Regulatory Sandbox Eligibility Criteria

To be accepted into PCMA’s Regulatory Sandbox facility, applicants MUST meet all of the below criteria, which we will assess when reviewing your application.  However, we strongly advise that applicants assess their solution against our criteria before applying, so that it will help you make the decision whether the Sandbox is the right facility, or it will help you prepare your application.

If your idea is not sufficiently well advanced, then the Ebtaker Innovation Hub may be the more appropriate path for you. 

1. SCOPE: The innovative solution must be within the scope of the PCMA.  IN other words, your idea must be within the non banking financial services sector.

2. GENIUNE INNOVATION:  Your solution must be genuinely innovative.  In other words, such a solution may not be available within the Palestinian non banking financial sector, or limited solutions are found.

3. CONSUMER BENEFITS & FINANCIAL INCLUSION: – The innovation demonstrably provides benefits to Palestinian consumers and businesses, and has the potential to expand access to financial services and advance financial inclusion.

4. READINESS: It is crucial that the innovative solution is sufficiently well developed to be launched in the Palestinian non banking financial sector. The applicant must fulfil all requirements imposed by PCMA as a precondition to testing, and have available, minimum basic resources, whether human, technical, or financial, to allow live testing of their innovative product or services.

5. NEED FOR SUPPORT –The applicant must demonstrate a genuine need to test the solution under the Regulatory Sandbox facility.  For example, focus groups or market studies are not sufficient to assess commercia viability, or existing regulatory framework do not neatly fit the innovation

6. RISK ASSESSMENT – The Innovator must have a risk management strategy or plan to mitigate risks to consumers and the financial system. 

Guidelines on Eligibility Criteria

Criteria

Key Question to Answer

What Would be Acceptable

What would NOT be Acceptable

SCOPE

Will your idea fall within PCMA’s regulated sector?

  • Your idea will be launched in Palestine
  • It falls within the insurance, leasing, mortgage finance, or securities sector
  • Your are intending to launch your idea outside Palestine
  • It falls within the banking or micro finance, or payments sectors

GENIUNE INNOVATON

Is your innovative idea bringing something significantly different to the Palestinian non banking sector?

  • Similar ideas, products, services or solutions cannot be found in the Palestinian market
  • You solution applies a unique process or solution on bow consumers and businesses engage with non banking firms
  • Previous solutions have already been tested through the PCMA’s Regulatory Sandbox, and new laws or regulatory guidance is in place for your innovative idea.
  • Solutions already exist in the Palestinian nin banking sector.
  • Your innovation is only making a small step change to what already exists in the sector.

CONSUMER BENEFIT

  • Does your solution imporve the lives of consumers and businesses?
  • Does your solution drive higher levels of financial inclusion#?
  • Your solutions is likely to deliver a better solution, by delivering it at lower price, providing higher quality, better security or better customer experience.
  • Your solution has the potential to provide greater financial access to underserved communities or drive financial inclusion to those not part of the financial system.
  • Your solution does not(directly or indirectly) demonstrate any aspects that has the potential to greater financial access or financial inclusion.


READINESS

  • Is your idea / innovation well developed? 
  • Have you put in place all systems, processes and people, ready to launch?
  • You have a clear and well developed business plan and financial projections
  • You have conducted market research to assess commercial feasibility and demand
  • You have well developed systems (hardware and software), processes and people to launch in a live environment.
  • You have well developed Sandbox testing plans
  • You are ready to comply with any laws or instructions
  • You have finance and other resources to conduct the test
  • You have safeguards in place to protect consumers or compensate them for losses
  • All contracts are in place – i.e. with customers, suppliers and partners
  • Agreements, systems and processes re in place with potential partners who take part in the test (e.g. insurers)
  • If licensing will be needed after the test, you are ready to start preparing for licensing while in the Sandbox.
  • You do not have a well-developed business plan
  • You have done no initial testing to assess the demand for your products or services or its commercial viability.
  • You do not have sufficient financing available to run the tests or compensate customers if things go wrong
  • You do not have adequate systems, processes and people in place to run the business during testing
  • You have no agreements with potential partners or they are still being negotiated.
  • You have not tested whether your products or service delivery works


NEED FOR SUPPORT

  • Is there a genuine need to test the solution before licensing?
  • Are there alternatives to Sandbox Testing?
  • The innovation does not fit current licensed activities or the PCMA’s regulatory framework
  • The Ebtaker Innovation Hub is not suitable or you have already received such support and are ready to move to the next stage.
  • You will need a No Objection Letter to launch and test your solution, without breaking any existing or future laws or putting customers are risk.
  • The solution has only a minor innovation which could be accommodated within the existing regulation or your supervisor could easily exempt you from certain laws
  • Live testing is not necessary to understand commercial viability or market demand. This could be done through surveys or focus group research.

RISK ASSESSMENT

  • Do you understand the risks of Sandbox testing for customers and the financial system?
  • Are you ready to address risks that arise during testing?
  • You have a comprehensive risk assessment that captures risks and mitigation strategies
  • You have considered possible risks to customers, your business and the financial system.
  • You have sufficient safeguards to protect customers, the business and the financial system during the tests
  • You have no risk assessment or risk management plan that you can present to the PCMA
  • Your solution is likely to harm consumers or the non banking financial sector.
  • You are not clear on risks faced by customers during testing
  • Do you meet the eligibility criteria?
  • Do you understand our process and timelines?
  • You have answers to all your questions?
Apply for Sandbox Testing of your Innovation
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