The central bank of the Dominican Republic and the Superintendencies of Banks, the Stock Market, Pensions and Insurance, today announced the launch of the first Financial Innovation Hub of the Dominican Republic, whose objective is to provide support, dialogue and consultation to those interested -regulated or not- in the development of technological innovations for the financial sector.
The Hub will facilitate the development of financial and technological innovations, harmonizing them with the objectives of financial inclusion, market efficiency, consumer protection and financial stability. Likewise, it will provide personalized assistance and information on the regulatory and supervisory framework of the banking, payment, insurance, pension and stock market systems.
The act of signing the inter-institutional agreement was attended by the representative in the Dominican Republic of the Inter-American Development Bank (IDB), Katharina Falkner Olmedo, who highlighted that “history is being made with this unprecedented collaboration between the regulatory institutions of the financial sector”.
He also pointed out that this agreement will make it possible to bring the fintech and the big tech towards the regulatory entities, in search of paths that enable innovation in the financial system. This Hub, he added, will offer financing opportunities to micro, small and medium enterprises in the sector, in addition to the mobilization of resources.
On his side, the governor of the central bank from the Dominican Republic, Héctor Valdez Albizu, explained that “innovation hubs are a very useful platform for the exchange of information and experiences, which serves both the regulator and the regulated and new players in the financial ecosystem, to jointly promote innovative ventures for the benefit of the population, and that at the same time support financial inclusion and equitable access to financial services”.
“Many innovations require cross-regulation or have applications that go beyond the scope of action of a single regulator or supervisor, so it is logical that we join forces instead of doubling or tripling them. Thus, we all gain in efficiency and a unified and harmonious image is projected towards the rest of the world”, he indicated.
For his part, the Superintendent of Banks, Alejandro Fernández W., stated: “The financial system is no stranger to the benefits provided by digital innovation, which is why we have defined it as one of the pillars of our management. Among the functions of the regulator is also listening, approaching, recognizing reality and understanding it in order to create public policies that respond to the market and the needs of users”.
Meanwhile, the superintendent of the Stock Market, Gabriel Castro, congratulated all the institutions that have participated in the project, which places the Dominican Republic as a leading country in the region for its financial innovation.
Meanwhile, the Superintendent of Insurance, Josefa Castillo, highlighted “the importance of the interconnection of regulatory entities, especially with regard to the changes in the new times, which demand digitization, integration and sharing of information, so this agreement It is a success and a great opportunity”.
The implementation project received technical assistance from the Inter-American Development Bank (IDB), within the framework of the Fintech LAC Regional Public Good, as well as the work of experts from the technology, legal and operations areas of the central bank and the superintendencies of the financial sector. This initiative is part of the national digital agenda launched by the government.
In the act of launching and putting into operation, the inter-institutional collaboration agreement for the Hub was signed by the governor of the central bank, Hector Valdez Albizu; the Superintendent of Banks, Alejandro Fernández W.; the superintendent of the Stock Market, Gabriel Castro; the Superintendent of Insurance, Josefa Castillo Rodriguez; and, on behalf of the Superintendent of Pensions, Ramón Contreras, Mr. Juan Carlos Jiménez.
Through the web portal hubifrd.gob.do Regulated and unregulated entrepreneurs who wish to develop their projects will have a dialogue and consultation channel that will promote innovative ideas, companies and services for the country’s financial system.
The governor was accompanied by Lieutenant Governor Clarissa de la Rocha de Torres and Manager Ervin Novas Bello. The event was attended by officials and technicians from the institutions involved in this initiative.
