The Capital Markets Authority (CMA) has admitted KOA Save Africa Limited and Moneto Ventures Limited to the Regulatory Sandbox paving way for the two firms to test their innovations in a live capital market environment, in compliance with the CMA Regulatory Sandbox Policy Guidance Note.
The admission of the two firms is in line with the commitment of CMA 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 for a period of 6 months as it seeks to help retail investors to easily, conveniently, and affordably, save and invest in the capital markets. The fully digital mobile application has the capacity to embed several collective investment schemes focusing on money market funds.
Moneto Ventures Limited will test its Chumz App over a one year period in the sandbox as it seeks to validate it’s mobile app which uses behavioral 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.
“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.” – CMA CEO Mr. Wyckliffe Shamiah.
Mr Shamiah added, “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.
Also Read: CMA Undertakes Capital Market Master Plan Review with FSD Africa support.
