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.

Arthur Yuen: Regtech in the smart banking era - a supervisor's perspective Remarks by Mr Arthur Yuen, Deputy Chief Executive of the Hong Kong Monetary Authority, at HKIB Annual Banking Conference 2018, Hong Kong, 27 September 2018. * * * Financial Secretary, Dr Patrick Fung, Ms Carrie Leung, distinguished guests, ladies and gentlemen, good morning to you all. 1.Let me take this opportunity to congratulate the Hong Kong Institute of Bankers on its 10th Annual Banking Conference. In 2009, banking professionals came together at the inaugural Conference to discuss responses to the Global Financial Crisis. Over the past decade, Conference participants have also examined other important strategic issues, including opportunities arising from RMB internationalisation, transformation of the banking sector amid a rapidly changing macro and regulatory landscape, and the implications of accelerating digitalisation. I am sure you all agree that the Conference is an important flagship event for the industry, and it offers a constructive platform for exchanging views on topical issues. 2.The HKMA has long supported the Conference, because it gives us an opportunity to share our views on significant regulatory issues and policy initiatives, with our seven Smart Banking initiatives being the latest ones. As the Financial Secretary mentioned earlier in his keynote, substantial progress has been made in each of the seven Smart Banking initiatives since they were announced last year. The Financial Secretary has already highlighted the progress made by the HKMA in respect of those initiatives and therefore I won’t repeat it.