BIS-监管沙盒：对金融科技融资的影响（英文）-2020.11-42页_468kb

Summary of "Inside the Regulatory Sandbox: Effects on Fintech Funding"

Core Content

This paper examines the impact of the UK's regulatory sandbox on fintech firms' access to capital. The study uses detailed data on fintechs in the UK from 2014q1 to 2019q2, analyzing both treated (sandbox) and control firms to assess the effectiveness of the sandbox in facilitating funding. The findings suggest that the sandbox significantly improves fintechs' ability to raise capital.

Main Findings

• Capital Raised Increase: Firms entering the sandbox see a 15% increase in capital raised post-entry, compared to firms that did not enter. This corresponds to an average increase of $700,000.
• Probability of Raising Capital: The probability of raising capital increases by 50% for sandbox firms.
• Effectiveness Across Cohorts: The results are consistent when comparing firms from earlier to later sandbox cohorts, indicating that the effect is not limited to the first entrants.
• Mechanisms Identified:
  • Reduced Asymmetric Information: Sandbox entry is associated with an increase in first-time investors and a higher share of foreign investors, suggesting that the sandbox reduces information asymmetry.
  • Reduced Regulatory Costs/Uncertainty: The presence of a dedicated case officer helps firms navigate regulatory complexities, thereby reducing costs and uncertainty.
  • No Evidence of Marketing Effect: The study finds no support for the idea that the sandbox acts purely as a marketing device, as the effects are more pronounced for smaller and younger firms, and for venture capital deals, which are more sensitive to information.

Key Insights

• Non-Random Selection: While the selection into the sandbox is not random, the study finds no differential pre-trends across firms and that the entry date is not systematically correlated with firm characteristics, supporting the validity of the results.
• Robustness Checks: The results are robust to various control variables and alternative estimation methods, including negative binomial regressions and propensity score matching.
• Early Effects: The strongest effects on capital raised occur in the first two quarters after sandbox entry, indicating that the sandbox acts as a signal of quality rather than a gradual revelation of firm attributes.
• Policy Implications: The study highlights the importance of regulatory sandboxes in promoting financial innovation while addressing risks. It also contributes to the debate on the effectiveness and purpose of regulatory sandboxes, suggesting that they can be a valuable tool for policymakers aiming to foster fintech growth without compromising financial stability or consumer protection.

Data and Methodology

• Data Source: PitchBook data is used to track capital raised by fintechs in the UK, including details on deal size, type, and timing.
• Sample Selection: The study includes 118 sandbox firms and a matched sample of 1,400 control firms. After data cleaning and trimming, the final sample consists of 56 sandbox firms and 158 control firms, with a total of 908 firm-quarter observations.
• Empirical Strategy: The paper employs a difference-in-differences approach, exploiting the staggered introduction of the sandbox to identify its effects. It also uses coarsened exact matching to ensure that control firms are comparable to sandbox firms in terms of observable characteristics.

Conclusion

The paper provides first empirical evidence that regulatory sandboxes can effectively improve fintech firms' access to capital. The results are consistent across different methodologies and suggest that sandboxes help reduce information asymmetry and regulatory uncertainty, thereby supporting innovation. The findings underscore the importance of sandboxes as a policy tool for fostering financial innovation and highlight the need for further research on their long-term effects on financial stability and consumer welfare.