Our Head of Strategic Policy, John Mowat, recently attended Travers Smith’s Future of Fintech 2025, taking part in a panel discussion exploring the evolving landscape of financial market infrastructures (FMIs).
Held in the City of London, the event brought together leading representatives from across the financial ecosystem, including those from the Bank of England, Payment Systems Regulator (PSR), the House of Lords, and many others.
Key themes from the discussion
Speaking on the panel session, ‘Sound systems: How are established FMIs building the market infrastructure of tomorrow?’, John was joined by Bridget Austrad (LSEG), Richard Fenner (Euroclear), and Richard Pounder (Visa Europe), and explored a range of important topics, such as the crucial role FMIs play in sharing risk across markets.
Further insights from the session, included:
The drivers behind FMI innovation
Supporting participants and ensuring the FMI continues to meet their evolving needs remains a core driver of innovation. Operational resilience, aligned with international standards, is a foundational priority, whilst embracing new technologies to improve resilience and efficiency is vital. John highlighted the importance of working collaboratively with our participants and advocated for a joined-up public policy approach.
Challenges to FMI innovation
The different methods required for making day-to-day improvements compared to the implementation of significant strategic innovation was a key challenge for FMIs. John stressed the importance of frequent, open and transparent engagement for building a consensus on day-to-day enhancements among stakeholders.
Whilst data sharing across ecosystems is essential for enabling collaboration and improving overall resilience, the panel noted this as an additional challenge, due to data fragmentation, lack of interoperability, concerns about data security and privacy, and a fragmented governance landscape.
Current market developments
FMIs are increasingly focused on risk management and resilience as part of ongoing modernisation efforts. One example discussed was the renewal of a 30-year-old financial platform, illustrating how legacy infrastructure can be updated through careful design, testing, and implementation of modern technologies.
Lessons learned and best practices
John shared with the panel how Pay.UK actively engages with international peer organisations to exchange insights and adopt best practices. He reiterated the importance of building trust with participants to move forward with change and having a cohesive and coordinated public policy agenda.
New technology
Panel members emphasised the need for robust resilience processes, clear change management protocols, and effective crisis management frameworks when adopting new technologies.
Whilst legacy systems will continue to play a role, FMIs are increasingly exploring hybrid models that combine established platforms with innovative technologies, such as blockchain and distributed ledger technology.
Conclusion
John said: “We remain committed to working collaboratively with stakeholders across the UK’s payments ecosystem. As we continue to develop a resilient and innovative FMI, we are guided by the principles of openness, security, and long-term value for all participants.”
