Fintech Supervisory Sandbox (FSS): Pilot Conditions for Banks and Tech Firms
HKMA's Fintech Supervisory Sandbox allows banks and tech partners to pilot fintech initiatives with limited customers. Learn the conditions.
Overview of the Fintech Supervisory Sandbox (FSS)
The Fintech Supervisory Sandbox (FSS), launched by the Hong Kong Monetary Authority (HKMA) in September 2016, allows banks and their partnering technology firms (tech firms) to conduct pilot trials of their fintech initiatives involving a limited number of participating customers without the need to achieve full compliance with the HKMA’s supervisory requirements.
Which Initiatives Are Eligible?
The FSS is available to fintech and other technology initiatives intended to be launched in Hong Kong by banks.
How the Sandbox Works
The sandbox provides a controlled environment for pilot trials. 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).
Conditions and Requirements
- The FSS should not 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.
- Qualifying FSS 3.1 Pilot projects must have a bank in Hong Kong as a project sponsor.
