Two firms join CBB’s regulatory sandbox
Tramonex and Now Money are expected support the development of Bahrain’s fintech investment market.
Tramonex, a London-based forex cash management solution for businesses, and Now Money, a Dubai-based account and remittance service for low-income workers in the GCC, have become the first two entrants into the Central Bank of Bahrain's (CBB) regulatory sandbox.
Designed to provide a virtual space for companies to test FinTech-based solutions, the Bahrain regulatory sandbox is open to existing CBB licensees, as well as other firms regardless if based locally or abroad.
The initiative is focused on supporting the global FinTech market, while also positioning Bahrain as a FinTech and financial services hub.
Khalid Hamad, executive director of Banking Supervision at CBB, said: "We are pleased to welcome the first two entrants into the regulatory sandbox, in the early stages of the framework's launch. This initiative highlights the CBB's continuous efforts as the Kingdom's single regulator to update and develop the FinTech ecosystem and enable industry players to create innovative and forward-looking FinTech products while maintaining the overall safety and soundness of the financial system."
NOW Money utilises mobile banking technology to provide accounts, financial inclusion and a variety of low-cost remittance options to low-income workers. Meanwhile, Tramonex utilises FinTech to offer a more streamlined and cost-effective service for processing multiple currencies and transferring funds.
H.E. Khalid Al Rumaihi, chief executive of Bahrain EDB, said: "This announcement is a testament to Bahrain's attractive investment proposition in the Gulf. Bahrain is a great testbed for innovative products in this space due to its size and easy market access to the GCC.
"The Kingdom is ready to be at the forefront of financial innovation and technology as global FinTech investment reaches $3.2bn. In addition to the development of the regulatory sandbox, we have a number of further initiatives we expect to be launched in the coming months including a venture capital fund-of-funds. We are seeing real signs of momentum in the sector and are excited by the potential it will bring."