Call for law to regulate mobile banking

to any system that enables regular banking services through a mobile phone.
Since the adoption of multiple foreign currencies in 2009, Zimbabwe has witnessed a proliferation of mobile banking systems modelled on the one used in Kenya called M-Pesa.
The three mobile operators in Zimbabwe — Econet, Telecel and NetOne — offer mobile banking services.
Mr Vuma said that without the necessary legislation the sector was prone to abuse.
“Most mobile operators in the country have come into the banking system but there is no legislation to regulate their activities,” he said.
“We need legislation for this sector because we may find ourselves in serious fraud cases if the practice continues unabated,” he said.
The DPC is charged with refunding depositors in registered deposit-taking institutions including commercial and merchant banks, finance houses, discount houses, and building societies in case of bank failure.
Mr Vuma said in countries like Kenya where mobile banking was widely used, necessary legislation regulating transactions had since been put in place.
He said at the moment the Banking Act was being used to regulate mobile banking.
“We have told the Ministry of Finance about this issue and they assured us that they would be looking into it,” he said.
In Zimbabwe, Econet Wireless’ EcoCash facility has connected over one million users since its launch in September last year.
Analysts contend that the launch of mobile banking services in Zimbabwe has ushered a new era in delivery of banking products to the public.
Globally, at least 12 million people used mobile banking services in 2009 with the number expected to climb to 45 million by 2014. — New Ziana.