Fintech Supervisory Sandbox Pilot Conditions for Banks and Tech Firms
The HKMA's Fintech Supervisory Sandbox lets banks and tech firms test fintech initiatives with limited customers without full compliance, plus pilot funding track conditions.
What is the Fintech Supervisory Sandbox (FSS)?
The Hong Kong Monetary Authority launched the Fintech Supervisory Sandbox (FSS) in September 2016. It allows banks and their partnering technology firms to conduct pilot trials of their fintech initiatives. These trials can involve a limited number of participating customers without needing to fully comply with the HKMA’s supervisory requirements.
FSS 3.1 Pilot funding track
In October 2022, the HKMA worked with Hong Kong Cyberport Management Company Limited (Cyberport) to introduce FSS 3.1, a pilot funding scheme. Projects applying for FSS 3.1 must have a bank in Hong Kong acting as a project sponsor.
FAQ
Who can participate in the FSS? Banks and their partnering technology firms are eligible to conduct pilot trials under the FSS.
What does the FSS allow? It allows pilot trials of fintech initiatives with a limited number of customers, without requiring full compliance with the HKMA’s supervisory requirements.
What is needed for FSS 3.1 Pilot projects? Qualifying projects must have a bank in Hong Kong as a project sponsor.