for infrastructure building and network expansion to achieve the economies of scale ; and ii. promote effective competition among the industry players to spur the development of innovative solutions, provide greater choices and value proposition to the public and in the process, lower costs. bis central bankers ’ speeches over the past few years, bnm has played the role of a catalyst by instituting reform measures and introducing market incentive mechanisms to enhance the accessibility and the quality, affordability and security of the e - payment services to the general public. in this regard, we had introduced the pricing reform framework as well as the payment card reform framework. correcting price distortions in may 2013, bnm had introduced the pricing reform framework to correct the price distortions between paper - based payments and e - payments. by differentiating the prices of payment services according to their relative costs, the public are thus incentivised to use the more efficient and cost - effective e - payment services. in this respect, we need to explore new incentives that can accelerate the migration to epayments. strengthening competition and lowering cost to curb the rising cost of payment card acceptance that had impeded the expansion of payment card terminals among merchants, bnm had implemented the payment card reform framework in july 2015. the reform framework had removed market distortions and imbued competition and transparency in the payment card market. this has resulted in the offer of higher quality and lower cost solutions, especially to the lower tier merchants. driving infrastructure building and network expansion to facilitate infrastructure building and enhancements to payment services, bnm had also established market incentive structures such as the e - payment incentive fund ( epif ) framework. under the epif framework, banks are incentivised through a set of prerequisites to invest in e - payment services, and to channel the cheque fee collected as incentives to encourage their customers to migrate to e - payments. the industry players had also established a market development fund ( mdf ), which would channel approximately rm455 million to expand the network of payment card terminals from 240, 000 in 2014 to 800, 000 by 2020. building awareness and confidence to enhance awareness and confidence in the use of e - payments, bnm will continue to work with the financial services industry to strengthen security measures, thus ensuring that epayment transactions remain safe and secure. significant resources are devoted to educate and guide the public in adopting e - payments through nationwide roadshows, media engagements, township campaigns and outreach programmes. the

be the key differentiator. fintech and its potential the proliferation of internet and mobile technology and the rise of disruptive technology in the financial sector, also known as fintech, has also fuelled new business models and bis central bankers ’ speeches created opportunities for new sources of growth. the offering of convenient, affordable and innovative financial solutions particularly by ‘ agile ’ non - bank service providers challenges the traditional business models and necessitates a re - evaluation of business strategies by financial institutions. hence, it is timely for financial institutions to invest in financial innovation and explore the formation of strategic alliances with other innovative financial service providers to capitalise on such emerging trend. it is in the interest of the financial services industry to adopt technological advancement in their business model. it is better to embrace it now rather than to be embarrassed by it later. conclusion each participant in the domestic payment market has a critical role to play in advancing the country ’ s migration to e - payments. bnm will continue to work with the industry and act as a catalyst to foster a conducive payment ecosystem. myclear as the operator of the nation ’ s key financial market infrastructures would coordinate the industry efforts in infrastructure enhancements. financial institutions should continue to intensify their efforts in providing innovative and value - adding financial solutions that meet the needs of their individual and corporate customers. businesses and consumers, on the other hand, should embrace and integrate e - payments and other digital financial services into their daily activities to benefit from enhanced efficiency and productivity. the symbiotic relationship among all the stakeholders will drive the transformation and modernisation of malaysia ’ s payment ecosystem. a safe, reliable and efficient payment ecosystem will support the country ’ s economic growth, competitiveness and productivity. let me conclude by congratulating myclear and the winners of today ’ s awards ceremony from both the financial and business communities. i hope today ’ s event is the stepping stone and would inspire bigger achievement in our endeavour to accelerate the migration to epayments. thank you. bis central bankers ’ speeches