The Financial Conduct Authority (FCA) and the City of London Corporation are piloting a digital sandbox to support firms tackling challenges caused by the coronavirus pandemic.
The strategic partnership will see both organisations work together to develop and launch a digital testing environment for large financial institutions and start-ups providing expertise in the areas of detecting and preventing fraud and scams, supporting vulnerable customers, and improving access to finance for businesses financially affected by the pandemic.
“Innovation is a powerful driver of effective competition and can help to accelerate the development of new solutions to emerging challenges,” Christopher Woolard (pictured), interim chief executive of the FCA, said.
“Building on our existing work supporting innovation in the market, we are now helping to establish a platform to tackle the challenges that will face the financial services sector in the recovery from Covid-19.
“We look forward to working with the City of London on this important initiative.”
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Catherine McGuinness, City of London Corporation policy chair, said it is vital to continue supporting innovating as the UK economy recovers.
“The UK has long been a world leader in fintech, fuelled by our innovative spirit, our creative energy, and our regulatory approach,” she said.
“That has borne fruit during this difficult period, during which we’ve seen accelerated demand for digitisation.
“As we look towards recovery, it’s therefore vital that we continue to support innovation, and this digital testing environment provides us with the opportunity to do just that.
“The City of London Corporation is committed to working alongside the FCA to build the digital sandbox and ensuring that the financial services sector fulfils its potential as a vital part of our future economic success.”