

Simply put, financial institutions want to centralize their applications around their customers’ digital needs; the exit threshold of the aforementioned clients invariably drops when such needs are met

AI as a Risk Management and Anti-Fraud Tool

The Superapp Boom

Banking as a Service (BaaS)

This typically implies that payment institutions offer brands, businesses and companies access to their regulated products, often, through Application Programming Interface (API) models, with the said institutions embedding financial products into their end-user offerings

The Use-Cases for this can be as small as the issuance of a virtual card solution to as big as building the next FinTech giant

APIs offer flexibility to businesses looking to embed financial products and they reduce unnecessary friction as any digital company can offer this service without the rigmarole that regulations bring

It’s interesting to note that during the past year, searches on Google for terms like “digital banking,” and “FinTech” have surged tenfold, along with the number of companies providing BaaS

As a result, it can be concluded that Banking as a Service is undoubtedly here to stay and will significantly influence payment solutions

Overall, we are optimistic about the potential of the payment solutions market; we envision a time when using digital payments is quick, easy, and frictionless for everyone.

The payment industry has remained at the forefront of innovation and will continue to do so as long as user protection and transparency remain top priorities.

Abimbola Odedeyi

Abimbola Odedeyi is a seasoned professional with over 11 years ’ experience in the financial services industry and her expertise cuts across sales, business development, strategic partnerships, key account management, customer service in the commercial and retail banking as well as in the payment space

She has worked in two of the top 5 banks in Nigeria (Guaranty Trust Bank, United Bank for Africa) before progressing to Nigeria Inter-Bank Settlement System where she strategically partnered with stakeholders in the financial services industry (federal and state governments, deposit money banks, microfinance banks, mobile money operators, payment service operators and fintech companies) in facilitating quite a number of digital payment projects worth over $1billion in value

Bracing for uncertainty: 10 financial services predictions for 2023

As recession anxieties and geopolitical tensions cloud the global economic horizon, the financial services sector is preparing for a rocky 2023 How will industry leaders wield their data and advanced analytics to weather the storm? Some of SAS’ foremost industry experts predict what consumers, financial firms and the parties protecting them can anticipate in the year to come

Predictability returns

“2023 won’t be the year of chaos In fact, 2023 will mark the return of some degree of predictability The economic impacts of this once-in-a-lifetime pandemic were to be expected: pent-up demand, tight labour markets and supply chain struggles These factors in combination were bound to stoke inflation, prompting rate increases as an obvious policy response Anticipate increased delinquencies in retail and commercial portfolios and high market volatility as the world continues to navigate the fallout Robust scenario analysis, near real-time monitoring, and general organisational agility will rule the day,”

Anthony Mancuso, Director, Risk Solutions Consulting

Customer-centric decision-making launches a new era of differentiated customer engagement

“The ability to make decisions across the entire customer lifecycle will become a significant differentiator in the race to gain and retain customers Think holistic decisions across risk, fraud, and marketing, all on a single architecture, creating an exclusive customer experience that can set one apart from the competition I predict that increasing fraud losses and a drive towards automation will motivate centralised governance over disparate solutions and consolidation of decisioning capabilities at onboarding and throughout the customer journey,” Stu Bradley, Senior Vice President of Fraud and Security Intelligence

‘Zombie firms,’ flash crashes force an economic reckoning

“Rising interest rates and the strengthening of the US dollar signal trouble in the face of historically high sovereign debt and ongoing geopolitical instability 2023 could see a string of sovereign defaults, while liquidity challenges in treasury markets have the potential to spark flash crashes, exacerbating market fragility These factors combined will force an economic reckoning, particularly among so-called ‘zombie firms’ –companies that don’t turn enough profit to cover their debts – as borrowing becomes more expensive and less abundant

Companies that lack strong balance sheets and ability to generate cashflows will be at high risk of default, while those that survive are apt to prioritize the quality of earnings and cashflow sustainability over their growth rates,” Stas Melnikov, Head of Risk Portfolio

EXPERTS FROM ANALYTICS AND AI LEADER SAS FORECAST THE TRENDS THAT WILL MOST IMPACT FINANCIAL SERVICES ORGANISATIONS IN THE YEAR AHEAD

Banks double down on ESG progress for greater resiliency

"Amid ongoing economic turbulence, one might expect financial institutions to pull back on environmental, social and governance (ESG) initiatives – but signs point to most banks staying the course or doubling down. A recent survey of 500 banking executives revealed that three-quarters (76%) believe financial services has an obligation to address societal issues, and yet 64% of executives think banking lags behind other sectors in advancing ESG goals.

Clearly, financial services leaders recognise the opportunity to shore up long-term resilience, even as they weather the coming storm. With ESG as a north star, banks could emerge from this recession more fiscally resolute – and those that lead in the ESG revolution will no doubt reap the added reward of having furthered customer trust and loyalty in the process, ”

Alex Kwiatkowski, Director of Global Financial Services

Cryptocurrency drives the search for criminals

“While recent events will certainly drive increased regulatory scrutiny, cryptocurrency is not dead. Crooks will continue to use crypto to mask their nefarious activities and launder their ill-gotten gains. In turn, law enforcement and regulators will better hone their ability to understand the movement and exchange of illicit funds, improving the industry’s ability to triangulate human trafficking, drug dealing, money laundering and other criminal activities with speed and precision,”

Dan Barta, Principal Enterprise Fraud and Financial Crimes Consultant

The rise of APIs and cloud computing

“As changing relationships across risk factors expose the limits and weaknesses of legacy risk management systems, financial institutions will turn to APIs and other tools to patch or replace weak links as they are found. Cloud computing and speed-to-market of targeted solutions will grow significantly more important as institutions first seek to ‘plug the leaks in the dam’ before tackling large-scale replacement of legacy systems,” Martin Zorn,

Managing

Director of Risk Research and Quantitative Solutions.

Climate change risk comes for consumers

“As financial risks from climate change are better understood, banks will begin pricing it into mortgages and commercial loans Prepare to pay higher prices if you live in active hurricane, flood and fire zones, ” Naeem Siddiqi, Senior Advisor for Risk Research and Quantitative Solutions

Government regulators spark an anti-money laundering modernisation wave

“Financial intelligence units (FIUs) are in for quite a year Criminals and tax evaders have emerged as among the cryptocurrency boom’s greatest ‘innovators,’ leaving a big gap in the effectiveness of suspicious activity

reports As global conflicts continue to fuel substantially increased sanctions against bad actors, FIUs will rethink how they operate – from their legal authority to the IT systems that support their missions My eyes are on Singapore, Germany and Canada as likely forerunners to spark the first wave of modernisations that spurs broader anti-money laundering innovation focused on AI and real-time capabilities,” Shaun Barry, Global Director, Fraud and Security Intelligence

In efforts to improve South Africa’s anti-money laundering, corruption, and terrorism regulation and keep the country from being grey listed, in late December President Cyril Ramaphosa signed two key pieces of legislation that were earlier passed by Parliament into law As National Treasury continue to prepare for its upcoming meeting with the global corruption watchdog - the Financial Action Task Force (FATF) – it is reportedly confident that it has been able to address 15 of 20 legal deficiencies previously cited by the FATF –and that the remaining 5 deficiencies are expected to be addressed through non-statutory initiatives

“Despite these recent steps and reports, it may not be enough – at least in the short-term – and there is still a very strong possibility of South Africa being grey listed, pending the final assessment and recommendations expected from the FATF’s plenary towards end of February But whether the country is grey listed or not, the public and private sectors should view this process as an opportunity to audit and strengthen anti-money laundering (AML) regulations and initiatives and adopting advanced AML solutions purposely built for detecting and combating financial crimes,” Stephan Wessels, SAS Head of Customer Advisory for South Africa

Retreat from globalisation spells opportunity for fintech upstarts

"Amid ongoing supply chain contraction and mounting political and social pressures, we'll see a massive retreat from the globalisation that has driven the world for the last 30-years As business ecosystems shift to operating more regionally, global financial services firms will adjust their strategies and operations rapidly and pragmatically

This could present new opportunities for geographically aligned fintechs and insurtechs to integrate with traditional industry players, boosting agility and innovation for all As the business climate grows less hospitable, such partnerships would represent a valuable lifeline for tech upstarts Those who go it alone will struggle to survive,”

Norman Black, Director, EMEA Insurance Solutions

Financial services will see a scenario analysis renaissance

“Swirling uncertainty around climate change, geopolitical instability, energy crises and other factors will inspire a scenario management and analysis renaissance. Far from being a static output, scenario will become a dynamic output of dedicated risk models. Topics like scenario creation, scenario perturbation, risk analysis associated with a given scenario and reverseengineering of a scenario will be able to answer questions left unanswered by traditional approaches,” Christian Macaro, Principal Risk Solutions Advisor.

See the future with SAS

Curious to gaze deeper into the future? SAS’ landmark Banking in 2035 study with Economist Impact examines the tectonic shifts that will reshape and redefine the banking sector in the decade to come. Dive in at SAS.com/betterbanking.

Or, go beyond banking with an exploration of SAS’ cross-industry predictions compilation.

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