The Namibia Financial Institutions Supervisory Authority (NAMFISA) has warned of the risks associated with rapid technological advancement in the financial sector, including cybersecurity threats, data privacy concerns, market concentration, and the emergence of new forms of exclusion.
Speaking at the opening of FinTech Square 2025, NAMFISA Chief Executive Officer Kenneth Matomola stressed the need for regulators to manage innovation carefully.
“NAMFISA, as a regulator, must strike a delicate balance: How do we foster innovation while protecting consumers and promoting financial system stability?” he said.
Addressing delegates at the third edition of the annual event, Matomola emphasised that financial technology is no longer a passing trend but a vital tool reshaping how individuals and institutions engage with financial services.
He said the regulator remains committed to encouraging responsible innovation across the non-bank financial sector.
“Innovation must not deepen inequality, exclude vulnerable groups, or compromise financial integrity,” he said.
“Our challenge is to innovate responsibly, inclusively, and deliberately, ensuring that a smallholder farmer in rural Namibia benefits as much as a Windhoek-based entrepreneur.”
He added that NAMFISA is actively modernising its supervisory frameworks to accommodate emerging business models and is engaging with the industry through structured dialogues, including the FinTech Square platform and the authority’s Regulatory Sandbox initiative.
The NAMFISA Regulatory Sandbox currently hosts three participants. ReferredBy Financial Solutions CC operates a community-based nano-loans platform that uses referrals to extend credit to financially excluded consumers. Ergo Analytics CC, trading as Verime, offers a digital identity verification service aimed at streamlining Know Your Customer (KYC) compliance for financial institutions. Express Credit, a registered microlender, is piloting a loan product specifically designed for informally unemployed individuals.
A fourth participant is under review, with plans to onboard new cohorts focusing on alternative financing models such as crowdfunding and peer-to-peer lending.
“We are not mere watchdogs – we are enablers. Our mandate is clear: it embodies financial system stability, protecting consumers, and nurturing a thriving financial sector,” Matomola said.
