with each other, resulting in what we call digital islands. it is as if we are all putting our heads down and concentrating on developing our own platforms, forgetting that it is equally important for the platforms to communicate and work with each other. as suggested in the report, interoperation between the platforms could help to further modernise the global trade finance ecosystem and close the gap. 6. the commercial data interchange, also known as cdi, which the hkma is building, is precisely designed with enhancing interoperability in mind. by way of introduction, cdi aims to enhance the sharing of commercial data. currently, every time a bank wants to connect to a data provider, it has to set up a new, separate connection. with cdi, each bank and data provider will only need a single connection to the cdi platform, allowing banks to quickly access the business data of corporates. banks will also be able to conveniently and swiftly set up connections with new data providers because cdi uses standardised apis and data models, and adopts existing mainstream industry standards such as the legal entity identifier. 7. i mentioned that cdi is designed with improving interoperability in mind. because the platform can link up scattered digital islands and smoothen data sharing, it has great potential to enhance trade financing process and improve smes ’ access to financing. let me show you how this could be achieved with the aid of a story. 8. mr chu runs a small business called chu kee with the help of his wife and parents. chu kee imports chilled chicken from guangdong and sells them to supermarkets all around 1 / 3 bis central bankers'speeches hong kong. the delicious taste of the chilled chicken and the chus ’ impeccable service quickly earned chu kee a big group of loyal customers. 9. a few years ago, when mr chu was trying to apply for loans from banks to expand the business, he was unable to produce the financial statements required because he had never properly prepared one before. the loan approval process ended up taking almost six months, and the experience left mr chu rather upset, unfortunately. 10. last year, mr chu was ready to further expand chu kee, and decided to give cdi a try. this time, the banks, instead of asking for financial statements, obtained alternative data from various data providers through cdi. for instance, from integrated online shopping platforms, banks learnt the amount of chilled chicken chu kee supplied to

different supermarkets, and their value. 11. with the data, the banks understood chu kee ’ s latest operating conditions better and made credit decisions speedily. needless to say, before the data was used and shared, prior consent from chu kee was obtained. in the end, mr chu secured a substantial loan at a competitive interest rate, and was very pleased with the hassle - free experience. 12. now, what if i tell you that the above is based on a true story? 2 yes, during the technical exploration stage, cdi has already, in real life, helped smes in hong kong take more control of their own digital footprint, and use their own data to improve their access to financial services. importers of chilled food and sneakers, and manufacturers of phone accessories have already enjoyed the benefits of cdi firsthand. as more and more banks and data providers join cdi, we expect that an increasing number of smes will benefit from the platform. 13. for cdi to reach its full potential and successfully connect the digital islands, your active participation is crucial. cdi is definitely a team sport, and we all have a role to play as members of team hong kong. 14. the hkma, as a regulator, will facilitate a conducive environment, and we are doing that by building the infrastructure and offering guidance. to banks, we urge you to embrace fintech, and join the cdi platform. to data providers, we invite you to contribute meaningful data, such as logistics data and procurement data between buyers and suppliers, to enrich the types of data available. to sme owners, we encourage you to contact your bank and understand more about cdi. together, we can take hong kong ’ s data ecosystem to new heights, and ultimately contribute to bridging the global trade financing gap. 15. the benefits of a more digitally integrated trade finance system are plentiful, that much is certain ; and the hkma strives to help bring about an enhanced system in collaboration with different stakeholders. we look forward to working with the international chamber of commerce ( icc ) and the fung group in this regard so that the needs of the underserved segments can be better catered for. 16. before i close, i ’ d like to take this opportunity to offer you a glimpse of the hkma ’ s vision of digitalising cross - border trade. for those of you who have been following our cbdc developments