The Financial Conduct Authority (FCA) And the City Corporation have announced a strategic partnership to develop and launch a digital testing environment for innovative firms tackling the pandemic.
Through the sandbox, firms will be able to access high-quality data sets empowering them to test and validate technology solutions.
In its pilot stage, the digital sandbox will support large financial institutions and startups looking to play a key role in the recovery from coronavirus through supplying relevant data sets and expertise in the areas of detecting and preventing fraud and scams, supporting vulnerable customers, and improving access to finance for SMEs financially affected by the pandemic.
“Innovation is a powerful driver of effective competition and can help to accelerate the development of new solutions to emerging challenges,” said Christopher Woolard, interim chief executive of the FCA.
“Building on our existing work supporting innovation in the market, we are now helping to establish a platform to tackle the challenges that will face the financial services sector in the recovery from Covid-19. We look forward to working with the City of London on this important initiative.”
City of London Corporation policy chair Catherine McGuinness added, “The UK has long been a world leader in FinTech, fuelled by our innovative spirit, our creative energy, and our regulatory approach. That has borne fruit during this difficult period, during which we’ve seen accelerated demand for digitisation.
“As we look towards recovery, it’s therefore vital that we continue to support innovation, and this digital testing environment provides us with the opportunity to do just that.
“The City of London Corporation is committed to working alongside the FCA to build the digital sandbox and ensuring that the financial services sector fulfils its potential as a vital part of our future economic success.”
Copyright © 2018 RegTech Analyst
