Regulatory sandbox - cohort 5

29 businesses have been accepted into cohort 5 of the regulatory sandbox to test innovative products, services, business models and delivery mechanisms.

We received 99 applications to cohort 5 of the regulatory sandbox – the largest number of applications we have received to date. Applications came from firms operating in the UK and overseas. The majority of applications came from firms looking to operate in the wholesale and retail banking sectors.

Examples of propositions that have been accepted include digital identity solutions, platforms which tokenise issuance of financial instruments, and services aimed at facilitating greater access to financial services for vulnerable consumers.

Tests will be conducted on a short-term and small-scale basis. We work closely with each firm to agree testing parameters and build in appropriate consumer safeguards.

Firms that have been accepted to develop towards testing are listed below.

Cohort 5 firms

Description

Barclays

A tool that profiles investor motivations and preferences around the social and environmental impact of their investments and portfolio.

A companion bank account for retail customers which aims to encourage users to take an active role in improving their financial wellbeing, by being more in control of their discretionary spend. The account uses data and behavioural techniques to encourage users to set goals, monitor spending and increase their savings.

British Heart Foundation

A travel insurance product with a bespoke medical screening process for consumers living with cardiovascular disease.

Currensea     A debit card that lets consumers pay from their existing bank account at low rates when travelling abroad.

Digital Wealth Solutions

A digital platform for financial advice firms to support the provision of regulated advice and an ongoing service to clients. The platform complements the traditional face-to-face approach and aims to improve adviser production, moderate the cost of providing advice and increase access to advice.

Diro Labs

An identity verification service that can verify any person or document online directly from the original source. The solution provides provable, auditable and reportable evidence of Know Your Customer (KYC) and due-diligence in a shareable format through a central blockchain-based store of information.

Fintech Delivery Panel Partners

A test that is looking to show that consumers can take control over their digital identities and ‘port’ previously verified digital identities across different companies that rely on them to satisfy their customer due diligence and KYC obligations related to identity verification.

 Deloitte, Evernym, Onfido

  • Decentralised digital identity platform, a machine learning enabled identity verification service, and a KYC solution to dynamically assess customer risk, configured to a Financial Service provider’s risk appetite.

 uPort, Onfido

  • Decentralised digital identity platform using machine learning identity verification and blockchain-based key management with the aim of significantly reducing identity-related transaction costs.

 Signicat, Onfido

  • Federated digital identity platform using machine learning based identity verification.

Fractal

A platform that facilitates SME financing and securitisation of SME debt, by digitising credit applications and connecting loan issuances to the underlying financial data, using distributed ledger technology (DLT) and artificial intelligence technology.

Funds4Talents

A flexible, income-based student loan designed to make higher education more accessible. Funds4Talents uses machine learning to assess the borrower’s previous academic performance and historical university alumni data to carry out credit risk assessments and predict future income potential.

Jammtoday

An online comparison tool of robo- and passive advice providers which allows users to input preferred investment objectives and needs to filter these providers to those meeting the input criteria. Jammtoday provides links to the provider’s website allowing users to complete their investment journey directly with their chosen provider.

Karma

An interest-free salary-advance and cash flow management product utilising DLT that enables consumers to spend a portion of their salary every month at a range of different merchants.

L&C Mortgages Limited

A platform that allows a customer to interact, select and transact their mortgage end-to-end online.

London Stock Exchange Group

A test that will integrate DLT within LSEG-operated listing and trading venues to test market infrastructure for the issuance, admission and trading of equity securities, evidencing the change of beneficial ownership. LSEG has invited Nivaura and select market practitioners along the value chain to participate as part of this test.

Monergie

A financial wellness platform provided by employers as a benefit to their employees. The initial services include a salary advance model enabling individuals to access their accrued earnings anytime through the month, without changes to their employer's payroll cycle.

Moneyline & Aviva

A home contents insurance product for low-income customers that can be arranged at the same time as taking out a loan. The aim is to provide continuous insurance cover for customers that may need to take a break from making payments and to increase cover amongst customers that are traditionally under-insured and lacking in financial resilience.

Muinmos

A RegTech solution which uses artificial intelligence to help firms categorise and validate regulatory compatibility of a range of financial products and services on a national and cross border basis.

Nuggets

An e-commerce payments and verified digital identity platform. It will test the storage of personal and payment data securely with blockchain, and the use of this data to access financial services products.

Open Banking Implementation Entity

A payment method enabling consumers to securely and conveniently make multiple payments of varying amounts based on rules and parameters the consumer establishes.

Paypoint & LINK

An alternative to an ATM, over the LINK network, that enables consumers to make balance enquiries or to withdraw specific amounts of cash over the counter through payment terminals in local shops.

Post Office

An app which builds on the development of digital identities for the GOV.UK Verify service, allowing users to create a single digital identity to give them access to both government services and financial services products. The test will aim to show that it gives institutions a high degree of assurance that new customers are who they say they are, and that it removes the burden for users to provide evidence of identity each time they want to access a new product or service.

ProxyAddress

A service which will enable homeless individuals to open a basic bank account by providing them with a proxy 'fixed address' for use in the on-boarding process. The aim is to enable customers at risk of financial exclusion to maintain access to a safe repository of funds, and an ability to receive wage payments which can support their transition out of homelessness.

Quo Money

An app-based service that aims to promote money management skills among vulnerable consumers. It uses Open Banking to generate a personalised financial plan and prompts the consumer to adhere to it.

Renso A DLT-based real estate investment management platform.

Shrap

A mobile app removing the need for physical coins and facilitating free, anonymous electronic micro payments.

Standard Chartered Bank

An application that uses tokenisation to facilitate the issuance of retail bank deposits that are backed by FSCS protected fiat funds. The aim is to enable consumers to receive economic benefits from longer-tenor deposits while maintaining flexible and easy access to their deposited money.

Statys

A technology solution that uses artificial intelligence to reduce costs and increase efficiencies in the credit scoring and risk assessment process for SME lending.

Torca

A platform that uses DLT to streamline the capital raising process, providing a one-stop-shop for issuing securities, including onboarding, raise-management and token issuing services. The platform aims to increase transparency and speed of execution for both security issuers and investors.

untied

A platform that uses bank data to automate the preparation and submission of tax returns.

Zilch Technology Limited

An accessible way to pay for everyday lifestyle purchases over time. With Zilch, customers will be able to partially pay for purchases at any MasterCard merchant, repaying the remainder over 6 weeks in equal, interest-free instalments.