Fintech

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

Why we are interested in how technology is changing financial services 

Developments in financial technologies (fintech), 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.

Set of scales

Understanding how fintech developments may affect systemic stability.

Padlock

Understanding how fintech developments may affect the safety and soundness of firms.

Applying fintech, where appropriate, to enhance our capabilities.

Our Fintech Hub brings together all 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.

If you would like to get in touch, you can reach us at fintech@bankofengland.co.uk

You can also find out more about our related work on digital currencies.

AI and Machine Learning Conference

The Bank of England, Centre for Economic Policy Research (CEPR) and Brevan Howard Centre at Imperial College Business School joined together to deliver ‘The Impact of Machine learning and AI on the UK Economy’ conference.

Open data for SME finance

In March 2020, we published Open data for SME finance.

The paper builds on the Bank’s response to the Future of Finance Report, where the Bank proposed an Open Data Platform to boost access to finance for SMEs.

The Open data for SME finance paper explains the proposal in more detail, and provides an update on what we have learnt from our research and industry engagement to date. It will guide the Bank’s ongoing engagement with public authorities, including as an input to the Government’s Smart Data Review and Digital Markets Taskforce, as well as the FCA’s Open Finance initiative. In particular, this paper will form part of the Bank’s input to the Government summit announced in the March 2020 Budget, looking at what further data needs to be made accessible to make it faster and easier for SMEs to shop around for credit.

If you have comments on the Open data for SME finance paper, you can contact us at fintech@bankofengland.co.uk.

Artificial Intelligence Public-Private Forum

In June 2019, our Governor Mark Carney announced plans to set up a forum to look at the impact of artificial intelligence (AI) and machine learning (ML) on financial services.

In October 2019, we published Machine Learning in UK Financial Services with the Financial Conduct Authority (FCA).

We are now working with the FCA to establish the forum and have published the forum’s terms of reference

The AI Public-Private Forum (AIPPF) will seek to:

  • share information and understand the practical challenges of using AI and ML within financial services, the barriers to deployment and any potential risks or trade-offs
  • gather views on areas where principles, guidance, regulation or good practice examples could support safe adoption of these technologies
  • consider if firms’ involvement could be useful and what form it could take

The list of members can be found here.

The forum’s launch event and first meeting were originally scheduled to take place on 30 March 2020. However, in line with the UK Government’s advice regarding Covid-19, we decided to postpone these until 12 October 2020. 

If you have any queries regarding the AIPPF, please contact fintech@bankofengland.co.uk.

Future of finance

In his Mansion House speech in June 2018 our Governor, Mark Carney, outlined that “a new economy, a new world and new demographics demand a new financial system” and that the Bank is creating the new hard and soft infrastructure that the new finance will require.

He has appointed Huw van Steenis to lead a project on the future of finance, exploring what the financial system of tomorrow might look like, including fintech developments, and what it means for the Bank of England’s priorities now and in the future.

Working with fintech firms

We started our proofs-of-concept programme in 2016 under our Fintech Accelerator project. We'll continue to work with businesses on fintech proofs-of-concept whenever this may help us fulfil our mission. 

Find out about the proofs-of-concept we have worked on. 

Fintech firms offering financial services in the UK

If you are a fintech firm thinking of providing financial services in the UK, you may need to be regulated.

The Bank of England is responsible for supervising financial firms such as banks, building societies, credit unions, major investment firms and insurers. And we provide information and support for businesses that are thinking of setting up a new bank in the UK. 

We also supervise financial market infrastructure and we act as settlement agent for payment systems. 

Financial services in the UK are also regulated by the Financial Conduct Authority and UK payment systems are also regulated by the Payment Systems Regulator.

This page was last updated 26 May 2020
Was this page useful?
Add your details...