To that end, the cohort is planning to blend private and public sector expertise to “validate, design, build, and launch new financial technology products and services for the central bank community.”
New York Fed President John Williams said he expects big things from the newly minted partnership. “We are thrilled to announce the opening of the New York Innovation Center,” Williams said. “The work of the Center will be powered by new and different ways of thinking and experimenting, while leveraging the expertise and connections of this strategic partnership. I look forward to working with our co-collaborators as we begin to make progress on our areas of focus and collective mission.”
According to information from the Federal Reserve Bank of New York, the members of the partnership will work specifically toward identifying important trends in the central banking space, finding ways to create goods in support of a strong global financial system and strengthening innovation. To do so, the cohort will lean on research and best practices and leverage subject matter expertise from participants.
From Twitter
"'Innovation in the service of soundness and stability of the financial system' says @federalreserve Chairman Powell at the Fed’s New York Innovation Center launch event. Big step forward for the world's primary central bank."
In many ways, the move makes perfect sense from a strategic standpoint. The BIS Innovation Hub has already baked into its mandate identifying and disseminating “critical trends” and their impact on the central banking system as well as many other overlapping goals with the partnership, notes information from the international organization.
“The strategic partnership will let the BIS Innovation Hub benefit from the Federal Reserve’s expertise in innovation, and allow us to contribute our own global perspective to the work of the New York Innovation Center,” said Agustín Carstens, BIS general manager, in a statement. “We look forward to collaborating on projects and exchanges with the New York Innovation Center.”
According to the announcement, the NYIC will emphasize five main areas of opportunity. Those areas are as follows:
- “Supervisory and Regulatory Technology”
- “Financial Market Infrastructures”
- “Future of Money”
- “Open Finance”
- “Climate Risk”
The group’s work will also place great emphasis on venture development and entrepreneurship as well as other corporate-themed solutions.
“The NYIC represents a unique opportunity to drive innovation in collaboration with the central bank community,” added Per von Zelowitz, a recent addition to the New York Fed, which is helping spearhead the effort. “I am excited to work with colleagues and partners to develop ideas and bring new products and services to the world of central banking.”
For information on the New York Innovation Center, visit here.
