Regulation Experimentation: Innovation Sandboxes

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Regulation Experimentation: Innovation Sandboxes

Advisor
Posted February 21, 2019 in Business Technology & Digital Transformation Strategies


Fintech firms are bringing to market a variety of technologies to introduce new products and compete with existing firms. However, the financial markets have a long history of regulation, meant to protect depositors and stakeholders and maintain the safety and soundness of the financial system. The industry must begin by creating an experimental space (a small market), where technology and its related products can be introduced. This is known as a “sandbox.”