New Central Bank ‘sandbox’ runs risk of dampening innovation in fintech sector
Regulatory scheme not suitable for all firms in fintech industry in its current form, one Deloitte partner has warned
The Central Bank’s recently-established regulatory “sandbox” will have to move away from its current application method so as not to diminish innovation in the fintech sector, one Deloitte partner has warned.
Sean Smith, who works in risk and regulation at the professional services firm, welcomes steps taken by the bank to foster communicators between regulators and start-ups, but said that the current operation is not suitable for all firms in the fintech sector.
On Sunday, Derville Rowland, deputy governor at the Central Bank, told the Business Post that the bank’s new sandbox - announced by - last week will allow companies to work in “clusters” to better understand how to gain financial authorisation.
