different financial institutions are regulated proportionately according to the size, scope and complexity of regulated financial institutions and / or activities. the evolution of the financial sector and emergence of new risks i would also like to turn to a very topical issue these days on the increasing use of technology in the financial sector. the financial sector has evolved over time and continues to evolve. the adoption and use of technology in the provision of financial services has been at the centre of innovation in the financial sector and is changing the way financial service providers operate and deliver products and services to their consumers. the accelerating pace of technological change has real implications not only for the regulated sector but also for policy makers and regulators. the evolution of the financial sector requires that our regulatory and supervisory frameworks also evolve to ensure adequate and effective regulation of the sector. i am aware of the work that has been conducted by the basel committee to provide insight into the fast - growing adoption of financial technology ( fintech ) specifically by banks. we appreciate the contributions made by the basel committee and others in the official sector to get a better handle of developments in this area. fintech has helped to reduce costs, manage risks better, create new business opportunities, improve people ’ s lives and has even assisted authorities to achieve public policy objectives such as financial inclusion and competition in the financial services sector. like all positive developments, fintech has also brought with it new risks and new challenges for supervisors and regulators. while financial innovation fosters competition in the provision of financial services, regulations must apply equally to all types of market players, banks, non - banks and electronic platforms offering services similar to those offered by financial institutions. this will ensure that we avoid pushing the market towards a particular structure ( regulatory arbitrage ). the same innovative technologies that are driving fintech are now also being used by financial institutions to ensure that they implement the latest regulatory changes, monitor compliance and report correctly to the various supervisory bodies, through regulatory technology ( regtech ). regtech has been necessitated by increasing levels of regulation and a greater focus on data and reporting. adoption of regtech means improved data quality that can be shared quickly and securely with various entities as well as improved compliance, both of which are positive for the stability of the financial system. financial innovation is changing traditional banking business models, structures and operations as well as the nature and scope of banking risks. key risks associated with the emergence of fintech include strategic risk, operational risk, cybersecurity risk and compliance risk. it

initiatives. an area, in which the private sector can excel, given appropriate incentives, is that of research and development which could act as a driver of competitiveness and job creation. a number of large r & d projects have already shown feasibility and have the ability to develop into new industries, creating substantial opportunities for increased employment, foreign revenue income, beneficiation and competitiveness. many infrastructure investment projects can act as an attractive asset class for private investors, due to the predictable nature of returns, thereby providing a low risk investment profile. infrastructure investment projects may provide a means whereby a consistent real return over inflation can be attained through a low volatility investment vehicle. private sector funding is, however, subject to policy certainty so that private investors can be assured that they will be able to realise a return on their investments. the ndp proposes that regulatory impact assessments be done on all new regulations, and that an expert panel be appointed to prepare a comprehensive regulatory review for smalland medium - sized firms in an effort to assess whether special conditions are required for such entities. to this end, a new unit is being created in the presidency to carry out thorough impact assessments of both new and existing legislation and regulations within a social economic impact assessment system that will ensure alignment with the ndp and reduce the risk of unintended consequences. the continued drive towards the establishment of a viable renewable energy sector in south africa should be supported and is an example of an area in which small businesses could rapidly gain traction, as countries become more inclined to embrace a green growth development approach, as we enter the so - called solar age. bis central bankers ’ speeches the proper implementation of the ndp will be conducive to an increased level of entrepreneurship in the economy, as the ease of doing business improves. the obvious outcome of such a process will be the creation of more sustainable jobs. small businesses generally have the capacity to attract those who are low to moderately skilled and are, therefore, best placed to recruit from among the significant pool of unemployed workers. the ndp is already facilitating the bringing together of various stakeholders in the economy within an environment of common purpose. the ndp thus constitutes a powerful and integrated development agenda for the state and the whole of south africa, and for the plan to succeed it should continuously be translated into action plans, with clear milestone along the way, within realistic time frames. to yield relatively swift results, in terms of improved growth, the following two focus areas deserve mentioning. the first is a better integration of