Just as the cogs and wheels of a watch all mesh together, the changes unfolding in specific sectors are not occurring in isolation; they are interrelated, as the slide shows. What is driving these fundamental changes? The initial impulse for transformation often comes from new technical possibilities such as smartphones and tablets, Big Data applications or artificial intelligence. These technologies are opening up new payment services for end clients (e.g. Twint) and new business models for companies. The mantra here is invariably faster, easier, cheaper. At the same time, technology is lowering barriers to entry for new players in the market for payment services, such as fintech companies. And finally, the payments infrastructure and regulatory framework play an important role, in terms of both securing the payment system and ensuring fair competition – which in turn should permit further innovation in the future. These changes are presenting major challenges for all stakeholders in the payments ecosystem (cf. slide 3). I would like to discuss four of these in greater detail. First, the central role of the client interface; second, the disaggregation (or ‘unbundling’) of value chains; third, digital ledger technology (DLT); and fourth, cyber risks. The first challenge concerns client contact and client data. For established providers of cashless payment services, such as the banks, the payment interface has long been an important client touchpoint. In the digital age, non-banks, such as large internet platforms and online retailers, can leverage payment data to target their clients with personalised products.
Results of such studies can help in the improvement of financial education initiatives, and serve as a powerful tool to instil commitment of consumers. Take the lead from FOMCA, which has the experience and expertise to embark on this approach. In conclusion, I have shared with you our vision and aspiration for financial well-being of the nation. To realise the vision and aspiration, we need to elevate the financial literacy of Malaysians through a national strategy for financial literacy which will chart our journey in realising the financial well-being of Malaysians. However, having a national strategy is only meaningful if it delivers what it is designed to achieve. This journey will indeed take time, but it is worthwhile, as ‘big journeys always begin in small steps’. Let this conference be the platform for us to share our thoughts and discuss our ideas to realise this vision. Thus, let me conclude by wishing you a fruitful session and an engaging conference ahead. 4/4  BIS central bankers' speeches