Malaysia sets out fintech sandbox framework
19 October 2016 | 15790 views | 0
Malaysia is the latest country to set up a fintech regulatory sandbox in an effort to help startups experiment with new products and services in a safe environment.
The country's central bank, Bank Negara Malaysia, has put together a framework for the sandbox following a month-long consultation which saw it receive over 60 comments and suggestions from startups, banks and other stakeholders.
The sandbox will be open to firms looking to test out innovations that improve the accessibility, efficiency, security and quality of financial services. In addition, the bank wants to attract ideas that improve risk management and address gaps in investments in the Malaysian economy.
Applicants to the sandbox should be able to demonstrate that a product or service has been developed to a "functional stage" and is ready for testing. The applicant must also have a good understanding of risks during testing, with adequate resources committed to effectively manage them.
Aznan Abdul Aziz, chairman, financial technology enabler group, says: "The Framework reflects the Bank’s long standing policy in striking an optimal balance between promoting innovation whilst preserving financial stability and protecting consumer interest."