Future Forum | Bank of England

Role of the Bank's Fintech Hub

by
Future Forum
Future Forum | 3 months ago | in Banking on a new world

Our work on fintech is wide ranging and looks at how technology is changing financial services.

Developments in financial technologies, such as artificial intelligence (AI) and distributed ledger technology (DLT), have the potential to fundamentally change the way businesses can provide – and consumers can use – financial services. 

In his speech on The Promise of Fintech our Governor, Mark Carney, said “there are clear prospects for new financial technologies to make the financial system more efficient, effective and resilient.”  

We take a keen interest in exploring how innovation and developments in fintech might support our mission to promote the good of the people of the UK by maintaining monetary and financial stability. 

In particular, we seek to understand what fintech means for the stability of the financial system, the safety and soundness of financial firms, and our ability to perform our operational and regulatory roles.

Our Fintech Hub brings together all of our work in this area. Sir Dave Ramsden, our Deputy Governor for Markets and Banking, spoke about the importance of being open to fintech when he launched the hub.

Post any questions to the Bank's Fintech team below and for further info visit:

https://www.bankofengland.co.uk/research/fintech

 

edited on Oct 31, 2018 by Future Forum
Generic user icon
This comment has been removed

Ramblingsofabard 3 months ago

There is a lot of hype around fintechs or tech in general, and it often feels like there is a tech bubble (even if it is more of a social bubble). The last two years have seen a dramatic rise in fin tech startups in the UK. When the BoE talks about the soundness of the “firms”, is it only referring to the traditional financial companies or includes fintechs as well? What would be a criteria to regulate a fintech?

Shelley (BoE Moderator) 3 months ago

Good question!
The Bank of England talks about the safety and soundness of the financial system, this can include FinTechs. This is an area the Bank is getting more involved in with the FinTech Hub now being introduced.
In regards to regulating a FinTech, the PRA only regulate those firms that meet a set criteria. At the moment, the current Fintechs do not fit this criteria - however, who is to say that they won't branch into this in the future!
If you would liek to find out more about Supervision and what falls into the PRA remit, you can find out more here: https://www.bankofengland.co.uk/prudential-regulation/supervision
We actually released an updated version of our Approach Documents on 31 October.
You can also find out more about 'New Banks' here: https://www.bankofengland.co.uk/prudential-re...k-start-up-unit
And our FinTech hub here: https://www.bankofengland.co.uk/research/fintech

Ramblingsofabard 3 months ago

Thanks for sharing! Pretty interesting and some fintechs might soon be approaching the criteria!

Sabrina Rochemont 3 months ago

Very good point- as seen before, consolidation follows strong phases of innovation. Sadly, as these Fintechs enable transactions/ play with our money, how will consumer deposits be protected when some early entrants collapse? Would proactive regulation assist with rebuilding public trust in financials?
This links in to posted idea: Technology: Compliance requirements for IT services that underpin payment systems.

View all replies (3)

Dr Robert Jones 3 months ago

The greatest threat to this idea is the gap between the keyboard and the screen.the second biggest threat is the operating software. The control and development of operating software should be UK based only and most likely to be Fintech opensource as its an agile scalable development model. Operating systems such as the UK based open enterprise system oios openindiana has been received well. https://en.wikipedia.org/wiki/OpenIndiana

Shelley (BoE Moderator) 3 months ago

Thank you for your comments.

Amy Buckingham 2 months ago

This idea has been advanced to the next phase

Amy Buckingham 1 month ago

This idea has been advanced to the current phase

Share