EU guidelines on Fintech to include ‘sandbox’ design

EU guidelines on Fintech to include ‘sandbox’ design

London : The European Union’s banking watchdog said guidelines being drawn up for nurturing cross-border fintech companies will include recommendations for the core design of a “sandbox” and innovation hub. The sandbox, or controlled environment some countries offer fintech firms for testing new applications on real customers, was first launched by Britain and is regarded by the sector as having helped London become a major fintech hub.

Just two other EU countries, Denmark and the Netherlands, have sandboxes and Britain’s departure from the EU next year has put pressure on Brussels to step up efforts to encourage fintech firms to set up shop in the European Union. Elisabeth Noble, a policy expert at the European Banking Authority (EBA), said the watchdog will publish its guidelines in December. “Our report in December will include an analysis comparing the existing sandboxes and innovation hubs, and recommendations for the core design of a sandbox and innovation hub,” Noble told Reuters in a briefing.

Innovation hubs provide a forum for regulators and fintech firms to discuss ideas, while sandboxes allow them to test new products, such as making payments using a smartphone, on real customers - all without having to go through a costly and lengthy full authorization process first. “We hope this report will lead to a common and more coordinated approach, to help with cross-border scaling up of fintech firms, which needs sandboxes and innovation hubs working together,” Noble said.

The introduction at the start of this year of new EU cross-border electronic payments rules which allow startups to access a customer’s banking data to offer new services, is driving demand for more sandboxes. Felix Hufeld, head of German regulator Bafin has said he does not want to give startups “little buckets and spades” to avoid the full panoply of financial rules, but Noble said that would not be the case.




Tokyo airport tests driverless bus

Tokyo airport tests driverless bus

Visitors pouring into Japan’s Haneda airport for the Tokyo Olympics next year may find themselves ferried to and from planes on driverless buses, currently being tested at the major hub. Six Japanese firms, including national car

EU split over copyright overhaul

EU split over copyright overhaul

Divisions between EU countries could delay or derail plans to overhaul copyright law, an ambition that has set up a battle pitting media firms against internet giants like Facebook and Google. The European Parliament, the European Coun


BIC set to host Neon Run

BIC set to host Neon Run

Bahrain International Circuit (BIC) is set to host on Friday the much-anticipated BIC Neon Run, held as part of the promotional campaign for the Formula 1 Gulf Air Bahrain Grand Prix 2019. The event is scheduled to be held from 3pm to

Alaina, Hopkins end engagement

Alaina, Hopkins end engagement

Singer Lauren Alaina and partner Alex Hopkins have called it quits. The country star and her beau, who got engaged over last summer, announced they were ending their six-year relationship on their respective Instagram accounts on Monda

Misbah-ul-Haq to visit school

Misbah-ul-Haq to visit school

Misbah-ul-Haq,former Pakistani cricketer who captained the Pakistani team in all three formats of the game, is visiting the British School of Bahrain(BSB) on Thursday. He will hold cricket sessions with students at 8.15am which will be

Tokyo airport tests driverless bus

Tokyo airport tests driverless bus

Visitors pouring into Japan’s Haneda airport for the Tokyo Olympics next year may find themselves ferried to and from planes on driverless buses, currently being tested at the major hub. Six Japanese firms, including national car

EU split over copyright overhaul

EU split over copyright overhaul

Divisions between EU countries could delay or derail plans to overhaul copyright law, an ambition that has set up a battle pitting media firms against internet giants like Facebook and Google. The European Parliament, the European Coun