Luis M Linde: Innovation, transformation and reputation

Speech by Mr Luis M Linde, Governor of the Bank of Spain (until 11 June 2018), at the 25th Financial Sector Meeting "Innovation, Transformation and Reputation", organized by Deloitte, Sociedad de Tasación and ABC, Madrid, 23 May 2018.

The views expressed in this speech are those of the speaker and not the view of the BIS.

Central bank speech  | 
27 June 2018

Let me begin by thanking the organisers – Deloitte, Sociedad de Tasación and ABC – for their invitation to me to participate in this session of the 25th Financial Sector Meeting, which on this occasion turns on three ideas: innovation, transformation and reputation.

In my opinion, these three concepts accurately encapsulate the main challenges currently faced by the financial sector. The new technologies are enabling financial institutions to transform their systems and their business models, but this transformation should not lead us to forget that the keystone of any market, and all the more so financial markets, is customer confidence.

The financial sector is faced with a singularly complex setting and this conference provides an opportunity to confer with institutions’ key decision-makers on the different ways in which changes are being addressed at this time of transformation, which will be crucial for the future of the industry.

The new technologies, which have already significantly impacted various sectors, now have the potential also to substantially change the way in which financial services will be provided in the not-too-distant future. I would thus like to take this opportunity to offer my view on the opportunities and risks these new technologies pose. In this connection, I shall first briefly review the innovations I consider most significant and, secondly, I shall address the challenges posed by the new scenario for the authorities, and in particular for a central bank.