Times Of Swaziland: SIGNIFICANT GROWTH IN DIGITAL BANKING IN COMESA

SIGNIFICANT GROWTH IN DIGITAL BANKING IN COMESA
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Nhlanganiso Mkhonta on 08/11/2024 09:08:00


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.