The future of finance report

July 2, 2019 Digital, NEO, Open Banking, Open Finance, Enterprise, Fintech AI/ML, Data-driven, FinTech and Alternative Finance, Fintech International, Innovation and Resources, Legal Issues, Regulation, Consultation No comments

Bank of England Review of UK’s financial system | By Huw van Steenis | June 20, 2019

Overview

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.

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.

See:

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

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

Download the 148 page PDF report --> here

NCFA Jan 2018 resize - The future of finance report The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org