Regulation Backed Innovation: Enabling New Technologies to Flourish

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March 2025: Insights from Pay360 by Calypso Harland, Founder, Fintech Fringe

Hosted on the Innovation Stage at Pay360 by Fintech Fringe, this panel explored how regulatory frameworks like the FCA’s AI Sandbox can empower innovation while safeguarding compliance.

Moderated by Claire Conby, Director at Finnovation UK, the discussion brought together leaders from across fintech, payments, and policy:

  • Dr Louise Beaumont, SVP Open Data Global Engagement, Mastercard

  • Heather Lee, Global Head of Payments Strategy, SWIFT

  • Tom Bull, Partner, UK, Head of FinTech Growth, EY


Together, the panel explored how sandboxes, collaboration, and regulatory adaptability are shaping the next era of fintech growth.

Regulation: A Catalyst, Not a Constraint

The panel opened with a clear consensus: regulation isn’t a blocker, it’s the backbone of fintech innovation.

Tom Bull set the tone by highlighting how the UK’s open banking regime has already laid the foundation for change.

“It’s the collision between regulatory drivers—like transparency and fairness—and relentless customer focus that’s driving market momentum.”
Tom Bull, EY


Compliance as a Competitive Edge

Dr Louise Beaumont built on this by urging fintechs to think commercially about regulation, not just as a cost centre, but as an engine of growth.

“Open banking started as a compliance response. Now we need a commercial one.”
Dr Louise Beaumont, Mastercard

CBDCs, Interoperability & Avoiding Digital Islands

Heather Lee gave an insider’s view of how SWIFT is working with central banks, financial institutions and blockchain players to ensure innovation doesn’t lead to fragmentation.

“There’s huge innovation in digital assets—but without interoperability, we risk creating digital islands.”
Heather Lee, SWIFT

Scaling the Sandbox

Sandboxes have helped de-risk innovation, but the panel called for broader access and bolder ambition. Louise, who co-developed the UK’s first regulatory sandbox, said its value lies not only in testing tech, but in building mutual understanding.

“The sandbox gives fintechs legitimacy—and gives regulators a crystal ball into the future.”
Dr Louise Beaumont, Mastercard

Friction, Hurdles and the Path Forward

While the tone was optimistic, the speakers were clear-eyed about the challenges.

Louise outlined five core barriers fintechs face, including vague rules, slow timelines, and the opaque nature of the authorisation process:

“You’ve got to raise enough money to get through a process where you don’t know how long it’ll take.”

Advice for Fintech Founders

Tom Bull called for more FCA support for scale-ups, especially around consumer duty and operational resilience:

“Embed the regulator’s ethos early, don’t treat compliance as a bolt-on.”

Heather Lee stressed ecosystem collaboration:
“Payments is a team sport. The more we align tech, regulation and infrastructure, the better it flows.”

Dr Louise Beaumont urged founders to understand not just the rules, but the reasons behind them:
“Regulations change fast. Your business model needs to flex just as quickly.”

Practical Takeaways

  • See regulation as a strategic tool. Treat compliance as part of your product, not a blocker to it.

  • Start with the sandbox, it helps shape your product, de-risk your model, and shorten the authorisation journey.

  • Plan for ambiguity. Understand the time, cost, and complexity of interpreting evolving rules.

  • Push for interoperability. From CBDCs to cross-border payments, collaboration prevents fragmentation.

  • Keep the regulator close. Participate in consultations, working groups, and open dialogue.