Abstract
This paper presents an end-to-end analysis of Fintech-driven sandboxes, with a particular focus on Latin America. Contrary to the procedural approach characterizing sandbox research, our analysis adopted the managerial perspective, and resulted in a theoretical and applicable framework. For this purpose, we initially characterized the motives, the conditions, and expected outcomes that sustain sandbox experimentation. Subsequently, based on the analysis of web resources, we drew comparisons between cases and the literature. Third, an inverted Gioia method is utilized to guide the characterization of sandbox models within our framework. The results indicate the presence of similar patterns in sandbox experimentation, providing justification for the choices made by each model to enable Fintech entrepreneurship. These patterns include the following: Latin America’s fragmented and gradual approach to engagement; the search for market efficiencies around payments, investment, and lending; the primacy of capital flow intermediation, and the participation of both incumbent and new ventures. These findings contribute to the advancement of our knowledge about the influence of sandbox model designs on Fintech development, with practical implications for entrepreneurs and regulators. Furthermore, the framework proposed in this paper may prove beneficial in understanding institutional experimentation and advancing Fintech in other world regions beyond Latin America.
