Arizona Fintech Sandbox

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Under Arizona Revised Statutes (“A.R.S.”) §§ 41-5601 to 41-5612, a Regulatory Sandbox (“Sandbox”) for certain types of financial products and services is now available in Arizona.  The Sandbox enables a participant to obtain limited access to Arizona’s market to test innovative financial products or services without first obtaining full state licensure or other authorization that otherwise may be required.  The Arizona Attorney General’s Office is responsible for the admission process into and oversight of the Sandbox.

By establishing a regulatory environment that allows entrepreneurs to launch and test products on a smaller scale without having to incur the costs of becoming fully licensed under state law, financial innovation has a chance to succeed.


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What is the Regulatory Sandbox?

The Regulatory Sandbox is a program established under Arizona law to foster innovation by enabling a business to obtain limited access to the Arizona market to test innovative financial products or services without first obtaining a state license or other authorization that otherwise might be required. The Arizona Attorney General’s Office is responsible for administering the Sandbox. Once a business is allowed to enter the Sandbox, it may perform limited testing subject to certain restrictions depending on the product or service being tested.

What is FinTech?

FinTech is an abbreviated term for “financial technology.” FinTech encompasses new ways of providing traditional financial services, such as banking, payment systems, or investment advice. Accessing a bank account and making transfers via a smartphone app (commonly called mobile banking) is one example of a FinTech product. There are many different FinTech products, but each at its core delivers a financial service to a consumer in an innovative way.

Why was the Sandbox created?

Attorney General Mark Brnovich initiated the Sandbox legislation, sponsored by Representative Jeff Weninger, to encourage businesses to develop innovative products and services in the financial services sector. Creating the Sandbox has sent a strong message that Arizona is leading the way in fostering innovation aimed at making financial products and services more available, affordable, and safe for consumers.

Why does the Attorney General’s Office administer the Sandbox?

The Attorney General is the chief law enforcement officer in Arizona and responsible for consumer protection in the state. Because of this responsibility, the Attorney General’s Office is best situated to administer the Sandbox.

What role does the Attorney General’s Office play in the Sandbox?

The Attorney General’s Office accepts and reviews applications, consults with other state agencies, monitors businesses in the Sandbox, and if necessary, takes enforcement actions regarding any violations of law.

If I am accepted into the Sandbox, will the Attorney General’s Office provide me legal advice?

No. The Attorney General’s Office cannot provide legal advice and does not represent individuals or businesses applying to or admitted to the Sandbox. Legal advice should be sought from a private attorney.

Haven’t found an answer to your question?

Visit the official Arizona Fintech Sandbox website for more answers to FAQs -