But regulators cannot halt the advancement of technology just so that they are ready to regulate. In this situation, our challenge is to ensure that we keep pace with technology so that we are able to offer the required protection to all who access financial services using the new and unconventional payments systems. On our part, the Bank of Zambia shall focus its attention on the development of a robust regulatory framework that will address the key “hot button” issues of; 1. Prudential requirements; particularly those that relate to liquidity management and capital for infrastructure,  2. Consumer protection; with emphasis on disclosure of charges and confidentiality of customer information, and  3. Unfair trading practices particularly those related to monopolistic tendencies such as development of platform that are not compatible or not interoperable with platforms of other service providers. To strike a balance between a robust regulatory framework and the need for the framework not to hinder innovation and allow business to flourish, our efforts in establishing a robust  2  BIS central bankers’ speeches  framework will therefore be anchored on five key or internationally accepted best practice principles. These are: 1. The need to identify the types of mobile payment platforms to be permitted;  2. The need for an efficient mobile payments infrastructure such as settlements systems;  3. The need to design rules to regulate the information communication technology platform which is itself rapidly evolving;  4. Consumer protection; and finally  5. The need for compliance monitoring.

Bwalya K E Ng’andu: Accelerating growth and adoption in mobile payments Speech by Dr Bwalya K E Ng’andu, Deputy Governor (Operations) of the Bank of Zambia, at the 3rd Celpay Mobile Banking Conference, hosted by Celpay Zambia Limited, Lusaka, 26 October 2011. *  *  *  The Chief Executive Officer, Celpay International BV; Managing Director, Celpay Zambia Ltd, Mr. Miyanda Mulambo; The Conference Chairperson, Mr. Maxwell Banda; Chief Executive Officers of Commercial Banks and Financial Institutions; Representatives of International Organizations; Representatives of Zambian business associations; Distinguished participants; Members of the Press; Ladies and Gentlemen. Chairperson, it is my honour and privilege to speak at this, the 3rd Mobile Banking Conference being hosted by Celpay Zambia Limited under the theme “Accelerating Growth and Adoption in Mobile Payments”. The theme of this conference is particularly appropriate as it fits in very well with one major policy objective of the Financial Sector Development Plan; which is to increase access to financial services for the majority of the Zambian people. This conference, I believe, will provide a unique opportunity for participants to share ideas and experiences on innovations and trends taking place in the use of the mobile telephone technology as a convenient, safe and cost effective payment system. It should also offer the platform from which to address the challenges that such innovations can present in order to minimize potential disruption to the operations of the financial system that can arise from our failure to appreciate the possible impact of these challenges.