The second is needed to enable these firms to deposit monies in RTGS on behalf of their customers. The final change provides assurance that any longer-term stability implications of these changes can be addressed under the Bank’s prudential remit. 8  We do not intend, however, to extend facilities to PSPs for which they have no need. Non-bank PSPs will not therefore be eligible for membership of the Sterling Monetary Framework – and in particular the Bank’s credit facilities. That is because PSPs are not part of the monetary policy transmission mechanism or exposed to inherent overnight liquidity risk. The Bank may also take steps to limit PSPs’ capacity to hold unlimited overnight balances on their settlement accounts. BIS central bankers’ speeches  5  billions of pounds worth of capital. With the economics of wholesale banking under pressure, cutting inefficiencies is a high priority for industry. That is why it is welcome that FinTech innovators are exploring the potential of distributed ledger technology to simplify the settlement chain, reduce its cost, and raise its speed while increasing resilience. The instruments involved range from equities to bank loans. However, the challenges facing such projects are legion, including reliability, resilience, security and scale. And fundamentally, how to prove technologies that are still nascent? One challenge an otherwise robust system of sufficient scale would not face is access to central bank money from the Bank of England. The Bank has for many years sought to ensure that, wherever possible, wholesale securities settlement occurs in central bank money.

The telehealth market in Asia Pacific is expected to grow by 12 per cent annually to reach $ billion in 2020. In Singapore, we have been rolling out TeleRehab services for stroke patients. It delivers better health outcomes because doctors can monitor patients and make sure they follow-through on rehabilitation without the inconvenience of regular physical travel to the clinic. In the US, Kaiser – a major healthcare provider in California – already has more than half of its consultations through tele-health, and insurers have begun to accept telehealth claims. iv. In Singapore, the first tele-health trial by an insurer was launched last year, enabling policy-holders at risk of heart problems to be monitored remotely so that abnormalities can be picked up in time, and issues detected before they become critical. I encourage insurers to partner with healthcare providers and research centres to test such applications and support the implementation of Smart Health platforms. It supports an important paradigm shift towards preventive and sustainable healthcare management for policy-holders. 9. There is opportunity for insurers to go digital in other ways too. At the front end: It is frequently remarked within the insurance industry that an insurer interacts with its clients just once or twice a year- for signing, renewals and claims. Apps and social media present insurers with more touchpoints to understand and engage their clients. Telematics and IOT (internet of things) devices enable data analytics, allowing the insurer to deliver more customised and innovative products and services.