By Robert van Breukelen, CEO of Itemate Solutions
NAIROBI, Kenya, October 10, 2024 -/African Media Agency (AMA)/- Africa’s thriving telecommunications sector continues to expand rapidly. Starting from a base of $63.17 billion in 2024, the sector is expected to reach $82.34 billion by 2029, as the continent’s young population adopts digital technologies at an impressive rate.
Although the golden age of revenues from telephone services is now over, telecommunications are increasingly looking to digital financial services as a growth lever for the next phase of their development.
Digital financial services, such as mobile money, insurance, healthcare and banking, promise to integrate a greater share of Africa’s unbanked population into the formal economy, unlocking significant benefits for countries and their citizens.
According to the GSMA, mobile money growth was 17% year-on-year in sub-Saharan Africa, reaching 763 million active accounts in 2022 and processing 45 billion transactions worth $832 billion.
This growth in mobile money accounts is also accompanied by a rapid increase in the number of subscribers, which is expected to exceed 800 million by 2025.
Concern grows over security issues
While large telecommunications operators have already proven themselves in managing security issues, new entrants will need to be extra vigilant to ensure that their financial services are secure and do not compromise the security of their growing customer base, especially as Fraudsters are refining their strategies.
Banks and major insurance companies have extensive systems, processes and policies to protect their customers against fraud and other financial crimes. As a growing number of telecom operators look to enter the lucrative digital financial services market, it is essential that they make customer protection a top priority.
According to a report, mobile money fraud exceeded $1 billion in 2021, raising concerns about the security of this new generation of digital financial services.
Additionally, several African countries are implementing new regulations aimed at improving tax collection, fighting crime and boosting their economies.
This creates a complex situation for telecom operators, who must juggle an increasingly demanding regulatory framework, rigorous customer protection measures, while maintaining high levels of profitability and growth.
Measures and technologies to protect subscribers
In response to these challenges, many telecom operators are now restricting customer registration at their points of sale, providing enhanced control and ensuring that only trusted agents participate in the subscription process.
However, this approach slows the pace of new customer acquisition compared to using third-party agents on the ground.
It is therefore crucial that operators strike the right balance between rapid customer registration and compliance with regulatory requirements, while protecting them against fraud and other risks.
Collaborating with partners who understand local regulatory realities as well as consumer preferences is likely the quickest solution to achieving this balance. Itemate’s user-friendly technology solution, designed specifically for African operators, offers customers the option to register through an agent with full traceability, or self-register, avoiding disclosing their information personal to third parties.
This solution combines a deep understanding of local consumer preferences with advanced artificial intelligence capabilities to validate customer information, while ensuring full compliance with local regulations through direct integration with government systems.
For more information about Itemate Solutions, please visit www.itemate.com
Distributed by African Media Agency (AMA) pourItemate Solutions.
About Itemate
Itemate Solutions is a leader in custom digital solutions and software platforms, operating in ten countries across Africa and the Middle East for over 18 years. Our mission is to provide reliable and innovative digital solutions, which enable our partners to profitably grow their customer base.
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Source : African Media Agency (AMA)
2024-10-10 10:33:00
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