THE Securities and Exchange Commission (SEC) will next month hold an alternative financing Masterclass aimed at exploring Zambia’s readiness to embrace the growing global finance industry.
SEC said the Masterclass will provide insights on the alternative finance sources for Zambia.
In a statement, SEC said the alternative financial channels and instruments that emerged outside of the traditional financial system such as regulated banks and capital markets were creating a global shift in how finance was provisioned.
SEC had received a number of enquiries from would-be promoters of alternative financial initiatives and showing a growing need to underpin those shifts with fundamental knowledge.
The class would seek the socio-economic impact of alternative finance in job creation, revenue generation and community engagement at local, regional and national levels.
It would also tackle alternative finance developments which were a threat or an opportunity for incumbent financial institutions.
“”There is an increasing proliferation of alternative channels that include online ‘marketplaces’ such as equity-based and reward-based crowd funding, peer-to-peer (P2P) consumer business lending, and third-party payment platforms.
“Empirical evidence has confirmed alternative finance to be a fast growing area of the financial services sector poised to be providing answers in meeting the funding gaps,” said SEC.
The funding gaps that are fast growing globally included those for small and medium entities who ordinarily had difficulties accessing funding from traditional financial institutions like banks and stock exchanges.