The National Bank of Rwanda (NBR) has expanded its mandate to actively support the development of the financial sector and foster financial inclusion. Recognising financial technology (fintech) as a key driver in this mandate, NBR is investing in the promotion of fintech in the country through a range of initiatives. These efforts encompass engaging with fintech companies to ensure compliance with fintech regulations and improving the regulatory environment to enable thriving and position Rwanda as a fintech hub in the region. This commitment is exemplified by local and international events. For instance, the Inclusive Fintech Forum, a global platform for financial inclusion and fintech for good, is organised in partnership with the Kigali International Financial Center and the Monetary Authority of Singapore. Additionally, Fintech Friday, in partnership with the ICT Chamber, is organised bi-monthly to foster discussions and showcase fintech innovations. Capacity-building initiatives, including incubation and acceleration programmes, are also part of NBR’s sector development initiatives, building upon past successes such as the BimmaLab Africa Acceleration Program, launched in 2023, for innovative insurance entrepreneurs from Rwanda and seven other African countries. In the same spirit of supporting fintech growth, the NBR provides regulatory support through its Regulatory Sandbox programme to facilitate the testing of innovative fintech solutions in a live environment with limited customers. The regulatory sandbox welcomes a broad range of participants, from startups to established financial institutions, fintech companies, and ambitious entrepreneurs. Eligibility is contingent upon meeting the criteria detailed in Article 4 of the regulation governing the sandbox's establishment. These are some of the frequently asked questions about the Sandbox: When do the sandbox applications open? The sandbox applications are received in cohorts every 3 months, which is 3 times a year. Currently, applications for the 7th Cohort are open from April 1st to April 30th. What is considered an innovation? Some consider an innovation to be something completely new to the market. However, this is only half of our definition. The product, service, or solution is considered innovative if it introduces novelty to the market or offers a unique approach to already existing solutions. Moreover, it enhances quality, accessibility, and efficiency while filling gaps in the financial sector. Does the sandbox focus on certain innovations only? The NBR Sandbox welcomes any financial innovation within the regulatory and supervisory mandate of the Central Bank such as banking, payments, lending, insurance, and pension. Some cohorts, however, are designated to some specific financial services. These are known as “thematic cohorts”. A theme for instance can be on insurance, which means only insurance-related products and services will be eligible for applying. A call for applications will be specific about the scope of services allowed to apply. How many companies have been admitted so far? Since the enactment of the regulation establishing the regulatory sandbox in 2022, a total of eight participants have been admitted. Of these, two participants have successfully completed the mandated 12-month testing period as stipulated by the sandbox regulation. How can I apply? Applications are submitted online via the e-correspondence portal of the National Bank of Rwanda (e-correspondence.bnr.rw). There is no application fee. Additionally, for those seeking further guidance or assistance, the sandbox team can be contacted via email at sandbox@bnr.rw. What benefits do I get from the sandbox? Participants in the sandbox get to enjoy 12 months of testing with real customers. This means that some requirements to offer a financial service are waived or reduced to accommodate the ability of the applicant. They also get more credibility from potential partners such as financial services providers for integrations, and data providers for KYC verification, and credit scoring, and customers receive more protection. Paul Barera, CEO of Rwanda Telecentre Network currently under test in the sandbox said, “The sandbox has been a perfect tool for Rwanda Telecentre Network (RTN) to test and deploy its agent aggregator platform called Iteme. Now, RTN agents can use the Iteme platform to provide financial and non-financial services to the people at the bottom of the pyramid. Currently, RTN has more than 3,000 digital services agents spread across Rwanda.” Elie Tuyizere, CEO of Cover Soko, said, “When we applied for admission into the Sandbox, we pledged certain milestones. We provide monthly reports on how far we are hitting those milestones. The National Bank holds us accountable for our own goals while identifying rooms where they can intervene and support. As a startup, we gained enormous credibility from the day we got endorsed and doors started to open for us. The Sandbox does not do the work for us but rather makes it much easier by being the best companion/partner during our testing phase. Participants get to benefit from different initiatives by NBR or in partnership with other stakeholders such as exposure to investors, incubation and acceleration, and general guidance to navigate the regulatory environment. Don’t miss out on this opportunity to innovate and shape the future of finance in Rwanda! Apply now to join the National Bank of Rwanda’s Regulatory Sandbox programme and test your fintech solutions with real customers. Applications are OPEN from April 1st to April 30th, 2024 via e-correspondence.bnr.rw.
