SBP’s sandbox to foster financial innovations

The State Bank of Pakistan (SBP) has launched an initiative under its Regulatory Sandbox to promote inward remittances and foster innovation in the financial sector. The move is part of the bank’s broader Vision 2028 strategy. In a circular issued on Monday, the SBP outlined the themes for the first cohort under its Regulatory Sandbox initiative. The focus will be on three key areas: technology-enabled solutions for inward remittances, open banking, and the remote on-boarding of merchants. “The Regulatory Sandbox aims to encourage innovation within the financial sector while ensuring consumer protection and maintaining financial stability,” the SBP said in its circular. The initiative will allow applicants to test their products and associated operational models in a controlled environment. This will also help the SBP refine and upgrade the regulatory framework in response to emerging technologies.