SARB Launches Innovation Hub for the Financial Sector
SARB and other financial regulators in South Africa launched the Intergovernmental Fintech Working Group (IFWG) Innovation Hub to respond to the fintech-driven changes in the financial sector and to promote responsible innovation in the sector. As part of this, the three available avenues for assistance are the Regulatory Guidance Unit, the Regulatory Sandbox, and the Innovation Accelerator. SARB also published a set of frequently asked questions on the IFWG Innovation Hub.
The Innovation Hub is a cross-regulator capability aiming to demystify the regulatory landscape, provide a space for safe testing of innovative ideas, and actively advance innovation in financial services. In addition to SARB, the other financial regulators include National Treasury, the Financial Intelligence Center, the Financial Sector Conduct Authority, the National Credit Regulator, and the South African Revenue Service. The Innovation Hub is intended to support the financial sector in introducing innovations that complement the core mandates of regulators, including financial stability and soundness, consumer protection, financial inclusion, and fair lending practices. The Hub is open to all financial sector innovators, whether from a start-up, an established fintech firm, an incumbent financial service provider, or an adjacent industry entering the financial services market. Innovation Hub users have access to three avenues for assistance:
- The Regulatory Guidance Unit exists to help market innovators resolve specific questions regarding the policy landscape and regulatory requirements. Regulators will continue to assist queries through digital and virtual means, however, due to the COVID-19 pandemic, response times may depend on the volume and complexity of queries and will be provided on a best effort basis.
- The Regulatory Sandbox provides financial sector innovators with an opportunity to test new products and services that push the boundaries of existing regulation, all under the responsible supervision of relevant regulators. Participants must apply to the Regulatory Sandbox.
- The Innovation Accelerator exists to provide a collaborative, exploratory environment for financial sector regulators to learn from and work with each other on emerging innovations in the industry. Outcomes of these coordinated efforts will be shared on the IFWG Innovation Hub website
Through the Innovation Hub, the IFWG is committed to providing these resources to fintech firms and other financial-sector innovators to combat the pandemic. To help address the expected economic impact of the COVID-19 pandemic, IFWG believes innovation among fintech firms and other financial sector innovators is required now more than ever and, therefore, must be supported.
Related Links
Keywords: Middle East and Africa, South Africa, Banking, Fintech, COVID-19, IFWG, Innovation Hub, Cyber Risk, Regulatory Sandbox, Regtech, Innovation Accelerator, SARB
Featured Experts
Victor Calanog, Ph.D.
Leading economist; commercial real estate; performance forecasting, econometric infrastructure; data modeling; credit risk modeling; portfolio assessment; custom commercial real estate analysis; thought leader.
Previous Article
SARB Announces Regulatory Relief Measures Amid COVID-19 OutbreakRelated Articles
ESAs Issue Multiple Regulatory Updates for Financial Sector Entities
The three European Supervisory Authorities (ESAs) issued a letter to inform about delay in the Sustainable Finance Disclosure Regulation (SFDR) mandate, along with a Call for Evidence on greenwashing practices.
ISSB Makes Announcements at COP27; IASB to Propose IFRS 9 Amendments
The International Sustainability Standards Board (ISSB) of the IFRS Foundations made several announcements at COP27 and with respect to its work on the sustainability standards.
IOSCO Prioritizes Green Disclosures, Greenwashing, and Carbon Markets
The International Organization for Securities Commissions (IOSCO), at COP27, outlined the regulatory priorities for sustainability disclosures, mitigation of greenwashing, and promotion of integrity in carbon markets.
EBA Finalizes Methodology for Stress Tests, Issues Other Updates
The European Banking Authority (EBA) issued a statement in the context of COP27, clarified the operationalization of intermediate EU parent undertakings (IPUs) of third-country groups
OSFI Sets Out Work Priorities and Reporting Updates for Banks
The Office of the Superintendent of Financial Institutions (OSFI) published an annual report on its activities, a report on forward-looking work.
APRA Finalizes Changes to Capital Framework, Issues Other Updates
The Australian Prudential Regulation Authority (APRA) finalized amendments to the capital framework, announced a review of the prudential framework for groups.
BIS Hub and Central Banks Conduct CBDC and DeFI Pilots
The Bank for International Settlements (BIS) Innovation Hubs and several central banks are working together on various central bank digital currency (CBDC) pilots.
ECB Sets Deadline for Banks to Meet Its Climate Risk Expectations
The European Central Bank (ECB) published the results of its thematic review, which shows that banks are still far from adequately managing climate and environmental risks.
ESAs, ECB, & EC Issue Multiple Regulatory Updates for Financial Sector
Among its recent publications, the European Banking Authority (EBA) published the final standards and guidelines on interest rate risk arising from non-trading book activities (IRRBB)
EC Adopts Final Rules Under CRR, BRRD, and Crowdfunding Regulation
The European Commission (EC) recently adopted regulations with respect to the calculation of own funds requirements for market risk, the prudential treatment of global systemically important institutions (G-SIIs)
