as well as automated threat intelligence and prevention. as some in the audience are exploring, there is also significant potential in credit assessments, wholesale loan underwriting and trading. as my colleague james proudman recently described, such advanced analytics are also likely to lead to changes to the way the bank conducts supervision. 6 supervisory statement 3 / 19. available at : https : / / www. bankofengland. co. uk / prudential - regulation / publication / 2019 / enhancing - banksand - insurers - approaches - to - managing - the - financial - risks - from - climate - change - ss network for greening the financial system ; first comprehensive report 17 april 2019. available at : https : / / www. banquefrance. fr / en / financial - stability / international - role / network - greening - financial - system / first - ngfs - progress - report see https : / / www. domo. com / solution / data - never - sleeps - 6 all speeches are available online at www. bankofengland. co. uk / publications / pages / speeches / default. aspx the pra promotes safety and soundness based upon forward - looking, judgement - based supervision, in which we identify the key risks facing firms and set supervisory strategies to mitigate them. as a process, it can be broken down into three simple steps : 1 ) rule - setting and reporting ; 2 ) analysis and monitoring ; and 3 ) setting and communicating a supervisory strategy to mitigate identified risks. each of these aspects of supervision is amenable to automation, machine learning or ai to some extent. consider rule setting and reporting. at over 638, 000 words, the pra rule book is longer than war and peace. it is also somewhat less interesting and infinitely more complex. we are currently using advanced analytics to understand the complexity and interconnectedness of the pra rulebook, to identify ways to simplify our rules, and to make compliance with them easier for firms. and to explore ways to make reporting more efficient and effective, we are running a digital regulatory reporting pilot, with the fca, on machine readable reporting requirements that firms ’ systems could interpret and ultimately automate regulatory data collection. these initiatives are goods in and of themselves, but they also create the potential to unlock the power of ai in order to improve the quality of our supervision. conclusion when keynes marvelled at new possibilities, a decade of wealth creation would

/ speeches / default. aspx in this spirit, last year at mansion house, i announced that huw van steenis would lead a review of the future of the uk financial system, including recommendations for how the bank should respond. in two months, huw will publish his conclusions and the bank will announce a number of concrete steps to create an environment for a more resilient, effective and efficient financial system. to preview our general approach i want to highlight some recent measures the bank has been taking. the bank ’ s strategy is to enable innovation and empower competition, while ensuring monetary and financial stability. our levers are the hard and soft infrastructure we control : hard infrastructure, such as the real - time gross settlement ( rtgs ) system, which lies at the heart of the uk payment system. and soft infrastructure, such as our rules, regulations and standards. to illustrate what this means in practice, consider three examples of how the new bank can provide a platform for private innovation to serve the digital economy, to finance major transitions, and to increase the resilience of the financial system. serving the digital economy first, at the heart of the new economy, the very nature of commerce is changing. last year, one fifth of all sales in the uk were online. next year, it will be one quarter. the new economy is more inclusive, offering easier routes to market for firms both large and small, and greater access for consumers both near and far. we are entering an age when anyone can produce anything, anywhere and sell everywhere through platforms such as tmall, amazon, shopify and youtube. this new digital economy is placing new demands on finance. consumers and businesses increasingly expect transactions to be settled in real time, checkout to become an historical anomaly, and payments across borders to be indistinguishable from those across the street. in parallel, big data is opening up new opportunities for more competitive, platform - based finance of smes. search and social media data are supplementing traditional metrics to unlock finance for smaller enterprises whose assets are increasingly intangible. this new finance demands a bank of england that is as open to new providers as it has been to traditional players. all speeches are available online at www. bankofengland. co. uk / publications / pages / speeches / default. aspx here ’ s one way we are changing our hard infrastructure in response. the bank is in the midst of an ambitious rebuild