with financial services providers, who must respond to changing demands, or risk being disrupted by entrepreneurial innovators. in a recent global study, the world bank reported that covid - 19 is accelerating change across the board on how people interact with financial services. unprecedented demand, especially from developing countries, requires a rapid transition to secure and inclusive digital finance. 1 the study points to a double digit increase in number and volume of fintech transactions, as well as 1 / 4 bis - central bankers'speeches continuous increase of the client base. these trends have been underpinned by changes to the existing fintech products and launch of new ones. about 60 % of the surveyed fintech companies reported launching new products as a response to changing behavior and demand of clients amidst pandemics. in addition, the fact that in the last decade banking industry was dealing with the legacy issues of the global financial crisis also provided bigger space for fintech firms, as non - regulated entities, to penetrate in financial business with consumer - centric solutions. this process was facilitated by the more favorable regulatory environment, i. e., falling regulatory barriers to entry for newcomers. concerning the benefits, i think there is no doubt that fintech can bring enormous benefits for customers, the financial system, and the overall economy. by enabling new players and business models to enter the market, fintech has potential to increase competition, meet unfulfilled customer needs, reduce inefficiencies and transform financial services for good. these solutions come from fintech's ability to unbundle traditional banking services such payments, maturity transformation, and risk sharing from banks, allowing these services to be performed by non - banks, i. e., fintech firms. furthermore, fintech solutions can enhance data analysis, leading to more personalized products. the combination of unbundling and more agile technology could provide customers with more choice, better - targeted services and keener pricing. increased competition from fintech firms has also contributed to increased innovations by traditional players and increased collaboration between them and newcomers that will fundamentally and permanently change the traditional conceptions of banking and insurance, as we understand it today. along those lines, the annual survey of the national bank shows an increasing use of modern technologies by the commercial banks, especially cloud services, biometric identification and nfc for digital wallets. overall, this transformation can bring about a more efficient, effective and resilient financial system. new finance channels can also improve the overall economy

is that digital transformation is high on the agenda for all parties involved in the ecosystem. traditional players look to gain operational efficiencies, cut costs, and enhance the customer experience. at the same time, alternative finance firms are on the rise, bringing better products and services than traditional players can offer. however, it appears that regulation is a common challenge for fintech led innovation and the entry of new players. on this front, survey respondents see a need for changes in the payment services regulation, the regulation for electronic signature, aml / cft regulation and rules for data protection. in the period ahead, we will focus our energy on activities related to governance arrangements and coordination issues with all stakeholders in the ecosystem. we also plan to devote special attention to developing effective consumer protection regulation in the area of financial services. setting criteria for licensing process for newcomers is another activity that is on our agenda. furthermore, we would also explore the feasibility of creating a regulatory sandbox, to enable firms to experiment with new technologies in a safe space. this regulatory tool has considerable potential to foster financial inclusion and it can signal to fintech industry participants that the regulator is open to innovation. all these issues will be part of the first national fintech strategy, as one of our strategic goals in the period ahead. as you can see the agenda is ambitious, but the idea is to react proactively even though the market demand is still modest. while no one can predict the future with certainty, we know one thing for sure a€ “ digital transformation is here to stay profoundly changing the way we live and work. looking forward, i see three main priorities : 3 / 4 bis - central bankers'speeches first, we should balance between enabling financial innovation on the one hand and addressing challenges to market and financial integrity, consumer protection, and financial stability on the other. second, close cooperation between regulators is of utmost interest. it includes international cooperation as well, considering that innovations could have cross - border implications. third, there is a need for strong industry engagement and commitment by all stakeholders to enable efficient implementation of the national fintech strategy in practice. enhancing public - private dialogue ( ppd ) between regulators and industry participants can enhance mutual understanding of fintech innovation and risk profiles, their role in financial inclusion, and can help to strengthen compliance with international standards. we can learn and benefit from one another. in this context, dialogue plays a major role, and events like this can help us enhancing the dialog with