IFGS 2023: FCA And NayaOne Create Permanent Digital Sandbox
At the Guildhall’s Innovate Finance Global Summit, FCA chief data, information, and intelligence officer Jessica Rusu discussed how regulation protects the public and industry infrastructure.
Rusu said that for the first time in the UK, the FCA is developing a permanent digital sandbox that includes synthetic data, transaction data, and market data from the payments, banking, investment, and fintech industries, totaling over 200 datasets. The sandbox will also use consumer and company data to create an open API marketplace for academics, government agencies, VCs, and charities.
The FCA digital sandbox will support more investors this summer, she noted. […] This innovation helps the FCA solve complicated regulatory issues like APP fraud, greenwashing, and scam identification. We invest in tech and innovation to improve support and regulation. Firms’ regulatory burdens and efficiencies are the FCA’s digital transformation goals.
The digital sandbox is a competitive programme that selects startups based on their financial services industry impact potential.
NayaOne will collaborate with the FCA and other industry experts to innovate financial services. NayaOne’s digital transformation platform continues to provide cutting-edge solutions to financial institutions.
CEO Karan Jain added:
“We are thrilled to have been selected for this prestigious opportunity to collaborate with the FCA on driving innovation in financial services. We believe that our digital transformation platform and synthetic data technology will be a valuable asset in helping fintech companies to develop and test their products more efficiently and effectively. We look forward to developing the relationship with the FCA and being part of any future focus areas, they have, for development within the industry.”
At IFGS 2023, Rusu discussed the FCA’s technological plans for the year. She said the FCA has increased the number of sprints since IFGS 2022, addressing issues like cost of living and sustainability.
Rusu also launched Digital Front Door, which digitises forms and simplifies data processing, to decrease regulatory load. Sandbox and Innovation Pathways applications have also been simplified.
A Global Tech Sprint has been created by the 23 regulators and 80 organisations of the Global Financial Innovation Network to help companies solve global problems in ESG, AI, and cryptocurrency.
Rusu added that the FCA has “carried out extensive work to understand AI and consider its regulatory implications, as continued chaos is quite justified.” The UK government’s newly issued AI white paper includes industry feedback describing one methodology, but coordination with multiple forums is needed to build an AI framework for financial services.
Rusu added:
“In many ways, AI sits at the core of innovation and underpins many new and transformative business models. The opportunities for AI are enormous, particularly when combined with quantum computing. But the race does require careful consideration. […] The use of synthetic data and other privacy enhancing technologies provides a useful way to perform data mining, and build advanced models whilst protecting sensitive information.”
She ended:
“Now more than ever firms need regulators to embrace innovation and lead. Yes, the data, technology and innovation teams are playing a vital role in keeping our dynamic financial service industry safe and adapted to the future of finance, ensuring the UK maintains its position as a preeminent financial centre, increasing international competitiveness and growth is about creating the right conditions for firms to innovate and invest, leading to a productiv, open economy that can compete with other economies for growth and opportunities.”
