and real sector. in thailand, we already have chip card and otp token such as the rabbit card and smartpurse, but what we really wish to see in the very near future is something more standardized and widely use like uk oyster and hong kong octopus. above all, incentive enhancement for people to use such new banking products, services and systems is the most essential driver to extend the business advancement and that security is the key challenging solution. 4. conclusion today ’ s it innovations have influenced our ways of living in many fields including banking industry and we all benefit from the new technologies ; however, lessons learnt from past crises have taught and reminded all of us not to ignore what adverse effects might be bis central bankers ’ speeches afterward. as a consequence, maintaining the right balance between banking innovation optimization and risk mitigation is the key in reciprocating the sustainability of growth. we should be more aware and prepared of any challenging it innovations in order to prevent and mitigate such previous disasters we did encounter, and be more proactive in making policies and designing new models. ladies and gentlemen, i do believe that the effective collaboration between supervisors and financial institutions is necessary to encourage sustainable growth of thai banking system against evolving threats. with that, this summit is another move for financial institutions and related organizations to share information and ideas ; hence, i wish you all a productive and fruitful discussion today. thank you. bis central bankers ’ speeches

schemes, bank business models and it platform in the world of highly competitive markets, in particular the banking sector, players have continuously tried to create new banking products to serve the needs of consumers and to move forward to penetrate market shares. as a result, sophisticated banking products along with adaptive bank business models have emerged. unfortunately, once regulators respond to the changes steps after, financial crisis comes. at the wake after 2008 global financial crisis, regulators actively strengthened regulatory frameworks by reforming agenda such as strengthen market infrastructure, effective supervision, resolution and addressing systemic important institutions. from the banks ’ point of view, the implementation of the new stronger regulations at the time of post - crisis has undoubtedly caused burdens to implementation. from the centre for the bis central bankers ’ speeches study of financial innovation ( csfi ) survey, it indicated that, “ regulation ” is the greatest threat to the banking industry ( from the survey, it climbed up from no. 6 in 2012 to no. 1 this year ). as banks have encountered the higher costs to run businesses, some may seek for less regulated sectors and some seek for changes in their business models to deal with such a situation. it might be implied here that regulation is the key influence to changes. therefore, it illustrates the need to find the right balance. as a consequence, regulators have to respond to those changes, updating and revising their regulatory frameworks to be more advance to keep up with the business models ; hence, the regulatory schemes run consistently with the shifts of bank business models. 3. the main drivers i. current innovation and growth of banking sector what is the main driver? i would like to pinpoint here that current innovation and growth of banking sector is one of the main drivers. even though many countries including thailand have been affected by financial crises and regulatory reforms, we are currently in the stage of revival with high potential growth among asean countries. according to the idc financial insights ’ observation on key structural shifts, trends of financial institution sector are : expansion of banking industry, particularly, in south asia and southeast asia due to an escalation of financial inclusion and new - entry of financial players ; technology refresh to serve with more sophisticated financial products and services ; and regional integration ( aec ) and the growth of asian insurance business. these are paths to higher competition among banks, in which, it innovation is a key to distinguish each brand. undoubtedly, banks and related parties invest more in it projects to advance their services responding to digital era