Abstract

Mobile money is seen as a tool for financial inclusion. Its emergence however, has raised challenges on adoption of a regulatory approach appropriate to the risks which this service has presented on the financial market. This study set out to assess whether the current regulatory framework in Malawi is suitable for the protection of vulnerable unbanked population of consumers while at the same time fostering growth of the market. The study was premised on the theoretical proposition that a regulatory framework which has capacity to protect consumers, mostly unbanked, and promote service providers on the mobile money market is one that adequately enables regulatory institutions to monitor and supervise suppliers on the financial market by proportionately protecting consumers in minimizing risks, ensuring availability of information, protects their funds and offering sufficient redress mechanisms. Using doctrinal research paradigm, comparative approach and qualitative methodology, the study compared the regulatory frameworks of Kenya and Malawi in regard to the adopted key aspects of the theoretical proposition developed in this study. Desk research technique was employed to develop theory, examine statutes in Malawi and Kenya and measure them against such aspects. The study found that although set out on a seemingly similar regulatory approach to that of Kenya, the current regulatory framework in Malawi does not adequately protect consumers and promote providers of mobile money. Reasons included lack of strong, clear and unambiguous mandates provided by the enabling statutes of various institutions and absence of regulatory instruments strategically calibrated to protect consumers of mobile money. Although the Payment Systems Bill, 2015 is promising in a number of areas, it lacks definite consumer protection norms which are key to the promotion of mobile money service. The implications of the findings on theory, law reform, practice and research include adoption of an integrated regulatory approach with the resultant amendment to the Reserve Bank of Malawi Act; and, promulgation of legally binding norms on consumer protection in mobile money. Where jurisdictional overlaps exist, a framework for referrals should be put in place to promote referrals to the most suited regulator.

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School	: School of Law, Economics and Government
Issued Date	: 2016

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