But as I mentioned earlier, confidentiality and privacy should not be compromised. Part of future-proofing our payment systems is to enhance the efficiency of cross-border payment services. In this globalised world, there is a growing demand for faster, reasonably priced and more transparent cross-border payments. This will become even more important as international trade and investment linkages deepen, such as through the growth of e-commerce. Yet, cross-border payment services still pale in comparison to domestic payments, which are increasingly real time and zero cost. PayNet and the payment system operators in Indonesia, Singapore, Thailand and Vietnam have entered into a Memorandum of Understanding (MoU) to link their respective real-time payment systems. This will give rise to great opportunities for the region to forge closer economic and financial integration. The industry should capitalise on such developments to enhance their cross-border payment offerings to better serve their customers, reduce costs and enhance safety. Harnessing greater efficiencies of cross-border payments can be a lucrative area and those who can innovate will certainly benefit most. Embracing digital disruption that redefine payments This brings me to my second point. Technology, as you know, is fundamentally changing the way we live. Many industries have redefined themselves and embraced digital disruption to remain relevant. Unlike previous disruptions that came from within the industry, we now see enormous interest in mobile payments and the proliferation of non-bank payment providers. Data collected showed an increase in the number of non-bank e-money issuers from 26 in 2016 to 41 as at the end of last month.

Our regulatory focus going forward will take into account the potential for greater market transparency and competition. Market discipline will be strengthened. The regulatory framework will be improved to ensure that e-payment services remain secure and reliable. Regulators will not be the cause for bankers’ inertia. In the coming months, the Bank will introduce minimum standards for the nascent but growing area of mobile payments. Mobile payment providers will be required to disclose key security features of their services, such as in-app safeguards against malware and protection against unauthorised transactions. This will make it easier for consumers to compare between different providers, thereby promoting greater consumer empowerment to make better informed decisions. Thirdly, enhancing customer awareness of basic safety tips is paramount as a first line of defence against payment fraud. This is particularly relevant for the emerging modus operandi of social engineering, where fraud victims are duped into disclosing confidential information that are used to commit fraud. In this regard, the industry can do much more to educate consumers. Consumer education initiatives have to be more targeted. They should be designed to address specific modus operandi that are known to be prevalent or emerging. The messages should be simple and tailored to the diverse profile of payment users. This should also account for demographic, behavioural and psychological factors that may be at play. Financial institutions must also regularly review and measure the effectiveness of consumer education initiatives. If the results are not satisfactory, then the strategy must be changed.