Bank of England’s Focus on Payment Technology Supervision

02/27/2023 10:55 • Tech Ticker • 144 views

It is reported that Ben Broadbent, the deputy governor of the Bank of England in charge of monetary policy, said that the Bank of England is most concerned about the supervision of new payment technologies. So far, the experience of digitalization is that new products and services promoted by new technologies can be adopted on a large scale very quickly, which clearly brings opportunities for financial institutions, enterprises and individuals. We hope to see continuous improvement and reduce the friction and cost of payment.

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The Bank of England has recently expressed its concern regarding the supervision of new payment technologies. Ben Broadbent, the deputy governor of the Bank of England responsible for monetary policy, has stated that the rapid adoption of digital products and services, which are promoted by new technologies, creates opportunities for financial institutions, enterprises, and individuals. However, there is a need for continuous improvement to reduce the friction and cost of payment in digitalization.

The rapid development of technology has led to the emergence of new payment methods, such as mobile payments, online payments, and contactless payments. These new technologies have revolutionized the way people make transactions, offering faster and more convenient methods of payment. It has opened up new opportunities for businesses to reach customers in different ways and expand their customer base.

The Bank of England recognizes the importance of payment technology in economic growth but also understands that it can pose a threat to financial stability if not properly regulated. Therefore, the Bank of England is focusing on supervising payment technology innovation to ensure that these new payment methods are secure, efficient, and compatible with existing payment systems.

The Bank of England’s approach to payment technology supervision is to balance innovation and regulation. The bank understands the need for continuous improvement to make payment technology more accessible and less expensive for all. As noted by the deputy governor, the bank aims to reduce the friction and costs of payment, which will ultimately bring benefits to individuals, businesses, and financial institutions.

In conclusion, the Bank of England recognizes the potential of payment technology to contribute to economic growth. However, it understands that there is a need for proper supervision to ensure that payment technology is secure, efficient, and aligned with existing payment systems. The bank’s focus on payment technology supervision highlights the importance of striking a balance between innovation and regulation, leading to a win-win situation for individuals, businesses, and financial institutions.

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