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Bank of England FinTech Accelerator Proofs of Concept

On July 10, 2017, the Bank of England (the “Bank”) published summaries of their third round of Proofs of Concept (“PoC”), completed by its FinTech Accelerator.

The FinTech Accelerator was established in 2016, and works in partnership with firms to understand the new technology they may be working with and how FinTech innovations could be utilised within central banking. These PoC provide valuable understanding in respect of FinTech trends and support to its continued development by providing a platform for those firms to demonstrate their solutions for real issues and knowledge from BoE experts.

The third round of the PoC assessed 4 core elements of the Bank’s work:

  • Analysing large scale supervisory data sets;

  • Executing high-value payments across currencies and borders;

  • Identifying and applying cross-cutting legal themes from regulatory enforcement actions; and

  • Measuring performance on the Bank’s internal projects portfolio.

The Bank worked with 4 different FinTechs, for which they provided individual write-ups to explain the extent of each project, to cover each area of the Bank’s work noted. Enforcd, a global regulatory enforcement compliance organisation, worked with the Regulatory Action Division to identify how technology will impact compliance with regulations and best practice; Experimentus, a software quality management consultancy, analysed best practices for effective KPI reporting; Mindbridge AI, a machine learning and artificial intelligence firm, explored the analytical value of using AI tools to detect anomalies in data sets and Ripple, a global currency exchange and remittance company, looked into the synchronised movement of two different currencies using distributed ledger technology.

According to the July 10 press release, emphasis was on “how much central banks potentially have to gain from continued engagement with the sector”.

The Accelerator will be releasing the successful firms for its fourth round of PoCs shortly.

Copyright 2017 K & L Gates

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About this Author

Jonathan Lawrence, KL Gates Law Firm, Restructuring and Insolvency Attorney
Partner

Jonathan Lawrence has been a finance partner in the London office since 2005.

Alongside his general banking and finance work, he concentrates his practice on restructuring & insolvency matters -- Legal 500 UK 2016 Corporate restructuring and insolvency “K&L Gates LLP … maintains a ‘quality team’ that includes ‘impressive’ team head Jonathan Lawrence”.

Mr. Lawrence also plays a leadership role in the firm’s global Islamic Finance practice -- Legal 500 UK 2016 Islamic Finance “K&L Gates LLP is...

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Judith E. Rinearson, KL Gates, federal consumer protection lawyer, anti money laundering attorney
Partner

Judith Rinearson is a partner in the firm’s New York and London offices. Ms. Rinearson concentrates her practice in prepaid and emerging payment systems, electronic payments, crypto/virtual currencies, reward programs, ACH and check processing. She has more than 25 years of experience in the financial services industry, including 18 years at American Express’s General Counsel’s Office. Her expertise focuses particularly in the areas of emerging payments and compliance with state and federal consumer protection laws, anti-money laundering laws, state money transmitter licensing laws and abandoned property laws. 

Fully experienced in both the “issuing” and “acquiring” side of the payments business, Ms. Rinearson has drafted and negotiated complex agreements with strategic co-branded partners, processors and Independent Sales Organizations (ISOs), ATM networks, major retailers and service providers, prepaid card issuers and program managers, international remittance companies, virtual and mobile payment providers, as well as the Terms and Conditions and disclosures that usually accompany such products. She has hands-on experience in all legal aspects of launching and managing a range of payment products, from prepaid cards of all kinds, to Bitcoin exchanges and miners, wire transfer services, ACH, electronic banking, money orders and credit cards. Her practice includes advising on fraud avoidance and compliance with federal banking and anti-money laundering laws, as well as state money transmitter licensing laws, consumer protection laws and abandoned property laws. On the international level, Ms. Rinearson has supervised the launch of a range of payment and foreign currency products in Europe, Asia and Latin America; met with international regulators; and spoken on the issue of payment regulation. 

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