Abu Dhabi and Singapore have initiated the first cross-border FinTech sandbox testing, according to Abu Dhabi Global Market.
The Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market (ADGM) and ASEAN Financial Innovation Network (AFIN) have announced connectivity of their sandbox environments, to enable international collaboration and FinTech solutions.
ADGM has partnered with AFIN, which is building a digital marketplace - the API Exchange (APIX) - for South-East Asia to support financial inclusion. Connectivity between these two global FinTech hubs will propel both regions forward to a future of truly digital international financial services.
The APIX was launched by H.E Narendra Modi, Prime Minister of India at the 2018 Singapore FinTech Festival.
ADGM and AFIN have showcased the connectivity between their two platforms at the Singapore FinTech Festival. This pilot test included Anglo-Gulf Trade Bank (AGTB), an ADGM-registered firm, which has extended trade finance to a Singapore-based seller of goods for the purposes of simulating a UAE-Singapore trade transaction. AGTB used the ADGM Digital Sandbox to connect via APIs to the APIX platform to source FinTech start-ups to perform due diligence on the Singapore-based seller.
Richard Teng, CEO of the FSRA of ADGM said: "We are excited that the first pilot testing of the FinTech digital sandbox took place successfully under regulatory supervision. The immense power of digital platforms, cloud and APIs to drive connectivity, ability to test innovative solutions and collaborate on a cross-border basis form an important part of our FinTech strategy. Our Digital Sandbox platform will be a portal to the digital economy and the next generation of financial services for MENA and beyond.
"As the MENA FinTech Hub and a centre of innovation connectivity, we are delighted to be able to deliver this world first through our collaboration with ASEAN's APIX platform."
The ADGM Digital Sandbox is designed to provide a secure cloud-based environment for FinTechs, banks and other financial institutions to connect, test products and share data through APIs, with regulator engagement. This digital sandbox will accelerate the financial inclusion agenda, and expand access to financial services locally and globally. In addition, it will help to reduce costs of procurement for institutions and start-ups alike.