BIS Innovation Hub Announces Ambitious 2025-26 Work Programme
2025: The BIS Innovation Hub, overseen by Cecilia Skingsley (inset), is currently engaged in 26 projects | Credit: Dee (Pixabay) & BIS (inset)
The Bank for International Settlements (BIS) has unveiled its comprehensive work programme for 2025-26, spotlighting 26 innovative projects that underscore its commitment to harnessing technology for financial stability. Among these initiatives, two pivotal projects utilize Artificial Intelligence (AI)-based tools aimed at enhancing financial supervision and promoting green finance.
A Focus on Financial Supervision and Sustainable Development
The BIS Innovation Hub was established in 2019 and has evolved into a pivotal platform that aims to foster insights into financial technology (fintech) trends. The hub provides a collaborative space for central banking professionals to develop tools designed to enhance the functionality of the global financial system. The latest work programme, revealed on January 14, marks a significant milestone as it enters its sixth year, showcasing a matured phase in its evolution.
This year’s agenda not only continues the BIS’s legacy of technological advancement but also emphasizes the urgency of sustainable financial practices in a rapidly changing global landscape.
Overview of the Innovation Hub’s Global Reach
The BIS Innovation Hub operates across several key locations, including Singapore, Hong Kong, Frankfurt/Paris (as part of the Eurosystem centre), London, Stockholm (Nordics centre), Toronto, and its headquarters in Switzerland. This geography allows for strengthened collaboration and information exchange among central banks and financial institutions worldwide. Currently, 31 projects have been completed, contributing to a portfolio rich in technological innovation.
Introducing AI-Driven Projects: AISE and Gaia
Two standout projects illustrated in this latest work programme are Project AISE and an extension of Project Gaia.
Project AISE, or Artificial Intelligence Supervisor Enhancer, is designed to create a sophisticated virtual assistant tailored for financial supervisors. This innovative tool aims to automate critical tasks and enhance the supervision processes in real-time, thereby significantly improving efficiency.
Meanwhile, Project Gaia, which has already drawn attention for its focus on climate-related risk analysis, is entering a new phase. The goal is to expand its capabilities beyond the initial use case, reaching into broader applications within the sphere of green finance.
Emphasizing Technological Synergy and Community Engagement
A central theme highlighted in the BIS’s recent update is the strengthening of horizon-scanning activities. This involves tracking emerging technological developments and identifying potential gaps that could benefit from innovative solutions in central banking.
Cecilia Skingsley, the head of the Innovation Hub, remarked on the ongoing commitment to explore new possibilities: “Our work programme underscores our commitment to explore the art of the possible, building on the experience gained in the first five years.” The emphasis here is on fostering collaboration, promoting synergies among existing projects, and actively engaging with various stakeholders.
The Significance of Project Agorá
In addition to exploring AI tools, the BIS is also progressing with Project Agorá, a significant cross-border tokenization initiative. This ambitious project involves collaboration between seven major central banks and 41 financial services firms, aiming to enhance the effectiveness of wholesale cross-border payments.
As one of the hub’s largest projects, Agorá reflects the increasing complexity and geographical scope of central banking collaborations. A detailed report on the findings and developments from this initiative is anticipated by the end of 2025, which underscores the BIS’s innovative commitment to improving international financial infrastructure.
Transitioning Completed Projects to Central Banks
The BIS has announced the impending transition of two notable projects to their respective central bank partners. Project Nexus focuses on standardizing connections between countries’ instant payment systems, moving towards live implementation. Project mBridge, which aims to establish a multi-central bank digital currency platform based on distributed ledger technology, has reached the ‘minimum viable product’ stage and is set for handover in the near future.
Innovation Hub Leadership and Management Changes
Recent months have seen the BIS Innovation Hub undergoing leadership changes, particularly with the Toronto centre. Following the departure of inaugural head Miguel Díaz to take up a position at BIS HQ, Baltazar Rodriguez has been acting as the leader while advancements in innovation strategy are facilitated by Karmela Sophia Holtgreve, who has just joined as deputy head of operations.
With a strong management team in place, the hub is poised for continued growth. This includes experts leading centres across the globe, from Singapore to Switzerland, each focused on fostering innovations tailored to their respective markets.
Collaboration and Partnerships: Hallmarks of Innovation
The BIS Innovation Hub continues to champion the importance of collaboration in the face of evolving technological landscapes. The sharing of insights and experiences within the central banking community remains a vital component of the initiative, promoting best practices and innovative solutions to meet emerging challenges.
With an increasing number of central banks keen to collaborate, the hub is setting the stage for significant advancements in fintech, particularly in areas such as digital currencies, payment systems, and regulatory technology.
Shaping the Future of Central Banking
As central banks navigate the complexities of evolving financial technologies, the BIS Innovation Hub stands as a beacon of creativity and foresight within the global financial system. By addressing critical areas such as green finance, supervisory practices, and international payment systems, the hub is shaping a future where financial stability is maintained through innovative means.
Conclusion: The Path Ahead for the BIS Innovation Hub
The Bank for International Settlements continues to forge ahead with a vision that integrates technological innovation into the core of central banking practices. As the 2025-26 work programme unfolds, it paves the way for a future characterized by enhanced efficiency, sustainability, and collaboration in the global financial landscape. The ongoing initiatives illustrate the BIS’s commitment to adapt and thrive amid changing financial conditions, ensuring that central banks are equipped to fulfill their critical roles in supporting economic and financial stability for all.
