#8d6b16
Bank-only Licensing Model For E-money Issuance
Overview
| ROLE IN DELIVERY OF E-MONEY SERVICE | WHO PLAYS THIS ROLE? | |
|---|---|---|
| BANK | NON-BANK | |
| License to issue e-money | ||
| Direct communication with regulator to request authorization for, e.g., new services or revised transaction limits | ||
| Contractual agreement with customer | ||
| Branding of e-money service | ||
| Delivery of e-money service (directly and/or through agent network) | ||
| Safeguarding customer funds | ||
Licensing Models
Advantages & Disadvantages
Advantages
- Banks already licensed and supervised by financial authority.
- May already have sophisticated risk management and AML/CFT systems.
- Can use e-money as a stepping stone to additional banking services.
Disadvantages
- Banks may be unable to establish a viable business case for poor and rural population segments.
- May lack understanding of unbanked and underserved market.
- Few examples of major contribution to financial inclusion.
Bank Only
Country Examples
Bangladesh
bKash (bank subsidiary)
South Africa
FNB eWallet
