automatised processes, solutions for complex financial issues, service tailored to customers ’ individual needs. a fundamental challenge that banks now face is that in some business fields, we may expect a sudden and rapid change of the game that is being played. one rather obvious case in point is that of payment services. service providers such as paypal or apple have implemented payment systems geared to consumers in a digital environment. once customers become used to a new way of paying, competitors offering similar products will certainly have difficulties trying to convince customers to switch providers. the pioneer may have a decisive advantage. now, in evolutionary terms, the question is whether banks can adapt quickly enough. banks have used it for decades, but these fast - moving times present wholly new possibilities for its use : p2p lending becomes feasible, internet and mobile applications are sprouting up and bis central bankers ’ speeches internet giants such as google or facebook are cultivating “ big data ” methods. these enterprises have grown up with – at times – entirely new perceptions of business, work and life. and they have the appropriate staff. that may be crucial. it is one thing to build new ideas, but quite another to incorporate them into the company dna. traditional banks, on the other hand, typically do not have a digital dna. theirs is an analogue world in which they have refined their knowledge about banking over decades and built up a customer relationship based on trust. think of areas like investment advice and corporate finance as well as banks ’ own business of generating synergies between business strands. the question now is : what part of their knowledge is still valuable and what part do banks need to reframe? however, we cannot predict how the financial sector will look in ten years ’ time. there are just too many “ unknown unknowns ”. still, there is a recurring fallacy that reduces evolution to a narrow one - way street. if there are new market entrants whose businesses are welladjusted to the digital environment, banks should be inclined to imitate their behaviour. but – to be clear – there is no one - size - fits - all strategy for digital banking. as in other industries, there will always be demand for more differentiated strategies, for example individual and personalised services as opposed to algorithm - based advice. also, we should not be surprised to see the focus return to a key component of the banking business : establishing safety and trust. furthermore, the digital age does not simply redistribu

a fair and effective manner. at the same time, a resolution is not a discrete event. the boundaries between default management and recovery and resolution are blurred, so it is important to align responsibilities and control measures throughout the potential lifecycle of eu ccps. the resolution of a ccp relies, to a large extent, on the recovery process. under the legislative proposal for a regulation on ccp recovery and resolution, authorities will be required to enforce ccps ’ contractual obligations before using any resolution tools, subject to limited exemptions. another aspect to keep in mind is that systemic risk for the single market may arise not only from eu ccps, but also from non - eu ccps with substantial activities in the eu. this aspect will become increasingly important after the united kingdom ’ s departure from the eu. against this background, current efforts to strengthen the eu arrangements for third country ccps are very important. in particular, if a third country ccp is systemically important for the eu, it is not enough to focus on regulatory equivalence alone. while deference to home country rules and supervisors should be used to the extent possible, eu authorities also need to have tools for direct liaison with a third country ccp to identify, clarify and address issues that may pose specific concerns from an eu financial stability perspective. this is fully in line with the set up in other major jurisdictions. similarly, as regards ccp resolution, the development of home country arrangements in line with international standards must be complemented with the involvement of relevant eu authorities in resolution planning in line with international standards, to ensure that their systemic risk concerns are fully taken into account. to sum up, ccps are systemically important across border and across the eu. any recovery and resolution planning for individual ccps therefore requires an eu wide systemic risk 3 / 4 bis central bankers'speeches assessment and a strong co - ordination at global level. at eu level, this could involve, for instance, aggregated data collection, joint stress - testing and crisis simulation exercises, and the closer coordination of related supervisory assessments and recovery and resolution planning. and given the financial stability, macroprudential and liquidity issues a ccp resolution raises, central banks must be involved in all aspects of this work. thank you. i would like to thank corinna freund for her contributions to this speech. i remain solely responsible for the opinions contained herein. 2 at all times, ccps are required to hold prefunded, high quality collateral