Fintech
Liberia Changes Rules to Promote Fintech Competition
The Liberian Telecommunications Authority (LTA) has introduced a new set of regulations designed to strengthen fintech companies and promote a more competitive mobile market.
The management of numbering resources, including short codes essential for mobile payments and USSD codes used for mobile banking menus, will change. Previously controlled by large mobile network operators (MNOs), these resources will now be overseen by the LTA. This, the regulator says, ensures fair distribution and prevents a single operator from monopolising these vital tools.
The change is described as particularly significant for fintech companies, as it gives them the ability to develop mobile financial products without having to follow the rules set by MNOs.
Wholesale access to telecom networks for VAS providers is also changing. Fintech companies rely heavily on VAS to offer mobile money transfers, digital wallets and other financial services, and the new rules ensure fair access to VAS, creating fertile ground for new technologies and services to grow.
It is argued that under the old system, an MNO could restrict access to its network, limiting the reach and impact of an app. The new LTA regulations create an environment where an entrepreneur can confidently launch a service, arming Liberians with previously unavailable financial tools.
Stakeholders from the telecom and financial technology sectors have apparently supported the changes. A one-day public consultation held on July 18 brought together key players, including established mobile money providers such as Lonestar Cell MTN Mobile Money and Orange Mobile Money, along with new financial technology companies such as Ewallie, Kolacash and TipMe. This collaborative spirit, it was said, symbolizes a promising future for Liberia’s dynamic and inclusive mobile financial ecosystem.
Or so many players hope. It’s still very early days, and the coming months and years may be a better indicator of whether the new regulatory regime delivers on its promise of allowing innovative fintech startups and smaller players to compete.