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10/11/2018, 8:01 AM (Source: TeleTrader)
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Carney: Let's embrace promise of fintech

Bank of England Governor Mark Carney highlighted financial technology's ability to increase financial inclusion for small and medium-sized enterprises, or SMEs, and noted the same quality of access like in the case of multinationals still can't be found. Speaking in Bali, Indonesia, on Thursday at a financial conference, he expressed the opinion that innovators are serving customers better and providing "new liquidity" and stated: "Embrace the promise of fintech."

The emerging solutions are going to "add to the resilience" of the system, the governor said and said the central bank is focusing on the creation of a "plug-and-play" framework for payments. Innovations make it possible to bypass banks and provide cost-effective services, he claimed. The top supervisor said cross-border payments cost 10 times more than domestic ones and raised the issue of equal access to the core system to change that.

The trajectory includes empowering digital IDs globally and empowering competition, he asserted and said the question is whether nonbanks should be allowed to deposit at the central bank or use it as a lender of last resort.

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