Building a National Fintech Strategy
Driving financial inclusion in Palestine through the development of a National Fintech Strategy and a corresponding governance framework.<br>
Picture with the Governor of PMA, Senior Leaders of PMA and GIZ
Coordinated by the Palestine Monetary Authority, Vedanvi partnered with SANAD Fund, Finance in Motion and Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) to develop a National Palestine wide Finteeh strategy, involving all stakeholders across the ecosystem.
This strategy will enable Palestine to deepen financial inclusion and transform the financial system for economic prosperity and political confidence.
Driving Financial Inclusion
Palestine is in a unique political and economic situation, unlike anywhere else in the world. According to a 2016 survey, only 36.4% of Palestinians had access to finance.
A National Financial Inclusion Strategy was conceived between the regulators and government to address the demand side, mainly focusing on consumer education and product creation to meet the meeds of the excluded. This strategy is currently being implemented.
Being a progressive regulator, the Palestine Monetary Authority, realised that without addressing the supply side with Fintech led transformation, financial inclusion and transformation of the financial system was not possible.
They requested support to develop a coordinated nationwide Fintech Strategy, bringing all stakeholders across the ecosystem, to the table for discussion and implementation.
The key challenge was, how to coordinate a nationwide Fintech strategy with so many stakeholders involved within the ecosystem, and with a complex web of power dynamics.
At commencement of the project, we researched the landscape tapping into desk based research and telephone discussions, to identify a variety of stakeholder groups, including:
- Other regulators
- Relevant Government departments
- Traditional Banks, Insurers, Microlenders, Insurers and Wealth Managers
- Entrepreneurial start-ups
- Investors and Donors
The PMA were themselves surprised how we were able to compile this list without knowing the region. They themselves were not aware of many of the stakeholders we unearthed.
With help from PMA we arranged a series of group meetings, engaging with over 100 stakeholders from all parts of the ecosystem. The meeting helped us understand the drivers for change, the opportunities that Fintech can present, as well as the challenges. Based on this research, we produced a landscapinbg report capturing the current ecosystem.
We then developed a comprehensive 180 page recommendations report, factoring in the driver for change, the action plan, risks and mitigation strategy as well as KPIs and KRIs to track progress.
We consulted all stakeholders again on the recommendation, to produce a final Palestine National Fintech Strategy.
To ensure a coordinated implementation effort, we designed a comprehensive governance and oversight arrangement, using existing structures as far as possible, in order to speed up implementation.
Driving Meaningful Change
The greatest achievement was bringing all stakeholders within the ecosystem, together around a common goal of driving Financial Inclusion through a Fintech led transformation strategy.
We created a governance framework, that will ensure the coordinated implementation of the Fintech strategy. The country now has a clear and well thought out Fintech Strategy that has input and agreement from all parts of the ecosystem.
Ultimately, the Fintech Strategy will align all stakeholders to drive greater financial inclusion, which will in turn drive economic prosperity and upliftment of the Palestine people.