Browsing by Author "Mahlet Tsegaye"

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    Digital Financial Services and Operational Risks in Ethiopia: Implications for the Necessary Regulatory Frameworks
    (A.A.U, 2024-05-06) Mahlet Tsegaye; Abebe Yitayew (Phd)
    Research aims: This research aims understanding the nature of operational risks as well as review of existing regulatory frameworks. Design/Methodology/Approach: By using qualitative research methods, face to face as well as virtual interviews with fintech representatives (CEOs, risk management experts, legal personnel), and bank CTO (chief technical officers) the task was able to secure important information. The data was thematically coded and validated with the above data sources. Research findings: Analysis revealed: (1) even officers at the respective organizations do not give many emphases to operational risks compared to the others, (2) there are new and innovative ways and approaches that fraudsters use to convince novice digital financial service users, (3) existing regulatory frameworks are not up to date, not complete enough to deal with such sophisticated approaches. Research Recommendation: the researcher recommends the regulatory body to begin collaborating closely with the providers of digital financial services in order to establish regulations, develop close monitoring protocols, and develop a strategy for continuous improvement in closing the gaps and creating a suitable environment for the digital financial industry.