Regulatory Sandbox: Going beyond FinTech
International regulators and authorities are testing new types of policy making because the rapid pace of globalization and digitization let novel business models and offers on the market arise that go far beyond the limits of the previous possible and thinkable.
Regulatory Sandboxes – in the broadest sense test rooms for the regulatory aspects of an innovation provided by the agency to innovative companies – are a recent innovation policy tool used in several countries all over the world.
At winnovation, we have been exploring this new innovation policy tool for some time and we know the various international models of regulatory sandboxes. They support the development of innovations with a high degree of novelty and complexity in the business location. They are an expression of a modern administrative culture in which regulators engage in close dialogue with innovators to facilitate innovation in a particular setting.
Regulatory Sandboxes were originally introduced in the financial technology sector (FinTech) in response to stricter regulations after the 2008 crisis. Now, other industries are catching up: e-health, energy, mobility, but also telecommunications are fields in which large transformations can be expected in future.
In the next few years, new sandbox topics will certainly be tested. Policy makers know that it is time to prepare the ground for tomorrow.