Carney competes for fintech spotlight
Newfangled finance "demands a Bank of England that is as open to new providers as it has been to traditional players," Mark Carney, governor of the Bank of England, told the Innovate Finance Global Summit in London overnight. Spelling out a template the Australian fintech set may wish local regulators would follow, Carney suffused his commentary in the optimism common at events of this type. Channeling Kondratieff, the outgoing BOE governor contended: "The second great wave of globalisation is cresting ... the Fourth Industrial Revolution is just beginning. And a new economy is emerging driven by immense changes in technology, the reordering of global economic power, and the growing pressures of climate change." Carney enthused over "a new finance to serve the digital economy, a new finance to support the major transitions underway across the globe and a new finance to increase the sector's resilience." He alluded to the themes of reforms the BOE will soon adopt following a review by former investment banker Huw van Steenis "of the future of the UK financial system, including recommendations for how the Bank should respond." In two months, Carney said, "Huw will publish his conclusions and the Bank will announce a number of concrete steps to create an environment for a more resilient, effective and efficient financial system. Five non-bank, fintech entities have already gained access to the Bank of England's RTGS payments system, Carney said, "and there is a growing pipeline of around twenty firms exploring whether and how to join. Moreover, the rhetoric defining the BOE's mission is hoopla first; the traditional role of guardian ranked last. "The Bank of England's strategy is to enable innovation and empower competition, while ensuring monetary and financial stability," Carney told the latest London fintech fiesta. In Australia, the ACCC does not even get a say in the deliberations of The Council of Financial Regulators. References to competition are also slight in, for example, in most of the multiple memorandums of understanding between CFR Members. APRA, the notional enabler of fintech neobank dreams in Australia, is charged with a more conservative mandate than that in which Mark Carney now evels. "APRA is required to balance the objectives of financial safety and efficiency, competition, contestability and competitive neutrality and, in balancing these objectives, is to promote financial system stability in Australia."