40th Bi-Annual Meeting of the Committee of Insurance, Securities and Non-Banking Financial Authorities (CISNA) ‘Innovation a key factor to achieve financial inclusion’ |21 April 2018

Providers of financial services and products must innovate to provide financially inclusive services and products if they wish to remain relevant in the market place.

This was said by the principal secretary for finance Patrick Payet who further noted that without financial consumers being financially literate and able to make informed decisions about their finances, full financial inclusion will not be achieved.

PS Payet made these remarks while addressing delegates and guests at the opening of the plenary meeting on the last day of the three-day 40th Bi-Annual Meeting of the Committee of Insurance, Securities and Non-Banking Financial Authorities (CISNA) that Seychelles through the Financial Services Authority (FSA) has hosted for the first time this week at the Savoy Resort & Spa.

Representatives from non-banking financial institutions authorities namely capital markets, collective investment schemes, insurance companies, retirement funds from countries of the Southern African Development Community (SADC) region met yesterday for their plenary session.

Vice-President Vincent Meriton was the guest of honour at the opening ceremony of the plenary meeting.

The aim of the CISNA is to make easier the development and implementation of a harmonised regulatory framework for SADC member states to enable their market to grow and develop while reducing the potential for risks. It also aims to inform and protect consumers, mobilise capital flows and contribute to the region’s prosperity.

PS Payet said another key factor in achieving financial inclusion is financial innovation which is the development of new financial products and services.

“We must promote, in our economies, those financial innovations that are conducive to financial inclusion, those that remove the barriers to access, those that enable the provision of affordable and relevant financial products and services, and which open new possibilities to the financially underserved segments of our nations,” said PS Payet.

He went on to stress that providers of financial services and products have to understand that they must innovate to provide financially inclusive services and products if they wish to remain relevant in the market place.

“They must re-think their business plans and strategy to come out with new services, products, and delivery channels, customised to meet the demands of the whole spectrum of financial customers in our society. Government and you, as regulators, must be part of this process, playing a facilitating role, acting as catalysts,” he pointed out.

He also talked about the new financial technology ‘FinTech’ which has revolutionised the financial world. The new wave of FinTech, which ranges from e-payment systems, to open access digital data and the leverage of that data for customised insurance for example, to currency digitisation, to automated investment advice, promises within the context of financial inclusion, boundless potential, by offering to disrupt the traditional, established business models, and provide new financial products and services with greater access and speed, with improved transparency and efficiency, and at lower cost.

But he warned though that such financial innovations present a capacity problem for our regulators, especially for us in the developing world, as they do not always have the in-house expertise or resources to tackle these problems alone.

He noted that this is where regional and international cooperation is key and bodies like CISNA can provide the right platforms that not only allow access to the know-how and ideas of our peers or experts, but provide forums for further integration and cooperation.

Seychelles has through the FSA been part of the CISNA grouping and is a signatory to its multilateral memorandum of understanding and it has hosted the 40th Bi-Annual Meeting as part of its responsibility as a member country.

Hosting the meeting is also testament to the progress that Seychelles and the FSA as a jurisdiction has made in the areas covered under the CISNA umbrella.

The three-day meeting has focused on sharing knowledge and experience in core regulatory functions of insurance, securities and non-banking financial authorities and explore ways to boost cooperation and integration of regulatory regimes for the betterment of the region.

In remarks to welcome the delegates and guests at the meeting, the chairperson of the FSA, Suketu Patel, stressed that the meeting discussed and explored ways to make progress on the important objectives of the CISNA and these include among others harmonising legislations and regulatory frameworks, boosting investors’ and consumers’ information, fostering cooperation within the region’s regulatory authorities, countering financial crimes…

He reaffirmed the FSA’s commitment to play an active role in the endeavours of the committee going forward by cooperating fully with its regional regulatory counterparts.

“CISNA has made remarkable progress over the 20 years. The mechanisms under the MoUs for sharing information have been effective in enhancing regulatory capabilities especially in the face of increasing cross-border financial activities among member states,” he pointed out.

CISNA chairperson Tafadzwa Chinamo said in spite of having come a long way, the organisation still faces numerous challenges but he applauded the fact that three regional model laws part of the organisation’s strategic plan were to be tabled for approval during the plenary meeting.

“But until all member authorities through their relevant ministries begin to align their local laws to regional benchmarks, harmonisation and regional integration will remain a challenge,” he stressed. 

The chief executive of the FSA, Dr Steve Fanny, said Seychelles stands to benefit greatly from more visibility internationally by hosting such an important meeting.

“Seychelles has a good regulatory framework and the meeting was a great opportunity to confirm that,” Dr Fanny affirmed.