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The Financial Markets Authority (FMA) – Te Mana Tātai Hokohoko has announced the six fintech firms who will be testing their innovative products, services or business models in the FMA’s pilot regulatory sandbox.
The successful fintech firms are:
| Fintech firm | Details on their intentions |
| ECDD Holdings Limited | ECDD Holdings Limited (part of the exchange service Easy Crypto) intends to launch a yield bearing NZD-backed stablecoin and to generate revenue from interest earned on money held on trust in interest-bearing accounts. |
| Emerge Group Limited | Emerge is a digital banking alternative offering products like debit cards, current accounts, and in-app expense tracking. Customer funds are currently held in trust with a partner bank but Emerge aims to transition to higher yielding options such as government bonds. |
| Homeshare |
Homeshare offers investors the opportunity to own a fractional share of real estate, with each property divided into 1,000 equal shares. These shares are tokenised and can be bought and sold via an online platform. |
| IndigiShare |
IndigiShare aims to improve access to capital for Māori entrepreneurs and small businesses. It seeks to offer Te Whare Manaaki (a koha loan platform), as a way to lower barriers to entry for indigenous businesses and enable community entrepreneurship. |
| Invest in Farming Co-op | IIF (Invest in Farming) is an Australian-based cooperative that connects investors to farming by digitising ownership of livestock, aquaculture, horticulture, and agriculture. It allows investors to own a share of agricultural assets, where investment returns are unlocked on the sale of the stock or crop. |
| Tandym Limited | A group investment platform enabling people to form groups and build wealth together in a social and engaging way - while removing administrative burden. |
FMA Executive Director Strategy and Design Daniel Trinder says, “We offered this pilot sandbox to spur innovation for both startups and established licensed financial institutions. We received 24 applications to be part of the sandbox and went through a thorough review process to determine which of the firms would be chosen to be part of the pilot.”
The criteria used to determine the final six was:
- genuine innovation exists that is either unique or solves an existing issue,
- likely benefit to consumers,
- the product or service does not pose high risk of causing consumer harm,
- there is a demonstrated need to be in the sandbox,
- the firm is ready and has a product to test, and
- the management team have appropriate experience and skills to execute the sandbox testing plan.
“During the pilot they can test new products and services in a controlled environment, helping them to obtain a deeper understanding of supervisory expectations,” says Daniel. “The opportunity to adjust a product or service before full commercial launch may also help reduce costs for firms.
“We see clear benefits for the FMA too. By working closely with the firms during their time in the sandbox, we expect to gain greater insights into the benefits and risks of financial innovation and new technologies. Experiences gained through such a testing phase should allow us to react faster and more effectively to any potential regulatory and supervisory problems. It should also highlight gaps around investor and customer protection, allowing development of more appropriate and timely solutions.”
The FMA is committed to supporting financial services innovation and is grateful for the constructive work and support from FintechNZ throughout the process.
Background
You can read more about the launch of our regulatory sandbox pilot on our website
