This page provides detail on applications to our innovation pathways and regulatory sandbox, including a breakdown of applicants by sector and technology used, as well as common reasons applications are refused.
Our outcomes
Metrics
Use the dropdown menu below to view the metrics and the latest results.
What the metric values tell us
Our digital and innovation metrics (DI-M01) show our continued support for innovation in the financial sector. Firms remain highly engaged with our innovation services, with demand increasing over the past 3 years.
Applications rose by around 89% in 2025/26, with 332 applications across our core services: Regulatory Sandbox (RS), Innovation Pathways (IP) and Digital Sandbox (DS). This compares with 176 applications in 2024/25 and 146 across RS and IP in 2023/24. Applications to the Regulatory Sandbox increased significantly, rising by 173% to 142 in 2025/26 (from 52 in 2024/25 and 43 in 2023/2024). For the first time, RS applications exceeded IP (113). This may indicate that the market is maturing, with more firms ready for live testing.
We also launched the first cohort of the new Supercharged Sandbox. This allows firms to test AI solutions using enhanced data sets, NVIDIA-accelerated computing, and enterprise AI software. The Supercharged Sandbox received 132 applications and supported 23 firms.
Payments and digital assets remained the largest sector for both RS (41% of applications) and IP (33%) applications. This may reflect increased regulatory focus, wider adoption and firms seeking our support for digital asset innovation ahead of the authorisation gateway opening in September 2026.
Artificial intelligence and machine learning (AI/ML), and distributed ledger technology (DLT) and blockchain, were the most common technologies in applications. This may reflect these technologies becoming more established and firms seeking regulatory clarity for data-driven propositions.
Acceptance rates fell for RS (10% in 2025/26) and IP (20%). This reflects higher application volumes and some firms using other support routes, such as the pre-application support service, where more appropriate.
For RS, we prioritise firms that are ready to test in a live environment and can move quickly towards authorisation, including applying within 3 months. Despite higher application volumes, we supported a similar number of firms to the previous year.
For DI-M02, the most common reasons for declining applications were not meeting the ’need for support’ (59%) and ‘genuine innovation’ (58%) criteria. This may reflect changing market trends, new regulatory regimes or FCA guidance, and certain use cases becoming more established rather than genuinely innovative.