Bank Negara Malaysia (BNM) has opened applications for the latest cohort of its Financial Technology Regulatory Sandbox Green Lane, offering eligible financial institutions an accelerated pathway to test innovative financial solutions facing regulatory hurdles.
Applications are open from July 1 to July 31, 2026, with the Green Lane designed to streamline the testing process through a one-off institutional assessment and a simplified registration process for new solutions.
The initiative is primarily targeted at licensed financial institutions, including banks, development financial institutions, insurers and takaful operators, as well as money services businesses that demonstrate strong governance, compliance and risk management capabilities.
Under the Green Lane framework, applicants must submit a portfolio of proposed solutions for testing, including details of the business model, target market, regulatory barriers and intended testing timeline. Institutions are also required to provide an assessment of the aggregate cap on expected financial losses arising from the proposed solutions.
Testing conducted under the sandbox will be limited to 20,000 customers over a 12-month period.
Once approved, participating institutions will be able to utilise a simplified registration process for subsequent innovative solutions before commencing testing under the Green Lane, allowing faster deployment compared with the standard sandbox process.
BNM said the initiative is intended to encourage responsible financial innovation while ensuring appropriate safeguards remain in place during the testing phase.
The central bank noted that non-financial institutions, including fintech companies, may still participate in the regulatory sandbox through the standard sandbox track or by collaborating with eligible financial institutions participating in the Green Lane.
