The Financial Conduct Authority (FCA) has launched a permanent digital sandbox to support firms at the early stages of product development. It will go live 1 August 2023.
Complete with an integrated development environment, which allows experimentation while ensuring that data assets remain secure, the platform facilitates collaboration between teams, observers and mentors, and includes an observation deck for other interested parties to follow tests on a technical level.
Users will gain access to more than 200 synthetic, public or anonymised data sets and over 1000 application programme interfaces, spanning payments, transactions, social media, investment, Companies House and credit data. These tools will enable clients to test and validate technology solutions.
Two earlier pilot schemes and a number of TechSprints saw more than half of the small to medium enterprise (SME) participants make positive developments following their use of the sandbox. These included the launch of new products and the procurement of funding and partnerships.
The FCA states that the sandbox, part of a range of market-facing tools and initiatives, will help to support economic growth and the international competitiveness of the UK.
Henry Balani, global head of industry and regulatory affairs at software company Encompass Corporation, says: “[This] represents a positive step when it comes to supporting innovation, particularly for regtech providers striving to deliver technology solutions that can bring significant business benefits. Regtech has an increasingly important role to play, with financial institutions looking to balance responding to an evolving and stringent regulatory landscape with maximising operations, which means facilitating the development of solutions that can support these institutions is vital."
Sheeraz Saleem, chief technology officer at FX firm DKK Partners, comments: “It is fantastic to see such a drive towards promoting innovation and business support in the UK as we aim to achieve global technology superpower status. SMEs are innovation drivers but many lack the support needed to grow and it is now time for their needs to be met.”
“With the support from public bodies such as the FCA, businesses across multiple sectors can look to further develop their technological offerings. Not only will this support businesses but it will make the UK an attractive destination for countries around the world who wish to enjoy the benefits technology can offer, ultimately promoting economic growth.”
.jpg)