כניסה

The Innovation Authority, the Israel Securities Authority, and the Bank of Israel have Launched the Data Sandbox Program for Fintech Companies Specializing in Payment and Account Information Services
 

May 29, 2022 / 23 Iyar, 5782

The Israel Securities Authority (ISA) in collaboration with the Innovation Authority has launched its fifth Data Sandbox Program for fintech companies specializing in payment and account information services. The program is designed to promote innovation that increases efficiency and competition in Israel’s capital markets and financial sector, improves the availability and quality of services to the public and reduces prices. For the first time, the Bank of Israel is joining the ISA and the Innovation Authority and will participate as an observer in evaluating fintech companies' applications based on their degree of innovation, potential contribution to the Israeli economy and regulatory feasibility. The Bank of Israel will also participate as an observer of the professional support provided to the applicants selected for the program.

The Data Sandbox Program aligns with the reform that the ISA and the Bank of Israel are leading to promote technologically advanced financial services for the public and to increase competition in this market by expanding the activities of fintechs in Israel. 

Israeli fintech companies selected for the Sandbox Program will receive professional and financial support. For the purpose of their pilot projects, participants will benefit from access to ISA databases, TASE trading data, and data of institutional investors and other entities; participants will run their pilot projects and test their technology using the relevant data held by these entities. The Sandbox Program will also give participants an opportunity to develop a market-ready version of their product or service with the support of the ISA and the Innovation Authority. 

Participating developers and companies will focus on the challenges in Israel’s financial system that are at the top of the ISA's agenda, such as:

(1) Expanding public access to account information and to related innovative services and products through open APIs, and especially services that aggregate cost comparisons over as large a number of service providers as possible with the aim of improving consumers’ financial decision making.

(2) Integrating technological solutions into the traditional financial system, especially solutions related to payments (e.g., digital onboarding, e-KYC) and in the interfaces between banks and fintechs (including B2C and B2B2C services).

In the four previous successful Data Sandbox programs, 10 fintech companies were selected from a pool of 30 applicants. Program participants conducted pilot tests of their products and services in the ISA and other organizations including Altshuler Shacham, Poalim IBI, and Kanaf, including two pilot tests that directly involve the investing public. The total cost of approved pilot tests is 14 million NIS, including 7 million NIS in government funding. The list of companies that have conducted pilot tests in the Sandbox Program includes Zira.co, Corelight Capital, Bond IT, DDQIR Ltd, Fintecha AI, Wizsoft (Israel) Ltd, FIL Marketplace Ltd, Pink Digital, Scanobite, and RD Levant.

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