##ry activities facilitate regulatory arbitrage. the same issue applies to 3rd party dependency risk. just to pick an example, cloud computing market is highly concentrated and amazon web services has built a dominant position. as the core financial functions lift and shift to the cloud, the risk of a single point of failure will emerge, but yet, cloud providers are unregulated and to a large extent out of the reach of supervisors. second, the question of conduct. our regulation embeds a judgment of things that are acceptable and some that are not. technological developments are making it possible to use information that was previously out of reach of a financial intermediary. this would potentially allow a more accurate assessment of risk or a more “ responsive ” pricing of service. but what is possible may not be ( socially ) acceptable – to take one example, the current development of “ social network informed credit scores ” raises privacy concerns. in that context, the regulator ( in some cases, the legislator ) could have to revisit its stance on conduct issues. let me now turn to new risks which are non - financial in nature but highly intertwined with the digitalization of finance. two in particular merit scrutiny. first, the question of strategic independence of incumbents. if incumbents depend on bigtechs for key infrastructure such as cloud computing, if they rely on the same bigtech to 2 / 4 bis central bankers'speeches distribute their products through their platforms and then compete with bigtechs on certain segments, they see their strategic independence challenged in the same way as hotels and retailers did. this process of commoditization of incumbents may lower credit standards to compensate for higher pressure on margin and exacerbate the funding gap because of lower customer stickiness. second, the question of cyber - risk. with greater interconnections between technologies and the financial system, cyber - risk is moving from an idiosyncratic risk to a potential source of systemic risk. whether and how to address the type of issues i just mentioned is a challenging task from a regulatory and supervisory standpoint, as it involves an assessment of both the potential risks and benefits brought to the financial system and the economy more largely, which are by nature uncertain. it may give rise to a significant array of alternative courses of actions to meet two key imperatives : ensure an adequate level of protection for participants and preserve the potential benefits brought by innovation. let me illustrate this with crypto - assets. because of incomplete information

- and - dump schemes, which artificially inflate asset prices before selling off, potentially leaving followers at a loss. unlike financial adviser's representatives,'finfluencers'often lack the necessary qualifications and regulatory oversight, making their advice potentially less reliable and sound in assessing risks and ensuring financial security. therefore, financial advisers must recognise the importance of engaging with'finfluencers'and staying informed about emerging trends. equally important is your proactive commitment to providing credible, client - centred advice that counters misinformation and empowers consumers to make well - informed financial decisions. financial adviser's representatives have the required qualifications, positioning them to provide trustworthy advice, which stands in stark contrast to the potentially unreliable and unsubstantiated information shared by'finfluencers '. moreover, financial advisers should also leverage on digital channels to disseminate accurate information and engage effectively with clients and the broader public. in line with this year's theme of " client centric advising, " and recognising the evolving societal and market dynamics, it is crucial for financial advisers to consider the following proactive strategies : firstly, given the prevalence of misinformation on social media, financial advisers should adopt proactive strategies such as using online platforms to disseminate accurate financial information and debunk myths effectively. secondly, implementing aggregation services can significantly enhance financial advisers'credibility online. by curating and presenting diverse financial insights from reputable sources, advisers can provide clients with comprehensive perspectives and informed decision - making tools. this approach not only establishes trust but also reinforces financial adviser's role as a reliable guide and reference in recommending complex financial products that best suit consumers'needs. lastly, transparency and ethical behaviour in online interactions are paramount. financial advisers should prioritise disclosing any potential conflicts of interest and adhering to industry regulations. this will foster long - term client relationships built on trust, accountability, and ethical conduct. ladies and gentlemen, 4 / 5 bis - central bankers'speeches as we embrace a client - centric advising approach, trust emerges as the cornerstone of building strong adviser - client relationships and facilitating effective communication. this reminds me of a quote from benjamin franklin, who once said, " it takes many good deeds to build a good reputation, and only one bad one to lose it ". this sentiment resonates deeply with financial advisers, highlighting the critical importance of upholding integrity and reliability at