, are being collected. while such accumulation of non - anonymized data substantially enlarges the potential of data usage, the relevant entities are required to pay extremely careful attention to data protection and privacy. if people were to worry about the practices of managing big data and feel uneasy about their own privacy, it would become difficult to make big data contribute to economic development and welfare. thus, i would like to ask all the relevant entities, who collect and utilize data, to pay due attention to ensuring data security. iii. big data and central banking big data also has substantial implications for central banking. all the operations and policy conduct of the central bank are closely linked with data collection and processing. every operation including the settlement of funds and securities, and the processing of treasury funds through daily operations of the central bank ’ s system, the core infrastructure of the economy, is made up of gigantic amounts of data processing. in carrying out macro policies such as monetary policy, it is an important precondition that policy entities including the central bank can collect and analyze various types of economic data quickly and efficiently, and timely grasp the developments of aggregate demand, general prices, and the impacts of policy actions on the economy and financial markets. indeed, many central banks, including the bank of japan, are collecting and aggregating large amounts of data such as price statistics, corporate surveys, and financial market data, by themselves. since central banks are processing as well as utilizing large amounts of data, central banks are required to continuously examine how to utilize and leverage new technologies for collecting, processing, and analyzing various types of data. iv. closing remarks i think that big data has great potential to vitalize various economic activities, innovate financial services, and increase economic welfare, as long as data security is firmly secured. in the well - known movie “ moneyball, ” open - minded and thorough analysis of data, free of prejudice and convention, leads to the finding of new and advanced strategies that drastically change traditional baseball tactics. also in volleyball, the current offense strategy with multiple options of attack including those from backguards, which is supported by precise data analysis, has been widely adopted in recent years, which i could not imagine when i was coaching high school students decades ago. as such, analysis and utilization of data has demonstrated its potential in various areas more than ever before. given rapid increases in the volume of data and significant improvements in its processing capacity, i also have great expectations for the possibilities

utilization of big data and ai may improve productivity in various ways, such as accurate analysis on demand, more efficient business processing, and enhancing added value. in emerging and developing countries with large populations, several e - commerce enterprises, backed by rapid popularization of smartphones, accumulate gigantic amounts of customer data, and the utilization of that data has facilitated the expansion of various businesses and economic activities in those countries. potential of big data on financial services big data may also extend the frontiers of financial services. firstly, financial services themselves can be more sophisticated through effective use of big data. by using customers ’ transaction data to grasp their needs and analyze risks, it becomes easier to provide customized financial services tailored to each user, and to flexibly adjust the contents of services if necessary. for example in the field of insurance, in order to overcome “ adverse selection ” and “ moral hazard, ” which have been regarded as inherent problems in the insurance industry, efforts are being made to finely adjust the insurance fees by using a new technology known as a “ smart contract, ” and collecting a wide range of data such as how customers drive, and how they manage their health. moreover, new authentication technologies such as biometrics authentication through big data analysis enable customers to use various financial services in a more secure manner. secondly, big data may facilitate the networking of financial services with broad industries. for example, safe and efficient payment instruments are extremely important for e - commerce and the sharing economy. on the other hand, data obtained through these businesses can be useful for providing and customizing financial services. consequently, new networks between financial services and various industries can be established, such as linking retail sales businesses with payments, loans, and insurance services. thirdly, big data may also enhance financial stability through facilitating refined risk management and the efficient allocation of risks. however, when a variety of entities which are different from traditional financial service providers enter financial services, central banks are required to closely monitor their impacts on financial stability and their structures. data security issues along with the enhanced utilization of big data, cyber security, data protection, and stakeholders ’ consent on the usage of big data, are becoming all the more important. since “ trust ” has an important meaning especially in finance, these issues are becoming critical factors for 3 / 5 bis central bankers'speeches maintaining the stability of payment settlement systems as well as financial systems. recently, enormous amounts of non - anonymized data such as, who bought what, when, and where