Six fintechs to test bold ideas in FMA sandbox
The Financial Markets Authority has confirmed the six fintech firms that will test their innovative products, services, or business models in its pilot regulatory sandbox.
The successful fintech firms are:
|
Fintech firm |
Details on their intentions |
|---|---|
|
ECDD Holdings |
Part of the exchange service Easy Crypto, ECDD intends to launch a yield-bearing NZD-backed stablecoin and generate revenue from interest earned on money held in trust accounts. |
|
Emerge Group |
Emerge offers digital banking products like debit cards and in-app expense tracking. Customer funds are currently held with a partner bank but Emerge plans to shift to higher-yielding options such as government bonds. |
|
Homeshare |
Homeshare allows investors to own fractional real estate shares tokenised into 1,000 units per property, tradable online. |
|
IndigiShare |
Aims to improve access to capital for Māori entrepreneurs via Te Whare Manaaki, a koha loan platform to support indigenous businesses. |
|
Invest in Farming Co-op |
Connects investors to agricultural assets like livestock and horticulture, digitising ownership with returns unlocked on asset sales. |
|
Tandym |
Enables group investment in a social, administrative-light platform designed to help people build wealth collectively. |
Pilot aims to drive innovation and consumer benefits
Daniel Trinder (pictured), FMA executive director of strategy and design, said the pilot was created to “spur innovation for both startups and established licensed financial institutions.”
“We received 24 applications to be part of the sandbox and went through a thorough review process to determine which of the firms would be chosen to be part of the pilot,” Trinder said.
The selection criteria included:
- genuine innovation that is either unique or solves an existing problem
- likely benefit to consumers
- low risk of causing consumer harm
- demonstrated need for sandbox testing
- product readiness
- a capable management team with appropriate experience and skills
Testing in a controlled environment to reduce risks and costs
The sandbox initiative, running from January to July 2025, invites both startups and established financial firms to test offerings under close regulatory supervision. The FMA will decide on the creation of a permanent sandbox later this year, based on the outcomes of the pilot
“During the pilot they can test new products and services in a controlled environment, helping them to obtain a deeper understanding of supervisory expectations,” Trinder said.
He noted that adjusting a product or service before a full commercial launch “may also help reduce costs for firms.”
FMA expects valuable insights from the pilot
FMA expects clear benefits from the sandbox pilot for both regulators and innovators, reinforcing its clear commitment to consumer fairness and market efficiency.
“By working closely with the firms during their time in the sandbox, we expect to gain greater insights into the benefits and risks of financial innovation and new technologies,” Trinder said.
“This should allow us to react faster and more effectively to potential regulatory and supervisory problems. It should also highlight gaps around investor and customer protection, allowing development of more appropriate and timely solutions.”
FMA also acknowledged FintechNZ’s “constructive work and support” throughout the sandbox process, reinforcing its commitment to supporting innovation in financial services.
