from ARNOLD MULENGA in Lusaka, Zambia
LUSAKA, (CAJ News) – ZAMBIA is encouraging collaborations between banks and finance technology (fintech) companies amid rivalries between the two sectors.
Fintechs are disrupting the financial services space in Zambia and beyond.
Differences stem from fears afflicting traditional banks that fintechs are capturing market share from them.
There is concern the rise of fintechs is destabilising the financial sector by eroding profits and raising operating costs.
At the just-concluded Banking and Finance Conference in the capital, Lusaka, officials appealed for collaborations.
Felix Mutati, Minister of Science and Technology, presided over the conference.
“Banks must begin to embrace fintechs and start working together with them, sharing rewards and eliminating the physical costs of doing business by creating new jobs,” he said.
Mutati said the United Party for National Development-led government would continue to provide an enabling environment to encourage cross sector partnering that will see more collaboration between public and private sector as well as consumers.
“Let us go digital, cashless and adapt to new trends,” the minister said.
– CAJ News