Kalifa reports recommends that a permanent “digital sandbox” should be created using Synthetic Data to advance UK FinTech

At the 2020 Budget, the Chancellor asked Ron Kalifa OBE to conduct an independent review to identify priority areas to support the UK’s fintech sector. The Review formally launched in July 2020 the objective of supporting the growth and widespread adoption of UK fintech, and for maintaining the UK’s global fintech reputation.

The Kalifa Review of UK Fintech highlights the opportunity to create highly skilled jobs across the UK, boost trade, and extend the UK’s competitive edge over other leading fintech hubs. It sets out a series of proposals for how the UK can build on its existing strengths, create the right framework for continued innovation, and support UK firms to scale.

A highlight within this review was on the merits of the digital sandbox pilot. With further recommendation that a permanent digital sandbox should be created to help firms innovate and develop their solution on high-fidelity synthetic data.

The digital sandbox pilot was launched by the FCA and City of London Corporation to test the efficacy of a novel tool to support innovation in financial services. The pilot aimed to stimulate and support greater levels of innovation in financial services by providing access to a suite of tools and features that would assist SMEs in the development of their solutions. FinCrime Dynamics (formerly Ealax) was one of the companies that in 2020 provided synthetic data for the digital Sandbox Pilot. Including the known synthetic datasets PaySim and BankSim from Dr. Edgar Lopez-Rojas’s previous research.

We are thrilled that the hard work and contribution to the pilot alongside our peers was able to make such an impact. Furthermore,  we are excited to see such high praise for synthetic data and the recommendation for the continuation of the digital sandbox.

Sources:
Kalifa Review of UK FinTech