Editorial & Advertiser Disclosure Global Banking And Finance Review is an independent publisher which offers News, information, Analysis, Opinion, Press Releases, Reviews, Research reports covering various economies, industries, products, services and companies. The content available on globalbankingandfinance.com is sourced by a mixture of different methods which is not limited to content produced and supplied by various staff writers, journalists, freelancers, individuals, organizations, companies, PR agencies Sponsored Posts etc. The information available on this website is purely for educational and informational purposes only. We cannot guarantee the accuracy or applicability of any of the information provided at globalbankingandfinance.com with respect to your individual or personal circumstances. Please seek professional advice from a qualified professional before making any financial decisions. Globalbankingandfinance.com also links to various third party websites and we cannot guarantee the accuracy or applicability of the information provided by third party websites. Links from various articles on our site to third party websites are a mixture of non-sponsored links and sponsored links. Only a very small fraction of the links which point to external websites are affiliate links. Some of the links which you may click on our website may link to various products and services from our partners who may compensate us if you buy a service or product or fill a form or install an app. This will not incur additional cost to you. A very few articles on our website are sponsored posts or paid advertorials. These are marked as sponsored posts at the bottom of each post. For avoidance of any doubts and to make it easier for you to differentiate sponsored or non-sponsored articles or links, you may consider all articles on our site or all links to external websites as sponsored . Please note that some of the services or products which we talk about carry a high level of risk and may not be suitable for everyone. These may be complex services or products and we request the readers to consider this purely from an educational standpoint. The information provided on this website is general in nature. Global Banking & Finance Review expressly disclaims any liability without any limitation which may arise directly or indirectly from the use of such information.

CENTRAL BANK OF BAHRAIN ANNOUNCES LANDMARK REGULATORY SANDBOX FOR FINTECH STARTUPS

The Central Bank of Bahrain (CBB) has announced new regulations to create a regulatory sandbox that will allow startups and fintech firms to test and experiment their banking ideas and solutions. The creation of the regulatory sandbox provides an opportunity for fintech businesses around the world to expand and thrive in the Gulf and strengthens Bahrain’s position as a fintech and financial services hub in the GCC.

The framework provides a virtual space for companies to test their technology-based innovative solutions, and is open to existing CBB licensees and other local and foreign firms. The testing duration is nine months, with a maximum extension of three months.

In order to be eligible, solutions need to demonstrate innovation, customer benefit, technical testing, and an intention to be deployed in Bahrain after the sandbox period ends.

The CBB recently issued the Regulatory Sandbox Framework directive, which includes the eligibility criteria, filing requirements and timeline for the process. This may be found on Bahrain Startup website (www.startup.bh) and CBB’s website on the following link: http://www.cbb.gov.bh/page-p-regulatory_sandbox_en.htm.

This is in line with the Kingdom’s efforts to further develop the ecosystem in place to encourage growth in the FinTech industry. Most recently, the Bahrain Economic Development Board (EDB) announced a partnership with FinTech incubator and ecosystem builder Singapore Fintech Consortium and asset management and advisory firm Trucial Investment Partners to develop a FinTech (financial technology) ecosystem and regulatory framework for the Kingdom. The agreement includes support in developing the related commercial and legal infrastructure required to initiate, nurture and sustain Bahrain’s FinTech ecosystem. It will pave the way for increased interaction between fintech firms in the Middle East via Bahrain and those in ASEAN via Singapore and will facilitate the entry of Singaporean FinTech companies into the Kingdom.

H.E.Rasheed Mohammed Al Maraj, Governor of the CBB, said: “These new initiatives are a continuation of the CBB’s efforts to provide the right mix of policies and products to develop and enhance the quality and competitiveness of services in the financial sector. We are living in an era of unprecedented changes mainly brought about by technological advancement, where we are witnessing how technology is defining financial services and CBB remains at the forefront of these developments to enable the industry to advance similarly.”

H.E. Khalid Al Rumaihi, Chief Executive of the EDB, said: “The launch of the regulatory sandbox is an initiative that follows on the directives of HRH the Crown Prince to prioritise innovation that supports sustainable high value job creation in the Kingdom. In order to grow the fintech industry, we know we need to create an ecosystem in which entrepreneurs can innovate and test their ideas – and the introduction of Sandbox regulations is one of the key steps towards ensuring that environment. Bahrain has always been an attractive proposition for fintech – particularly due to our unique offering in areas such as Islamic finance and payments, and we are looking forward to welcoming more local, regional, and international fintech firms.”

“The regulatory sandbox will enable industry players to apply innovative Fintech products while maintaining the overall safety and soundness of the financial system; We are pleased with the introduction of this regulation, which sets a very forward-looking policy that adapts with the times,” said Mr. Khalid Hamad, Executive Director of Banking Supervision.

Bahrain provided greater opportunities for fintech businesses in 2014, when the CBB initiated two new license types – payment services and card processing services – marking the entry of non-banking companies into banking services. To date Bahrain has issued 14 licenses for these two activities.

StartUpBahrain_Infographic June2017