SIGNIFICANT GROWTH IN DIGITAL BANKING IN COMESA

MBABANE – The banking sector in the COMESA region has witnessed tremendous transformation in recent times.

The Central Bank of Eswatini (CBE) Governor Dr Phil Mnisi says digital banking has not only expanded access to financial services but has also streamlined operations and enhanced customer experience. Dr Mnisi was making remarks as the Chairman of the COMESA Committee of Governors of Central Banks, during the official opening ceremony of the COMESA symposium held at the CBE Complex yesterday morning.

The Common Market for Eastern and Southern Africa (COMESA) is a regional economic community in Africa with twenty-one member States, stretching from Tunisia to Eswatini.
The 2024 Symposium of the COMESA Committee of Governors of Central Banks was held on the following two themes, namely: ‘Digital Banking and the Impact of Cyber Security and other Emerging Risks to Central Banks in the COMESA Region’, and ‘The Era of using Big Data and Machine learning in Central Banks and Financial Institutions: Implications for Monetary Policy’.

Dr Mnisi said the banking sector in the COMESA region holds transformative potential for financial inclusion, efficiency, and economic growth not only for our region but also for the entire world. He said, however, these opportunities come with significant challenges, particularly in the realms of cybersecurity and other emerging risks. He said cybersecurity has emerged as one of the most pressing concerns for central banks and financial institutions globally and, indeed, in the region.

“As financial services increasingly move online, so does the risk of cyberattacks,” said the governor. Dr Mnisi mentioned that malicious actors exploit vulnerabilities in digital infrastructures, posing a significant threat to individual financial institutions and the entire financial system. “For instance, a successful cyberattack on a single institution can trigger a domino effect, leading to systemic risks and potentially destabilising the entire financial ecosystem. As such, even as we embrace digital banking owing to its benefits, we also become more vulnerable to cyberattacks, data breaches, and other malicious activities,” he added.

The governor said the risks are not just limited to disruptions in monetary policy implementation and financial losses; they can erode the trust of citizens in the banking sector and threaten the stability of an entire financial system.Dr Mnisi added that as banks adopt modern technologies, the potential for system vulnerabilities increases. He said this necessitates robust risk management frameworks.

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