##6, it is timely that we reflect upon the factors that will sustain and further propel efforts to realise our vision for digital payments. with this in mind, let me share five key building blocks that we believe are instrumental in fostering a thriving digital payments ecosystem. 1 / 6 bis - central bankers'speeches first is finding the optimal balance between fostering greater inclusivity in digital payments and enabling a sustainable ecosystem for digital payment to thrive, these services should be accessible to almost every layer of society, including the underserved. at the same time, product offerings need to be commercially viable, so that players can upkeep their systems and continue to innovate. striking an optimal balance between these two priorities is crucial to our collective success. on this front, i understand that paynet and the industry are already making good progress on the future commercial model of the duitnow qr service. the industry's commitment to transition to a tiered pricing mechanism for the duitnow qr service is a step in the right direction and ensures an inclusive and sustainable duitnow qr ecosystem. to complement the rollout of the new pricing model, paynet and the industry must have in place a clear, well - thought - through, and coordinated communication strategy to keep the public well - informed about the objectives of this undertaking and the benefits we aim to achieve. this strategy will ensure that any concerns are appropriately addressed while ensuring transparency and trust in industry efforts. at the same time, the industry should continue to work on introducing more costeffective innovative solutions that could empower the underserved segment. the recent launch of paynet checkout, for instance, is a commendable step forward, equipping msmes with a one - stop platform for seamless and simpler e - commerce processes. by empowering small businesses to have better control of their finances, we can drive meaningful change and help uplift entire communities. the second building block is the development of an open finance ecosystem that is fit for the future while the sharing of customer information already happens between industry players, the process is often inefficient and at times may not be fully secure. for example, we continue to see the sharing of information such as bank statements and a photocopy of identity cards taking place between players through emails and at times even via messaging services such as whatsapp. additionally, there is a proliferation of apps and services that allow customer data to be ported out

mutual dependence – where everyone is dependent on everyone else – and the rapid speed of transactions – where there is no time to resolve problems that may arise – all these factors together make the system more prone to failure. in existing and new regulations, including the forthcoming basel iii framework, regulators have focused on the problem of institutions being too big to fail. this is because of the pressure that having to rescue financial institutions has put on public finances. but, actually, we should be more worried about banks being too complex to fail. if institutions are too complex, it ’ s even more difficult and therefore perhaps more expensive to resolve them. the need for change is obvious. and responsibility for this change lies in your hands, too! i see three areas where you can contribute to achieving this change. bis central bankers ’ speeches first of all, banks ’ business models must not be unduly complex. in the past, we have seen financial institutions offering lending services, participating in trading activities, setting up joint ventures and combining their activities with insurance companies or businesses outside the financial sector. the products they offered ranged from traditional loans and lend - to - invest structures to all kinds of complex off - balance sheet derivatives. their activities were spread all over the world, while the risks and rules varied from one country to another. the big picture was therefore often lost. at the same time, the benefits of diversifying their activities in these different ways and at these different locations have proved disappointing. experience has shown that combining banking and insurance activities is not as effective in offsetting cash flows and exposures as was once thought. risks run on one side of the world are difficult to monitor from the other side of the world. and, this time around, the crisis has not been confined to one country or region, but has been felt all over the globe. a clear and simple business strategy and a streamlined business model will help reduce complexity. banks need to focus once again on their traditional roles of maturity transformation and lending to the real economy. this ties in closely with the question of how best to structure the banking sector. this is a relevant issue when we ’ re discussing the activities a bank should engage in. committees all around the world have examined this issue, as the volcker rule in the us, the vickers report in the uk and the european commission ’ s liikanen report show. all of them have one thing in common. they argue for a simpler banking sector focusing on traditional banking activities. these reports have resulted