South Africa’s financial regulators have just launched an Intergovernmental Fintech Working Group (IFWG) Innovation Hub in response to changes in the financial sector driven by financial technology (Fintech) and to promote responsible innovation in the sector.
“The Innovation Hub is intended to support the sector in introducing innovations that complement the core mandates of regulators, including financial stability and soundness, consumer protection, financial inclusion, and fair lending practices.“
To help address the expected economic impact of the Covid-19 pandemic, the IFWG believes innovation among fintech firms and other financial sector innovators is required now more than ever and, therefore, must be supported.
The Innovation Hub will provide assistance to innovators in the financial technology space and some of the benefits of the offerings include clarification on the regulatory landscape, access to a space for testing the regulatory fit of innovative solutions and participation in initiatives and forums helping to shape the future of financial sector regulation on emerging fintech topics.
Innovation Hub users will have access to three avenues for assistance: The Regulatory Guidance Unit, the Regulatory Sandbox and the Innovation Accelerator.
This is certainly a very welcome approach to product development, both from a perspective of the provider obtaining regulatory guidance on its plans, and the authorities gaining in-depth insight into the products during the developmental phase.
For more information on the IFWG Innovation Hub visit www.ifwg.co.za.
