MNB provides an opportunity for testing financial innovations cross-border within the Global Financial Innovation Network (GFIN)
PrintMNB provides an opportunity for testing financial innovations cross-border within the Global Financial Innovation Network (GFIN)
Budapest, 29 October 2020 – The MNB as a member of the Global Financial Innovation Network (GFIN) is inviting applications from innovative firms for its cross-border testing environment. MNB via its Innovation Hub framework has been participating in the initiative from the beginning, and now, when the recent round of applications are invited, is ready to help Hungarian FinTech players to test their innovative solutions in several countries at the same time and welcomes international FinTechs as well to come and introduce their innovations in Hungary.
The Global Financial Innovation Network (GFIN) – a group of over 60 international organisations committed to supporting financial innovation in the interests of consumers – is inviting applications from firms to test innovative financial products, services, business models or regulatory technology across more than one country or jurisdiction in a coordinated regulatory sandbox framework, for the second time. This gives an opportunity for innovators to contact real customers and offer their products and services for a limited period of time whereby they are exempted from complying with some special regulatory requirements while are still in close interaction with the regulator. A successful test can validate the market interest for the idea, significantly speed up market entry and can raise investor attention.
In January 2019, the GFIN announced the inaugural cross-border financial test environment initiative among those countries who operate a regulatory sandbox framework and who are willing to open it for international applicants as well. MNB via its Innovation Hub framework, as the first regulator from the CEE countries, also took part in this initiative, together with 16 other authorities. This year, already twenty-three regulators across five continents are participating in this initiative, which builds on lessons learned following the GFIN’s 2019 cross-border testing pilot.
Cross-border testing 1.0
To facilitate the application process, the GFIN has developed several tools and solutions to improve the cross-border testing framework for a new cohort of firms, including:
- a single-entry application form for firms;
- a cross-border testing FAQs to help firms understand the process;
- an evolved ‘Regulatory Compendium’ clarifying the remit and interests of participating regulators and the types of innovation services available; and
- an extension of the application window to 9 weeks to allow firms more time to consider and prepare their applications.
MNB's participation can both encourage domestic FinTech innovators to enter the international markets and provide an attractive opportunity for international companies with world-class innovations to enter the Hungarian market.
Firms interested in applying to take part in cross-border testing should review the list of participating regulators and their respective Regulatory Compendiums and submit an application via the GFIN website before the 31 December deadline.