Wednesday, January 31, 2018
South Africa's Reserve Bank has established a three-man fintech unit to monitor the impact of new technology developments on deposit taking, payments, lending, insurance, and investments.
The dedicated, full-time team will report directly to deputy governor Francoise Groepe.
Addressing the initiative in a speech in Cape Town, Groepe says: Given the rapid developments in financial technology it is evident that we are potentially facing one of the most severe innovation and technology-driven disruptioons to products and services, particularly in tthe financial sector space."
South Africa has a relatively small, but growing fintech industry, exemplified by the recent emergence of a new breed of digital-first challengers such as Discovery Bank, Bank Zero and Tyme.
Addressing the regulatory implications, Groepe says a key task of the new unit will be to address the policy implications that arise from fintech developments.
"We as the Sarb favour a 'back to basics' approach," he adds. "Regulators should focus on regulatory principles that are risk-based, rather than creating excessive rules-based regulations aimed at these technologies or products."
Sign up to receive the news you want from ATMIA. We have a wide selection ranging from conference details, regional news and industry updates. You may update and change these details at any time. We look forward to staying in touch!
Add atmia.com to your favorites, make it your homepage or pin the website to your task bar or desktop.
Subscribe to our RSS feed and stay up to date with all of our press releases.