. case ( 3 ) will thus lead to a stable rise in sales prices, whereas the increase in sales prices will be limited in cases ( 1 ) and ( 2 ). in the transition period toward the new price and wage environment, there will be divergent responses among firms. some firms will attempt to engage in higher value - added businesses and raise productivity, thereby expanding their market shares. others may fail to adopt such strategies and have to restructure their businesses, merge with other firms, or close. thus, the above three cases are likely to coexist for some time. with regard to the overall economic perspective, the rate of wage increases will be roughly equivalent to the sum of ( 1 ) the rate of the aggregate price increases and ( 2 ) the rate of labor productivity growth. it is expected that the rate of productivity growth will improve toward around 1 percent or somewhat higher over the projection period. accordingly, the rate of wage increases will exceed the rate of price increases ( excluding the temporary effects of the consumption tax hikes ) by this magnitude. i consider that the 2 percent inflation is likely to be reached toward the end of the projection period at a moderate pace that does not impose excessive burdens on firms and households. i consider that such a gradual path is likely to lead to a society where the 2 percent inflation is maintained in a stable manner and is desirable for japan ’ s economy. this brings me to the end of my speech. thank you very much indeed for your kind attention. bis central bankers ’ speeches bis central bankers ’ speeches bis central bankers ’ speeches bis central bankers ’ speeches bis central bankers ’ speeches bis central bankers ’ speeches bis central bankers ’ speeches bis central bankers ’ speeches bis central bankers ’ speeches bis central bankers ’ speeches bis central bankers ’ speeches bis central bankers ’ speeches bis central bankers ’ speeches

competition is necessary to create incentives for fintechs to invest in innovations as well as pushing traditional entities to stay on their toes. at the same time, collaboration is essential for innovations to be absorbed into the financial systems. traditional players with their robust balance sheets, capital base and risk management practices can provide the strength and stability while fintechs with their agility and innovative capabilities can deliver on customer experience, drive down costs and expand access. what should be the areas of collaboration and what should be the fields of competition will eventually be determined by market forces. but this is also an area that regulators need to focus on creating a regulatory framework that continues to spur innovation. regulatory perspective of fintech innovation the reserve bank of india is deeply engaged in this process of technological transformation of the financial system. it's role has largely been to create an enabling environment for innovation to thrive by creating mechanisms such as regulatory sandbox, hackathons, creation of fintech department within the rbi and setting up of our own reserve bank innovation hub ( rbih ). recently, we announced the development of a public tech platform for frictionless credit. the platform is being developed by reserve bank innovation hub ( rbih ), to enable delivery of frictionless credit by facilitating seamless flow of required digital information to lenders from multiple sources of information. the platform will serve as a public good and exemplifies rbi's approach to fostering innovation. this is the developmental role that rbi plays. 2 / 4 bis - central bankers'speeches at the same time, rbi also plays the role of regulating the evolving financial system to maintain financial stability. rapid technology changes can outpace regulatory frameworks, and raise issues about market integrity, consumer protection, data privacy, and fair market practices. the agility of new age fintech firms can challenge traditional regulatory models, making it difficult to ensure compliance at all times and maintain stability. the reliance on digital platforms also amplifies vulnerabilities to cyber threats and data breaches. as fintechs amass sensitive financial data, ensuring robust cybersecurity measures and maintaining data privacy becomes paramount to safeguarding consumer information and financial systems. the rush to roll out new products and services could potentially undermine market integrity and compromise customer protection. therefore, while fintech innovation holds immense promise, a balanced evolution, where innovation is responsible and inclusive, is essential for the sustained positive impact of fintechs on financial services. the regulations for p2p in 2017,