digitalization and financial services innovation in the italian g20 presidency agenda speech by alessandra perrazzelli deputy governor of deputy governor of the bank of italy singapore fintech festival 2020 – economic summit, 7 december 2020 thank you for inviting me to speak at this very important event. the italian g20 presidency officially took off on december 1. three keywords embody the overarching priority themes of the presidency : people, planet, and prosperity. these ‘ three ps ’ will inspire the agenda of the g20 finance track work streams led by finance ministers and central bank governors. we must aim to foster a transformative recovery from the pandemic to a more inclusive and sustainable economy and society, levering on new technologies and digitalization, to bring a brighter future for all. the italian presidency will bring a renewed focus on green and sustainable finance issues ( which also figure in the agenda of this event ), in particular with initiatives aimed at promoting better quality data and a broader and more comparable climate - related financial disclosure. as to digitalization and financial services innovation – the main theme of this singapore festival - taking over from governor alkholifey, i confirm that these will continue to be important cross - cutting issues in the g20 finance track workprogram also under the italian presidency. as a first example, following up on the g20 action plan developed under the saudi presidency for sustaining the recovery after the pandemic, the italian presidency will promote a discussion in the g20 on the role of new technologies and digital transformation as drivers of productivity gains which can lead to more inclusive and resilient growth. a priority will be to define a menu of policy options providing evidence on best practices for supporting the digital transformation and generating productivity returns. a second example concerns digitalization applied to infrastructure. the italian presidency considers a priority to continue to work on the infratech agenda endorsed under the saudi presidency, by focusing on best practices for delivering high - quality and high - impact technological solutions enabling infrastructure resilience, and for addressing disparities between urban and rural areas to reach universal access to connectivity networks. a third example refers to the g20 work stream on financial inclusion. the shift towards digital financial services, further accelerated by the pandemic, has created new opportunities but also new challenges. leveraging on better and more advanced technology, we must work to ensure that benefits are widely shared, by improving financial access for underserved and vulnerable groups, and small and medium enterprises

agreement curtails governments ’ ability to pursue sound macroeconomic and regulatory policies. third, these particular negotiations were mostly about allowing foreign institutions to establish in the market - entailing foreign direct investment - to provide services and bring technology, capital and expertise with them. this was seen not as an additional threat, but as part of the answer to the crisis. commitments in the wto provide a guarantee that the terms and conditions on which investment decisions are made, and trade is carried on, are not going to change overnight. since nothing chills investment more than uncertainty about the direction of government policy, such guarantees are valuable to traders and investors, as well as to governments wanting to attract foreign investment. the financial industry in the us, europe and japan has been active in formulating positions for the negotiations that began this year. the liberalization of the rights of establishment and operation for suppliers remains essential for the provision of most financial services, and there will be calls for further liberalization on this front. at the same time, technological advances in telecommunications and informatics are radically changing the manner in which financial services are traded, making cross - border trade increasingly important. the negotiations will certainly seek improved access and greater security for this type of trade. this issue is also relevant to the ongoing work on electronic commerce. now, what can we do to ensure successful conclusion of these negotiations? there is much that can be done, especially in creating conditions favourable to further liberalization. many countries, particularly developing countries, lack the necessary institutions, regulatory structures and legal frameworks needed to support a fast - changing, modern economy. in a sense we find ourselves between two worlds - between an economic system which is increasingly global and a patchwork of institutions and structures which remains largely national in scope. more generally, there is a continuing need for vigorous international dialogue and cooperation. the efforts being made by the bis and other international fora are critical for confidence and stability in the financial systems of the world, which in turn is a key requirement for keeping the trading system open. we need to make the markets work. adequate prudential regulation and supervision, enhanced transparency and corporate governance, strengthened competition policy, provision of safety nets and proper legal and accounting systems are all preconditions for countries to be able to take advantage of the sizeable benefits of liberalization. your contribution on these fronts is crucial to our efforts. thank you.