While undoubtedly exciting, these developments bring in their own unique risks and challenges. I would like to flag a few of them, particularly from the standpoint of financial stability. First, cyber security risk is becoming an increasingly major part of banks’ operational risk landscape. As various hacking episodes illustrate, now fraud can be perpetrated swiftly, remotely, and on a massive scale. Though such occurrences are still uncommon, the impact is substantial, given the high degree of interconnectivity of our systems and markets. Second, fintechs are unbundling parts of the finance value chain, offering financial services directly to customers. Apart from increasing competition, and squeezing banks’ profits, fintechs are moving part of the banking business to shadow banking which remains lightly regulated, if at all. Likewise, tech-enabled peer-to-peer lending and crowdfunding can further  2  expand the scale of shadow banking, and may also exacerbate procyclicality. As this discussion indicates, innovations are by nature a disruptive force, causing a considerable degree of instability. Therefore, regulators face a daunting task of keeping financial systems safe and stable while continuing to ensure the convenience and efficiency that modern technologies offer. To ensure that, we must strengthen our own capacity to identify, monitor, and mitigate the risks from technological innovations. This would require closer cooperation with the banking industry as well as among regulators, both within a country and across the borders. Yet that is not enough; we also need to leave our comfort zone and engage with other stakeholders, primarily the tech firms themselves.

Therefore, the IOB has worked on developing two programs, namely, •  Personal Financial Planning Program. •  Wealth Management Program. These two programs have been designed according to the latest international scientific standards. They have been designed after the model of capabilities required in a successful and professional financial planner and wealth manager. A number of members of the training staff in the Institute of Banking have participated in this process, and experts have also been hired from prestigious universities and educational institutions outside the Kingdom. As a result of this model, more than ten programs in financial planning and four programs in wealth management have been carried out. The programs have been commended by Saudi banks. Dear Attendance, Management of investment operations requires specialists enjoying necessary knowledge, required skills, and professional conduct. The role of a financial advisor has gained more importance, and it should be practiced by qualified professionals who care, in the first place, for the interests of their customers who have put their confidence in them, and they should comply with the application of the policies of the supervisory authorities and financial institutions to which they belong. The importance of transparency and responsibility increases with the increase in investment awareness and competition among financial institutions. Here arises the evident need to develop standards and ethics of the profession and to implement such standards in a very professional and scientific integrity. Dear Graduates, The responsibility entrusted to you must be borne with professional enthusiasm and competence.