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FOREIGN EXCHANGE

More firms looking to replicate FCA sandbox successes

Euromoney speaks to some of the FX-focused companies in the third cohort of the Financial Conduct Authority’s (FCA) regulatory sandbox hoping to match the progress achieved by many of their predecessors.

The FCA’s review of the first year of its live-market test facility indicates that around 90% of the firms that completed testing in the first cohort are continuing toward a wider market launch – a figure it expects to be replicated for the second group.

The regulator revealed that one in three of the first test group significantly pivoted their business model ahead of launch in the wider market and that more than 40% received investment during or after their sandbox tests.

The above findings will doubtless be welcomed by the latest test group to enter the sandbox, which include two remittance system developers: Chynge and Solidi.

Joe-Tusin-160x186

Joe Tusin, Chynge

Chynge started out as a consumer-to-consumer money-changing app before pivoting into a regulatory compliance engine comprising artificial intelligence and machine learning to make cross-border payments safe from financial crimes, including money laundering, terrorism financing and fraud, explains CEO and founder Joe Tusin.

Migrant workers, for example, pay high fees to send money home, he observes.

“With the automation of regulatory compliance – which forms a large proportion of the fees – and digitizing money, we can drive down the price of sending money.”

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