Investment and financial analysts have been encouraged to embrace the digital revolution to optimize investor returns before and after the Covid-19 pandemic.
Betty Maina, the CS Ministry of Industrialisation, Trade and Enterprise Development said financial analysts and investors should use the COVID-19 Pandemic as a wake-up call to re-align their business models with the digital revolution.
The Cabinet Secretary spoke at the Institute of Certified Investment and Financial Analysts’ (ICIFA) 2nd international investment conference on the future of investing, which took place on April 22-23, 2021.
On a global scale, the CS stated that, as a result of the financial and operational constraints imposed by the COVID-19 Pandemic, investment and financial institutions have been re-aligning their business models and speeding up technological change to meet the new operational demands.
“The advent of the digital revolution means that the new generation of investors is more informed and more discerning than their parents, or the older generation of investors. In the next few years, we’ll see more and more investment strategies for those who want to invest, but who do not have a lot of extra money available”, she said.
She added that as the global economy undergoes rapid changes, the finance industry would be expected to be at the forefront of technological innovation.
The CS cited the resurgence of Financial Technology (FinTech) developments in Kenya, such as M-PESA, as an example of how the financial sector has transformed business practices.
“Due to the greater expansion of the FinTech space in Kenya, we have seen the spread and the increased use of digital assets and currencies (such as cryptocurrency) as alternative mediums of exchange” she noted.
The CS said that FinTech technologies have greatly benefited government operations, resulting in a greater use of FinTech in the delivery of government services and various government outreach initiatives.
All these developments speak to an enabling policy environment for FinTech innovation and a society that is generally receptive to technological innovations and advancements, ” she added.
The CS stated that the government is committed to continue creating a favorable investment climate for both public and private sector investors by implementing effective policy initiatives and targeted transformative steps aimed at growing and diversifying investments.
“To maximise on this progress, the Government will continue to address any emerging issues in our legislative and regulatory frameworks, to further promote investments in key high potential areas.” Betty Maina.
The two-day conference covered a wide range of financial and investment topics, including the effect of COVID-19 on investment outlooks; Blockchain and its ability to disrupt financial and capital markets; Regulatory Policy and Strategy; FinTech; Artificial Intelligence and Machine Learning; Adoption of Environmental, Social, and Governance methods in investment, etc.