##capital. in this way, finance, often thought to be destructive, can be a very transformative force as well. 2 / 3 bis central bankers'speeches regionalisation and digitalisation are changing the rules of the game so where does this leave us? as highlighted, the future of international banking is not necessarily bleak. with further calibration and evolution, it can continue to have a prominent role in serving global interests. the good news is this evolution is already taking place. previously dominated by the elite few, in this case large global banks, international banking is now increasingly open to a larger group of market participants. on one hand, the circle of banks is expanding, from large global banks to smaller regional banks. this is an important point that is also highlighted in the global financial development report, reflecting the growing extent of banking relationships between developing countries, particularly in this region. on another front, digitalisation is ushering in a new era, expanding the borders of international banking to now include non - bank fintech players. these players have the distinct potential of transforming global banking as we know it today. around usd13 billion was invested by venture capital players in fintech startups in 2017, the third highest annual total this decade. among these, the most impressive transformation is perhaps in cross - border payments. allow me to share an anecdote highlighting the magnitude of the change that is happening. earlier this year, eight chinese tourists went on a six - day trip to finland courtesy of a chinese online payment platform company. this trip was significant for two reasons. first, payments for the entire journey was cashless and performed through a mobile app, from the payment of flight tickets to food, ground transportation and other retail purchases. secondly, finland, located as far as 6, 000 km away from china, became the first country where this chinese app can be used to make virtually all payments. this is just the beginning. as fintech companies expand to other markets and enable seamless cross - border payments for other users, one can already imagine a future where one can travel the world with just a smartphone in hand. not only that, another related consequence of such a future is that essentially all we know of “ international banking ” today could be performed without an actual bank. naturally, we ask ourselves what are the implications of these changing boundaries of international finance? for financial customers, it means adapting to a new banking paradigm. a more regional and digital banking ecosystem could lead to increasing localisation

, personalisation and efficiency of financial products and services. while these are welcome developments, they have to be accompanied with the necessary financial education to enable safe and effective participation in the financial sector. from the regulators perspective, it means ensuring the regulatory and supervisory system is robust enough to cater to the evolving needs of the financial system, whilst at the same time safeguarding financial and economic stability. conclusion allow me to conclude with an analogy of the nine - dot puzzle. the puzzle, which appeared as early as 1914, proposes an intellectual challenge of connecting nine dots by drawing four straight lines without lifting the pencil. as many may know, the solution is simple, but can only be found by drawing lines outside the imaginary box formed by the dots, thus popularising the term “ thinking outside the box ”. the heart of the challenge lies in overcoming the imaginary boundary or border we perceive. the potential for international banking remains vast, if utilised appropriately. as the world ponders on how best to connect our economies together and the role of international banking in this aspiration, let us not be afraid to consider new perspectives, to search beyond traditional borders – real or imaginary. only then, can we truly realise the benefits of an international banking model that is sustainable, inclusive and without borders. 3 / 3 bis central bankers'speeches