HKMA's Fintech Supervisory Sandbox: Pilot Conditions for Banks and Tech Firms
Learn about HKMA's Fintech Supervisory Sandbox and how banks and tech firms can conduct pilot trials of fintech initiatives.
Overview of the Fintech Supervisory Sandbox
The Fintech Supervisory Sandbox (FSS), launched by the Hong Kong Monetary Authority (HKMA) in September 2016, allows banks and their partnering technology firms to conduct pilot trials of their fintech initiatives. These trials involve a limited number of participating customers and do not require full compliance with the HKMA’s supervisory requirements.
Eligibility and Scope
The FSS is available to fintech and other technology initiatives intended to be launched in Hong Kong by banks. It is not intended to be used as a means to bypass applicable supervisory requirements. The HKMA has not laid down an exhaustive list of the supervisory requirements that may potentially be relaxed within the FSS environment.
FSS 3.0 and Research & Development Support
In addition to the pilot trial function offered by FSS 2.0, FSS 3.0 facilitates eligible trial projects of research and development (R&D) to apply for a maximum of HK$1 million funding support under the Innovation and Technology Commission (ITC)‘s Public Sector Trial Scheme (PSTS).
Pilot Project Sponsorship
Qualifying FSS 3.1 pilot projects must have a bank in Hong Kong as a project sponsor.