The State Bank of Pakistan (SBP) has concluded the first cohort of its Regulatory Sandbox, completing a controlled testing programme designed to support innovation in digital financial services. Launched in August 2025 under SBP Vision 2028, the first cohort focused on three themes: technology-enabled solutions for inward remittances, open banking, and remote onboarding of merchants. Six participants were shortlisted following the evaluation process and were invited to test their solutions between January and June 2026 under the regulatory oversight and guidance of the central bank. SBP said the exercise was intended to provide a controlled environment in which innovative financial solutions could be tested while allowing the regulator to assess their practical and regulatory implications.
Following completion of the testing period, four participants successfully demonstrated their solutions. Taptap Send UK Limited and United Bank Limited (UBL) participated under the technology-enabled inward remittances theme. Digi Khata (SMC-Private) Limited, Swich Retail Private Limited and Neem Exponential Financial Services (Pvt) Ltd successfully demonstrated solutions under the open banking theme. The cohort therefore provided SBP with practical exposure to different technology-based approaches aimed at improving financial services, particularly in areas involving digital payments, data connectivity and remittance services. Throughout the programme, SBP teams provided regulatory guidance and support to participating entities as they tested their respective solutions.
SBP has clarified that successful completion of sandbox testing does not constitute regulatory approval. The participants must obtain the required authorization and approval from the central bank before commercially launching the products or services that were tested through the sandbox. This distinction allows the regulatory sandbox to function as a testing mechanism rather than an automatic route to market authorization. The central bank’s clarification also establishes that products demonstrated during the cohort remain subject to the applicable regulatory requirements before they can be introduced commercially.
The findings and learnings generated through the first cohort are expected to contribute to the development of relevant regulatory frameworks for the wider financial industry. SBP said the regulatory recommendations emerging from the programme will support the broader industry as banks and fintech companies develop technology-enabled financial services. The central bank also expects the Regulatory Sandbox to continue facilitating the development of practical, user-centric and technology-enabled solutions, with a focus on expanding financial services outreach and improving efficiency and user experience.
The completion of the first cohort provides SBP with experience from testing solutions across inward remittances and open banking, while also offering participating fintechs and financial institutions an opportunity to evaluate their products within a controlled regulatory environment. As the sandbox programme continues, the experience and recommendations from the initial cohort can inform future regulatory approaches for emerging financial technologies. The initiative also reflects the growing role of controlled testing frameworks in enabling financial institutions and fintech companies to develop new services while allowing regulators to assess their operational and regulatory requirements before wider commercial deployment.
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