Phoenix, Arizona - This Friday, the Arizona Attorney General’s Office will launch the first FinTech Sandbox in the United States, which eases regulatory burdens for entrepreneurs to test innovative FinTech products and services while remaining subject to Arizona’s consumer protection laws.
FinTech is an abbreviated term for “financial technology.” It encompasses new ways of providing traditional financial services, such as banking, payment systems, or investment advice. Accessing a bank account and making transfers via a smartphone app (commonly called mobile banking) is one example of a FinTech product.
“I am proud Arizona is leading the way in creating an environment to foster innovations while maintaining important consumer safeguards,” said Arizona Attorney General Mark Brnovich. “Arizona has always been a state for big ideas and trailblazers, and this is just one more place where we are primed to be first. Our FinTech Sandbox will open the doors to economic growth, new jobs, and innovative products that can make everyday life easier and safer.”
Currently, navigating state regulatory requirements can take several months and cost a startup company tens of thousands of dollars in fees. Arizona’s FinTech Sandbox provides much needed relief for entrepreneurs by lifting some regulations and allowing innovative products and services to be live-tested in a marketplace limited to a capped number of consumers.
Arizona’s FinTech Sandbox will be administered through the Consumer Protection & Advocacy Section of the Arizona Attorney General’s Office. This will allow the office to act quickly if necessary to protect consumers, stop deceptive acts, and work with entrepreneurs to solve problems. General Brnovich says while this program encourages innovation by easing some regulations, his office remains committed to enforcing applicable laws and will not tolerate failures to maintain consumer safeguards.
"Attorney Gen. Brnovich deserves tremendous credit for working to pass the legislation that made the establishment of the FinTech Sandbox a reality. Thanks to his work, Arizona's national and international profile has grown tremendously as a hotspot for innovation in financial services."
Glenn Hamer, President and CEO, Arizona Chamber of Commerce
"On behalf of invisionAZ, we applaud Attorney Gen. Brnovich for striving to ensure that our laws keep pace with technology, while protecting consumers. The launch of Arizona's FinTech Sandbox will increase capital available to Arizona entrepreneurs while helping to attract tech talent to the state."
John Ragan, Chief Executive Officer, invisionAZ
“Arizona’s Regulatory FinTech Sandbox is just one example of the innovative and pro-business environment that has made Greater Phoenix so appealing. We look forward to working with emerging technology disruptors as they solidify their expansion plans to the United States."
Chris Camacho, President and CEO, Greater Phoenix Economic Council
“Under Governor Ducey’s leadership, Arizona has established a position as a global front-runner in emerging technologies, including autonomous vehicles, 5G, and the sharing economy, and is also recognized as a model for regulatory reform. Our FinTech Sandbox - the first in the United States - is the latest example of why Arizona has earned this reputation, and we thank Attorney General Brnovich and his team for their work. We’re excited that applications are now being accepted and look forward to seeing how the program will drive innovation in the financial services industry.”
Sandra Watson, President & CEO of the Arizona Commerce Authority
To learn more about Arizona’s FinTech Sandbox, click here.