Financial Services Commission (FSC) – Digital Bank
What is a Digital Bank in Mauritius?
A digital bank in Mauritius is a fully licensed financial institution that operates exclusively through digital channels, without physical branches, while providing a broad range of banking services. These services are accessible via online platforms, mobile apps, and electronic interfaces, ensuring that customers can perform transactions and manage their accounts anytime, anywhere.
Key Features of Digital Banks in Mauritius:
- Fully digital operations: No physical branches, all services delivered online.
- Regulatory flexibility: Tailored regulatory frameworks to support digital banking.
- Phased development: Digital banks evolve through a structured, gradual licensing process.
- Focus on technology and cybersecurity: High standards for operational security and customer data protection.
- Customer-centric approach: Digital banks prioritise user-friendly, accessible banking experiences.
- Financial inclusion and innovation: Aimed at expanding banking access and supporting new financial products.
Why Establish a Digital Bank in Mauritius?
Mauritius has quickly established itself as a preferred destination for digital banking. The country offers a unique combination of regulatory support, strategic positioning, a robust financial ecosystem, and attractive tax incentives. With its forward-thinking approach to digital banking and commitment to innovation, Mauritius stands out as an ideal location for businesses seeking to launch and scale their digital banking operations. Several compelling reasons make Mauritius an ideal location for establishing a digital bank:
- Strategic Geographical Location: Mauritius’ strategic location between Africa and Asia makes it a key gateway to both regions’ major markets. This, along with its focus on financial innovation, positions it as an appealing hub for digital banking.
- Favorable Tax Regime: Mauritius offers a competitive tax regime that includes low corporate tax rates, tax incentives for innovation-driven businesses, and no capital gains tax. These benefits make it an attractive destination for financial institutions.
- Political and Economic Stability: Mauritius fosters a secure environment for investors. The country’s stability, particularly in an often volatile financial landscape, ensures a secure and sustainable base for long-term banking investments.
- Skilled Personnel: Mauritius boasts a highly skilled, multilingual workforce, with expertise in technology, finance, and regulatory compliance. The availability of qualified professionals makes it easier to build a strong team capable of managing complex digital banking operations.
- Competitive Digital Infrastructure: Mauritius boasts advanced digital infrastructure, including high-speed internet, reliable mobile networks, and secure payment systems. These infrastructure elements are essential for the smooth and secure operation of a digital bank, enabling customers to easily access services across multiple platforms.
Contact us at info@salvusfunds.com if you are interested in establishing a Digital Bank in Mauritius; our Investment Firms Licensing team is ready to answer your questions.
Capital Requirements
A digital bank must meet minimum capital requirements throughout its lifecycle. Initially, a restricted digital bank is required to have a minimum paid-up capital of 200 million Mauritian rupees. Once the bank reaches full operational status, this requirement increases to 400 million rupees, ensuring it has sufficient financial resilience to operate sustainably.
Application Fees
The application fees to establish a digital bank in Mauritius are determined by the Bank of Mauritius (BoM) and are part of the licensing process for digital banks. Such fees vary depending on the scope, specifics, and complexity of the application. The fees are non-refundable.
Annual Fees
License renewal fees to the BoM depend on the size, total assets and operational status of the digital bank.
Licensing Timeframe
The licensing process to establish a digital bank in Mauritius involves two stages: the Mobilisation Period (up to 2 years) and the Transitional Period (up to 3 years). During the Mobilisation Period, the bank develops governance and operational frameworks while conducting limited business. Upon completion, the bank seeks approval to move to the Transitional Period, where it further enhances systems and frameworks. The final authorization to operate as a fully digital bank is granted at the end of this phase.
Establishing a Digital Bank in Mauritius with SALVUS
Our Payment Services Licensing team at SALVUS specializes in guiding clients through the comprehensive licensing process for establishing a digital bank in Mauritius. With expertise tailored to the unique regulatory framework for digital banks, we start by understanding your business model and strategic objectives. This approach enables us to recommend the most suitable licensing structure and guide you through each phase of the application process.
We work closely with your team to gather and organize the necessary documentation, ensuring your application meets the Bank of Mauritius’s specific requirements. Acting as a liaison between your business and regulatory authorities, we facilitate smooth communication throughout the two-stage licensing process—covering both the Mobilization and Transitional periods. Our team ensures compliance with capital requirements and the implementation of strong governance and cybersecurity measures, guiding you through each step to ensure a timely and efficient launch of your digital bank in Mauritius.
Contact us at info@salvusfunds.com if you are interested in establishing a Digital Bank in Mauritius; our Payment Services Licensing team is ready to assist you.
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