Get Educated on Arizona’s Newest Law Supporting Technology Innovation

Arizona is the first state in the nation to pass legislation creating a financial technology, or fintech, sandbox.

There is a lot of excitement around this innovation in technology. But what is a fintech sandbox and what does it mean for our state?

Fintech is the coined term for the new innovation that uses technology to enhance activities in finance. It encompasses a wide range of matters including mobile banking, investing services, and cryptocurrency. Arizona has a rich history in the financial services sector, making the state the perfect host to established and start-up companies expanding in the fintech arena.

“A sandbox is essentially a trade where a business obtains reduced barriers to entry in exchange for limited access to the market. Consumers benefit from a dynamic market. Choice and access are key to consumer protection.”

-Paul Watkins, Civil Division Chief at the Arizona Attorney General’s Office.

Mirroring similar models in the U.K., Mexico, and Canada, Arizona’s sandbox allows for fintech companies to launch and test innovative products and services in an welcoming regulatory environment. These companies must apply through the Attorney General’s office to be able to test their products for up to two years and provide for as many as 10,000 customers before submitting for formal licensure.

Attorney General Mark Brnovich was a staunch supporter of the groundbreaking bill (HB 2434) this session and believes the sandbox will create great economic success.

“I hope to see the sandbox serve as a catalyst for capital investment in Arizona and provide opportunities for Arizona businesses and consumers to thrive.”

-Attorney General Mark Brnovich

Arizona business leaders and government officials are being persistent in reaching out and educating on the sandbox, and global eyes are on us.

A recent event organized by invisionAZ and other Arizona influencers bolstered international attention. With a packed house and participants from Mexico, Israel, and the United Kingdom attending via livestream, Representative Jeff Weninger and Attorney General Mark Brnovich expanded on the sandbox and their process of bringing the bill to fruition. The conversation was encouraging with Arizona Chamber of Commerce & Industry CEO Glenn Hamer moderating a Q&A portion and offering a business perspective.

Beginning August 3, companies from around the world can apply to be a part of Arizona’s fintech sandbox. Arizona will see great benefits from this program and continue to lead in innovation and advancement.