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7 INTERVIEW 26.11.2020 up on various fronts and the Authori- ties have put in significant effort to ad- dress the points noted in the Moneyval Report. However, the main purpose of addressing these matters is not solely due to passing the Moneyval test but it should be the priority of the practition- ers, regulators, authorities, and other stakeholders to continue achieving an effective, proportionate and fair regime that works for us all with the ultimate aim of improving the jurisdiction's of- fering as a centre of excellence in finan- cial services. We need to keep on developing a pol- icy framework to enable innovation to thrive while maintaining a level play- ing field for all stakeholders within the sector, especially when it comes to le- gal, regulatory and compliance matters. ere is much more room for stream- lining and introducing efficiencies in order to achieve a balance between managing effectively risks within the le- gal and regulatory framework and con- tinue growing the business. How was the financial services sector affected by the COVID-19 pandemic? When one compares the financial ser- vices sector to other industries such as hospitality and retail, we can see that financial services were not impacted to the same extent. Having said that, our members did face a number of chal- lenges in particular in relation to the business development initiatives as the opportunities to travel and physical- ly meet were and are still very limited. While the potentially lack of new busi- ness might not significantly affect 2020, the situation might be completely differ- ent if the current COVID-19 situation be extended to most of 2021. However, every cloud has a silver lining as we can use this period to look into innovating ourselves and be ready to hit the ground running when the COVID-19 situation is over. In the case of the banking sector, it has, once again, shown resilience and adaptability and together with govern- ment initiatives, continued playing a critical role in ensuring that the Maltese economy continues to function well by providing liquidity as well as support to individuals and businesses during these turbulent and challenging times. Overall, we can say that our members continued to serve their clients dur- ing this crisis, albeit in a less personal and face-to-face manner, but through the use of digital technology and other forms of communication. Due to COV- ID-19, we are all witnessing the accel- eration of the transition to digital in all aspects of life – in the way we consume, communicate and entertain ourselves and, I'm sure that everyone will push to keep this momentum going. How can innovation help Malta's core traditional financial sectors? Innovation in financial services needs to be given a holistic dimension. We need to look at innovation in a mul- ti-faceted way and must not only look at innovation in terms of investing solely in digitalisation. Whilst digitalisation remains a crucial part of the further development of this sector, one must also ensure that innovation related to the legislative framework as well as the operational efficiency is also and equal- ly considered. is requires the coop- eration of the major stakeholders in particular the Authorities who are en- trusted to revise legislation, policies and procedures to further attract foreign investment to Malta. Focusing on the legal and operational innovations to- gether with digitalisation, will be crucial for our members to get new sustainable business and for the country's economy to grow further. How do you see Malta's financial services evolving in the coming five and 10 years? e current pandemic makes it diffi- cult for everyone to predict the future or give an outlook on the sector. Defi- nitely, our fundamentals are good and that augurs well for a recovery. How- ever, the current economic recovery is dependent also on the developments in the medical field and we have welcomed the recent positive news in connection with the development of one particular drug. Notwithstanding the headwinds that we are facing, I believe that there are opportunities to be seized as any cri- sis creates new prospects for doing things differently. Agility, in the face of adverse situations, is important if we are to maintain a competitive advan- tage, and we must maximise the use of technology to continue developing our legislative framework in line with the opportunities arising as well as to cater for the developments taking place inter- nationally to innovate and take on the challenges of the future. adversity Rudolph Psaila

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