Background

The rapid growth of financial technology (fintech) across Africa is transforming the financial sector, offering innovative alternatives to traditional financial services. Fintech platforms are enhancing financial inclusion, lowering transaction costs, and expanding access to credit. These developments have the potential to reshape key macroeconomic relationships, including the effectiveness and transmission mechanisms of monetary policy. As fintech adoption accelerates, it becomes increasingly important for central banks to understand its implications for monetary policy formulation and implementation.

For instance, increased use of digital currencies, mobile payments, and peer-to-peer lending may influence money demand, velocity, and the operational channels of monetary policy. Despite these dynamics, the relationship between fintech and monetary policy remains underexplored and complex. It is against this background that MEFMI will conduct a workshop on Monetary Policy in the Age of Fintech. This workshop seeks to bridge this gap by equipping policymakers with the knowledge and analytical tools needed to assess and respond to the evolving interplay between fintech and monetary policy in Africa.

Objectives

The primary objective of this course is to provide participants with a comprehensive understanding of the interaction between fintech and monetary policy. Participants will explore how fintech innovations affect monetary aggregates, policy transmission mechanisms, and central bank operations. The course will also provide insights into appropriate policy and regulatory responses to ensure financial stability while fostering innovation.

Content

The course will cover the following core topics:

• Introduction to Fintech and Monetary Policy.

  • Overview of fintech developments in Africa.

  • Review of monetary policy frameworks.

  • Identifying key points of interaction between fintech and monetary policy.

• The Impact of Fintech on Monetary Policy Operations

  • Effects of fintech on money demand, supply, and velocity.

  • Fintech and the monetary policy transmission channels.

  • Case studies: Country experiences in Africa.

• Quantitative Assessment and Econometric Modelling

  • Modelling the fintech–monetary policy nexus.

  • Introduction to Vector Autoregression (VAR) and Generalized Method of Moments (GMM);

  • Practical exercises with macro-fintech datasets.

• Policy Implications and Regulatory Frameworks

  • Designing policy responses to fintech-driven changes.

  • Principles for effective fintech regulation; and

  • Aligning innovation with monetary stability and financial integrity.

Target Group

This course targets mid- to senior-level officials from central banks and ministries of finance who are involved in monetary policy analysis, formulation and implementation.