The Government approves the 'sandbox' to regulate innovations in the banking sector

The Government approves the 'sandbox' to regulate innovations in the banking sector

This system of tests with voluntary clients will be a controlled space for the 'fintech' to carry out their technological changes under official supervision

As announced by the Minister of Economy , Nadia Calviño, in his last appearance in the Congress Committee, the Government approved this Friday in the Council of Ministers the implementation of the 'sandbox' to regulate the innovations of the financial sector. It is a test bench with a controlled space for the 'fintech' to make their technological changes under supervision.

The aim of the draft law on digital transformation of the financial system is to ensure that financial authorities have "optimal instruments" to continue fulfilling their supervisory and regulatory functions in the new digital context . The Ministry of Economy has valued in a press release the need to implement "more efficient financial services" and a greater recruitment of talent in a "highly competitive" international environment.

The creation of the 'sandbox' seeks to "guarantee" banks the appropriate instruments "so that digitization will give good results" , explained the government spokesperson, Isabel Celaá, during the press conference following the Council of Ministers. The system will be coordinated by the General Secretariat of the Treasury in collaboration with the Bank of Spain, the National Securities Market Commission (CNMV) and the General Directorate of Insurance.

The tests will be carried out with voluntary clients and in a closed environment and innovative projects with a certain level of development will be admitted that are beneficial for the users, improve the application of the standards, increase the efficiency of the entities or the markets or improve the activity of supervision.

According to the calculations of the Spanish Association of Fintech and Insurtech (Aefi), the creation of the 'sandbox' will generate 5,000 more jobs in the next two years and will attract an additional 1 billion of investment.