So far, I have mainly spoken about domestic payments, but innovation is also transforming payment systems across borders and currencies. For example, the SW IFT Global Payment Initiative has contributed to faster and more transparent cross-border payments. However, a large proportion of cross-border payments do not go through SW IFT. Cross-border payments are generally expensive, slow and opaque. The services offered are not of the same standard as for domestic payments. The challenges have long been highlighted by international organisations, but implementing changes has proved demanding. The G20 and the Financial Stability Board (FSB) are behind a new and forceful initiative. The FSB has identified measures and recently published a roadmap for their implementation. I hope that this can be a breakthrough in the work to improve crossborder payments. Furthermore, I would like to mention that the Bank for International Settlements (BIS) is in the process of establishing BIS Innovation Hub Centres in many parts of the world. Their primary purpose is to promote insight into financial technology that can strengthen the financial system. One such hub centre is being established in Stockholm, with the central banks of Sweden and Denmark, Sveriges Riksbank and Danmarks Nationalbank, the Central Bank of Iceland and Norges Bank as participating banks, in addition to the BIS. New technology provides new opportunities for innovation, but also presents new risks that must be addressed. Vulnerability to technology-enabled disruption is increasing – whether the disruption is the result of malicious attacks or other factors.

The framework would enhance consumer protection and confidence in the use credit transfer services. Focus on solving the last mile obstacles to enhance migration to e-payments To remain relevant, it is important for all stakeholders to step up their game to drive innovation and new use cases to accelerate the displacement of cash and cheques. PayNet, as the operator of shared payment infrastructure, will facilitate the pooling of resources to develop innovative use cases to meet the evolving needs of end-users. For this to happen, PayNet might need to establish an innovation lab and publish open APIs to leverage on the creativity, resourcefulness and innovativeness of the fintech community. Banks and non-bank players should focus on solving last mile obstacles by alleviating the ‘pain points’ faced by consumers and businesses. Subject to the observance of data protection laws, market players should mine customers’ data to develop innovative solutions and deliver superior customer experience. Customers can now look for digital solutions that enrich their quality of life. This may necessitate entities to forge strategic alliances to deliver innovative services leveraging on each other’s competitive advantages. Equally important, are efforts to enhance cyber security and promote greater public awareness of the security features and safety tips to mitigate fraud. Bank Negara Malaysia will work with the payment industry to take preemptive actions to protect the security of customer funds and financial market infrastructures. Conclusion In our quest to engage in the digital economy, migration to e-payments is a critical component.