The National Credit Regulator (NCR), in partnership with the Government of Japan and the International Finance Corporation (IFC), have come together to launch an innovative TechSprint competition (also known as the Hackathon) designed to support the digitisation and regulatory compliance of small credit providers in South Africa.
The initiative will incorporate a virtual TechSprint and subsequent Showcase event, engaging software developers and technology teams to create robust and affordable solutions for small credit providers, ultimately promoting financial inclusion for underserved borrowers.
In the virtual TechSprint (Hackathon), taking place from 16 to 20 October 2023, Tech teams will enter a hackathon to build a prototype solution addressing the issue at hand. Winners will be announced on the Demo Day scheduled for 20 October 2023. Once the winners are selected, a Solution Showcase event will take place on 24 October 2023 in which the winning tech teams will virtually present their solutions to the credit industry. Applications for the virtual TechSprint (Hackathon) event are open and Tech teams have until 19 September 2023 to enter.
Small credit providers play a crucial role in the South African financial ecosystem, serving the base of the pyramid and the last mile. However, many of these credit providers face challenges in complying with Regulation 19(13) of the National Credit Act (NCA), which prescribes how credit providers must submit credit information to a credit bureau.
The TechSprint and Showcase events aim to address these issues by leveraging technological innovation to improve the resilience and compliance of small credit providers. Participating teams will have 3-4 days to build prototype solutions, with support from experts and the project team. A demo day will follow on 20 October 2023, during which teams would present their prototypes to a panel of judges, who would select the winning team(s) based on predefined criteria. The TechSprint winners will then be supported by an incubation programme to take their solution to market and start bridging the gap for small credit providers.
First prize is R100,000 cash with a 3-month incubation programme worth R65,000. The runners up for second and third places, would receive R60,000 and R40,000, respectively.
“Through this initiative, we want to drive economic growth by providing essential financial services to those who would otherwise be excluded from the formal financial sector. Together with our partners in this project we had to find a solution to enhance credit visibility for borrowers, reduce the potential for over-indebtedness, provide more accurate data for regulatory purposes, and lower compliance burden. We can’t wait to see how these Tech teams make compliance more affordable and accessible.” said the NCR Chief Executive Officer, Nomsa Motshegare.
The TechSprint competition (also known as the Hackathon) is hosted by the Empire Partner Foundation (EPF), which has launched multiple programmes to achieve its goal in building Africa through Tech.
EPF’s mission is to drive technology to make a sustainable impact in South Africa and the African continent. It uses Technology, the Youth and Entrepreneurs to solve 10 Key Sector Challenges relating to Water, Energy, Transportation, Rural Development, Education, Unemployment, Healthcare, Housing, Agriculture and Safety and Security.
To participate, teams must demonstrate their ability to create solutions that address the following key elements:
- Resilience: Enable digital on-boarding and credit extension by small credit providers to underserved markets.
- Compliance: Ensure effective participation in information sharing, submission, and regulatory reporting.
To learn more about the NCR Onboarding TechSprint visit https://www.ncr.org.za/index.php/publications/techsprint for more information
