The National Bank is setting up a Regulatory Laboratory (Sandbox) to test innovative financial products
The regulation aims to facilitate testing and rapid introduction of innovative financial services and products created in the context of rapidly evolving financial technologies, to identify potential systemic risks in a timely manner, to ensure compliance with National Bank supervisory requirements, and to identify possible changes in regulatory requirements.
Successful use of a Regulatory Laboratory involves completing three pre-defined stages - Idea testing, Concept testing, and Test for product application in a real environment. It should be easily possible to terminate testing at each stage. After passing these three stages, if necessary, the National Bank of Georgia will consider the issue of reflecting the rules of use of new technology in the supervisory instruments.
It is noteworthy that in the context of the COVID-19 pandemic, the importance of developing alternative, remote and contactless financial technologies and setting up a Regulatory Laboratory has become even more urgent. The Regulatory Laboratory allows the financial sector to rapidly diversify service delivery channels so as not to impede access to financial services and increase the resilience and stability of the overall financial system.
The National Bank of Georgia is ready to review the applications of the organizations under its supervision regarding the use of innovative technology. The applicant may apply to the National Bank through a supervisor. Those interested in developing financial technologies can contact the Financial Innovation Office for more information. The regulation on the regulation laboratory is available at the following link.