Innova Limited and Pezesha Africa have been admitted to the Capital Markets Authority’s Regulatory Sandbox to live test innovative solutions with the capacity to deepen and enhance the efficiency of capital markets.
The third fintech firm admitted has elected to remain anonymous during its three months test period, except to its closed group of test subjects, an option provided in the Regulatory Sandbox PGN.
In a statement, Capital Markets Authority Chief Executive Paul Muthaura said: “The admission of the three firms is an important milestone noting that the Authority had set itself a target to admit five firms to the Regulatory Sandbox by 2023.”
“The Regulatory Sandbox allows live testing of innovations under a less onerous regulatory regime and is expected to attract fintech companies and existing capital markets licensees to test the application of technology to financial services. The admission of the three firms is an important milestone noting that the Authority had set itself a target to admit five firms to the Regulatory Sandbox by 2023”, said Mr. Muthaura, CEO of CMA Kenya.
Hilda Moraa, the chief executive of Pezesha said approval “Brings endless possibilities as well as cements trust and credibility in our business by shortening our time to market and allowing us to achieve our mission of financial inclusion at a larger scale”.
Innova Limited will be able to test its cloud-based data analytics platform designed for use by investors, fund managers, custodian banks, actuaries, pension administrators and regulators.
On the other hand, Pezesha Africa Limited will to test an internet-based crowd-funding platform through which investors can provide loan facilities structured as debentures for Small and Medium Enterprises.
The CMA approval restricts the testing period to 12 months.