UK Poised for Financial Technology Revolution, Bank of England Official Says

Bank of England Deputy Governor Sarah Breeden believes the UK is on the brink of a financial technology revolution that will significantly reduce the cost of using money. She also mentioned the potential for micropayments and automatic payments for goods delivery. Urgent action is required to ready the UK finance sector for this technological shift, which could introduce new players and pose a threat to traditional banks.

Key Takeaways

• Bank of England Deputy Governor Sarah Breeden predicts a technological revolution in finance that will reduce the cost of using money.
• This revolution will enable micropayments and automatic payments for goods delivery.
• The UK finance sector requires urgent action to adapt to the upcoming technological changes.
• Traditional banks may face competition from new players due to the widespread technological change.
• The developments could lead to significant shifts in the finance industry, impacting both consumers and financial institutions.

Analysis

Bank of England's Sarah Breeden foresees a financial technology revolution in the UK, anticipating reduced costs in money usage and the emergence of micropayments and automatic delivery payments. This could prompt urgent measures in preparing the finance sector for potential new entrants, posing a threat to traditional banks. The ripple effects may reshuffle the finance industry, affecting consumers, financial institutions, and potentially pressuring traditional banks to adapt swiftly. Short-term implications could include increased competition and adaptation costs, while the long-term consequences may involve reshaped industry landscapes and altered consumer financial behavior. The impacts could extend to new players entering the market and traditional banks facing technological disruptors.

Did You Know?

• Micropayments and automatic payments: These refer to small financial transactions and the automated process of making payments for goods delivery, respectively. This technological revolution will enable these convenient financial functions, potentially changing the way transactions are conducted.
• Traditional banks facing competition: The introduction of new players in the finance sector due to technological advancements could pose a threat to established traditional banks. This may lead to increased competition and potentially significant shifts in the industry landscape.
• Impact on consumers and financial institutions: The upcoming technological changes in the finance sector could have far-reaching implications for both consumers and financial institutions, requiring urgent action for adaptation.