The Bank of Namibia (BoN) has announced the launch of the FinTech Innovations Regulatory Framework, which outlines how FinTech innovations that are not currently subject to the bank’s existing regulations will be treated.
This follows the recent facilitation of an information session with 30 existing and aspiring financial technology (FinTech) start-ups on identifying solutions to regulatory challenges. It also shared information on the FinTech Innovations Regulatory Framework, eligibility, and application procedures by BoN, Start-Up Namibia, and HTTPS.
In order to promote innovation in Namibia, the bank’s framework is critical in identifying and encouraging FinTech services across various sectors, such as banking, payment systems, and cross-border remittances.
Because of the accelerated emergence of FinTechs, BoN has been compelled to investigate flexible approaches to engaging with FinTechs while remaining mindful of the associated risks and potential opportunities.
The session, hosted by the BoN Innovation Hub in collaboration with Start-Up Namibia and High-Tech Transfer Plaza Select (HTTPS), aimed to foster innovation through technology transfer and the development of new regulations that are responsive to innovation.
The current financial and technological landscape, according to BoN Deputy Governor Ebson Uanguta on Monday, is pushing the boundaries of central banks, necessitating the need to adapt to the new reality of unprecedented technological advancements.
Among these are distributed ledger technology, new data analytics (artificial intelligence [AI] and machine learning), cloud computing, increased mobile access, and increased internet speed and bandwidth, according to him.
“The proliferation of financial innovations has a significant impact on the Bank of Namibia’s mandate and role as a financial system regulator. Our position on innovations evolves in tandem with new technology, and it is informed by monitoring the domestic landscape and combining this perspective 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 in order to protect consumers and ensure financial stability,” Uanguta said.
He cited BoN’s Strategy for 2022-2024, which was informed by the changing financial landscape and the need to keep Namibia’s financial system relevant and modern.