The future of finance: executive summary

By Huw van Steenis
Published on 20 June 2019


My report, The Future of Finance , looks at how the economy is changing; how finance can serve and support these changes; and what it could mean for the Bank of England.

We have looked beyond the immediate challenges posed by the UK’s withdrawal from the EU to identify longer-term trends shaping the economy and finance — and how the Bank can support this evolution for the good of the people of the United Kingdom.

PDFRead the report’s executive summary

Huw van Steenis

Huw van Steenis

My findings and recommendations in a nutshell

A new economy is emerging driven by changes in technology, demographics and the environment. The UK is also undergoing several major transitions that finance has to respond to.

What this means for finance

Finance is likely to undergo intense change over the coming decade. The shift to digitally-enabled services and firms is already profound and appears to be accelerating.

The shift from banks to market-based finance is likely to grow further.

Ultra low rates, new regulations and the need to invest in updating their businesses mean many UK and global banks are struggling to make their cost of capital.

Brexit and political and policy changes around the world will also impact the shape of financial services.

Risks are likely to shift.

Regulators and the private sector have to collaborate in new ways as technology breaks down barriers.

Finance is hugely important to the UK and the right infrastructure can support new finance.

What we ask the Bank of England to do

  1. Shape tomorrow’s payment system
  2. Enable innovation through modern financial infrastructure 
  3. Support the data economy through standards and protocols
  4. Champion global standards for markets
  5. Promote the smooth transition to a low-carbon economy
  6. Support adaption to the needs of a changing demographic
  7. Safeguard the financial system from evolving risks
  8. Enhance protection against cyber-risks
  9. Embrace digital regulation
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