The Central Bank of Nigeria (CBN) regulatory sandbox has been launched, the bank announced.
#CBN‘s Regulatory Sandbox is LIVE!
As a financial institution that embraces innovation, CBN is determined to support the development of new financial products and services that can improve the operation of payment systems, mainly through digital channels. pic.twitter.com/mroqrjco39
— Central Bank of Nigeria (@cenbank) January 25, 2023
“As such, we invite participants in the financial system to submit Expressions of Interest to participate in the regulatory sandbox to explore novel applications of technology and innovation on behalf of our customers and stakeholders.” the bank said in a tweet thread.
According to CBN, the Regulatory Sandbox is a formal process for companies to live test new and innovative products, services, delivery channels, or business models in a controlled environment with regulatory oversight.
CBN’s Sandbox aims to drive innovation, increase financial affordability and protect consumers, while providing a means of communication with fintech companies in the payments industry.
The Sandbox application process is open to both existing CBN licensees (fintech financial institutions) and other unregulated technology companies intending to test innovative financial solutions, products or services that CBN deems acceptable.
However, the bank is more concerned with applications of novel technologies that are not covered by the law.
“Innovative financial products/services deemed acceptable by the CBN and trials proposing unregulated financial products and services using emerging technologies, i.e. Innovators whose proposed solution involves technologies that are not currently covered by existing CBN regulations. The tests are limited to paid products and services.”
Acceptance criteria include being an innovative product or service with a clear potential to:
- Improve accessibility, customer choice, efficiency, security, and quality in the provision of financial services; either
- Improve the efficiency and effectiveness of risk management of Nigerian financial institutions; either
- Address the gaps or open up new opportunities for financial benefits or investment in the Nigerian economy
The applicant must submit an application form along with all the complete information and relevant details. Before submitting an application, the applicant can ask for clarification about the sandbox by writing an email asandbox@cbn.gov.ng
The CBN sandbox began in 2021 with the publication of the Framework for Regulatory Sandbox Operations.
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