Bank of England steps up its payments tech, reaffirming digital future

  • Industry News

2 min read

Bank of England steps up its payments tech, reaffirming digital future

It may well be the case that the post-Millennial financial technology (FinTech) start-up scene has grown to have such an enormous influence on the way people and businesses interact with their finances however, this spearheading effort has been so great that the central and commercial banks are having to keep pace.

In the United Kingdom, which is one of the world’s most advanced digital societies in which the vast majority of payment transactions are completed electronically via either web portals, internet banking, smartphone e-wallets or app-based contactless systems, the Bank of England is constantly engaged in making sure that the infrastructure which underpins the British payment and settlement systems can cope with the demands of modern life.

Last month, the Bank of England announced that it had completed a significant modernisation effort concerning how automated payments are processed and cleared.

The highly advanced electronic methodology that allows payment via bank transfer to be made is based on a form of a messaging system, and in the United Kingdom, there are two major financial messaging systems in use. One is the international SWIFT network, based in Belgium but serving the entire world, and the other is the homegrown CHAPS network.

CHAPS stands for Clearing House Automated Payment System, and since 2017, this system has been operated by the Bank of England.

It is used as a real-time settlement and clearing system for payments within the United Kingdom in British Pounds, and it dates back as far as 1984 when it was launched by the Bankers Clearing House.

Its transfer to the Bank of England in 2017 demonstrates the nature of technological responsibility that is now a priority for central banks in nations with advanced financial economies, such as the United Kingdom.

This week’s technological advancement by the Bank of England involves the completion of a migration to the new ISO 20022 messaging standard.

That may appear somewhat jargonistic, however, what it means in earnest is that the infrastructure which supports electronic payments in Britain is getting more comprehensive, and this is coming from the central bank level, meaning that digital payments are becoming even more widely used across Britain’s society and business sectors than is already the case.

This move to the new ISO 20022 standard means that CHAPS payments made within the United Kingdom will have improved reference information, which will enable more efficient payment processing and reconciliation.

Investing in this level of system migration means that the Bank of England views electronic payments as a priority and a widely adopted method.

This represents another reason to ensure that you have the most efficient technology for making everyday payments and going about everyday life, and a specialist FinTech company such as Monevium provides the ideal solution due to its advanced smartphone app and ability to lead the fray when it comes to understanding developments in electronic payment technology.

As the infrastructural changes become more advanced and payment technology moves forward, Monevium is here to support your everyday needs.

After all, it was the FinTech industry which led the central banks toward high-level developments in the first place.

Monevium is the Trading Name of Advanced Wallet Solutions Limited, a company registered in the UK under company number 10251711 and is regulated by the UK’s Financial Conduct Authority under Firm Reference Number 766038.

Open Monevium Account in Minutes

The future of money management is only a few clicks away. Apply here to have complete control over your money.