The traditional financial services landscape is being disrupted by new entrants leveraging technology to deliver new and existing services in more relevant and convenient ways to consumers and businesses. The emergence of Fintech represents an opportunity for Mauritius. As a robust financial services industry, coupled with a vibrant ICT industry, Mauritius is ideally positioned to capitalize on this growing trend.
Integrating Fintech in Mauritius
Fintech provides a pathway to position Mauritius for the ‘digital economy’, fostering new business ventures, both in the financial services and technology industries and creating benefits across the country.
Mauritius already benefits from a solid financial industry with appropriate regulators such as the Bank of Mauritius and the Financial Services Commission that are supervising the banking and financial services sectors. Moreover, the country has the right infrastructure and is strategically located in the Indian Ocean at the cornerstone of Africa and Asia, with reliable connectivity in terms of transport, logistics and high bandwidth internet.
The evolving trend of FinTech cannot be ignored, if Mauritius is aiming to establish itself as an IFC. Despite it is a new concept perpetuating established financial services centers, FinTech offers solutions that may eventually create a global currency to efficient payment and its evolving trends benefits largely the customers and financial institutions. While adopting a niche strategy, tech ventures are progressively taking over small pieces of the financial industry.
From a banking customer care perspective/financial advisor to investment and money transfer, FinTech is deemed to revolutionised the financial sector in the long run. Taking into consideration at what FinTech companies has done in the last few years, possible evolving trends can be forecast in this innovative industry
With the new digital revolution that is happening in the financial services sector in Mauritius and as an avant-garde jurisdiction, the country possesses the ecosystem to assist the global ambitions
Leveraging the Financial Services Industry with Blockchain applications.
It is only a matter of time before the financial services industry shift to blockchain and network-based approaches. The blockchain technology allows financial services industry to optimise business processes by sharing information in an efficient, secure and transparent manner.
Blockchain Technology can be leveraged in the Financial Services Industry to:
- Enable money transfers/remittances,
- Store customers’ details,
- Execute trade and settlement,
- Store and manage assets,
- Enable smart contracts for an automated execution of contract terms and
- Provide Algorithmic regulation to identify suspicious customers and networks.
This technology can help financial institutions meet customer expectations by improving product offerings and increasing speed while lowering costs (financial inclusion) and helping avoid the threat of disintermediation by third parties. There are also substantial benefits that are to be gained in terms of back office operations and for improved transparency from an audit and regulatory perspective.
Blockchain unlocking myriad advantages for KYC/AML procedures
The use of a distributed ledger system, such as a blockchain, unlocks advantages by automating processes and thus reducing compliance errors. A blockchain-based registry not only remove the duplication of effort in carrying out KYC checks, but the ledger also enable encrypted updates to client details to be distributed to all institutions in near real-time. In addition, the ledger provides a historical record of all documents shared and compliance activities undertaken for each client. This record could be used to provide evidence that a financial institution has acted in accordance with the requirements placed upon it should regulators ask for clarification.
Distributed ledger simplifies auditing and record-keeping and is used by financial institutions to create a database of all the transactions, on behalf of the clients. As all the activities related to a particular client can be traced automatically, it makes the auditing processes easier. In the case of regulatory investigation regarding AML/CFT procedures, blockchain helps banks in the provision of solid transactional evidence.
Accentuating on online banking or FinTech, will bridge the distance between geographically remote locations and create new business opportunities. The Mauritius financial services sector sees global change is accelerating. It is clear that the digital revolution is under-way and the impact on banking and non-banking will simultaneously be better, faster and more accessible. Embracing and engaging in FinTech is a leap towards openness, innovation and smart investments.
The Anglo African team can assist you in unlocking the full potential of FinTech for the prosper of your business. If you have any queries or if you would like further information, please contact us on 2331636 or by e-mail at contact@infosystems.mu.
