Please take a look at the prototypes, study them, build upon them. What’s next? We are now preparing to extend Project Ubin beyond Singapore. We are pleased to announce a collaboration on cross-border payments with the Bank of Canada using blockchain technology. Deepening Financial Inclusion: ASEAN Financial Innovation Network Finally, we want to use FinTech to deepen financial inclusion across ASEAN. MAS and the World Bank’s International Finance Corporation have teamed up to establish the ASEAN Financial Innovation Network (or “AFIN”). The goal of AFIN is to help banks and FinTechs in ASEAN collaborate, so as to broaden and deepen access to digital financial services across ASEAN. AFIN is working on a cloud-based industry platform which will do three things: It will allow banks to search for and connect to innovative FinTech offerings. It will give FinTech firms an opportunity to scale up their business across borders. It will provide an industry sandbox to test out cross-border solutions. Regional regulators will be invited as observers of the sandbox. Most of all, AFIN will provide a powerful platform to extend financial services to the millions of under-banked people in ASEAN. Conclusion Singapore is on the FinTech journey because we want to make pervasive a culture of innovation in our financial sector. We must have a restlessness to make things better, a spirit of enterprise to try new ways, a willingness to take manageable risks, and the resilience to bounce back from failure to try again … and again. But FinTech must safeguard trust and confidence.

I suspect, increasingly, we will have to take a more risk-specific approach and an activitybased approach with respect to FinTech. This means: Setting thresholds for when regulation kicks in; calibrating regulatory requirements to specific risks; and applying these requirements to activities rather than entities. A good example of our attempt to do this is the new Payment Services Bill, which we will publish for public consultation next week. Our aim is to right-size the regulations, to fit the various new developments that are taking place in electronic payments. Licensees will be regulated according to the activities they conduct, because different activities pose different risks. Finally, there are areas – be it new technologies or new business models – where regulators will never know enough. This is where the regulatory sandbox comes in – to facilitate experimentation in a contained environment. 4/9  BIS central bankers' speeches  Cyber Security Finally, cyber security. As we go more digital and online, cyber risks will mount. And if these risks are not managed well, public trust and confidence in technology will suffer. To fully harness the benefits of digital technology, we must build robust cyber defences and have effective remediation plans when things go wrong. First, cyber surveillance and information sharing. We are pleased to see the official launch in Singapore of the Asia-Pacific Regional Information & Analysis Centre by FS-ISAC. FS-ISAC, or the Financial Services Information Sharing and Analysis Centre, is a global intelligence gathering and sharing initiative for the financial sector, with over 7000 members worldwide.