The FinTech sector is a nascent market in the Czech Republic, with only around one
hundred regulated or unregulated FinTech firms. This report analyses the Czech FinTech
ecosystem and identifies possible hurdles to innovative development. The report also
provides recommendations for designing a regulatory sandbox tailored to the country’s
specificities and which could help alleviate some of the impediments to FinTech development.
A sandbox could enhance the Czech authorities’ understanding of the impact of innovative
mechanisms on financial activities, and enable supervisors to better monitor and ensure
compliance of FinTech activities. It could also enhance communication between firms
and authorities through targeted dialogue and customised guidance.