Swich Urges Fintechs to Apply for SBP’s Regulatory Sandbox Second Cohort Before November 30 Deadline
Pakistan’s fintech community has a narrowing window to test its boldest ideas with the blessing of the regulator. Fintech company Swich has publicly urged startups and technology firms to apply for the second cohort of the State Bank of Pakistan’s (SBP) Regulatory Sandbox, sharing lessons from its own experience as a first-cohort participant under the Open Banking theme.
The call came in a LinkedIn update from Swich, reported on October 23, 2026, as the central bank’s call for new proposals remains open. With applications for the SBP regulatory sandbox Pakistan second cohort closing on November 30, 2026, the company framed its participation as a valuable opportunity to contribute to the development of financial innovation in the country.
What the SBP Regulatory Sandbox Is
The State Bank launched its Regulatory Sandbox in August 2025 under its Vision 2028 strategy, creating a controlled environment where technology-enabled financial solutions can be tested under regulatory supervision. The goal is twofold: give innovators a safe space to prove their products work, and help the central bank understand emerging technologies so it can refine regulations, all while protecting consumers and preserving financial stability.
The first cohort focused on technology-enabled inward remittances, Open Banking and the remote onboarding of merchants. Six applicants were shortlisted, and testing ran from January to June 2026 with regulatory guidance and support from SBP teams. In September 2026, the central bank announced that Swich, Digi Khata and Neem Exponential Financial Services had successfully demonstrated their Open Banking solutions, while Taptap Send UK and United Bank Limited (UBL) demonstrated a technology-enabled inward remittance solution. Findings from that round are expected to feed into the regulatory frameworks governing the wider financial services industry.
Four Themes Open for the Second Cohort
For the second cohort, the SBP is inviting proposals across four themes:
- Artificial intelligence in financial services — AI-driven products, credit models and automation for banking and finance
- Innovations in payments — new technologies, products and approaches to payment services and infrastructure
- Technology-enabled inward remittances — solutions that make it easier, faster or cheaper to send money home to Pakistan
- NextGen Financial Services — an open theme for other innovative financial solutions
The central bank has made clear that only proposals falling within these announced themes will be considered. Tentative plans point to cohort results being announced around September 2027, after a testing window running roughly from February to July 2027 and an exit stage in August.
How to Apply: Deadline November 30
Interested individuals and firms can submit applications until November 30, 2026, by email to regulatory.sandbox@sbp.org.pk, using the application form and step-by-step procedure set out in the SBP’s Regulatory Sandbox Guidelines on the central bank’s website.
The bar is deliberately set above a back-of-the-envelope pitch. Under the SBP guidelines, ideas at the concept stage will not be considered — the technology must already be built and partnerships in place. Startups without a licence can still apply, either alone or together with an SBP-regulated partner, provided they plan to seek authorisation after successful testing. Foreign companies can participate through a licensed partner or by establishing an office in Pakistan and obtaining a certificate of incorporation from the relevant regulator. The guidelines note that a fee applies, with the amount set when a cohort is announced.
First Cohort: What Swich Tested
Swich, which describes itself as a fintech building a Web3 merchant financial operating system, tested an Open Banking solution in the first cohort. Nisar A. Mughal, Head of Product at Swich, reflected on the company’s participation and acknowledged the support it received from SBP teams during the process. The announcement also recognised Noman Azhar, Co-Founder and Chief Officer at Zindigi, for his support and partnership throughout the journey.
Open Banking arrangements let financial information and services be shared between authorised institutions and third-party providers through controlled, permission-based mechanisms — arrangements that can connect financial accounts, widen access to financial information and help providers build more integrated digital experiences. For a young company, testing inside the sandbox offers a chance to assess a proposed service in a supervised setting, understand regulatory expectations and surface operational or compliance issues before pursuing a commercial launch.
What Sandbox Testing Does — and Doesn’t — Mean
Swich’s message carries an important caveat that every applicant should note: successfully completing sandbox testing does not itself amount to regulatory approval. The SBP has clarified that participants must obtain the necessary authorisation before commercially launching the products or services they tested. Swich’s participation is therefore best understood as a completed testing milestone — proof that its Open Banking solution worked under supervision — not confirmation that every element of its offering is authorised for unrestricted commercial deployment.
Still, the company’s willingness to recommend the process speaks to what the sandbox offers beyond a testing licence: a structured dialogue with the regulator while a product is being built, rather than a compliance headache after the fact. As the central bank puts it, the second cohort continues its effort to encourage financial innovation in Pakistan’s digital financial ecosystem while keeping consumer protection and financial stability firmly in view.
For startups working on AI, payments, remittances or anything that fits the open theme, the clock is now ticking. The guidelines, application form and theme briefs are all available on the official SBP website — and the deadline is just over a month away.
Sources: State Bank of Pakistan (Regulatory Sandbox guidelines and second-cohort notice), company announcement via LinkedIn. Reporting compiled from multiple independent outlets on October 23, 2026.
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