. 1 we are also now seeing the roll - out by several players of mobile - phone - based point - of - sale card acceptance facilities, where an intermediary provides a merchant some form of attachment to a smartphone or tablet, turning that phone or tablet into a card - acceptance device. this has significant potential to spread further the appeal of electronic payments to smaller businesses. at the same time, a clear trend towards online commerce and online banking is leading to a rapid increase in remote – as opposed to point - of - sale – payments. this is likely to be an area of increased competition, but is also the focus of increased efforts to improve the security of payments. overlaid on all this is a proliferation of new models for using existing payment methods and indeed some proposals to change fundamentally the way we think about payments. ossolinski c, t lam and d emery ( 2014 ), ‘ the changing way we pay : trends in consumer payments ’, rba research discussion paper, no 2014 – 05. bis central bankers ’ speeches the one area where there has been less progress than we might have expected in 2012 is “ mobile wallets ” for point - of - sale payments, i. e. where a consumer ’ s card or account information is incorporated into a phone application and the phone becomes the consumer ’ s payment device. of course, this may well change quickly at some point. so innovation is proceeding. it would seem premature to expect that we have seen the apogee of technological development in the payments space. more likely it will continue, in ways that are impossible to predict, but are likely to be “ disruptive ” – the adjective of choice these days. but there is a key caveat here. innovation in the payments system is not just a matter of technology – as remarkable as the extent of technological advance has been. we have had rapid innovation in areas where individual entities can innovate on their own, or where a central scheme has the capacity to push innovation out to its members and / or users. these innovations can provide significant benefits, but by themselves are not enough, in the bank ’ s view, to deliver the policy goals set for the payments system board in its mandate. the setting within which innovation occurs also matters. the innovation review recognised that, in networks, where the ability of one institution to deliver value to its customer is dependent upon how well it can connect with all the other institutions and their customers, the full flowering of innovation depends to no

philip r lane : the " culture report " and the macro financial outlook introductory statement by mr philip r lane, governor of the central bank of ireland, before the joint oireachtas ( national parliament ) committee on finance, public expenditure and reform, and taoiseach ( head of parliament ), dublin, 4 october 2018. * * * chairman, committee members, i welcome the opportunity to meet with you this morning for our regular engagement. i am joined today by derville rowland, director general for financial conduct, and ed sibley, deputy governor for prudential regulation. i divide my introductory statement into two parts. in part a, i provide an update on the tracker mortgage examination and the outcome of our recent report into the behaviour and culture of irish retail banks ( the ‘ culture report ’ ). in part b, i turn to a broad overview of the macrofinancial outlook and outline the main issues and risks we see on the horizon, including nonperforming loans and brexit. the culture report the culture report builds on our conviction that consumers are best protected if firms not only comply with our regulatory requirements but also invest in organisational cultures that reward consumer - focused behaviour and penalise harmful behaviour that seeks to skirt around the duty to treat customers fairly. conduct and tracker mortgage examination the last decade has uncovered financial misconduct scandals in many countries. at home, the mistreatment by banks of so many tracker mortgage customers has shown that financial misconduct is a substantial risk to households and firms that rely on the domestic system for the provision of financial services. the central bank launched the tracker mortgage examination – the largest, most complex and significant customer protection review we have undertaken to date – to ensure that lenders identified those customers harmed by this mistreatment and paid appropriate redress and compensation. as of august 31st, lenders have identified circa 38, 400 affected customers ( including cases resolved pre - examination following central bank intervention ), and paid €580 million in redress and compensation. the redress and compensation phases of the examination are now significantly advanced : 93 percent of affected customer accounts already identified and verified had received offers of redress and compensation by august 31st. four of the five main lenders are close to completing their redress and compensation phases, and we are exerting significant pressure on the remaining lender to finish its process. our bank - by - bank supervisory review of conduct of the examination is also significantly advanced, but will not conclude until lenders