Fintech

Overview

Combining the words ‘financial’ and ‘technology’, fintech is technology-enabled financial innovation, which is changing the way financial institutions provide – and consumers and businesses use – financial services.

The Bank’s work on fintech aims to champion responsible innovation, which will benefit the financial system and broader economy in line with our statutory objectives.

Our work focuses on three cross-cutting technologies: artificial intelligence (AI), distributed ledger technology (DLT), and quantum computing.

While the Bank adopts a technology-agnostic approach to supervision and regulation – meaning we do not mandate or prohibit the use of certain technologies – we recognise that technology-specific benefits and risks may arise that have an impact on our statutory objectives. We work to understand and address this in a three-step process:

Identify technological developments emerging within financial services.

Assess how developments could affect our mission.

Work with others domestically and internationally to shape our response.

Artificial intelligence

AI offers the potential to usher in significant efficiency gains, boost productivity and transform the financial services sector, as well as the broader economy. The use of AI has increased in the UK’s financial services over the past few years, in both the number and types of use cases. While it has many benefits, including improving operational efficiencies and providing customers with personalised services, it could also present challenges to the safety and soundness of firms, and the stability of the financial system.

We are working proactively to ensure that the firms we regulate, and the wider financial system, can make safe and effective use of increasingly complex forms of AI.

AI Consortium

We launched the AI Consortium in May 2025 with the Financial Conduct Authority (FCA). It provides a platform for public-private engagement, gathering input from stakeholders on the capabilities, development, deployment and responsible use of AI in the UK’s financial services. The consortium brings together AI experts from across many sectors, offering diverse expertise and perspectives.

View the Artificial Intelligence Consortium webpage

Surveys on AI adoption

We have conducted surveys with the FCA to further understand how AI and machine learning is being deployed in the UK’s financial services, and the impacts this may have on our statutory objectives.

Artificial intelligence in UK financial services – 2024

Machine learning in UK financial services – 2022

The impact of Covid on machine learning and data science in UK banking

Machine learning in UK financial services – 2019

Previous work and publications on AI

April 2025: The Financial Policy Committee (FPC) published a Financial Stability in Focus (FSiF) publication on Artificial intelligence in the financial system.

April 2024: The Bank and the Prudential Regulation Authority (PRA) published a response to DSIT/HMT on our approach to AI.

October 2023: Jointly with the FCA, we published a feedback statement on Artificial Intelligence and Machine learning, based on responses to our discussion paper.

October 2022: In collaboration with the FCA, we published a discussion paper on Artificial Intelligence and Machine Learning.

February 2022: With the FCA, we published The AI Public-Private Forum: Final report.

Distributed ledger technology

Distributed ledger technology (DLT) offers the possibility to fundamentally rewire parts of the financial system to unlock beneficial outcomes for private actors and our objectives. The Bank is considering how regulatory and legal frameworks can support the responsible adoption of DLT, as well as the usability of new forms of digital assets and digital money.

Digital Securities Sandbox

Operated by the Bank and the FCA, the Digital Securities Sandbox (DSS) is a regulated live environment created to explore how firms could use developing technologies to undertake the activities of notary, maintenance and settlement for financial securities either alone, or with the operation of a trading venue. It facilitates the use of developing technology, such as distributed ledgers, in the issuance, trading and settlement of securities in the UK.

View the Digital Securities Sandbox webpage

DLT Innovation Challenge

Launched in collaboration with the Bank for International Settlements Innovation Hub London Centre, the distributed ledger technology (DLT) Innovation Challenge is engaging with the private sector to better understand the implications of incorporating DLT into wholesale central bank settlement. This initiative is designed to deepen understanding of how central bank money could operate across different settlement models and infrastructures.

View the DLT Innovation Challenge webpage

Previous work and publications on DLT

July 2024: We published our discussion paper, The Bank of England’s approach to innovation in money and payments.

November 2023: We published our discussion paper, Regulatory regime for systemic payment systems using stablecoins and related service providers.

April 2023: We concluded Project Meridian, an experiment with the Bank for International Settlements (BIS) Innovation Hub London Centre.

March 2022: The FPC published an FSiF on Cryptoassets and decentralised finance.

Quantum computing

Quantum computing could usher in a major technological leap in financial services in the coming decade. It represents a paradigm shift in computation and information processing, which could unlock beneficial use cases for firms – but could also pose risks and challenges. Our work on quantum computing marks the start of a commitment to navigating its transformative potential.

The Bank of England’s approach to innovation in AI, DLT, and quantum computing

This report sets out the Bank’s current and future work on these three technologies, and our approach to creating the environment necessary for safe innovation.

Financial Stability in Focus: Artificial intelligence in the financial system

This FSiF publication sets out the Financial Policy Committee’s view on specific topics.

DLT Innovation Challenge

In collaboration with the Bank for International Settlements Innovation Hub London Centre, we have launched this challenge to better understand the implications of incorporating DLT into wholesale central bank settlement.

AI Consortium minutes – May 2025

The AI Consortium published the minutes from its first meeting, which covered the challenges and risks of AI, potential strategies and mitigations, and benefits and opportunities.