SBP Selects Six Companies for Regulatory Sandbox Live Testing

The State Bank of Pakistan (SBP) has shortlisted six firms to participate in the live testing phase of its Regulatory Sandbox initiative, reflecting growing interest in digital innovation across the country’s financial sector. The initiative has attracted applications from regulated financial institutions as well as local and international fintech companies working on a range of technology-driven solutions.

The Regulatory Sandbox will provide a controlled environment where new financial products and services can be tested under the supervision of the central bank. Its main purpose is to encourage innovation while ensuring that risks to consumers and the financial system remain well managed.

SBP Selects Six Companies for Regulatory Sandbox Live Testing

To maintain transparency and effective oversight, the SBP has set up a high-level Steering Committee to supervise the entire sandbox process. This committee will oversee testing activities, ensure compliance with regulatory requirements, and evaluate the outcomes of the pilot projects. The move highlights the central bank’s commitment to balancing innovation with financial stability.

The shortlisted applicants have been selected across three key thematic areas. Under the Open Banking theme, only three companies can participate. These include Neem, operating as Exponential Financial Services Private Limited; Digi Khata (SMC-Private) Limited; and Swich Retail Private Limited. These firms will test solutions that improve data sharing, payment services, and customer access within the financial ecosystem.

In the second theme, Remote Onboarding of Merchants, the Bank of Punjab has been selected. This project aims to explore digital methods for onboarding merchants more efficiently. It will reduce paperwork and save time. Moreover, it will improve access to formal financial services, especially for small and medium-sized businesses.

The third thematic area focuses on Technology-Enabled Solutions for Inward Remittances. Under this category, Barq Fintech (Private) Limited has been shortlisted, along with Taptap Send UK Limited in partnership with United Bank Limited. These participants will test solutions aimed at making inward remittances faster, more affordable, and more accessible for overseas Pakistanis and their families.

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According to the SBP, the shortlisted institutions will be allowed to test their proposed solutions in a live but controlled environment for a period of up to six months. Participation will be subject to specific terms and conditions that will be communicated at the time of approval. These conditions are intended to protect consumers while allowing meaningful experimentation.

The central bank expects the Regulatory Sandbox to play a key role in promoting innovation in Pakistan’s financial sector. The initiative enables real-world testing of user-focused digital solutions. This helps develop practical technologies that address gaps in financial services.

Overall, the SBP believes the sandbox approach will help modernize the financial system. It will also encourage responsible innovation and strengthen confidence in digital financial services. It will also ensure that regulatory oversight and financial stability remain firmly in place.