The Bank of Ghana has today, Friday, 19th August 2022, launched its Regulatory and Innovation Sandbox developed in collaboration with EMTECH Solutions Inc.
This is in line with the Bank’s
commitment to continuously evolve a conducive regulatory environment that
fosters innovation, financial inclusion and financial stability.
Over the past two years and during the
pilot, the Bank said the use of digital financial services among Ghanaians
have recorded remarkable increase on account of a raft of enabling policies
introduced by the Bank and the Government of Ghana under the national
digitalisation agenda. At the same time, the restrictions imposed on movement
of persons as part of the COVID-19 containment measures, according to the
central bank have spurred the adoption of digital financial services among
individuals, businesses, government ministries, departments and
agencies.
"Similarly, the adoption of
emerging technologies such as artificial intelligence, machine learning, and
data analytic tools are accelerating among Ghanaian financial service providers
with enormous opportunities for innovative products and services including
chatbot, Know Your Customer (KYC) and Customer Due Diligence (CDD) solutions,
anti-money laundering and fraud monitoring platforms, credit scoring for
digital credit products and customer-centric product designs," the bank
said in a statement.
Within the domain of Bank of Ghana, it
said the digital version of the Ghanaian currency, the eCedi, has the potential
of boosting innovation in digital financial service and further enhancing
digitalisation of the financial service industry when mainstreamed.
On the other end of the digitisation
spectrum, it noted that blockchain appears to hold significant promise for use
in mainstreaming financial service delivery though the technology is yet to
mature. Nevertheless, the Bank of Ghana said it took a bold decision and
admitted a blockchain solution into its Regulatory and Innovation Sandbox
during the pilot stage; a further evidence of its commitment to innovation.
Against the backdrop of these
developments, the bank explained that the Regulatory Sandbox is an opportune
tool for harnessing the potential of technology to develop an efficient and
inclusive financial service industry without risking financial stability. More
importantly, it noted that it will serve as an enabling framework for small
scale, live testing of innovations by innovators (operating under a special
exemption, allowance, or other limited, time-bound exception) in a controlled
environment under the regulator’s supervision.
"It aims at, among others,
fostering a deeper understanding of innovative products, services and business
models by the regulator, allowing for potential improvements to legal and
regulatory requirements to encapsulate emerging technologies, and ensuring
careful monitoring and containment of any risks that may emerge," the
statement explained.
The Regulatory Sandbox is open to all
licensed financial institutions (Banks, Specialized Deposit-taking Institutions,
Payment Service Providers, Dedicated Electronic Money Issuers, Financial
Holding companies and other Non-Bank Financial Institutions) and unlicensed
FinTech start-ups that have innovative products, services or business models
that meet the Regulatory Sandbox requirements.
Innovations eligible for the sandbox
environment will have to satisfy any of the following broad categories:
1. New digital business models not
covered explicitly or implicitly under any current regulation;
2. New and immature digital financial
service technology; and
3. Innovative and disruptive digital
financial service products that have the potential of addressing a persistent
financial inclusion challenge.
The Regulatory Sandbox Framework, user
guide and access link to the platform can be found on the Bank of Ghana website
to provide guidance and accessibility to interested licensed and unlicensed
financial or non-financial institutions.
The Bank of Ghana through this
initiative said it affirms its commitment to provide the enabling environment
for innovation to promote financial inclusion, and facilitate Ghana’s
digitization and cash-lite agenda.
Source: Classfmonline.com