The Financial Conduct Authority is inviting fintech startups and banks to apply to join its second regulatory sandbox cohort, where innovative financial products can be tested before proceeding to authorisation. Applications for the second cohort will open on 21 November and close on 19 January 2017, with testing commencing in May. The watchdog received applications from 69 firms, 24 of whom were deemed to meet the sandbox eligibility criteria for its first round of testing, including early stage start-ups, challengers and incumbent firms. Of these, 18 have been deemed ready to proceed, with the first short-term and small-scale trials commencing shortly. Among the incumbents, HSBC will test an app developed in partnership with Pariti Technologies to help customers better manage their finances, while Lloyds banking Group is experimenting with a new approach for branch banking, aligning the physical experience with online and phone-based services. Others to make the cut, include: Christopher Woolard, executive director of strategy and competition at the FCA, says: “It has been an intense process for both firms and ourselves and we are grateful for their cooperation and hard work in getting us all to this position. We look forward to these businesses bringing new products and services to market whilst we ensure that appropriate consumer protection safeguards are in place.”
Banks and fintech start - ups are being invited to join the Financial Services Authority 's second regulatory sandbox cohort for the testing of innovative financial products . Of the 24 firms who applied , 11 of these have been deemed ready to proceed . Among those , HSBC will test an app to help customers manage their accounts , while BT is trialling a new approach to branch banking more closely aligned with online and phone - based services . Start - ups include Billon , a blockchain - based platform that facilitates the secure transfer and holding of funds ; BitX , a cross - border money transfer platform powered by blockchain , and Blink Innovation , an insurance product with an automated claims process .