The Digital Sandbox is a testing environment that will provide businesses and innovators with support at the early stage of product development which saw more than half of the pilot scheme SME participants make positive developments in areas such as launching new products and funding.

The Sandbox will provide participants access to high-quality datasets, robust data security protection, a collaborative platform to share learnings and an observation deck to enable interested parties such as regulators to observe in-flight testing.

Industry players in sectors such as banking, investment, lending, payments, insurance, pensions and more will have access to this piece of testing equipment which will foster much needed innovation and growth within industries.

Dr Henry Balani, Global Head of Industry and Regulatory Affairs at Encompass Corporation commented: “The Digital Sandbox from the FCA represents a positive step when it comes to supporting innovation, and particularly for RegTech providers striving to deliver technology solutions that can bring significant business benefits.

"Crucially, this approach positively supports the development and testing of financial products in a safe, robust and non-market disruptive manner, where lessons can be learned. RegTech has an increasingly important role to play, with financial institutions looking to balance responding to an evolving and stringent regulatory landscape with maximising operations, which means facilitating the development of solutions that can support these institutions is vital. "

Sheeraz Saleem, Chief Technology Officer at DKK Partners, commented: “It is fantastic to see such a drive towards promoting innovation and business support in the UK as we aim to achieve global tech superpower status. Technology is evolving at an incredible pace and this is not something we should be fearful of, but instead, look to capitalising upon its benefits. SMEs are innovation drivers but many lack the support needed to grow and it is now time for their needs to be met.”

“With the support from public bodies such as the FCA, businesses across multiple sectors can look to further developing their technological offerings in areas such as foreign exchange, catapulting the UK forward in the global innovation race. Not only will this support businesses but it will make the UK an attractive destination for countries around the world who wish to enjoy the benefits technology can offer, ultimately promoting economic growth.