Norman T L Chan: Cybersecurity developments for Hong Kong’s banking sector Keynote address by Mr Norman T L Chan, Chief Executive of the Hong Kong Monetary Authority, at the Cyber Security Summit 2016, Hong Kong, 18 May 2016. *  *  *  Good morning Mr. M.Y. Wong, Frank, Carrie, Chung Sir, Ladies and Gentlemen, It is a great honour to be invited to speak at today’s Cyber Security Summit. Importance of cybersecurity 1. It is hard for us to imagine how quickly the digital and internet technology has transformed the way in which we live our lives. Twenty years ago many of us were wondering whether internet banking would become widely accepted as a preferred and trusted channel for conducting banking businesses. Now it would be hard to contemplate how a retail bank can survive a single day if the internet or digital banking services are down for whatever reasons. There are very good reasons why internet banking has gained such high popularity as a channel of service delivery in the banking and other financial sectors. In the cyber world, the usual constraints imposed by the physical world no longer exist. Information, messages and transaction instructions can be communicated between banks and their customers easily and almost instantaneously regardless of the location of the parties concerned. The cyber world offers the convenience and speed in accessing banking and financial services that were unthinkable 10 to 15 years ago.
The advance in digital technology meets the needs of the rapidly growing client base with ever increasing demand for a wide diversity of services. However, very often people tend to focus on the ease and low cost of access in digital banking and do not pay too much attention on the security of the cyber world, at least until they are hit by cyber attacks. 2. Given the virtual nature and interconnectedness of the cyber world, clearly the security of the cyber world would require different approach and tools from those used in the physical world. In the real world, you would protect your home and property by installing a safe door with a strong lock. You may want to buy a safe deposit box to store your cash and valuables at home. Some may even subscribe to an anti-burglary system. For those who take their home security even more seriously, they may hire on-site security guards, just like the kings and queens who build heavily guarded forts to protect them and their families from the attacks by their enemies. Well, one thing for sure, all these security or safety measures do not come cheaply but it is the price that people know that they have to pay for the protection of their physical properties. 3. In the cyber world, just like the real world, there are plenty of risks and dangers.