MAS therefore takes the view that thoughtful and purposeful use of technology to drive innovation have been and will continue to be important for the financial industry to progress. In our regulatory role, the MAS also proactively engages the industry both to understand and even to shape the technology-driven transformations in financial services. 11 Technology can bring about new or heightened risks when mis-used or abused. So while MAS is supportive of financial institutions to experiment with technology to harness potential new opportunities, or to innovate existing processes, we also require that they understand and can manage the associated risks. It is this philosophy that underpins the MAS to be among the first regulators in the world to adopt a regulatory sandbox regime. 12 MAS regulatory sandbox provides a constrained but more flexible space for players seeking to test new technology or approaches before a full launch. Such sandbox pilots are held within defined risk parameters and are time-bound. These restrictions help to limit the impact from unsuccessful applicants but equally important, they allow MAS to also understand the new model up close – how it is run, how the technology or its application is used, how the risks are managed and the value proposition to clients before mainstream use and scalability. This will also allow the MAS to calibrate our final rules that are appropriate to the new business model or start-up while addressing any level-playing field concerns.
Financial institutions in general need to offer structured financing that best suits the Zambian economic landscape. It is only through such activities that we will see further developments in the whole Zambia rather than the few areas along the line of rail. Mr. Chairman, ladies and gentlemen, we have come to Chipata not only to tell you what we expect of you but also to listen to what you expect of us. I therefore declare this meeting open and invite you to make your contributions. I thank you! 2  BIS Review 15/2008