- Bank Negara Malaysia, the Southeast Asian nation’s central bank, announced that four companies have joined its regulatory sandbox for fintech applications.
- The roster includes two Malaysian companies, motor insurance #startup GetCover and currency exchange enabler MoneyMatch. The other two are GoBear, a Singapore-headquartered financial products comparison site, and London-based WorldRemit, which helps people send money abroad at affordable rates.
- The central bank’s Financial Technology Enabler Group will help the participating companies develop commercial solutions for the Malaysian market while making sure they comply with local laws and regulations.
Why it matters:
- As fintech matures, regulatory environments are still a major challenge. Regulatory sandboxes are protected and monitored environments where fintech startups can develop products and solutions and get them ready for the market without running afoul of laws and risking customers’ money and sensitive data.
- Malaysia announced its fintech sandbox last October after a consultation process that started in July 2016.
- The Monetary Authority of Singapore created a regulatory sandbox for fintech companies in 2016. Other markets with their own such sandbox include Australia, Hong Kong, and the UK.
Source: The Star Online.