Digital banking has made its way to the old lady of Threadneedle Street. At his annual Mansion House speech, Bank of England governor Mark Carney announced the 300-year-old institution would allow financial technology companies to deposit funds overnight, opening up the inner sanctum of the monetary system to financial upstarts.

Mr Carne's drive to modernise payments should be lauded. The post-crisis consolidation of commercial banks has stymied digital outfits. By offering fintech companies access to the BoE's vaults, the governor may inject much-needed competition into the sector. What must follow is proactive regulation to ensure that new payment systems come under the same scrutiny as their older rivals.

Commercial banks have traditionally had exclusive access to deposits at the UK's central bank, offering them a competitive advantage through cheap banking services. The BoE, which can create sterling from thin air, is the safest creditor imaginable. Another potential advantage for consumers is they could be paid the central bank's often favourable interest rate directly — rather than relying on traditional banks to pass on rate rises.