SBP Concludes First Regulatory Sandbox Cohort After Testing Four Fintech Solutions
State Bank of Pakistan concludes the first cohort of its Regulatory Sandbox.
The State Bank of Pakistan (SBP) has concluded the first cohort of its Regulatory Sandbox after testing innovative digital financial solutions under regulatory supervision.
The initiative launched in August 2025 under SBP Vision 2028. It aims to encourage financial innovation by allowing companies to test new products and services in a controlled environment.
For the first cohort, SBP selected three key themes. These included technology-enabled solutions for inward remittances, open banking and remote onboarding of merchants.
Six Participants Selected for Testing
Following an extensive evaluation process, SBP shortlisted six participants for the first cohort.
The selected participants received approval to test their solutions between January and June 2026. Throughout the testing period, SBP teams provided regulatory guidance and technical support where required.
At the end of the testing phase, four participants successfully demonstrated their solutions.
Successful Sandbox Participants
| Participant | Theme |
|---|---|
| Taptap Send UK Limited & United Bank Limited | Technology-enabled solutions for inward remittances |
| Digi Khata (SMC-Private) Limited | Open banking |
| Swich Retail Private Limited | Open banking |
| Neem Exponential Financial Services (Pvt) Ltd | Open banking |
The successful demonstrations covered digital remittances and open banking solutions. These areas remain important to Pakistan’s efforts to expand access to modern financial services.
Sandbox Success Does Not Mean Approval
SBP clarified that completing sandbox testing does not amount to regulatory approval.
Before launching any tested product or service commercially, successful participants must obtain the relevant authorisation and approvals from the central bank.
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This distinction allows SBP to assess innovative solutions while maintaining regulatory safeguards. At the same time, participants can gain practical insights into compliance requirements before entering the wider market.
Findings to Support Future Regulations
The first cohort generated findings, lessons and regulatory recommendations for SBP.
According to the central bank, these insights will support the development of relevant regulatory frameworks. The resulting frameworks could benefit the broader financial services industry.
Furthermore, the Regulatory Sandbox is expected to provide a structured pathway for testing new financial technologies.
SBP Eyes Wider Financial Innovation
Going forward, SBP expects the Regulatory Sandbox to support both fintech companies and banks.
The initiative will help industry players develop practical, user-focused and technology-enabled financial solutions. In addition, it aims to improve efficiency and enhance the overall customer experience.
SBP’s initiative also supports broader efforts to expand the reach of financial services across Pakistan.
Overall, the completion of the first cohort marks an important step in SBP’s efforts to create a more innovation-friendly regulatory environment. Future cohorts could provide additional opportunities for financial technology companies and banks to test new solutions under controlled conditions.
