The Bank for International Settlements (BIS), an international body owned by central banks, has announced plans to set up innovation hubs to facilitate international collaboration and fintech innovation.
The initial plans include setting two hub centres at Basel and Hong Kong, utilising existing BIS facilities.
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The plan also includes setting up the third base at Singapore, subject to necessary institutional arrangements.
BIS will establish the centres in collaboration with the respective host central banks.
BIS financial innovation hub
The hub will work to achieve deeper insights into critical trends in technology affecting central banking. It will also develop public goods in the technology domain to facilitate global financial system functioning.
BIS Board of Directors chairman Jens Weidmann said: “The IT revolution knows no borders and therefore has repercussions in multiple locations simultaneously.
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By GlobalData“The establishment of the BIS Innovation Hub will enable central banks to extend their existing collaboration with a view to identifying relevant trends in technology, supporting these developments where this is consistent with their mandate, and keeping abreast of regulatory requirements with the objective of safeguarding financial stability.
“There are significant economies of scale in such an endeavour, and the BIS is the ideal vehicle to realise them.”
In the second phase, BIS will open additional such innovation hub centres across the Americas and Europe.
