The Bank of England is working with fintech firms on a number of proof of concepts (POCs) through its FinTech Accelerator launched in June 2016, which includes data analytics, information security, and distributed ledgers.
This was revealed by Charlotte Hogg, the bank’s Chief Operating Officer, in a speech given last week. Hogg said:
“All POCs are work on problems or challenges that are important to us, and the firms are carefully chosen through an open process based on our published criteria”.
She emphasized that the FinTech Accelerator is not only about tools and technologies, but also about “cultural change”.
“Recognising the importance of cultural change, in all our POCs we seek to learn from the fresh approach and skills of start-up colleagues to adapt our approaches”, Hogg added.
She further explained that the bank’s recent POC on a simple distributed ledger trialed non-traditional ways of technology development including through co-located cross-discipline working, taking a continuous approach to build and integration of the technology, and automating testing built in from the outset.
In addition to blockchain, the FinTech Accelerator is also working on a POC with BMLL Technologies that uses a machine learning platform, applied to historic limit order book data, to spot anomalies and facilitate the use of new tools in our analytical capabilities. Another POC, with Enforcd, uses an analytic platform designed specifically to share public information on regulatory enforcement action.
“For Fintech, I think there remain real questions around the potential risks and as yet unknown ramifications”, Hogg added. “Today, we’ve opened our next call for applications as we seek to further our research and work, continuing to bridge the gap between institution and innovation.”
