EBRD backs mobile financial services in Tajikistan
By Aynur Jafarova
The European Bank for Reconstruction and Development (EBRD) supports Tajikistan's Central Bank's pilot project to create a regulatory framework for mobile financial services in the country.
The project was launched in Dushanbe on July 21, EBRD said.
Regulators and representatives from local and international financial institutions presented and discussed business plans for the rollout of mobile services in the country.
This new framework allows banks to use innovative technologies and existing retail infrastructure to expand their services and footprint outside of traditional bank branches.
It will also enable the provision of innovative mobile payments services by non-banks in Tajikistan.
Mobile financial services are revolutionizing the way millions of people around the world manage their finances and are significantly expanding the reach of the traditional branch-based banking model.
Financial services now offered through agents and mobile devices include core financial services (account opening, deposits/withdrawals, loans, insurance) and payment services (remittances, bill payments, merchant payments).
"The advance of this new technology has the potential to enable the financial inclusion of millions of Tajik people. Thanks to the project, Tajikistan now has the regulatory framework and know how required for a vibrant mobile money market which will help bring financial services to its unbanked population", Sibel Beadle, Senior Banker at the EBRD said.
While advanced services like mobile money are commonplace in certain parts of the world, the EBRD has been working to unlock its potential in less developed markets.
In Tajikistan the EBRD pursued a year-long technical cooperation project, funded by the French Finance Ministry, which created draft laws and regulation for both agent banking and mobile payments.
As part of the project, a review of the country's financial sector and telecommunications industry was carried out and the ability of both financial institutions and mobile operators to provide mobile financial services was assessed.
A range of organizations were consulted throughout the project, including local financial institutions, the Central Bank of Tajikistan, the Aga Khan Foundation, IFC, GIZ and mobile operators. Their input was incorporated into the regulatory guidelines and the drafting of laws is currently underway.
"The mobile banking project that will be implemented with the technical assistance of the experts of international financial institutions such as European Bank for Reconstruction and Development is an important step in offering modern banking services. Indeed, this initiative will make it possible to bring financial institutions' services closer to customers' needs and requirements", Abdujabbor Shirinov, Chairman of the National Bank of Tajikistan said.
The EBRD operations in Tajikistan started in 1992 with technical cooperation, with the first investments in 1996. During this time, the EBRD has concentrated on private sector development, which accounts for over 70 percent of the Bank's investment there.
Board of Directors of EBRD has approved a new country strategy for Tajikistan which will define the Bank's activities in that country for the next three years from 2012 to 2015.