FinTech Regulation — Summary on how Ndovu navigated regulation
Recent regulatory actions both in China & Nigeria have shown that FinTechs need to keep a close eye on regulation.
A good friend, Samora Kariuki has done an excellent deep dive on the challenges that Fintechs & regulators face in light of the rapid innovation in this space.
As founders of Ndovu, this is a summary of how we navigated regulation in Kenya:
- Taken the time to understand regulator motivations & the existing legislation.
- As the vanguard of disruption in the ecosystem, it is our responsibility to work with the regulator to not only educate but also provide guidance on how best to monitor our company.
- We are fiduciary to our clients. We use learnings gained whilst working at BlackRock & the Nairobi Securities Exchange to work in tandem with the regulator to roll out our offering.
- A key decision to leverage the ground-breaking regulatory sandbox.
- Unlike other regions on the African continent, the Kenyan regulator fosters innovation & has had the foresight to set up a pro-innovation environment.
- Working closely with the regulator using a “test and learn” approach.
- Finally, building a product with the regulator’s input, means our offering has a strong foundation favouring our customers and encouraging new participants to eventually follow suit.
This ultimately eases the supervisory burden.
It is a win-win scenario.
