Fintech Supervisory Sandbox: Pilot Conditions for Banks and Tech Firms
Learn the Hong Kong Fintech Supervisory Sandbox (FSS) conditions for banks and tech firms to conduct pilot trials.
What Is 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. These trials involve a limited number of participating customers and do not require full compliance with the HKMA’s supervisory requirements.
Who Can Use the FSS?
The FSS is available to fintech and other technology initiatives intended to be launched in Hong Kong by banks. A bank in Hong Kong must act as the project sponsor for qualifying FSS 3.1 pilot projects.
Funding Support for R&D Projects
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).
Important Conditions and Limitations
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.