Sandbox environment will help fintechs tackle systemic risks
26 April 2019 8:47 AM GMT
RBI?s proposal for launching regulatory sandboxes comes as a boon to Fintechs as they?ll now be able to test new financial innovations without any regulatory risks.
- The Regulatory Sandbox proposed by the RBI is a great move to enable fintech lenders to prop up their innovation efforts and continue to employ disruptive technologies for enhanced results.
- The Sandbox environment will allow fintech companies to beta-test multiple innovation and technology initiatives with minimal capital expenditure, and within the purview of a protected dataset.
- Sandboxing is a concept that has been used across the globe to allow program systems to perform more efficiently by resolving errors and issues within a protected dataset, with a view to preventing shortcomings from spreading to larger data systems.
- The Sandbox initiative will particularly help fintech companies operating in segments such as payments and lending to test persuasive and disruptive technologies within RBI's regulatory framework.