competition is necessary to create incentives for fintechs to invest in innovations as well as pushing traditional entities to stay on their toes. at the same time, collaboration is essential for innovations to be absorbed into the financial systems. traditional players with their robust balance sheets, capital base and risk management practices can provide the strength and stability while fintechs with their agility and innovative capabilities can deliver on customer experience, drive down costs and expand access. what should be the areas of collaboration and what should be the fields of competition will eventually be determined by market forces. but this is also an area that regulators need to focus on creating a regulatory framework that continues to spur innovation. regulatory perspective of fintech innovation the reserve bank of india is deeply engaged in this process of technological transformation of the financial system. it's role has largely been to create an enabling environment for innovation to thrive by creating mechanisms such as regulatory sandbox, hackathons, creation of fintech department within the rbi and setting up of our own reserve bank innovation hub ( rbih ). recently, we announced the development of a public tech platform for frictionless credit. the platform is being developed by reserve bank innovation hub ( rbih ), to enable delivery of frictionless credit by facilitating seamless flow of required digital information to lenders from multiple sources of information. the platform will serve as a public good and exemplifies rbi's approach to fostering innovation. this is the developmental role that rbi plays. 2 / 4 bis - central bankers'speeches at the same time, rbi also plays the role of regulating the evolving financial system to maintain financial stability. rapid technology changes can outpace regulatory frameworks, and raise issues about market integrity, consumer protection, data privacy, and fair market practices. the agility of new age fintech firms can challenge traditional regulatory models, making it difficult to ensure compliance at all times and maintain stability. the reliance on digital platforms also amplifies vulnerabilities to cyber threats and data breaches. as fintechs amass sensitive financial data, ensuring robust cybersecurity measures and maintaining data privacy becomes paramount to safeguarding consumer information and financial systems. the rush to roll out new products and services could potentially undermine market integrity and compromise customer protection. therefore, while fintech innovation holds immense promise, a balanced evolution, where innovation is responsible and inclusive, is essential for the sustained positive impact of fintechs on financial services. the regulations for p2p in 2017,

. 0 2. 0 1. 5 1. 5 1. 0 1. 0 0. 5 0. 5 - 1 0. 0 0. 0 note. inflation expectations refer to mean value for money market participants. sources : statistics sweden and tns sifo prospera 17 figure 8. serious situation in spring 2015 exchange rates unit labour costs 115 140 germany usa sweden eurgbp eurusd eursek jan - 14 jul - 14 jan - 15 jul - 15 jan - 16 jul - 16 note. the ecb communicated its decision to purchase securities on 22 january 2015 and initiated purchases on 9 march 2015. exchange rates, index, 1 january 2014 = 100. unit labour costs in manufacturing industry, euro, index, 2011 = 100. the blue square indicates the effect of the krona appreciating by 30 per cent against the euro. sources : the ecb, macrobond and conference board figure 9. rising trend in housing prices and debts for 20 years despite varying repo rate index 2000 q1 = 100 note. housing prices have been converted from nominal to real terms by using the cpif. sources : statistics sweden and the riksbank 18 figure 10. much slower increase in housing prices in germany despite roughly the same development in policy rates index, 2005 q1 = 100 and per cent respectively housing prices short - term interest rates germany sweden germany sweden - 1 - 1 sources : the bis and the oecd figure 11. long - term inflation expectations close to target once again per cent note. inflation expectations according to money market participants. source : tns sifo prospera 19 figure 12. monetary policy determines long - term inflation – inflation is a “ monetary phenomenon ” annual percentage change 1910s 1970s 1980s inflation 1950s 1940s 1990s 1960s 2010s 1900s 2000s 1930s - 2 1920s - 4 - 6 - 2 growth in money supply note. money supply refers to m3 and inflation refers to cpi. the squares show averages for different decades. sources : statistics sweden and the riksbank 20