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 tomorrow (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 three to four 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 three-month incubation programme worth R65 000. The runners up in second and third places will 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 CEO, Nomsa Motshegare.
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.
The TechSprint (Hackathon) competition is open to software developers, technology teams, and other interested parties with the capacity and capability to develop innovative tech solutions. Participants must be available during the TechSprint dates.
* Registration for the Techsprint: https://forms.gle/3oqDZu8zBDxdfNkT8
* Registration for the Showcase: https://forms.gle/P7aLnZk1Qog3bQir5
* To learn more about the NCR Onboarding TechSprint visit https://www.ncr.org.za/index.php/publications/techsprint for more information.