PHOENIX - Attorney General Mark Brnovich announced the addition of Grain Technology, Inc. and Sweetbridge NFP, Ltd. to the Arizona FinTech Sandbox, bringing the total number of participants to three since the program was launched in August.
Grain Technology, Inc., based in New York, will test a savings and credit product in Arizona using proprietary technology to offer consumers customized savings plans and credit opportunities. Arizona consumers participating in the program will obtain access to a small line of credit aimed primarily at providing overdraft protection for bank accounts. Annual percentage rates (APR) for loans obtained through this line of credit may be as low as 12% for consumers who agree to follow a recommended repayment plan calculated using Grain’s technology (a standard APR of 15.99% will apply for those who adopt a different repayment plan). Grain intends for loans and payments occurring through this line of credit to be reported to major credit-reporting agencies to enable consumers to build their credit profiles.
Sweetbridge NFP, Ltd., a Scottsdale-based international nonprofit building blockchain protocols for supply chains and commerce, will test a lending product using proprietary blockchain technology with an APR cap of 20%. At these rates, Sweetbridge’s product will allow consumers to obtain credit at up to 1/10th the cost allowed under Arizona law.
Arizona is the first state in the United States to create a FinTech Sandbox. The program eases regulatory burdens for entrepreneurs to test innovative FinTech products and services while maintaining consumer protections. Once accepted into the program, the company must tell consumers they are part of Arizona’s FinTech Sandbox before testing their product/services. Currently, the Attorney General’s Office is reviewing several additional applications from established businesses and startups that cover a diverse variety of money transmission and lending products.