In switching to renminbi, corporations should review on the internal changes required, such as invoicing and trade documentation in renminbi, accounting and any other operational procedures, including engaging banks which are able to provide advice and facilitate trade financing in renminbi. Banks need to be ready in this area, to develop the system to support the trade financing and to be familiar and current with the rules and regulations of the Chinese authorities. Further improvement should be looked into to entice more participation, and efficient ways should be explored to ease trade facilitation in renminbi. In another aspect, this space can also capitalise on another work area of the Financial Market Committee in looking at the introduction of a more standardised documentation requirement across industry. Coupled with the broader and more flexible trade financing facilities and hedging tools, this will create a more business-friendly market which will in turn amplify participation. 5. Last but not least, is to develop investment products in renminbi. In the past, the efforts in promoting the use of renminbi has primarily emphasised transactions or trades in goods and services between the two countries. With the transformation and internationalisation of renminbi, we should accelerate our understanding of the renminbi financial markets and to see the renminbi as a viable choice of currency for financial investments. In November 2015, China granted RQFII country quota of RMB50 billion to Malaysia to enable financial institutions here to invest in China’s onshore financial markets. The renminbi financial market in Malaysia remains incomplete with limited investment avenues.

The same could be said about cloud computing technologies, which enable the information systems of all kinds of businesses to be adapted flexibly to their changing needs, converting a large part of their fixed costs into variable costs. This technology may notably reduce the costs for banks of their information systems, which, precisely due to the use of new technologies, are growing rapidly, although there are security risks that must be controlled. Another example are mobile payment services. These may seem new, but ultimately the transaction usually ends with an interbank transfer or a simple credit or debit card payment. Spanish banks have been pioneers in the euro area in the incorporation of this technology 4/7  through the Bizum platform, an interbank initiative for immediate payments, allowing payment to be made from one account to another in a matter of seconds. The list of technological developments available to credit institutions is longer. To mention some more, I would also point out the new methods to validate identity by means of voice or image, which make it possible to identify and register new customers remotely, bypassing the traditional branch network; or the provision of automated advisory services, known as “robo advice”, which enable advice to be provided in areas where just recently it was impossible to imagine that automated solutions could be developed. 2. Second, the development of new services will require regulation in accordance with the risks they introduce into the system, both in terms of customer protection and the stability of the financial system.