Embracing the Promise of Fintech

14 Pages Posted: 6 Nov 2019

Date Written: March 22, 2019

Abstract

The UK economy is becoming increasingly digital with high levels of smartphone and internet penetration, a growth in e-commerce, the emergence of new technologies and an enhanced ability to capture and analyse large amounts of data.

Fintech is supporting this shift by enabling new players and business models to enter the market. This could increase competition, meet unfulfilled customer needs, reduce inefficiencies and change financial services. Overall, this could create a more efficient, effective and resilient financial system. At the same time, new risks to financial stability may emerge and existing risks could be amplified.

The Bank of England’s mission is to promote the good of the people of the UK by maintaining monetary and financial stability. As such, it seeks to understand what fintech means for the stability of the financial system, the safety and soundness of financial firms, and its ability to perform its operational and regulatory roles.

The Bank of England is committed to embracing fintech to deliver its mission. As such, it is upgrading its hard infrastructure — particularly its payments architecture — to enhance security and support innovation, while also updating its ‘soft infrastructure’ — including rules and regulations — to mitigate potential risks. The Bank of England is also applying new technology to enhance its own capabilities.

Suggested Citation

Mnohoghitnei, Irina and Scorer, Simon and Shingala, Khushali and Thew, Oliver, Embracing the Promise of Fintech (March 22, 2019). Bank of England Quarterly Bulletin 2019 Q1. Available at SSRN: https://ssrn.com/abstract=3419994

Irina Mnohoghitnei (Contact Author)

Bank of England ( email )

Threadneedle Street
London, EC2R 8AH
United Kingdom

Simon Scorer

Bank of England ( email )

Threadneedle Street
London, EC2R 8AH
United Kingdom

Khushali Shingala

Bank of England ( email )

Threadneedle Street
London, EC2R 8AH
United Kingdom

Oliver Thew

Bank of England ( email )

Threadneedle Street
London, EC2R 8AH
United Kingdom

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