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FSRA Launches Fintech Arch

1 December 2022
Ntokozo Nkambule

Photo Credit: www.insidebiz.co.sz

By Ntokozo Nkambule

The FSRA through its Chief Executive Officer (CEO) Ncamiso Ntshalintshali today launched the FSRA Fintech Arch.

FSRA during the launch held at the Royal Villas, Ezulwini noted that the Arch is a controlled environment that offers regulatory relief for participants to test innovative products and services within predefined parameters.

The CEO disclosed that the innovations they are calling upon are in the areas of insurtech, digital lending, digital credit underwriting, robo-advisers, crypto, and capital raising, comparative platforms, among others.

The FSRA says that as a regulator they seek to play a key role in encouraging the adoption of technology to support the automation and the utilization of new technologies by the sector to promote innovation and financial inclusion.

Ntshalintshali said the Fintech Arch will help them explore the concepts and the evolution of Fintech in the Eswatini Non-Banking Financial Institutions (NBFIs) landscape, by connecting FSRA to industry innovators in technological and digital information and transformation.

The CEO concluded by stating that they will continue to support innovation that can transform the sector. “We support innovation that can transform the sector and are intent on creating a conducive environment for all relevant Fintech solutions and Fintech companies in 2023 and beyond”

 Applications to the Fintech Arch are open to all EmaSwati from the 22nd of November – the 31st of January 2023”

Applications will be assessed against ARCH’s eligibility criteria;

  • The innovation to be tested must be intended for deployment in the Eswatini market.
  • The innovation to be tested must not clearly fit within the existing regulatory framework or it challenges the existing regulatory framework
  • The innovation must be beneficial to consumers or the market at large (e.g., for business-to-consumer companies – lower prices, increased competition, improved access/financial inclusion; for business-to-business companies – lower costs, increased efficiency, improved regulatory compliance)
  • The innovation is significantly different from other offerings in the market
  • The innovation is ready to be tested, including fully developed technology, sufficient funding to cover the full testing period, and secured partnerships (if required for testing)

The applicant must have a clear and detailed test plan, including:

  1. Clear objectives and success criteria for testing
  2. Timeline and milestones for testing
  3. Identification. n of regulatory requirements and/or required regulatory relief
  4. Possible risks (including risks to consumers) and risk mitigation strategies
  5. An acceptable exit and transition strategy

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