Financial Technology better known as 'fintech' is the new technology and innovation that aims to compete with traditional financial methods in the delivery of financial services. The application of fintech covers a wide range of sub-industries from crowdfunding, lending, payments, data collection, and investment management to digital currency.
Fintech puts technology at the heart of financial services offering a change in the way in which companies interact with their customers. In addition, this proliferation of fintech makes financial markets and systems more efficient.
A real opportunity for Mauritius
The development of fintech represents a real opportunity for the financial sector of Mauritius and as an avant-garde jurisdiction, the Prime Minister in the last budget speech 2017/2018 highlighted that “Mauritius must also harness the benefits of the fintech revolution the more so that there is good potential for making of Mauritius a Fintech hub for Africa”.
The Government has also set up the Economic Development Board (EDB) which includes the Board of Investment, the Financial Services Promotion Agency, Enterprise Mauritius and the Mauritius Africa Fund. One of the main responsibility of the EDB is to drive the Fintech revolution in Mauritius and position the country as a hub for Africa.
In addition, in order to position Mauritius as a regional hub of sound repute in the field of Fintech Regulations, the Financial Services Commission has put in place the Fintech and Innovation-driven Financial Services Regulatory Committee which will assist in the elaboration of the regulatory framework for the development of the Fintech industry in Mauritius. The Committee was launched on the 9th February 2018 and discussions were centred on the following aspects:
- Building an open and transparent regulatory regime for Fintech in Mauritius which encourages innovation;
- Exchanging information with other recognised regulatory authorities to contain any kind of illegitimate activities;
- Keeping cognisance of the best technological innovations and ensuring that Mauritius is apace with the latest technological advancements in the Fintech ecosystem;
- Regulating blockchain-related activities that will take into account the use of latest technology so as to prevent hacking and other kind of frauds;
- Recognising the potential benefits of blockchain technology on the economy and society, and encouraging its development;
- Considering incentives to attract Fintech activities to Mauritius; and
- Reflecting on the possibility of establishing a sovereign fund in Mauritius to provide seed capital for the development of Fintech activities in the region.
Even if the country has not yet finalised the legal framework of the Fintech Industry, the Regulatory Sandbox Licence (RSL) offers the possibility to an investor to conduct a business activity for which there exists no legal framework, or no adequate provisions under existing legislation in Mauritius. The RSL will be issued by the EDB to eligible companies willing to invest in innovative projects according to an agreed set of terms and conditions for a defined period.
Mauritius has already a well-regulated financial sector with regulators like the Bank of Mauritius and the Financial Services Commission which are supervising the banks and the financial services sector, and the country has the necessary ecosystem to assist fintech companies.
The revolution of Fintech is already on the move in Mauritius!
Obtaining a RSL with MITCO
MITCO provides assistance to clients who wish to obtain a RSL. For more information, we invite you to contact your relationship manager at MITCO or write to the business development team on firstname.lastname@example.org