personalised products. as digitalisation progresses, the quantity and value of such client data are increasing. established providers of payment services are having to confront the fact that competition at the client interface and competition for client data is intensifying. in the digital age, the wide network of branches which traditionally gave banks ’ a competitive edge no longer provides that advantage. developments in china show how quickly banks can lose their client interface to non - banks in the payments arena : within a few short years, the online marketplace alibaba and the news app wechat have managed to capture more than 90 % of the rapidly expanding mobile payments segment. 9 the growing focus on the client interface and client data also represents a challenge for central banks. gross misuse of data and a lack of reliability could seriously erode trust in payment systems – and ultimately in money itself. even with the new technologies and i covered this topic at our money market event a year ago. i stand by the point i made then – namely, that cryptocurrencies are more like speculative investment instruments than stable payment methods. financial stability board ( 2019 ), fintech and market structure in financial services : market developments and potential financial stability implications, fsb white paper, 14 february. page 6 / 9 possibilities coming on stream, payment transactions must continue to function and be secure. for payment systems to remain future - proof, in - depth discussions between the main stakeholders in the swiss financial centre are therefore essential. the second challenge thrown up by digitalisation is the unbundling of the value chain. in the past, the value chain – from payment initiation, through authorisation and clearing to complaints processing – was largely concentrated in the hands of a single entity. thanks to technical innovations, however, payment service providers are now unbundling and reconfiguring the value chain. for instance, they are taking the products of specialised providers – e. g. relating to fx transactions, payment guarantees or ‘ mobile wallets ’ – and combining them. established providers of payment services are having to adapt to this unbundling. they are having to cooperate with new players, invest in their value chains and simultaneously satisfy demand for ever faster and easier payment methods. the central banks, too, face a challenge : they need to develop the core payment infrastructure in such a way that the unbundling of the value chain can be successfully navigated – without new risks being created. as a result, we are seeing many central banks adapting their

snb rtgs 28. 03. 2019 money market event | andrea m. maechler and thomas moser | © swiss national bank four challenges of the digital age client interface focus on client contact and client data value chain development of core infrastructure zukunftsfahigkeit dlt des zahlungssystem interoperability with dlt zukunftsfahigkeit des cyber risks zahlungssystem security of data communication source : snb 28. 03. 2019 money market event | andrea m. maechler and thomas moser | © swiss national bank thank you for your attention © swiss national bank