Payment Solutions: CBN Issues Framework for Regulatory Sandbox Operations
Given the rise in consumer appetite for payment solutions and new technology in the financial services space, the Central Bank of Nigeria, CBN, has taken steps to ensure new and flexible ways of engaging with the industry.
One of the ways the Apex bank is doing this is with the introduction of a Regulatory Sandbox, which is a formal process for firms to carry out live tests of new, innovative products, services, delivery channels, or
business models in a controlled environment, with regulatory oversight, subject to appropriate conditions and safeguards.
With this, the CBN would stay abreast of innovations while promoting a safe, reliable and efficient Payments System to foster
innovation without compromising on the delivery of its mandate.
This Framework, therefore, defines the establishment, rules and operations of a Regulatory Sandbox for the Nigerian Payments System to promote effective competition, embrace new technology, encourage Financial Inclusion and improve customer experience, with a view to engendering public confidence in the Financial System.
The objectives of the Regulatory Sandbox Operation in Nigeria are as follows:
i. To increase the potential for innovative business models that advance financial inclusion;
ii. To reduce time-to-market for innovative products, services, and business models;
iii. To increase competition, widen consumers’ choice, and lower costs;
iv. To ensure appropriate consumer protection safeguards in innovative products;
v. To clearly define the roles and responsibilities of stakeholders and the operations of the Sandbox for the Nigerian Payments System industry;
vi. To ensure adequate provisions in regulations to create an enabling environment for innovation without compromising on safety for consumers and the overall payments system; and
vii. To provide an avenue for regulatory engagement with FinTech firms in the payment space, while contributing to economic growth.
You can download the FRAMEWORK FOR REGULATORY SANDBOX OPERATIONS here:
