Fintech Firms Want Access to the Bank of England

February 17, 2024         By: Ryan Kennedy

London has maintained its top position as a leading financial technology hub partially due to the UK government’s willingness to provide help and resources to the sector.

Now financial technology sectors are aiming to increase their partnership with the British government to further their reach into the sector. These fintech firms now want a chance to open accounts with the Bank of England, the country’s central bank.

Currently, only traditional banks are allowed to open accounts with the Bank of England. Accounts with the central bank have certain privileges, including a cheaper and more broad payment system.

As of right now, fintech companies, such as peer-2-peer lenders or online banks, use accounts with traditional banks for all of their transactions and other payment needs. This ends up being costly for fintech companies and presents many limitations on young startups with cash flow problems.

Representatives from the financial technology sector are now engaging in meetings with the Bank of England. Richard Wagner of the Emerging Payments Association met with officials at the Bank of England late last week to begin the discussion.

Insiders familiar with the matter believe a deal will be hammered out by the end of the year. Should an agreement be passed, and fintech companies allowed to open accounts with the central bank, the fintech industry in Britain will likely grow at an even faster pace.