Reserve Bank calls for FinTech harmonisation

Deputy Governor of the central bank, Francois Groepe, said South African policymakers had been keeping a close eye on FinTech developments

The South African Reserve Bank (Sarb) expects the National Credit Regulator and the Competition Commission to join the Intergovernmental FinTech Working Group (IFWG) in the interests of consolidating regulations in the burgeoning sector.

 

At the moment, the IFWG includes the National Treasury, the Financial Services Board, the Financial Intelligence Centre and the Reserve Bank.

 

Deputy Governor of the central bank, Francois Groepe, said South African policymakers had been keeping a close eye on FinTech developments.

 

“Authorities should, therefore, not merely acknowledge or observe innovation, but should actively review FinTech innovations with a view to ensuring proportionate and consistent authorising and licensing regime,” Groepe said.

 

“The Twin Peaks model of financial sector regulation, which is currently being implemented, aims to put in place a regulatory framework that better responds to the dynamic nature of the financial sector, including FinTech.”

 

Groepe called for policymakers to support innovation in FinTech.

 

The Sarb announced the establishment of a Fintech Programme designed to assess the emergence and regulatory implications of FinTech in February, and has also signed a Memorandum of Understanding with the European Central Bank and agreed to cooperate with the Bank of England on training initiatives.