But as expected, there are also challenges that come with fintech expansion: cyber-attacks, phishing emails and other scams are reportedly on the rise, a trend that needs to be addressed before it becomes alarming. Banks must continue to stay ahead of fraudsters through constant building and rebuilding of defences, rigorous stress testing, and educating customers about cyber safety. The enhanced Cybersecurity Fortification Initiative, soon to be launched, should provide banks with a robust framework for managing the risks. 11. Growing reliance on data analytics raises questions about data ownership and privacy. As we have seen in some other jurisdictions, AI and machine learning also introduce the risk of discrimination, sometimes in hidden forms. Banks have to guard against this by ensuring ethical, fair and transparent treatment of customers, and by correcting model aberrations using human intuition. 12. We realise that banks are at different stages in their adoption of AI technologies. For this reason, our risk management approach as a regulator is based on high-level principles rather than on detailed prescriptions that might stifle innovation or be disproportionate to the risks involved. 13. Technology is not just about banks and their customers – it is also an important part of banks’ relationship with the HKMA. As we are a key part of the technology ecosystem, our aim is to add value by facilitating the industry’s technology adoption through a range of initiatives, such as the AML/CFT Regtech Forum and the Regtech Watch newsletter.

Ravi Menon: "Chongqing connectivity in digitalisation and sustainability" Keynote speech by Mr Ravi Menon, Managing Director of the Monetary Authority of Singapore, at the Singapore-China (Chongqing) Financial Summit, 23 November 2021. * * * Mayor Tang, Minister Teo, colleagues from ASEAN, ladies and gentlemen, good afternoon. Welcome to the 4th Singapore-China (Chongqing) Connectivity Initiative (CCI) Financial Summit. I thank the Chongqing Municipal People’s Government for hosting this Summit. Financial connectivity between Singapore and the Western Region has strengthened. Crossborder financing volumes have grown substantively over the years. Since 2015, there has been a total of 192 financing deals between the Western Region and Singapore, amounting to over $ 17 billion. This year, despite the pandemic, cross-border financing amounted to $ 3 billion. Globally, we are seeing the two big trends of digitalisation and sustainability. It is thus appropriate that Chongqing and Singapore have identified trade digitalisation and green finance as two of the focus areas under the CCI Finance Pillar. First, digitalising the CCI-International Land Sea Trade Corridor (CCI-ILSTC).The CCIILSTC, first conceptualised in 2018, has proven to be a viable alternative for traders looking to transport goods between Western China and Southeast Asia. Despite the pandemic, trade flows along the CCI-ILSTC increased by almost 30% in 2020. We should now aim to turn the CCI-ILSTC into a main thoroughfare for regional trade. But to do this, we must address some of the challenges inherent in its multi-modal nature. The rail-to-sea modality requires greater coordination than single modal transportation.