The United States offers unique opportunities for FinTech companies across its 50 states, each of which serve as laboratories for innovation and regulation. Arizona's efforts place it among several other states at the forefront of financial technology, laying the groundwork for companies to test their products and services in a safe and permissive regulatory environment. In the meantime, other states are able to observe and learn from Arizona's efforts in order to implement regulatory sandboxes and, eventually, sound regulatory frameworks of their own.
The Fintech Council and the Arizona Sandbox are unique given there are no domicile restrictions on the financial institutions or fintech applicants. The Arizona Fintech Sandbox eases regulatory burdens for fintechs while allowing them to partner with financial institutions testing innovative products and services. It is a great opportunity for new entrants whether it be startups or established companies new to the US marketplace. Participating financial institutions can enter prospective partnerships with, invest in or outright acquire some of the participating fintech companies.