•  The final issue, outlined on the fourth row of Figure 10, is about comparing volunteers with paid workers. In carrying out the same activity as a paid employee, volunteers may be more enthusiastic, but also less capable. I am more enthusiastic about painting a shed than my local decorator, but also less competent. So it is not altogether clear whether the wages of paid workers are good proxies for volunteering value or not, with uncertainties on both sides. The final row in Figure 10 offers estimates of the overall contribution of volunteering to the UK economy. It suggests this could exceed £ billion per year, or around 3.5% of annual UK GDP. This would place the volunteering sector on a level pegging with the UK energy sector (both extraction and utilities). Very few sectors add more value. Clearly, the inner layer of the volunteering onion – economic value – is a very significant one. 11  These new estimates can be found at http://www.ons.gov.uk/ons/about-ons/business-transparency/freedomof-information/what-can-i-request/published-ad-hoc-data/econ/august-2014/hhsa-consistent-estimates-of-thevalue-of-informal-voluntary-activity-in-2012-13.xls. 12  This calculation uses the following industries: professional and support services; distribution, transport, hotels and restaurants; government, health and education; and other services. The calculation also includes an adjustment for “mixed income” – that is, the income of the self-employed that is classified separately in the national accounts but which arguably reflects a return to labour rather than capital. 6  BIS central bankers’ speeches  Private value of volunteering The second layer of the onion is the private benefit from volunteering.

We are then using our existing frameworks to respond where necessary. We are disciplined. Just because something is new doesn’t mean it should be treated differently. Similarly, just because it is outside the regulatory perimeter doesn’t mean it needs to be brought inside. We apply consistent approaches to activities that give rise to the same risks regardless of whether those are undertaken by old regulated or new FinTech firms. Some of the most important questions we are considering include: -  Which FinTech activities constitute traditional banking activities by another name and should be regulated as such? 7  -  How could developments change the safety and soundness of existing regulated firms? -  How could developments change potential macroeconomic and macrofinancial dynamics including disruptions to systemically important markets? And  5  For further details on the New Bank Start-Up Unit, see: http://www.bankofengland.co.uk/pra/nbsu/Pages/default.aspx For further detail on the work of our FinTech Accelerator see: http://www.bankofengland.co.uk/Pages/fintech/default.aspx Systemic risks associated with credit intermediation including maturity transformation, leverage and liquidity mismatch should be regulated consistently regardless of the delivery mechanism. 6 7  4  All speeches are available online at www.bankofengland.co.uk/speeches  4  -  What could be the implications for the level of cyber and operational risks faced by regulated firms and the financial system as a whole? To illustrate some of the issues, consider how FinTech is affecting the financial services value chain (Figure 1).