Evolution of Mobile Banking Regulations

Abstract:     
Legislation takes place slowly and incrementally, much like evolution. Ideas in one field get transferred to others. New mutations and new fusions take place with apparently dissimilar partners creating a need for other adaptations. Such a fusion is now occurring between the banking industry and the telecommunication industry, creating a concept called mobile banking, which would enable transaction cost reduction and increase in outreach to enable poor unbanked people to access micro financial services. This fusion is necessitating a change in the regulatory environment to accommodate and adapt to this fusion. This paper studies the evolution of the mobile banking regulations in five zones (Kenya, South Africa, Philippines, India and European Union) in different stages of economic development and offers possible reasons for such differing evolutions. Future research directions are also indicated.

Number of Pages in PDF File: 23

Keywords: banking, microfinance, microcredit, telecommunications, evolutionary economics, regulation, law and economics, institutions, loss aversion, transaction costs

JEL Classification: E4, E5, G21, G29, K00, K2, D72

working papers series