Expression of Interest are invited for Design of an Open Finance Framework for Kenya CGAP Open Finance in Kenya The primary objective of this project is to support the Central Bank of Kenya (CBK) in the design of an open finance framework for Kenya. The objective of the diagnostic study is to assess the preparedness of Kenyas financial sector, regulatory and policy environment, and other necessary elements for the implementation of open banking/open finance. The study will provide a comprehensive analysis of the countrys financial ecosystem, develop an implementation roadmap, and provide specific recommendations on the design of a robust framework for open banking/open finance tailored to Kenyas unique environment and the policy objectives of the CBK. As a secondary objective, the vendor will support CGAPs objectives of public knowledge generation by leveraging the work done to inform the development of a guide on how to apply the Key Considerations for Open Finance recently published by CGAP, the BIS, IMF, UNSGSA and World Bank. 1) the Diagnostic Study is Expected to Cover: A) Policy Objectives Define the Key Policy Objectives for Open Banking/Open Finance in Kenya and the Barriers in the Current Financial Ecosystem Open Finance will Address. Determine the Enabling Elements Needed for Open Banking/Open Finance to Achieve Key Policy Objectives, including Parallel Initiatives Which could Strengthen the Impact of Open Banking/ Open Finance (e.g. The Fast-Payment System) Explore Opportunities and High-Potential Use Cases in Banking, Payments, Credit, Investments, Insurance, and Pensions to Support These Objectives. Identify the Financial Service Providers Needed to Participate in Open Banking/Open Finance in Order to Achieve the Desired Objectives, Assess Their Readiness and Willingness to Open Banking/Open Finance, and Any Challenges Associated with Their Participation. B) Legal and Regulatory Review Evaluate Existing Laws and Regulations to Determine if Cbk has the Necessary Mandate and Powers to Lead Open Banking/Open Finance Implementation. Identify Complementary Laws and Regulations outside of CbkS Mandate Which could Support Open Banking/Open Finance Implementation, and the Relevant Authorities to Engage. Identify and Recommend Changes to the Regulatory Framework Required to Accommodate the Needs of an Open Banking/Open Finance Framework. Examine and Identify Any Existing Initiatives in the Eac Region on Open Banking/Finance. C) Technical Capacity and Infrastructure Assess the Technical Capacity of the Financial Ecosystem for Secure and Scalable Api-Based Data Sharing, Identifying Gaps in Current Practices, Infrastructure, and Capabilities. Identify and Assess Any Open Banking/Open Finance Initiatives Undertaken or Ongoing by the Key Stakeholders. Identify the Technical Standard and Technical Architecture Kenya should Adopt, Based on Global Practices and Local Market Context. Determine the Roles the Public and Private Sector will Take in Developing the EcosystemS Apis. Review the Adequacy of Digital Public Infrastructure to Support Open Banking/Open Finance and Propose Required Changes. Analyze Successful Global Implementations to Extract Relevant Lessons and Adaptable Models for Kenya. D) Governance and Stakeholder Collaboration Determine the Governance Arrangements Needed to Support the Objectives of Open Banking/Open Finance in Kenya. Propose a Governance Model for Open Banking/Open Finance, with Defined Rules of Participation, Roles and Activities for Regulators and Industry Players, as Well as Decision-Making and Oversight Processes Outline Strategies for Cbk to Foster Collaboration among Stakeholders to Ensure Effective Implementation of Open Banking/Open Finance Governance. Develop Draft Policies and Rules for Open Banking/Open Finance in Key Areas of Governance, including, but not Limited to: Data Types and Formats, Quality and Access Standards, Accreditation and Liability Frameworks, Reciprocity, Pricing and Monetization, and Dispute Resolution. E) Oversight and Supervision Assess the Current Mandate, Enforcement Powers, Capabilities and Resources of Cbk and Other Authorities to Supervise Ecosystem Participants Effectively. Identify Risks and Challenges Associated with Open Banking/Open Finance and Propose Mitigation Strategies. Recommend an Oversight and Supervision Framework for Open Banking/Open Finance, including Areas for Oversight and Responsibilities for Oversight of Different Authorities, as Well as Appropriate Regtech Tools for Effective Supervision of Participants in the Open Banking/Open Finance Ecosystem. F) Consumer Protection and Data Protection Review Data Privacy and Protection and Consumer Protection Regulations and Determine Any Modifications, Expansions, or Further Guidance Needed to Align Existing Frameworks and Regulations to Open Banking/Open Finance. Propose Strategies to Generate Customer Awareness and Trust to Support Adoption of the Open Banking/Open Finance Ecosystem, with Particular Consideration for the Participation of Vulnerable Segments. G) Implementation Roadmap Develop a Phased Implementation Plan for Open Banking/Open Finance, Detailing Key Requirements, Technical Needs, and Short-Term, Medium-Term, and Long-Term Milestones. 2) the General Guide on How to Apply the Key Considerations for Open Finance should Cover the 10 Key Elements Presented in the Report: Objectives, Process Leadership, Governance, Regulation, Oversight and Supervision, Consumer and Data Protection, Consumer Information and Awareness, Participation, Technical Infrastructure and Architecture, and Pricing. The Guide will Complement the Report by Offering Practical Recommendations and Examples for Countries Looking to Apply the Key Considerations. The Vendor is Expected to Produce a Draft and would not be Responsible for the Copy-Editing or Design of the Guide. Tender Link : https://wbgeprocure-rfxnow.worldbank.org/rfxnow/public/advertisement/5007/view.html
