The Securities and Exchange Commission of Pakistan (SECP) greenlights live testing for nine applicants in the Regulatory Sandbox (RSB) after the successful completion of their incubation period. These entities are pioneering innovative business models leveraging blockchain, AI, and technology-based solutions for gold and real estate fractionalization, algorithmic trading, SME lending, education finance, and crowdfunding. Over the next few months, they will provide financial services to a limited customer base.
In September 2023, the SECP initiated the incubation phase for ten applicants in the RSB, including notable entities like FINCLUDE Systems Pvt Ltd, LOOP Financial Services Ltd, and AKRU Pak Pvt. Ltd. Out of the eleven business models, nine have now progressed from the incubation phase to live testing.
Unfortunately, ‘ibanc360’ of ibox 7 Ltd. and ‘Robo-Advisory – Multi-Manager Investment Plans’ of Al-Hilal Securities Advisors Pvt Ltd. couldn’t transition successfully to live testing. However, Al-Hilal Securities Advisors Pvt. Ltd. continues testing its gold fractionalization model in the incubation phase.
The SECP’s Regulatory Sandbox, operational for four years, has received over 130 fintech applications, approving 31 business models. The shift from a cohort-based approach to an “always open” model allows continuous testing of innovative business models throughout the year. This approach aligns with the SECP’s vision to promote financial inclusion and stimulate growth in the FinTech and related sectors under its regulatory purview.
