Bank of Ghana(BoG) has issued a release today, Thursday, January 26, 2023 announcing that its Regulatory Sandbox is open from 13th February 2023 to admit its first cohort of participants.
The central bank in its release has thrown an invitation to all eligible participants – Banks, Specialized Deposit-taking Institutions (SDIs), Payment Service Providers, Non-Bank Financial Institutions (Savings and Loans Companies, Microfinance Companies, Financial Holding Companies, Dedicated Electronic Money Issuers and aspiring or unlicensed FinTech Start-Ups as well as all innovators) for its Regulatory Sandbox.
The first cohort window according to BoG’s communique begins on 13th February, 2023 and ends on the 14th of March, 2023.
“Broadly, the Regulatory Sandbox will support innovations in any of the following areas: new digital business models not currently covered explicitly or implicitly under any regulation; new and immature digital financial service technology and innovative and disruptive digital financial service products that have the potential of addressing a present financial inclusion challenge.”
BoG
For the first cohort window, priority areas where innovations will largely be accepted will include: payments, remittances, crowdfunding and micro-lending.
On how to go about submission, the central bank has directed all interested entities to submit a complete application in the prescribed format through a link cited on its website.
Subsequently, BoG will inform all prospective participants about the outcome of their submitted applications within twenty-one (21) working days after the closure of the application window on 14th March 2023.
About BoG’s Regulatory Sandbox Framework
The Bank of Ghana Regulatory Framework was launched August 19, 2022, and was developed in collaboration with EMTECH Solutions Inc.
The Framework is in line with the central bank’s commitment to continuously evolve a conducive regulatory environment that fosters innovation, financial inclusion and financial stability.
Against the backdrop of the bank’s evolution and developments – the adoption of artificial intelligence, machine learning, chatbox services, 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, evolution of eCedi (the digital version of the Ghanaian cedi), the Regulatory Sandbox came into being.
The Regulatory Sandbox of the central is an opportune tool designed for harnessing the potential of technology to develop an efficient and inclusive financial service industry without risking financial stability.
“More importantly, 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.”
BoG
The Framework aims to promote a better comprehension of innovative products, services, and business models by the regulator, enable potential revisions to legal and regulatory requirements to include emerging technologies, and ensure close monitoring and management of any potential risks that may arise.
Bank of Ghana through this initiative, the Regulatory Sandbox Framework, affirms its commitment to provide the enabling environment for innovation to promote financial inclusion, and facilitate Ghana’s digitization and cash-lite agenda.
“With support from FSD (Financial Sector Deepening) Africa, we will engage various stakeholders including industry groups, associations and innovation hubs.”
BoG
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