The Monetary Authority of Singapore (MAS) has just launched its “Sandbox Express service“. This will help give financial firms a chance to test their new financial products and services in a faster manner.
This is great for Fintech firms looking to enter the Singaporean market as the new service will help them get an edge over the competition. This will also benefit investors and traders in Singapore as it allows for newer and better fin tech products to come out quickly.
MAS has opened the doors to eligible applicants to start testing within 21 days of their application. This will allow them to try out their services in the pre-defined environment of Sandbox Express quickly.
Compared to the existing fintech sandboxes right now, that is a fast turn-around rate. This is mainly because these sandboxes often need tweaking to allow for proper testing.
For applicants to normal sandboxes, there is a two-step process. First, there is the check for the suitability for the sandbox, which is done within the first 21 days. The second step will have the sandbox changed to meet proper testing requirements. This process requires three months.
Sandbox Express shortens the process by using predetermined rules. This means that testers know what they are getting into and they should be aware that the sandbox is a bit limited in scope. Sandbox Express is best for testing low-risk activities which are well-understood by the market and follow set parameters.
As for the approval, MAS says that it will judge applications on only two factors: how innovative the service is and propriety of the applicant’s key stakeholders. MAS’ other sandbox will still remain in operation, reserved for more complex business models or for testing higher risk activities.
Long Time Testing Options Available
Currently Sandbox Express will be available only to insurance brokers, remittance businesses and recognised market operators for testing. All of the sandboxes will be standardised and users will be required to submit proper disclosure while also giving regular progress reports.
Services can remain in Sandbox Express for up to nine months for proper testing. This is a big help since it will allow for long-term observation of performance and allows the MAS to see whether there are any regulatory challenges from the new service. Plus, the longer time in the sandbox can allow for changes in the service so that it would be better able to operate in the market.