Insider Intelligence delivers leading-edge research to clients in a variety of forms, including full-length reports and data visualizations to equip you with actionable takeaways for better business decisions.
In-depth analysis, benchmarks and shorter spotlights on digital trends.
Learn More
Interactive projections with 10k+ metrics on market trends, & consumer behavior.
Learn More
Proprietary data and over 3,000 third-party sources about the most important topics.
Learn More
Industry KPIs
Industry benchmarks for the most important KPIs in digital marketing, advertising, retail and ecommerce.
Learn More
Client-only email newsletters with analysis and takeaways from the daily news.
Learn More
Analyst Access Program
Exclusive time with the thought leaders who craft our research.
Learn More

About Insider Intelligence

Our goal at Insider Intelligence is to unlock digital opportunities for our clients with the world’s most trusted forecasts, analysis, and benchmarks. Spanning five core coverage areas and dozens of industries, our research on digital transformation is exhaustive.
Our Story
Learn more about our mission and how Insider Intelligence came to be.
Learn More
Rigorous proprietary data vetting strips biases and produces superior insights.
Learn More
Our People
Take a look into our corporate culture and view our open roles.
Join the Team
Contact Us
Speak to a member of our team to learn more about Insider Intelligence.
Contact Us
See our latest press releases, news articles or download our press kit.
Learn More
Advertising & Sponsorship Opportunities
Reach an engaged audience of decision-makers.
Learn More
Browse our upcoming and past events, recent podcasts, and other featured resources.
Learn More
Tune in to eMarketer's daily, weekly, and monthly podcasts.
Learn More

More than one-fifth of fintechs in the UK regulator’s sandbox have collapsed

Twenty-two percent of fintechs that participated in the Financial Conduct Authority’s (FCA) regulatory sandbox have since gone out of business, per research from AltFi. The UK sandbox, which was the world’s first and launched in 2015, allows select fintechs to test their services on a small group of consumers and get support from the FCA in identifying appropriate consumer protection safeguards.

The findings highlight that participation in the sandbox doesn’t guarantee success in the market.

  • So far, the regulatory sandbox has hosted 108 fintechs across six completed cohorts. A number of participants have since shut down, including nine out of the 24 fintechs in the second cohort and five out of the 29 in the fourth cohort, per AltFi. To put this in context, 60% of new businesses in the UK fail in the first three years compared with the 22% among the FCA’s cohorts, highlighting how difficult it is for startups to go the distance irrespective of sandboxes.
  • Startups face a host of challenges in scaling, and it often takes years for them to turn a profit, making them more vulnerable to shutting down. More than two-thirds of small UK fintechs had six months or less of cash runway in July due in part to private funding drying up amid the pandemic. Cohort participants may also have attempted to grow in a fiercely competitive market: RBS-owned lasted less than six months, for example, partly because it didn’t offer advanced features, such as fingerprint login, like its much larger peers, including Starling and Monzo.

However, fintechs should still apply to the sandboxes that the FCA has planned for later this year because the programs can help scale their businesses. Despite not guaranteeing market success, being a sandbox participant can still provide some competitive advantages. For example, fintechs can pilot solutions and stress test them under different scenarios to see how they hold up to regulatory requirements, potentially reducing time-to-market at a lower cost than if they didn’t work with the FCA from the beginning. The FCA is also planning more sandboxes for fintechs of all sizes, in addition to the regulatory sandbox’s incoming seventh cohort: Last week, it announced the second iteration of its digital sandbox, first launched in May 2020 to address pandemic challenges. It will now test concepts that support the transition to green finance. It’s also planning a regulatory nursery in the fall to oversee fintechs immediately post-authorization to steer them in the right direction.