Methodology
Disclaimer: the Global Regulatory Innovation Dashboard (GRID) does not, and is not intended to, constitute legal information. The GRID is a public data repository based on pooled data, collected, and validated to the best of the research team’s ability, through methods detailed herein. The University of Cambridge, Judge Business School, the Cambridge Centre for Alternative Finance, its affiliates, and any of the participating analysts do not accept any responsibility or liability regarding the aggregated information presented. The data provided on this website is for informative purposes only; it is recommended that all information is individually verified for the nature of its use.
Summary
The Global Regulatory Innovation Dashboard (GRID) is an online interactive resource that allows users to interact with a visual representation of regulatory innovation initiatives globally, specifically regulatory sandboxes, digital sandboxes and innovation offices.
The objective of the GRID is to offer regulators, supervisors, policymakers, industry, researchers, and the public access to actionable insights and data related to regulatory innovation initiatives. The GRID is a collaborative platform whereby users and industry participants can actively review, update, and share data.
Private sector initiatives have been excluded, even if they provide innovative initiatives that support and facilitate the fintech ecosystem, as the GRID is only focused on regulatory innovation initiatives, specifically sandboxes and innovation offices.
The first version of the public repository is based on a dataset of over 200 initiatives across more than 100 jurisdictions, employing desk-based research, data from CCAF’s research initiatives and other third party sources.
Definitions
Innovation office – a dedicated function within a regulator that engages with and provides regulatory clarification to innovative financial services providers. It acts as a dedicated help desk to fintech firms, innovators and the service providers that support them. While CCAF uses the broad term “innovation office” (and many regulators do too) they may also go by different names, such as “FinTech Office”, “FinTech Unit”, “FinTech Centre”, “Contact Point” or “Innovation Help Desk”.
Regulatory sandboxes – are formal programs that allow for the testing and/ or evaluation of financial sector innovations subject to certain safeguards and oversight.
There are different types of regulatory sandboxes, which are often not mutually exclusive, including:
Product testing sandbox ─ a type of regulatory sandbox that allows fintechs to test new and innovative products and services for a pre-defined period of time with live customers in a controlled environment with limitations imposed by the regulator. This initiative allows innovative financial services providers to obtain feedback on their product and business model from the regulator and from the market.
Policy testing sandbox ─ a type of regulatory sandbox that focuses on removing regulatory barriers to innovation and/or identifying if the existing regulatory framework is fit for purpose under current market conditions. To achieve this, policy sandboxes use the sandbox testing process to evaluate regulations and/or policies that may impede beneficial new technologies or business models.
Digital sandbox ─ provides firms at an early stage of development (e.g. at proof-of-concept stage) access to a range of data assets for testing, developing, and validating solutions in a digital environment, as opposed to a live (regulatory sandbox) environment.
There are also subtypes which may apply to the three sandbox types above:
Thematic sandbox ─ this sandbox subtype focuses on a precise theme with the objective of accelerating adoption of specific policy or innovation. For example, for regulators with a financial inclusion mandate, thematic sandboxes are a way to support inclusive financial innovation either directly or by targeting enabling technologies or services. Other typical themes include climate or ESG issues, decentralised finance, and gender.
Cross-border sandbox ─ this sandbox subtype is designed to encourage and support cross-border testing and operation of firms, seeking to enable firms to scale more rapidly on a regional or global basis. A cross-border sandbox may either link multiple sandboxes together, or provide a common testing platform for a group of regulatory authorities.
Cross-sector sandbox ─ this sandbox subtype applies to product, policy, or digital sandboxes which operate across several sectors, either within financial services (e.g. payments, insurance and securities), or across broader industries (e.g. financial services, energy, utilities, telecommunications)
Limitations
Limitations of the data collected are listed below, along with the approach adopted to address and mitigate some of these challenges:
Ambiguity between communicated information and officially recorded information: at times, the information displayed on the media did not match recorded in the official sources (e.g. regulator's website). While the research team often opted for the official version, cross-checking information from multiple distinct sources was used as a substitute when no official information was available.
Lack of information on status of inactive sandboxes: for sandboxes in particular, there are instances where the sandbox witnessed lack of activity and uptake. While some regulators might appear to have a sandbox, the sandbox might not be active or might have ceased operations.
Limited information on planned and in development initiatives: at times, planned or in development initiatives might be announced via public sources but not communicated via official sources. In these instances, the research team collected as many sources as possible to verify the information. Those initiatives are represented on GRID for the sake of completeness and will be updated if new information comes to light regarding their status.
Inactive links to initiatives: in some cases, when the regulatory authorities update their websites, the link to the initiative that is used on the GRID might be inaccessible. The research team ensured that all links are active and accessible at the time the GRID was created but cannot guarantee that those links will remain active. The CCAF team will undertake periodic reviews to update the information and links when needed, to ensure that the information remains up to date.