The Mastercard study on Fintech in Malta. – Time to implement.

As a Governor at Finance Malta focusing on Fintech, in 2023 I facilitated a collaboration between Finance Malta and Mastercard where Mastercard conducted an extensive 100 page study on Fintech in Malta.

In the dynamic landscape of financial technology, Malta’s Fintech sector has emerged with a lot of promise. Recognizing this potential, Mastercard undertook an in-depth study to explore its intricacies.

Our aspiration is to support cultivate an environment in Malta that not only embraces Fintechs but propels them forward. The study’s outcomes are intended to create a fertile ground for collaboration, spark innovative endeavors, and pave the path for the long-term success of the sector.

This undertaking is a testament to our commitment to fostering growth and innovation within the realm of Fintech. – Mastercard

Building upon the 2023 Strategy for Financial Services, as published by MFSAC earlier in the year, Mastercard conducted an in-depth study, mapping the Maltese supporting ecosystem, along with the key segments and players of Malta’s rapidly growing fintech landscape, highlighting insights and trends.

This comprehensive study was validated by a panel of prominent industry professionals and regulators: representatives from Moneybase, FinanceMalta, MeDirect, MFSA, MSE, MDIA, Tech.mt, Malta Enterprise and MFSAC, aligned in support of Mastercard’s commitment to further elevate the development of payments in Malta. Several recommendations were identified, expanding on the major areas of improvement already identified by MFSAC, ranging from governance improvements and measures of support to foreign investments and funding.

The exercise culminated with Mastercard presenting its findings at the Finance Malta Annual conference. Mastercard gave a presentation and proposed 8 recommendations based on 4 key domains to support the efforts and propel the long-term growth of the Maltese Fintech Sector.

The 100 page study was conducted by Mastercard’s elite advisory team, it was the first time in fact that the Maltese Fintech ecosystem was extensively mapped out. The study explored the intricacies of the Maltese Fintech sector, and proposed a set of strategic actions to support the efforts for the sector’s growth. It also highlighted international trends and compared the best practices of leading Fintech hubs.

Independent Fintech Center

Amongst the recommendations, the one that caught my attention was the setting up of an Independent Fintech Center which is dedicated to supporting the overall sector and over time growing its remit with the best chances for success being a public private initiative. – Alan Cuschieri

Currently the Fintech sector in Malta is served by separate organisations each with different focus. Mastercard believes that combining the above functions under one dedicated platform will signal a stronger commitment to Fintechs domestically and abroad. It will also allow for better governance and drive centralized decision making, streamline access to expertise, guidance for Fintechs as one-stop-shop.

There are many formats that can be used to create this organisation but according to Mastercard perhaps a Not-for-profit initiative supported both by the public and private sector has the best chances of success. Upon the formation of the platform, services would be tailored to the needs of Fintechs with priority to designing Fintech specific schemes and monetary incentives to narrow focus on Fintechs. Gradually support services can be extended to include incubation, co-working, soft-landing guidance for inbound Fintechs, international expansion support and regulatory support.

During its presenttion at the FM Annual conference Mastercard also strongly recommended more collaboration between Banks and FI’s locally and provided several examples of success stories internartionally.

The Mastercard study was officially presented to the MFSAC this year. Its going to be interesting to see if the MFSAC chooses to take on any of these initiatives which seem to be aligned and an complimentary to its original vision. So far this year there have been no announcements on progress in regards to Fintech strategy, however that is set to change at the Finance Malta Annual Conference when the Chairman of the MFSAC is set to give an update on the progress made on the 177 initiatives including Fintech.

The FM Annual conference is the largest financial services conference of the year in Malta and you can buy tickets here.