The continuing collaboration with industry players and other financial regulators represents a “whole-of-government approach”, ensuring policy consistency and minimizing, if not fully preventing, regulatory arbitrage. With this in mind, the BSP openly engages with fintech players and innovators through a flexible “test and learn” environment or the “regulatory sandbox” that enables us to fully understand emerging business models while assessing attendant risks.
I will not dwell on specifics but generally, the framework consists of five important steps commencing from the enabling stance adopted by the BSP during initial engagement with the applicant, guided and clear rules for implementation, until continuing monitoring of matured services.