The FCA is piloting a fintech sandbox to drive recovery from the coronavirus pandemic - Business Insider

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The FCA's new digital sandbox aims to enhance financial innovation and drive recovery from the coronavirus

Insider Intelligence publishes hundreds of insights, charts, and forecasts on the Fintech industry with the Fintech Briefing.The regulator teamed up with the City of London Corporation earlier this year, and the two are now piloting a digital sandbox to drive recovery from the coronavirus, per a . The sandbox will provide financial institutions and fintechs with a digital testing environment.

A number of fintechs have launched new services in response to the crisis — but the changing environment makes providing appropriate solutions more difficult. Funding Xchange and Experian to roll out an online service that businesses can use to determine their eligibility for loans, for instance. However, launching new solutions is difficult right now because borrowers' risk level has increased, for example, while consumers' personal finance management needs also continue to change.

The FCA has significant experience with sandboxes and has been at the forefront of their development, which will help get the new venture off the ground. It has successfully

 

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