Smart Economy Networks Initiative

Future economic growth will be driven by smart data and interconnected networks. While mobile, social, and cloud platforms shaped the last two decades, the next era will centre on smart economic networks powered by artificial intelligence, open data, and distributed ledgers. These networks will transform how we allocate resources by allowing diverse, high-quality data to flow securely across borders, enabling the digitisation of contracts, assets, and services.

At the heart of this transformation lies the principle of individual data ownership: people should be able to access, combine, and share their data on their terms—deriving value from its use. The UK’s open banking model, already serving over seven million users, demonstrates how structured data access via APIs can enable better services, innovation, and competition.

The potential goes far beyond finance. Imagine a small business combining smart meter data, financials, and public building registries to access Net Zero transition financing. Or a supply chain audit that uses verified digital identities and timestamped documents to meet ESG goals in real time. Realising such opportunities requires open, global standards and infrastructure—shared data spaces, pseudonymised exchanges, and smart ledgers. The UK’s experience with the Open Banking Implementation Entity (OBIE) and open standards provides a unique first-mover advantage.

The Smart Economy Networks Initiative, developed as a key theme during the 695th Lord Mayor's tenure and supported by Z/Yen during that year, has since evolved into a broader programme that Z/Yen continues to lead. The initiative convenes institutions across the City of London and internationally to co-develop these systems. The current focus is piloting cross-border, data-driven services in sectors with established open data ecosystems. This programme directly supports the City of London’s Vision for Economic Growth and the broader aim of global digital interoperability.

We are now seeking funding and strategic partners to take this work to the next level.

What funding will enable:

• Technical pilots demonstrating live cross-border data services
• Development and adoption of international open data standards
• Applied research on identity, permissioning, and verification mechanisms
• Convening workshops and technical roundtables across key verticals
• Outreach to regulators, trade bodies, and emerging market stakeholders

Recent Output

A deeply considered report from March 2024, From Fintech to Ubiquitech: Accelerating the Wider UK Digital Economy, led by Dr Ruth Wandhöfer, sets out a starting programme. From Fintech to Ubiquitech

Towards a Smart Economy followed in October 2024. Towards a Smart Economy

Also released in October 2024 was our third report, The City of London – An Identity for the New, Smarter Economy. Smart Economy Networks Report

What we are proposing to demonstrate

Initial areas we believe may be most fruitful are:

• Trade & supply chain verification (HMRC)
• Pensions administration (Lumera)
• Fund management reconciliation (Nickel Digital)
• Fraud and credit risk reduction (Estonia – Mifundo, Salv)
• Privacy-preserving data routing (Demos – Hyperroute)

Future verticals may include energy, telecoms, health, aviation, maritime, and digital capital markets. Common horizontal priorities include:

• Payments – including data on fraud and verification
• Identity – providing digital identity exchange infrastructure
• Notarisation – timestamping and document authentication

Key contributors and partners to date:

• Steering & Governance – Worshipful Company of World Traders
• Programme Management – City University
• Technical Architecture – Z/Yen, Demos, Mattereum
• Infrastructure Advisors – Estonian Embassy (X-Road expertise)
• Sector Leaders – HMRC, Lumera, Nickel Digital
• Standards & Verification Bodies – UKAS, CISI, ABI, UK Finance, Innovate Finance, CFIT, CBI

Technical focus: The programme will build on proven frameworks like Estonia’s X-Road, adapting them to support privacy, reliability, and auditability in global smart ledger environments.

Background research and prototypes include:

• Information Rules: Smart Ledger Architectures & Distributed Permissions – Shenk & Mainelli (2018)
• The Economic Impact of Smart Ledgers on World Trade – McWilliams et al. (2018)
• To Be, To Have, To Know: Smart Ledgers & Identity Authentication – Morris (2019)
• IDChainZ prototype – www.idchainz.com

This initiative places the UK—and London specifically—at the forefront of shaping a smart, interconnected global economy. The work is underway. We now invite funders, sovereign wealth stakeholders, philanthropic foundations, institutional investors, and corporate sponsors to collaborate and support the next phase.

To express interest, propose collaboration, or receive further information, please contact Professor Michael Mainelli.