October 23, 2017 -
A firm participating in the Financial Conduct Authority (FCA) regulatory sandbox is testing a plan to integrate facial recognition technology into the risk profiling assessment process being performed by advisers, according to a report by the FCA.
In June, two firms using facial recognition in their solutions were among the 24 fintech companies selected by the FCA to test their products on actual customers in the UK.
The FCA said the regulatory sandbox had helped cut down on the amount of time and cost of bringing innovative ideas to market, as well as discussed some of the innovations being tested.
Upon opening for applications in June 2016, the sandbox project subsequently received 146 applications in total and accepted 50 applications with 41 progressing to testing.
The regulator said that several firms have advanced to the testing phase, with one firm currently testing the automation of the end-to-end advice process.
The FCA report stated that 75 percent of the firms accepted into the first cohort have successfully completed testing, with 90 percent of those firms moving on to wider market launch.
In addition, at least 40 percent of firms which completed testing in the first cohort received investment during or following their sandbox tests.