StartOA, an OA Group subsidiary and fintech accelerator, has hosted Accra’s Fintech Mixer, with EMTECH as special guest. The event brougt together key ecosystem players in Ghana to drive conversations and network with each other.
The event also gave EMTECH an opportunity to demonstrate the Regulaory Sandbox to participants and how Financial Service Providers (FSPs) can be enrolled into the sandbox programme.
The Bank of Ghana recently announced the official launch of its Regulatory and Innovation Sandbox, a partnership between the Bank of Ghana’s Fintech and Innovation Office and EMTECH, a regtech provider that assist in the modernization of the Central Bank to facilitate inclusive access to a modern and sound financial ecosystem. This is part of the central bank’s effort to foster a regulatory environment that encourages the development of fintech innovations.
The event which took place at StartOA’s office at North Dzorwulu witnessed the presence of fintechs like Bezo Money, Zuberi, Paystack, Naa Sika, Tranzopay, Flutterwave, Bitsika among many others with representatives from the Fintech and Innovation Office at the Bank of Ghana.
The evolution of financial services from cash-based economies to cashless economies has occurred rapidly over the past decade. This has led to the emergence of fintechs developing innovative solutions to improve the delivery of financial services while promoting financial inclusion.
The emergence of these technologies has heightened the importance of global central banks tightening regulatory oversight over the delivery of financial technology services. The objective was to mitigate the risks posed by these advancements in finance-backed technology.
The financial sector is one of the fastest-growing industries worldwide. Ghana’s ecosystem is at the forefront of these subregional developments. The investment preference for fintech solutions reflects the global expansion of the fintech industry.
In 2017, fintechs in Africa received US$2.88 billion, representing 62percent of the total funding. Typically, this expansion is accompanied by specific loopholes and risks that must be monitored and mitigated to minimize the impact of any potential problems.
The Regulatory and Innovation Sandbox is an efficient method for mitigating the risks associated with financial innovation while fostering the growth of innovation in an ecosystem for emerging technologies. The regulatory sandbox is a safe haven where most financial innovations will be explored, tested, and implemented on a large scale.
Technology is advancing faster than regulation, and central banks are using the regulatory and innovation sandbox to create effective regulatory frameworks to ensure financial service delivery and inclusion in general. In addition, it enables fintechs to test their innovations in real-time before scaling up.
