Today, we find ourselves at the centre of a digital revolution, perhaps the most significant breakthrough in financial services of our time. Change is upon us. The tsunami of digital technology will forever change our banking landscape. Yet, like Newton’s observation centuries ago, the path of embracing change is fraught with resistance – or, as Newton elegantly called it, inertia. In the words of the renowned scientist, this power of resisting is one in which every object endeavours to “preserve its present state”. At its core is a realisation that, individually and institutionally, we are not inherently calibrated for change. In fact, we instinctively resist change, whether intentionally or passively. Change doesn’t feel natural, even when it is positive or unavoidable. While the expectation of disruption is not new to us, the greater issue of interest to banking leaders today relates to our readiness in navigating changes. We must learn to break down inertia within our institutions. I will elaborate. Let me contextualise this subject from two sources of corporate inertia, which I think are critical to the future of the banking system: i. Human capital investment; and ii. Forward looking leadership. Human capital investment requires a new model: Learning that adapts and is continuous The approach towards talent development and career learning is rapidly shifting. Traditional learning systems are no longer sufficient. Data from a recent study revealed that the “ability to learn and progress” is the principal driver of a company’s employment brand among Millennials today.

Professional and transformational leadership: Leading beyond your institution Human capital development is of course incomplete without the presence of leadership. Leadership is a force like no other. Leadership drives organisations to new levels of performance and achievement together. But leadership can also be a source of inertia. As innovation continues to draw deeper lines of interconnectivity, successful future leaders are no longer those who only steer their institution, but those who can influence and collaborate with others to drive the growth of the industry towards brighter prospects. The future of banking lies very much in the collective vision of its leaders. Much of our developments in the past have been regulatory-driven. This approach is not sustainable. Drastic change is required. Collectively, industry leaders need to be more involved in playing a pivotal role to shape the future banking ecosystem. While it is natural to strive for individual or institutional success, the industry must break away from the tendency of working in isolation, or worse, waiting for others to lead. Instead, collective responsibility is needed in areas 2/3  BIS central bankers' speeches  where common solutions are required for the betterment of the banking sector. Bank Negara Malaysia has already identified several priority areas, particularly in the fintech space, which will benefit from greater joint participation by the industry. While this is a start, it should not limit the possibility of industry leaders coming together to address other areas of shared interest. I certainly hope to see this becoming a norm in the near future.