I have been talking a lot about our efforts to promote diversity and innovation through a level playing field. That reflects our supervisory role. Equally important is our role in fintech market development. This market development mandate is the context for our new data strategy. Let me give you some background. Data and the next era 17. Hong Kong businesses and people are embracing technology. They’re ready for the future. With more data and more analytical tools at our disposal, we should ensure that our data infrastructure continues to improve. Let’s consider where we are today. 18. To begin with, valuable and rich data are scattered across different sectors and entities. It’s often hard to access these data – and it’s hard to verify their validity. 19. What is more, information moves between data providers and banks via a whole host of bilateral, one-to-one connections. Those connections lack compatible protocols and standards. That makes data sharing inefficient and difficult to scale. 20. All of this makes it hard for bankers to collect holistic information from customers about their business or financial activities when they want to provide credit or related services. And that creates real impediments to banks’ ability to better serve their customers. 21. Impediments for banks often mean painful consequences for customers, especially small and medium-sized enterprises. When banks can’t perform credit assessments based on up-to-date business data, they may instead require collateral such as property before making a loan. This is a longstanding problem with SME financing. 22.

To enter the Eurozone is a very important, very grave and irrevocable act. Neither the accession country concerned nor the Eurozone could afford the risks associated with a mistaken decision. •  Thirdly, accession countries must strengthen their fiscal and external positions. Given the aim of attaining real convergence over time, accession countries will have to devote significant public resources to funding investment. However, candidate countries’ weighted average public deficit amount to 3.6% of GDP in 2001. The fiscal consolidation currently planned by some accession countries is welcome and likely to require sizeable expenditure cuts or tax increases. Looking ahead, accession countries will have to implement fiscal consolidation very credibly with a view to avoiding the risks associated with the existence of high “twin deficits”, i.e. fiscal and external. •  Fourthly, a sound and efficient banking and financial system is key. Significant progress has been made over the past few years in rehabilitating the banking sector and encouraging foreign ownership. The latter has also contributed to greater integration into the EU financial system. Nevertheless, adapting the legal and regulatory framework is a process entirely in the hands of the accessing countries. The intermediation role of the banking sector remains fundamental for the efficient use of capital and sustained growth. Progress in corporate governance, the enhancement of the legal and supervisory frameworks that support the banking sector, and an efficient fight against money laundering, are also crucial. These improvements are conducive to achieving the macroeconomic objectives of the accession countries.