Fintech startup KOA Save Africa Limited and venture capital firm Moneto Ventures Limited have been admitted to Kenya’s Capital Markets Authority (CMA) Regulatory Sandbox.
The two firms will test their innovations in a live capital market environment in compliance with the CMA Regulatory Sandbox Policy Guidance Notes (PGN).
KOA Save Africa will test its test KOA App. The innovation seeks to help retail investors quickly, conveniently, and affordably save and invest in the capital markets.
KOA App is accessible to iOS and Android mobile users. The fully digital mobile application was to embed several collective investment schemes focusing on money market funds. KOA Save Africa will test its application for six months.
Moneto Ventures Limited will test its Chumz App, a digital application also available on iOS and Android mobile devices.
This App uses behavioural psychology techniques to encourage users to save and build a digital savings and investment culture.
Moneto Ventures seeks to achieve this by ensuring minimum effort between saving and investing and deposit while helping investors keep track of their progress on specific goals. Moneto Ventures will test its application in the Regulatory Sandbox for one year.
Wyckliffe Shamiah, CMA Chief Executive, said if these innovations for testing in the Regulatory Sandbox are successful, this will significantly reduce barriers to entry into the capital markets for retail investors.
“This can be achieved by making collective investment schemes accessible to investors in a more affordable and convenient manner. Successful testing within the Regulatory Sandbox will ultimately enhance access, usage and the quality of products in the capital markets by leveraging technology,” said Shamiah.
CMA has surpassed its target of admitting five firms to the Regulatory Sandbox by 2023, as outlined in the Authority’s Strategic Plan 2018-2023.
“The Authority has so far admitted nine firms and has already published a report on the milestones it has achieved in the Regulatory Sandbox since its launch in March 2019,” said Shamiah.