The Open Banking standard and PSD2  11  introduce changes to access of account  information and initiation of payments, requiring banks to make customer data available to authorised third parties if customers so choose. This may change the way that customers access and operate their bank 12  accounts, such as by making them accessible via a single smartphone app developed by a third party . As the prudential regulator of UK financial services firms, the Bank of England needs to be open in how it considers and responds to changes arising in retail banking from this reform. In fact, increasing competitive pressures in retail banking, enabled in part by an increase in the use of fintech, formed part of the biennial 13  exploratory scenario in our 2017 stress test . As well as looking at these infrastructure changes impacting the firms we regulate, we are also opening ourselves to change by experimenting with new technologies when we think about enhancing how we work – including for the infrastructure we are responsible for. 10  Hauser, A (2017) Europe’s second Payment Services Directive Cunliffe, J (2018) 13 Bank of England (2017a) 11 12  4  All speeches are available online at www.bankofengland.co.uk/speeches  4  14  The Bank of England is currently investing in its RTGS service , a critical piece of national infrastructure, renewing the heart of the UK’s overall payment system to meet the challenges posed by a rapidly changing landscape.

5  All speeches are available online at www.bankofengland.co.uk/speeches  5  References Bank of England (2018), Financial Policy Committee statement from tis meeting, 12 March 2018, available at: https://www.bankofengland.co.uk/statement/fpc/2018/financial-policy-committee-statement-march-2018  Bank of England (2017a), Stress testing the UK banking system: 2017 results, 28 November 2017, available at: https://www.bankofengland.co.uk/stress-testing/2017/stress-testing-the-uk-banking-system2017-results  Bank of England (2017b), A blueprint for a new RTGS service for the United Kingdom, 9 May 2017, available at: https://www.bankofengland.co.uk/paper/2017/a-blueprint-for-a-new-rtgs-service-for-the-uk  Carney, M (2018), The Future of Money, 02 March 2018, available at: https://www.bankofengland.co.uk/speech/2018/mark-carney-speech-to-the-inaugural-scottish-economicsconference  Central Banking (2018), Initiative of the Year, 23 Jan 2018, available at: https://www.centralbanking.com/awards/3333176/initiative-of-the-year-bank-of-englands-fintech-accelerator  Cunliffe, J (2018), Looking After our Money, 26 February 2018, available at https://www.bankofengland.co.uk/-/media/boe/files/news/2018/february/looking-after-our-money-speech-byjon-cunliffe.pdf George, E (1996), Risk Reduction in Payment and Settlement Systems’ a Bank of England Quarterly Bulletin article, 9 December 1996, available at: https://www.bankofengland.co.uk/-/media/boe/files/quarterlybulletin/1996/risk-reduction-in-the-payment-and-settlement-systems.pdf Hauser, A (2017) The Bank of England’s FinTech Accelerator: what have we done and what have we learned?, 6 October 2017, available at https://www.bankofengland.co.uk/speech/2017/the-boes-fintechaccelerator-what-have-we-done-and-what-have-we-learned  HM Treasury (2018), Fintech Sector Strategy, 22 March 2018, available at: https://www.gov.uk/government/publications/fintech-sector-strategy  HM Treasury (2017), Remit and recommendations for the Financial Policy Committee, 8 March 2017, available at: https://www.bankofengland.co.uk/-/media/boe/files/letter/2017/chancellor-letter-080317fpc.pdf?la=en&hash=7B99B9B412E160F79FB2411F26A10F282FDC7BB6  6  All speeches are available online at www.bankofengland.co.uk/speeches  6  Ramsden, D (2018), ‘The UK’s productivity growth challenge’, 23 February 2018, available at: https://www.bankofengland.co.uk/speech/2018/dave-ramsden-panel-remarks-cbi-event  7  All speeches are available online at www.bankofengland.co.uk/speeches  7