Bank of England Gets into Fintech Space with Accelerator for Innovations
- The Old Lady is aiming to keep pace with challenges by inviting fintech firms to participate in its new initiative

The Bank of England has become the first central bank to launch a ‘ Fintech Fintech Financial Technology (fintech) is defined as ay technology that is geared towards automating and enhancing the delivery and application of financial services. The origin of the term fintechs can be traced back to the 1990s where it was primarily used as a back-end system technology for renowned financial institutions. However, it has since grown outside the business sector with an increased focus upon consumer services.What Purpose Do Fintechs Serve?The main purpose of fintechs would be to supply a technological service that not only simplifies but also aids consumers, business operators, and networks.This is done by optimizing business processes and financial operations through the implementation of specialized software, algorithms, and automated computing processes. Transitioning from the roots of the financial sector, fintech providers can be found through a multitude of industries such as retail banking, education, cryptocurrencies, insurance, nonprofit, and more. While fintechs cover a vast array of business sectors, it can be broken down into four classifications which are as followed: Business-to-business for banks, Business-to-business for banking business clients, business-to-consumers for small businesses, and consumers. More recently, fintechs presence has become increasingly apparent within the trading sector, primarily for cryptocurrencies and blockchain technology.The creation and use of Bitcoin can also be contributed to innovations brought upon by fintechs while smart contracts through blockchain technology have simplified and automated contracts between buyers and sellers. As a whole, fintechs applications are growing more diverse with a consumer-centric focus while its applications continue to innovate the trading and cryptocurrency sectors through automated technologies and business practices. Financial Technology (fintech) is defined as ay technology that is geared towards automating and enhancing the delivery and application of financial services. The origin of the term fintechs can be traced back to the 1990s where it was primarily used as a back-end system technology for renowned financial institutions. However, it has since grown outside the business sector with an increased focus upon consumer services.What Purpose Do Fintechs Serve?The main purpose of fintechs would be to supply a technological service that not only simplifies but also aids consumers, business operators, and networks.This is done by optimizing business processes and financial operations through the implementation of specialized software, algorithms, and automated computing processes. Transitioning from the roots of the financial sector, fintech providers can be found through a multitude of industries such as retail banking, education, cryptocurrencies, insurance, nonprofit, and more. While fintechs cover a vast array of business sectors, it can be broken down into four classifications which are as followed: Business-to-business for banks, Business-to-business for banking business clients, business-to-consumers for small businesses, and consumers. More recently, fintechs presence has become increasingly apparent within the trading sector, primarily for cryptocurrencies and blockchain technology.The creation and use of Bitcoin can also be contributed to innovations brought upon by fintechs while smart contracts through blockchain technology have simplified and automated contracts between buyers and sellers. As a whole, fintechs applications are growing more diverse with a consumer-centric focus while its applications continue to innovate the trading and cryptocurrency sectors through automated technologies and business practices. Read this Term Accelerator Accelerator An accelerator or startup accelerator is defined as fixed-term programs that look to foster investment, connections, sales, and education to kindle growth in a project.Most commonly this effort constitutes a public pitch event, demos, and other forms of marketing. Startup accelerators are most commonly associated with Silicon Valley, a global hub for investing and fintech.Startup accelerators however are a global phenomenon that privately funded as an investment fund. This nature of investing helps extend equity style investing to a wide range of industries. Different Types of Startup AcceleratorsThere are multiple types of accelerators, which have evolved to reflect a new form of investing assistance to entrepreneurs.This includes hardware accelerators, AI accelerators, Biotech accelerators, and China cross-border accelerators.Of note, startup accelerators do differ from incubators, which are another component of the fintech lifecycle.In particular, the application process is open to anyone for startup accelerators, though very competitive. Furthermore, the focus for startup accelerators is on small teams not an individual founder. The rational for this is that a singular individual is not sufficient to handle this entire volume of work.Seed investments in the startups are also made in exchange for equity, starting as low as $20,000 in some instances.Finally, startup accelerators are usually given a rigid deadline, usually targeting upwards of three months. This time is associated with intensive mentoring and training, and as the name suggests, an accelerated evolution of the program.Startup accelerators are not even obligated to occupy a physical space, though it is common for them to. An accelerator or startup accelerator is defined as fixed-term programs that look to foster investment, connections, sales, and education to kindle growth in a project.Most commonly this effort constitutes a public pitch event, demos, and other forms of marketing. Startup accelerators are most commonly associated with Silicon Valley, a global hub for investing and fintech.Startup accelerators however are a global phenomenon that privately funded as an investment fund. This nature of investing helps extend equity style investing to a wide range of industries. Different Types of Startup AcceleratorsThere are multiple types of accelerators, which have evolved to reflect a new form of investing assistance to entrepreneurs.This includes hardware accelerators, AI accelerators, Biotech accelerators, and China cross-border accelerators.Of note, startup accelerators do differ from incubators, which are another component of the fintech lifecycle.In particular, the application process is open to anyone for startup accelerators, though very competitive. Furthermore, the focus for startup accelerators is on small teams not an individual founder. The rational for this is that a singular individual is not sufficient to handle this entire volume of work.Seed investments in the startups are also made in exchange for equity, starting as low as $20,000 in some instances.Finally, startup accelerators are usually given a rigid deadline, usually targeting upwards of three months. This time is associated with intensive mentoring and training, and as the name suggests, an accelerated evolution of the program.Startup accelerators are not even obligated to occupy a physical space, though it is common for them to. Read this Term’ that will work with new technology firms to help it harness fintech innovations for central banking, according to an official press release on the BoE's website.
The new initiative, which has already carried out initial work in some areas, will open the door to fintech start-ups developing solutions in data anonymization, cyber security and distributed ledger technology. In return, the accelerator will offer firms the chance to demonstrate their solutions for real issues facing policymakers, together with the valuable ‘first client’ reference that comes with it. With time, it will build a network of firms working in this space for the benefit of both parties.
The British central bank hinted in its announcement at other areas of potential future interest for the accelerator, which may include finding new ways to structure and analyse large datasets, machine learning, particularly in relation to anomaly detection and pattern recognition, and finally protection of the Bank’s sensitive data.
How it Works
The initiative will see the BoE inviting fintech firms, selected based on clearly defined criteria, to engage in short proof of concept projects (POCs) via a transparent and competitive process. These criteria will ensure that each project has the potential to be truly innovative, relevant to the Bank’s mission and that commercial considerations are taken into account.
At the end of this process, the BoE will then consider producing an assessment of its experience and publishing the findings. Also, where appropriate, it will consider acting as a reference for the partner firms that achieved successfully completed POCs.
Qualified applicants will also have the opportunity to become an on-going partner of the bank.
Mark Carney, the governor of the Bank of England, was planning to announce the new initiative at Mansion House on June 16. However, he did not deliver the scheduled speech due to the tragic murder of MP Jo Cox and instead paid tribute to her, saying: “She was a remarkable person who dedicated her life to helping others”.
Now released by the bank on Friday, Carney’s planned speech stated: “Fintech should neither be the wild west nor strangled at birth. The Bank is devoting considerable resources to ensure whatever develops is sustainable, not ephemeral.”
“It change the nature of money, shake the foundations of central banking and deliver nothing less than a democratic revolution for all who use financial services,” he added.
Although the so-called fintech accelerator is thought to be the first scheme of its kind launched by a central bank, it follows a similar announcement from the UK FCA which launched a "sandbox" last year to offer a ‘safe space’ in which businesses can test innovative products, services, business models and delivery mechanisms while ensuring that consumers are appropriately protected.
The Bank of England has become the first central bank to launch a ‘ Fintech Fintech Financial Technology (fintech) is defined as ay technology that is geared towards automating and enhancing the delivery and application of financial services. The origin of the term fintechs can be traced back to the 1990s where it was primarily used as a back-end system technology for renowned financial institutions. However, it has since grown outside the business sector with an increased focus upon consumer services.What Purpose Do Fintechs Serve?The main purpose of fintechs would be to supply a technological service that not only simplifies but also aids consumers, business operators, and networks.This is done by optimizing business processes and financial operations through the implementation of specialized software, algorithms, and automated computing processes. Transitioning from the roots of the financial sector, fintech providers can be found through a multitude of industries such as retail banking, education, cryptocurrencies, insurance, nonprofit, and more. While fintechs cover a vast array of business sectors, it can be broken down into four classifications which are as followed: Business-to-business for banks, Business-to-business for banking business clients, business-to-consumers for small businesses, and consumers. More recently, fintechs presence has become increasingly apparent within the trading sector, primarily for cryptocurrencies and blockchain technology.The creation and use of Bitcoin can also be contributed to innovations brought upon by fintechs while smart contracts through blockchain technology have simplified and automated contracts between buyers and sellers. As a whole, fintechs applications are growing more diverse with a consumer-centric focus while its applications continue to innovate the trading and cryptocurrency sectors through automated technologies and business practices. Financial Technology (fintech) is defined as ay technology that is geared towards automating and enhancing the delivery and application of financial services. The origin of the term fintechs can be traced back to the 1990s where it was primarily used as a back-end system technology for renowned financial institutions. However, it has since grown outside the business sector with an increased focus upon consumer services.What Purpose Do Fintechs Serve?The main purpose of fintechs would be to supply a technological service that not only simplifies but also aids consumers, business operators, and networks.This is done by optimizing business processes and financial operations through the implementation of specialized software, algorithms, and automated computing processes. Transitioning from the roots of the financial sector, fintech providers can be found through a multitude of industries such as retail banking, education, cryptocurrencies, insurance, nonprofit, and more. While fintechs cover a vast array of business sectors, it can be broken down into four classifications which are as followed: Business-to-business for banks, Business-to-business for banking business clients, business-to-consumers for small businesses, and consumers. More recently, fintechs presence has become increasingly apparent within the trading sector, primarily for cryptocurrencies and blockchain technology.The creation and use of Bitcoin can also be contributed to innovations brought upon by fintechs while smart contracts through blockchain technology have simplified and automated contracts between buyers and sellers. As a whole, fintechs applications are growing more diverse with a consumer-centric focus while its applications continue to innovate the trading and cryptocurrency sectors through automated technologies and business practices. Read this Term Accelerator Accelerator An accelerator or startup accelerator is defined as fixed-term programs that look to foster investment, connections, sales, and education to kindle growth in a project.Most commonly this effort constitutes a public pitch event, demos, and other forms of marketing. Startup accelerators are most commonly associated with Silicon Valley, a global hub for investing and fintech.Startup accelerators however are a global phenomenon that privately funded as an investment fund. This nature of investing helps extend equity style investing to a wide range of industries. Different Types of Startup AcceleratorsThere are multiple types of accelerators, which have evolved to reflect a new form of investing assistance to entrepreneurs.This includes hardware accelerators, AI accelerators, Biotech accelerators, and China cross-border accelerators.Of note, startup accelerators do differ from incubators, which are another component of the fintech lifecycle.In particular, the application process is open to anyone for startup accelerators, though very competitive. Furthermore, the focus for startup accelerators is on small teams not an individual founder. The rational for this is that a singular individual is not sufficient to handle this entire volume of work.Seed investments in the startups are also made in exchange for equity, starting as low as $20,000 in some instances.Finally, startup accelerators are usually given a rigid deadline, usually targeting upwards of three months. This time is associated with intensive mentoring and training, and as the name suggests, an accelerated evolution of the program.Startup accelerators are not even obligated to occupy a physical space, though it is common for them to. An accelerator or startup accelerator is defined as fixed-term programs that look to foster investment, connections, sales, and education to kindle growth in a project.Most commonly this effort constitutes a public pitch event, demos, and other forms of marketing. Startup accelerators are most commonly associated with Silicon Valley, a global hub for investing and fintech.Startup accelerators however are a global phenomenon that privately funded as an investment fund. This nature of investing helps extend equity style investing to a wide range of industries. Different Types of Startup AcceleratorsThere are multiple types of accelerators, which have evolved to reflect a new form of investing assistance to entrepreneurs.This includes hardware accelerators, AI accelerators, Biotech accelerators, and China cross-border accelerators.Of note, startup accelerators do differ from incubators, which are another component of the fintech lifecycle.In particular, the application process is open to anyone for startup accelerators, though very competitive. Furthermore, the focus for startup accelerators is on small teams not an individual founder. The rational for this is that a singular individual is not sufficient to handle this entire volume of work.Seed investments in the startups are also made in exchange for equity, starting as low as $20,000 in some instances.Finally, startup accelerators are usually given a rigid deadline, usually targeting upwards of three months. This time is associated with intensive mentoring and training, and as the name suggests, an accelerated evolution of the program.Startup accelerators are not even obligated to occupy a physical space, though it is common for them to. Read this Term’ that will work with new technology firms to help it harness fintech innovations for central banking, according to an official press release on the BoE's website.
The new initiative, which has already carried out initial work in some areas, will open the door to fintech start-ups developing solutions in data anonymization, cyber security and distributed ledger technology. In return, the accelerator will offer firms the chance to demonstrate their solutions for real issues facing policymakers, together with the valuable ‘first client’ reference that comes with it. With time, it will build a network of firms working in this space for the benefit of both parties.
The British central bank hinted in its announcement at other areas of potential future interest for the accelerator, which may include finding new ways to structure and analyse large datasets, machine learning, particularly in relation to anomaly detection and pattern recognition, and finally protection of the Bank’s sensitive data.
How it Works
The initiative will see the BoE inviting fintech firms, selected based on clearly defined criteria, to engage in short proof of concept projects (POCs) via a transparent and competitive process. These criteria will ensure that each project has the potential to be truly innovative, relevant to the Bank’s mission and that commercial considerations are taken into account.
At the end of this process, the BoE will then consider producing an assessment of its experience and publishing the findings. Also, where appropriate, it will consider acting as a reference for the partner firms that achieved successfully completed POCs.
Qualified applicants will also have the opportunity to become an on-going partner of the bank.
Mark Carney, the governor of the Bank of England, was planning to announce the new initiative at Mansion House on June 16. However, he did not deliver the scheduled speech due to the tragic murder of MP Jo Cox and instead paid tribute to her, saying: “She was a remarkable person who dedicated her life to helping others”.
Now released by the bank on Friday, Carney’s planned speech stated: “Fintech should neither be the wild west nor strangled at birth. The Bank is devoting considerable resources to ensure whatever develops is sustainable, not ephemeral.”
“It change the nature of money, shake the foundations of central banking and deliver nothing less than a democratic revolution for all who use financial services,” he added.
Although the so-called fintech accelerator is thought to be the first scheme of its kind launched by a central bank, it follows a similar announcement from the UK FCA which launched a "sandbox" last year to offer a ‘safe space’ in which businesses can test innovative products, services, business models and delivery mechanisms while ensuring that consumers are appropriately protected.