otherwise. first, given the variety of accounts they have on offer, they are indispensable, even to innovative financial service providers. second, they too have a competitive edge when it comes to digitalisation. for example, they are able to cover the entire range of services and lines of business, thereby creating synergies for customers and the institution alike. people also still have immense trust in banks and savings banks when it comes to data security – at least that ’ s what the surveys say. they also continue to appreciate the personal contact with banks, particularly when dealing with more complex financing issues. in any case, i think it is very unwise to think about the future in black and white terms. banks are already working together with start - ups and, in some cases, are developing highly innovative concepts on their own. moreover, many fintech companies first need a convincing business model before they can really launch an offensive against banks. lastly, who knows what the sector ’ s next move will be. the recent competition posed by streaming services in the music industry shows how the tables can be turned, even years after the start of digitalisation. that ’ s why, at this juncture, i ’ m not going to venture a look into the crystal ball, which has become somewhat outdated in the meantime. banks and savings banks, however, should be careful not to underestimate developments. particularly in the field of computer technology, it is sometimes the case that even experts are wrong in their predictions. for example, in 1995 bill gates described the internet as just a “ passing fad ”. and in 1943 the then ceo of ibm made an even more unfortunate prediction, saying that he thought there was a world market for maybe five computers. in business, therefore, the old adage still stands : if you don ’ t jump on the bandwagon, you ’ ll soon be left behind. 3. virtues in the digital age it is obviously not the supervisors ’ job to offer you advice on the right strategy for dealing with digitalisation. the successful fate of a business model can be put down to entrepreneurial skills. ultimately, the markets decide. nevertheless, i would like to pass on two key messages that i consider particularly important given the digitalisation megatrend. the first relates to what i was just saying : “ sitting it out is not an option ”. it may seem like a virtue to concentrate on what you ’ re good at and to sit back quietly waiting to

. it allows for considerable public support to be provided for the transformation, including support to press ahead with the energy transition. for some of you, fiscal soundness might sound boring. especially if you are keen to benefit from attractive tax deduction programmes. but please bear in mind, that debt - financed tax deduction programmes have their limits. after russia's invasion of ukraine, germany accelerated its energy transition. there was no alternative because germany has no primary fossil fuel sources of its own. so germany had to do two things : 1. increase energy efficiency and 2. increase the supply of renewable energy in germany. there is good news in this regard : wind and solar energy are competitive today. costs have dropped more than 80 %. 2 germany is the most important country for patents in the field of clean and sustainable innovation in the european union. 3 public and private r & d spending in germany exceeds 3 % of gdp, which is among the highest r & d intensities in europe. 4 as a result, we are a global leader in hydrogen patenting. 5 this matters, because german industry requires hydrogen. however, getting from scientific innovation and patents to running a business requires entrepreneurship and money. we need private investors, because public money has its limits. one of the key factors that influences investors'decisions is uncertainty. many investors fear a global backlash against climate policies. at the same time, we are seeing the share prices of oil and gas companies increase. so, please allow me to finish my intervention today by reflecting on political uncertainties, particularly on the global backlash against climate policies. to us central bankers, and hopefully not only to us, the figures describing the impacts of climate change are clear. global warming comes with a significant price tag. in many countries, we are seeing inflation go up on the back of climate change. food prices are skyrocketing due to droughts, floods or other weather events. according to a study by the ecb and the potsdam institute for climate impact research ( pik ), global food inflation could increase up to 3. 2 % annually by 2035. 6 the network of central banks and supervisors for greening the financial system ( ngfs ), which i have the privilege to chair, is going to publish a study illustrating how climate change will affect monetary policy. this study shows that extreme weather events will have a strong impact, first on the supply side, then on the demand side and finally on the financial system. 2 / 3