Bank of Tanzania to open applications for FinTech regulatory sandbox next month

Dar es Salaam. The Bank of Tanzania (BoT) has announced the opening of its Financial Technology (FinTech) Regulatory Sandbox applications from next month in a bid to promote technologies and innovations in the financial sector.

According to a statement released recently by the central bank, 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 through the bank’s Fintech Regulatory Sandbox application portal in accordance with the regulations,” the bank said in a statement signed by the Deputy Governor for Stability and financial deepening.

“We look forward to receiving applications, which will be evaluated based on regulatory requirements,” the statement added.

The sandbox operates in accordance with the Bank of Tanzania Fintech Regulatory Sandbox Regulations 2024, which aim to create a controlled environment in which new financial products and services can be tested before being fully regulated.

“The Bank of Tanzania promotes financial technologies (FinTech) and innovations for inclusive and efficient delivery of financial services and products by creating an enabling regulatory environment,” the bank said.

“The sandbox provides a test and learn approach for financial solutions that are not yet fully covered by existing regulatory frameworks. »

Eligible entities, including financial institutions, mobile money operators and fintech companies, must apply through the bank’s online portal (https://frsp.bot.go.tz/).

Applications will be evaluated based on the requirements set out in the regulations, and successful applicants will be notified within 30 business days of the application window closing.

The introduction of the Sandbox aligns with global trends where central banks and regulators are adapting to the rapidly changing financial technology landscape by fostering a balance between innovation and consumer protection.

Fintech regulations require participants to adhere to the Personal Data Protection Law No. 11 of 2022 when collecting data during or after testing a financial solution.

The mandate ensures that sensitive information, including customer data, is protected throughout the testing process and beyond, even after approval is withdrawn.

Additionally, applicants must register their intellectual property rights with the relevant authorities, and BoT is not responsible for any claims filed by third parties against the applicant/Fintech Regulatory Sandbox participant.