"Since we first opened the sandbox, it has supported almost 70 firms in testing innovative new products and services."
The FCA has revealed that Barclays and Nationwide are amongst the new firms that were successful in their applications to begin testing in the third cohort of the sandbox.
The sandbox allows firms to test innovative products, services or business models in a live market environment, while ensuring that appropriate protections are in place.
The FCA received 61 submissions for the third phase of the regulatory sandbox. 18 applications met the sandbox eligibility criteria and were accepted to develop towards testing.
Barclays submitted a regtech proposition which tracks updates to regulations within the FCA Handbook and aligns their implementation to Barclays’ internal policies.
Nationwide are testing an automated solution providing digital savings guidance and investment advice.
First Direct and Bud were also successful in developing an app which learns customers attributes from transactional and demographic data to identify financial and non-financial products from a marketplace of first direct, HSBC and external institutions.
Over 40% of firms invited to test in cohort 3 are based outside London, compared to 35% in cohort 2 and 25% in cohort 1.
In October, the FCA announced that around 90% of firms which completed testing in the first cohort have progressed towards a wider market launch and at least 40% received investment either during or following their sandbox tests.
Christopher Woolard, executive director of strategy and competition at the FCA, said: "Since we first opened the sandbox, it has supported almost 70 firms in testing innovative new products and services. It is particularly encouraging that we are now seeing more applicants from outside London and a broader range of firms testing in the sandbox. As we open the application window for our next sandbox cohort, we continue to encourage applications from firms of all sizes and from a wide range of sectors, including sectors we haven’t seen heavily represented in the sandbox to date."