The Bank of England continues to embrace change and the rise of fintech; focusing on new technologies that are changing the way financial institutions do business. They have recently been outspoken about two key technology trends, RPA and central bank digital currencies. These two technologies have the potential to be major aspects of digital transformation in financial services.They may also be the key to economic refocus4day Industrial Revolution.
RPA has the potential to change everything
When companies talk about the implementation of their AI strategy, they are often talking about how they are implementing robotic process automation. AI is the buzzword discussed at industry conferences; RPA is real face technology.
Widely seen as a major enabler of organizational transformation, robotic process automation (RPA) is the process of using programmed software to automate basic tasks across applications, offloading employees from repetitive, simple tasks. Cost-effective processes are able to be developed and deployed within weeks and often demonstrate return on investment within months.
The banking industry is exploring the potential of RPA to break down larger jobs and reduce human labor. RPA has proven effective in handling work overflow in this way, as well as tasks involving large amounts of data.
The recently appointed Governor of the Bank of England, Andrew Oldham, made this the subject of his first major speech on financial technology since taking office. The theme was “Reinventing the wheel (with more automation)”.
The presentation details the rapid changes currently taking place in the payments ecosystem. Most specific is the drive to innovate and implement new technologies in an increasingly digital society.
Is the future a virtual Sterling?
In 2019, blockchain was largely at the trough of disillusionment. The buzz is gone, replaced by cynicism about the lack of implementation of DLT in the real world. This year saw renewed optimism about the opportunities blockchain presents; most specifically centralized digital currencies replacing traditional currencies.Mr Oldham in his September 3 statementroad speech;
“Surely a digital central bank currency will solve the problem of declining paper money usage without the complications of the safeguards needed around stablecoins?” Yes and No are the answers to my doubts. That’s a good question and should be considered (and is being considered), but the answer isn’t there yet. This is a big question.
Providing a CBDC would allow widespread use of central bank money in digital form.but any launch
A CBDC would require careful consideration in advance to fully explore all issues and implications in order to make an informed decision; including determining that there will be demand for such a thing. ‘*
An ambiguous answer might seem; but it is clear that RPA and central bank digital currencies are both clear themes that the Bank of England is considering advocating in a post-COVID world. Conveniently, they were also central topics on this year’s FinTech Connect agenda.
Hear how the Bank of England continues to innovate from William Lovell, Head of Future Technologies, who will be keynote at FinTech Connect’s Blockchain Connect segment on December 4thday.