SBP launches Regulatory Sandbox to foster innovation in fintech sector

The State Bank of Pakistan (SBP) has officially introduced the Guidelines for its Regulatory Sandbox (RSB), as part of its Vision 2028 initiative. This platform is designed to allow both new and existing entities, including startups, to test their financial solutions within a controlled regulatory framework.

The RSB will follow a cohort-based approach, focusing on innovative themes. SBP is set to invite applications for its first cohort, with the themes for this cohort expected to be announced by the end of June following market engagement.

The Sandbox will provide participants with the opportunity to test their products and operational models, using cutting-edge technologies and ideas. The platform also aims to assist SBP in enhancing and updating the regulatory environment to keep pace with the latest developments in technology.

SBP has encouraged all interested parties to leverage this platform, contributing to the growth of Pakistan’s fintech sector and digital financial ecosystem.