Regulatory sandbox - cohort 4

Find out about the 29 businesses that have been accepted into cohort 4 of the regulatory sandbox to test innovative products, services, business models and delivery mechanisms.

We received 69 applications for cohort 4 of the regulatory sandbox. Applications came from a diverse range of firms operating across the financial services sector including in areas such as consumer credit, automated advice and insurance.

29 firms have been accepted to develop towards testing, including 3 firms that were accepted as part of previous cohorts but did not proceed to test. Firms that have been accepted to develop towards testing are listed below, except for one firm that has asked not to be named at this point in time.

We have accepted a number of firms that will be testing propositions relating to cryptoassets. We are keen to explore whether, in a controlled environment, consumer benefits can be delivered while effectively managing the associated risks.

Tests will be conducted on a short-term and small-scale basis and the FCA is working with each firm to agree testing parameters and build in appropriate consumer safeguards.

Cohort 4 firms

Description

BlockEx

Platform that facilitates the issuance and manages the lifecycle of regulated bonds using DLT.

Capexmove

 

Platform that uses DLT to allow small companies to raise capital in a more efficient and streamlined way.

Chasing Returns

 

Psychology-based risk platform that promotes good money management discipline and improves outcomes for customers that trade Contracts for Difference (CfDs). It acts like a digital coach, encouraging adherence to money management and risk exposure levels.

Community First Credit Union

 

Initiative to facilitate creation of an identity token that supports customers who lack traditional forms of ID, in order to assist them in accessing bank account services in the UK.

Creativity Software

 

RegTech solution that supports regulated activities in the UK to achieve more secure customer authentication via mobile phone network based geolocation services. The intention is to draw on geolocation technology to protect UK bank customers from fraud and crime.

CreditSCRIPT

 

Investment platform that gives professional and institutional investors access to a wide range of online lending markets through a single access point. Investors will be able to gain exposure to consumer, SME and real estate loans via CreditSCRIPT.

Dashly

 

Fully autonomous, ‘always-on’ mortgage advice platform that continuously tracks and compares a borrower’s existing mortgage, alerting them the moment it pays to switch.

Etherisc

 

Service that uses smart contracts on a blockchain to provide fully automated, decentralised flight delay insurance.

Fineqia

 

Blockchain-based digital platform that enables companies to issue and administer debt and equity securities, including bonds backed by cryptoassets.

Fractal

 

Insights platform using distributed ledger and artificial intelligence technology to power SME financing by digitising credit applications and connecting loan issuances to the underlying financial data.

Globacap

 

Capital raising platform for SMEs and institutional investors which facilitates the issuance process of debt and equity securities. Globacap use DLT to simplify and streamline the issuance process.

Hub85

 

Fully automated governance solution that enables financial organisations to monitor and understand how spreadsheets are used for regulated activities. The software monitors and enforces compliance rules, identifies structural file errors and quantifies enterprise risks. Analytics captured by the software can be used to identify and expedite the automation of operational tasks.

London Media Exchange

 

Platform that facilitates the buying and selling of contracts for digital advertising space. In the short term this will improve transparency for market participants, and in the long term will lead to the development of derivatives.

Meet Mia

 

Chatbot on Facebook Messenger that allows customers to buy and manage travel insurance. Policies are written in plain English and customers can ‘ask’ the chatbot what they are covered for. Group discounts and automated claims handling will also be available.

Mettle

Current account which helps small business owners make decisions, with forward looking finances, smart invoices and easy receipts.

Mortgage Kart

 

Automated advice offering to help customers pick the most suitable mortgage given their needs and circumstances.

Multiply

 

Service that combines financial modelling and machine learning to provide holistic financial plans with specific product recommendations directly to consumers.

Natwest

 

Governance model based on DLT that enables organisations to work collaboratively on developing and running decentralised applications. The model codifies society rules in smart contracts on a blockchain creating a digital mutual. NatWest will open source the code after successful testing.

NorthRow

Service that enhances KYC, client onboarding and monitoring processes using account data to support identity verification and financial suitability.

Salary Finance

 

Payroll-linked lending platform which provides consumers with access to their earned income by the day or week. By enabling employees to access their earned income more frequently, they will be better able to manage their budget, address unexpected needs or avoid ‘late payment fees’ of existing commitments.

TokenMarket

 

Funding platform that uses DLT to facilitate the issuance of shares in private companies more efficiently.

Tokencard

 

Service that connects a centralised payment card to a decentralised blockchain. Consumers hold their own assets in a decentralised smart contract wallet and top up their card through simple exchange.

Universal Tokens

 

Service that leverages blockchain technology in the distribution of insurance products to increase trust and improve user experience.

Veridu Labs

Privacy-driven KYC and AML solution backed by machine learning and network analyses to facilitate onboarding and access to business banking.

World Reserve Trust

 

Service that facilitates cheaper and faster global trade payments and settlement using the Sīlùbì, an asset-linked smart token that utilises a permissioned DLT network.

Zippen

Service that enables individuals to transfer and consolidate (hence ‘zip’) their pensions (‘zip-pen’) all in one place, delivering convenience, financial advantage or both.

1825 (part of the Standard Life group)

Automated advice proposition for consumers that are close to retirement. Plans are generated by an automated advice engine that considers how to meet the needs and aspirations of consumers using their available liquid and illiquid assets.

20|30

DLT-based platform that allows companies to raise capital in a more efficient and streamlined way. The test will be facilitated in conjunction with London Stock Exchange Group and Nivaura.

Application window for sandbox cohort 5

The application window for cohort 5 of the regulatory sandbox will open later this year.