Haim Toledano Talks about Regulatory Sandboxes
It’s known to the world that Fintech has been and is bringing a great change in the financial world, thanks to the combination of finance and technology. This combination has simplified many processes and made some financial services freely accessible that were earlier not available to some. Haim Toledano talks about how Fintech has brought a change in the world in several different ways and also about Regulatory Sandboxes.
P2P Lending and Funds Transfer
Gone are the days when you had to borrow or transfer money only through traditional banks and other financial institutions. Today, thanks to Fintech, several different platforms allow funds transfer between peers or borrowing money from peers, without having to approach a bank.
Easy Investment Opportunities
It is the advantage offered by Fintech that today an ordinary person can invest money without the need of a wealth manager or financial advisor. Because of this, investors get a great level of savings and convenience.
The ability to perform bank transactions without actually approaching the bank or another financial institution is one of the gifts of financial technology. Today all you need is a mobile device to complete your bank transactions like withdrawals, deposits or transferring funds.
“Sandbox” is one of the most common terms in the world of Fintech. The word refers to a mechanism for building regulation that keeps up with the fast speed of innovation.
The word sandbox basically refers to a small box filled with sand meant for children to play and experiment in a monitored environment. In the world of computer science, however, a sandbox is a closed testing environment meant for experimenting securely with software or web projects.
The term is also used in the digital economy field to refer to regulatory sandboxes, i.e. testing environments for new business models that are monitored by regulatory institutions or protected by current regulation.
These testing environments are particularly relevant in the Fintech world, where there is an increasing requirement to build regulatory frameworks for upcoming business models. The aim of the sandbox is to be compliant with strict financial regulations to the pace and growth of the most innovative companies, in a way that won’t oppress the Fintech sector with rules but also won’t reduce consumer protection.
The UK is one of the countries where there is a strong institutional commitment to Fintech. Plus there are almost 20 more at various developmental stages.