By Ncaba Ntshakala
THE Governor of the Central Bank of Eswatini, Dr Phil Mnisi, recently participated in the second edition of the Dubai FinTech Summit (DFS), hosted by the Dubai International Financial Centre (DIFC).
The DFS, is a prestigious two-day event, which convenes policymakers, innovators, and influencers from around the world.
It offers a platform to exchange insights and stay abreast of the latest developments in fintech. The event was hosted by His Excellency Essa Kazim, the Governor of DIFC, who said that the summit highlights Dubai’s status as a frontrunner in fintech innovation.
According to a statement shared by the Central Bank of Eswatini, Dr Mnisi participated in a riveting panel discussion on the role of central banks in shaping the future economy.
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This was said to highlight the Central Bank’s dedication to leveraging innovation for transformative impact.
The Governor, as a panellist, was joined by counterparts from Armenia and Ecuador. During the discussions, the panel delved into the evolving landscape of central banking amid rapid technological advancements.
The panellists reflected on the traditional role of central banks and unanimously emphasised the imperative for adaptation and innovation.
Dr Mnisi further expressed the necessity for central banks to proactively engage with emerging technologies, advocating for agile regulatory approaches to mitigate associated risks effectively.
On the global stage, the Central Bank of Eswatini Governor showcased the bank’s progressive initiatives in embracing FinTech innovation.
He elaborated on key initiatives such as the revision of the National Payments Systems Act, the national payment switch project, the Regulatory Sandbox, and the ongoing research and development of Central Bank Digital Currency (CBDC).
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Furthermore, Dr Mnisi highlighted the transformative impact of innovation on Eswatini’s financial inclusion journey, where he emphasized the pivotal role of technology in enhancing the accessibility and affordability of financial services across the nation.
According to Investopedia, Financial technology (better known as FinTech) is used to describe new technology that seeks to improve and automate the delivery and use of financial services.
At its core, fintech is utilized to help companies, business owners, and consumers better manage their financial operations, processes, and lives.
It is composed of specialised software and algorithms that are used on computers and smartphones. FinTech, the word, is a shortened combination of ‘financial technology’.
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When fintech emerged in the 21st century, the term was initially applied to the technology employed at the backend systems of established financial institutions, such as banks. From 2018 or so to 2022, there was a shift to consumer-oriented services.
Fintech now includes different sectors and industries such as education, retail banking, fundraising and nonprofit, and investment management, to name a few.
FinTech also includes the development and use of cryptocurrencies, such as Bitcoin.
While that segment of fintech may see the most headlines, the big money still lies in the traditional global banking industry and its multitrillion-dollar market capitalisation.
