The Governor of the Central Bank of Seychelles Caroline Abel addressed the Businesses community in Seychelles on the ambitious move by central bank to improve the accessibility of loans and digitisation a move which will see the country’s economy growing towards meeting some of its macro-economic objectives by 2023.
The Governor address the media in a press conference that notwithstanding the fact that a few progresses have been seen within financial institutions, the Central Bank of Seychelles (CBS) is not gratified.
Abel pointed out that the central bank is pushing for talks with the financial institutes so as to grow the economy and to counter uncertainty within island country’s economy.
“We will have another round of talks with the financial institutions to make them realize that at the moment we need to align everything that reflects our economic reality.
“If we do not align them, we might be killing certain aspects of the economy in a faster manner as compared to how it would have happened. The banks might be putting themselves in difficulties if they do not align themselves properly with the current business model that they have,” said Abel.
“Financial institutions are not sure if this sector will do well and provide resources to the business or individual so that they have the ability to pay back. This is one of the reasons why we see a reduction in the number of credits.
“On the other side, financial systemsalso need to recognize that within an economy that is being transformed, for the economy to get back on its feet, the private sector needs to look at innovations, do things differently which also needs a lot of financial resources,” said the governor.
Abel pleaded with financial institutions to open the accessibility of capital if the economy is to take off again, .as the economy remains stagnate at the moment.
On the other hand Seychelles’ financial system is focusing ahead to be entirely digitalized by 2023 in line with the Central Bank’s technological integration strategy.
Through the strategy, the financial system services are expected to be fully digitalized in two years, eliminating the use of physical cash.
“This strategy highlights the CBS’ contribution towards a digital economy and something we have been working on for a while. It will go a long way to improving the efficiency of the financial sector in Seychelles,” said Abel.
Financial technology, or fintech, is the use of innovative technology in the design and delivery of financial services and products. It has immense potential to contribute towards economic and social development
Where by it can transform the way governments, businesses, civil society and citizens interact and contribute towards enhancing the ease of doing business.