2.2 Banks are adapting to the digital and green transition [SLIDE 7] Beyond the regulatory response, banks themselves will be in charge of another course of action: far from being merely a source of risk, the digital and green transition offers growth opportunities for the banking sector, which has already found ways to adapt. Efforts to adapt to the digital challenge are already under way, as illustrated by three examples. First, the ACPR study on the digital transformation of the banking sector published in January, shows the wide array of initiatives taken. Strategies aimed at acquiring fintechs or developing partnerships with them point to the emergence of a new rationale of “coopetition”. This kind of cooperation by competitors is proof that banks and fintechs can grow together and that the digital transition can be a boon for all participants. Next, banks are increasingly harnessing new technologies. Artificial intelligence, as I mentioned earlier, is being built into new operational systems, where it is helping to improve aspects ranging from customer relations to risk management. Banks are also experimenting with blockchain technologies. And they are collaborating on an initiative that has our strong backing: the European Payment Initiative, more widely referred to as EPI, seeks to provide Europeans with an everyday payment solution that combines card and mobile components and addresses all use cases. Banks are also adapting to ensure the transition to a sustainable economy.
Running through to 2024, the plan aims to integrate climate-related risk into the ECB’s monetary policy strategy, not just in asset purchases but also in the framework governing the collateral eligible for central bank refinancing. Central banks themselves also have a role to play in steering investment flows towards the green transition, in particular by greening their own funds. The Banque de France was the first Eurosystem central bank to adopt and implement a Responsible Investment Charter, which it did in 2018 for its own funds portfolios. It aims to limit the exposure of its assets to climate-related risk while also taking account of the impact of its investments on the environment, in keeping with the double materiality principle promoted by the EU. In conclusion, there is certainly no shortage of challenges for banks. However, I hope I have shown that these challenges are also opportunities. Accordingly, we should neither overstate nor underestimate their significance. Thank you for your attention. 6/6  BIS central bankers' speeches