FinTech Digital Sandbox Planned By Abu Dhabi Global Marketbr>
Abu Dhabi Global Market (ADGM) is planning to create a FinTech digital sandbox that will allow banks, regulators, FinTech and blockchain firms to develop and test products and solutions in a live but controlled and regulated environment.
The sandbox will be supported by regulatory standards developed by the Financial Services Regulatory Authority (FSRA) of ADGM. It will allow banks to source and procure FinTech and blockchain solutions locally and globally, run tests digitally on the platform, and adopt and orchestrate the best ones that meet their business needs. For FinTechs, the sandbox would enable them to offer their innovative solutions to international market players, and tap cross-border market access and opportunities to grow and scale their business. Sandbox participants would also be able to connect with other international markets and vice versa.
The sandbox will support and enable APIs that connect legacy systems of banks to FinTechs in a cost-effective and scalable manner, with synthetic data hosted on the cloud in a secure manner. ADGM and FSRA will develop guidance on the standards and IT security requirements for open APIs and cloud adoption in order to promote industry adoption, interoperability, financial inclusion and convergence to higher standards.
ADGM said that it will be partnering with the ASEAN Financial Innovation Network (AFIN) to leverage on the global API Exchange (APIX) platform to bring together banks and FinTech firms between the MENA region and the Asia-Pacific region onto an online digital platform enabled by open APIs.
Richard Teng, CEO of FSRA, said that the objective of the digital sandbox is to help financial institutions build deep digital capabilities to tap market opportunities, and promote financial inclusion through innovative technologies to better cater to the underserved population in the MENA region.
“Our partnership with AFIN will enable ADGM to drive and further accelerate the financial inclusion agenda, and expand access to financial services in Abu Dhabi, regionally and globally. ADGM will continue to actively engage the industry, keep abreast of regulatory developments, innovate, and introduce appropriate initiatives to enhance the FinTech ecosystem in Abu Dhabi and for the region,” Teng said.