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Page last updated: 14 August 2025

Innovation

The financial technology (FinTech) sector continues to evolve rapidly. Our aim is to ensure that the New Zealand regulatory system facilitates innovation that improves outcomes for customers and increases the efficiency and competitiveness of the financial system.

New technologies and the growth of the data economy are driving innovation and are reshaping how financial products and services and developed, distributed and consumed, opening new opportunities for financial services. The Fintech.govt.nz website provides a centralised resource for Fintech related regulatory information. The website also provides a direct way for FinTech's to contact the FMA for regulatory guidance. The FMA coordinates any requests that require support from other New Zealand regulators. 

View the Fintech.govt.nz website

FMA fintech regulatory sandbox pilot 

In December 2024 we announced the development of a fintech sandbox pilot project and in April 2025 we welcomed the first group of participants to take part.

Read our article on the sandbox pilot here

The FMA’s regulatory sandbox pilot marks a step towards fostering innovation, encouraging competition, and creating a more dynamic financial services landscape in New Zealand. 

Read our media release on our first group of participants here

Sandboxes can help spur innovation by allowing both startups and established licensed financial institutions to test new products and services in a controlled environment. It allows them to obtain a deeper understanding of supervisory expectations and will also give them the opportunity to adjust a product or service before full commercial launch, which may help reduce their costs. For the FMA, it gives us the chance to gain greater insights into the benefits and risks of financial innovation and new technologies.  

The sandbox aims to lower barriers to entry for fintech innovators and accelerates the development of digital products that meet the evolving needs of New Zealand’s financial services consumers. 

The pilot is designed for firms that:  

  • have a product ready to be tested in the New Zealand market with customers,
  • understand what aspects of existing financial regulation apply to their product or service, and
  • have considered where they need guidance from the FMA and why participation in the sandbox will help ‘go to market’ plans.  

The pilot will help us to understand innovative business models, the regulatory barriers facing the fintech community and, if appropriate, take action to reduce those barriers.​ The findings from the pilot will be invaluable in helping us refine our fintech service and the design of future iterations of the sandbox.   

Fintech sandbox pilot FAQs 

A: A regulatory sandbox is a controlled environment where businesses can test innovative products, services, or business models under the supervision of a regulator, allowing for experimentation without immediately incurring full regulatory obligations. 

FMA’s approach to this sandbox is to facilitate market innovation and growth by learning about the regulatory barriers your business is facing and seeking to design regulatory solutions.  

A: We have a range of formal and informal tools that we are seeking to use in normal and innovative ways. What solutions we can offer will ultimately depend on the regulatory barriers involved. 

A: The sandbox experience will be different for each candidate, depending on how the FMA can help and the type of product or service in the sandbox, and the type of regulatory solution that might be put in place. 

We are anticipating that firms will be able operate within the terms of the Sandbox for a period of between 12 and 24 months.   Because the experience is tailored to each candidate, exit from the sandbox will look different for different products and services.

We will work with each firm individually to agree a tailored approach to exiting the sandbox.  

A: There is no cost for the regulatory sandbox pilot itself. Some regulatory tools (such as individual exemptions) do have some costs involved. Before we get to that stage, we will be clear on what the expected costs involved are.  

A: The FMA is the fintech point of call for the Council of Financial Regulators (CoFR). A product or service may run into areas regulated by one of these different agencies, but firms don’t have to figure that out for themselves. They can contact us at the FMA, and we’ll make sure the queries get to the right people in one of our fellow regulators.   

A: No, it doesn’t. Participation in the sandbox does not mean that the FMA is approving or endorsing a business, its products or services. This is set out in the Terms of Engagement for the sandbox pilot. 

A: No. The FMA is only providing support from a regulatory perspective. It is up to the participants to determine their own business model, product strategy, etc. Once the firm is confident that they will be able to bring their produce to market, they must abide by the regulations set out in the FMC Act.​ 

A: This pilot is designed to assess the suitability of a sandbox for New Zealand's fintech sector. It provides a safe environment for participants to test their products. Some products may not be suitable for the New Zealand market. The FMA is only here to help firms navigate regulatory requirements. It is not our place to advise on business models or product structure.​ 

A: Participation in the pilot brings no special exemption from other regulatory/legal obligations. However, participants may be granted individual exemptions as part of their Sandbox journey.