, complex, extensive and constantly changing markets. responding to such challenges requires large organisations, able to capitalise on and mobilise quality resources. there are already empirical studies that confirm this positive link between company size and management quality. with a productive fabric like ours, largely made up of family - run businesses transitioning to the 3rd generation, the increase in the size of the organisations is closely linked to the business view of the families holding the equity. this leads the way to the third vector which i would like to draw your attention to : the relationship between ownership and management. empirical research has also found evidence that firms where there is share capital from outside the founding family are associated with best management practices. data also suggest that the mere separation of ownership and management is beneficial : as a general rule, the quality of the management is higher when it is entrusted to people outside the family that owns the firm. professionalisation of management is therefore a necessary condition to ensure the survival and long - term sustainability of family businesses and thus preserve their share capital. 3 / 5 bis central bankers'speeches in addition, the separation of ownership and management makes it possible to strike the right balance between the legitimate interests of the different stakeholders in the firm, thereby also contributing to its sustainability. meaning that, in a context where family businesses are predominant and where a large number is transitioning to the 3rd generation, or is already controlled by the 3rd generation, serious consideration needs to be given to the separation of entrepreneurial, ownership and managerial functions. specifically with regard to firms in the stage of generational transition, it is important to ensure that the ownership function is not only distinct from the management function but also exercised through decision - making mechanisms established in the firm ’ s articles, with a view to the sustainability of the organisation and the empowerment of the management. firms should prevent the decision - making mechanisms coming to a standstill owing to lack of interest or differences between heirs, rendering management powerless and calling into question the continuity of viable firms. in addition, public policy should favour the segregation of these functions so as to ensure that there is room for management professionalisation and thus improve the quality of management. in fact, public policy can encourage management professionalisation in family - run firms in different ways : first, by re - analysing the tax treatment of profit distribution to encourage differentiation between ownership and management, and to foster a suitable balance between profit distribution and reinvestment ; second, making the requirement for firms to present audited accounts

bankers'speeches but advances in biometrics are now making identity human again. many banks are already letting us use our face as our new banking password. here in singapore, ocbc bank is already doing this. next, imagine a world where payments are invisible. our shopping experience will be transformed. cameras and sensors identify us and the items that we place in and out of our shopping bag. and when we are done, we just walk out of the store! no more checkouts, no more lines, no more fussing with cash and credit cards. fantasy? just visit amazon go – it is already happening. imagine a world where insurance is intuitive. how many of us truly understand our insurance policies … or are fully confident they will pay out when we need them? imagine a world where the payout is automatically triggered by events and is instantaneous. no more lengthy claims forms, no more waiting time, no more opaque processes. science fiction? not quite. metlife ’ s lumenlab here in singapore is already making this a reality for gestational diabetes insurance. they are testing this out in mas ’ regulatory sandbox. imagine a world where financial advice is integrated. imagine our own personal financial dashboard on our mobile devices. giving us a complete view of our finances - pulling in data from banks we have deposits with, insurance companies we have policies with, and broker - dealers we have investments with …. …. not to mention, our pension or social security funds, tax liabilities, and mortgages … all in one place : a personal balance sheet – in real - time! and where financial advice is customised for us, based on an integrated view of our unique situations, at important milestones in our life …. … buying our first home, planning our children ’ s education, looking for investment opportunity to grow our retirement nest. many fintech firms are already developing apps and solutions to do this. this is the financial sector we want to create … customised for our needs, invisible to our eyes, and an absolute delight. and i ’ m very happy that singapore ’ s three local banks understand this. that ’ s why uob bank says it is right by you! ocbc bank says simply spot on! dbs bank says live more, bank less! innovation and technology are key to realising this future. but they are not enough. we need a fintech ecosystem to make this happen. 2 / 9 bis central bankers'speeches we need