Bank of England selected to host BIS Innovation Hub

In a recent press release, the Bank of England announced that it had been selected to host the Bank of International Settlements (BIS) Innovation Hub.

An event which will see the UK centre providing support to the banking and wider financial services community through the development of ‘digital public goods’ (open source software). 

It is hoped that the decision will help solidify the country’s standing in the international business community as a financial, innovation and technology leader.

“The UK is home to a world-leading fintech sector and is at the forefront of innovation – so it’s fantastic the Bank of International Settlements has chosen to establish a Hub Centre in London,” commented Rishi Sunak, Chancellor of the Exchequer. 

“It presents an invaluable opportunity to connect the expertise of the world’s central banks, working collaboratively on innovative new ways to enhance financial services.”

In the pursuit of financial stability

Founded in 1930, BIS is owned by 62 central banks in countries all around the world (accounting for 95% of global GDP). Headquartered in Switzerland, the organisation is dedicated to bringing about monetary and financial stability through international cooperation.

BIS’ medium-term strategy ‘Innovation BIS 2025’ is a plan centred on fostering continuous technological development in terms of analytical and business capabilities. It is hoped that initiatives within the plan will promote a dynamic work environment and create added value for stakeholders.

The mandate for the BIS Innovation Hub is to track, identify and expand on the most prominent financial trends in the market, creating an international forum which can facilitate collaboration for banking experts. 

Topics currently under consideration include digital currencies, payment innovations, regtech and the digitalisation of trade finance.

The possibilities of technology

Andrew Bailey, Governor of the Bank of England, stated that he was proud and excited to host the Innovation Hub in the UK, citing the present need for open collaboration and exploration into the possibilities of technology:

“Now more than ever it is important the central banking community does all it can to build a more effective, resilient and inclusive financial system and technology is an important part of that effort. 

“By involving central banks and prudential regulators in this important work, we can help to ensure that innovation is consistent with our objectives of safety and soundness and financial stability. This centre provides an important venue to ensure the UK’s deep expertise in innovation can contribute to solving global financial issues,” he said.