Responding to Disruption: Learnings from the UK on the Future of Finance and 5 takeaways for us all
The Bank of England recently released a response to the van Steenis review on the Future of Finance. Like most sectors facing disruption, this time of transition creates opportunities for the finance sector to serve customers and the economy better.
Rapidly advancing technologies, evolving customer expectations and a changing regulatory landscape are opening doors to disruptive innovation in financial services (“The Future of Financial Services”, Deloitte).
The response from The Bank of England "The Future of Finance" outlines the role Banks will play.
It splits them into 5 Key Priorities:
Support a more resilient, innovative and competitive payments system for UK households and businesses.
Help create an open platform to boost access to finance for small businesses and choice for households.
Support an orderly transition to a carbon-neutral economy.
Deliver a world-class regtech and data strategy.
Facilitate greater resilience and adoption of the cloud and other new technologies.
The Report outlines key areas of the “New Economy” which affect us all”.
The economy is becoming more digital: UK consumers spent £265 billion online in 2018
The use of data is increasing rapidly: More data has been recorded in the last decade than in the whole of human history before
Economic growth places greater demands on the world’s natural resources and climate: Governments have committed to keeping global temperatures within 2°c of 1850 levels
With this in mind there are 5 key takeaways that should be the blueprint for your organisation’s strategic plan regardless of being in the financial services sector or not:
Embrace Technology:“The role of technology has evolved from automating the business to actually being the business.” (Interview with Satish Alapati, conducted January 28, 2019. View in article)
Be (more) Socially Responsible: Whether this is an initiative tackling climate change or the environment or creating a more inclusive workplace, employees and customers place a premium on working for (and spending their money with) businesses that prioritize corporate social responsibility (CSR)
Be in the Now of Work (and Prepare for the Future): Our White Paper The Future of Work, published 2 years ago ,outlined key initiatives in the future of work that companies must adopt in order to survive
Think Globally and Act Personally: This follows on well from CSR but expands to your overall business at every level. It’s a mentality of doing things smarter, reducing waste but also considering how our actions affect people. It can be adapted to the way we do business to link businesses globally. Is there a smarter way to do this?
The Role of Risk and Governance: Where there's innovation, there's risk. Make sure your organisation puts in the right checks and balances.