UK regulator the Financial Conduct Authority (FCA) has revealed the first group of companies that will test out their ideas in its fintech regulatory sandbox.
The organisation announced the initial ‘cohort’ of 24 firms on the second anniversary of its Project Innovate scheme, designed to encourage novel financial technologies that work in the interests of consumers.
Established and emerging providers mingle on the list, and three market entrants in particular will trial online services with direct links to corporate finance:
Other eye-catching concepts in the group include:
Among the longstanding household names in the first cohort are Lloyds Banking Group, HSBC and Citizens Advice, who are trialling solutions related to personal financial management, debt management and in-branch customer experiences.
FCA executive director of strategy Christopher Woolard said: “The FCA’s regulatory sandbox was a first for regulators worldwide, and underlines our deep commitment to innovation and our willingness to think outside the usual regulatory parameters. We are pleased to announce the first cohort of firms.”
Getting to that stage, he added, “has been an intense process for both firms and ourselves… we are grateful for their cooperation and hard work.
“We look forward to these businesses bringing new products and services to market, while we ensure that appropriate consumer protection safeguards are in place.”
Firms can apply to be part of the second sandbox cohort from 21 November this year to 19 January 2017. The FCA is inviting applications from firms of all sizes.
The regulator says that the test design period for cohort two will take around 10 weeks, so it would expect that all accepted firms will be ready to begin testing their ideas in May 2017.