Victoria Cleland, Executive Director for Banking, Payments, and Innovation at the Bank of England, delivered a speech at FinTech Connect on 5 December 2024, outlining the future roadmap for the UK’s Real-Time Gross Settlement (RTGS) service. In her address, she emphasised the Bank’s commitment to enhancing the resilience, accessibility, and functionality of the RTGS system to meet the evolving needs of the financial sector.
RTGS is a critical component of the UK’s financial infrastructure, enabling the real-time settlement of high-value payments between banks and other financial institutions during its operating hours. By settling transactions individually and immediately, RTGS ensures that payments are final and irrevocable, supporting financial market infrastructure and payment systems such as CHAPS (the UK’s real-time payment scheme for sterling transactions). It processes transactions worth billions of pounds daily, underpinning the smooth functioning of the UK economy.
During her speech, Cleland highlighted the successful migration to the ISO 20022 global financial messaging standard, marking a significant milestone in the RTGS Renewal Programme. This transition is expected to improve transparency and interoperability, benefiting both domestic and cross-border payments. Looking ahead, the Bank plans to introduce a new core settlement engine by Spring 2025, designed to provide a more resilient and flexible platform for sterling settlement. This upgrade aims to support broader access for a diverse range of participants while enhancing technological resilience and cybersecurity measures.
Beyond 2024, the Bank is exploring several innovative features to further evolve the RTGS service. Key areas of focus include:
- New Connectivity Options: Developing alternative methods for participants to connect to the RTGS system, facilitating greater inclusivity and competition within the financial ecosystem.
- Synchronisation Interface: Implementing a synchronisation mechanism to enable seamless connection between RTGS and other ledgers, promoting efficient and secure settlement processes.
Cleland’s roadmap reflects the Bank of England’s strategic intent to maintain its position as a global leader in financial infrastructure, ensuring RTGS remains robust, efficient, and aligned with the demands of an increasingly digital economy. This evolution will not only strengthen the UK’s financial stability but also reinforce its position at the forefront of payment innovation.
