Regulatory Sandbox: Why participate?

In recent months, several situations have proven that society can do much more than it does with technology, innovative ideas and unprecedented functionalities. The first vestiges of a project that democratizes this perspective appeared in the United Kingdom in 2014 - when an embryonic sandbox was developed to promote and stimulate financial tools, in an unprecedented and revolutionary way. The idea of linking technology to creativity in the financial market has gained emerging popularity as we realize that it is possible to do things differently when there is a much more objective and assertive way of doing business.

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It is in accordance with this scenario that the Central Bank formulated a Regulatory Sandbox, where authorized entities will monitor the development, purpose, and functionality of projects in experimental stages. This action emerges massively from the possibility of strengthening national capillarity, as well as fostering competitiveness by making the stage flexibly accessible to technological experimentation. Therefore, it is already important to warn that there has been a considerable change in the deadline for selecting projects: The Central Bank of Brazil announced that, from September 16, 2021, the period was extended to November 26. The change came after an appeal period was granted so that projects considered inadequate could resort to a second analysis. ”But why join the Sandbox? What do I get out of it?” - this is exactly what we are going to talk about in today's post. Come with us and discover the processes, facilities, requirements and objectives that make up this project!

Why enroll your project in the Regulatory Sandbox?

Developing a project is even more difficult when it comes to the public. Every tool requires a trial period, where clients consciously volunteer, for a functionality that may still undergo changes and technical problems. This period is not always safe, since the project structure is still very fragile and may subject the company name to undesirable conflicts. It involves privacy policy, solid regulation of the draft, as well as the improvement of its details. This margin of error must always be considered as one of the most important facts in the projection of an idea. In the Sandbox, a detailed structure is able to provide the experimental environment necessary for the conscious maturation of the project and even of its creators. In the BC Regulatory Sandbox, there are regulatory bodies, which act to provide support and close monitoring during this trial period. It's a time to build and improve with internal and external perspectives, enriching the user experience and the efficiency of the experimental product! Let's look at some examples of this direction:

Map and recognize the strengths and improvement of the tool

This is where your project will gain an objective and a place in the midst of technological innovations in the financial department. In the Sandbox, it is possible to draw a macro view of your idea, in perspective with the most pertinent needs of the users: the result is a revolutionary feature that is assertively designed to meet the most recurring demands.

Space to err and get it right without compromising your company

One of the most notable privileges is the possibility of making mistakes and learning from those mistakes. Even if your draft does not comply with all legislative regulations, experimentation is valid until your product takes a marketable and legally valid form. In addition, regulatory agents form a constructive base with feedback and points that normally a solo project would not receive without further comments. It's time to test and plan for the long term, to make the launch assertive and prevent breakdowns.

Cost reduction

With the support of Sandbox regulatory agents, the construction and design of the tool naturally becomes more dynamic than the conventional ones. In this way, the time spent to implement and implement your project is much lower, and the costs fall considerably: since the idea will be developed in parallel with the Sandbox and you will be able to take advantage of all the necessary structure for experimentation.

Greater visibility of the company and the product

With the promotion, support and even prestige of having been the Sandbox project, your innovation will have the press and the credibility of being, above all, strictly supported by all the security and legislation in force.

Greater chance of business financing

Going through the processes, evaluation and regulation of regulatory agents is welcomed by investors who want to invest in innovation.

Impact of the initiative

From this perspective, the Regulatory Sandbox becomes a complete setting for large or small companies, expands the diversity of business models and underpins the pioneering spirit of innovation in Brazil. The entire selection of registered projects is drawn up by the Strategic Management Committee and the National Financial System, together with the Brazilian Payment System, act to ensure the regulation of the systems. In addition, it is another possibility that influences and paves the way for the national financial authority, since the initiative promotes and invests in a modern and secure financial market. This level of independence is favorable both for the emergence of new revolutionary ideas and for the country's economic ecosystem - that's what Sandbox invests in making the research field palpable and accessible.

Requirements

“All participants must know the specific terms in advance and accept the risks involved. We also studied the possibility of requiring interested companies to have sufficient resources to compensate for possible customer losses” - Alleges the matter of official website of the Government of Brazil, when explaining about the Sandbox conditions.

Although protected by all legislation, Sandbox participants must be aware that they are subject to possible flaws; just as beta customers themselves must be aware of this. It is necessary to make it clear to users that they will be enjoying a functionality that is still being tested and improved. It is not new that tools in the virtual field are at the mercy of several technical problems, in addition to requiring a robust margin of safety. Therefore, it is important to keep in mind that your project may not only be unprecedented, but also provide solutions that improve aspects of tools already available, such as Pix!On your page, the Government also highlighted some priority points in Sandbox cycle 1. 10 to 15 projects will be chosen, with priority given to the following aspects:

• projects that deal with solutions for the foreign exchange market;
• promotion of the capital market through synergy mechanisms with the credit market;
• credit promotion for microentrepreneurs and small businesses;
• solutions for Open Banking;
• Pix solutions;
• solutions for the rural credit market;
• solutions to increase competition in the SFN and SPB;
• financial and payment solutions with potential effects of stimulating financial inclusion;
• promotion of sustainable finance.

If the number of registrations exceeds the number of places offered, some scoring criteria will be stipulated at the time of the call, and the list of priorities above is one of those decisive methodologies. The project must also strive for reliability, integrity, security and secrecy in its transactions during a trial period, as well as to comply with the interests and massive needs of users and clients; in this way, innovation will do justice to popular convenience.

Count on us for your innovative project!

Clicksign is a pioneering electronic signature company in Brazil. Driven by creative technology, it works to bring this revolution to the different academic, corporate, and social departments. Count on us to learn more about Electronic Signature, convenience, security, and Take your trial period with us, for 14 days free!