FinTech’s promise arises from its potential to ‘unbundle’ banking into its core functions, according to the governor of the Bank of England, Mark Carney.
Speaking to delegates at the International FinTech Conference in London this week, Carney explained the possibility of unbundling banking could be realised by new entrants and the incumbents who are adopting their technologies.
“FinTech’s promise springs from its potential to unbundle banking into its core functions of settling payments, performing maturity transformation, sharing risk and allocating capital,” he said.
Carney explained the challenge for policymakers is the “ensure FinTech develops in a way that maximises the opportunities and minimises the risks for society.”
The Bank of England is striving to build the right infrastructure to encourage FinTech, with initiatives like the FinTech Accelerator launched last year.
“We have worked with a number of firms on proofs of concept ranging from strengthening our cyber security to using AI for regulatory data, and improving our understanding of distributed ledgers,” Carney added.