New BIS Innovation Hub Centre for global financial innovation to be set up jointly in Frankfurt and Paris
The Deutsche Bundesbank is about to become a partner in joint digital financial innovations developed by central banks from all over the world. Together, the French central bank and the Bundesbank will set up an innovation centre at their locations in Frankfurt am Main and Paris. Both central banks will thus represent the Eurosystem as part of the Bank for International Settlements’ global “BIS Innovation Hub” network, as the “bank of central banks” announced in Basel today after its competition procedure had come to a close.
As the host of the Frankfurt site, we look forward to working together with central banks from all over the world to push ahead with digitalisation in the financial system”, commented Bundesbank President Jens Weidmann on the BIS’s decision on Tuesday. He noted that the international community of central banks should share in the Bundesbank's innovative power and benefit from its operational strength in running IT systems. In return, he hopes that partner central banks will provide an array of input for the Bundesbank’s technological development. “
We will develop target-oriented innovative solutions with a keen sense of curiosity and a great deal of creative energy. Digital central bank innovations will allow us to make the financial system of tomorrow more stable and more efficient”, the Bundesbank President explained.
In tandem, the Bundesbank will also open up its own innovation lab in Frankfurt to international partner institutions. For several years now, the Bundesbank has been investing heavily in modern technologies such as big data and machine learning. It considers innovation to be essential to fulfilling its commitment to stability in the future as well. Innovative applications in central banking can, for example, make payments more efficient, enable real-time financial supervision and enhance cyber security. One of the key benefits of the newly agreed network is the establishment and expansion of an international digital ecosystem of central banks which can bundle applications and technologies.
Overall, the BIS Innovation Hub will consist of seven global centres. The BIS will also open innovation centres together with the Bank of Canada, the Bank of England and a group of four Nordic European central banks. Last year, the first three innovation hub centres were opened in partnership with the Hong Kong Monetary Authority, the Monetary Authority of Singapore and the Swiss National Bank.