Fintech
FinTech Innovation, Regulation and Oversight
FINTECH
Financial Technology is rapidly advancing innovation in financial services with new risks and emerging threats, as well as new business models and technology use cases. These developments may have implications for financial stability and monetary policy.
In this regard, the Reserve Bank is taking a collaborative approach through interagency arrangements to understand and assess the impact of FinTech on the economy and to enable responsible innovation in the financial services sector through experimentation and testing in a controlled environment.
FinTech in Zimbabwe
Background
The financial sector is leveraging technological innovations to improve efficiency, lower the cost of financing and enhance convenience, speed of service delivery and the quality of information provided to users.
Zimbabwe has witnessed notable FinTech growth in several areas, particularly in insurance, payments and trading, including developments in cryptocurrency.
Some of the notable innovative services and products include mobile money, electronic platforms (such as Zimswitch, Payserv and Paynow), switching services and cryptocurrencies.
Globally, regulators are exploring approaches to regulating FinTech in a manner that balances innovation, inclusion and stability. In view of FinTech’s potential to enhance efficiencies, reduce the cost of doing business and advance financial inclusion, the Reserve Bank is spearheading the development of a National FinTech Framework to guide the adoption, implementation and regulation of FinTech in the financial services sector.
Institutional Arrangements
In view of the multi-dimensional nature of FinTech innovations, Zimbabwe has adopted a collaborative and consultative approach. The Reserve Bank, other financial sector regulators and relevant Government Ministries held the inaugural FinTech meeting on 31 May 2019, culminating in the establishment of a National FinTech Steering Committee supported by an Interagency FinTech Working Group (IFWG).
The Committee assesses key aspects of FinTech and its implications, providing strategic policy direction on how Zimbabwe can create an enabling environment that promotes financial technology innovation and entrepreneurship.
Composition
- Ministry of Finance and Economic Development
- Ministry of Information Communication Technology
- Ministry of Industry and Commerce
- Ministry of Justice, Legal and Parliamentary Affairs
- Office of the President and Cabinet
- Reserve Bank of Zimbabwe
- Zimbabwe Revenue Authority
- Securities Exchange Commission
- Insurance and Pension Commissions
- Postal and Telecommunications Authority of Zimbabwe
Interagency FinTech Working Group (IFWG)
The Working Group’s duties and responsibilities are to:
- Conduct a scoping exercise to gain a general understanding of major FinTech innovations in the country
- Assess benefits, risks, challenges and opportunities arising from digitisation and the use of financial technology
- Assess best practices (including other country experiences) on legal and regulatory models of dealing with FinTech
- Recommend appropriate regulatory responses, including innovation platforms and regulatory reforms
- Identify FinTech use cases for regulatory authorities, including RegTech/SupTech and centralised eKYC
- Provide sound and practical recommendations to the National FinTech Steering Committee
National FinTech Steering Committee
The Committee’s responsibilities include:
- Spearhead the development of a National FinTech Strategy
- Critically analyse the regulatory regime of FinTech across all sectors in Zimbabwe
- Consider how the country can leverage FinTech in critical sectors including access to finance, delivery of e-services to vulnerable sections, record management and other government services, and adoption of digital payments
- Advise on developing a flexible regulatory environment that can adapt to dynamic technologies
- Identify potential and existing gaps in developing the FinTech space in Zimbabwe
- Promote leveraging FinTech to advance inclusion, efficiency and economic growth
- Promote ease of doing business in the financial sector through FinTech
- Propose measures to ensure a successful FinTech hub
- Develop regulatory interventions including innovation platforms such as regulatory sandbox, innovation hubs and accelerators
- Consider development of open data and centralised e-eKYC platforms
- Keep abreast of global and domestic developments in the FinTech sector
- Produce and publish a periodic report
- Consider international and regional cooperation opportunities in areas of FinTech
