costs provides an incentive for the banking organization to refrain from excessive risk - taking. “ indirect ” market discipline is exerted through risk - sensitive debt and equity instruments when private parties, and possibly government supervisors, monitor secondary market prices of those instruments in order to help determine the risk exposure ( or default probability ) of a banking organization. in response to perceived increases in bank risk, such parties could then take a variety of actions that increase bank operating costs. for example, purchasers of bank claims could increase the bank ’ s cost of funds and limit its supply of credit, and both private counterparties and supervisors could reduce the bank ’ s ability to engage in certain types of contracts. the anticipation of these actions, which are essentially various types of penalties, provides banking organizations with incentives to refrain from excessive risk - taking. market discipline does not come naturally to banking. the federal safety net limits direct market discipline because it reduces the demand for disclosure and the risk - sensitivity of debt holders. clearly, insured depositors have almost no incentive to penalize banks for excessive risk - taking. and, uninsured depositors, because of depositor preference laws, may also perceive relatively little need to impose higher costs on banks for excessive risk - taking. given these incentives, secondary market rates and spreads on these debt instruments would be inadequate – if not irrelevant – barometers of a bank ’ s risks and would therefore generate little indirect market discipline. further, the real and perceived certification of soundness provided by supervisory authorities may also reduce the demand for disclosures and the risk - sensitivity of debt holders. compounding these disincentives for investors to evaluate bank risks, the raison d ’ etre of banks is that these institutions provide credit in environments characterized by asymmetric information. therefore, banks are inherently opaque and difficult to assess. nevertheless, there seems to be fairly strong statistical and anecdotal evidence supporting the view that both direct and indirect market discipline currently are exerted on large banking organizations. with respect to direct market discipline, econometric studies of the relationship between deposit growth and portfolio risk have generally found that uninsured depositor holdings decline with increases in the depository institution ’ s risk. and, other econometric studies have found that rates on uninsured certificates of deposit are sensitive to measures of risk. supervisory experience is consistent with both of these observations. other types of bank liabilities also appear to be sensitive to risk. for example, during periods of financial

- time visualization of business management. these developments could further enable a grasp of business conditions, cash flow management, the production of credit information, automated lending, and management consultation. the benefits of linking these two systems are not limited to improving the efficiency of economic activities. for example, data on deposit account activities contain various kinds of information on the account holder ’ s livelihoods. elaborating on the information on the customer ’ s lifestyle obtained from these business data could help identify where there is a hidden potential demand for financial and non - financial services. in this regard, online businesses and consumer businesses have taken the lead in adopting personalized marketing, or a strategy to increase customer satisfaction. it is likely that financial institutions will accelerate their efforts to utilize the information that they have as a business asset and find neue kombination with other business categories. thus, linking the information systems assisting people ’ s livelihoods and business activities and the systems supporting financial services, which were traditionally separated, could improve the convenience of both financial and non - financial services, thereby leading to the creation of new services. on this basis, it is important to understand as - a - service — which i introduced as a business model earlier — not merely as a methodology, but as a concept that provides the perspective of creating new services and expanding demand through continuous improvements to achieve economic growth and an affluent society. for example, some may think that banks are only playing a behind - the - scenes role to assist actors, or their partner firms, to provide financial services in baas. there is also a potential, however, for banks to play a role as a director who manages the production of a digitalized neue kombination 2. 0, by being actively involved in the creation of new services and maximizing the potential of the platforms. digital transformation integrating information and financial systems first requires advances in the digitalization of each system. a system needs to be put in place that supports end - to - end automatic processing, from information input on a smartphone or a business system screen, to service completion as well 2 / 3 bis central bankers'speeches as database preparation for the analysis and high value - added conversion of information for the subsequent information business. to this end, changes need to be made in the current way of work that remains bound to paperbased processes or manual transcription of information. moreover, the way work is transformed should aim at not only improving business efficiency but also creating new business models by linking information. neue