Bank of Namibia hosts information session
FinTech Regulatory Framework
Fostering innovation through the transfer of technology and the formulation of new regulations that are innovation responsive.
The Bank of Namibia, Start-Up Namibia, and High-Tech Transfer Plaza Select (HTTPS) last week facilitated an information session with thirty existing and aspiring FinTech start-ups on identifying solutions to challenges concerning regulations.The central bank further shared information on the Financial Technology (Finech) Innovations Regulatory Framework, eligibility, and application procedures. The session hosted by the Bank’s Innovation Hub in conjunction with Start-Up Namibia and High-Tech Transfer Plaza Select (HTTPS) was aimed at fostering innovation through the transfer of technology and the formulation of new regulations that are innovation responsive.
The Bank of Namibia introduced the FinTech Innovations Regulatory Framework, which provides direction on how FinTech innovations that are not presently subject to the Bank's existing regulations will be treated. The Bank’s framework plays a critical role in identifying and encouraging fintech services across various sectors, such as banking, payment systems, and cross-border remittances, in order to promote innovations in Namibia. The accelerated emergence of FinTechs has compelled the Bank to explore flexible approaches to engage with FinTechs while being mindful of the accompanying risks and potential opportunities.
At the event, Ebson Uanguta, Deputy Governor of the Bank of Namibia, stated that the current financial and technological landscape is pushing the boundaries of central banks, necessitating the need to adapt to the new reality of unprecedented technological advancements. These include distributed ledger technology, new data analytics (artificial intelligence [AI] and machine learning), cloud computing, increased mobile access, and internet speed and bandwidth.
Mandate
‘’The proliferation of financial innovations significantly impacts the Bank of Namibia’s mandate and its role as a regulator in the financial system. Our position on innovations is ever-evolving along with new technology, and it is informed by monitoring the domestic landscape and pairing this view with global standard setters. We are determining where our limited resources should be directed and which aspects of digital innovation are a source of concern to protect consumers and safeguard financial stability as chief considerations,’’ Uanguta stated.
He cited the Bank’s Strategy for 2022 to 2024, which was informed by the changing landscape of finance and the need to ensure that Namibia’s financial system remains relevant and modernised.
At the event, start-ups and stakeholders shared their fundamental interests and challenges in adopting innovative initiatives. Among the key issues raised were approval processes, fintech regulations and requirements, banking license requirements, customer privacy, payment intermediation services, and system operations.
The event was concluded with a pitch session that saw various start-ups present innovative ideas to the Bank of Namibia and detail solutions to identified problems in respective key areas. The start-ups consisted of Cyclon Accounting, Lavoro Insurance Namibia, Pre-Eminence Financial, WOW Company, and Yetu Pay. The panel of judges further provided guidance to develop these innovations and advised on the applicability of the Fintech Framework.