Question

Financial technology, also known as FinTech is an industry composed of companies that use new technology and innovation with available resources in order to compete in the marketplace of traditional financial institutions and intermediaries in the delivery of financial services. The use of mobile apps is embedded in the average Mauritian’s everyday life while the country already provides services such digital insurance, mobile banking amongst others. Several enterprises, particularly those aiming towards Africa, are already using Mauritius as a viable Fintech platform. The stable business climate and well-established corporate governance culture in Mauritius, favorable time zone, excellent connectivity and highly-educated labour, mitigates the high-risk profile of certain African countries.

QUESTIONS

Considering the Mauritian context, list and explain the benefits of Fintech

(Answer should be between 500-1000 words)

Answer 1

Fintech companies provide large scale technology backend support, easy customer grievance redressal mechanism and state of art cybersecurity infrastructure with strong compliance to corporate governance standards and thus ensures traceability, transparency, accessibility and availability.

Fintech companies like Ant Financial, Adyen and Zerodha have been topmost companies with best in class services and customer awareness.

They have offered one stop solutions for investors across all asset classes and geographical locations and provided broking and consultancy services to meet investment appetite and promote investment awareness to youth.

Their low cost pricing model and Differentiation across multiple products make it investment friendly and helps manage accounts seamlessly by investing in wide array of products.

Some of best advantages are listed below:

1. Real time data collection
2. Internet of Things Integrated solutions
3. Artificial intelligence based customer support 24 by 7
4. Blockchain methodology for improved auditing and fraudulent proof
5. Quick decision making
6. Easy payment gateway and structure
7. Strong interaction using data visualizers
8. Inter bank linkage
9. Cross border remittance allowances
10. One stop solutions to all banking needs.

However any technology also brings disadvantages like high initial cost due to innovation and bureaucracy in getting licenses which adds cost of compliance and unsustainable in long run.

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