Namfisa's regulatory sandbox goes live
Sandbox aims to provide safe testing ground
Namfisa has signed up the first participants for its regulatory sandbox platform.
The Namibia Financial Institutions Supervisory Authority (Namfisa) this week signed testing agreements with two innovators to participate in its regulatory sandbox initiative.The two innovators, ReferredBy, a nano-loan initiative, and Ergo Analytics, a verification initiative, were chosen to participate in Namfisa's regulatory sandbox initiative.
Speaking at the signing ceremony, Namfisa CEO Kenneth Matomola said the platform is crucial for advancing the understanding of emerging technologies and facilitating evidence-based legislative reforms.
“The regulatory sandbox plays an important role in promoting innovation and financial inclusion within the non-bank financial institutions (NBFI) sector, contributing to national efforts aimed at creating a transformed, safe, and inclusive financial sector,” Matomola said.
Innovative testing
The sandbox initiative represents the regulator’s vision to promote innovation in both digital and non-digital financial services while simultaneously enhancing financial inclusion. Under the vigilant supervision of Namfisa, the sandbox provides a controlled environment for live tests of innovative products, services or solutions within specified parameters or limits.
During their 12- to 16-month tenure within the sandbox, ReferredBy and Verime will undergo live testing of their innovative solutions on a limited scale, ensuring consumer protection, fairness and risk mitigation.
"These tests will provide invaluable insights to Namfisa, furthering our mission to cultivate a dynamic, secure and supportive financial sector in Namibia," the authority stated.
A regulatory sandbox is a controlled environment set up by regulatory authorities, typically in the financial sector, to allow firms to test innovative products, services, business models or delivery mechanisms in a live market environment but under a relaxed regulatory regime. The concept is designed to foster innovation while still ensuring consumer protection and financial stability.