Business & Technology
Bank of England says tokenisation could speed payments
KAREN JOY BACUDO
Finance Editor
The Bank of England has outlined how tokenisation could change the way financial assets are recorded and transferred, saying it could make some transactions faster and easier.
In an explainer, the Bank described tokenisation as the creation of a digital version of an existing financial asset, such as a share, bond or pound. That digital record sits on a secure shared ledger, creating a token that can be tracked and traded online.
The Bank drew a clear distinction between tokenisation and cryptocurrencies. Cryptoassets such as Bitcoin, it said, are privately created tokens that are not backed by assets and can show sharp price swings. Tokenisation, by contrast, is a different way of recording and transferring assets that already exist.
That distinction matters because the Bank presented tokenisation as financial market infrastructure rather than a new speculative asset class. The aim is to modernise payments and asset transfers while maintaining financial stability and protecting money.
How it works
According to the Bank, tokenisation does not create a new underlying asset. Instead, it changes how ownership is recorded, allowing holders to spend, transfer or trade assets through software-based processes that can be automated or linked to conditions.
One example involved online shopping. A payment made with a tokenised asset could be transferred to a retailer only after a buyer confirms that a parcel has been delivered.
The Bank also suggested that tokenised systems could improve cross-border payments. Fewer steps and intermediaries in the payment chain could reduce the cost of international money transfers and shorten settlement times for consumers and businesses.
Policy focus
The central bank said its role is to support innovation while ensuring money remains safe and the financial system stays stable. Its priorities include setting rules for new forms of digital money, improving how money and assets move so digital and existing forms can work alongside each other, and testing ideas on a small scale before broader use.
That approach reflects a cautious stance among central banks as they examine how distributed ledger-based systems could fit within existing payment and settlement frameworks. Rather than endorsing a single model, the Bank pointed to a landscape in which traditional bank deposits, tokenised deposits, regulated stablecoins and potentially a central bank digital currency could coexist.
Retail and wholesale use
The Bank said tokenisation could affect both retail payments and wholesale financial markets. For consumers, the potential change is more choice at checkout, whether online or in-store, along with smoother links between UK retail payments and overseas systems.
For financial institutions and large companies, the Bank pointed to faster wholesale payments, simpler transfer processes and lower operating costs. Tokenisation could also support automated payments, allowing transfers to be triggered when invoices fall due or when other pre-set conditions are met.
Another area highlighted was investment access. Tokenised assets can be split into smaller pieces, the Bank said, which could allow people to invest smaller sums in financial products such as shares or bonds rather than buying a whole unit.
In practice, that could widen access to some investments and lower the cost of holding or transferring them. The Bank also linked this to pension savings, saying that cheaper, simpler market processes could reduce costs for individuals investing in products tied to corporate shares and bonds.
Business implications
For companies, the Bank set out several use cases related to treasury and trade flows. A UK supplier sending goods overseas could be paid upon delivery confirmation, helping address late payments, especially for smaller businesses.
It also described situations in which a business could invest spare cash overnight and retrieve it quickly the following morning. In more extreme cases, large multinational companies could move money immediately between internal accounts in different currencies during an emergency.
These examples underline why central banks and market participants are examining tokenisation beyond consumer payments. The technology is being assessed as a possible way to reduce friction in settlement, cash management and the movement of assets across borders.
The Bank said its vision is for an economy that promotes competition and offers more choice in how people pay, with traditional and tokenised money exchanged seamlessly.
Business & Technology
Anger after Thames Water announce hosepipe ban impacting 16m people
Thames Water announced that a hosepipe ban will be implemented this week across its areas, with Oxfordshire included.
Following the driest spring in years, three official heatwaves, record temperatures and sustained high demand.
But Oxfordshire residents have reacted with anger to the announcement, as the company remains on the brink of collapse, and residents claim the company fails to fix all leaks.
Hosepipe ban is set to come into place in Oxfordshire. (Image: Melanie Hobson via Getty Images)
Owen Armstrong said: “I very much hope that everyone disregards the ban, I shall gladly disregard the ban myself.
“When you pay for the water, disregard what the water companies say about using a hosepipe!
“When they can splash millions / billions out in bonuses etc then they can certainly go on a hosepipe ban!”
Alan Jones said: “The clue is in the title, the Thames isn’t drying up the reservoirs are full, oh well I’m using a hose.”
Martin CG said: “Just banned the bank from sending you money.”
Thames Water is introducing the Temporary Use Ban (TUB), also known as a hosepipe ban, for all customers it supplies with drinking water.
Pete Walsh questioned the introduction of the ban, he said “data from the Met Office indicates that the first half of 2026 was remarkably unsettled”.
“The UK experienced an exceptionally wet winter and spring, followed by an unusually wet and warm June, resulting in cumulative rainfall totals generally above the long-term average.”
Marc Bridle: “Tell Thames water to go away and go pay the bills what they can’t pay them stop polluting the rivers.”
A protest sign at Thames Water’s HQ in Reading (Image: @Athirty4)
The restrictions will come into effect at 12.01am on Thursday (July 23) and mean customers in the affected areas must not use hosepipes for non-essential activities.
This includes watering gardens, cleaning cars, filling paddling pools or topping up hot tubs.
Yesterday, a spokesperson for Thames Water told the Oxford Mail they are continuing to monitor river levels, reservoir levels, and groundwater levels as South East Water introduce a hosepipe ban.
This comes after South East Water announced that 2.4 million customers in Sussex, Surrey, Hampshire, and Berkshire will be affected by temporary restrictions from Saturday.
Both hosepipe bans come after 28 days this year have seen temperatures exceed 30C somewhere in the UK.
At the end of June Thames Water confirmed soil was drier than average, river flow in the River Thames and River Lee were below average, and reservoirs in London were 89 per cent full which is below average.
However, the water company confirmed Farmoor Reservoir was 99 per cent full, above average for this time of year.
Business & Technology
UK finance leaders face pressure to rush AI agents
Avalara has published research suggesting UK finance leaders are under pressure to deploy AI agents faster than governance processes can keep pace. The findings are based on a survey of 505 UK chief financial officers and senior finance leaders.
More than nine in 10 respondents said they faced moderate or significant career pressure to show a return on investment from AI agent spending, with half describing that pressure as significant. At the same time, 54% said their AI agent initiatives had delivered only limited measurable return so far, while 74% said deployment pressure was focused mainly on speed.
The figures point to a gap between executive expectations and the controls needed for AI use in finance, where decisions can affect reporting, tax, compliance and audit processes. The report focuses on agentic AI, a category of systems designed to take actions or make recommendations within business workflows.
Governance weaknesses appeared across several measures in the UK sample. Among respondents, 77% lacked dedicated in-house finance expertise able to understand how their AI agents work, leaving many teams reliant on suppliers and IT departments.
Almost half, 47%, said they were only somewhat confident they could explain an AI agent’s actions to an auditor or regulator. Another 21% said accountability for a significant AI agent error in finance would either be unclear or rest with no one, while 48% said AI incident response plans were either untested or still being developed.
Control gaps
The survey suggests the issue is not resistance to AI adoption but uncertainty over how to supervise it once embedded in finance operations. Respondents said the most useful steps for raising confidence in wider deployment centred on trust, data quality and traceability.
Measures cited included AI agents operating within existing systems of record, outputs grounded in verified tax, compliance and financial data, validation against known compliance requirements, supplier commitments on accuracy and accountability, and audit trails documenting each AI action.
The two most valued functions were audit-ready documentation for every AI-driven action and monitoring regulatory changes with updates applied in real time. Those preferences suggest finance teams want tools that can withstand scrutiny rather than systems that simply move faster.
Avalara commissioned the study across four markets, surveying more than 1,500 chief financial officers and senior finance leaders in the UK, US, India and Australia. All respondents had deployed, piloted or actively evaluated AI agents in financial processes over the previous year and worked at companies with revenue above USD $10 million.
The international findings closely tracked the UK numbers. Across all markets, 92% said they felt moderate or significant career pressure to demonstrate AI return on investment, while half said their AI agent programmes had produced only limited measurable return to date.
Only 7% said their organisation prioritised governance over speed, and 30% said internal controls had not been updated within the past year to reflect AI agents taking or recommending actions. Another 44% said they were only somewhat confident they could explain an AI agent’s actions to an auditor or regulator.
Executive pressure
The research places finance leaders in the middle of a broader shift in corporate AI strategy. Many businesses now want AI systems to move beyond drafting text or analysing data into areas where they can initiate or recommend operational decisions.
That creates particular tension in finance because errors can be visible, difficult to reverse and subject to regulatory scrutiny. Tax calculations, reporting decisions and compliance steps often require a documented chain of accountability, something many organisations still appear to be building.
Hugo Sarrazin, Chief Executive Officer at Avalara, said the risk comes when adoption outpaces oversight.
“Finance leaders are right to move quickly to capitalize on agentic AI opportunities, but speed without accountability creates new forms of risk, and speed without rethinking workflows limits ROI. The organizations that realize the greatest value from AI won’t simply deploy more agents. They’ll leverage agents with trusted data, governed workflows, and clear controls that enable automation with confidence,” said Sarrazin.
External industry figures cited in the report made a similar point about the need for broader expertise. The challenge, they argued, is not only technical implementation but understanding what AI agents can access, what they can change and when human approval is needed.
“Finance leaders are being asked to move quickly with AI, but governing agents requires a new combination of domain, AI, IT, and data governance expertise. As AI agents gain access to financial and compliance workflows, organizations need to know what those agents can see, what they can do, and when human approval is required. That kind of control has to be built into the architecture, not added after the fact,” said Frank Cirone, VP Commercial Strategy at Snowflake, a cloud data platform company.
Jim Lundy, Founder, CEO and Lead Analyst at Aragon Research, framed the issue as one of explainability as much as automation.
“AI agents are now moving into business processes that require trust, transparency, and governance by design. As enterprises scale agentic AI, the question becomes less about whether the technology can act and more about whether organizations can understand, control, and explain those actions. In finance, where workflows are auditable and outcomes carry real business consequences, governance and explainability will become essential requirements for adoption,” said Lundy.
Business & Technology
Santander customers told to check banking app as service axed
Millions of Santander customers will no longer receive an annual breakdown of the banking fees they’ve paid after the high street giant confirmed it is scrapping the long-running paper statement.
From August, the bank will stop sending out its yearly Statement of Fees, which gives customers a summary of charges paid over the previous 12 months.
Instead, customers wanting to check how much they’ve paid in fees will have to log into Santander’s online or mobile banking services.
The annual statement currently provides a single breakdown of charges, such as overdraft interest or fees for using a debit card abroad, as reported by creatorzine.com.
Santander said customers will still be able to access the same information digitally “anytime, wherever you are”, but it will no longer arrive automatically through the post.
The move is part of the bank’s continued push towards digital banking and paper-free services.
Santander said customers can continue to view account charges through its online and mobile banking platforms, while fee information for individual accounts will also remain available through each account’s Fee Information Document.
The bank says 9.2 million customers have already switched to paper-free banking.
On its website, Santander says: “Going paper-free means that you’ll get your statements and other important notices online and not by post.
“We have 9.2 million Santander customers who are paper-free and are seeing the benefits.”
Customers who choose paper-free banking receive an email whenever a new statement or document is available to view.
Documents remain accessible online for up to seven years, and can be downloaded or printed if required.
The change comes as banks continue shifting more everyday services online, with customers increasingly encouraged to manage their accounts through banking apps rather than paper correspondence.
Anyone wanting to keep track of their annual banking costs will now need to check their fees through Santander’s online or mobile banking instead of waiting for a yearly paper statement to arrive.
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