20 Fintech Innovations Ready for Market Under NRB Digital Finance Innovation Hub

Twenty out of 50 innovations enrolled in Nepal Rastra Bank’s Digital Finance Innovation Hub have reached a stage where they are ready for market deployment, according to an impact report released by the central bank’s Payment Systems Department.

The report shows that 40 percent of the innovations participating in the hub are ready for commercial use, indicating growing maturity among fintech solutions being developed for Nepal’s banking and payment ecosystem.

Of the 50 innovations, eight remain at the conceptual stage, while seven are ready for pilot testing. Another seven are under development, and four have reached the prototype stage. Three innovations are planned for further advancement in the near future, while one is currently being tested with a closed user group.

Unlicensed fintech companies account for the largest share of participants in the Digital Finance Innovation Hub. The report shows that 30 of the 50 participants are unlicensed fintech firms.

The hub also includes eight licensed Payment System Operators (PSOs), four licensed banks and financial institutions, and three Payment Service Providers (PSPs). In addition, three individual innovators, one remittance company, and one partnership between a bank and a payment service provider are participating in the hub.

Payment-related solutions represent the largest category of innovations registered with the hub, with 12 proposals. Digital lending follows with 11 innovations, while seven innovations are focused on credit scoring.

Similarly, the hub includes five embedded finance solutions, four open banking and open finance innovations, and four innovations classified under other areas. There are also three regulatory technology (RegTech) solutions, two digital onboarding innovations, one digital identity solution, and one technology-based solution supporting digital financial services.

The “other” category includes concepts related to wealthtech, advertising platforms, and business marketplaces.

The hub has so far provided regulatory clarity on 14 issues, according to the report.

Its secretariat has conducted 20 preliminary interactions with innovators, while nine proposals are currently under review. Non-binding regulatory guidance has been provided to three innovations, while three policy recommendations have been forwarded to the relevant departments.

Formal proposals from three additional groups are still awaited.

Nepal Rastra Bank established the Digital Finance Innovation Hub to facilitate the development of technology-based financial services in the banking and payment sectors.

The hub provides innovators with information on existing laws and regulatory provisions, offers non-binding guidance, and provides feedback to relevant NRB departments to support future policy and regulatory improvements.