Regulatory sandbox - cohort 7

13 firms have been accepted into cohort 7 of the regulatory sandbox to test innovative products and services.

We received 58 applications to cohort 7 of the regulatory sandbox. Applications came from firms operating in the UK and overseas. The majority of applications for this cohort came from firms in the retail investments and retail lending sectors.

In the wider context of coronavirus (Covid-19), we were interested in seeing more innovation and testing from firms developing businesses, products or services intended to detect fraud and scams, support the financial resilience of vulnerable consumers, or improve access to finance for small and medium-sized enterprises (SMEs). Firms that have been accepted to test in the regulatory sandbox are listed below.

We also understand that innovative firms wish to trial and scale innovative products or services across multiple jurisdictions. The Global Financial Innovation Network (GFIN), chaired by the FCA with a network of 72 financial regulators and related organisations, developed a cross-border testing environment for scale-up firms. The GFIN is working with a select group of firms to agree cross-border testing plans, and 2 firms have been accepted to proceed with domestic tests in our regulatory sandbox.

We continue to seek out opportunities to support innovation in the interests of consumers. In November 2020 we launched the ‘Digital Sandbox’ pilot with the City of London, aimed at testing a suite of tools to support early stage innovation. 94 firms applied, of which 28 successfully met the eligibility criteria and participated in the digital sandbox for the 11-week pilot. The pilot demonstrated that there is significant industry demand for a digital testing environment, and the digital sandbox will be accepting applications for its second cohort later in the year around the themes of sustainability and climate change.

The regulatory sandbox is currently run on a cohort basis, with periodic application windows opened throughout the year. However, our intention is to move to ‘Always Open’ later in 2021, making the regulatory sandbox available throughout the year. In doing so we will also expand and clarify the scope of qualifying propositions to ensure we support firms and sandbox tests which will lead to tangible benefits for consumers and markets. We will make further announcements when the regulatory sandbox will be opening for new applications. 

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

 

Cohort 7 firms

Description

Bayfikr

A consumer-to-business (C2B) mobile platform empowering UK-based expatriates and immigrants to pay bill providers in their home country instantly, securely & directly using their UK bank accounts, along with traditional peer-to-peer (P2P) remittance services.

Blockpass

A digital identity (ID) software service ‘KYC Connect’ supporting businesses with their Know Your Customer (KYC) and anti-money laundering (AML) due diligence requirements when onboarding customers. Blockpass will assess the ability to reuse digital ID credentials for already onboarded customers, as well as the ability to update existing Blockpass businesses where customers update their digital ID profile during a subsequent onboarding process.

Cardeo

A mobile app to assist credit card holders to better manage their accounts and to optimise their repayments utilising Open Banking. For selected users, an offer of flexible refinancing of their existing credit card debt is made.

Chekk An e-KYC and digital ID solution that facilitates 100% remote onboarding of retail and business customers of financial institutions.

Hlthie

A digital-first health insurance product offering customisable plans to meet individual needs and wallets, and a mobile app for access to claims care anywhere.

JO1N An in-store credit broker that provides a software platform that merchants can use to allow their customers access to credit. The platform is linked to a panel of lenders which provides customers a choice of different interest-bearing credit options for purchase finance.
Kontinuous

A distributed leger technology (DLT)-enabled platform that helps SMEs continuously raise capital and efficiently manage a large pool of investors directly from their website.

Project Endeavour

Reusable digital ID solution with enhanced fraud screening capability (undertaken by Synectics Solutions) to enable existing Yoti app users (with verified digital ID) to be onboarded for an Orenda pre-paid card and account.

StarLiX

A tokenised payment platform that aims to facilitate more efficient low-cost cross-border payments by using payment institutions rather than correspondent banks and with KYC/AML compliance data of all parties involved, embedded in the transactions.

TrustElevate TrustElevate is a RegTech e-KYC service that enables the digital onboarding of child and teen bank accounts in compliance with KYC and AML requirements, by checking against authoritative data sources to verify a child’s identity and parental responsibility.
VALK and CMS VALK is operating a digital, end-to-end, DLT-based solution that integrates every stage of a fundraise or M&A deal onto one platform which connects financial institutions and investors. The platform’s DLT-based interoperability digitises and automates the securities issuance process for a streamlined, efficient and more secure execution of private offers.
Willow Money An Open Banking platform that helps consumers save money and pay off debt faster by refinancing costly credit and incentivising long-term financial wellness.
Yonder Yonder takes the hassle out of cancelling unwanted subscriptions and reduces monthly bills through a science-backed system that cancels out behavioural biases to save users money.