take the same positions at the same time. such herding could then enforce current trends, creating bubbles or bursting them. and then there are threats of a more technical kind : cyber risks. cyber risks affect everyone – banks, fintechs and their customers. arguably, fintechs are more exposed to cyberattacks and data theft. their it platforms are small and interconnected, and they often use public cloud solutions and outsource data storage. that said, fintechs are digital natives and are very aware of the risks. ladies and gentlemen, it is hard to predict where the fintech journey will take us. it is obvious, however, that the train has left the station and is speeding up. customers want to extend their digital life to banking ; they want banking services anytime and anywhere. those who can satisfy their needs will become dominant players. there is a chance that fintechs will deeply transform the banking business. it is up to regulators and supervisors to ensure that this does not come at the cost of stability. the issue is, of course, that fintechs often operate outside the regulated banking sector. with that in mind, policymakers should follow the general principle of “ same business, same risks, same rules ”. that is important. as banking supervisors, we focus on risks related to banks. in that regard, we are working on a number of projects. take bank licences, for example. we see a rising number of applications related to fintechs. in response to this, we have teamed up with the national supervisors to work on a joint policy approach. it will ensure that applications are treated in the same manner across the entire euro area. risks that are specific to fintechs will be assessed appropriately and proportionately. we are also seeing more and more supervisors exploring and setting up mechanisms to facilitate the authorisation process for fintech banks. innovation hubs and sandboxes are two of the key words here. and we too are seeking to implement a euro area - wide hub for fintechs. we are also assessing the risks that might arise when banks or fintechs outsource data or even entire it systems. we already carried out some work in this regard ; in 2015, we did a cybercrime survey, which was a unique project at the global level. as a follow - up we implemented a data base to track and analyse cyber incidents in large euro area banks. and last but not least, concerning the

business models of banks, we will explore potential 2 / 3 bis central bankers'speeches risks that emanate from fintechs and other non - bank competitors. in that regard, fintechs are among our supervisory priorities. we have to closely monitor how fintech evolves and better understand its impact. our workshop today serves that goal. it brings together fintechs, banks and supervisors, and it allows us all to share our ideas and experience. it helps us to shape our supervisory views and limit potential risks. and it helps the financial industry to provide modern and safe financial products. such exchanges are vital. i therefore thank all those who are contributing to this event and all those who made it possible in the first place! thank you for your attention. 3 / 3 bis central bankers'speeches