MANAMA: The Central Bank of Bahrain (CBB) has invited applications from firms wishing to test innovative financial products, services or business models across more than one jurisdiction.
Bahrain’s banking and financial services regulator said the move was a part of the Global Financial Innovation Network (GFIN).
Twenty-nine international financial regulators and related organisations have come together under the GFIN to support financial innovation in the interests of consumers.
The invitation to pilot cross-border tests in Bahrain follows last year’s consultation on the role of the GFIN in creating an environment that allows firms to simultaneously try and scale new technologies across multiple jurisdictions, gaining real-time insight into how a product or service might operate in the market, while ensuring appropriate consumer protection is in place.
CBB Governor Rasheed Al Maraj said, “This step marks an important milestone in our drive towards digitisation and innovation in Bahrain, and the mutual efforts undertaken by all GFIN members in enhancing our fintech ecosystems. This will build on the success of our own regulatory sandbox launched in mid-2017, and will attract even more companies to test their innovative financial solutions.”
Investment promotion agency Economic Development Board (EDB)’s chief executive Khalid Al Rumaihi said: “Bahrain has created a successful fintech ecosystem built on a foundation of strong regulations, a talented workforce with a long history in the financial services industry, and cost competitiveness. The kingdom also remains at the forefront of innovation, adopting new digitalisation laws which encourage disruption and the introduction of new technologies. The CBB’s commitment to encouraging innovation by introducing initiatives like the regulatory sandbox and the cross-border pilot tests further strengthen Bahrain’s position as a fintech hub.”
Firms interested in applying to take part in the pilot cross-border tests should review the list of participating regulators and submit an application to the CBB’s regulatory sandbox before the end of the month.
The GFIN has also finalised terms of reference for governance and membership of the group, and welcomes formal expressions of interest from regulators and international organisations interested in joining.
There is no deadline for these applications, the statement said.
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