Artificial intelligence meets regulatory compliance: AFI and Vodacom hold knowledge exchange session

On 14 and 15 May, AFI and Vodacom held a unique capacity building event which saw them alternate the roles of trainer.

On 14 May, AFI members from Central Bank of Egypt and Reserve Bank of Zimbabwe facilitated a training session for Vodacom M-PESA staff from six different operating markets. The session briefed them on how to prepare for on-site regulatory examinations and ultimately, ensure that consumers have access to safe and efficient mobile financial services. The session covered key information requirements, on-site examination activities, and how to respond to questions from regulators.

“As a major player in digital financial services, we have to deal with quite a number of onsite inspections in our markets,” said Brian Muthiora, Vodacom’s Executive Head, Mobile Financial Policy & Regulation. “This session will help us understand what inspectors are looking for, and help us prepare in advance.”

On the second day, Vodacom assumed the role of trainer, briefing AFI members on the emerging topic of artificial intelligence (AI) for regulatory compliance. The session introduced key concepts like machine learning and generative AI, and presented use cases for risk management and regulatory processes, using examples from M-PESA’s AI application. The presentations by MPESA highlighted that the use of AI by digital financial services providers can help increase customer safety and trust by reducing fraud incidences. It can also greatly increase efficiency and regulatory compliance in institutional AML reporting obligations.

“The fact that AFI and our partner Vodacom are taking turns to lead the training makes it unique,” said Madhurantika Moulick, AFI’s Head of Capacity Building. “There is plenty of scope for mutual learning between public and private sector entities, as well as an appetite to learn from each other. Events like this facilitate the exchange of knowledge across sectors, allowing us to harness each other’s insight and recommendations.”

You can learn more about AFI Capacity Building here.