Islamabad, September 23, 2022 (PPI-OT):The Securities and Exchange Commission of Pakistan’s Regulatory Sandbox continues to lead innovation and technological disruptions, particularly in the fintech sector. The third cohort of Regulatory Sandbox, will include business models and technology platforms for telematics-based vehicle insurance, digital-only asset management companies, banking sector ETF, livestock fund and bond fractionalization.
These business models and tech platforms will be tested in the coming 9-12 months. SECP approved eight applicants out of the applications received for testing innovative business solutions for the financial services market. Applications under the third cohort were accepted during the months of April-May 2022.
The third cohort received response from a wide range of established entities and start-ups, as well as from foreign companies, proposing innovative business models. However, preference was given to innovation in the areas of digital-only Asset Management companies, telematics-based insurance, digital platforms for private placement of debt instruments, AI based Algorithmic Trading Platform, AI and data analytics-based credit scoring and other decision making.
The approved participants shall have an initial incubation period of 2 months to align their business and technology aspects/partners. It will be followed by live testing, which can take 6 to 10 months. At the end of the testing period, applicants shall submit a comprehensive report to the SECP for sharing overall results and statistics. This process assists in bringing new and beneficial technology products for the end users to the market.
SECP believes that testing of technology-driven solutions through Regulatory Sandbox can stimulate financial and technological innovation and broaden the range of financial products. Such initiatives also supplement SECP’s vision of enhancing financial inclusion and promotion of FinTech and InsurTech sectors under its regulatory domain.
For more information, contact:
Head, Internal and External Communication
Securities and Exchange Commission of Pakistan (SECP)
NIC Building, 63 Jinnah Avenue, Islamabad
Tel: +92-51-9214005 or +92-51-9214009 (Ext. 378)
Fax: +92-51-9206459
Cell: +92-302-8552254
E-mail: shakil.chaudhary@secp.gov.pk
Website: www.secp.gov.pk
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