CzechInvest’s Fintech Regulatory Sandbox is entering its main operational phase. Twenty-one innovative projects have been selected for the programme, which is focused on testing new financial services, tools and unique solutions for the digital economy. These projects are beginning to make full use of the programme’s professional, legal, regulatory and technical resources. The fintech regulatory sandbox is the first comprehensive state initiative aimed at systematically supporting financial innovations.
Fintech ranks among the fastest growing sectors. According to the CEFTAS 2025 study, fintech generates gross value added in the amount of nearly CZK 12 billion in Czechia and annually contributes approximately CZK 3.6 billion to public budgets. “With a number of startups and other growing companies, Fintech is a powerful and innovative sector in which trust plays an essential role. As the regulator, the state follows two seemingly contradictory paths – supporting innovation and protecting consumers. The regulatory sandbox is a tool that links these two objectives and helps to show that innovative solutions can be safe, beneficial and fair,” said Jan Michal, CEO of CzechInvest.
A broad range of companies, from startups in the idea stage to well-established firms, applied for entry into the first programme. From dozens of applicants, experts from CzechInvest and representatives of the financial, technology and academic sectors selected 21 projects that represent the cutting edge of Czech fintech in the category of small and medium-sized enterprises. “The key selection criteria were, in particular, the given project’s benefit for the financial market and its degree of uniqueness on the Czech market, the innovativeness of the given service, the real need for testing in a regulatory environment and, of no less importance, the sustainability of the business model and its potential for scaling and international expansion,” said Simona Michalíková, director of CzechInvest’s Fintech Regulatory Sandbox.
Traditional fintech areas, such as payment services, accounting and investment and crowdfunding platforms, account for the largest share of projects registered in the programme. Modern technological trends based on DLT, including cryptocurrencies and blockchain projects focused on, for example, currency exchanges, NFTs and ticketing, also have significant representation. Individual sectors frequently overlap and AI often has a prominent role in them. “The range of problems that the selected companies are striving to solve is huge. A distinctive sector is, for example, insurtech, with projects focusing on the digitalisation of insurance companies and client compensation. We were surprised by how many companies in Czechia are working on tokenisation and the advanced stage to which they have already brought their projects,” added Július Mráz, project manager in CzechInvest’s Fintech Regulatory Sandbox.
Three pillars of support in the sandbox
The regulatory sandbox is a platform whose purpose is to help innovative companies with, in particular, legal, regulatory and technical testing of new technological solutions in highly regulated sectors and with achieving compliance with applicable regulations. In the course of their six-month collaboration, programme participants have the opportunity to bring their products and services into compliance with regulations through consultations with experts and representatives of regulatory institutions. The aim of this is to facilitate the implementation of innovations in regulated sectors in Czechia.
The Fintech Sandbox is primarily focused on regulatory testing, to which the greatest capacity will be dedicated. Another part of the sandbox’s services comprises technical testing in a digital testing environment, and the third level consists in business support and mentoring.
1. Regulatory testing: Detailed assessment of legislative obligations and consultations on compliance with experts from the Czech National Bank.
2. Technical testing: Provided by the company NayOne, which collaborates with the British Financial Conduct Authority and the Central Bank of Ireland. Technical testing is focused on security, penetration tests and compliance with ISO standards.
3. Business support and mentoring: Focused on the practical aspects of product development, business-model sustainability, market entry and potential for international expansion, as well as other issues that entities face and that do not fall into the first two categories.
Programme participants will also focus on current challenges such as the DORA and MiCA regulations, as well as issues associated with client onboarding, payment processes and other specific challenges that are most often faced by companies in this area. The programme does not provide direct funding, but only indirect support in the form of expert consultations and participation in a technology testing environment.
An individual approach as a path to targeted assistance
The outcomes of the programme are unique for each participant and reflect the specific needs of their business. Thanks to this individual approach, the projects receive clear feedback on the status of their solutions through technical testing. In the eyes of potential customers, such feedback represents prestigious proof of professional verification. In addition to technological validation and gaining valuable contacts to experts, however, another key pillar of the programme consists in stabilisation of the projects within the regulatory framework.
“Even well-established companies may not necessarily take into account all of the aspects that relate to their business model, because the regulatory framework evolves rather dynamically over time and is very complex. Consulting is very expensive in this sector and it is extraordinarily difficult for small and medium-sized enterprises to achieve full compliance with the relevant regulations when they are in an early phase of conducting business. “Furthermore, a lot of business models require a licenses for their operations. Therefore, the fintech sandbox can also serve as a means of preparation for obtaining a license or other regulatory authorisation,” explained Dávid Revák, attorney for CzechInvest’s Fintech Regulatory Sandbox.
The pilot phase of the programme is currently set to run until the end of April and talks on extending it until the end of June this year are underway.
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