##less cross - border payment experience and bringing us closer to a world of truly borderless transactions. another example is the crossboundary e - cny pilot, which allows hong kong people to set up e - cny wallets locally, 1 / 5 bis - central bankers'speeches with linkage to the fps for cross - boundary payments. whether you are buying coffee in bangkok or settling a bill in a shenzhen restaurant, payment is as simple as if you were in hong kong. another example is the use of technology to address long - standing pain points in the data ecosystem. by linking up isolated data islands and combining sources from the public and private sectors, we are expanding and diversifying our data network. the linkage between hkma's commercial data interchange and the government's data gateway is now fully operational, helping to address the industry's need for government data which can be used to support the credit needs of smes. the second thing we have learned is the need to be bold in driving innovation. we need to have an " explorer " mindset to try out innovative ideas even if they are only at a formative stage. one good example is tokenisation, which is just taking shape as we pioneer different use cases and solutions with project ensemble to explore and define the tokenisation landscape. working with the industry, we hope to showcase how innovation and regulation can work together to create new opportunities for our financial markets. but a major trend like this inevitably comes with a need for clear guidance and market confidence, and we value your feedback and views as we navigate this evolving landscape. that is why we have been engaging with market players through the ensemble and stablecoin sandboxes to help us formulate regulatory requirements that are risk - based and fit - for - purpose. our third lesson is the importance of collaboration. innovation thrives when we come together a€ “ cross - sector and cross - border partnerships let us tap into network effects and our collective knowledge, while playing to our individual strengths. numerous collaborations are underway between the hkma, various jurisdictions, and fintech players from both local and global markets. these partnerships, big and small, have proved to be essential building blocks that support further progress. i've talked about the three lessons we've learned so far : focus on real - world problems, be bold and be collaborative. these lessons are steering us into the next phase of our fintech journey. " what's on the horizon for fintech

systems and controls as their operations and market practices evolve. but we need not expect – and surely not require – significant numbers of banks to develop risk management systems that are more complex than they need. simplicity can work well, too, and for most banks that is likely to be the best approach. for the vast majority of u. s. banks, current practices, as i noted, seem fine. it is, of course, our belief that, for the larger banks, improving the measurement and management of risk will provide bank supervisors with more reliable and efficient ways to evaluate a bank ’ s financial health. that thought underlies the concept of risk - based supervision and our increased focus on internal processes and controls. if we can gain greater confidence in a bank ’ s operating procedures and in its own evaluation of risk, we should be able to reduce our oversight role – certainly when compared with what would otherwise be required. innovative banking system the management principles adopted by u. s. banks, our capital market system, and our oversight regime have worked well, i believe, in providing this country with a healthy and responsive banking system and probably the most efficient allocation of financial resources in the world. much of that success relies on the effective measurement of risk, on high levels of competition, and on arm ’ s length transactions. indeed, these elements support one another : competition requires institutions to correct mistakes quickly and assess risks as accurately as they can, while independent decision - making helps ensure that pricing reflects risk. sound pricing, in turn, produces good returns to investors and spurs further competition. despite more than a decade of consolidation, the u. s. banking system remains highly competitive on virtually every front. with enhanced technology and deregulation we now have global and national markets for a growing number of banking products, while low barriers to entry encourage competition in more sectors than ever before. the pace of bank creation has actually increased in recent years, despite the contraction in the overall number of insured commercial banks. interstate banking has also brought new competitors into previously settled markets, and gramm - leach - bliley has the prospect of adding more competition, as nonbank firms seek entry into the banking business. even when these events simply change the ownership of existing banks, one could still argue that, in most cases, they introduce stronger, more aggressive competitors into a market. the role of bank regulators is, of course, to ensure that all of these activities do not reduce the safety and soundness of banks.