SBP concludes first cohort of its Regulatory Sandbox

The State Bank of Pakistan (SBP) has concluded the first cohort of its Regulatory Sandbox, part of its broader SBP Vision 2028, after launching the initiative in August 2025 to test innovative digital financial solutions in a controlled, regulator-supervised environment.

The first cohort focused on three themes: technology-enabled solutions for inward remittances, open banking, and remote onboarding of merchants. Following extensive scrutiny, six participants were shortlisted and invited to test their solutions in the sandbox from January to June 2026, with SBP teams providing regulatory guidance and support throughout the process.

Four participants successfully demonstrated their solutions by the end of the testing period. Taptap Send UK Limited and United Bank Limited tested technology-enabled solutions for inward remittances, while Digi Khata (SMC-Private) Limited, Swich Retail Private Limited, and Neem Exponential Financial Services (Pvt) Ltd tested solutions under the open banking theme.

SBP clarified that successful completion of sandbox testing does not amount to regulatory approval. Participants must still obtain proper authorization from SBP before commercially launching the products or services they tested.

The central bank said the findings, learnings, and regulatory recommendations from the first cohort will help shape relevant regulatory frameworks for the wider industry. Going forward, SBP expects the Regulatory Sandbox to continue supporting fintechs and banks in developing practical, user-centric, technology-enabled solutions aimed at expanding financial services outreach and improving efficiency and user experience.