Central bank to incubate Fintech startups in PNG
As a result of launching its Retail Payments System (REPS), the Bank of PNG has informed it will develop a regulatory sandbox for financial technology (Fintech) startups in the country.
With the country now possessing a world class payment system in REPS, the regulatory sandbox is a framework set up by a regulator (BPNG) that will allow FinTech startups and other innovators to conduct live experiments in a controlled environment under regulator supervision.
Central Bank Governor, Loi Bakani said the sandbox should be a place where everyone comes and tries to develop their products.
“So we will put an announcement out that if anyone wants to take up an innovation they have to register with us after meeting certain qualification, and then they come in and develop it anyway they want but as long as they meet the requirements,” he said.
“We will allow them to demonstrate, to pilot their product, and once it is acceptable then we can trail it out in any financial institution.”
He said key to the regulation would be to target areas that will enhance financial inclusion or areas in the financial sector.
“We are targeting the sandbox mainly for products relating to development of the financial sector. And we will come out to put a public notice when we are ready with this one so we can invite new innovators.
“It is good for Papua New Guinea and infrastructure is what they need.
“They have development products and there are very smart Papua New Guineans, but I think it needs to be put together in to one particular area where they can develop them and then we can take them out to improve some of the things in the government process like in the land titles, the passports, some of those things that are manual systems that are not working now,” he said.
Regulatory sandboxes are gaining popularity mostly in developed financial markets.
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