(MEPS) and other payment network operators, each financial institution can now access and leverage on the entire banking infrastructure to achieve economies of scale. In order to remain competitive, financial institutions should strive to provide value added services and good user experience to their customers. It is important to bear in mind that ultimately customers would need more than just a payment solution. In this regard, the ability to offer holistic, end-to-end financial solutions that meet the customers’ personal and business needs would be the key differentiator. FinTech and its potential The proliferation of Internet and mobile technology and the rise of disruptive technology in the financial sector, also known as FinTech, has also fuelled new business models and  4  BIS central bankers’ speeches  created opportunities for new sources of growth. The offering of convenient, affordable and innovative financial solutions particularly by ‘agile’ non-bank service providers challenges the traditional business models and necessitates a re-evaluation of business strategies by financial institutions. Hence, it is timely for financial institutions to invest in financial innovation and explore the formation of strategic alliances with other innovative financial service providers to capitalise on such emerging trend. It is in the interest of the financial services industry to adopt technological advancement in their business model. It is better to embrace it now rather than to be embarrassed by it later. Conclusion Each participant in the domestic payment market has a critical role to play in advancing the country’s migration to e-payments.

First, I will outline BNM’s role in fostering an enabling environment for network expansion as well as in promoting competition, innovation and choice in the payment landscape;  ii. Second, I will highlight the key priority areas for stakeholders that could accelerate the displacement of cheques and cash with cost-effective e-payments;  iii. Third, I will outline the importance of a synergistic collaboration between MyClear and the financial institutions to deliver innovative payment solutions and meet user needs; and  iv. Fourth, I will highlight the need for the financial institutions to provide end-to-end and value-adding financial solutions to their customers. 1. Fostering an enabling environment for network expansion whilst promoting competition, innovation and choice  An efficient and well-functioning payment system must not only have the economies of scale to enable lowering of costs, but also the quality of services to serve the needs of an increasingly demanding and sophisticated users. We designed our developmental efforts into two-fold: i. Foster an enabling environment for infrastructure building and network expansion to achieve the economies of scale; and  ii. Promote effective competition among the industry players to spur the development of innovative solutions, provide greater choices and value proposition to the public and in the process, lower costs. BIS central bankers’ speeches  1  Over the past few years, BNM has played the role of a catalyst by instituting reform measures and introducing market incentive mechanisms to enhance the accessibility and the quality, affordability and security of the e-payment services to the general public.