Selcom Payment has become the first company to be admitted under the Bank of Namibia (BoN)’s Fintech Innovation Regulatory Framework, The Brief can reveal.
The financial technology firm was granted approval in respect of its proposed agency banking solution, specifically in the Regulatory Sandbox Programme.
BoN’s Director for Strategic Communications and International Relations Kazembire Zemburuka said acceptance under the fintech framework allows fintech firms to test their innovation within a controlled environment.
“The Bank will understand the technology, the risks and benefits for the duration of testing after which further processes and regulations will be applied to inform business executions and operations,” he said in response to an inquiry from The Brief.
“This will assist the Bank in revising or advising the revision of regulations impeding the development of FinTech services in Namibia. Lastly, it will help the Bank understand disruptive innovations by collecting evidence that can be used to advise the formulation of new regulations or set regulatory conditions that are innovation-responsive and innovation-enabling.”
Zemburuka noted that BoN aims to manage risks emanating from financial innovations, maintain the integrity of the financial system by safeguarding financial stability as well as promoting consumer protection through the Fintech Sandbox.
He was, however, quick to point out that the central bank will not acquire interest in any fintech that will be successful through its framework.
“The Bank does not acquire equity of interest in any start-ups or fintechs. The purpose of this Regulatory Framework is to provide guidance on how the Bank of Namibia will treat financial technology innovations that are not already subjected to the Bank’s existing regulations,” the BoN Spokesperson said.
BoN introduced the framework last October as it seeks to provide guidance on how it will treat financial technology innovations that are not already subjected to the Bank’s existing regulations.
This comes as fintech services continue to impact banking, payment systems, cross-border remittances and credit lending activities, bringing about major changes in how financial services are delivered and consumed locally and globally, the most central banks have lagged behind in providing regulations as compared to traditional financial services and products.
While most fintech innovations are deemed beneficial to the financial sector and bring about efficient financial services to consumers, they are usually not accommodated or covered by existing laws and regulations.
The development comes as last week the apex bank held an information session with 30 existing and aspiring fintech start-ups on identifying solutions to challenges concerning regulations.
During the meeting, BoN Deputy Governor Ebson Uanguta acknowledged how technological advancements which impact the financial sector are pushing the boundaries of central banks, necessitating the need to adapt to the new reality of unprecedented technological advancements.
The event also saw Cyclon Accounting, Lavoro Insurance Namibia, Pre-Eminence Financial, WOW Company, and Yetu Pay pitching innovative ideas to the BoN, as well as detailed solutions to identified problems in respective key areas.
