Methodology for the assessment of the criteria

to enter into the regulatory sandbox

	Key questions	Positive indicators	Negative indicators
The applicant’s readiness to participate in the regulatory sandbox and readiness of financial innovation for testing	Is the applicant in all respects ready for testing in the regulatory?
	Is the applicant ready to meet all requirements stemming from the legislation?	The applicant has analysed the legal aspects of the implementation of financial innovation and is able to meet the requirements of relevant legislation.	The applicant does not have a legal analysis regarding the implementation of financial innovation and therefore cannot guarantee that it is able to meet the requirements of the relevant legislation.
	Is the applicant ready to handle testing from a technical perspective?	Financial innovation is technically ready for implementation on the Slovak financial market.	The applicant is still working on the technical aspects of financial innovation and therefore is not able to implement financial innovation on the Slovak financial market in a short amount of time.
	Is the applicant ready to deal with the risks that may arise during the testing of financial innovation?	The applicant has already analysed the risks associated with the implementation of financial innovation and prepared measures to mitigate them.	The applicant has not analysed the risks that may arise in the implementation of financial innovation.
	Is the applicant for authorisation ready for the licensing procedure?	The applicant for authorisation is sufficiently prepared for the licensing procedure.	The applicant for a authorisation is not ready for the licensing procedure and will need a longer time before it is able to submit the relevant application for an authorisation.
	Does the applicant have a clear idea of what it expects from its participation in the regulatory sandbox?	The applicant has a clear idea regarding issues it would like to consult with the NBS, the practical implementation of financial innovation, and the course of testing.	The applicant has only a general idea regarding its participation in the regulatory sandbox and expects the NBS to provide comprehensive advice on which issues to focus on and how to practically implement financial innovation and test it within the regulatory sandbox.
	Does the applicant have sufficient resources for testing within the regulatory sandbox?	The applicant has sufficient financial and human resources, that enables him to successfully test financial innovation within the regulatory sandbox.	The applicant does not have sufficient financial and human resources, and therefore it is not clear whether it will be able to successfully test in the regulatory sandbox.
The existence of the need for testing	Is participation in the regulatory sandbox necessary for the implementation of financial innovation on the Slovak financial market?
	Does financial innovation raise questions about the correct application of relevant legislation within the competence of the NBS?	Uncertainties regarding the application of regulation prevent the applicant from successfully implementing financial innovation without participating in the regulatory sandbox.	The application of regulation is clear and does not raise questions.
	Does the applicant need to test financial innovation within the regulatory sandbox?	The applicant needs to test financial innovation before fully implementing it on the Slovak financial market.	The basic clarification of the applicable regulation (e.g., through an innovation hub) is sufficient for the applicant and it does not need to subsequently test the financial innovation.
Innovativeness	Is it financial innovation?
	Is the financial product, service, business model, or solution different from the offer of other financial market participants in the Slovak Republic, or does it improve existing financial products, services, business models, or solutions?	There are no comparable financial innovations on the financial market in the Slovak Republic or there are just a few of them.	A financial product, service, business model or solution is well established on the Slovak financial market.
		The financial innovation, which the applicant wants to test, brings a new approach based on technologies, which changes the current way of providing financial services in the Slovak Republic.	The financial product, service, business model, or solution does not contain an element of financial innovation.
Positive impacts on clients in the Slovak financial market and the absence of significant negative impacts on financial stability in the Slovak Republic	Does financial innovation have positive effects for clients?
	Does financial innovation have identifiable direct or indirect positive impacts on clients on the Slovak financial market?	Financial innovation will have direct positive impacts on clients in the Slovak financial market – e.g., through lower prices, easier access, or by expanding the offer of financial products and services.	Financial innovation does not have any identifiable positive direct or indirect impacts on clients.
		Financial innovation will have indirect positive impacts on clients – e.g., RegTech solutions that increase efficiency and reduce back-office costs.	Financial innovation can place clients in jeopardy.
			Financial innovation can have significant negative impacts on financial stability in the Slovak Republic.