Fintech Sandboxes: Achieving a Balance between Regulation and Innovation

Journal of Banking and Finance Law and Practice, Vol.28, No. 4, pp. 314-336, 2017

U of Melbourne Legal Studies Research Paper No. 767

26 Pages Posted: 26 Dec 2017 Last revised: 11 Mar 2018

See all articles by Lev Bromberg

Lev Bromberg

The University of Melbourne

Andrew Godwin

Melbourne Law School

Ian Ramsay

Melbourne Law School - University of Melbourne

Date Written: December 20, 2017

Abstract

The growth of Fintech, which refers to the use of technology in providing financial services, is continuing to disrupt global financial services markets. The rapidly evolving technological landscape provides challenges for financial regulators, which are already facing the need to address a broader set of regulatory objectives and policy priorities following the Global Financial Crisis (GFC). Regulatory sandboxes, which are aimed at encouraging innovation by allowing businesses to test their Fintech offerings in a ‘safe’ environment, provide an example of a shift away from traditional regulatory approaches and represent an attempt to embrace principles of proactive, dynamic and responsive regulation. This article examines key differences between the sandbox regimes that have been implemented to date, and explores the implications of sandboxes for businesses, consumers and domestic regulators.

Keywords: Fintech, regulatory sandbox, financial regulation, innovation, financial services, technology

Suggested Citation

Bromberg, Lev and Godwin, Andrew and Ramsay, Ian, Fintech Sandboxes: Achieving a Balance between Regulation and Innovation (December 20, 2017). Journal of Banking and Finance Law and Practice, Vol.28, No. 4, pp. 314-336, 2017; U of Melbourne Legal Studies Research Paper No. 767. Available at SSRN: https://ssrn.com/abstract=3090844

Lev Bromberg

The University of Melbourne ( email )

185 Pelham Street
Carlton, Victoria 3053
Australia

Andrew Godwin

Melbourne Law School ( email )

185 Pelham Street
Carlton, Victoria 3053
Australia

Ian Ramsay (Contact Author)

Melbourne Law School - University of Melbourne ( email )

University Square
185 Pelham Street, Carlton
Victoria, Victoria 3010
Australia
+61 3 8344 5332 (Phone)

HOME PAGE: http://law.unimelb.edu.au/about/staff/ian-ramsay

Register to save articles to
your library

Register

Paper statistics

Downloads
806
Abstract Views
2,192
rank
29,699
PlumX Metrics