In a market economy, the institutions best placed to generate these innovations are in the private sector; institutions which have the incentives and expertise to do so. The rapid growth of mobile banking in East Africa is a phenomenon which has been driven by private sector initiatives.
Private sector banks and telecommunications companies, driven by the profit motive, have utilised new technologies to create new markets and have thus brought financial services to millions of people who previously had no access to these services. In these circumstances, what is the appropriate role of financial regulation?