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.

Question:

The Mauritius Central Automated Switch (MauCAS) is a novel state-of-the art digital hub fully owned and operated by the Bank of Mauritius for routing payments among operators on a 24x7 basis. Do you believe MauCAS will be a success or failure in Mauritius? Justify your answer.

Answer should be in 1000 words

Answer 1

****Please please please LIKE THIS ANSWER, so that I can get a small benefit, Please****

The Mauritius Central Automated Switch (MauCAS) is a novel state-of-the art digital hub fully owned and operated by the Bank of Mauritius for routing payments among operators on a 24x7 basis. Do you believe MauCAS will be a success or failure in Mauritius? Justify your answer.

On Wednesday, 14 August 2019 the Mauritius Central Automated Switch (MauCAS) was implemented. The Bank of Mauritius is a modern state-of - the-art digital platform for 24x7 routing of payments between companies completely owned and run. MauCAS operates on common standards, and allows banks and non-bank operating entities to offer wallet, cell phone and other innovative payment and added value services. MauCAS simplifies the existing payments for retail through routing cards and telephone settlement transfers on the Mauritius Bank as the central payment transfer. This increases network performance while maintaining the interoperability of different payment networks. The Instant Payments Service allows consumers to switch between two accounts within seconds at any two institutions. The new program also permits operators and consumers, thus retaining the account existing in another bank, to use a payment service offered by each operator (banking or Non-Financial). Mauls also enables ATMs and other added-value resources to be provided by them. The new central automated switch is expected to require lower transaction and operational cost, reducing payment costs-particularly on the domestic market. It is a very good initiative from Mauritius to enhance the ease of financial transactions as well as to enable financial participants(banks and non bank operators) to provide innovative   channels for transformative payments and value additions in services. This initiative is expected to be a success as the PM of Mauritius has announced his plans on making the country a cashless soceity and also to introduce a "Central Bank Digital Currency" Govt also indcates that MauCAS helps in a 24/7 payment system, changing the dynamics of currency circultion aiding to less counterfeit currency. These factors help us arrive at a hope that MauCAS will be a success . Countries like Mauritius can benefit from the digital revolution through employing its large number of educated population for its financial operations. Fintech helps smaller countries like Mauritius  to improve their economy through digital platforms than through traditional industrial movements or setting up new production industries for physical goods. As Mauritius is part of African continent which is known to have history of Money Laundering and many other financial frauds, gaining the trust of investors,companies and all involved in the business is a challenge. There can be initial hick ups also until businesses get stabilized and settled with trusted transactions and flawless procedures in preventing/stopping any malpractices.

MauCAS will be a success as it has taken giant strides of providing a round the clock services, helping consumers to link up with service providers.  MauCAS is enjoying Government support and commitment. MauCAS is the first major and widespread Fintech Institution with this level of capacity. Fintech Institutions or companies are financial services companies that has integrated advanced technologies into its system in order to provide financial services to its customers. Mauritius is an African Country that is currently growing its financial services sector through the proliferation of Fintechs, although Mauritius has been in the forefront of fintech startups in Africa, the fintech Companies still have certain challenges such as poor Technological infrastructures, inadequate finance etc. JUMIAONE is a local fintech Institution which provides financial services,payment services using mobile applications. MauCAS is a major player in the Fintech industry in Mauritius which provides round the clock and widespread services across the country,it has enjoyed Government support and commitment which is one the key factors that will lead to to its Success in the fintech industry of Mauritius. MAUCAS will be successful in the market as it is in line with times - it is convenient for everyone regardless of age , gender ,income group - with increasing online usage , growing literacy and computer population ,it will be successful . There is a local company which provides services on insurance services. They give complete information on the products available in the market , their comparison , which product is providing most value for money ,online consulting on choosing the best product , insurance buying online. Nations such as Mauritius will benefit from the digital revolution by employing their many skilled people for their financial activities. Fintech helps smaller countries such as Mauritius develop their economy through digital platforms, or create new manufacturing industries for physical goods. Since Mauritius is part of the African continent that has a history of money laundering and many other financial frauds, it is a challenge to gain the confidence of investors, companies and everyone concerned. Additional progress can not take place before businesses stabilize and resolve trustworthy transactions and a faulty procedure.

Conclusion - MauCAS should be successful, as it has taken tremendous strides to offer clock-round service and help customers connect and service providers. MauCAS is funded and invested by the state. With this amount of capability, MauCAS is one of the biggest and biggest Fintech company. Fintech Institutions or businesses are organizations that offer financial services to clients by incorporating new technology into their processes. Mauritius is the African country which, through proliferation of Fintech, is currently growing in its financial services market, while Mauritius has become a leading Fintech start-up in Africa. The concept of improving financial transfers and allowing financial players (banks and non-bank operators) to have new networks of transformational payments and value added services is a very positive initiative from Mauritius. The Mauritian Minister is now preparing to transform the country into a cashless business and launch a "Central Bank Digital Currency" Govt now points to MauCAS helping to shift the nature of the trade of currencies into lower counterfeit money through a 24/7 paying framework. This project is anticipated to be a success story. Such considerations allow one to expect MauCAS to thrive.

****Please please please LIKE THIS ANSWER, so that I can get a small benefit, Please****