The Capital Markets Authority (CMA) has admitted KOA Save Africa Limited and Moneto Ventures Limited to the 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), in line with the commitment to develop and deepen the capital markets by facilitating the deployment of financial technology (fintech).
KOA Save Africa Limited has been admitted to the Regulatory Sandbox to test KOA App. The innovation seeks to help retail investors to easily, 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 has the capacity to embed several collective investment schemes focusing on money market funds. KOA Save Africa will test its application for a period of six months.
Moneto Ventures Limited will test its Chumz App, a digital application also available on iOS and Android mobile devices. It uses behavioural psychology techniques to encourage users to save and build a culture of digital savings and investment. Moneto Ventures seeks to achieve this by ensuring minimum effort between the decision to save and invest, and the actual 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.
The CMA Chief Executive Mr. Wyckliffe Shamiah noted, ‘The Authority is delighted to welcome these new innovations for testing in the Regulatory Sandbox because if these innovations are successful, they will significantly reduce the 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.’
Mr. Shamiah also observed that the Authority had 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. CMA recently published a report on the milestones it has achieved in the Regulatory Sandbox since its launch in March 2019.