fintech
The Capital Markets CEO

Two firms have received the greenlight to test run their fintech app services in a live markets environment at the bourse.

The Capital Markets Authority has given KOA Save Africa Limited and Moneto Ventures Limited the greenlight to pilot KOA App and Chumz App respectively as the regulator explores technology enabled ways to deepen market access.

The exercise will be undertaken in compliance with the CMA Regulatory Sandbox Policy Guidance Notes on deployment of financial technology (fintech).

KOA Save Africa will test KOA App, an innovation that seeks to help retail investors to easily, conveniently, and affordably, save and invest in the capital markets.

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The mobile-based app has the capacity to embed several collective investment schemes focusing on money market funds.

KOA App, which is accessible to iOS and Android mobile users, will test run for a period of six months.

On the other hand, Moneto Ventures will pilot its Chumz App, a mobile platform that is also available on iOS and Android smartphones.

Chumz App uses behavioural psychology techniques to encourage users to save and build a culture of digital savings and investments.

Moneto Ventures, which has been allowed to test run its application for 12 months, 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, said CMA.

“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,” said CMA Chief Executive Wycliff Shamiah.

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 added.

The markets watchdog has already admitted nine firms to the Regulatory Sandbox, surpassing its target of five companies by 2023 as outlined in the authority’s 2018-2023 strategic plan.

The other seven firms that have already been admitted into the Regulatory Sandbox are; Pezesha Africa, Innova Limited, Genghis Capital Limited, the Central Depository and Settlement Corporation, Pyypl Group Limited, Belrium Kenya Limited and Four Front Management.

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