Nationwide will test an automated way of providing advice and guidance about savings and investments to customers in the sandbox while Barclays aims to improve how it keeps up to date with FCA rules and changes.
It will mark the third group of companies to be involved in the sandbox, part of Project Innovate which launched in 2014.
Christopher Woolard, executive director of strategy and competition at the FCA, said: “Since we first opened the sandbox, it has supported almost 70 firms in testing innovative new products and services.
“It is particularly encouraging that we are now seeing more applicants from outside London and a broader range of firms testing in the sandbox.
“As we open the application window for our next sandbox cohort, we continue to encourage applications from firms of all sizes and from a wide range of sectors, including sectors we haven’t seen heavily represented in the sandbox to date.”
Of the 61 submissions to the regulatory experiment, 18 ideas were chosen to enter the third cohort by the FCA.
Making use of the sandbox
Alongside the big banks are a host of smaller firms trying out new ideas and products.
Economic Data Sciences will test technology that uses artificial intelligence to provide fund managers with an optimal trade-off to aid investment selection, mathematically calculating risks against objectives.
Square Book will look at making the auction method of book building for IPOs and private placements fairer and more transparent while Solidi aims to build a payment system based on blockchain and using cryptocurrencies to aid quicker money remittance with lower transaction costs.
The fourth regulatory sandbox is open for submissions, the FCA said.
Firms have until 31 January 2018 to submit an application and should be ready to begin testing by June next year. Full details, eligibility, and instructions are on the FCA website.
