Innovate Finance has published a “Sandbox Consultation Finding Preview in concert with the Financial Conduct Authority (FCA). The release took place as Innovate Finance opened its Global Summit 2017. The FCA invited Innovate Finance , a public-private partnership seeking to boost Fintech innovation, to chair an industry consultation to explore the feasibility of an industry-led Sandbox for testing “off-markets financial innovation.” The UK has led the Fintech industry in part due to the support of government leaders and various agencies. The Sandbox concept was trailblazed in the UK by the FCA and is now widely copied around the world. The preview (embedded below) is quite brief but a complete report on findings on the Fintech Sandbox, including best practices, will be published in early May 2017.
Fintech Sandboxes have become an advancement in open innovation and collaboration to further develop, accelerate and promote collaboration in the Fintech ecosystem.
Highlights from the brief report include:
- Fintech Sandboxes can accelerate solution development by providing the whole of the Fintech ecosystem, including entrepreneurs, with access to resources such as data, APIs, or reference architectures.
- Complex problem solving can be improved by facilitating industry collaboration on identifying and addressing complex shared consumer, technological and regulatory challenges.
- Regulatory efficiency can be enhanced by encouraging regulators to engage as observers where industry can share knowledge early in the life cycle of solution development.
Innovate Finance says the consultation report is designed to provide the industry with a comprehensive set of high level requirements, use cases, best practices and implementation options to allow industry participants to create industry sandboxes that are t for their specific purposes.