fact one that is connected with all the other challenges you are facing, is restoring public trust in the banking sector. trust is a tricky thing. the supervisor, the politicians and the banks are talking a lot about restoring trust, but it is ultimately not something you can gain yourself, it is given to you. however, there is a lot you can do to create the right conditions. like preventing negative publicity, where possible. like learning to read the public sentiment, which is not easy i admit. by making a contribution to addressing social challenges. for example by supporting the green transition. the way the financial sector supported the negotiations and pledged funding, did a lot to hammer out the national climate accord. as chief supervisor for the dutch banking sector i am very grateful for that. these are all steps that may contribute to restoring trust. why do i think strengthening trust in the banking sector is important? isn ’ t it all going well? customers are entrusting their savings to you, they continue to take out insurance policies. the banking sector in general is scoring fairly decently in reputation monitors. so what ’ s the problem? earlier in my speech i mentioned psd2, and how it is probably going to change the way customers interact with financial services providers. but these kind of innovations can only succeed if customers trust the new services. a recent survey we did suggests there ’ s some public skepticism about psd2. that ’ s understandable. one of the goals of psd2 is for customers to benefit from a myriad of new and useful services. but if they have concerns about fraud, or their data being used without permission, they might see it as a risk that ’ s just not worth taking. as a result of psd2, banks will lose their privileged access to customer data. new fintechs are entering the market, that are often ideally positioned to make full use of this data. fout! onbekende naam voor documenteigenschap. one of few competitive advantages that banks have, is they enjoy a stronger position of public trust than fintechs do. our survey revealed that if customers had the choice between an app offered by their bank, or a similar service from an unknown fintech startup, they ’ d stay loyal to the bank they ’ re familiar with. but no one knows where the tipping point lies. once it is crossed, psd2 could drive banks into the background. with customers obtaining services directly from third party

fout! onbekende naam voor documenteigenschap. “ changing gears : about cycling and the future of banking ” speech by frank elderson at dnb ’ s banking seminar amsterdam, 11 march 2019 at dnb ’ s banking seminar, frank elderson delivered a keynote speech, adressing three challenges for the dutch banking sector. within each challenge, frank elderson indicates what steps have been taken already, and where attention is still needed. fout! onbekende naam voor documenteigenschap. when i took up this job as chief supervisor for the dutch banking sector, summer last year, i realized again how much better shape the dutch banks are in, than the last time i was actively involved in prudential banking supervision. you see, i was leading the dnb team responsible for supervising abn amro back in 2006. i remember going to the zuidas by bike, parking it right in front of that huge entrance of the abn amro building - which wasn ’ t allowed by the way. that solitary black bicycle, against the sheer backdrop of one of the tallest sky - scrapers of amsterdam at that time, in a way that bicycle formed an early example of transparent supervision : since everybody knew it was my bike, every time they saw it they knew the supervisor was in the building. of course, it ’ s a story with a tragic undertone. the years 2006 and 2007 have a fateful ring to them. we were witnessing the tearing apart of the largest bank in the netherlands. less than a year after the consortium took over abn amro, on a sunny day people were leaving the lehman head offices carrying cardboard boxes. the rest is history. how totally different to the picture we observe today! today i see a banking sector that has weathered the storm, and has emerged stronger. smaller perhaps, but more resilient, more focused and better capitalized. a banking sector with one of the lowest npl ratios on average in the euro area. and that leaves the dutch banking sector in a very good position to seize new opportunities. opportunities abound, i don ’ t have to tell you that. fintech, together with new regulation like psd2, will drive competition and innovation, and it may trigger the biggest change in how customers interact with their banks since the introduction of the automated teller machine. andrea enria just gave some very interesting and lucid thoughts and observations on how