Unquestionably, digital natives make up a very large and, above all, growing number of the 1/5  BIS central bankers' speeches  population, and they are naturally an attractive customer segment for the sector. However, we must not forget that there are still sections of the population that continue to rely on traditional banking services. No “neobank” plans on competing to attract the least digitally savvy segment of the population. The report describes the potential strategies being tested to lure and retain these groups, such as shifting from human service to virtual interaction, where queries are answered using machine learning or artificial intelligence techniques (such as chatbots). These initiatives are interesting, but overcoming their limitations will require further efforts to support education, both in digital and financial literacy, since these new channels open the possibility of many more services being arranged with a single click. The techniques used also need to respect some of our society’s fundamental values, as reflected by the proposed regulation of the European Parliament and of the Council on the use of artificial intelligence algorithms. Moreover, given that these groups may be more vulnerable to fraud and the rising cyber threat, monitoring must be maximised. In this regard, the report points to deepfake technology, which could put consumers at risk of identity theft. Yet more conventional fraud techniques, such as phishing, can be equally dangerous for those who only envisage arranging a financial product by walking into a branch, shaking hands and signing a document.
Thomas Jordan: Prospects for the Swiss economy in 2009 Summary of a speech by Mr Thomas Jordan, Member of the Governing Board of the Swiss National Bank, at the erfa-Gruppe, Weinfelden, 15 January 2009. The complete speech can be found in German on the Swiss National Bank’s website (www.snb.ch). *  *  *  Following a long, strong and broad-based growth phase, the world economy moved into a major recession in mid-2008. About a year after the beginning of the unprecedented financial market crisis, there was a radical turnaround in the global economic outlook. The European and Asian economies were not disconnected from the US, as had been hoped. The Swiss economy leans heavily on its export and financial sectors and faces a difficult year. A recession appears unavoidable in 2009. Consequently, the skilful deployment of monetary and fiscal policies as well as optimal conduct on the part of business practitioners in Switzerland are particularly important. Monetary policy can be changed quickly and its impact is relatively rapid through its influence on interest rates and the exchange rate. The SNB has reacted resolutely to the deterioration in the economic situation and has reduced interest rates to almost zero. If necessary, monetary policy can be rendered even more expansionary through a series of alternative instruments. In the case of fiscal policy, the focus is on effective automatic stabilisers – first and foremost, allowing the occurrence of temporary budget deficits, together with unemployment benefits and compensation for short-time working.