ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has allowed live testing of their innovative business model to 9 applicants of Regulatory Sandbox as applicants have successfully completed its incubation period.
The selected entities have been employing AI, blockchain, and other technology-based solutions for gold and real estate fractionalization, education finance, algorithmic trading, one-window SME lending, and crowdfunding. The entities will offer financial services to a limited customer base over the coming few months.
In September last year, the SECP permitted 10 applicants to enter the incubation phase of the RSB to test their distinct business models. These included including M/s LOOP Financial Services Ltd, M/s AKRU Pak Pvt. Ltd, M/s CG Global Pvt Ltd, M/s FINCLUDE Systems Pvt Ltd, M/s Xstate Technologies Pvt Ltd, M/s Reals, M/s Al-Hilal Securities Advisors Pvt Ltd, M/s Diamond Technologies (SMC Pvt) Ltd, M/s Quantree Pvt Ltd, and M/s ibox 7 Pvt Ltd. Out of the 11 business models, 9 have successfully completed the incubation phase and begun testing.
Two business models unsuccessful in transition
Two business models, namely ‘Robo-Advisory – Multi-Manager Investment Plans’ of Al-Hilal Securities Advisors Pvt Ltd. And ‘ibanc360’ of ibox 7 Ltd. could not transition successfully from the incubation phase to the live testing phase. However, the first continuing to test its gold fractionalization model in the incubation phase.
The SECP’s Regulatory Sandbox, a platform for fostering technological innovation in financial services, has been in operation for 4 years. Over 130 fintech companies have applied for testing, with thirty-one business models approved.
