Providing financial services for unbanked and underbanked has been challenging, mainly due to relatively high operational cost and the difficulty of reaching the targeted group of people. Mobile money has provided bank-like facilities, to the unbanked communities through its low cost of operation and widespread agent network. Regulatory response and support is essential for this advancement where it necessitates significant changes to the current regulatory practices. This task has been found to be difficult for regulators due to their limited technical knowledge in the field and resources. This paper posits the need for collaborative regulatory development which can provide solutions for multifaceted regulatory needs. It identifies how regulators and industry could work collaboratively to develop prudent regulation. Novel practical aspects, practiced among telecommunication firms and regulators, will be used for extending economic regulatory theories.