the possibilities that new technologies afford to target very specific niches, while steering clear of other activities, such as the business of taking deposits, which entail more stringent regulatory and supervisory requirements. as the report indicates, this can prompt a disintegration of the value chain. we have shifted from a situation in which many users interacted exclusively with a single financial institution to one in which, for example, a user can have an account at a bank, order payments through another provider ’ s interface and use a third party ’ s payment instrument. this situation could potentially lead to some banks losing touch with customers, one of the main strengths of their business model, and being relegated to performing back - office tasks that generate scant value. this is detrimental for the bank in two ways : first, the relationship with the customer is weakened and becomes less stable. second, visibility over the customer is reduced, which hampers the proper estimation and control of risks. in conclusion, digital transformation is not only a driver of cost reduction, it is also critical to mounting a defence against these new competitors. 2 / 5 bis central bankers'speeches the aim is to increase customer loyalty, either by creating tailored products that better cater to their needs, or by developing collaborative solutions between institutions, of which bizum, the well - known instant payment system, is a prime example. in this defensive context, the sector must be able to harness its traditional strengths. we must not forget that banks have customers ’ trust, providing services to practically the entire population in spain. in fact, the covid - 19 crisis has served to remind us of the importance of banking, which has been central to the structuring of the public support measures. as regards the new customer interaction channels, the report focuses on the growing use of mobile devices to take out products and to perform transaction enquiries. naturally enough, the focus is on the importance of apps as a response to the changing preferences of digital users, particularly the younger segment. having an attractive interface and making applications easy to use is no doubt important. but in my view there is an even more critical aspect : the use of customer data. let ’ s not forget, customer data constitute the commodity upon which the fourth industrial revolution rests. financial institutions also have a strong starting position in this regard, having amassed a great deal of information on their customers over the years. evidently, they need to retain access to these data, while always observing high standards of compliance

daniel k tarullo : the volcker rule testimony by mr daniel k tarullo, member of the board of governors of the federal reserve system, before the subcommittee on capital markets and government sponsored enterprises and the subcommittee on financial institutions and consumer credit, committee on financial services, us house of representatives, washington dc, 18 january 2012. * * * chairman capito, chairman garrett, ranking member maloney, ranking member waters, and other members of the subcommittees, thank you for the opportunity to testify on the interagency proposal to implement the requirements of section 619 of the dodd - frank wall street reform and consumer protection act ( dodd - frank act ), commonly known as the volcker rule. my remarks today will focus on some of the issues faced in developing the interagency proposal. as i have previously noted in congressional testimony, the goal of the federal reserve with respect to this and all other provisions of the dodd - frank act, is to implement the statute in a manner that is faithful to the language of the statute and that maximizes financial stability and other social benefits at the least cost to credit availability and economic growth. the federal reserve, the office of the comptroller of the currency ( occ ), the federal deposit insurance corporation ( fdic ), and the securities and exchange commission ( sec ) ( collectively, the “ agencies ” ) in november sought public comment on a proposal to implement the volcker rule. the commodities futures trading commission ( cftc ) recently issued its substantially similar proposal for comment. because of the importance and complexity of the issues raised by the statutory provisions that make up the volcker rule, the agencies initially provided the public a 90 - day opportunity to submit comments. we recently extended the comment period for an additional 30 days, until february 13, 2012. the federal reserve welcomes comments on volcker rule implementation and has had numerous meetings with members of the public on this subject. we continue to post on our website all the comments that we receive and a summary of all the meetings that the federal reserve has had with members of the public about the volcker rule and all other provisions of the dodd - frank act. summary of statute and proposal the statutory provisions that make up the volcker rule generally prohibit banking entities from engaging in two types of activities : 1 ) proprietary trading and 2 ) acquiring an ownership interest in, sponsoring, or having certain relationships with a hedge fund or private equity fund ( each a covered fund ). these statutory provisions