Balance between innovation & growth and security  Talking about balancing between innovation & growth and security, in the world of digitization, it is a challenge to find the right balance between innovation & growth and security which lie in our responsibilities. First of all, we have to understand the creation of the matters as well as their main drivers. Innovation and growth result from consumer’s and business’s demands for variety, speed and lower cost that come with competitions to develop such technology facilitating financial transactions and creating sophisticated banking products. Seeing that, their main drivers are users’ demand for financial facilities and technology together with a need for proper uses of banking products and services, leading to security concerns, which have occurred in parallel with the innovation and growth. Security of IT system uses are prioritized as one of the most considerable issues, due to its importance and interconnectedness, to accomplish our own goal of financial system stability that is at the heart of effective supervision. So, it is our responsibility to prevent such fragility before it is too late. 2. Regulatory schemes, bank business models and IT platform  In the world of highly competitive markets, in particular the banking sector, players have continuously tried to create new banking products to serve the needs of consumers and to move forward to penetrate market shares. As a result, sophisticated banking products along with adaptive bank business models have emerged. Unfortunately, once regulators respond to the changes steps after, financial crisis comes.

In Q2 this year, there are around 8.7 and 3.2 million agreements in Internet and mobile banking, respectively, of which 43 and 24 million transactions in volume that cost approximately 5,000 and 306 billion baths. Some banks, therefore, strategically reduce the role of branches, intentionally pay attention to Virtual Banking Concept, to efficiently reciprocate the target customers and to facilitate international businesses that tend to grow due to trends of globalization and economic integrations. The growth of IT investments and sophisticated products as well as advanced services in banking industry comes with a concern on “security ”, which is the challenging key to propel the sustainability of such a growth. In our role as central bank, we put “security” as our first priority align with standard setting to promote advancement of banking services. ii. The role of central bank (BOT)  What is our role? We have aimed at setting standards to create domestic and international banking networks as well as to promote banking and payment system stabilities by developing access to financial services including financial infrastructure for cross-border payment and IT systems or other innovations aligned with security. In terms of cross-border innovation, the Bank of Thailand in association with the ASEAN central banks established the Working Committee on Payment and Settlement Systems:  2  BIS central bankers’ speeches  WC-PSS in 2010 to study payment and settlement system environments in member countries and to present regional strategic plans in order to serve economic integration in 2015.