SBP completes first regulatory sandbox cohort

The State Bank of Pakistan (SBP) has completed the first cohort of its regulatory sandbox, launched in August 2025 under its Vision 2028 initiative to support innovation in digital financial services.

 

The sandbox allows financial companies and fintechs to test new digital solutions in a controlled environment under SBP’s regulatory supervision.

 

The first cohort focused on three areas: technology-based solutions for inward remittances, open banking, and remote onboarding of merchants.

 

Following a detailed review, six participants were selected to test their solutions between January and June 2026. SBP teams provided regulatory guidance and support throughout the testing period.

 

Four participants successfully demonstrated their solutions during the testing phase.

 

Taptap Send UK Limited and United Bank Limited tested technology-enabled solutions for inward remittances, while Digi Khata (SMC-Private) Limited, Swich Retail Private Limited and Neem Exponential Financial Services (Pvt) Ltd worked on open banking solutions.

 

SBP clarified that successfully completing sandbox testing does not mean the participants have received regulatory approval. Companies must obtain the required authorisation and approvals from the central bank before commercially launching the products or services tested through the sandbox.

 

The central bank said the findings and lessons from the first cohort, along with regulatory recommendations, will support the development of future regulatory frameworks for the wider financial industry.

 

SBP expects the regulatory sandbox to continue supporting banks and fintech companies in developing practical, user-focused and technology-driven financial solutions.

 

The initiative is aimed at expanding access to financial services while improving efficiency and the overall customer experience.