The Central Bank of Jordan FinTech Regulatory Sandbox framework to support innovation in financial technologies and launched on April 2, 2018. The description and purpose of the sandbox is summarized in the excerpt below:
Central Bank of Jordan realized the necessity for innovation and development in the FinTech sector, and the need to incentivize digitization to enhance digital financial inclusion, and support a digital economy through e-government. Therefore, Central Bank of Jordan established a FinTech Sandbox to create an incubator for entrepreneurs and innovators to support innovation in FinTech. This would encourage competition and increase effectiveness, efficiency, and security in money transfers, which in return will enhance accessibility to formal financial services without jeopardizing the integrity and stability of the financial system, keeping data of financial consumers protected.
The objectives of Jordan's Regulatory Sandbox are summarized below (excerpt), with eligibility requirements and evaluation criteria are contained within the framework.
- Contribute to building capacity for innovators and business entrepreneurs in the FinTech sector
- Establish a specialized environment to innovate and develop businesses and test new ideas within a secured and controlled environment in the kingdom
- Expand in innovating and designing services, products, and solutions that effectively:
- Increase effectiveness and efficiency in DFS, and widens choices for financial consumers so they can choose what’s more suitable
- Managing and mitigating risks associated with digital financial services Enhance access to digital financial services which helps in achieving a sustainable financial inclusion
- Attracting investments to the kingdom
- Job creation
- Opening up opportunities for college students to innovate and pioneer
- Reduce time needed to enter the market at lower costs 5. Enhance business practice in the kingdom, and reduce the costs of maintaining regulatory stability to ensure consumer protection
- building capacity for entrepreneurs through specialized training courses and workshops designed by the central bank and its partners