Singapore’s financial regulator has launched a new initiative to provide FinTech innovators with a faster way to test their ideas. But it won’t be open to everyone.
The Monetary Authority of Singapore first made its FinTech Regulatory Sandbox operational in 2016. The new Sandbox Express aims to give people developing technology in the financial sector a quicker way to get access to the watchdog’s sandbox.
But because it shortens the approval period, the regulator stated that it is only suitable for ventures wanting to test low-risk services that are well-understood by the market and that can be easily managed with pre-defined parameters. For starters, the Monetary Authority of Singapore will be looking for insurance brokers, recognized market operators and remittance businesses. They can remain in the sandbox for nine months.
Sopnendu Mohanty, chief FinTech officer at the Monetary Authority of Singapore, said, “For innovation to take root, it is important for ideas to be tested quickly and in a safe environment. Sandbox Express aims to achieve this through appropriate disclosures and pre-defined rules. This introduction of Sandbox Express builds on the experience we have gained from running the FinTech Regulatory Sandbox and reflects our commitment to encouraging more experimentation and greater adoption of innovative technologies in the financial sector.”
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