CBN Invites Financial Services Operators To Participate In Regulatory Sandbox
The Central Bank of Nigeria (CBN) has called on operators in the financial system to submit expressions of interest to participate in the bank’s Regulatory Sandbox.
This is in furtherance of the apex bank’s quest to engage innovators in new and flexible ways.
A statement by the CBN said the objective and scope of the Sandbox include: identifying and encouraging innovative solutions that will enhance the design and delivery of payment and financial services in Nigeria.
The overarching objective is to improve service quality, enhance customer experience, and foster financial inclusion, amongst others. The Sandbox is suitable for financial products, services and solutions that are innovative.
Note that regulatory sandbox refers to live testing of new products or services in a controlled regulatory environment. It acts as a “safe space” for business as the regulators may or may not permit certain relaxations for the limited purpose of testing.
All entities (e.g. digital lenders, application developers, start-ups, financial technology providers, etc.) with innovative financial solutions are eligible to apply to the Sandbox. Applications are also welcome from existing CBN-licensed institutions.
Applicants are required to complete the electronic application form and ensure that all fields are duly completed. Please note that incomplete submissions shall not be considered.
Applicants are reminded that providing false or misleading information in the application process may result in the refusal of the application, subsequent cancellation of the registration process and/or further regulatory actions.
All applications successfully submitted would be acknowledged. Applicants would be informed of approval or non-approval to participate in the sandbox within 60 working days after the closing date indicated in this publication.
A Letter of Approval (LoA) shall be issued to approved applications. This certifies participants to test their innovation upon admission into the Sandbox. Be advised that application review timelines depend on the complexity of the proposed product/solution as well as the timely receipt of supporting documentation.
Interested participants should note that by applying for admission into the Sandbox, they consent that the CBN may use or exclude any data/content submitted by you for its internal evaluation.
Applications are to be submitted on or before February 1, 2023.