The Financial Inclusion Commission welcomes a new innovation objective for the Bank of England.

The Financial Inclusion Commission welcomes the Government’s announcement of a new secondary objective for the Bank of England to support innovation in payments and digital finance. 

The objective, which the Treasury announced this week and is expected to be introduced through an amendment to the Financial Services and Markets Bill, will sit alongside the Bank's primary responsibility for financial stability. The Bank will be required to report to Parliament each year on the progress it has made. 

This is a significant moment for the future shape of the UK financial industry, and UK payments. The new objective is concerned with the competitiveness and innovation in digital currency and payment technology. For millions of people across the UK, ease of access to everyday financial services has a direct bearing on their ability to participate fully in daily life, whether that means paying bills, receiving wages and benefits, shopping, or otherwise engaging with the wider economy. Innovation that is not designed with the full range of consumers in mind risks widening the gap between those who can make full use of the new payment technology and those who cannot, including many older people, disabled people, and people with limited digital access or confidence. 

Sian Williams, Chair of the Financial Inclusion Commission, and CEO of Switchback said: 

“We welcome the ambition behind this new objective. Innovation in payments can be a bridge to opportunity and an engine for growth, but only if it is designed to include everyone. As the Bank takes on this role and reports on its progress, we want to see the needs of financially excluded consumers treated as a priority measure of success, and not as an afterthought.”

Financial Inclusion Commissioner, and CEO of LINK, John Howells also shared his thoughts on this announcement “As well as keeping cash on the high street, it is vital that we promote innovative ways to help people use digital payments. This new focus on innovation will help unlock the potential of payments for the UK economy and for people who continue to rely on cash."

As this new objective is taken forward, the Financial Inclusion Commission looks forward to engaging with the Bank of England, HM Treasury and industry when opportunities arise. The Commission will continue to make the case for a joined-up approach between government, regulators and the communities that will be impacted the most, to ensure that the future of UK payments is accessible, easy to use and meets peoples needs throughout their lifetime. 

Read the full story from the Financial Times here.

For press and quotes please email Rachael@financialinclusioncommission.org.uk