41 For example, Hoekman et al (2004), Stoyanov and Zubanov (2012) and Newman et al (2015). 42 See McCafferty (2014) for a discussion of productivity from a sectoral perspective. 40  10  All speeches are available online at www.bankofengland.co.uk/speeches  10  manufacturing having fallen from 17% to 7% since 1990. Because productivity growth in manufacturing is higher than in services, this shift could plausibly account for some of the fall in aggregate productivity growth. Even if we correct for this compositional effect, however, the slowdown in UK productivity growth remains. Chart 13 looks at the evolution of different UK sectors’ productivity, while Table 2 looks at the contributions of various sectors to UK productivity growth in the decades either side of the global financial crisis. Pre-crisis, the strongest rises in measured productivity were in manufacturing, information and communication and financial services, all of which experienced annual growth of over 4%. But growth was not confined to these sectors, with virtually all sectors making a positive contribution to productivity growth. In the period since the crisis, those pre-crisis trends have changed dramatically. Virtually every sector has seen productivity flat-line. The contributions of all sectors to productivity growth have fallen and most are tightly bunched around zero (Table 2). 43  Whatever has caused UK productivity growth to fall, it has done so  on a generalised, cross-sector basis. It is sometimes asserted that, without the collapse in financial services output associated with the financial crisis, the UK’s productivity performance would have held up.

This is expected to be a catalyst in the provision of end-to-end financial services, particularly in a ‘low touch’ environment. The financial industry is taking steps to ensure safe and secure introduction of e-KYC, with several banks planning to launch e-KYC solutions in the coming months with more to follow in 2021. We are also currently in the final stages of developing the licensing framework for digital banking, which we envision can enhance access to affordable and quality financial solutions, particularly for the underserved and hard-to-reach market segments. From our sandbox experience, we also observe similar digital alternatives and solutions being developed in the insurance and takaful sector. Our shift towards e-payments has also been sustained, with a 47% increase in the volume of transactions made through internet and mobile banking, and a 260% increase in active e-wallet users between August 2019 and 2020. Furthermore, good progress has been made in enabling the interoperability of e-wallet services offered by banks and non-bank e-money issuers. Looking ahead, Bank Negara Malaysia 1/3  BIS central bankers' speeches  will continue to focus on fostering well-designed regulations to facilitate digitalisation and innovation in financial services. All these efforts are intended to support the financial services industry accelerate its transition to an age of digitalisation and innovation. We have high hopes for Islamic Finance to capitalise on this. In 2017, we launched the Value-Based Intermediation (VBI) initiative.