Fintech could make banking more resilient, says Bank of England

Financial technology could help to make the banking system more resilient, according to the Bank of England.

The fintech sector is fast-emerging, resulting in banks offering more innovative services such as mobile payments and apps.

Stability

The Bank of England is now planning to act to make sure that financial technology achieves its promise of boosting growth and promoting greater financial stability, with the bank already providing support to the sector through its FinTech Accelerator and approving four mobile bank apps since 2016.

The UK’s financial technology sector is worth nearly £7 billion, with over 60,000 people in Britain currently working in the industry. The Bank of England has assisted businesses in the sector, supporting their growth through its FinTech Accelerator.

Diversity

Speaking at the International Fintech Conference in the City, Bank of England Governor Mark Carney commented on how the fintech sector will affect banking, stating: “Fintech could help make the system itself more resilient with greater diversity, redundancy and depth. These possibilities are why the Bank has already taken a number of steps to encourage fintech’s development.”

He added that the Bank of England’s Financial Policy Committee is authorised to evaluate new and emerging risks to financial stability, including those that might exist beyond the current regulatory perimeter, and it now has the powers to treat similar risks consistently, wherever they originate.

He stated that with this approach, the Bank of England can help to build the right infrastructure for fintech to realise its promise.

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