Bank of Tanzania to open applications for FinTech regulatory sandbox next month
What you need to know:
- The Sandbox operates under the Bank of Tanzania (Fintech Regulatory Sandbox) Regulations, 2024, which seek to create a controlled environment where new financial products and services can be tested before being fully regulated.
Dar es Salaam. The Bank of Tanzania (BoT) has announced the opening of its financial technology (FinTech) Regulatory Sandbox applications beginning next month in efforts to promote technologies and innovations in the financial sector.
According to a statement issued by the central bank recently, the first application window for 2025 will be open from January 2 to 22.
“Interested FinTech companies and financial service providers are required to apply via the bank’s Fintech Regulatory Sandbox application portal in conformity with the regulations,” the bank said in a statement signed by deputy governor for financial stability and deepening.
“We look forward to receiving applications, which shall be evaluated based on the requirements of the regulations,” the statement added.
The Sandbox operates under the Bank of Tanzania (Fintech Regulatory Sandbox) Regulations, 2024, which seek to create a controlled environment where new financial products and services can be tested before being fully regulated.
“The Bank of Tanzania promotes financial technologies (FinTechs) and innovations for inclusive and efficient provision of financial services and products through creating an enabling regulatory environment,” the bank stated.
“The Sandbox provides a test-and-learn approach for financial solutions not yet fully covered by existing regulatory frameworks.”
Eligible entities, including financial institutions, mobile money operators and fintech companies, are required to apply through the bank’s online portal (https://frsp.bot.go.tz/).
Applications will be assessed based on the requirements set forth in the regulations, and successful applicants will be notified within 30 working days after the application window closes.
The introduction of the Sandbox aligns with global trends where central banks and regulators are adapting to the rapidly evolving financial technology landscape by fostering a balance between innovation and consumer protection.
The Fintech regulations mandate participants to adhere to the Personal Data Protection Act No. 11 of 2022 when collecting data during or after testing a financial solution.
The mandate ensures that sensitive information, including customer data, is safeguarded throughout the testing process and beyond, even after approval has been withdrawn.
Additionally, applicants must register their intellectual property rights with the appropriate authorities, and the BoT is not liable for claims made by third parties against the applicant/Fintech Regulatory Sandbox participant.
