Future of Finance: Review on the outlook for the UK financial system

FOREWORD

The Governor asked me last year to lead a review of the Future of Finance British financial system, and what the Bank of England needs to say about plans, resources, and capabilities over the next decade.

We agreed that this work should be based on how Future of Finance money contributes to the national economy. And on the other hand, how can the Bank improve, strengthen competition and build resilience. The team and I keep this in mind.

Over the past nine months, I have met with over 300 businesses, financiers, professional companies, international retailers, retail organizations, charities, legislators, and business leaders in the UK and abroad.

At every table or conference, I asked for practical advice on how to improve our finances and what we could learn from other vendors or pilots. For example, CEO Tom Blomfield and his team at Monzo use technology to demonstrate and provide valuable banking information to British customers. Better digital data in the UK, he argued, could help lower the cost of capital in non-functioning sectors. Allowing the distribution of all information, such as tax refunds, he said, could help open up funding for small businesses.

I also looked at how data mining and marketing can improve the pipelines of major markets and strengthen competition. Unfortunately from my meetings, the world’s largest property owners, insurance companies, stockbrokers and indexers have not felt they have enough experience to assess or prepare a company for any climate change.

I explored new problems and crises. Is the British currency very safe online and how can it be improved? What would happen if big tech companies put their fingers in the financial services to go deeper? What can we learn from China’s experience in leading the Internet market in financial services? Where are the problems of a decade of global valuation? I tried to compare deep thinking with evidence and truth. For example, Visa Europe CEO Charlotte Hogg explained how their team uses technology to reduce crime and wage disputes. The payment system could be strengthened if there are plans for companies to agree to “intervene” with each other if that is not possible, he said.

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