The Central Bank of Nigeria (CBN) regulatory sandbox has gone live, the bank has announced.
#CBN's Regulatory Sandbox is LIVE!!
As an innovation-embracing financial institution, CBN is determined to support the development of new financial products and services that can improve how payment systems operate, mainly through digital channels. pic.twitter.com/mroqrjco39
— Central Bank of Nigeria (@cenbank) January 25, 2023
“As such, we invite participants in the financial system to submit Expressions of Interest to participate in the Regulatory Sandbox to explore novel applications of technology and innovation on behalf of our customers and stakeholders,” the bank said in a tweet thread.
According to CBN, the Regulatory Sandbox is a formal process for firms to conduct live tests of new, innovative products, services, delivery channels, or business models in a controlled environment with regulatory oversight.
The CBN’s Sandbox aims to boost innovation, increase financial accessibility, and protect consumers, all while offering a means of communication with fintech firms in the payments sector.
The Sandbox application process is open to both existing CBN licensees (financial institutions with fintech initiatives) and other non-regulated technology companies intending to test innovative financial solutions, products, or services deemed acceptable by the CBN.
However, the bank is more concerned with applications of novel technologies not covered by law.
“Innovative financial service/products deemed acceptable by the CBN and tests proposing non-regulated financial products and services using emerging technologies, i.e., Innovators whose proposed solution involves technologies which are currently not covered under existing CBN regulations. Tests are limited to payment products and services.”
Among the criteria for acceptance include being an innovative product or service with clear potential to:
- Improve accessibility, customer choices, efficiency, security and quality in the provision of financial services; or
- Enhance the efficiency and effectiveness of Nigerian financial institutions management of risks; or
- Address gaps in or open up new opportunities for financial benefits or investments in the Nigerian economy
The applicant should submit an application form along with all complete information and relevant details. Prior to submitting an application, the applicant can seek clarification regarding the sandbox by writing a mail to email@example.com
The CBN’s sandbox was initiated in 2021 with the publication of the Framework for Regulatory Sandbox Operations.
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