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Oliver Wyman collaborated with the Bank of Mauritius and the Mauritius Bankers Association Limited (MBA) to formulate the Future of Banking in Mauritius vision, strategy and roadmap.
The Future of Banking report was officially presented by the Governor of the Bank of Mauritius to the Honorable Prime Minister and the Honorable Minister of Finance, Economic Planning and Development on the occasion of the Bank of Mauritius 55th Anniversary "Governors’ Meet", on September 8, 2022.

The banking industry is facing global disruptions of unprecedented scale and scope. These demand significant adaptation and change, which International Financial Centres (IFCs) must lead. In Q4 2021, a broad industry consultation was conducted with representatives of Mauritius' banking and other private sectors, public sector and civil society. The aim was to develop a baseline view of the current Mauritius banking sector and co-create a new strategic vision as well as an actionable plan for its future. 

The Mauritius banking industry has many proven strengths that have contributed to its success to date. Sitting at the crossroads of Asia and Africa, it has been channeling investments for decades, supported by one of the most business-friendly and stable economies in the region. However, the Mauritius banking sector also faces several challenges and threats. These must be addressed to ensure Mauritius maintains its positioning and growth as an attractive IFC.

In this report, we have selected five core themes to shape the future of the Mauritius banking sector:

  • Cash-lite society
  • Improved service to customers through modularised services / FinTechs
  • Enhanced offerings to address the needs of small/medium-sized enterprises (SMEs)
  • Leading digital and innovation hub

Asia

  • A specialised IFC for Asian corporates on select solutions areas
  • The alternative IFC for overseas Indian business
  • The access point for Asia corporate business into and out of Africa

Africa

  • An attractive value proposition for Africa-literate talent
  • A hub to invest in Africa
  • A specialised IFC for African corporates and an offshore centre
  • A private banking hub for affluent Africans

  • Treasury
  • Cross-border investment
  • Trade finance
  • Private banking for mass affluents

  • Solidified investment grade IFC and financial stability protection
  • Adherence to highest standards of ESG
  • Known globally for its value proposition
  • Predictable and favorable tax regime for investors & Double Tax Agreement (DTA)
  • Regulatory agility and digitisation of the financial infrastructure
  • Fully compliant with international standards
  • Thriving local capital market
  • Capability and knowledge regional hub in banking

The international vision for the future role of the Mauritius banking sector is to deliver best-in-class services to African and Asian customers, and to act as one of the main bridges connecting the rest of the world to Africa. With this objective in mind, the banking sector will focus primarily on developing differentiated and coordinated offerings in treasury, trade finance, cross-border investments and private banking for African mass affluent clients, with other innovative solutions being developed over time. In parallel, the Mauritius banking industry will increasingly leverage digitization to serve its domestic market. In this context, 12 tangible initiatives have been prioritized to deliver the future vision for the sector, combining structural changes to the market with new developments in products and services:

  • Cash payment limitation reduction
  • Financial literacy campaign
    • Cash payment limitation reduction
    • Financial literacy campaign
    • Regional Treasury Centre incentive scheme
    • Cross-bank digital trade finance platform
    • New private banking business model
    • Banking sector ESG strategy
    • Virtual assets and distributed ledger technology adoption
    • Reinforced MIFC branding, accountability and strong promotion arm
    • MIFC banking training centre
    • Centre of Excellence for banking in Africa, including ESG
    • Reinvigorated economic diplomacy
    • Clearer expatriate value proposition
    • Cash payment limitation reduction
    • Financial literacy campaign
    • Regional Treasury Centre incentive scheme
    • Cross-bank digital trade finance platform
    • New private banking business model
    • Banking sector ESG strategy
    • Virtual assets and distributed ledger technology adoption
    • Reinforced MIFC branding, accountability and strong promotion arm
    • MIFC banking training centre
    • Centre of Excellence for banking in Africa, including ESG
    • Reinvigorated economic diplomacy
    • Clearer expatriate value proposition
    • Cash payment limitation reduction
    • Financial literacy campaign
    • Regional Treasury Centre incentive scheme
    • Cross-bank digital trade finance platform
    • New private banking business model
    • Banking sector ESG strategy
    • Virtual assets and distributed ledger technology adoption
    • Reinforced MIFC branding, accountability and strong promotion arm
    • MIFC banking training centre
    • Centre of Excellence for banking in Africa, including ESG
    • Reinvigorated economic diplomacy
    • Clearer expatriate value proposition

 

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