Financial inclusion: What solutions to meet BCEAO’s regulatory requirements

By Bart Willems, Chief Executive Officer, Syrse‑OMOA Group

In an African context marked by persistent structural challenges, financial inclusion remains a fundamental issue for economic and social development. With more than 47% of the adult population still excluded from the formal financial system in the West African Economic and Monetary Union (WAEMU/UEMOA) in 2016, the progress achieved in recent years is encouraging and reflects the strong commitment of all stakeholders—foremost among them, our States.

In 2022, the financial inclusion rate reached 70.9% according to a report by the Central Bank of West African States (BCEAO), attesting to the considerable advances made.

BCEAO’s regulatory vision as a catalyst for inclusion

The BCEAO has laid the foundations for a more inclusive financial system. Various initiatives to liberalize the financial landscape have, for example, led to the adoption of Instruction No. 008‑05‑2015 on electronic money, whose objective is to boost access to financial services through a framework conducive to innovative solutions. This approach is part of the Regional Financial Inclusion Strategy (RFIS), which structures actions around key strategic pillars: regulatory strengthening, microfinance clean‑up, promotion of innovation, financial education and consumer protection, and a favorable tax framework.

Technological solutions serving inclusion

The rise of digital financial services is the main driver of regional financial inclusion. Distribution channels have expanded to 402 service points per 1,000 km² in 2022, compared with 311 the previous year. This ecosystem—98.8% of which consists of electronic money service points—facilitates access to financial services for African populations.

Digitalization has overcome constraints limiting access to traditional banking services. The usage rate of electronic money services reached 56.6% in 2022, demonstrating a profound shift in financial service consumption habits.

Electronic money issuers, for example, have diversified the financial landscape: their number increased by six in 2022, reaching 46 operators by year‑end (up from 40 in 2021). This competition stimulates innovation and quality while reducing costs.

Toward an interoperable financial infrastructure

Interoperability of financial services is a major challenge for maximizing the impact of digitalization. Aware of this issue, the BCEAO initiated a project to make digital financial services interoperable, aiming to facilitate transactions across platforms regardless of the account type used.

Innovative initiatives—such as the regional instant payment system launched by GIM‑UEMOA in collaboration with banks and electronic money issuers—demonstrate the feasibility of this approach. These projects not only streamline financial exchanges but also reduce transaction costs for populations.

The digitalization of public payments is also a powerful lever for inclusion. By supporting States in modernizing the processing of their financial flows, particularly through connecting public treasuries to the regional card‑payment platform, the BCEAO contributes to integrating a growing number of citizens into the formal financial ecosystem.

Tailored solutions for underserved populations

Innovation addresses the needs of populations excluded from the banking system (women, youth, smallholder farmers).

A 2022 study by Dalberg on the needs of underserved populations reveals a preference for mobile phones in payment operations (73% of micro‑entrepreneurs, 57% of agricultural producers) and for saving via electronic wallets. These insights make it possible to design appropriately tailored financial services.

Agency Banking solutions are expanding remarkably through networks of partner merchants offering proximity financial services. Deployed in more than 3,000 localities across the UEMOA zone, over half in rural areas, these service points provide an effective alternative to traditional banking networks.

The vital challenge of consumer protection

With the emergence of new players and business models, consumer protection has become an absolute priority. Financial Services Quality Observatories, established in several Union countries, help strengthen public trust in the financial system.

In an environment where 38% of women, 35% of youth, and 34% of agricultural producers—historically among the most underserved by traditional financial services—express reluctance to borrow according to recent BCEAO studies, access to financing remains a major challenge for micro and small enterprises, including in urban areas.

In response, financial education plays a decisive role across all economic sectors. Training and awareness initiatives deployed at regional and national levels strengthen the capacity of both rural and urban populations to effectively use available financial services.

A global and collaborative approach

The experience of African financial stakeholders shows that a comprehensive, collaborative approach is essential to meeting financial inclusion challenges. Fintechs that have operated for decades across the entire payments value chain recognize the importance of a robust, secure infrastructure to support this transformation.

Sector initiatives, such as PCI DSS certification of transaction‑processing platforms, deployment of AI‑based fraud detection systems, and implementation of secure digital identification mechanisms, help reinforce trust in the financial ecosystem.

Within operators such as the Syrse‑OMOA Group, expertise in installing and maintaining ATMs, card personalization, and digitalization of financial services enables the design of inclusive solutions adapted to African realities.

Outlook and remaining challenges

Despite progress, challenges remain. Unique identification of financial service users is a key issue for strengthening transaction security and accurately measuring financial inclusion.

Personal data protection and cybersecurity are growing concerns in an increasingly digital environment; balanced regulation remains essential.

Improving connectivity and access to energy in rural areas is a prerequisite for deploying digital financial infrastructures. Solutions such as solar‑powered ATMs deserve wider adoption.

Financial inclusion in the UEMOA continues to advance, driven by a favorable regulatory framework and technological innovation. Collaboration among regulators, traditional financial institutions, and new entrants remains indispensable to achieving universal access to quality financial services.