##b will accelerate the development of new models and will conduct theoretical and empirical analyses to monitor the implications of climate change and related policies for the economy, the financial system and the transmission of monetary policy through financial markets and the banking system to households and firms. second, the governing council will adapt the design of its monetary policy operational framework in relation to disclosures, risk assessment, corporate sector asset purchases and the collateral framework. this reflects the principle that when adjusting its monetary policy instruments, the governing council will – provided that two configurations of the instrument set are equally conducive and not prejudicial to price stability – choose the configuration that best supports the general economic policies of the eu related to growth, employment and social inclusion, and that protects financial stability and helps to mitigate the impact of climate change, with a view to contributing to the objectives of the union. the action plan will be implemented in line with progress on the eu policies and initiatives in the field of environmental sustainability disclosure and reporting. chart 3 ecb climate change action plan sources : ecb. to support the economic analysis of climate change, there is a clear need to develop new statistical indicators. first, clarity is required in relation to terminology, classifications and the structure of statistical indicators. the eu has acknowledged the importance of harmonised definitions and standards and has undertaken a vast programme of standardisation in the area of sustainable finance, including – among others – legislative measures such as the eu taxonomy, the eu green bond standard and the corporate sustainability reporting directive. there is also movement on the international front : the international financial reporting standards ( ifrs ) foundation launched a new standard - setting board — the international sustainability standards board ( issb ) — aiming to deliver a global baseline standard for sustainability - related disclosures that provide investors and other capital market participants with information about sustainability - related risks and opportunities. all these developments will enable official statisticians to improve the availability and comparability of climaterelated data. only harmonised definitions and standards make it possible to produce diverse statistical indicators and yet be assured that the data source confirms to a common framework. this has an obvious advantage in that it will allow the combination of variables from different sources. notwithstanding the need for common classifications, data sources also need to be mutually coherent. currently - available sources, both from private and public sources, do not yet live up to this requirement. this is a significant concern for policymakers. data quality is also a concern due to the risk of “ green

and data analytics in helping us measure and manage the risks – both old and new – to financial stability. 2. outlook for the future : digitalization fundamental shift in consumer expectations let us start with consumer expectations. how are they shaping financial services? 1 / 5 bis central bankers'speeches customers, especially, expect that services are available when they are needed. they are used to 24 / 7 world. the immediacy of services is the new normal. as to the user experience provided by a bank, consumers no longer necessarily use other banks as a benchmark. user experiences provided by tech companies in other services also shape expectations in banking services. these shifts pose a challenge to traditional banks ’ infrastructure and organizational setup, perhaps even their mindset. in contrast, the opportunities opened up by digitalization has spawned fintech start - ups that strive to be customer oriented, providing immediacy of services, and being available 24 / 7 by design. many banks try to meet this challenge, not without difficulty. fragmentation in payment services payments are an area where the new products and players are already quite visible. if a decade ago we had the choice of whether to pay with credit card or cash, now we also have mobile apps for making payments, and in some rare cases even virtual currencies. similarly for a merchant, the choice, what payment methods to accept has become more complex. at least in the short run this fragmentation of payment choices will likely continue. another phenomenon is that payment becomes embedded into other services. this emphasizes the need for sufficient financial literacy as it may become more difficult for customers to keep track of their spending. this is coupled with the fact that instant consumer credit decisions can be incorporated into these services. regulators need to stay alert at least from two perspectives : first, to ensure sufficient consumer protection, and second, to monitor the development of consumer credit aggregates from the viewpoint of financial stability. it is worth noting that most of the new applications are still based on the existing infrastructure. this may impose restrictions on what can be achieved in terms of innovation. it also stresses the importance of thinking about the current systems in the background. new business models fintechs typically challenge the most profitable parts of banking business by offering targeted services and using lean organizations. competition may hence lead to lower margins in banks. in the short run, this may put a strain on profits in some incumbent institutions, given their heavier organizational structures. in the longer run, the entry of fintechs could induce a