Trust and integrity are the backbone of any resilient financial system and the G20 2025 TechSprint challenge calls on innovators to develop verifiable and privacy-preserving digital identity solutions, create secure credit data exchange that incorporates customer consent and propose technology solutions for fraud and cyber-risk mitigation, South African Reserve Bank (SARB) governor Lesetja Kganyago has said.

The SARB and the Bank for International Settlements (BIS) launched the challenge on May 6, with the closing date set for June 20. Details are available on the SARB's website.

The winner in each category will receive $30 000 and all shortlisted entrants will receive a stipend of about $5 000.

“We are looking for solutions to bring more people into the digital economy and enable cross-border payments and trade, particularly in the Africa Continental Free Trade Area.

“Digital identity makes it easier to know your customer and can improve identification and verification processes, which will allow consumers to open accounts and apply for loans, and access government grants and services without paperwork,” he said.

Specifically, secure and verified digital identification for consumers reduced the risks of fraud and made secure consumer data exchange seamless and the financial system safer, he noted.

Similarly, credit information sharing cross-border could help to unlock small and medium-sized enterprises' access to financial services and financing and, in a safe and trusted financial environment, would open the door to real-time credit scoring and workflow automation, Kganyago said in his video address.

“As the SARB, we are ambitious about modernising South Africa's payment system. Innovation must drive inclusion and build trust to deliver a lasting impact. We hope the challenge will help to unlock fresh thinking while building on the ideas we have seen in the previous five TechSprints.”

The challenge was for projects that drove innovation in a scalable and an open financial space for a more trusted and inclusive financial system. TechSprint exemplified the collaboration of central banks, the financial sector and innovators, said BIS GM Agustín Carstens.

“Financial technology expands access to financial services and improves inclusivity, but also introduces new challenges. The TechSprint harnesses the collected insight and creativity of the technology community to develop solutions to challenges we face.

“All three of the problem statements speak to a different aspect of trust and integrity in finances. Trust and integrity are non-negotiable for successful fast payments,” he said in his video address.

The G20 TechSprint is a collaborative effort to redefine the future of finances, and the collected challenges reinforce that solutions must be scalable, adaptable and inclusive to forge a lasting impact on global solutions.

“We want to harness the power of technology to create a financial system that will not only drive innovation but also security, privacy and trust,” Carstens said.

“Technology does not wait for us to move and is developing faster than we can anticipate. As regulators, we try to understand technology and determine its impact on services and on financial stability before creating regulations,” said SARB deputy governor Dr Mampho Modise.

Collaboration with the industry helps regulators identify regulatory gaps and develop the clarity required around the impact of technology, typically in a controlled environment.

“However, now we are facing the challenge that we must provide regulatory clarity on new products such that we do not suffocate innovation, but ensure that financial stability is maintained in the environment and that regulations help to minimise potential risks in the financial system,” she said.

Competitions, such as the TechSprint challenge, were good for regulators because they were time-bound and designed to address specific challenges. It often took too long to test ideas and their impact on the system, while TechSprints were fast-paced and presented opportunities to use technology to resolve challenges that the world faced, she added.

After their conclusion, regulators were able to use the findings and experiences to design fit-for-purpose policy and regulatory frameworks to manage key responsibilities and financial stability, Modise said.