I would nevertheless like to demonstrate how the Smart Banking initiatives are re-shaping the banking sector landscape. Industry responses to the Smart Banking initiatives 3.I have always looked at the Smart Banking Initiatives as a journey. And I am glad to say that we have made good progress with our relevant policy measures throughout this journey. I am particularly excited about the encouraging responses from the banking industry and tech community, which share a common goal of transforming Hong Kong’s financial ecosystem by creating better synergy between banking and technology. Let me highlight some of the positive responses we have observed in respect of these Smart Banking initiatives. 4.First, from the perspective of the banking industry, - We have seen the launch of more than 70 major digital banking and fintech initiatives from various banks since the announcement of the seven initiatives last year. There were more than 20 projects related to mobile payments; 12 biometric authentication initiatives using different biometric attributes, such as fingerprint, finger-vein, voiceprint and facial features; 7 software security tokens; and 30 others, including chatbots powered by artificial intelligence, and enhanced financial services leveraging distributed ledger technologies and social media platform integration. - In addition, we already had the successful launch of remote onboarding services in Hong Kong, and more than 10 banks are preparing to launch similar services. Also, around 10 banks plan to launch online personal lending services that leverage machine learning technologies and data analytics.

Our reorganization strategy focuses on four aspects, namely organizational structure and work process, human resource management, decision-making process, and database and information technology. Our hierarchical structure has now been reduced from a total of seven layers to four. Authorities and responsibilities are being further delegated toward a lower level to the operating officers in charge. This helps reduce the previously lengthy approval process and increase our flexibility. New departments have been established to better cope with the rapidly changing economy and the rising information need of the organization. These include the Data Management Group, the Information and Public Relation Group, the Planning Group who conducts a bank-wide risk assessment as well as a new Department of Risk Management and Information Technology Examination, who monitor risk profile and risk management at the financial institutions. In addition, our business processes are now more client-oriented with a new website, new voice-mail, and new central point of contacts being offered as services to our stakeholders. Both the Netherlands and Thailand are small open economies in the world market. To survive the tide of globalization, we both need a well thought out strategies. We have to choose our battleground and cooperate with friends around the world. To do this, local strength has to be further strengthened while lessons and technologies must be learnt from others. Here, international co-operations through jointed ventures, through foreign direct investment, or through international trade will play major roles in our successes.