- Dr the Honourable Kaviraj Sharma Sukon, Minister of Tertiary Education, Science and Research
- Dr Louis Jean Claude Autrey, Chancellor, University of Mauritius
- Professor Sanjeev Kumar Sobhee, Vice Chancellor, University of Mauritius
- Professor Dr Jay Kandampully, the International Research Symposium in Service Management Chair
- Professor Dr Boopen Seetanah, Dean, Faculty of Law and Management, University of Mauritius
- Professor Roubina Jawaheer, University of Mauritius
- Associate Professor Viraiyan Teeroovengadum, University of Mauritius
- Representatives of universities
- Captains of industry
- Distinguished guests
- Ladies and gentlemen
- All protocol observed,
Good morning
It is a great privilege for me to be here on the occasion of the International Research Symposium in Service Management. At the outset, I would like to thank the University of Mauritius for organising this event at a time when disruptive and innovative technologies are transforming the delivery of services in many industries, including currencies, banking and finance. As an International Financial Centre of repute, it is critical for us to fully understand the immense opportunities and also the risks for the banking and financial services sector. It has huge potential to enhance efficiency, increase speed, generate cost savings, create new jobs, foster inclusion and agility in our daily operations. New technologies can also become a springboard to identify new areas of growth for our IFC in its pursuit of diversification and value addition. However, we have to manage the risks associated with these disruptive technologies.
I shall focus on how digital technology is transforming the currency, banking and finance landscape and how policy makers should adapt to remain relevant by seizing opportunities while mitigating risks.
Ladies and gentlemen,
The traditional financial system is being disrupted. Not so long ago, cash was the most convenient form for payment. Now, the digital revolution is transforming currencies, banking and finance with digital payments, cryptocurrencies, private monies and Central Bank Digital Currencies (CBDCs) becoming important components in the global financial mainstream. The rapid evolution of financial technologies and shifting consumer behaviors are driving discussions on whether these innovations will completely replace traditional fiat currencies or coexist in a hybrid system. There are also geopolitical shifts at work in this technological transformation.
Cashless transactions are growing. The average number of digital payments and cashless transactions is rising with low and middle-income economies experiencing a significant increase.
Global non-cash transactions are projected to grow at an annual rate of over 10 % in 2025, with an expected compound annual growth rate of 11.4 % through 2028. Global payments revenue is expected to surpass $3 trillion by 2028.
Instant payments are expected to increase to over 20 % of global transactions by 2028.
Digital wallets are becoming essential for transacting digital currencies. In 2025, digital wallets are expected to account for over 50 % of e commerce transactions.
The number of mobile wallets in use globally is projected to grow from 2.7 billion to 4.8 billion in 2025, representing over half the world’s population.
McKinsey estimates that across the global banking sector, generative AI could add between $200 billion and $340 billion in value annually, or 2.8 to 4.7 percent of total industry revenues, largely through increased productivity
These trends highlight the growing preference for digital transactions over physical cash, driven by mobile banking, e-commerce, payment cards, contactless payments, applications on smart phones and fintech innovations. These digital payments are fast emerging as reliable and trusted alternatives to cash.
In addition, the emergence of FinTech has allowed start-ups, BigTechs and neobanks to enter the financial services sector as new players. For instance, FinTech start-ups are active in the key segments of financial services such as payments and remittances, lending, trading and capital markets, insurance, crowdfunding, wealth management and digital banking
In Mauritius, banks have invested heavily in the provision of internet banking/ mobile banking services which are available round the clock. Banking services have thus become more accessible and convenient. Further, payments applications have unleashed a new model by enabling interbank transactions with speed at the click of a button.
Payment-centric models focusing on payments through digital platforms are now gaining traction. In Mauritius, the National Payment Systems Act already makes provisions for the authorisation of operators by the central bank. The Bank has so far authorised 4 operators (PSP) while the Financial Services Commission has issued 42 Payment Intermediary Services (PIS) licences for global payment systems.
The expansion in digital payments in Mauritius is striking. In February 2020, before the onset of the pandemic, mobile payments and internet banking transactions amounted to Rs1.8 billion and Rs301 billion respectively. In April 2025, they surged to Rs25.7 billion and Rs647 billion respectively. As our population becomes digital savvy, this upward trend is likely to continue. Concurrently, the Bank of Mauritius initiated a series of initiatives to boost digital payments. It deployed the National Payment Switch, called MauCAS, a digital hub to route payments amongst operators in 2019, followed by the MauCAS QR Code in 2021. These means of payment are steadily being adopted by the population. The volume of transactions has doubled from 0.95 million in May 2024 to almost 2 million May 2025. The Bank intends to roll out an information campaign shortly to explain the benefits of using digital payments to our population and to scale up their use.
Ladies and gentlemen,
Full-fledged digital banks are now a reality in many countries. In Mauritius, the law allows the Bank to issue digital bank licenses. The appropriate framework for the operation of digital banks is in place and a few existing foreign banks have enquired about the possibility of setting up wholly digital banks in Mauritius. I am certain that in the near future, the population will become accustomed to digital banks. Conventional banks will have to adapt or risk losing market share. This trend may enhance the level of competitiveness in the banking sector, pushing the Mauritius International Financial Centre to innovate to attract such institutions to Mauritius to strengthen its position as a leading IFC in the region.
In the pursuit of our digital agenda, Artificial Intelligence or AI has become a game changer due to its limitless capabilities. It has now taken centrestage in different segments of the value chain in finance, currency and banking. AI is revolutionizing banking by offering solutions that improve efficiency, security, and customer satisfaction. As banks work to stay competitive, AI has become a crucial tool. It is transforming everything from operations to customer interactions.
There are many use cases and applications of generative AI. From intelligent virtual assistants to financial report generation and tax automation, from automated wealth management with AI to fraud detection and prevention and identification of risky customers, from strengthening cybersecurity to better analysis of market data, from risk management and compliance to automated document processing, to loan eligibility and creditworthiness and from algorithmic trading to enhanced financial and economic forecasting to marketing and customer engagement. AI automates repetitive tasks, improving operational efficiency and accuracy by handling time-consuming processes.
We have AI note takers for summarizing the contents of internal meetings and identifying and creating follow-up tasks automatically. These summaries and tasks can be shared instantly across teams or integrated into workflow systems, ensuring that every action item is tracked and nothing gets overlooked.
Such AI developments present tremendous opportunities for the banking and financial sector in Mauritius, and we must embrace them strategically and intelligently. Although AI may replace some entry-level jobs, it will help in countering the workforce shortages from our declining and ageing population and brain-drain through labour migration. AI can fill critical gaps, ensuring businesses remain operational and competitive.
AI is not always about replacing humans. It can also enhance their capabilities through the adoption of a ‘human-in-the-loop’ approach to innovation. It will free up our workforce to concentrate on higher-value, creative, and strategic roles. By focusing on the upskilling and re-skilling of our workforce, we can use AI to boost productivity across financial services, making our economy more efficient and competitive.
Most importantly, AI will create new and high-quality job opportunities for our youth. Rather than replace human workers, generative AI will create a new need for skilled workers – professionals with the ability to manage and get the best out of generative AI. In a recent article, the New York times mentions 22 such new jobs that generative AI is creating. From prompt engineers to generative design specialists, from input and output managers to content reviewer and auditor, from AI trainer to maintenance engineer, from security specialists to instructors and educators, from ethics officer to compliance manager, from personality designer to solution developer, amongst others.
However, AI must be implemented with strong guardrails to ensure consumer protection and mitigate risks. We need regulations and strong governance to protect against risks including data privacy and breach of sensitive information. A robust legal framework, as developed through the National AI Strategy, combined with public awareness, is key to ensuring that AI is used ethically and responsibly.
In this context, the Bank of Mauritius has already embarked on its AI transformation journey. The Bank is using AI on a pilot basis in areas like document processing and information gathering to enhance productivity across departments. The application of AI and Machine Learning (ML) tools in the field of regression analysis and forecasting on an experimental basis is gathering pace as well. The extension of AI and ML in data analytics will be intensified gradually to exploit the immense potential they offer.
The AI setup at the Bank of Mauritius supports strict governance and robust security standards. The AI is securely deployed in the Bank’s private cloud. This approach ensures data privacy and compliance by preventing sensitive information from leaving the controlled environment.
At the level of commercial banks, some are actively having recourse to AI to streamline operations, improve service delivery, enhance efficiency and reduce costs. One bank has an AI powered humanoid as a digital personal assistant. Others are using AI for fraud detection and prevention and for screening customers. AI-powered fraud detection systems are becoming essential in payment security, identifying fraudulent transactions in real time and reducing cyberthreats. Blockchain payments could potentially reduce fraud by 40 %, improving transparency and security.
Another pivotal evolution is Open Finance, a paradigm shift that extends the principles of Open Banking beyond payments and account data to encompass a broader spectrum of financial products and services, including investments, insurance, and pensions. Open Finance will foster greater competition, drive innovation in financial solutions, and empower consumers with enhanced control over their financial data. This necessitates robust data security protocols, clear consent mechanisms, and a regulatory framework that balances innovation with the imperative of consumer protection and financial stability, ensuring that data portability does not inadvertently create new vulnerabilities or exacerbate existing ones.
Ladies and gentlemen,
Some argue that the traditional fiat currency faces several challenges such as volatility, security issues and inflation. They contend that at times of inflation, excessive money printing can lead to erosion of trust in central bank monetary authorities. Additionally, the prevalence of cash could facilitate informal and illicit transactions, undermining tax compliance and economic transparency. The environment has, therefore, been conducive to the rise of alternative forms of currency. These include digital currencies like Bitcoin, Ethereum and stable coins which are backed by assets.
For instance, by offering a digital alternative to volatile local currencies, stablecoins provide individuals and corporates with direct access to USD-backed assets, bypassing traditional banking systems. This is particularly valuable in regions with capital controls or limited access to foreign currencies.
The relationship between banks and cryptocurrencies is transforming how the financial industry operates. As fintech continues to change banking, stablecoins have emerged as a key innovation, bridging the gap between traditional finance and digital assets.
Even the architecture of Sovereign Finance is being tested with the US establishing a strategic Bitcoin reserve. It is a reserve asset, funded by the United States. Separately, a digital asset stockpile for non-bitcoin assets has also been created by the US.
Cryptocurrencies offer decentralized, borderless financial transactions, reducing reliance on intermediaries. These crypto assets have paved the way for the tokenisation of assets. It allows the issuing, recording and exchange of financial assets in the form of digital tokens on Distributed Ledger Technology such as blockchain. Tokenization is already transforming financial transactions worldwide through fractional ownership, digital asset custody, borderless transactions and enhanced transparency. Market participants and the public will be able to benefit from greater simplicity, effectiveness and speed while also lowering transaction costs of financial transactions.
As a leading financial hub in Africa, Mauritius should leverage AI and blockchain technology for unlocking new avenues for investment and economic growth. We have an enabling legal framework with the Virtual Asset and Initial Token Offerings Services (VAITOS) Act in February 2022. Mauritius has taken steps towards Fintech and digital asset regulation for virtual asset service providers (VASPs). I am informed that the Financial Services Commission issued a VASP licence this week. However, our successful positioning as a jurisdiction of choice for virtual assets hinges on a strong network of correspondent banks to provide the right banking platform for such activities. The Bank is already in discussion with several correspondent banks to provide them with the required assurance regarding substance to this activity and adherence to strict due diligence norms.
Government has launched a National AI Strategy and a National Fintech Strategy to build an innovation-led ecosystem that will not only enhance productivity but also attract international business and talent. At the level of the Bank, we have a set up a National Fintech Committee jointly with the Ministry of Financial Services and Economic Planning, comprising stakeholders from different relevant sectors to accelerate the development of an AI and Fintech ecosystem in Mauritius.
The execution of the roadmap for the Future of Baking in Mauritius is also progressing, supported by the five taskforces that the Bank has set up in March 2025, including one on digital innovation and products and services in banking and finance.
Ladies and gentlemen,
Let me now touch upon CBDC. Work is ongoing on the introduction of a retail CBDC. Progress has been made with the launch of the digital Rupee as a retail CBDC on a pilot basis in 2024. While the Bank is still studying the best approach for the introduction of a retail CBDC and ensure it will not compete with the well-established IPS for domestic transactions, it has also joined the mBridge Project as an Observing Member in collaboration with the BIS Innovation Hub and the People’s Bank of China to explore the possibility of developing a wholesale CBDC for cross-border payment and settlement to encourage cross border trade.
CBDCs offer several benefits over traditional cash and cryptocurrencies, including increased payment efficiency, greater financial inclusion, enhanced security and regulatory compliance. However, there are concerns over data privacy, surveillance and disruptions to traditional banking that must be addressed.
The introduction of the digital Rupee will require a careful assessment of the potential implications relating to transmission of monetary policy, financial stability, data privacy, cybersecurity and supervision among others. The mandate of the Bank is to maintain price stability and financial stability. A CBDC could alter money velocity and demand, impacting inflation control. The Bank is closely monitoring developments in this ecosystem and may need to refine its monetary tools, including interest rate policies and liquidity management, to maintain price stability in a cash-lite economy.
Ladies and gentlemen,
The Bank of Mauritius has established its Innovation Hub last year in partnership with 7 other central banks from our continent to facilitate the development of innovative solutions for the financial sector on our continent. A partnership between academia and central banks will be mutually beneficial. We operate the infrastructure and you have the research acumen. You can combine the theoretical part with the practical learning from our side.
Ladies and gentlemen,
The Bank is proud to join other central banks in promoting the adoption of innovative solutions. However, this must go hand in hand with modernising the processes and capacity building. For instance, Regtech and Suptech are innovative technologies that can be deployed to improve financial regulatory compliance and supervision.
Technology can streamline this process by giving supervisors access to both structured and unstructured data, with better quality and granularity than ever before. It can also give them effective means to extract, query and analyse data.
While commendable, the digital revolution has also increased the cyber landscape and introduced new vulnerabilities. It is thus important to identify and mitigate relevant risks. The Bank fully acknowledges these challenges and ensures that its regulatory framework remains up to date. It is a requirement for banks to carry out a thorough risk assessment before introducing new products or processes.
As supervisors, our focus must extend to the entire ecosystem of service providers, ensuring that critical functions adhere to prudential standards and consumer protection principles. The operational resilience of banks becomes paramount in this interconnected digital landscape. Our supervisory frameworks have evolved from a reactive, compliance-centric approach to a proactive, risk-based methodology.
Ladies and gentlemen,
Disruptive technologies represent both opportunities and risks to the banking and financial services sector. Money and finance are on the verge of dramatic transformations that will reshape their roles in the lives of ordinary people and of corporates, institutions and State actors.
Innovative technology also has the power to transform the provision of banking and financial services, drive the creation of new business models, applications, processes, and products, as well as lead to consumer gains
We have no choice but to prepare for a world where traditional and emerging systems will co-exist.
We must see these shifts as strategic, not just trends, but part of future-proofing activities and operations. Stakeholders should take action to diversify their payment options, stay informed about evolving regulations, strengthen payment security with blockchain and AI and evaluate new payment models with customer trust and convenience in mind.
We should leverage the tremendous opportunities of disruptive technologies, AI, blockchain and fintech while having the necessary safeguards to protect consumers and mitigate risks
With these words, I thank you for your attention.
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