The Bank for International Settlements (BIS) and the Bank of England has launched a BIS Innovation Hub in London.

The London hub is the fourth BIS Innovation Hub Centre to open in the last two years. Such centres were previously established in Hong Kong, Singapore and Switzerland.

In 2019, BIS started setting up innovation hubs to identify critical trends in financial technology relevant to central banks. The centres will also explore the development of public goods to improve functioning of global financial system.

The establishment of the London hub will accelerate work programmes on priority themes.

Currently, the scope of work includes using technological innovation in supervision and regulation; open finance; cyber security; and green finance.

The centres are also working on next generation financial market infrastructures and central bank digital currencies.

Related works on these themes are distributed across the various hub centres.

BIS general manager Agustin Carstens said: “The BIS, together with its partners, is taking a leading role in coordinating the work of central banks on technological innovation in the financial sector to pave the way for the future of central banking.

“This new Centre in London reflects the Bank of England’s critical role as an innovator in responding to the challenges and opportunities of the digital world while safeguarding financial stability.”

Bank of England Governor Andrew Bailey said: “As a central bank, we recognise the importance of innovation for the global financial system and look to support its safe deployment wherever possible.

“This requires collaboration between public authorities in all jurisdictions, and the BIS Innovation Hub is an important global initiative for achieving this.”