CBL launches mobile e-banking with Madar |
By Sami Zaptia.
London, May 29, 2017:
The Central Bank of Libya (CBL) has announced the launch of its mobile electronic payment services project in collaboration with mobile operator Al-Madar. The CBL said it expects the services to be operational by August of this year.
The CBL explained that it was “ keen to improve and upgrade the level of banking services and promote electronic payment services and distribution channels, ” which, she explained, “is one of the most important strategic priorities of the bank”.
Mobile electronic payment services are ” important to improve the development of the Libyan economy and facilitate the flow of funds between users electronically, with the aim of moving from a paper economy to a digital economy, and to develop alternative solutions that facilitate buying and selling ” and to enable ” the progressive distribution of paper money, the growth of electronic services and the entrenchment of this culture in society, ” explained the CBL.
The Central Bank added that it has partnered with Madar Company, to create a mobile electronic payment service platform, “to keep abreast of recent developments in electronic and distribution channels of banking technology. , and to create a solid technological infrastructure that enables direct banking operations, via mobile phones, in a secure, streamlined and rapid manner ”.
It will be recalled that Libya has one of the poorest electronic banking systems in the MENA region and Africa due to the legacy of the 42 years of the Gaddafi regime which had no interest in developing trade in the country.
For most of this time, state-owned banks dominated the Libyan banking sector, not acting more than distributors of public sector wages. Banks were not encouraged to be competitive or to offer diversified banking services in the rentier state.
After the 2011 Arab Spring revolution in Libya, the weakness of the Libyan banking sector was exposed. Libya’s reliance on cash and the lack of use of online banking services has exacerbated Libya’s current severe cash shortage. The CBL is hoping that a boost to online banking can ease the crisis and reduce the need for it to continue printing new money and pumping it into the system with all of its inflationary side effects.