Sandboxed Financial Tech Regulatory Review Platform
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Solution Overview
Problem
Financial market regulators face challenges in keeping pace with innovation, leading to weakened ability to manage systemic risks and consumer protection, as existing systems lack efficient tools for reviewing and executing financial services technology solutions in a vetted and transparent manner.
Innovation Solution
A method and system for executing and evaluating financial services technology solutions in secured testing or live environments, utilizing a blockchain-based platform for tracking application progress, providing API gateways for standardized connections, and automating regulatory approval processes, including submission, testing, and risk assessment.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Productivity
If regulators manually review and evaluate financial services technology solutions, then thorough risk assessment and consumer protection can be achieved, but the process is time-consuming and cannot keep pace with innovation speed
Solution Approach 1:
The patent introduces a sandbox environment as an intermediary platform between regulators and financial technology solutions. This sandbox acts as a controlled testing ground where solutions can be evaluated automatically through standardized processes, APIs, and regulatory rules, enabling both rapid assessment and reliable risk management without requiring manual reviewer intervention for every case
Solution Approach 2:
The patent replaces manual mechanical review processes with automated computational systems. Regulatory rules, risk assessments, and compliance checks are executed automatically through software algorithms, APIs, and standardized evaluation frameworks within the sandbox environment, dramatically increasing review speed while maintaining consistency and reliability
2Loss of information
If traditional regulatory review processes are used, then comprehensive evaluation can be performed, but transparency and clarity for market participants are reduced
Solution Approach 1:
The patent segments the regulatory approval process into distinct, standardized phases within the sandbox environment: submission, automated evaluation, testing, and approval. Each phase has clear entry and exit criteria, transparent rules, and defined outcomes. This segmentation makes the complex regulatory process more transparent and understandable for market participants while maintaining comprehensive evaluation capabilities
Solution Approach 2:
The patent changes the parameters of the regulatory process by introducing standardized evaluation metrics, automated scoring systems, and clear threshold criteria. These parameter changes transform the opaque, subjective traditional review into a transparent, objective process with measurable outcomes that are clearly communicated to applicants
Data Source
AI summary
A method for executing and evaluating financial services technology solutions in a secured testing environment during a regulatory approval process includes receiving, by a first computing device, via a user interface, a regulatory process application from a second computing device. The first computing device receives an application programming interface call providing an instruction for use in executing, within a secured testing environment, a software application identified within the regulatory process application. The first computing device executes the software application within the secured testing environment. The first computing device provides access to the software application executing within the secured testing environment to a user of a third computing device, during at least one phase of a regulatory approval process. The first computing device receives a result of the at least one phase of the regulatory approval process. The first computing device displays to the second computing device, the received result.