A new economy is emerging driven by changes in technology, demographics and the environment.
Technology is changing how we work, spend and live. It has major implications for the UK’s economy and, in turn, finance. Consumers are increasingly shopping online. Platforms connect businesses to consumers across the country and overseas. This is generating vast quantities of data that can be used to
improve services. But this data also raises numerous hazards of misuse and abuse of privacy.
We increasingly collaborate through the sharing economy. And the freelance and gig economy work are growing in importance.
Technology is enabling us to be ever more closely connected to the rest of the world through global trade and communications.
New business models are disrupting industries — and allowing an unbundling of business models with profound consequences. Automation, including machine learning, is taking on more tasks.
The UK is also undergoing several major transitions that finance has to respond to. We’re living longer. We better understand the value and importance of sustainability. We’re starting to reduce
emissions and shifting to a low-carbon economy with major implications for business and investment.
And the need for efficiency and lower costs in finance is an ongoing challenge. Britain’s role as a financial trading hub will evolve as emerging markets grow and political decisions on the UK’s relationship with the EU are made.
All of these factors will drive significant changes in the economy and, in turn, finance. They also raise some fundamental challenges to traditional models of regulation, economic modelling and central banking as a result of these technological and economic changes. …
Quelle / Link: The future of finance report (Bank of England)