CFI.co Autumn 2024

FOLLOWING DOESN’T GET YOU THERE FIRST. ERLING HAALAND WEARS THE NAVITIMER.

MASERATI GRANTURISMO FOLGORE

THE OTHERS JUST TRAVEL

WATCHMAKING ONCE AGAIN FINDS BRITISH SHORES

The Limited Edition Bremont Longitude is a groundbreaking timepiece that not only looks back at our country’s legacy but also forward to an exciting future of British watchmaking. The watch’s case back incorporates brass from the original “Flamsteed Line,” in Greenwich, the very spot where the first Astronomer Royal made his celestial observations in pursuit of an aid to navigation.

It has long been the goal of Bremont to bring watch manufacturing back to Britain. The Longitude represents a milestone in that journey, a homecoming of sorts, and proof that, to get where you’re going, you need to know where you came from.

First Thoughts

Any of our regular readers — or those of any other financial publication — will have been staggered by the radical recent evolution of financial services. Historically dominated by massive organisations, and primarily serving the wealthy, things are undergoing a serious transition.

AI’s ability to process massive datasets, automate complex activities and provide personalised insights puts it at the vanguard. While its benefits in the world of finance are evident — increased efficiency, improved risk management and streamlined operations — its long-term potential to democratise financial services has yet more allure.

By removing barriers, AI has the potential to usher in a new era of financial inclusion, economic opportunity, and societal advancement.

For far too long, access to quality financial services has been unevenly — some might say unfairly — distributed. Large portions of the world population, particularly in developing countries and marginalised communities, are frequently excluded from the formal system. Traditional banking’s reliance on physical branches, high fees and strict eligibility requirements often fail those most in need. AI’s capacity to transcend geographical constraints and socio-economic obstacles provides a feasible solution to a nagging problem.

Mobile banking apps and platforms have boosted access to fundamental services in areas that are underserved. AI gives consumers access to intuitive interfaces and leverages alternative data sources for credit assessment, allowing them to open accounts, make payments, and get credit.

The technology’s data analytics abilities can assist microfinance organisations and alternative lenders by effectively assessing the creditworthiness of those with limited or informal financial backgrounds.

This provides access to modest loans and micro-insurance products for entrepreneurs and SMEs, promoting economic growth and social mobility.

Individuals with poor financial literacy or lacking access to financial advice benefit from “roboadvisors” and AI-powered financial planning platforms. This democratises wealth management, allowing more people to better plan their future stability.

AI-powered chatbots and virtual assistants can provide personalised financial education and guidance, encouraging financial literacy across varied demographics. This helps people to make

more educated financial decisions, and avoid errors.

This democratisation of financial services has the potential to create a positive ripple effect. Access to financial services allows people to save money, invest in education and healthcare, and start businesses. This can rupture the grim cycle of poverty, and promote economic independence.

Financial inclusion equates to economic growth by facilitating entrepreneurship, investment, and greater economic activity. AI-powered financial services can help underdeveloped markets to reach their full potential.

By offering access to financial tools, AI can help women, marginalised groups and rural communities to achieve social equality and inclusivity. A more inclusive financial system can drive global economic growth and prosperity, resulting in a more equal and interconnected world.

Obstacles and ethical concerns involved with AI-driven democratisation must be considered. Algorithms have to be built to avoid the perpetuation of biases — and the risk of introducing new ones. Ensuring fairness is crucial.

Managing sensitive financial data necessitates stringent safeguards for data privacy and security. Protecting personal information and preventing data breaches is critical to retaining trust.

AI algorithms must be transparent and explainable, allowing users to grasp the reasons behind decisions — while encouraging accountability.

Successful implementation necessitates cooperation between governments, financial institutions, technological businesses, and society. A balanced regulatory framework is needed to ensure responsible development and deployment of AI.

Technology is always at the forefront of transformation, especially in the financial services industry.

The long-term ramifications of these developments are considerable, with the potential to empower individuals, alleviate poverty, and stimulate economic development. By harnessing AI's promise, prioritising ethical considerations, and ensuring transparency and collaboration, an inclusive financial landscape can be created for all.

Everyone, regardless of background, gender or location should have the opportunity to achieve financial wellbeing — and contribute to the greater good.

Correspondence

“ “ “

Your article How the Covid-19 Pandemic Reshaped the Business World (Summer issue) fails to address the very real and tragic consequences of both Covid-19 and the mass vaccination campaign.

In our eagerness to return to normality, we appear to have collectively swept the persisting health issues under the rug. An increasing body of information suggests that many people continue to experience a variety of debilitating symptoms long after their infection and/or immunisation. These "long Covid" cases, together with the troubling stories of vaccinerelated adverse effects, have cast a pall over our society, leaving many individuals and families unable to cope.

It's upsetting that people who dared to question the vaccines' safety and efficacy were so quickly disregarded and labelled as "anti-vaxxers". The current reality regrettably seems to confirm their suspicions. We need open and honest conversations about these issues, not restriction, censorship, and derision.

JOYCE HAVERS (Wellington, New Zealand)

I’m writing to express my concern regarding the removal of hereditary peers from the House of Lords. While I understand the desire for a more modern and representative upper chamber, I believe the complete elimination of hereditary peers is misguided. Their presence in the Lords provides unique and valuable perspectives that should not be so easily dismissed. These individuals — by lived experience, if not by virtue of their birth — possess a deep understanding of history, tradition, and the long-term implications of policy decisions. Their connection with the past serves as a counterbalance to the short-term political considerations that so often dominate the House of Commons.

Furthermore, the peers possess a sense of duty and public service that is not always found in elected officials. They are not beholden to any political party or special interest group, allowing them to act with greater independence and objectivity.

JAMES DRUMMOND (Bath, UK)

The piece in your magazine about Mitsuko Tottori (Summer issue) profoundly impressed me. It's an extraordinary narrative about a woman's rise from cabin-crew member to CEO, an accomplishment that would have been impossible just a few decades ago. Her story is one of unshakeable dedication, tenacity in the face of enormous challenge, and her genuine concern for the wellbeing of co-workers and passengers.

Tottori's personal and professional voyage is a source of optimism, showing that even in traditionally male-dominated sectors such as aviation, barriers can be broken and glass ceilings shattered. Her compassionate and empathy-driven leadership serves as a model for all of us, regardless of our career trajectories.

It's encouraging to see JAL embrace diversity and place value on talent and potential, regardless of gender. Her appointment sends a strong message about the importance of equal opportunity in the workplace.

WENDY LIM (Singapore)

“I'd like to express my admiration for your magazine's broad coverage of business trends, and propose an area in which I believe there is opportunity for expansion: sports.

The 2024 Olympic Games in Paris served as a reminder of the worldwide influence and unifying power of sports. The Games illustrated how physical feats can inspire, unite communities, and stimulate economic growth.

I feel your editorial staff might capitalise on this energy by expanding their coverage of the commercial side of sports.

This could include profiles of sports executives — how they use business expertise to generate success in the sporting realm. You might also include analysis of marketing and sponsorship agreements, demonstrating the financial and strategic value of such collaborations.

Coverage of developments in technology and innovation, emphasising how these advances are changing the sector, could provide another angle. So could discussions about sport’s social and economic influence, including how it drives community development and local economies.

I believe that such coverage would be of tremendous interest to your readers. Sport is a multi-billion-rand (dollar/pound) industry with global impact. It covers a wide range of industries. By delving into the business side of sport, your publication could provide your readers with useful insights — and motivation.

ADRIAN FOSTER (Cape Town, RSA)

“I'd like to express serious concern about the British Royal Family's constant exposure to slur, innuendo, and rumour. The monarchy unquestionably has a special place in our society, but the media's fascination with their every action oversteps the mark.

Incessant conjecture about their personal lives, fuelled by anonymous “sources” often amounts to a witch-hunt. This constant chatter not only invades their privacy, it also diminishes their dignity and feeds an unhealthy, sensationalist culture.

They are royalty, but they are human beings, too — who deserve the same respect and privacy as everyone else. Their personal relationships, challenges, and achievements should not be made public.

I urge you, and the other media, to show some moderation and report on subjects of true public interest rather than gossip. Let’s appreciate their achievements and contributions to society, rather than dismantling them as players in a sordid soap opera.

BRENDA LIGHTFOOT (Isle of Wight, UK)

IBM Thought Leadership Transparency Makes the Invisible Hand

Again, And Inclusive

by Paolo Sironi

Editorial Team

Sarah Worthington

George Kingsley

Tony Lennox

Brendan Filipovski

John Marinus

Ellen Langford

Helen Lynn Stone

Naomi Snelling

Columnists

Otaviano Canuto

Lord Waverley

Production Director

Jackie Chapman

Distribution Manager

William Adam

Subscriptions

Maggie Arts

Commercial Director

John Mann

Director, Operations

Marten Mark

Publisher Anthony Michael

COVER STORIES

Paolo is the global research leader in Banking and Financial Markets at IBM, Institute of Business Value. IBV is the thought leadership centre of IBM.

IBM Mind the Gap (16 – 17)

Capital Finance International

Meridien House

69 - 71 Clarendon Road

Watford WD17 1DS

United Kingdom

T: +44 203 137 3679

F: +44 203 137 5872

E: info@cfi.co

W: www.cfi.co

Cover Story

Johan Thijs: Steering KBC to Continued Success (24 – 31)

Moody's Ratings

Embracing Digital Innovation (32 – 33)

EY Argentina

Incentives for Large Investments (104 – 105)

Kellogg Insight Secured Debt (122 – 123)

Women’s Brain Foundation Groundbreaking Studies (128)

Asian Development Bank

Tackling Glacial Melt (132 – 133)

Otaviano Canuto Paolo Sironi IBM

Nouriel Roubini Gordon Brown Mohamed A El-Erian

Johan Thijs KBC Marina Rosemberg

Moody's Ratings

SegurCaixa Adeslas Alessandro Hatami Pacemakers

Milan Fintech Summit 2024

Bashar

EY

Sergio Caveggia

Yerbol Orynbayev Craig Murphy ALT Agency

Kellogg Insight Abraham Kim Efraim Benmelech

Nitish Kumar Raghuram G Rajan

Women’s Brain Foundation Antônio Jorge Martins Rabindra P Osti

Asian Development Bank

Joschka Fischer

Otaviano Canuto

The US Elections Will Have Global Economic Impact

In November, US voters will decide who will control the White House, the Senate, and the House of Representatives. Kamala Harris, Donald Trump, and their respective parties differ significantly on key economic policies that will affect not only the US but the global economy. Here, we examine the candidates’ positions on trade, tax, energy, and immigration.

On trade, while President Joe Biden’s administration has not championed free trade—maintaining Trump’s tariffs on Chinese imports and recently increasing tariffs selectively—a potential Trump administration would likely be even more protectionist than one led by Harris. Trump has already floated proposals like a 60 percent tariff on all Chinese imports and a universal 10 percent tariff on all imports. While the Biden administration has pursued a ‘de-risking’ approach to reduce reliance on the Chinese economy, citing national security concerns, Trump’s stance suggests a full ‘decoupling’ from China.

Like many mercantilist policies, there is an underestimation of the negative impacts on both countries involved and on third parties. For example, Trump’s tariffs on Chinese imports led to a reduction in US manufacturing jobs, as found by Federal Reserve economists in 2019. Moreover, US agricultural producers lost market share to Brazilian competitors in China. For countries like Mexico, Vietnam, and Malaysia that benefited as intermediaries during the previous US-China trade war, a full decoupling would likely disrupt these trade links.

Trump likens trade wars to boxing matches, where rising costs for American consumers due to tariffs are simply part of the toll. Harris, by contrast, has described Trump’s tariff proposals as a tax on US consumers, suggesting that she would be more cautious in adopting additional protectionist measures.

In the realm of taxation, Trump and Harris have distinct positions. While the 2017 corporate income tax cuts are permanent, individual and estate tax cuts are set to expire at the end of 2025. Trump aims to make these cuts permanent, while Harris seeks to increase taxes on individuals earning more than $400,000. Harris’s campaign has also endorsed Biden’s proposals to raise taxes on the wealthy. Congress’s composition post-election will be crucial in determining the success of these tax plans, as both candidates propose to fund their policies through tax

increases: on corporations and the wealthy in Harris’s case, and through import tariffs in Trump’s. However, it’s widely doubted that tariff revenue could offset lost tax income, particularly as fiscal deficits and interest costs grow.

Energy policy is another area where the two candidates diverge significantly, with implications for the ongoing battle between fossil fuels and renewables. Regardless of the election outcome, US electricity demand is expected to rise, driven in part by the energy-intensive needs of data

centres and AI applications. Republicans, led by Trump, support fossil fuels and have pledged to ‘drill and drill.’ Democrats, on the other hand, are committed to scaling up solar, wind, and geothermal projects, with election results likely to influence the pace of the US energy transition and its impact on global energy markets.

Notably, the prices of industrial metals are fluctuating in response to changing electoral probabilities, as measured by voter polls. Meeting growing energy demands with

Figure 1

Figure 2

renewable sources would require more extensive upgrades to the power grid, involving greater use of metals like copper and aluminium, than would fossil fuel-based solutions.

The outcome of the election is also expected to have a marked effect on US immigration policy. Trump and Harris represent sharply different approaches. Trump has proposed ending birthright

citizenship for children of undocumented immigrants and hinted at the forced deportation of illegal immigrants—measures that legal experts argue would be difficult to implement. If Trump wins, expect immigration to decrease, as it did during his first term from 2016 to 2020.

In contrast, Harris supports policies that provide pathways to citizenship for undocumented

immigrants, especially for children. While both candidates advocate for some level of restriction on illegal immigration, Trump’s approach is likely to be more aggressive. Immigration has played an important role in the US labour market; without recent immigration levels, the US would not have outperformed many advanced economies over the past two years. According to the Federal Reserve Bank of Dallas, increased labour supply and demand from immigrants boosted GDP growth. The rise in the foreignborn population has played a key role in the US economy, as illustrated in a recent report.

For the rest of the world, the differences between the candidates’ trade, tax, energy, and immigration policies carry significant implications. The world is closely monitoring the US electoral process, recognising its potential to influence global economic stability. Those who advocate for a transition to renewable energy and view trade as a positive-sum game may have already chosen their preferred outcome. i

Originally published at Policy Center for the New South.

ABOUT THE AUTHOR

Otaviano Canuto, based in Washington, D.C, is a former vice president and a former executive director at the World Bank, a former executive director at the International Monetary Fund, and a former vice president at the InterAmerican Development Bank. He is also a former deputy minister for international affairs at Brazil’s Ministry of Finance and a former professor of economics at the University of São Paulo and the University of Campinas, Brazil. Currently, he is a senior fellow at the Policy Center for the New South, a professorial lecturer of international affairs at the Elliott School of International Affairs - George Washington University, a nonresident senior fellow at Brookings Institution, a professor affiliate at UM6P, and principal at Center for Macroeconomics and Development. Otaviano has been a regular columnist for CFI.co for the past 13 years. X: @ocanuto

Figure 3

Figure 4

> Paolo Sironi:

Mind the Gap Between Small-Medium Businesses and Their Banks

Financial services are adapting to better serve SMEs, but a gap remains between what banks offer and what these businesses truly need.

Financial services are particularly susceptible to fluctuations in macroeconomic conditions, as starkly illustrated by the 2008 financial crisis in which interest rates dropped sharply, affecting banks' profitability worldwide. Banks play a vital role in the economy by facilitating the efficient allocation of financial resources. However, when banks encounter difficulties, the consequences ripple throughout local and international ecosystems.

This has significant implications for small and medium-sized enterprises (SMEs), which are particularly vulnerable to economic fluctuations, funding costs, and credit availability. As the backbone of the global economy, SMEs make up 90 percent of all firms globally, employ approximately 70 percent of the world’s workforce, and contribute about 50 percent to global GDP. Despite their pivotal role, these enterprises are often overlooked by banks, which can be discouraged by the substantial costs involved.

The Organisation for Economic Co-operation and Development (OECD) estimates that SMEs pay a significant risk premium relative to larger corporates when borrowing from financial institutions—up to 300 basis points in major advanced economies and 1,000 basis points in emerging markets. This is because of the higher costs required to serve SMEs, including the manual processes needed to collect and aggregate information on SME financials and economic situations. The lack of standard data also makes it harder to calibrate risk management models, forcing banks to charge a higher premium.

Today, banks are uncovering new opportunities to improve their services by leveraging data and AI to compete in SME markets. However, there remains a gap between what bankers perceive as competitive value and what SMEs truly need. Recent research by the IBM Institute for Business Value highlights this discrepancy, based on a global survey of nearly 700 banking executives and more than 1,200 SME owners.

BANKS AS CENTRAL ACTORS IN SME ECOSYSTEMS

The research reveals an interesting disparity between the perspectives of bankers and SMEs

when it comes to choosing a bank. SMEs expect bankers to understand their unique business needs, offer tailored solutions, and facilitate

networking with business partners and clients. In contrast, bankers tend to focus on the basics, such as easy-to-use apps, dedicated banking

Paolo is the global research leader in Banking and Financial Markets at IBM, Institute of Business Value. IBV is the thought leadership centre of IBM. by Paolo Sironi

Figure 1: SMEs prefer banks that demonstrate deeper understanding of their sector and business ecosystems.

Figure 2: Bankers look inward, underestimating the SME need for fast money and expert advice to grow their businesses.

managers, and branch proximity. However, these foundational services alone are no longer enough. Banks need to be embedded in the business communities in which SMEs operate.

Geographical nuances also play a role. For example, SMEs in the UK still cite branch proximity as a top priority, even as many bank branches have closed due to digital advancements and industry consolidation. SMEs in India, on the other hand, highly value mobile apps as the government has accelerated digital adoption across society. While a full return to branch expansion is unlikely, a blend of branch services, human relationships, and enhanced digital access is emerging to meet SMEs’ diverse needs.

BANKS AS EXPERT ADVISORS FOR GROWTH

When it comes to the banking services that can facilitate growth, SME owners and

managers emphasise the importance of expert support in planning for expansion, backed by market and economic analysis. In the US, key priorities include guidance for credit scoring, flexible funding options, and expert support in planning. SMEs recognise the role of banking stewardship and are looking for trusted advisors to help navigate business complexities. Fast access to funds also ranks high, as SMEs need to minimise bureaucratic hurdles and save time.

Nearly 60 percent of SMEs say they rely on their banker’s support and online searches when making important financial decisions, with only 23 percent relying solely on internal expertise. As new fintech competitors engage digitally, financial institutions can differentiate by empowering both clients and relationship managers through a combination of human and digital advice.

BANKS AS PLATFORMS BEYOND BANKING

In pursuit of business efficiency, SMEs place a high value on instant payments and digital access to both banking and non-banking services. Comprehensive super apps have broad appeal to SMEs not just in emerging markets but also in EU countries. These centralised platforms offer a range of benefits, including data-driven insights and cash flow forecasts.

By integrating banking and non-banking services into a single platform, banks can help SMEs simplify administrative tasks, enabling them to focus on strategic growth, innovation, and competitiveness. This ecosystem approach fosters long-term relationships, allowing banks to become key enablers of SME success.

Scaling AI across the enterprise requires both strong technical foundations and governance. Effective AI governance guides banks as they innovate and apply use cases responsibly.

THE VALUE OF TIME

As banks redefine strategies to compete in SME markets, one consistent factor emerges: time. For SMEs, time is money. Banks can use data and AI to help clients save time when accessing financial services and beyond. This added value strengthens client trust and contributes to the global economy's overall growth. i

For more insights, explore the IBM Institute for Business Value’s research: Banking for Small and Medium Enterprises – Serving the World EconomywithDataandAI.ibm.co/sme-banking

ABOUT THE AUTHOR

Paolo Sironi is the global research leader in banking at IBM, the Institute for Business Value, and he is author of business literature. His latest Banks and Fintech on Platform Economies has been Amazon bestseller in banking books worldwide. relinks.me/1119756979

Figure 3: SMEs recognise the value of integrated ecosystem platforms with banking and non-banking services.

Author: Paolo Sironi

Nouriel Roubini:

Israel and Iran Are Likely to Escalate

The conventional wisdom following Israel’s recent strikes on Iranian military facilities in retaliation for Iran’s ballistic missile attack on Israel is that the risk of further escalation has been contained. Initial statements from the Islamic Republic’s supreme leader suggested that Iran may not respond further, and financial markets seemed to agree, with oil prices falling 5% immediately after the Israeli strikes (even

if they rose again somewhat following new bellicose statements by some Iranian military commanders).

But this conventional wisdom is likely wrong. Israel’s assessment of the threat posed by Iran has shifted dramatically in the last few months. It is not just Prime Minister Binyamin Netanyahu and his right-wing allies’ views that have hardened; key leaders of the center and center-

left opposition – such as Benny Gantz and Yair Lapid – also argue that Israel should go further than it did with its recent strikes.

Whether or not one agrees with Israel’s assessment, there is now a consensus there that the Iranian regime represents an immediate, clear, and present danger. With Iranian proxies – Hamas, Hezbollah, the Houthis, and Shia militias in Iraq and Syria – continuing to attack

Israel, Israeli leaders have concluded that they must address the problem at its source. That could mean targeting Iranian nuclear facilities and eliminating the regime’s top military and political leaders, as Israel has already done vis-à-vis Hamas and Hezbollah. By eliminating Hezbollah’s top leadership and destroying a lot of its offensive capabilities, the Israelis have significantly eroded the deterrent leverage that Iran had over them.

Owing to this radical change in the relative balance of power, Iran has only one effective option left to deter Israel now that even its offensive missiles and other weapons have failed to cause meaningful damage: a dash to develop its nuclear weapons capability. But since Israel regards a nuclear-armed Iran as an existential threat, it would have no other option than to attack Iranian nuclear facilities (as well as the top Iranian leadership) before Iran builds a viable device.

Additional Israeli airstrikes are highly likely regardless of how much restraint Iran shows. While a victory for Donald Trump in the US presidential election may give Israel a clearer green light to go after Iran, a win for Kamala Harris may not be able to stop Israel from addressing what it perceives as an existential threat.

If Israel does start incrementally escalating its attacks on Iran, possibly following new Iranian attacks against Israel, any US administration would inevitably continue to support it, either directly or indirectly. Whether Israel has the capabilities to destroy most of Iran’s nuclear program or precipitate regime change in Iran is irrelevant; even limited damage to Iran’s nuclear facilities could set back its nuclear ambitions by a few years and establish the deterrence that Israel wants.

The likelihood of escalation in the coming weeks and months means that there will be economic and financial risks to manage. A large-enough Israeli strike on Iran could severely disrupt energy production and exports from the Gulf. If Iran gets desperate, it could try to mine the Gulf and block the Strait of Hormuz, while also striking Saudi oil facilities. In this scenario, the world would experience stagflationary shocks similar to those that followed the 1973 Yom Kippur War and the 1979 Iranian revolution.

Oil-price spikes would be a disaster for the global economy and the welfare of billions of people, and policymakers should be thinking about measures to soften the blow. It would help if a major conflict were as brief as possible. Israel would need to strike Iran extremely hard and with precision, rather than over the course of many months. Maritime minesweepers (of the kind that Japan operates) would need to be rapidly deployed to clear the Gulf as fast as possible.

Moreover, the United States would need to provide Saudi Arabia with advanced defense technologies – like additional Patriot antimissile systems – to minimise the risk of Iran destroying Saudi oil production and delivery facilities. And the Kingdom must massively increase its oil production and exports of its excess capacity to

reduce any potential global price spike, while the US and other powers should use their strategic oil reserves to dampen the impact further.

Governments in advanced economies and emerging markets can also introduce temporary fiscal subsidies for energy consumers – like those that were implemented following the price spike after Russia’s invasion of Ukraine in 2022. And central banks can respond to any stagflationary shock by holding policy rates steady or even reducing them. With inflation expectations well anchored (unlike in the 1970s), central banks must not overreact by tightening in response to a shock that should prove temporary (lasting a couple of months or so).

Of course, since a full-scale Israeli attack on Iran would be highly risky, a Harris administration would probably strongly advise against it. In addition to the global economic and financial fallout, a failure to destroy Iran’s nuclear facilities would only reinforce the regime’s decision to try to develop a weapon.

Success, however, could yield considerable dividends. The Iranian regime – a longstanding source of major instability in the Middle East – would be severely weakened; and if Iran is severely weakened, its proxies across the region will be, too. Indeed, one cannot rule out a grassroots revolution in Iran following largescale Israeli attacks. The regime is already weak, unpopular, and resented by most Iranians. If it falls, that could improve the conditions for achieving a ceasefire in Gaza, Israeli-Saudi normalisation, and eventually renewed talks toward a two-state solution for Israel-Palestine.

So, an Israeli attack against Iran is a high-risk, high-reward strategy that could lead either to a global economic disaster or to a reshaping of the Middle East for the better. That, at any rate, is how the Israelis see things, and further Iranian provocations against Israel are likely. Regardless of whether one agrees with their assessment, an escalation of the conflict is highly likely. i

ABOUT THE AUTHOR

Nouriel Roubini, Professor Emeritus of Economics at New York University’s Stern School of Business, is Chief Economist at Atlas Capital Team, CEO of Roubini Macro Associates, CoFounder of TheBoomBust.com, and author of the forthcoming MegaThreats:TenDangerousTrends ThatImperilOurFuture, and How to Survive Them (Little, Brown and Company, October 2022). He is a former senior economist for international affairs in the White House’s Council of Economic Advisers during the Clinton Administration and has worked for the International Monetary Fund, the US Federal Reserve, and the World Bank. His website is NourielRoubini.com, and he is the host of NourielToday.com.

Gordon Brown & Mohamed A El-Erian: Toward a Fifth World Order

The Bretton Woods institutions – the International Monetary Fund and the World Bank – are now 80 years old. But they are as under-resourced and poorly supported by national governments as at any time in their history. Their predicament is perhaps the clearest sign that economic and financial multilateralism is fragmenting along with the global economy. Worse, this fragmentation comes at a time of rising international tensions, financial fragility,

sputtering growth, rising poverty, and mounting reconstruction bills in Gaza, Lebanon, Ukraine, and elsewhere.

Both institutions are led by individuals who grasp the urgent need for reform to meet today’s challenges. Yet they lack sufficient support from their political masters: the largest share-holding countries whose votes are crucial for reform. To overcome the longstanding international coordination problems that have undermined

reform efforts, we need a revamped G20 to take the lead. With its current chair, Brazil, it is wellplaced to make significant progress.

THE COSTS OF UNDER-INVESTMENT

Financial firepower is of course only one measure of the effectiveness of our multinational institutions, but it is an important one given the world we live in. The resources available to the IMF represent less than 1% (specifically 0.85%) of the global economy.

Yet, as the lender of last resort and a financial safety net for the world, it is expected to deal with the problems of 191 member countries, as well as joining the global response to “nontraditional” and “new” issues such as climate change, gender disparities, and inequality.

Such under-funding contradicts the intentions of the IMF’s founders, led by the United Kingdom and the United States. At its creation, the Fund could draw on resources equal to roughly

3% of global GDP to help address a mere 44 countries’ monetary and balance-of-payments problems. Since then, IMF membership has grown fourfold, yet its resources have declined by more than two-thirds relative to GDP. This erosion is reflected in the Fund’s waning global heft and loss of capacity to solve tricky country cases.

Consider the following examples. Four decades ago, in the seminal restructuring of Mexico’s debt, the IMF promised one-third of what Mexico needed, on the expectation that commercial creditors would contribute the remainder. That financial capability then allowed it to press the private sector to accept a solution that traded off some of the creditors’ contractual claims on Mexico for an improved outlook for financial viability.

By contrast, after Zambia defaulted in 2020, the IMF provided it with less than 10% of its financing needs. Despite such support, Zambia has struggled through four years of negotiations with creditors to finalize restructuring agreements. While part of the challenge reflects the changing composition of both private and public creditors, much of it also stems from the diminished effectiveness of the Fund’s “carrot and stick” approach.

A DANGEROUS WORLD

This is no small challenge for an institution that also plays critical surveillance and technical assistance roles, serving as the anchor of the international financial safety net (alongside more narrowly focused bilateral swap lines and ad hoc regional pooling arrangements). As we detailed in Permacrisis (co-authored with Michael Spence and Reid Lidow), there are reasons to worry that the kind of shocks we have been experiencing (from COVID-19 to the Ukraine and Gaza wars) will become even more frequent and violent in the years ahead, not least because of the climate challenge. The disturbing inadequacy of today’s safety nets, especially for the most vulnerable countries and segments of society, is proving to be an additional source of fragility and instability.

Despite these rising challenges, the IMF’s resources remain below historical levels, and the most recent quota review failed to produce a net increase in its lending capacity. In fact, between March 2020 and March 2023, the IMF committed $191 billion (and disbursed less than $75 billion) of its trillion-dollar resource base.

The Fund’s surveillance role also faces major challenges. Framed as a crisis-prevention tool for both individual countries and the overall system, IMF surveillance has, over decades, failed to predict and correctly frame economic shocks. Admittedly, national policymakers have failed, too. Some failures are understandable,

as in the case of the pandemic. But others, including the supply-chain disruptions and subsequent surge in inflation, could have been foreseen and subjected to better analysis. Such slippages support the case for new investments in a more effective system of surveillance.

The World Bank is even less adequately resourced for the additional climate responsibilities it has been given. In a report commissioned by the Indian G20 presidency last year, co-chairs Lawrence H. Summers and N.K. Singh argued that multilateral development banks (MDBs) need to triple their lending by 2030, when it should be around $400 billion annually. Yet allocations to lowerand middle-income countries in 2023 were equivalent to just 0.07% of global GDP. The $73 billion earmarked for the World Bank in the 2023 fiscal year represented the smallest commitment to development in the institution’s existence.

THE GREAT UNRAVELING

What ails the IMF and the World Bank is not limited to these two institutions. We are witnessing a broader and increasingly worrisome breakdown in multilateralism – and this at a time when the world’s common problems can be solved only through coordination and common action.

Today’s MDBs, which include the regional development banks, provide loans equivalent to just 0.5% of developing countries’ gross national income, down from a peak of 0.7% in the 1990s. Equally, the World Trade Organization struggles with an overly legalistic judge-based rulebook that was imposed on it at the height of neoliberalism in the 1990s. Its effectiveness has always hinged on negotiation, conciliation, and arbitration, but these approaches have taken a back seat to geopolitical rivalries and unilateralism in recent decades.

Then there is the World Health Organization. Though the WHO’s current replenishment target is $11 billion, only $4 billion has been guaranteed, and its annual budget is no larger than that of medium-size US hospitals. By denying the WHO the resources it needs, while at the same time asking it to cover new health concerns, including well-being as a whole, we are depriving ourselves of the benefits of a global institution that finds it difficult to finance even its most basic tasks.

Finally, the creation of the G20 was a welcome response to the realization that the G7 no longer represented the face of global economic influence and power. By bringing together countries that account for around 80% of world GDP, the G20 had the best chance of helping us prevent or manage systemic crises like the one in 2008-10.

Yet despite its obvious potential, the G20 has operated without a structure to ensure continuity and effectiveness. And because its members include Russia and China, the US still prefers to work through the G7, which Jake Sullivan, the current national security adviser, sees as “the steering committee of the free world,” even though G7 countries now represent only 43% of world GDP.

THE MULTILATERAL WAY OR THE HIGHWAY

A sweeping approach to reforming the world’s multilateral institutions – often presented under the banner of “Bretton Woods 2.0” – is unlikely to get off the ground. But incremental progress is possible. Initiative by initiative, it could develop into a critical mass that would be welfare-enhancing for many, if not most, countries and people.

The WTO, for example, should focus on leveraging the undeniable skills of its current director-general, Ngozi Okonjo-Iweala, to solve trade disputes through conciliation, arbitration, and negotiation. That would mark a move away from its overly legalistic, and now broken, judge-based appeal system.

Similarly, the IMF, led by an equally charismatic managing director, can enhance its contributions to crisis prevention and resolution by leaning into its role as a global early-warning system. That also means responding to any future crisis with more financial firepower and by mobilizing lending capacity to enhance resilience against economic shocks, to negotiate a much-improved sovereign-debt restructuring mechanism, and thus to create a more comprehensive global financial safety net with limited conditionality in situations of large exogenous shocks.

While high-income countries have borrowing capacity and reserves to weather most shocks, some emerging markets do not, and low-income countries are even more exposed, given their limited reserves and high vulnerability to losing access to financial markets. Faced with the threat of sovereign defaults and a lost decade of development, too many indebted countries have sought alternative ways to avoid what they view as overly harsh conditions imposed by multilateral lenders. But to avoid defaulting, many governments have reallocated their health and education spending. Tragically, 3.3 billion people now live in countries that spend more on interest payments than on these two basic services.

The Bretton Woods institutions also need to support developing countries’ urgent climatemitigation and adaptation needs. Failure to do so would not only jeopardize tens of millions of people’s well-being; it also would have negative cross-border spillovers, including through migration pressures. Both organizations have taken some steps to meet developing countries’ (excluding China) need for $1 trillion of annual

external funding by 2030. For example, the World Bank has arranged for “catastrophe bonds” to assist countries devastated by the increasing number of natural disasters, and the IMF has introduced a Resilience and Sustainability Trust as a lending window that is resourced through voluntary reallocations of Special Drawing Rights (SDRs, the IMF’s reserve asset). But these interventions are not enough.

To be sure, the World Bank now directs 41% of its lending to climate-related projects, and its new mission statement refers to “a livable planet.” But without a significant increase in its overall resources, this new focus on climate change could come at the expense of investments in human capital and its traditional development work, unless wealthy countries put up more money. There are no shortcuts.

The key to revitalizing the world’s multilateral institutions is to reform their governance to reflect the enormous shifts in the configuration of the global economy over the past few decades. The shareholding structure of the IMF and the World Bank, and the outmoded process of allocating top jobs according to nationality, are no longer in step with current realities.

Even today, 59.1% of voting shares in the IMF are held by countries representing just 13.7% of the world’s population. India and China are the world’s two most systemically important and influential emerging economies, yet their combined share is only 9%. Without a change here, an institution that is supposed to address the world’s biggest economic and financial problems will face growing doubts about its legitimacy, fairness, and effectiveness by most of the Global South.

ELEPHANTS IN THE ROOM

Inadequate governance is not the only legacy issue frustrating progress. More needs to be done, and quickly, to deal with excessive debt and debt-service costs in the 79 low- and middle-income countries that are deemed to be in debt distress or at high risk of it. The situation demands a plan for comprehensive, sustainable, and incentive-aligned debt relief, including through re-profiling existing loans, debt swaps, and credit guarantees.

First, IMF member states should strengthen the Fund’s capacity to provide otherwise wellmanaged debt-distressed countries regular annual allocations of its “in-house” financial instrument. Although $650 billion in SDRs were allocated in 2021, only $21 billion went to the lowest-income countries that were most in need of help. The rules for SDR allocations need to be fundamentally revised, and redistribution made more automatic, if this channel is to be used more effectively to counter future systemic shocks.

Second, making the Common Framework for Debt Treatments work better will require closer cooperation with China’s government and private creditors. Both carrots and sticks need to be revamped. The alternative of protracted negotiations, side deals, and incomplete restructuring often produces only limited benefits, and it is open to abuse. In addition to delaying comprehensive solutions, such temporary fixes can make the next round of restructurings even more complicated.

Third, the IMF needs to address the perceived lack of fairness in the conditions that it requires poorer countries to meet when seeking relief. Fortunately, the managing director is clearly aware of the need to lower the punitive interest rates charged to middle-income countries. In 2020, ten countries faced surcharges to the IMF, yet by 2023, that figure had more than doubled, reaching 22, owing to the impact of the pandemic, the conflict in Ukraine, and rising interest rates. On top of that, the IMF’s basic lending rate soared, from below 1% to nearly 5%, pushing the overall rate for countries incurring surcharges as high as 7.8%. The IMF’s recently launched review of its surcharge policy now provides a platform for changes that would not undermine its preferred-creditor status.

Finally, as a preventive measure, governments need to come together to establish an equitable global financial safety net. As Masood Ahmed, president emeritus of the Center for Global Development, has argued, there should be “a separate identifiable IMF facility that would be triggered by a defined systemic shock and provide resources to all emerging markets and low-income countries in good standing” without the penalties of excessively priced surcharges.

As for the World Bank, its dynamic president, Ajay Banga, has started his term with a determination to reform and is on the right track in launching a Livable Planet Fund focused on human capital and environmental stewardship. But this initiative needs more resources, and Banga has justifiably called for the largest-ever replenishment of the International Development Association, which provides concessional loans and grants to the poorest countries.

Given the rising number of global poor – now at 700 million – we cannot settle for less. The Summers/Singh G20 report not only calls on MDBs to provide an additional $260 billion per year but also urges expanded use of innovative financial tools such as guarantees, risk-mitigation instruments, and hybrid capital.

REFORM OR DECAY

Given that the G7 cannot, in fact, be the permanent steering committee for a world economy in which its members have a minority share, the G20 should become what it was intended to be: the premier forum for global economic cooperation, including when it comes

to promoting the reform of the multilateral institutions. But that will require a more representative system to offer smaller countries a role in a constituency-based framework, as well as a professional secretariat to ensure continuity from year to year.

The Brazilian G20 presidency has already laid out three key priorities for the November meeting: fighting hunger, poverty, and inequality; promoting sustainable development; and pursuing global governance reform. All three goals could pave the way for a new decade of improved cooperation, with the third in particular offering a welcome opportunity to overcome the inter-country coordination problems that have frustrated the necessary changes at the IMF and World Bank. We know what needs to happen and why. If well managed, this G20 could provide the soughtafter “how.”

Massive revisions to the international system and its institutions generally come about only after a complete breakdown of the current order. Hence, the post-1814 balance of power emerged after Napoleon’s defeat; the post1918 Versailles system arose after five dynastic empires collapsed and shattered into dozens of new nation-states; the post-1945 architecture followed the defeat of Germany, Italy, and Japan; and what US President George H.W. Bush called a liberal “new world order” had to wait until the collapse of the Soviet Union and the Warsaw Pact.

The urgent challenge today is to achieve the transition to a fifth world order without weathering a damaging breakdown. To be legitimate, such an order must account for the ongoing global realignment of economic and political power, especially the ambitions of the Global South. And to be effective, it must be not only stable and fair, but also sustainable and open to effective collective action.

Two paths are open to us. One leads toward ever more global fragmentation and deepening crises, while the other offers a chance to pursue both individual and shared prosperity through joint solutions to common problems. The choice seems crystal clear. i

ABOUT THE AUTHORS

Gordon Brown, a former prime minister of the United Kingdom, is UN Special Envoy for Global Education and Chair of Education Cannot Wait.

Mohamed A El-Erian, President of Queens’ College at the University of Cambridge, is a professor at the Wharton School of the University of Pennsylvania and the author of The Only Game in Town: Central Banks, Instability, and Avoiding the Next Collapse (Random House, 2016) and a co-author (with Gordon Brown, Michael Spence, and Reid Lidow) of Permacrisis: A Plan to Fix a Fractured World (Simon & Schuster, 2023).

JOHAN THIJS:

STEERING KBC TO CONTINUED SUCCESS

Johan Thijs, CEO of KBC Group, is one of Europe’s most successful corporate leaders. Under his guidance, the group has flourished as a top player in banking and insurance, all while remaining firmly rooted in his values-driven leadership.

Thijs has long been regarded as a transformative leader. Since taking the helm in 2012, he has guided KBC through an era of unprecedented change and challenge in the banking and insurance sectors, all while maintaining the company’s steady growth trajectory. Thijs is not just a leader focused on financials and performance; his leadership is rooted in a deep sense of responsibility towards customers, employees, and the wider community. He has been nominated three times by Harvard Business Review in its survey of the world’s top ten CEOs.

This journey to the leadership of one of Europe’s most prestigious financial institutions began with a solid academic foundation. Thijs earned a degree in applied mathematics and actuarial sciences from the University of Leuven, giving him a unique analytical perspective that would later influence his approach to management. His early career at KBC began in the actuarial department of ABB Insurance (now KBC Insurance), where his mathematical skills were put to good use, but it didn’t take long for his leadership potential to be noticed. He completed the Senior Executive Programme at London Business School in 2008.

“Innovation without values is meaningless.”

Thijs’s rise through the ranks at KBC was rapid. His early experience in the technical aspects of insurance and risk management gave him a firm understanding of the inner workings of the business. But it was his ability to think strategically and adapt to changing market dynamics that propelled him into senior leadership roles within KBC Insurance and later on as CEO of KBC Belgium. Before being appointed as CEO of KBC Group, Thijs was instrumental in expanding KBC’s business, turning it into a major contributor to the Group’s overall success. Thijs was President of the Federation of the Belgian Financial Sector (Febelfin) for two terms from 2017 to 2023.

DRIVING TRANSFORMATION

When Johan Thijs became CEO of KBC Group, the financial services industry was still reeling

from the aftermath of the global financial crisis. The European banking sector was under significant regulatory scrutiny, and institutions were facing increasing pressure to rebuild trust with their customers. Thijs saw this as an opportunity, not a hindrance. His vision for KBC Group was clear: to create a customercentric organisation that would stand out for its integrity, transparency, and innovation.

Under his leadership, KBC Group evolved from a traditional bank-insurer into a forwardthinking, digitally driven financial institution. His focus on digital transformation was evident long before it became an industry buzzword. Early on, he recognised that the future of banking would be shaped by technology, and he made it a priority for KBC to stay ahead of the curve. From mobile banking apps to AI-driven customer service, KBC’s digital offerings grew exponentially, helping the group cement its position as a leader in innovation.

But digital transformation at KBC wasn’t just about rolling out new technology. Thijs also made it clear that any technological advancement had to align with the company’s core values—trust, transparency, and customer

satisfaction. “Technology is not a goal in itself,” Thijs has said. “It’s a tool to improve the lives of our customers and employees. We are here to serve people, not machines.”

This balanced approach has paid off. Today, KBC is recognised as one of the most digitally advanced financial institutions in Europe, consistently ranking high in customer satisfaction while maintaining strong financial performance. The company's ability to blend human connection with cutting-edge technology has become one of its defining strengths, a testament to Thijs’s leadership.

A VALUES-DRIVEN LEADER

While Johan Thijs is widely respected for his business acumen and strategic foresight, it is his values-driven leadership style that truly sets him apart. Thijs has always placed a strong emphasis on ethics and corporate responsibility, ensuring that KBC Group does not lose sight of its social obligations.

Under his guidance, KBC Group has been a frontrunner in integrating Environmental, Social, and Governance (ESG) criteria into its operations. Thijs has been vocal about the need for financial institutions to lead the charge in sustainability, not just follow trends. “As a financial institution, we have a duty to our customers and to society to invest responsibly,” Thijs has said. This philosophy is reflected in KBC’s commitment to green finance and its drive to reduce its environmental footprint.

One of Thijs’s major achievements in this area has been leadership in sustainable investment funds. KBC was one of the first financial institutions to offer sustainable investment options to retail clients, and this segment of the business has grown rapidly. His personal

commitment to sustainability extends beyond business, as Thijs is known for leading by example in both his professional and private life, consistently promoting sustainable practices within the organisation.

OPENNESS AND DIALOGUE

Despite his high-profile role, Johan Thijs remains remarkably grounded. He is known for his humility and approachability, traits that have endeared him to employees across all levels of KBC. Thijs believes strongly in fostering a culture of openness and dialogue within the company, where everyone’s voice is heard. He makes a point of staying connected to the everyday realities of the business.

“Being a leader,” Thijs maintains, “ is not just about making the right decisions, but about fostering a culture where people feel empowered to innovate, to question, and to improve.”

Away from the office, Thijs is a family man who values spending time with his wife and children. He has a passion for cycling and is often seen riding through the Belgian countryside on weekends. This love for the outdoors reflects his commitment to sustainability and balance, both in his personal life and in his leadership at KBC.

Thijs is also an avid reader. His intellectual curiosity has shaped his worldview and leadership style, encouraging him to look at the bigger picture and consider the long-term impact of his decisions.

BANKING AND BUSINESS PHILOSOPHY

At the core of Johan Thijs’s leadership philosophy is a deep understanding of the role that financial institutions play in society. For Thijs, banking is not just about profits; it’s about

creating value for customers, shareholders, and the community.

Thijs has also been clear about the need for financial institutions to adapt to the changing landscape of regulation, customer expectations, and technology. He believes that the future of banking lies in creating seamless, integrated experiences for customers that blend traditional financial services with new digital tools. However, he insists that this must be done with integrity and transparency.

“Innovation without values is meaningless,” Thijs often remarks. His commitment to ensuring that KBC’s growth is built on a foundation of trust and ethics has become a defining characteristic of his tenure as CEO.

LOOKING AHEAD

As Johan Thijs looks to the future, his vision for KBC Group remains one of steady, responsible growth. He is focused on expanding the group’s presence in its strategic core markets (Belgium and CEE), regions that offer opportunities for growth. At the same time, Thijs is committed to maintaining KBC’s leadership in digital innovation and sustainable finance.

For Thijs, the future of banking is about staying true to core values while embracing change. His ability to balance these two elements—staying grounded in ethics while pushing for innovation— has positioned KBC Group as a leader in the financial services industry, and Johan Thijs as one of Europe’s most respected CEOs.

In an industry where trust is paramount, Thijs’s steady hand and values-driven leadership ensure that KBC Group remains at the forefront of banking and insurance, not just as a financial powerhouse, but as a company that stands for something greater. i

CEO: Johan Thijs

KBC Group: A Digital-First Pioneer with an Eye on Sustainability and Growth

KBC Group has positioned itself as a leader in the financial services sector by combining its digital-first with a human touch approach, sustainable strategies, and wide geographic reach. With the Pearl+ strategy at its core and an innovative bancassurance model, KBC continues to drive exceptional financial performance, cementing its reputation as one of the strongest and well-capitalised players in the market.

A LEADER IN INNOVATION AND SUSTAINABILITY

KBC Group, one of Europe’s leading financial institutions, is renowned for its cutting-edge approach to banking and insurance, backed by its solid financial performance and a well-earned reputation for innovation. The bank has adopted a digital-first with a human touch, and datadriven strategy that aligns seamlessly with its Environmental, Social, and Governance (ESG) commitments. At the heart of KBC’s business approach lies its Pearl+ strategy, which is a driving force behind the bank’s transformation in a rapidly evolving financial landscape.

With an expansive geographic footprint and a unique bancassurance model, KBC is perfectly positioned to maintain its market leadership across Europe and beyond. The group is an outstanding institution that stands out on the global stage.

KATE AND THE DATA-DRIVEN REVOLUTION

KBC has long been a pioneer in digital banking, and this drive has only accelerated under the leadership of Johan Thijs. The bank’s commitment to a digital-first strategy is exemplified by the creation of "Kate," a virtual assistant that epitomises KBC’s approach to integrating technology with customer service. Launched as part of the KBC mobile app, Kate offers a seamless, personalised experience for users, providing tailored financial insights and services at their fingertips.

Kate is not just an AI tool designed to improve customer convenience. She represents KBC’s larger ambition to be a data-driven institution. By leveraging advanced data analytics, KBC can offer customers personalised solutions that anticipate their needs, streamline transactions, and provide guidance on financial products. This approach has led to significant operational efficiencies, reducing costs while improving customer satisfaction.

"Kate is not just an AI tool designed to improve customer convenience. She represents KBC’s larger ambition to be a data-driven institution."

KBC’s digital-first with a human touch model is more than just customer-facing technology—it is embedded into every layer of the organisation. By using data analytics to refine internal processes, from risk management to decision-making, KBC is able to operate with agility in a fast-changing financial environment. This focus on digital transformation is not only improving KBC’s competitive advantage but also reshaping the way banking and insurance services are delivered to customers across its markets.

In October 2024, SIA Partners named KBC Mobile as “Best Banking App in the World.” SIA concluded that, “The app surprises clients with its wide range of functionalities and the virtual assistance provided by Kate.” CEO Thijs credits this top ranking to years of hard work and a solid company culture: “This award not only puts Belgium in the spotlight, it also acknowledges the value of mobile apps we offer in all our core markets. Our digital-first with a human touch model has once again demonstrated its added value and illustrates the innovative strength we can build on as a group.”

PEARL+ STRATEGY: THE HEART OF KBC’S BUSINESS MODEL

Business strategy at KBC Group is based on a corporate culture that emphasises cooperation. The culture is explained by the acronym PEARL+

• Performance, delivering what has been promised

• Empowerment, encouraging the talents of all team members

• Accountability, taking personal responsibility for clients, colleagues, shareholders and communities

• Responsiveness, reacting promptly and sympathetically to suggestions, influences, appeals and efforts of colleagues, management and clients

• Local Embeddedness, embracing team diversity and clients in the various core markets, and acting accordingly

• PLUS The extra dimension implied by “+” represents an increasing focus on joint development of efficient solutions, initiatives, and smart ideas at all levels throughout the group

LEADING THE WAY IN SUSTAINABILITY

KBC Group has firmly integrated Environmental, Social, and Governance (ESG) considerations into its corporate strategy. Recognising that the financial sector plays a pivotal role in addressing global challenges like climate change, KBC has committed to embedding sustainability across its operations.

A key pillar of KBC’s ESG strategy is its commitment to responsible lending and investment practices. The bank has set ambitious targets to reduce its carbon footprint and has introduced a range of sustainable financial products. This includes green bonds, which have proven highly popular with both retail and institutional investors. KBC’s efforts to transition towards a low-carbon economy have not gone unnoticed, and the bank has been recognised globally for its ESG performance.

KBC’s sustainable investment funds, which are designed for clients looking to align their portfolios with ethical and environmental principles, have seen strong demand. These funds exclude sectors such as fossil fuels and focus on industries that contribute to the Sustainable Development Goals (SDGs), ensuring that clients’ investments contribute to a more sustainable future.

The bank’s commitment to social responsibility extends beyond environmental issues. KBC is actively involved in financial inclusion projects that aim to provide accessible banking services to underserved communities. Its governance practices are equally robust, with a strong focus on transparency, diversity, and ethical business conduct.

LEVERAGING A BROAD EUROPEAN FOOTPRINT

KBC’s strength lies not only in its innovative business model but also in its geographic reach. This wide geographic spread gives KBC the ability to diversify its revenue streams and tap into growth opportunities across different economies.

In Belgium, KBC continues to dominate the market, holding a leading position in retail, corporate, private banking and insurance. Its strong presence in Central and Eastern Europe (CEE) has also contributed to its growth. The CEE region has become a critical driver for KBC’s expansion, offering a favourable economic environment and a growing middle class eager for financial services.

The success of KBC’s bancassurance model is particularly evident in these markets, where clients benefit from a one-stop-shop for their financial needs. Whether it’s managing savings and investments, protecting assets with insurance, or securing loans, KBC’s integrated services provide customers with convenience and confidence.

KBC’S BANCASSURANCE ADVANTAGE

A key differentiator for KBC is its bancassurance model. This allows KBC to provide holistic financial solutions, making it easier for customers to manage their financial lives in one place. By offering a full suite of services, KBC is able to deepen relationships with clients, increase cross-selling opportunities, and deliver more comprehensive support.

The bancassurance model also provides operational synergies that enhance efficiency and profitability. By combining the resources of the banking and insurance divisions, KBC can achieve cost savings while still offering a wide range of products. This integration is particularly important in today’s competitive financial

landscape, where customers increasingly demand seamless, digital solutions.

Significantly, this unique bancassurance model and the resulting diversified revenue structure means that KBC is more resistant to net interest income fluctuations than many other banks. Thanks to KBC Insurance and KBC Asset Management, the fee and commission income is less dependent on or sensitive to movements in the global interest rate environment.

KBC’s bancassurance model is a cornerstone of its success in its core markets, where it has built a reputation for providing both financial security and innovative solutions. This sets KBC apart from competitors and helps it maintain a leading position in Europe.

A MARKET LEADER “PRICED TO PERFECTION”

KBC’s financial performance speaks for itself. The bank has consistently delivered strong results, driven by its strategic focus on innovation, customer satisfaction, and operational efficiency. KBC’s profitability has been bolstered by its focus on core markets, where it maintains a strong market share and enjoys high levels of customer loyalty.

KBC’s stock is frequently described as “priced to perfection,” reflecting its strong reputation in the market. Investors are attracted to the bank’s solid fundamentals, reliable dividend payouts, and impressive return on equity. Despite the challenges posed by the global pandemic, KBC has demonstrated resilience and adaptability,

continuing to deliver excellent financial performance.

The bank’s robust balance sheet and prudent risk management strategies have ensured that it remains well even in periods of market volatility. KBC’s ability to navigate economic uncertainties while still achieving strong growth underscores the effectiveness of its Pearl+ values, its corporate culture and its leadership in the industry.

THE FUTURE OF KBC

As KBC looks to the future, the bank is focused on maintaining its leadership in digital innovation, sustainability, and market growth. With its digital-first with a human touch approach, exemplified by Kate and the ongoing transformation of its services, KBC is well-positioned to meet the evolving needs of customers.

The Pearl+ strategy will continue to drive KBC’s operational excellence and financial performance, ensuring that the bank remains at the forefront of the industry. Meanwhile, its commitment to ESG principles will keep it aligned with the growing demand for responsible and sustainable financial services.

KBC’s bancassurance model, wide geographic spread, and strong financial position give it a unique advantage in the competitive world of banking and insurance. As the bank continues to innovate and grow, it is clear that KBC is setting the standard for the future of the industry. i

Johan Thijs and KBC’s Transformative Support of Werchter Boutique Festival

Under the leadership of CEO Johan Thijs, KBC Group has been a steadfast supporter of Belgium’s Werchter Boutique Festival, blending meaningful sponsorship with digital innovation and employee engagement.

A LEGACY OF MEANINGFUL SPONSORSHIP

KBC’s involvement with the Werchter Boutique Festival extends beyond typical sponsorship. As a long-time partner, KBC has consistently prioritised adding value to the festival experience, enhancing the event with practical items and creating dedicated spaces for attendees. Over the years, KBC has distributed sun hats, ponchos, and provided sunscreen dispensers, underscoring its commitment to supporting festivalgoers in a meaningful way.

KBC introduced the “KluBC” area within the festival grounds—a vibrant space featuring DJ sets, small performances, and interactive activities that add an extra dimension to the event. “We’re not just here to support from

“At the end of the day, it’s about creating experiences that people will remember.”

the sidelines,” Thijs says. “Werchter is about creating unforgettable experiences, and KBC is proud to play a part in that.”

A CELEBRATION OF TOGETHERNESS AFTER COVID In 2022, as the world emerged from Covid-19,

KBC welcomed the return to live events by inviting all Belgian staff to Werchter Boutique for a much-anticipated celebration. More than 10,000 KBC employees gathered in a dedicated corporate area, enjoying an electrifying performance by Belgian star Stromae.

This special event was not only a moment of reunion and celebration but also a chance to trial KBC’s digital currency, Kate Coins. Each staff member received Kate Coins in their KBC Mobile Wallet, to purchase food and drinks during the festival, providing valuable real-time insights for KBC’s tech team.

Thijs expressed his excitement about the initiative, saying, “Kate Coins gave us the

KluBC: 25th jubilee of KBC (photo taken in 2023)

opportunity to merge celebration with innovation, while sharing an incredible day with our KBC family.”

MARKING 25 YEARS OF KBC WITH MUSIC AND INNOVATION

In 2023, KBC marked its 25th anniversary of the merger of KredietBank, CERA, and ABB Insurance with another memorable gathering at Werchter Boutique. Over 12,000 KBC employees joined the celebrations, which included a private KluBC area and a thrilling performance by global icon Pink. This event underscored KBC’s journey and achievements, with Thijs recognising the role of his team in the bank’s success.

For Thijs, KBC’s support of Werchter has always been about more than corporate visibility. “At the end of the day, it’s about creating experiences that people will remember,” he said. “Music brings people together, and being part of that at Werchter is something we’re truly proud of.”

The photograph shown here of the many thousands of staff members attending Werchter 2023, is another example of top-notch technology. The special lens used allows viewers to zoom in on the faces of all colleagues pictured. The record of each face is important to the KBC family.

INNOVATING WITH KATE COINS: MERGING DIGITAL AND FESTIVAL EXPERIENCES

The introduction of Kate Coins at Werchter highlights KBC’s commitment to blending digital innovation with real-world experiences. Following the successful trial in 2022, Kate Coins are now fully integrated into KBC’s mobile banking app, offering a seamless digital payment solution. At Werchter Boutique, this feature allowed KBC staff and guests to make purchases directly from their smartphones, streamlining the festival experience and reducing wait times in the dedicated Blue Square area of Werchter Boutique.

KBC’s tech team was on-site to monitor the process, ensuring everything ran smoothly and gathering insights for future developments. “Kate Coins were more than just a payment method—they represented a new way for us to connect digitally with our customers and our team,” Thijs said.

BUILDING COMMUNITY AND CULTURAL ENGAGEMENT

Thijs’s vision for KBC’s sponsorship of Werchter is rooted in a sense of community and shared culture. “Werchter Festival is not just a concert; it’s a celebration of culture, passion, and connection,” he said. “We at KBC are proud to be a part of that.” This approach has led KBC to engage with festivalgoers in meaningful

ways, fostering a sense of belonging and shared experience.

In addition to its on-site initiatives, KBC’s involvement at Werchter Boutique aligns with the bank’s broader mission to support community engagement across Belgium. This commitment extends to local events and sustainability initiatives, as KBC continues to invest in projects that enrich the lives of Belgians.

A LASTING IMPACT ON BELGIUM’S PREMIER FESTIVAL

KBC’s support of the Werchter Boutique Festival, goes far beyond financial backing. The bank’s contributions—from the practical festival gear provided to the digital innovation with Kate Coins and interactive spaces—highlight the depth of KBC’s involvement. Each year, KBC’s role in the festival enriches the experience for attendees and adds value to Belgium’s cultural landscape.

As the final chords rang out from Pink’s performance, it was clear that Werchter Boutique had once again brought people together through music. For KBC, and for Thijs in particular, being a part of this iconic event is about more than sponsorship—it’s about creating lasting memories. With plans to continue its support, KBC remains committed to ensuring Werchter Boutique remains one of the world’s most celebrated festivals. i

Moody's Ratings: Leading in Transition Finance, and Embracing Digital Innovation

By Marina Rosemberg Managing Director and Head of

MOODY’S INVESTORS SERVICE TRANSITION TO MOODY'S RATINGS: THE BRAND EVOLUTION

In an ever-evolving financial landscape, Moody’s Investors Service has embarked on a significant rebranding journey, transitioning to Moody's Ratings. This change is more than just a new name; it represents a strategic shift to better align with its mission and the value it provides to stakeholders. The rebranding effort is designed

to reflect Moody's Ratings commitment to clarity, precision, and forward-thinking in the financial services industry in this era of exponential risk.

The decision to rebrand was driven by the need to unify Moody's Ratings identity and enhance its market presence. As Moody's Ratings, it aims to present a cohesive and modern image that resonates with customers and market

participants. This transition also underscores Moody's Ratings dedication to providing credit ratings and insightful research to the global financial markets.

The new brand identity is built on the pillars of boldness, clarity, and perceptiveness. These values are at the core of everything Moody's Ratings does, from rigorous analytical processes

Relationship Management Latin America at Moody’s Ratings

"Moody's Ratings is leveraging technologies such as Moody’s Research Assistant, a first-of-itskind search and analytical tool powered by generative artificial intelligence (GenAI), to cover its latest rating actions, credit opinions, and research reports, providing realtime answers for users."

to innovative tools. The new logo and visual identity are designed to be more dynamic and reflective of a forward-looking approach. This rebranding is not just a cosmetic change; it is a reaffirmation of Moody's Ratings commitment to excellence and its vision for the future.

With almost 30 years of experience in Latin America, Moody's Ratings is reaffirming its commitment to the region. With a new positioning, Moody’s Ratings reflects the evolution of its brand that encompasses a constant commitment to understanding customer needs in the countries and regions it operates in, for world-class service based on comprehensive assessments in an era of exponential risks.

TRANSITION FINANCE AND THE RISE OF SUSTAINABLE DEBT ISSUANCE

Transition finance is an emerging area of focus for Moody's Ratings, reflecting the growing importance of sustainable finance in addressing global environmental challenges. Transition finance refers to the financial mechanisms that support companies and industries in their journey towards more sustainable practices. This includes financing for projects that reduce carbon emissions, improve energy efficiency, and promote the use of renewable energy sources.

Moody's Ratings recognises the critical role that transition finance plays in achieving global climate goals. Recent reports highlight the increasing issuance of sustainable debt by companies in high-carbon sectors that are integral to the global economy but face significant challenges in reducing their carbon footprints. By providing transparent ratings for transition finance instruments, Moody's Ratings aims to support the development of innovative green technologies and promote sustainable economic growth.

Looking ahead, a continued rise in sustainable debt issuance is expected as more companies commit to ambitious climate targets. The development of emerging green technologies, such as carbon capture utilisation and storage (CCUS), low-carbon hydrogen, and biofuels, will be pivotal in this transition. Moody's Ratings is committed to staying at the forefront of this evolving landscape, providing insights and analysis on the complexities of transition finance.

DIGITAL FINANCE: THE FUTURE OF FINANCIAL SERVICES

Digital finance is transforming the financial services industry, and Moody's Ratings is part of this revolution. The integration of digital technologies into financial services is creating new opportunities for innovation, efficiency, and customer engagement.

Moody's Ratings has been actively involved in analysing the impact of digital finance on the global economy. Recent reports explore how emerging technologies are reshaping supply chains, enhancing connectivity, and driving innovation in capital-intensive industries. For instance, the adoption of decentralised physical infrastructure networks (DePIN) is revolutionising the way industries address demands for enhanced connectivity and innovation. These networks leverage blockchain technology to create more efficient and resilient infrastructure solutions.

The rise of AI and machine learning is also transforming the financial services industry. AI-driven analytics and predictive modelling can enhance risk assessments and decisionmaking processes. Moody's Ratings is leveraging technologies such as Moody’s Research Assistant, a first-of-its-kind search and analytical tool powered by generative artificial intelligence (GenAI), to cover its latest rating actions, credit opinions, and research reports, providing realtime answers for users. The commitment to digital innovation is reflected in ongoing efforts to integrate advanced technologies into Moody's Ratings analytical frameworks and service offerings.

Looking to the future, digital finance will continue to play a pivotal role in shaping the financial services industry. Moody's Ratings is dedicated to staying ahead of the curve, providing analysis and insights to navigate this dynamic landscape. By embracing digital finance, Moody's Ratings is not only enhancing its capabilities but also helping customers make more informed and strategic decisions. i

Author: Marina Rosemberg

Autumn 2024 Special – Game Changers: Visionaries Who Reshaped the World of Business >

Exceptional individuals who changed entire sectors, challenge traditions, and left an indelible mark.

The profiles on the following pages pay tribute to giants of the business world, driven by ambition, ingenuity, and unyielding commitment.

Singly, and together, they have altered the way we live, work, and interact with the world of business and commerce.

We take a look at their lives and legacies, and the way they transformed disciplines. From a Swedish farm, the cottonfields of the American south to the bustling streets of New York, these visionaries dared to Dream Big — and rocked the status quo. They defied expectations, overcame hurdles, and built empires that still affect our world.

Consider the tale of Ingvar Kamprad, the creator of IKEA, who democratised inexpensive, flat-pack furniture. We travel further back in time to meet one Henry Ford, the automotive pioneer who revolutionised manufacturing with his assembly line and made cars affordable to the masses.

We pay tribute to Coco Chanel, the fashion diva who emancipated women from the

drab and constricting attire of the time, and redefined elegance with timeless creations.

And there are more; lesser-known, perhaps, but equally influential. Figures like Josiah Wedgwood, the master potter who pioneered the modern trends of marketing and branding. Cornelius Vanderbilt, the shipping and railway magnate who built a transport empire that linked the burgeoning US. Madam CJ Walker, the first female self-made millionaire in America, who developed a hair-care company that inspired and empowered African American women.

These six people, from various eras and industries, share a common thread: They were all motivated by the pursuit of perfection, a willingness to upset norms, and the desire to make a positive impact on the world. Their stories demonstrate the power of human creativity, and the value of perseverance.

Join us in honouring these game-changers, whose vision and determination ignited the business world to become what it is today.

Their stories serve as reminders that — with effort, ingenuity, and self-belief — perfection can be achieved. i

COCO CHANEL

The Woman Who Redefined ‘Fashion’

Few names elicit as much admiration and reverence as that of Coco Chanel.

Born Gabrielle Bonheur Chanel in 1883, she climbed from poverty to become one of the 20th Century's most famous figures, revolutionising fashion with her simple, elegant designs — and freeing women from restrictive corsets and overly expensive gowns.

Her enduring legacy continues to influence the industry, motivating designers around the world to combine timeless style with comfort.

THE BIRTH OF A FASHION ICON

Chanel's early life was characterised by adversity and resilience. She was orphaned at an early age and spent several years in a convent, where she learnt to sew. This would serve as a foundation of her empire. In her early 20s, she began a singing career under the stage name Coco; the nickname stuck, but her true interest was in fashion.

Chanel launched her first hat shop in Paris in 1910, and she became known for modest, beautiful designs that avoided the excessive adornment typical at the period. Her jersey hats were a break from the stiff, structured styles of the day, providing ladies with more alluring and comfortable options.

This signalled the start of Coco Chanel's fashion revolution. Her designs continued to defy convention and redefine fashion. In 1926, she invented the little black dress, known today by the acronym LBD. It was a modest yet stylish garment that has become a wardrobe essential for ladies all over the world. It epitomised Chanel's idea of understated elegance, demonstrating that less can be more. The versatile piece could be worn in various ways, and it became an instant classic.

Another legendary invention, the Chanel suit, was introduced in 1925. With its boxy jacket and skirt, the suit provided women with a comfortable and fashionable addition to their wardrobes.

The Chanel suit also became a symbol of female liberation, blurring the distinctions between masculine and feminine clothing and allowing women to move freely and boldly. It was groundbreaking design that overturned traditional conceptions of femininity, paving the door for a more modern approach.

EXPANDING THE EMPIRE

Chanel's influence went beyond garments. Her famous fragrance, Chanel No. 5, was released in 1921 — and it is still one of the most recognisable and best-selling perfumes in the

world. Its distinct blend of aldehydes and floral scents encapsulated the essence of femininity. Its ingenious marketing strategy, which included endorsements from celebrities including Marilyn Monroe, cemented its place as a cultural icon. Chanel No. 5 became identified with luxury, elegance, and sophistication.

Chanel's push into accessories solidified her career. Her quilted 2.55 handbag, launched in 1955, revolutionised design with its shoulder strap, freeing hands and delivering a practical and beautiful way to carry one’s belongings. The 2.55 is still a sought-after item, demonstrating ageless design sensibility.

Coco Chanel passed away in 1971, but her legacy continues to inspire and influence the industry. Her designs combined simplicity, elegance, and

functionality, transcending fads. Her emphasis on comfort, originality, and empowerment continues to appeal to women of all ages.

Chanel was a savvy businesswoman who developed a global empire, demonstrating entrepreneurial drive and unflinching tenacity. Her tale has inspired women and reminds them that no matter what their origins or circumstances, they can do anything they set their minds to.

Coco Chanel made an immense contributions to the world of fashion and culture. Her designs continue to inspire and enchant in the 2020s. She showed the strength of creativity and an unwavering eye for flair. Her name will always be associated with elegance, sophistication, and the empowerment of women through fashion.

> HENRY FORD

The Man who Put the American World on Wheels

Henry Ford’s name is synonymous with the motor car; he kick-started — or rather crank-started — a revolution in personal mobility and freedom.

He is best known for the venerable Model T, whose mass-production had a tremendous impact on manufacturing in the early 1900s. His pursuit of efficiency and his concern for employee welfare were transformational. He changed how the American people lived, worked, and explored their country.

MECHANICAL INGENUITY

Henry Ford was born in 1863 on a Michigan farm, and took a precocious interest in things mechanical. He left the farm at age 16 to work as a machinist in Detroit, where he honed his talents and developed a passion for automobiles, a rapidly expanding industry. His early experiments with petrol engines resulted in his first production car, the oddly-named Quadricycle, in 1896.

The Ford Motor Company was officially created in 1903, with the goal of making automobiles affordable to almost everyone. His early models, while successful, were expensive and labourintensive to manufacture. Ford's dreams didn't become a reality until 1913, when the moving assembly line was introduced.

The assembly line, ironically inspired by the disassembly lines used in the meatpacking industry, transformed manufacturing. Ford reached new levels of efficiency by breaking down the complex process car production into a series of simple, repetitive steps. Each worker was assigned a specific task as the cars moved along a conveyor belt.

The impact was immediate. The time required to construct a Model T went from 12.5 hours to just 93 minutes — and the cost of production and purchase fell accordingly. This made the Model T affordable to the average American.

By 1927, more than 15 million Model Ts had been sold, demonstrating the effectiveness of Ford's innovative production techniques — and democratising car ownership.

BEYOND THE ASSEMBLY LINE

Ford's influence stretched beyond the factory floor. He was a pioneer in employee welfare, creating the $5 workday in 1914, which more than doubled the then-prevailing wage. This improved the lives of his employees, increased productivity, and decreased staff turnover.

Henry Ford was an early supporter of sustainable agriculture and renewable energy, firmly believing that industry should benefit society. He even

experimented with making car panels entirely out of agricultural plastic made from soybeans. It was a demonstration of his forward-thinking approach and early dedication to sustainability.

A COMPLEX HISTORY

Henry Ford's legacy is complicated and multidimensional. He is lauded as a visionary who transformed industry and access to personal transport, but was chastised for his anti-union stance, divisive views on race and religion, and support for authoritarian governments.

Despite the controversy, Ford's impact on the world is obvious. His production strategy inspired and revolutionised other sectors, and his emphasis on efficiency and price helped to

establish the consumer economy. The Model T, with its basic form and sturdy dependability, became a symbol of American ingenuity and development.

These were extensive and far-reaching contributions to the early 20th Century. Ford was a divisive figure, but his vision and tenacity changed the motor car from luxury item to economic need, effectively putting the world on wheels.

His imagination and practicality continue to inspire and challenge entrepreneurs of the 2020s, reminding them of the power of creativity, the value of social responsibility, and the longterm influence a single person's vision can have.

INGVAR KAMPRAD

The Man Who Furnished the World

Place bolts (C1 and C2) in holes (G and J), align panels 2 and 3, and fasten with nuts (D1 and D2). Afewsimilarmoves,andvoila!Abedsidetable!

With the initiative of flat-pack, user-assembled furniture, Sweden’s Ingvar Kamprad turned IKEA from a small mail-order firm into a global powerhouse.

His commitment to cost-effectiveness, inventive design, and a customer-first mentality transformed home furnishings, providing affordable but serviceable pieces to millions around the world.

Born in 1926 in the southern district of Småland, Kamprad showed entrepreneurial spirit from an early age. He started working while still a child, selling matches to neighbours, then expanding his micro-enterprise to include fish, Christmas decorations, and seeds. These early adventures gave him an awareness of the importance of hard work, frugality, and customer experience — the foundations of IKEA's success.

Kamprad started IKEA in 1943, when he was just 17. The company name came from his own initials, IK, and the first letter of the family farm, Elmtaryd, and the surrounding village, Agunnaryd.

Initially, IKEA sold pens, wallets, and picture frames via mail-order catalogues. Kamprad's dedication of keeping costs low and being open to questioning traditional business practices made his firm stand out. He wasn’t afraid to challenge the status quo, and his inventive approach would spark a revolution in the furniture industry.

ORIGINS OF FLAT-PACK FURNITURE

IKEA began selling furniture in the early 1950s, but it wasn't until 1956 that Kamprad came up with the flat-pack innovation. Faced with transport issues, one of his employees had the bright idea of removing a table's legs to fit it into a car. This single brainwave launched a revolution, as Kamprad recognised the potential to minimise costs, storage space, and assembly time.

The flat-pack concept, combined with Kamprad's emphasis on cost-effectiveness and innovation, fuelled expansion. The company began designing its furniture in-house, prioritising functionality, simplicity and price.

Buying materials directly from manufacturers and cutting out intermediaries helped to reduce costs, allowing IKEA to undercut its competitors. This democratisation made his elegant and practical pieces affordable to a wider audience, changing how people equipped their homes.

THE IKEA EXPERIENCE

But Kamprad's mission was just starting. He created a unique retail system that would engage and delight customers. IKEA stores, with their maze-like layouts, self-service and on-site restaurants, have become destinations in their own right. A shopping trip became a fun and interactive outing. This novel approach to retail turned the experience from tedious duty to a modest but pleasant adventure.

Kamprad was famous for his attention to detail. He would make unannounced visits to IKEA stores, examining everything from product displays to lavatory hygiene. His hands-on approach and commitment to customer happiness made the experience uniform around the world. His customer-centric strategy instilled loyalty and trust in IKEA buyers, strengthening the company's position as a global leader.

EXPANSION AND CHALLENGES

Throughout the 1960s and ‘70s, IKEA expanded, opening stores across Europe and entering new markets in North America and Asia. Kamprad's unrelenting attention to cost, and his readiness to adapt to local tastes and preferences, allowed IKEA to prosper across cultural divides. This global expansion served millions of people.

There were some hitches, of course. The corporation was lambasted for its convoluted organisational structure, with a network of holding companies to minimise taxes. It drew more criticism for its environmental impact, and for purchasing products from nations with questionable labour standards.

These obstacles taxed the company's resilience, forcing it to adapt and evolve. Kamprad took steps to address the offending issues. His environmental measures centred on responsible forestry, renewable energy, and waste reduction. The corporation strengthened its supplier code-of-conduct, focusing on fair labour and environmental responsibility. This underlined IKEA's commitment to heeding its customers, bringing the company in line with their wishes.

LEGACY AND IMPACT

Ingvar Kamprad died in 2018 at the age of 91, leaving a legacy that continues to inspire. His inventive design and focus on customer happiness revolutionised how people furnish their homes and conducted their businesses. His story exemplifies how strength of vision and persistence have the potential to build something truly spectacular.

Kamprad's influence and attitudes resonated with all and sundry, challenging the conventions of consumerism. He showed that even the most ambitious goals can be attained with effort, patience, and an willingness to challenge outdated systems.

Ingvar Kamprad's influence on the furniture industry is obvious. He democratised access to quality furniture, changed the way people shop, and inspired other companies with his vision and commitment. He remains an inspiration, reminding us that the most basic ideas can have a significant impact.

CORNELIUS VANDERBILT

The ‘Commodore’ Who Steamed Straight Ahead to Glory

In the annals of American corporate history, Cornelius Vanderbilt was a true legend, a self-made billionaire who rose from humble beginnings to become one of the wealthiest and most important figures of the 19th Century.

Vanderbilt, known as “the Commodore” for his success in the shipping industry, employed unwavering drive to construct a transport empire that connected the United States via steamships and railroads.

His commercial acumen, persistent focus on efficiency and willingness to question just about everything changed the very concept of transport. He fuelled America's economic furnace, and left an indelible mark as an industrial giant.

FROM FERRIES TO FORTUNES

Cornelius Vanderbilt, born in 1794 on Staten Island, New York, showed ambition from an early age. At 16, he borrowed $100 from his mother to buy a small sailboat. He used it to ferry passengers and goods between the island and Manhattan.

His tireless work ethic and sharp business sense was accompanied by a willingness to take chances. He rapidly established himself as a savvy young businessman. He wasn’t afraid of hard work or discomfort, working long hours — and sleeping on his boat to save money.

Vanderbilt's early success paved the way for more endeavours. He expanded his sailing fleet, purchased new routes, and sought new ways to increase efficiency and cut costs.

His determination and competitive spirit drove him to engage in sometimes violent confrontations with his rivals, undercutting their prices and providing superior service. He was known for his aggressive tactics and willingness to go to any lengths; these things served him well throughout his career.

STEAMSHIP KING

In the 1820s, Vanderbilt recognised the power of progress, and began investing in steamships. It was new technology for the time, faster and more reliable than wind power.

He quickly established himself as the industry's leading light, assembling a fleet of steamships that plied the Hudson River, Long Island Sound, and the Atlantic coast. The fleet was recognised for speed, comfort and affordability, and drew a devoted following.

Vanderbilt's success in the maritime industry did not come without challenges. He faced stiff competition from other operators and frequently engaged in price wars to acquire market share.

He had to navigate not only the waters, but the industry's complex regulatory structure. It was a sticking point for many, frequently marred by corruption and favouritism.

But Vanderbilt's tenacity and business nous enabled him to overcome any hurdles — and emerge as the undisputed "King of Steamships".

FORGING A RAILROAD EMPIRE

Railroads became the primary form of transport in the mid-19th Century, and Vanderbilt shifted his focus accordingly. He recognised rail’s potential to connect the great expanse of the United States and allow the movement of goods and people on a grand scale.

Vanderbilt's debut was distinguished by his trademark audacity and ambition. He bought faltering railroads, merged them into one sprawling network, and invested in infrastructure and technology. His railroads linked key cities across the country, boosting national economic growth. He wasn't satisfied with merely owning railroads — he wanted to control them. He used his wealth and influence to buy important routes and strategic assets.

Vanderbilt's managerial style was one focused on efficiency and cost. He streamlined operations, standardised equipment, and brought in stringent accounting procedures. His railroads were noted for their dependability, punctuality and

affordability. He was a hands-on manager who frequently travelled on his trains to see at firsthand every part of the operation.

LEGACY AND CONTROVERSIES

Cornelius Vanderbilt's contribution to America is undeniable. He established an empire that united the country, promoted trade, and stimulated the economy. He made travel accessible to the general public, changing the way people lived and worked. He established a truly national market, allowing commodities and ideas to flow freely.

Vanderbilt was not without critics. His harsh commercial techniques, monopolistic inclinations and disrespect for labour rights earned him another moniker: that of "robber baron". It was a term for prominent industrialists who made their money by dubious means.

He was accused of exploiting his employees and abusing his wealth and power. Despite this, he is also recognised as a visionary who revolutionise industries, and his country. His legacy is one of power, ambition, invention, and the continual pursuit of progress. He showed that with effort, determination, and a willingness to take risks, it is possible to accomplish great things.

He developed an empire that changed a country’s trajectory. His accomplishments, his problems, and his influence are legendary. This titan of industry was a man who simply forged ahead.

MADAM CJ WALKER

The Trailblazer Who Empowered a Generation

Madam CJ Walker, born Sarah Breedlove on a Louisiana plantation in 1867, overcame adversity to become America's first female self-made millionaire.

Her tale is one of perseverance, invention, and unrelenting drive. She developed a hair-care enterprise catering for African American women, changing their lives and image, and challenging cultural standards.

Walker's early upbringing is perhaps what gave her her grit and endurance. Born to former slaves, she was orphaned at the age of seven and forced to labour in cottonfields. Married at just 14 and widowed at 20, she was a single mother, dealing with the harsh realities of poverty and discrimination.

Despite these tough circumstances, Walker's entrepreneurial spirit and tenacity never faltered. She refused to be defined by her place in the world, instead working to improve her own and others' lives.

THE CREATION OF AN EMPIRE

Walker began losing her hair in the early 1900s, a typical condition among African American women, caused by harsh cleansers and hair-straightening treatments. Determined to find a remedy, she set out on a path of experimentation, combining and testing various chemicals in her bathtub.

Her efforts resulted in the development of her breakthrough product, Wonderful Hair Grower, which promoted hair growth and scalp health.

Walker's product immediately became popular, and her business expanded. She saw an opportunity to help other women and, using a direct-sales technique, hired and trained a network of "Walker Agents" to sell her product door-to-door. This business strategy was unique at the time, and gave thousands African American women the chance to make an income and achieve financial independence, challenging traditional gender norms.

EMPOWERMENT AND SOCIAL CHANGE

Walker's salesforce grew to the thousands, a formidable network of entrepreneurs and community leaders. She provided training, support and encouragement, instilling a sense of sisterhood that extended beyond the professional setting.

Walker's agents not only sold her products, they became role models and mentors for others, pushing them to achieve their aspirations and fight society's constraints.

Walker's prosperity, kindness and business acumen made her a philanthropist and social

crusader. She freely contributed to education, civil rights, and women's suffrage. Her donations to the NAACP, the Tuskegee Institute and other churches and schools proved her desire to uplift her community.

CJ Walker used her position to promote social justice and oppose discrimination. She spoke out against segregation and the infamous Jim Crow laws, encouraging African Americans to be proud of their ancestry — and keen to work for economic independence. Her tireless work paved the way for the civil rights movement, inspiring activists in the fight for a more just and equal society.

AN ENDURING LEGACY

Madam CJ Walker's contribution to American society was immense. She cracked glass ceilings before they were a thing, fought preconceptions,

and inspired others to pursue their aspirations. Her enthusiasm, charitable endeavours and unshakeable dedication to social justice continue to motivate entrepreneurs and community leaders.

Walker demonstrated the power of endurance, invention, and spirit. She showed that in the face of adversity, it’s possible to accomplish greatness. With hard work, determination and conviction, anything is possible.

This trailblazer changed lives and paved the way for future generations. Her accomplishments, charity endeavours and social involvement motivated people around the world.

Her actions showed that true greatness comes not only from personal achievement; it’s also about using one's platform to uplift others.

JOSIAH WEDGWOOD

A Potter Who Gave Birth to a Brand

Josiah Wedgwood is remembered as a trailblazer, not just for his ceramics, but also for his trailblazing marketing and branding initiatives — before "marketing" and "branding" even existed.

Wedgwood understood the need to create demand, cultivate an identity, and connect with customers on an emotional level. His pursuit of perfection, combined with his business acumen, transformed the humble craft of pottery into a global business. He left an indelible mark on the world of commerce and demonstrated that, even in the 18th Century, innovation and marketing savvy were essential for business success.

PURSUIT OF PERFECTION

Josiah Wedgwood was born in 1730 in Staffordshire, England, and gained a passion for the family trade at a young age. His ambitions went well beyond the typical boundaries of pottery. He went on a voyage of invention and entrepreneurship that enhanced its appeal and made it more available to a wider audience, setting new standards for quality and design.

Wedgwood's early career was characterised by experimentation and a quest of technical excellence. He worked relentlessly to improve processes, creating new glazes, colours, and artistic patterns that distinguished his ceramics from those of his competitors.

His desire for perfection permeated every element of his work, from the quality of the clay to the finest details of design. He wasn’t satisfied with simply making something useful; he wanted to produce works of beauty and art that would be passed down through generations.

A MARKETING VISIONARY

Wedgwood's talent lay not just his artistry, but also in his marketing skills. He realised that making beautiful ceramics was only half the battle; he also needed to put passion into his products and create pottery that would appeal to customers. In an era when most firms relied on word-of-mouth and local trade, Wedgwood implemented methods that were ahead of their time.

He established showrooms in London, allowing buyers to see his work and appreciate its beauty and excellence. These shops were more than just retail venues; they were meticulously curated galleries that displayed Wedgwood pottery as true works of art.

He offered an aspirational experience for customers. He built contacts with powerful people, including royalty and celebrities of the day, earning endorsements and enhancing his

firm’s stature. Wedgwood increased demand by linking his works to the elite and the stylish.

Wedgwood also pioneered the use of direct mail, distributing catalogues and brochures around the country. Even the catalogues were meticulously crafted. He recognised the value of “visual storytelling”, and took customers’ imaginations into a world of elegance and refinement — with his ceramics as the centrepiece.

THE WEDGWOOD LEGACY

Wedgwood recognised the need to develop a brand identity to set his pottery apart. He developed an image emphasising quality, elegance, and sophistication. His characteristic "Wedgwood Blue" jasperware, with exquisite white reliefs on a blue backdrop, became synonymous with his name — instantly recognisable, and swiftly in high demand.

Wedgwood products became items of desire for the upper classes and the emerging middle class. His innovation went beyond his products. He planned every part of his business, from packing to the layout of the showrooms. He recognised that every consumer interaction contributed to success, and he worked hard to retain that air of exclusivity.

This comprehensive approach was groundbreaking for its day, laying the foundations of modern marketing and brand management.

Josiah Wedgwood's influence on the worlds of commerce and design is unmistakable. He changed the image of pottery, turning it into a symbol of sophistication. His inventive marketing, precise craftsmanship and commitment to quality established a new standard, motivating others to follow in his footsteps.

It’s a legacy that continues to thrive. Wedgwood is, even today, a symbol of wealth and refinement, cherished by collectors and connoisseurs around the world. His pioneering energy and entrepreneurial vision inspired business leaders, reminding them of the value of creativity and innovation.

Josiah Wedgwood was more than just a skilled potter; he was a visionary. He saw the importance of branding — and of creating desire. He personified the transformative force of entrepreneurship, reminding us that even wellestablished sectors can be transformed.

He demonstrated that artistry and commerce could coexist, and his attitudes continue to inspire modern business leaders.

Europe

Pioneering Sustainability and Tech Integration in Europe

Europe’sgotthepedaltothemetal,andwecanexpecttoseegroundbreakinginventionscomingourway...

Europe, a continent rich in history and tradition, is also a definite hub of innovation, leading the way in sustainability across industries.

The EU’s commitment to a greener and more connected future is reflected in its dynamic innovation environment, which includes renewable energy and electric vehicles, as well as medical advances and digital transformations.

GERMANY: INDUSTRY 4.0

Dubbed the "engine of Europe", Germany is known for its engineering prowess. The country is at the vanguard of the Industry 4.0 movement, using the latest in artificial intelligence and robotics to overhaul its industrial sector.

Multinational Siemens is an excellent illustration of German inventiveness. The company is a pioneer in Industry 4.0 solutions, which assist manufacturers in optimising operations, increasing efficiency and cutting costs. Siemens is defining the future of manufacturing with smart factories and “digital twins”, as well as predictive maintenance and supply chain optimisation.

Beyond industrial innovation, Germany has made tremendous advances in medicine. BioNTech received international attention for its crucial role in creating one of the first mRNA vaccines. The technique has the potential to transform vaccine development and disease treatments.

SWEDEN: MUSIC AND BATTERIES

Renowned for its minimalist design and devotion to sustainability, Sweden has also given birth to some of the world's most inventive businesses.

Spotify, the world's top music-streaming platform, transformed the leisure industry by allowing users to listen to millions of songs — on demand. The firm's personalised recommendations and userfriendly design have changed the way people discover and listen to music.

Another Swedish innovator is Northvolt, which is addressing sustainable battery production and creating one of Europe's largest battery factories. And yes, it will run solely on renewable energy. Northvolt batteries are intended to be more environmentally friendly and have a longer lifespan than typical lithium-ion batteries.

ESTONIA: THE DIGITAL NATION

This small Baltic country has emerged as a world leader in digital innovation. The country has adopted technology to improve government services, increase transparency, and empower individuals.

"Multinational Siemens is an excellent illustration of German inventiveness. The company is a pioneer in Industry 4.0 solutions, which assist manufacturers in optimising operations, increasing efficiency and cutting costs. Siemens is defining the future of manufacturing with smart factories and 'digital twins', as well as predictive maintenance and supply chain optimisation."

Estonia's e-residency programme enables anyone from anywhere in the world to establish a “digital presence” in the country — and benefit from its business-friendly climate.

Skype, the ubiquitous comms platform that allows for audio and video chats over the internet, was co-founded by Estonian entrepreneurs. Skype transformed communication during the pandemic, making it possible for people to communicate with friends, family, and coworkers.

Another Estonian success story is TransferWise (now Wise), which revolutionised international money transfers with transparent costs and cheap rates. Wise's revolutionary approach has made it easier and less expensive for consumers and businesses to send and receive money across borders.

FRANCE: AHEAD IN THE CLOUD

Ah, les francais. France, known for its art, culture, and food, is also a hotbed of invention in the fields of transport and technology. BlaBlaCar, the French ridesharing network, matches empty seats with passengers heading in the right direction. This ingenious idea lowers transit costs and promotes sustainability — fewer cars, see?

Cloud computing company OVHcloud provides a variety of services, such as web hosting, virtual private servers and dedicated servers. It’s committed to data sovereignty, giving its customers complete control over their data while assuring them privacy and security. OVHcloud's solutions enable organisations of all sizes to

embrace the Cloud and accelerate their digital transformation.

UK: AI AND CHIPS, PLEASE

Britain, with its long history of scientific discovery and technical growth, retains a key role in the global innovation landscape. DeepMind, an AI start-up acquired by Google, has made huge strides by creating algorithms capable of mastering complex games such as Go and chess. DeepMind's technology has the potential to revolutionise a number of industries, including healthcare, banking, transport and energy.

Another UK innovator is Graphcore, developing nextgeneration AI chips to accelerate machine learning.

Researchers and developers hope to push the boundaries of AI innovation with the company's intelligence processing units (IPUs), which outperform typical GPUs. Graphcore's technology is expected to play an important role in advanced AI applications such as self-driving cars, robots, and natural language processing.

Europe's dedication to sustainability has made it a global innovation leader. The scene is diverse and dynamic, and going places.

As the globe grapples with climate change, resource shortages and an ageing population, Europe's emphasis on sustainability and technological integration provides hope.

The continent creates economic possibilities and contributes to a greener, healthier, and more connected future for everyone. i

"As the globe grapples with climate change, resource shortages and an ageing population, Europe's emphasis on sustainability and technological integration provides hope."

MASERATI GRANTURISMO FOLGORE

THE OTHERS JUST TRAVEL

The first full-electric Maserati ever.

> Laying Foundations for Renewed Growth — and a Secure Future

The health insurance has continuously expanded in Spain since 2012 — and is responsible for more than a quarter of the nation’s non-life insurance premiums.

That’s impressive in a country with reported premiums of more than €11bn for 2023. Nearly one in four citizens is covered by a healthcare policy.

SegurCaixa Adeslas, part of the Mutua Madrileña Group and owned by CaixaBank, has established itself as a stand-out performer for its ability to take advantage of market conditions. It has consolidated its leading position in the health sector. Last year, it obtained premiums worth €4.7bn euros, 6.6 percent more than the previous year.

Those results were largely thanks sterling performances in the health, multi-risk and motor divisions. This market leadership has been reinforced by the incorporation of Basque firm IMQ, resulting in a market share of 31.6 percent in the health sector — twice the sum of its two most direct rivals.

These impressive results stem from a strategy focused on sustainable growth, and on SegurCaixa’s strength in commercial, traditional and bancassurance channels. In the latter case, the CaixaBank alliance proved to be a strategic asset. The firm boosted growth with triannual insurance solution ranges — without premium increases.

The digitalisation of processes has given customers increased accessibility and delivered personalised services. Adeslas Salud y Bienestar’s digital health hub, with some 1.2 million registered users, offers a range of selfmanagement and service functionalities focused on preventative healthcare.

The Adeslas Salud y Bienestar digital platform plays a proactive role in the promotion of customer wellbeing and concedes a special attention to family health. It includes the provision of health cards, vaccination schedules and other solutions for specific targets, including paediatric coaching for families.

If pathologies appear, the platform enables the monitoring and control of acute episodes. The insurer hones healthcare resources geared to

the country’s increased average population age. Chronicity, comorbidity, and general societal healthcare needs are catered for.

SegurCaixa Adeslas also excels in the accident division, with a market share of 8.3 percent in multi-risk, highlighting business insurance (specifically, stores). It reported the highest growth of the top 10 in the segment (11.9 percent). The death segment, too, saw significant growth (10 percent). In the car insurance sector, SegurCaixa Adeslas had truly spectacular growth: 51.9 percent last year, and 6.6 percent of the market total.

SegurCaixa Adeslas is engaged in the first phase of its Strategic Plan for 2024-2026. The focus is on three axes:

• Reinforcement of the commercial offering and the exploitation of new opportunities to renew growth

• Changes in commercial and management capacities

• The transformation of customer experience.

With initiatives such as this, the firm has established itself as an industry benchmark. Add to that, the alliance with CaixaBank establishes SegurCaixa Adeslas in a positive position to cement its leadership position. i

Introducing the World Elite Mastercard with the contactless feature. Mastercard credit cards.

Free access to over 850 airport lounges worldwide with one guest** Concierge** services

50% discount* on movie tickets 10% discount* on air tickets through “Cleartrip”.

Buy-1-get-1 offer* at Costa Coffee and many other outlets

For more information, please call our 24 hours Phone Banking on 17531532. Download “Mastercard for you” app on your phone to know the World Elite Mastercard features.

Milan Fintech Summit 2024 Underlines Italian Ambitions

By Alessandro Hatami MD of strategic consultancy Pacemakers

When asked to name the fintech capitals of Europe, most people would opt for Paris, Berlin, Stockholm, or the Baltic cities of Vilnius and Tallinn. But another destination has ambitions to play in the fintech 'Champions League'—the Italian city of Milan.

While tourists may know Milan for historic sites such as its Gothic Duomo and the Teatro alla Scala, the city has done an impressive job of reinventing itself as an innovation hub – spearheaded by the development of the Milan Innovation District (MIND). With advances in sustainability and urban development, there's no reason why this Northern Italian powerhouse shouldn't also set its sights on fintech.

To focus attention on this ambition, Milan has created a dedicated Fintech District which is home to over 300 fintech and techfin companies. It also hosts the Milan Fintech Summit (MFS), launched in 2020. With its fifth edition having just taken place at the Allianz MiCo, the summit aims to reinforce Milan's status as a critical hub for financial innovation in Europe and spotlight the burgeoning Italian fintech sector.

Here are some key themes to emerge from this year’s event:

The building blocks are in place – but Milan needs a breakout hit: With over 15,000 financial companies and 2,800 startups, Milan boasts a robust financial ecosystem. The city attracts 69% of investments in the Italian fintech sector, making it a natural focal point for growth. Italy has given birth to two financial unicorns (Satispay and Scalapay) in recent years, but Milan could do with another to truly attract attention. This is not an easy task – because exciting Italian startups often choose other cities as their bases. An example is London-based Desia, launched by a co-founder of Scalapay. One positive development, however, is that the Italian government and regulators are taking steps to support innovation, such as a sandbox managed by various institutions including Banca d’Italia, Italian financial regulator CONSOB, and the Italian Ministry of Economy and Finance. This sandbox allows fintech startups to test innovative models under regulatory supervision for up to 18 months.

Interaction between Milan fintechs and Italy’s regulators is critical: Picking up on the previous point, Milan's potential is enhanced by a progressive regulatory regime. At the MFS, Alessandra Perrazzelli of Banca d'Italia (which

"Milan has created a dedicated Fintech District which is home to over 300 fintech and techfin companies."

has a regulatory function) talked about the success of its Milan sandbox. Italy is also notable for its willingness to introduce specific legislation around equity crowdfunding. In addition, it takes an even-handed approach to regulation, with fintech players typically subject to the same rules as traditional institutions. Could regulators do more to energise Italian fintech? There was a sense at the MFS that some sectors, like Virtual Asset Service Providers (VASPs), have faced increased regulatory scrutiny, which may impact innovation. Delegates were also waiting to see how the transition to new EU regulations like MiCAR which addresses markets in crypto assets, will be handled. This is likely to have a significant impact on fintech, requiring careful management.

Milan is nurturing national and international engagement: Fintech is not an area where cities can go it alone – they need investment, industry partnerships and an openness to global talent and ideas. The Milan Fintech Summit plays a key role in this and has taken the positive step of holding roadshow events in other regions, including Rome. There is an acknowledgement here that Milan's fintech ambitions are entwined with the wider ambitions of Italy's public and private sectors.

While the Italian fintech sector is growing, there is also recognition that it needs to continue showcasing its potential on the international stage. Milan is leading in this through the MFS and the Fintech District and Open Banking platform Fabrick which has created an Open Finance ecosystem to encourage collaboration and sharing of ideas around financial services.

It's worth noting that 30% of the companies now based in Milan’s Fintech District are from markets such as France, Germany, Switzerland, the UK, and the US. One suggestion doing the rounds was that Milan should collaborate more

with

or Malta.

Milan-based fintechs are working out how to harness AI safely: A survey conducted by the MFS revealed the sectors attracting the lion’s share of investment; with 50% eyeing techfin solutions and 25% targeting wealthtech and insuretech, respectively. Drilling down, the survey found that 50% of Italian fintech investors are interested in innovations in AI, machine learning, and fraud prevention.

A key impression from the MFS is that Italian fintechs are already benefiting from AI's capabilities in areas like risk assessment, predicting customer behaviour, identifying investment opportunities, and improving fraud detection. However, there was also a clear

other challenger fintech hubs like Latvia

understanding of the risks involved, such as data privacy breaches, AI hallucinations, the potential for biases and security vulnerabilities. There was discussion around the need for regulatory compliance while implementing AI solutions.

Milan is committed to gender balance in fintech: Milan and Italy in general, supports diversity in fintech leadership. For example, recent data from Milan’s Fintech District revealed that 22 companies in its community have female leadership, including 15 women as CEOs. Among these are Clearbox AI, Tech Engines AI and Vidyasoft. Of course, there is still a long way to go – and how to achieve greater balance was a prominent theme at the 2024 MFS.

Suggestions for improving gender balance included implementing programmes to support

underrepresented groups in the startup ecosystem. There were also calls for mentorship and education programmes and a shift towards diverse funding mechanisms. The aim would be to ensure VC and investment decisions are made by diverse teams - to reduce unconscious biases.

FINAL THOUGHT

The Milan Fintech Summit 2024 provided an excellent platform for showcasing Italian fintech potential and positioning Italy as a key player in European fintech. However, while progress has been made in fostering innovation, there is still work to generate international investment and create fintech winners. As the sector continues to evolve, particularly with the rapid advancement of AI, finding a balance between innovation and regulation will be key to sustainable growth and success. i

Author: Alessandro Hatami

Milan: Unicredit tower, UnipolSai tower, the Bosco Verticale and BAM public park

‘Chronic’ Data-Skills Shortage is Costing UK £57.2bn

Workers, on average, spend 14.3 hours each week on data entry, analysis, and reports. That’s a lot of time away from higher-value tasks.

The recent Multiverse Skills Intelligence report shows that workers themselves feel they’re “wasting” more than 10 percent of their working week. The report also found that staff are relying on Excel for the majority of their data tasks, with many lacking understanding of (or avoiding) tools such as Python.

Derek Mackenzie, CEO of Investigo, says that in challenging economic times, “building a national talent pipeline of candidates equipped with the latest digital skills is crucial”.

Basically, companies need tech talent to thrive — and many are struggling to recruit and train candidates in core areas: data analysis, automation, and predictive modelling.

With the lack costing the country £57.2 bn per year, nine-in-10 business leaders believe their organisation has “significant skills gaps” — and

Every Year

half of employees agree. “It’s evident that a much greater focus is needed,” says Mackenzie, on developing opportunities for future generations in the tech industry.

Sachin Agrawal, UK MD at Zoho UK, says building digital skills throughout the workforce is essential to the UK’s goal of becoming “a global technology superpower”.

“It’s clear there’s still a lot of work to be done,” Agrawal says. “Businesses need access to skilled staff to maximise the benefits of technological solutions, especially when it comes to the rapid development and adoption of AI, which relies heavily on data foundations.”

Collaboration between government, industry, and education centres will be needed if that “pipeline of talent” is to be built. The most in-demand skills must be identified, bootcamps created to focus on key skillsets.

Such efforts would equip the next generation with sought-after skills — and, hopefully, bridge the gap. i

‘Premature GenAI Integration Can Derail Promising Strategy’ — M-Files

Over the past year, the adoption of Generative AI (GenAI) has accelerated significantly, with McKinsey’s 2024 AI report indicating a 65 percent rise in organisations regularly using GenAI solutions to transform operations and drive innovation. Despite this rapid uptake, Yohan Lobo, senior industry solutions manager at M-Files, warns that businesses rushing to adopt GenAI may risk suboptimal outcomes. “After the meteoric rise of this technology, people are beginning to question if GenAI deserves the hype it has garnered over the past two years,” he says, noting that while expectations are high, GenAI has genuine applications across industries, such as summarising documents, creating content, and translating.

However, for GenAI to deliver meaningful results, companies must first build on a foundation of well-structured, reliable data while ensuring their strategy respects security and compliance protocols. Lobo cautions that organisations must be “AI ready,” which includes conducting a comprehensive data audit and establishing

an organised internal data repository to support trusted GenAI outputs. He stresses that any reliance on external data can lead to inconsistent and untrustworthy results. “A clear understanding of data sources is essential to avoid common pitfalls,” Lobo adds.

Lobo encourages companies to explore broader automation opportunities alongside GenAI to boost efficiency and productivity. Automated systems handle high volumes of repetitive tasks without fatigue, allowing employees to focus on more strategic, creative initiatives. With automation, businesses experience fewer manual errors, greater security, and an improved customer experience overall.

By prioritising both structured internal data and a balanced approach that integrates automation, organisations can deploy GenAI with confidence. This comprehensive strategy, Lobo concludes, empowers companies to enhance operational accuracy, streamline routine processes, and achieve sustained success in an increasingly AIdriven, competitive world. i

“Businesses need access to skilled staff to maximise the benefits of technological solutions, especially when it comes to the rapid development and adoption of AI, which relies heavily on data foundations.”

> High Street Icon Pulled Itself Up by its Own Bootstraps But Tough Times are Coming

Humble beginnings, immense success, and modern challengesforBootsUK.

In 1849, in the heart of Nottingham, a small herbalist shop opened its doors for the first time. No one could have guessed, back then, that it would become a runaway success.

John Boot founded an empire with this modest enterprise; his name, or at least that of his pharmacy chain, has become synonymous with British high streets.

Boots, as the shop was eponymously named (sans apostrophe) developed swiftly, providing in-store service that transformed how people acquired medications and health advice. The pio-neering attitude continued with the creation of its own-brand products, which proved to be eco-nomical and dependable alternatives to branded medicines and tinctures.

In the 20th Century, Boots became more diverse, expanding into cosmetics and other consumer items. Its 2006 merger with Alliance UniChem cemented its position as a main player in the Eu-ropean pharmaceutical business. Walgreens Boots Alliance's subsequent acquisition in 2014 in-creased its global reach.

Today, Boots is at a crossroads. While it is still an institution, a changing retail landscape and developing customer habits have made it time for a strategic overhaul. The projected closure of 650 of its pharmacies served as a shot across the bows for the sector as a whole. But the crisis has given Boots the impetus to reinvent itself and reassert its dominance.

A DIFFICULT DECISION

When Boots UK announced its plans, it caused waves throughout retail and healthcare. The closures, set to take place over the coming three years, will mostly affect smaller outlets located near other Boots pharmacies.

The company listed various motivations, with cost-cutting at the forefront. The dire economic situation, compounded by the pandemic and growing inflation, has compelled many businesses to rethink their operations. Boots took action — and the threat to its livelihood in its stride.

"Today, Boots is at a crossroads. While it is still an institution, a changing retail landscape and developing customer habits have made it time for a strategic overhaul."

The company recognises an evolving customer landscape. The rise of internet shopping and the growing popularity of digital healthcare services have had an influence on foot traffic at tradi-tional brick-and-mortar pharmacies. While Boots has invested in its online presence, it acknowledged the need to adjust its physical footprint to keep up changing trends.

But closures never happen without some outcry. Critics say the company should have considered other options, such as shrinking stores or rebranding them to focus on certain healthcare ser-vices. Other critics are concerned about the impact on public access, particularly in rural re-gions where Boots is sometimes the only pharmacy.

While Boots UK has promised to assist affected employees with redeployment and retraining, job losses were inevitable, and cause for concern. The closures raise broader questions about the future of British pharmacies and their role in healthcare provision.

Boots maintains that the closures are a vital step towards long-term sustainability. It’s convinced that its remaining pharmacies will be well-positioned to satisfy customer needs and expecta-tions.

THE RIPPLE EFFECT

Boots UK's decision has ramifications for communities which have long relied on the chain. Clo-sures will result in gaps in access to healthcare.

For rural residents, the lack of a local Boots may result in increased travel times for essential services. This could disproportionately affect the elderly and those who rely on public transport. The closures could also worsen health disparities: people without easy access to alternative pharmacies may postpone the search for medical assistance, or fail to properly manage their medications.

The general economic impact is another concern. Thousands of job losses — pharmacists, technicians, dispensers, and shop staff — will be felt most in smaller towns and villages where employment possibilities are limited. There could even be an impact on companies near the closed pharmacies, as reduced footfall leads to a drop in sales.

Beyond these repercussions, there will be the loss of communal hubs. Many Boots pharmacies have come to act as gathering spaces for people

to interact with their neighbours. A trip to the pharmacy is a quasi-social outing for many, especially the elderly, a simple step to combat lone-liness and isolation. This loss could have a negative influence on individual wellbeing — and the fabric of the community.

Boots has vowed to engage with local authorities and healthcare providers to ensure a smooth transition and minimal disruption to patient care. The company's decision serves as a sharp reminder of the issues facing the pharmacy sector, as well as the need for solutions to guarantee communities continued access to healthcare.

It also emphasises the significance of investing in preventative healthcare and increasing digital health literacy to enable people to take charge of their own health needs.

Whatever the closures bring, it will not be the end of Boots as an institution; rather, it will mark

a deliberate shift to a new business model. The company is counting on a future in which beauty, health, and wellbeing remain centre stage, but supported by a strong digital presence. Boots is boosting its participation here, investing in internet platforms and mobile apps. There will be online consultations, prescription delivery and virtual beauty consultations. Boots aspires to im-prove consumer convenience and engagement and extend beyond physical locations.

Boots intends to transform surviving locations into hubs tailored to healthcare and cosmetic needs. There will be expert advice, new products and personalised service. This is consistent with broader market trends.

It faces numerous hurdles. The pandemic's persistent after-effects, rising prices and shifting consumer tastes will all put the company's resilience to the test. Competition is heating up

in the sphere of internet pharmacies and digital healthcare providers.

Boots remains well-positioned to take on these challenges thanks to brand recognition, a broad network, and an innovative legacy. The new approach may even be preferable to younger gener-ations. Boots has the time to rethink its function while retaining its status as a relevant and val-ued brand.

And this transition is one of many, across industries, a microcosm of a larger shift. Organisations must be agile and adaptable if they intend to be competitive.

The UK pharmacy sector's future depends on its capacity to innovate and adapt. The path ahead may be difficult, but potential benefits are still great. By successfully navigating this shift, Boots can stabilise its future, and contribute to a more resilient and accessible healthcare landscape. i

Grenfell Tower:

The Tragic Inferno’s Grim Lesson on Cost-Cutting and Complacence

On June 14, 2017, fire ripped through the Grenfell Tower apartment block in North Kensington, West London, killing 72 people and leaving hundreds injured and homeless.

The Grenfell Tower Inquiry's highly anticipated Phase 2 findings, the result of years of investigation into the tragedy, were released in a 1,700-page report on September 4.

It revealed institutional flaws and individual negligence, both of which contributed to the disaster. It also put a searing spotlight on the human cost of regulatory neglect and corporate greed.

The Phase 2 report methodically dissected the chain of events that led to the tragedy, putting sharp focus on the actions of the building's owners and management, the local council, fire safety inspectors, and the producers of the flammable cladding that enveloped the tower in flames.

THE NIGHT OF FIRE

In the early hours of that fateful June 14, a small kitchen fire in a fourth-floor flat at Grenfell Tower swiftly turned into an uncontrollable blaze. Within minutes, the flames had moved up the building's façade, fuelled by the highly flammable exterior cladding installed during a recent refurbishment. The material, designed with aesthetics and energy efficiency in mind, was more than unfit for purpose. It literally fed the blaze, turning the block into an inferno.

Residents trapped in their apartments faced an awful choice: stay where they were, and risk the encroaching flames, or make a desperate escape bid down the smoke-filled stairs. Urgent calls were made to emergency agencies by voices filled with terror and despair.

Firefighters were soon on the scene, and did their best to rescue those still trapped, battling horrific conditions. But the speed and severity with which the fire spread made the task all-but impossible.

"The building’s oncefamiliar silhouette was turned into a charred skeleton, heartbreaking evidence of lives lost and a community destroyed."

As the drama and flames raged on, the extent of the catastrophe quickly became clear. The building’s once-familiar silhouette was turned into a charred skeleton, heartbreaking evidence of lives lost and a community destroyed. The country awoke to broadcast scenes of devastation and anguish, and a collective sense of shock and bewilderment.

THE AFTERMATH

When the smoke cleared and the bodies had been counted, a wave of rage and anguish swept Britain. The disaster had exposed shocking structural inadequacies. The borough has a disparity of living standards, with extreme poverty nestled next to wealth. Grenfell Tower fell on the wrong side of that divide; it is in the lowest 10 percent of England’s most deprived areas.

The report showed all-too-clearly the inadequate housing standards for low-income residents, whose warnings were ignored and safety tragically compromised.

The inquiry was established to find the root causes of the incident, with the stated aim of preventing similar tragedies. Phase 1 of the investigation concentrated on the events of the night, while Phase 2 looked into its broader context, scrutinising the decisions that contributed to the disaster.

KEY FINDINGS

What emerged was a brutal condemnation of a series of systemic failures. It identified a slew of regulatory violations, incompetence, and errors that preceded the blaze.

The building’s cladding was central to the debacle: it was made of a highly combustible material. The point could not have been made more clear: the aluminium composite material panels covering the exterior of the tower were made of highly combustible polyethylene held between two thin aluminium layers.

It was the principal cause of the fire's rapid spread. It failed basic safety standards — and turned a residential complex into a deadly tinderbox.

The shiny outer layer may have looked impressive when new, but the ferociously combustible plastic has been compared to “solid petrol”. Not for the first time in human history, profit and aesthetics had been put before safety.

The Kensington and Chelsea Tenant Management Organisation (KCTMO), which

managed the doomed building, failed to address safety concerns — which had previously been highlighted by residents. The investigation found that the KCTMO’s choice of material had been influenced by cost cutting.

THE LOCAL COUNCIL

The Royal Borough of Kensington and Chelsea, the local council in charge of Grenfell, rightfully came in for harsh criticism. It had failed, investigators said, to appropriately oversee the restoration of Grenfell Tower and ensure compliance with fire-safety regulations.

Fire-safety inspectors were not spared, either. They failed to recognise the danger posed by the cheap cladding, as well as other risk factors.

DREADFUL HUMAN COST

The Phase 2 report is a sobering and shocking document, exploring the awful reality of the 72

people who perished. It delved into the human cost, creating vivid images of residents’ erstwhile ambitions, plans, and goals. The ongoing trauma faced by survivors and bereaved families, many of whom are still dealing with the physical and psychological consequences, was also brought to light.

THE ROAD TO JUSTICE

The release of Phase 2 is a tentative, but crucial, step towards justice. It presents a detailed description of the events that led to the disaster, identifies those responsible, and emphasises systemic flaws and staggering human error.

The Phase 2 study is a definite call to action as well as a demand for accountability and justice. Its findings are expected to have far-reaching consequences, with criminal charges not ruled out. Certain to follow are regulatory reforms and

mandatory modifications to existing buildings. The only hope is that the lessons learned from Grenfell will prevent another such event.

As the nation ponders the published findings, the national hope is that the deaths, while tragic, may act as a catalyst for reform, a watershed moment in the approach to safety in social housing.

The road to retribution is likely to be long and traumatic, but the Grenfell community's steadfast quest of truth and accountability has been inspirational. Their resilience in the face of terrible loss is a testament to the tenacity of human spirit.

Marginalised voices should now be heard, safety will hopefully take precedence over profit, and justice may yet be served. Only then can the wounds begin to heal. i

Forging Fitness, Dissolving Boundaries: Give CrossFit a Try Sometime Soon

Unlocking the transformative power of functional fitnesscanbefunaswellasbeneficialforwellbeing.

CrossFit has become an enthralling force for fitness fanatics with its blend of functional movements, highintensity exercises and a community spirit.

It can improve your physical and mental health, push you past perceived boundaries, and develop exceptional athleticism. CrossFit is a training regimen that consists of diverse movements executed at high intensity. It draws inspiration from weightlifting, gymnastics and metabolic conditioning — a holistic approach that pushes your body in new ways.

CrossFit sessions, sometimes known as "WODs" (Workouts of the Day), are intended to be scalable and adaptable to all fitness levels, with benefits for all.

INCREASED STRENGTH AND POWER

The focus is CrossFit is on functional activities: squats, deadlifts, push- and pull-ups, which engage several muscle groups at a time. With gradually increasing intensity in these workouts, you'll establish a solid foundation of strength, which converts into better performance in everyday activities.

CARDIOVASCULAR ENDURANCE

The high-intensity workouts test the cardiovascular system, increasing aerobic capacity and endurance. Running, rowing and skipping are great metabolic conditioning exercises that raise heart rate, improve cardiovascular health, and increase endurance.

IMPROVED FLEXIBILITY AND MOBILITY

The diverse activities will test your flexibility and mobility. CrossFit includes dynamic stretches as well as gymnastic components such as handstands to strengthen and add flex to your joints, improving overall agility and lessening the chance of injury.

GET IN SHAPE

Intensive workouts burn calories, burn fat, and help to create a toned figure. The combination of strength training and metabolic conditioning increases the body’s metabolism, burning calories even after the workout.

"It draws inspiration from weightlifting, gymnastics and metabolic conditioning — a holistic approach that pushes your body in new ways."

BETTER CO-ORDINATION AND BALANCE

CrossFit's various motions, which require coordination and balance, test proprioception and motor abilities. Mastering complicated motions such as Olympic lifts and gymnastics help to improve co-ordination, agility, and overall athleticism.

INCREASED MENTAL TOUGHNESS

Some tougher workouts will push you outside of your comfort zone, developing mental fortitude and tenacity. Overcoming physical hurdles and pushing through weariness can bring a sense of mental strength, which you can apply to other aspects of your life.

DECREASED STRESS AND ANXIETY

Exercise has been shown to alleviate stress and anxiety. CrossFit workouts drive the production of endorphins, our "feel-good" hormones. That promotes a sense of wellbeing while lowering stress and anxiety.

INCREASED CONFIDENCE

As you hit new fitness milestones, you’ll find new levels of self-esteem. Overcoming physical hurdles and seeing your body transform can boost self-esteem and give a general sense of worth.

IMPROVED FOCUS

Strenuous workouts demand focus and concentration, which helps with mental clarity. Engaging in hard physical activities trains your mind to stay present, boosting general cognitive performance.

SUPPORTIVE COMMUNITY

CrossFit promotes a sense of camaraderie, which is another benefit. The gyms, sometimes known as "boxes", provide a supportive and encouraging

environment for people of all fitness levels. The companionship and shared experiences instil a sense of belonging as well as motivation.

SOMETHING FOR EVERYONE

Another impressive feature is the system’s scalability and adaptability for gym bunnies and newbies. CrossFit can be personalised to suit fitness levels. Workouts can be scaled to match physical limits or ailments, allowing everyone to participate.

SAFETY CONSIDERATIONS

That said, it's important to prioritise safety and technique. Begin with the assistance of a certified CrossFit coach, who can teach you the right way to do things. It's also important to listen to your body — and avoid pushing yourself beyond your limits.

THE COMMUNITY

CrossFit fosters a vibrant and friendly community. The boxes often organise social events, tournaments, and challenges to foster a

sense of belonging. The shared love of fitness, as well as encouragement from others, can be great motivation, pushing you to reach your goals. Success Stories

The system has helped people from many walks of life to lose weight, improve overall health, and overcome physical restrictions. CrossFit is more than a workout; it becomes a way of life. It can alter your physique, raise your confidence, and push you beyond your perceived boundaries.

Whether you want to improve your strength, endurance, flexibility, or mental resilience, CrossFit provides a complete solution.

Before you begin, contact your doctor or healthcare professional, especially if you have underlying medical concerns. With the right coaching, dedication, and a passion for fitness, you could find yourself on a truly transformative path, one that leads to a healthier, stronger, and more powerful you. i

Understanding Body Language: Secret Weapon in Negotiation

Say what you mean and what you stand for — withoutopeningyourmouth…

Business professionals are constantly looking for ways to outmanoeuvre their rivals. For closing a deal, securing a promotion or developing customer connections, you already have a superpower — if you know how to use it.

Many people concentrate on improving their verbal communication skills or learning the technical parts of their field, but understanding and exploiting body language can be more effective.

A complex system of indicators — posture, gestures, facial emotions and eye contact — is essential for communication. Studies show that over 90 percent of communication is non-verbal. What you say is only a portion of the message you transmit.

The ability to properly read and respond to body language can provide insights into other people's thoughts and feelings, too, allowing you to modify your approach.

SCIENCE OF BODY LANGUAGE

This universal mode of communication even overcomes language barriers. It is ingrained in our biology, and evolved as a survival technique long before humans learned to speak. Our ancestors used bodily cues to communicate intentions, emotions and threats — as we still do.

The brain subconsciously processes these signals, frequently faster than verbal communication. People are more likely to react to your body language than your words. Approach someone with an open posture and a smile, and their brain interprets this as pleasant and non-threatening.

Mirror neurones in the brain play an important part in all this. They fire when we execute an activity, and when we see another person do so. They help us to empathise and connect. This “mirroring effect” means that your body language elicits similar emotions and behaviours in others. Which makes it an effective way of influencing and persuading people.

READING BETWEEN THE LINES

The ability to read and analyse body language is more than useful. Understanding non-verbal cues from your colleagues, clients or competitors allows you to gain insight into their genuine sentiments and intentions —before they express them.

POSTURE AND STANCE

Open posture, such as uncrossed arms and legs, demonstrates confidence and readiness to engage. The reverse may indicate defensiveness, discomfort, or resistance. In a negotiation, detecting a movement from open to closed posture, or vice-versa, can tell you how your point is being received.

Leaning forward indicates attention and involvement, while leaning back can imply disinterest, boredom or cynicism. If you're proposing an idea and observe the other person leaning back, it may be time to change tack.

FACIAL EXPRESSIONS

Micro-expressions are fleeting and instinctive, but convey real feelings. Even though they last only a fraction of a second, they can provide you with real-time feedback.

A genuine grin (also known as a Duchenne Smile) conveys warmth and friendliness. A fake smile that involves only the mouth can indicate insincerity or discomfort; we smile with our eyes.

Direct eye contact shows confidence, honesty and involvement. However, too much might be viewed as forceful or confrontational; there is a balance to be struck, and it varies from country to country.

Rapid blinking can indicate stress, anxiety or pain. Dilated pupils can signal excitement or interest, but constricted pupils may reflect negative feelings.

GESTURES

Open-hand motions, particularly with the palms visible, convey honesty and openness. Pointing or closed fist movements might be seen as forceful or overly dominant.

Fiddling with pens or tapping your fingers can suggest anxiety or impatience. Recognise these indications in others to judge their emotional state — and adjust your conversational tone accordingly.

INFLUENCE

AND PERSUASION

Perfecting your own body language is essential for gaining a competitive advantage. The way you portray yourself has a huge impact on how people perceive you, and can help to persuade or project authority.

BUILDING TRUST AND RAPPORT

Subtly copying the other person's body language — known as mirroring — can help you build trust. It makes the other person feel understood, and connected to you. If they lean slightly forward, so should you.

Positive gestures such as nodding, smiling, and maintaining an open posture reinforce spoken messages. They encourage others to respond positively, resulting in a collaborative environment.

PROJECTING CONFIDENCE

Adopting power poses, like standing with feet shoulder-width apart and hands on hips, or sitting with arms stretched out, can boost your confidence and authority — and make others recognise it, according to social scientist Amy Cuddy.

Maintaining proper posture, with shoulders back and head held high, along with eye contact, conveys confidence and competence. Let body language help you to establish authority and earn respect.

PERSUASIVE AND INFLUENTIAL

Gestural framing — using your hands to accentuate crucial points — can enhance your message. Gestures that match your words add dynamic and engaging elements to your conversation.

Purposeful, controlled actions, such as striding slowly across the room or gesturing precisely, can communicate decisiveness and control. This is especially helpful in negotiations or presentations, where an air of calm authority can tip the scales in your favour.

PRACTICAL USES

Understanding and mastering body language has practical applications in commercial settings. Whether negotiating a transaction, leading a team or networking, it can improve your performance and outcome.

In negotiations, what you say with your posture can provide important information. The same is true for the person you are speaking to. If you observe them “closing" or their facial expressions tightening, there may be underlying resistance or discontent. This allows you to address problems before they escalate.

Adopting confident and open body language is vital in negotiations. Standing or sitting tall, keeping eye contact and using authoritative gestures can make you appear less likely to back down. This is especially beneficial in high-stakes negotiations where power dynamics play a major role.

TEAM MANAGEMENT

By exuding confidence and transparency via your body language, you can instil trust and respect in your team members. It goes a long way to creating a collaborative and supportive environment.

And paying attention to your team members' unspoken signs will help you recognise reasons for concern early on. Disengagement, such as lack of eye contact or a closed posture, may suggest unhappiness or a lack of motivation. Knowing this can help to keep your team productive and on track.

SALES AND CUSTOMER RELATIONS

First impressions are especially important in sales. A solid handshake, a sincere smile and confident posture can establish a positive tone with potential clients. Paying attention to your client's body language can reveal important information about their degree of interest or concerns they may have.

Recognising these indicators allows you to immediately address problems and tailor your approach. If you detect positive indicators, encourage them.

NETWORKING AND PERSONAL BRANDING

Events provide excellent opportunity to create contacts and leave a lasting impression. Adopting an open, friendly position and smiling will help you become more likeable and more easily remembered.

Your body language can be seen as part of your “personal brand”. Consistently expressing confidence will help to strengthen your reputation as a professional who is

approachable, knowledgeable and trustworthy. Over time, this might lead to new opportunities and collaborations, giving you a competitive advantage.

CULTURAL NUANCES

It's crucial to remember that these perceptions vary in different cultures. Understanding these differences is critical in today's globalised business world; it’s important to avoid misinterpretation or misunderstandings.

In certain cultures, direct eye contact may be considered unfriendly — or confrontational. Gestures that are good in one culture, such as a thumbs up, can mean something else entirely in another. Being aware of these variations, and altering your body language, might help you to negotiate cross-cultural conversations.

DRIVE BUSINESS SUCCESS

Every advantage counts, so let your understanding of all this help you to stand out. Learning to read non-verbal clues will provide you with deeper insights and allow you to respond intelligently.

As you hone this talent, you'll discover that it not only improves your communication skills, but also allows you to negotiate the complicated dynamics of the corporate world with comfort and confidence. i

> Eric Burdon, the Wild Animal with True Dedication to Music and Worthy Causes

Theleaderofthebandthatwonglobaladmirationand fandominthe1960sisstillkicking…andstillrocking.

In the 1960s world of rock’n’ roll, The Animals' legendary leader Eric Burdon epitomised an era's raw energy. His powerful voice, magnetic stage presence and willingness to push musical and cultural envelopes made him an icon of a golden age.

Eric Victor Burdon was born into a workingclass family in Newcastle upon Tyne, northeast England, in 1941. His first musical influences were the jazz and blues musicians of his hometown. It was a robust and raucous scene, and he was drawn to its raw emotion and countercultural commentary. Soon, he was performing himself — mostly in local bars.

Burdon formed The Animals in 1962, bringing together a group of excellent musicians. The band's blend of blues, rock and R&B matched well with Burdon's distinctive vocals, rapidly distinguished them from their contemporaries. Their breakthrough came in 1964, when they released the legendary single The House of the RisingSun.

The song's sweet but mournful melody, and Burdon's passionate delivery, captivated audiences around the world, catapulting the group to international success.

ANIMALSRISING

The Animals ' fame swiftly grew with singles like Don't Let Me Be Misunderstood, We Gotta Get Out of This Place, and It's My Life. The songs frequently addressed social and political themes, mirroring the charm and chaos of the age. Burdon's words addressed a generation's frustrations and fears with immediacy and sincerity.

On stage, Burdon was captivating. His frenetic energy and wild movements grabbed the crowd’s attention, and the emotional element to his performances made an indelible impression. The band's live performances were legendary, with extended improvisations and spontaneous interactions with the audience.

RIOTOUS TIMES

The 1960s were a cultural turmoil, and The

"His

magnetic stage presence and dedication to worthy causes still have allure, and he still boasts a loyal following. His reputation as a true original is as strong as ever."

Animals were at the vanguard of whatever this transformation was. Their music was the soundtrack of the era, and their rebellious attitude resonated with young people.

The Animals' demanding touring schedule and the strains of fame soon took a toll on the members. Burdon, in particular, grappled with the pressures of fame. His personal life was tumultuous, and he earned a reputation for his reckless lifestyle and sometimes inappropriate behaviour.

Internal conflicts led to disbandment in 1966. But Burdon wasn’t about to quit. He created a new band, Eric Burdon and the Animals, and continued to record until the late ‘60s and early ‘70s. The new ensemble experimented with a variety of styles, including psychedelic, funk, and soul.

SOLO CAREERS AND BEYOND

Burdon tried a solo career in the 1970s, knocking out a number of albums that demonstrated his versatility as a vocalist and lyricist. He worked with luminaries including Jimi Hendrix, War, and Carlos Santana. His output evolved as he jumped between genres and pushed boundaries.

Throughout his career, Burdon was a strong champion for social and political issues. He spoke out against war, bigotry and injustice, with his music mirroring his dedication to these causes. His lyrics continued to captivate listeners; he was still a force to be reckoned with. Burdon has never let up; he continues to perform

"His reputation as a pioneer is undiminished, and his influence can still be heard in the music of other performers."

and record at the age of 83. He has turned his hand to writing, penning an autobiography, entitled (perhaps predictably) Don't Let Me Be Misunderstood. His reputation as a pioneer is undiminished, and his influence can still be heard in the music of other performers.

Eric Burdon's contribution to the world of music has far outlasted his stint with The

Animals. His magnetic stage presence and dedication to worthy causes still have allure, and he still boasts a loyal following. His reputation as a true original is as strong as ever.

Burdon's life and work have not been all roses. He has lived both the highs of international success and the lows of personal hardship.

Throughout it all, he has remained committed to his artistic vision.

Putting the essence of Eric Burdon's life and career in a nutshell is all but impossible. His tale is one of passion, rebellion, and steadfast commitment. He is a true icon, whose music continues to inspire and thrill. A true wild Animal i

ANNOUNCING AWARDS 2024

AUTUMN HIGHLIGHTS

Once again CFI.co brings you reports of individuals and organisations that our readers and the judging panel consider worthy of special recognition. We hope you find our short profiles interesting and informative.

All the winners announced below were nominated by CFI.co audiences and

then shortlisted for further consideration by the panel. Our research team gathered additional information to help reach a final decision. In many cases, senior members of nominee management teams provided the judges with a personal view of what sets their companies and institutions apart from the competition.

As world economies converge we are coming across many inspirational individuals and organisations from developing as well as developed markets - and everyone can learn something from them. If you have been particularly impressed by an individual or organisation’s performance please visit our award pages at www.cfi.co and nominate.

KBC GROUP: BEST EUROPEAN BANK 2024

KBC Group continues to lead the European banking sector through its innovative bank-insurance model, delivering a solid net profit of €925m in Q2 2024. The group’s financial strength is underpinned by geographic diversification across Western and Central Europe and a balanced revenue stream from banking and insurance. This strategic mix, alongside proactive hedging and a CET1 ratio of 15.1 percent, has enabled KBC to consistently outperform market expectations. A key part of its digital-first approach is its AIdriven assistant, Kate, which has significantly

improved customer interaction. KBC’s innovative Kate Coins loyalty programme (initiated in 2023) has delivered close to three million coins to customers, redeemable for rewards and cashback. KBC Mobile, Belgium’s top banking app and ranked third globally, further strengthens its digital presence and enhances customer satisfaction. The group’s commitment to sustainability is evident in its alignment with the European Green Deal and recognition among the top 3 percent of global financial institutions for sustainable

practices. KBC has financed projects valued at €19.3bn for environmental objectives and €7.4bn for social goals, including investments in healthcare, education, and renewable energy. KBC remains at the forefront of anti-money laundering efforts, employing advanced AI to enhance security, regulatory compliance, and risk management across its various operations. And, as CEO Johan Thijs points out, “KBC is priced to perfection on the stock market”. The CFI.co Judging Panel applauds KBC Group on the 2024 award Best European Bank.

NASDAQ: MOST INNOVATIVE COMPLIANCE MANAGEMENT SYSTEM GLOBAL 2024

Nasdaq, a global leader in trading, clearing, exchange technology, listing, information, and public company services, has long been at the forefront of financial innovation. The company’s compliance management system exemplifies this commitment by offering a comprehensive and forward-thinking solution that addresses the increasingly complex regulatory landscape faced by organisations worldwide. Nasdaq’s system is designed to provide real-time surveillance, automated reporting, and sophisticated analytics, all of which are essential for firms seeking to maintain robust compliance frameworks. What sets Nasdaq

apart is its use of artificial intelligence and machine learning, which not only enhances the system’s predictive capabilities but also enables proactive risk management. This technology allows firms to anticipate and address potential compliance issues before they escalate, thereby safeguarding their operations and reputation. Furthermore, Nasdaq’s platform is highly adaptable, catering to the unique regulatory requirements of various markets and scalable to meet the needs of organisations of all sizes. The system's ability to integrate with existing infrastructures ensures seamless implementation and operation, minimising

SLAUGHTER & MAY: BEST CORPORATE & COMMERCIAL LEGAL TEAM UK 2024

disruption while maximising efficiency. Nasdaq's commitment to continuous improvement, bolstered by strategic partnerships, client feedback, and a deep understanding of market dynamics, ensures that its compliance management system remains a leading choice for firms aiming to navigate the complexities of global regulation. The company’s dedication to maintaining a secure, transparent, and efficient system is unmatched, contributing to its sustained leadership in the industry. The CFI.co Judging Panel congratulates Nasdaq on winning the 2024 award for Most Innovative Compliance Management System (Global).

Slaughter & May is an internationally acclaimed law firm, distinguished for its exceptional proficiency in corporate and commercial law. The firm, with its storied history and deeprooted expertise, advises some of the world’s most influential corporations on a wide range of complex legal matters. These include highstakes mergers and acquisitions, intricate corporate governance issues, and nuanced regulatory compliance challenges. What sets Slaughter & May apart is its ability to fuse traditional legal acumen with innovative

strategies, delivering bespoke solutions that address the specific needs of its clients. The firm’s approach is characterised by a thorough understanding of the industries in which its clients operate, enabling it to provide advice that is not only legally sound but also commercially astute. Slaughter & May’s multidisciplinary teams are adept at handling the intricacies of global markets, offering seamless legal services that transcend geographical boundaries. The firm’s commitment to excellence is evident in its rigorous attention to detail, its focus on

achieving the best outcomes for its clients, and its dedication to upholding the highest standards of legal practice. This commitment has earned Slaughter & May a reputation as a trusted adviser to leading businesses worldwide. The firm’s collaborative ethos, coupled with its emphasis on forging long-term client relationships, further enhances its standing as a leader in the legal industry. The CFI.co Judging Panel congratulates Slaughter & May on winning the 2024 award for Best Corporate & Commercial Legal Team (UK).

BEST EMERGING MARKETS DEBT MANAGER EUROPE 2024

According to the CFI.co judging panel, “This award recognises the company's excellence in navigating the complex landscape of emerging market debt investments, delivering consistent value and performance to its clients.” Arca Fondi SGR stands out as a leader in the field for several core reasons. The team boasts a wealth of experience within the emerging markets debt sector, with an in-depth understanding of global economic dynamics and the can identify unique opportunities in these markets. Arca Fondi SGR is recognised for its forward-thinking investment

BEST SME EQUITY FUND ITALY 2024

Arca Fondi SGR continues its outstanding CFI.co award winning streak. The judging panel recognises and applauds the company's dedication to fostering the growth of Italy's dynamic small and mediumsized enterprises (SMEs). The firm seeks out and invests in Italy's most promising SMEs, focusing on businesses with innovative ideas and strong growth potential. This approach drives economic vitality and positions Arca Fondi SGR at the forefront of supporting Italy's entrepreneurial ecosystem. The talented and dedicated Arca team has profound understanding of the SME

strategies. It leverages advanced analytics, prudent risk management, and a willingness to explore new investment avenues to deliver exceptional outcomes. The company places an emphasis on understanding clients' needs and tailoring investment solutions that match their risk profiles and long-term financial goals. This fosters relationships of trust and underscores a total commitment to transparency. The firm has been a pioneer in incorporating Environmental, Social, and Governance (ESG) factors into its emerging markets debt strategies, driving

responsible investing practices alongside positive financial outcomes. A commitment to the highest standards of investment management and enduring client-focus positions Arca as an industry leader. This was one of the first Investment Management Companies (SGR) founded in Italy and it has cherished the brand for over forty years, remaining faithful to the values that inspired the company’s foundation. A repeat-winner, the panel is delighted to confirm Arca Fondi SGR as 2024 winner of the award Best Emerging Markets Debt Manager (Europe).

landscape. Their experience and meticulous due diligence processes ensure investments are well-placed for long-term success. Tailoring solutions to each client's specific objectives remains of paramount importance. By meticulously assessing risk tolerance and investment horizons, Arca Fondi SGR empowers clients to participate in the exciting world of Italian SMEs, recognising the sector as the backbone of the national economy. Arca Fondi SGR's unwavering focus on innovation, expert guidance, and client-centricity solidify

its position as a leading player in the Italian SME investment arena. Promising clients and partners five-star service, CEO Ugo Loeser has pointed out that Arca’s award successes over the years vindicate its management approach and he believes that the firm’s long experience, commitment to clients, and drive for innovation are key elements in its success story. The judging panel agrees, and confirms Arca Fondi SGR, whose major shareholders are BPER Banca and Banca di Sondrio, as worthy 2024 winner of the award Best SME Equity Fund (Italy).

TMT Investments Plc, publicly quoted on the AIM market of the London Stock Exchange since 2010, offers investors unique exposure to high-growth, private companies within the global technology sector. The company has built a diversified portfolio of over 50 investments, focusing on key technology segments such as Big Data/ Cloud, SaaS, Mobility, and FinTech. TMT targets companies with strong growth potential, scalable products, and competent management teams, typically investing at Series A or Pre-Series A stages. Its investment criteria include a minimum

revenue threshold of US$100,000 per month, ensuring that companies are already generating significant income. TMT’s strategic approach has yielded notable success, with 19 profitable full and partial exits since inception, contributing to a since-inception internal rate of return (IRR) of 15.3 percent. TMT’s portfolio companies have attracted over US$2.4bn in external investment, reflecting the confidence of over 20 major venture capital firms. TMT’s portfolio has continued to grow, with key companies reporting a 30 percent increase in combined revenues in 2023

compared to the previous year. As of 30 June 2024, TMT’s net asset value per share stood at US$6.62, unchanged from the end of 2023, with total investments valued at US$199.7m. With its proven track record, TMT offers shareholders the liquidity of a publicly traded company plus access to promising technology ventures, democratising opportunities that are often hard to reach, due to market barriers. The CFI.co Judging Panel congratulates TMT Investments on winning the 2024 award Visionary Leaders in Global Tech Venture Capital (Europe).

NATIONAL BANK OF GREECE: BEST CORPORATE GOVERNANCE GREECE 2024

The National Bank of Greece has consistently demonstrated a steadfast commitment to upholding exemplary corporate governance standards, which has been a cornerstone of its enduring success. The bank's strategic initiatives, including its comprehensive five-year transformation programme, have significantly enhanced its operational efficiency, market competitiveness, and long-term sustainability. In 2022, the bank successfully exited its restructuring plan, signalling a pivotal shift towards a more extroverted business phase. This new phase is marked by strategic partnerships with leading technology firms such as Evo Payments, aimed at expanding and enhancing the bank’s corporate client offerings. The National Bank of Greece has continued to strengthen its governance framework, continuously reviewing among others its governance arrangements in alignment to best practices and proceeding to initiatives, such as the establishment of an Innovation & Sustainability Committee. This committee is tasked with

monitoring emerging industry trends and providing respective feedback to the board of directors, with the aim of remaining abreast of developments and innovations affecting the banking sector and promoting long-term sustainability. The bank’s board has played an active role in overseeing all important developments, such as for instance the successful divestment of a 22 percent shareholding by the Hellenic Financial Stability Fund during 2023 and another 10 percent during 2024, which reflects the bank's robust governance structures. Additionally, the bank has made significant strides in improving board diversity and continues to prioritise governance as it navigates the evolving financial landscape, focusing on sustainable growth and innovation. The National Bank of Greece’s adherence to the highest standards of corporate governance underscores its leadership in the sector. The CFI.co Judging Panel heartily congratulates the National Bank of Greece on winning the 2024 award for Best Corporate Governance (Greece).

BERENBERG: BEST STRATEGIC ASSET ALLOCATION & ASSET LIABILITY MANAGEMENT TEAM GERMANY 2024

Berenberg, Germany’s oldest privately owned bank, has been at the forefront of strategic investment advice for over two decades. The Berenberg Investment Consulting team has consistently delivered customised strategic asset allocation (SAA) and asset liability management (ALM) studies, leveraging cutting-edge technology and innovative tools to serve a diverse clientele, including institutional investors, corporate pensions, single family offices, endowments, and ultra-high-net-worth individuals (UHNWIs). Its platform, managing approximately 40 billion euros in assets, is renowned for efficiency and rapid delivery, significantly outpacing industry standards. The team’s new SAA & ALM Innovation Hub, featuring an interactive dashboard, enables real-time collaboration with senior consultants, providing detailed analyses of various asset allocation strategies. This state-of-theart tool integrates macroeconomic stress scenarios, developed in collaboration with the University of

Copenhagen, to offer unparalleled insights into potential risks and outcomes. The sophisticated backend system simulates long-term asset and liability trajectories, allowing for precise modelling and optimisation of investment strategies. Furthermore, the platform’s proprietary sustainability database provides comprehensive carbon impact assessments, helping investors align their portfolios with regulatory requirements and environmental goals. Combining academic research with practical expertise, Berenberg delivers exceptional value and thought leadership, consistently enhancing its technological infrastructure to meet evolving needs. The group attributes much of its success to lessons from the traditional bank, especially its emphasis on relationship management and customer relations. The CFI.co Judging Panel congratulates Berenberg on winning the 2024 award Best Strategic Asset Allocation & Asset Liability Management Team (Germany).

TGE POLISH POWER EXCHANGE: BEST COMMODITIES EXCHANGE ESG STRATEGY EUROPE 2024

TGE Polish Power Exchange is Poland’s leading commodities trading platform, distinguished by its robust integration of environmental, social, and governance (ESG) principles. The exchange has embedded ESG considerations into its core operations, aligning seamlessly with regulatory frameworks and advancing technical capabilities. TGE has been supporting the energy transformation for years by offering guarantees of origin for renewable energy and cogeneration. In the future, Polish Power Exchange also plans to enable trading guarantees for heat, cold, biomethane and hydrogen. This proactive stance is evident in its engagement with both national and international regulatory bodies, where TGE advocates for enhanced market transparency and the promotion of sustainable practices. The exchange’s commitment to ESG extends beyond compliance, reflecting a deep-seated organisational culture that prioritises social responsibility and environmental stewardship. TGE’s strategic initiatives

include developing indices for renewable energy sources and creating innovative products that drive sustainability, thereby contributing to the broader goals of energy transition within Europe. Additionally, TGE is eager to share its knowledge with other players. In September 2023, TGE signed an agreement with the Ukrainian Energy Exchange to strengthen cooperation and exchange experience in the development of the exchange market in Ukraine. TGE’s holistic approach ensures that it not only meets but consistently exceeds the expectations of a modern commodities exchange, positioning it as a global leader in the adoption of sustainable practices. This comprehensive strategy underpins its operational resilience and long-term growth, securing its place at the forefront of the industry. The CFI.co Judging Panel congratulates TGE Polish Power Exchange on winning the 2024 award for Best Commodities Exchange ESG Strategy (Europe).

AXA IM SELECT (AXA INVESTMENT MANAGERS LTD):

AXA IM Select, a multi-manager specialist within AXA Investment Managers, delivers diverse investment solutions across asset classes, sectors, and regions. The firm manages and advises on €32.5bn in assets as of June 2024, utilising an open-architecture model to provide clients with access to top-performing fund managers. AXA IM Select was created through the 2024 rebranding of Architas, consolidating all investment capabilities under AXA IM to enhance the company’s client offerings and simplify operations. AXA IM Select

benefits from the global reach and expertise of AXA Group, ensuring its clients receive innovative and robust investment solutions. The firm operates in 12 countries, focusing on discretionary and advisory portfolios that offer diversification and help reduce volatility.

AXA IM Select is committed to responsible investing, with a strong emphasis on delivering long-term value for both clients and the broader community. The company is particularly dedicated to serving retail clients, demystifying investment strategies and simplifying complex

financial products while ensuring clarity and transparency in every offering. The company’s strategy is focused on key themes such as performance and growth, excellence, resilience and responsibility. This focus on multi-manager solutions, combined with its global capabilities and strong operational framework, allows AXA IM Select to meet the evolving needs of its clients effectively. The CFI.co Judging Panel congratulates AXA IM Select on winning the 2024 award for Best Multi-Manager Investment Solutions (Global).

BNP PARIBAS FORTIS: OUTSTANDING CONTRIBUTION TO SME FINANCING BENELUX 2024

BNP Paribas Fortis is a key player in the Belgian banking sector with a rich history spanning over 200 years. As a leading bank in the region, it has demonstrated a steadfast commitment to supporting small and medium-sized enterprises (SMEs) across Belgium. The bank’s extensive network ensures comprehensive coverage and exceptional service, making it a market leader in Belgium. BNP Paribas Fortis excels in providing tailored financial solutions to SMEs, leveraging its deep understanding of local markets and the unique needs of family-owned businesses. The

bank's strategic location in the heart of Europe, coupled with its strong presence in international trade and logistics, positions it as a pivotal partner for Belgian SMEs engaged in import and export activities. With a robust portfolio that includes sustainability initiatives, private equity investments, and cutting-edge digital platforms, BNP Paribas Fortis addresses both the immediate and long-term needs of its clients. Its dedicated teams of seasoned relationship managers and advisors work closely with clients, offering bespoke solutions and maintaining strong,

stable relationships. The bank's commitment to ESG compliance further underscores its role as a forward-thinking financial institution. The panel points out that, In addition to supporting business needs, BNP Paribas Fortis also provides comprehensive services for private clients, particularly those involved in familyowned businesses facing succession and acquisition challenges. The CFI.co Judging Panel congratulates BNP Paribas Fortis on winning the 2024 award Outstanding Contribution to SME Financing (Benelux).

Kathrein Privatbank, a distinguished Austrian institution, has reinforced its position as a premier provider of private banking services by continuing to innovate and refine its offerings. Over the past year, the bank has successfully restructured its family office services, focusing on wealth structuring and succession planning to better support families and enterprises. This restructuring included expanding its team to meet the increasing demand for tailored financial solutions. Additionally, Kathrein Privatbank has enhanced its compliance operations, responding proactively to new regulatory requirements in

Austria. The bank’s commitment to sustainable investing remains strong, with its global sustainable equity funds receiving prestigious German awards for exceptional performance and overall impact. It has also made significant strides in increasing transparency and client engagement, particularly through its website, which features enhanced disclosures and adherence to EU key information document (KID) standards. In terms of digital innovation, Kathrein is preparing to launch an advanced e-banking app, scheduled for 2025, aimed at improving customer convenience. Beyond its

domestic market, the bank is expanding its operations in Central Europe, with a growing presence in the Czech Republic, Slovakia, and Poland. This regional expansion is supported by an enlarged private banking team, signalling Kathrein’s ambitions for further growth across the broader European market. With its focus on sustainable investment, enhanced client services, and regional expansion, Kathrein Privatbank continues to lead in private banking excellence. The CFI.co Judging Panel congratulates Kathrein Privatbank on winning the 2024 award for Best Private Bank (Austria).

> KATHREIN PRIVATBANK: BEST PRIVATE BANK AUSTRIA 2024

> I&M BANK (RWANDA) PLC: BEST BANK RWANDA 2024

I&M Bank (Rwanda) Plc, established in 1963, is the oldest operational bank in Rwanda and has consistently demonstrated its commitment to national economic development. Over the years, the bank has expanded its services to cater to individuals, businesses, institutions, and corporations, focusing on innovation and customer satisfaction. The bank has embraced digital transformation, offering a cutting-edge platform that enhances financial inclusion and convenience for customers. Innovations such as automated loan applications and cardless transactions have positioned the bank as a leader in digital banking services in the region. I&M Bank has also played a pivotal role in supporting small and medium-sized enterprises (SMEs) by providing tailored financial solutions and grants, in collaboration with international development partners, to foster job

creation and sustain economic growth. In 2023, the bank reported a 16 percent increase in profits before tax, driven by improved operational efficiency and asset quality. Additionally, I&M Bank maintains a strong liquidity position, with a coverage ratio of 504 percent, reflecting its prudent risk management and resilience in the face of economic challenges. The bank has been recognised for its role in bolstering Rwanda’s point-of-sale market and driving digital payment adoption. I&M Bank’s approach to customer engagement has also seen year-on-year growth in its retail and corporate sectors. Its focus on financial inclusion, SME growth, and customer-centric innovation has cemented its reputation as a trusted financial institution in Rwanda. The CFI.co judging panel congratulates I&M Bank (Rwanda) Plc on winning the 2024 award for Best Bank (Rwanda).

BEST DIGITALISATION STRATEGY NORTH AFRICA 2024

BIAT has firmly positioned itself as a leader in the digital transformation of Tunisia's banking sector, driven by a strategic focus on modernisation and customer-centric innovations. Over nearly three decades, the bank has continually adapted to the evolving needs of its clients, particularly within the young and dynamic demographic of Tunisia. The bank’s digitalisation strategy forms a critical part of its broader modernisation project, which includes the renewal of IT infrastructure and the reconfiguration of its branch network. This digital overhaul is

designed to enhance the client experience by streamlining processes and offering more sophisticated advisory services. Additionally, BIAT has established a dedicated Skills Development Centre to support its human capital strategy, underscoring the importance of continuous professional development and training in a rapidly changing environment. This initiative not only rejuvenates the workforce but also ensures that employees are wellequipped to meet the demands of the digital era. As part of its commitment to fostering

talent, BIAT offers comprehensive training programmes, including certification courses for SME account managers, ensuring that its team remains at the forefront of industry standards. The bank's forward-thinking approach to both technological and human capital development highlights its commitment to maintaining its competitive edge in the region. BIAT’s efforts have made a significant impact on the banking landscape. The CFI.co Judging Panel congratulates BIAT on winning the 2024 award for Best Digitalisation Strategy (North Africa).

BEST BANK GOVERNANCE AND OUTSTANDING CONTRIBUTION TO YOUTH DEVELOPMENT TUNISIA 2024

BIAT, Tunisia's foremost private bank, has cemented its reputation through a steadfast commitment to innovation, governance, and the empowerment of youth. The bank is undertaking a comprehensive IT renewal project, a cornerstone of its strategy to digitise operations and enhance customer experience. This digital transformation is further supported by a major network modernisation initiative, reshaping traditional banking by focusing on digitalisation and delivering clientcentric services. Understanding the importance of human capital, BIAT has established a cutting-

edge Skills Development Centre, dedicated to the training and certification of its workforce, with a particular emphasis on younger recruits. This centre is integral to BIAT's broader HR vision, aimed at rejuvenating its workforce to better align with Tunisia’s predominantly young population. BIAT’s governance principles are also reflected in its ambitious headquarters modernisation project, which focuses on creating open, collaborative spaces that foster innovation and productivity. The bank’s forward-thinking approach is underpinned by a profound understanding of its

clients' evolving needs and the broader socioeconomic landscape, allowing it to maintain strong client relationships while driving national progress. BIAT’s strategic initiatives, from IT and network modernisation to human capital development, demonstrate a holistic approach to governance that positions the bank as a leader in both the financial sector and the national effort to empower Tunisia’s youth. The CFI.co Judging Panel congratulates BIAT on winning the 2024 award for Best Bank Governance and Outstanding Contribution to Youth Development (Tunisia).

JAIZ BANK: BEST ISLAMIC BANK NIGERIA 2024

Jaiz Bank Plc, Nigeria's leading non-interest bank, has consistently demonstrated significant growth and outstanding achievements. Founded in 2012, Jaiz Bank has rapidly expanded from its initial three branches to over 50 branches across Nigeria, reflecting its robust growth strategy and commitment to ethical banking principles. The bank's financial performance has been impressive, with gross earnings rising by 42 percent from ₦33.2bn in 2022 to ₦47.2bn in 2023, and profit before tax increasing by 66.7 percent from ₦6.63bn to ₦11.05bn in

financial management. The bank's assets also grew significantly, with the balance sheet expanding by 52.7 percent from ₦379.82bn in 2022 to ₦580.13bn in 2023, further demonstrating its financial stability and growth trajectory. Jaiz Bank's strategic vision aims to position it as the leading ethical bank in Africa by 2027. This includes substantial investments

CRC CREDIT BUREAU LTD: BEST CREDIT BUREAU NIGERIA 2024

in digital banking and fintech, enhancing customer experience, and expanding its branch network to meet the growing demand for noninterest banking services. The bank's focus on ethical financial services, its customer-centric approach, and truly innovative product offerings have solidified its reputation as a trailblazer in Nigeria's banking sector. Jaiz Bank’s dedication to excellence ensures it remains a leading force in the industry. The CFI.co Judging Panel congratulates Jaiz Bank on winning the 2024 award for Best Islamic Bank (Nigeria).

In 2023, CRC Credit Bureau Ltd embarked on numerous transformative initiatives to enhance its core infrastructure, service capabilities, and security measures. A key milestone was the implementation of advanced security protocols, including a Cloud Web Application Firewall, significantly bolstering data protection. The adoption of a hybrid cloud strategy, leveraging AWS Local Zone in Nigeria, enabled seamless scalability and improved performance. Continuous optimisation efforts of the core application SB2, in collaboration with Dun & Bradstreet, further elevated user experience. Additionally,

CRC introduced the CRC B-C-B API, facilitating secure credit data requests by third-party service providers, and launched CRC RaaS (Reseller as a Service), integrating CRC services into member institutions' applications. The relaunch of the CRC mobile app provided users with convenient access to their credit reports, promoting financial literacy and informed decision-making. The expansion of CRC's institutional network by approximately 200 new members highlighted the trust and confidence in CRC’s services.

Zambia National Building Society (ZNBS) is a leader in Zambia’s housing finance sector, with over 50 years of experience. ZNBS operates across all provinces, offering a wide range of affordable mortgage products, including diaspora mortgages, unsecured housing loans, and financing for bare land. In recent years, ZNBS has introduced innovative solutions such as group mortgages, enabling multiple applicants to share a mortgage, and alternative energy financing, which helps homeowners adopt solar energy. The organisation is deeply committed to affordable housing, having

feature over 135 serviced plots. By acquiring land banks and developing infrastructure, ZNBS aims to reduce housing costs and unlock economic potential for more Zambians. Their efforts have not only contributed to reducing Zambia’s housing deficit but also created jobs, with an estimated 1800 temporary jobs generated through construction activities

behaviours. CRC received notable accolades, including the Best Credit Bureau in Nigeria and the Best Customer Service Award at the West Africa Innovation Awards. Surpassing over 100 million records in its database marked a significant achievement, enhancing CRC’s capacity to deliver actionable insights. Active participation in industry events underscored CRC's commitment to thought leadership and industry engagement. The CFI.co Judging Panel congratulates CRC Credit Bureau Ltd on winning the 2024 award for Best Credit Bureau (Nigeria) given these remarkable achievements.

last year. As ZNBS continues to innovate and expand its offerings, it remains committed to sustainable development, integrating green building practices to reduce environmental impact and promote long-term environmental stewardship. With a 23 percent growth in its mortgage portfolio over the past year, ZNBS continues to lead the market with its customer-centric approach and innovative financing solutions. The CFI.co Judging Panel congratulates Zambia National Building Society on winning the 2024 award for Best Mortgage Provider (Zambia).

> ZAMBIA NATIONAL BUILDING SOCIETY: BEST MORTGAGE PROVIDER ZAMBIA 2024

> AFRICAN TRADE & INVESTMENT DEVELOPMENT INSURANCE (ATIDI): OUTSTANDING INNOVATORS IN TRADE AND DEVELOPMENT INSURANCE AFRICA 2024

ATIDI, legally known as the African Trade Insurance Agency, is a pioneering pan African multilateral insurer, providing trade & investment insurance aimed at boosting sustainable economic development across Africa. The organisation plays a pivotal role in mitigating political and commercial risks for businesses and investors on the continent. Over recent years, ATIDI has prioritised digital transformation, accelerating the adoption of advanced technologies during and after the pandemic to better serve clients. ATIDI covers risks such as expropriation, non-payment by governments, state-owned companies & corporates, non-honouring of sovereign and subsovereign obligations, currency inconvertibility and embargoes. By embracing digital platforms, and improving internal systems, ATIDI has significantly enhanced the speed and accuracy of underwriting, risk assessments, and client interactions. The organisation also promotes innovation through partnerships with emerging insurance technology (insurtech) providers. Additionally, ATIDI has

> MAC SA

been instrumental in infrastructure development & facilitating green energy projects through its Regional Liquidity Support Facility (RLSF), a guarantee instrument to renewable energy IPPs that sell the electricity generated by their projects to state-owned power utilities. The organisation has strategically positioned itself to support the African Continental Free Trade Area (AfCFTA), enhancing regional trade and contributing to Africa’s economic resilience. ATIDI’s commitment to helping small and medium-sized enterprises (SMEs) to overcome financing barriers also underscores its mission to foster inclusive growth across the continent. ATIDI is one of the highest rated institutions in Africa with an ‘A/Stable’ by Standard & Poor’s and ‘A2/Stable’ rating from Moody’s. ATIDI continues to expand its membership base and geographical reach leading to a more diversified portfolio and stronger capital adequacy, and good profitability. The CFI.co Judging Panel congratulates ATIDI on winning the 2024 award for Outstanding Innovators in Trade and Development Insurance (Africa).

BEST STOCKBROKER TUNISIA 2024

MAC SA stands out as a prominent player in the Tunisian financial sector, offering a comprehensive range of investment solutions including asset management, stock brokerage, corporate finance, investment research and private equity. The company’s expansion extends to West Africa, where its Ivorian subsidiary has made significant strides in the WAEMU region, further solidifying MAC SA ‘s regional influence

and reach. To meet the evolving needs of its clients and to pursuit international growth, MAC SA is applying for a license in Paris to establish itself as a global brand, enhancing North-South investment flows between Europe, Africa and the Middle East. The company also intends to acquire a fund management startup to accelerate its development. To enhance its research capabilities, MAC SA will

BEST ASSET MANAGEMENT TEAM TUNISIA 2024

MAC SA, a leading Tunisian Financial services group, has cemented its reputation over three decades. With over $300 m in assets under management, the firm is recognized as one of Tunisia’s top asset management companies, driven by a strong commitment to innovation and client-focused services. Its flagship fund, FIDELITY SICAV PLUS, has consistently delivered superior risk-adjusted returns, earning multiple industry awards and accolades for outstanding performance. Demonstrating a commitment to innovation and with a customer

satisfaction-oriented strategy, the company has recently launched a loyalty program for its clients who subscribe to FIDELITY SICAV PLUS, a credit card that allows them to access their savings at any time, along with a life insurance policy offering a capital of 20,000 Tunisian dinar in case of disability or death. This initiative aims not only to retain existing clients but also to attract more investors and savers to a product that is not widely known, despite being the current top-performing savings product with a low level of risk. The success of MAC SA and

partner with an international research Firm to broaden its research coverage across Africa and middle east. This strategic move positions the firm as a bridge connecting investors across these regions. The CFI.co judging panel congratulates MAC SA on winning the 2024 award for stockbroker (Tunisia), celebrating its unwavering dedication to excellence and strategic growth ambitions.

its strong performance both in its home market and beyond is due to a skilled and efficient team with a strong sense of belonging. Moreover, MAC SA's independence allows it to provide objective advisory services free from conflicts of interest, while its flexibility and responsiveness to market trends enable it to adapt swiftly and meet evolving client needs in the financial sector. In 2024, for the second consecutive year, the CFI.co judging panel warmly congratulates MAC SA on winning the 2024 award for best asset management team (Tunisia).

IBM: BEST SHAREHOLDER ENGAGEMENT UNITED STATES 2024

IBM, a renowned global leader in technology and innovation, consistently excels in corporate governance and shareholder relations. With over a century of experience, the company has developed a robust framework for engaging with its shareholders, reflecting a deep commitment to transparency, accountability, and long-term value creation. IBM’s investor relations strategy is built on clear, consistent communication, ensuring that shareholders receive timely and accurate information about the company’s financial performance, strategic initiatives, and market positioning. This approach includes detailed quarterly earnings reports, insightful

annual general meetings, and frequent investor calls that provide shareholders with direct access to senior management. IBM also harnesses cutting-edge technology to enhance its engagement efforts, offering interactive digital platforms that allow shareholders to stay informed and involved. The company’s proactive engagement extends to addressing shareholder concerns, fostering a dialogue that ensures their perspectives are considered in decision-making processes. IBM’s commitment to sustainability and ethical practices further strengthens its relationship with shareholders, aligning corporate actions with broader societal values.

In a rapidly changing business environment, IBM’s ability to adapt and evolve its shareholder engagement strategies underscores its leadership in this crucial area. The company’s dedication to maintaining high standards of governance, transparency, and communication has solidified its reputation as a trusted partner for investors globally. IBM’s consistent focus on ethical governance and its responsive approach to shareholder needs have made it a model of excellence in the industry. The CFI.co Judging Panel congratulates IBM on winning the 2024 award for Best Shareholder Engagement (United States).

JPMORGAN CHASE & CO: BEST PAYMENT DIGITAL TRANSFORMATION STRATEGY GLOBAL 2024

JPMorgan Chase & Co, a prominent global financial services provider, has established itself as a pioneer in the realm of payment innovation, consistently leading the industry with its forward-thinking digital transformation strategy. The company has effectively harnessed the power of emerging technologies, such as blockchain, artificial intelligence, and machine learning, to revolutionise its payment systems, ensuring that transactions are not only faster but also more secure, transparent, and efficient. This strategic approach has allowed JPMorgan Chase & Coto optimise operational

efficiencies, significantly reduce costs, and deliver superior customer experiences across a diverse range of markets and industries worldwide. The firm's focus on innovation is further underscored by its significant investments in fintech and its strategic partnerships with technology leaders, which have collectively enhanced its ability to offer cutting-edge payment solutions tailored to the evolving demands of global commerce. Furthermore, JPMorgan Chase & Co’s robust digital infrastructure supports seamless crossborder transactions, addressing the complexities

> QIC GROUP: BEST INSURANCE LEADERSHIP GCC 2024

of international trade and finance while maintaining compliance with stringent regulatory requirements and industry best practices globally. By continuously adapting to the dynamic landscape of global finance, the company has solidified its position as a leader in digital payment transformation. The CFI.co Judging Panel recognises JPMorgan Chase & Co’s unwavering commitment to excellence in this domain. The CFI.co Judging Panel congratulates JPMorgan Chase & Coon winning the 2024 award for Best Payment Digital Transformation Strategy (Global).

QIC Group, a leader in the GCC insurance market, has demonstrated remarkable growth and adaptability. Through strategic restructuring, the company has balanced its risk platform, achieving an equal split between reinsurance and direct insurance. Direct insurance operations, particularly in Dubai, have expanded significantly, growing from QAR 500m to over QAR 2bn in recent years. The Group’s digital transformation has been pivotal, with the implementation of advanced AI solutions and dynamic pricing models to improve customer service, boost efficiency, and enhance conversion rates. QIC has also

broadened its international footprint with operations spanning the UK, UAE, Oman, Kuwait, Zurich, Singapore, Malta, Bermuda and Gibraltar. Notably, the company has enhanced its solvency ratio, reflecting financial strength, and transitioned its international operations from loss-making to profitability. In response to evolving market demands, QIC has launched innovative products such as cyber insurance and expanded its life insurance offerings, catering to individuals and SMEs. The Group’s commitment to ESG and sustainability aligns with Qatar’s Vision 2030, while its social contributions,

including sponsorship of local sports and other initiatives, further strengthen its community presence and engagement. With a focus on maintaining value for shareholders, QIC has optimised its investment portfolio, securing stable returns through fixed income assets, bonds, and strategic investments in various sectors. The company’s market capitalisation has increased by 50 percent, reflecting the market's confidence in its transformative efforts and future growth prospects. The CFI. co Judging Panel congratulates QIC Group on winning the 2024 award for Best Insurance Leadership (GCC).

BARROW HANLEY: BEST GLOBAL

Founded in 1979, Barrow Hanley delivers competitive performance based on a singular focus of value investing. It partners with corporate clients and institutional investors to execute their vision and achieve their financial objectives. It relies on principled practices and 50-person team of dedicated investment professionals dealing with clients around the world including Asia, Africa, Australia, US, and Europe. The US investment firm is globally active, with 14 value equity strategies and 14 fixed-income strategies delivering proven performance. As of March 2024, Barrow Hanley stewards clients’ capital to the tune $51.6b in AUM. On the equity side, Barrow Hanley prioritises value stocks of companies, focusing on US, global and emerging market equities across

VALUE

INVESTMENT PARTNER US 2024

all capitalisations. The firm launched its first ESG-driven strategy in 2017. The fixed-income portion of its portfolio comprises corporate bonds, treasury inflation protected securities, mortgage securities and alternative US government issues with intermediate and long-term turnaround. It backs assets with the potential to produce higher returns with lower volatility.

Barrow Hanley favours a bottom-up approach to portfolio management that’s strengthened by fundamental and quantitative analysis and benchmarked against major indices.

The firm’s investment universe spans multiple sectors, including creditfocused vehicles and customised investment solutions. The CFI.co judging panel presents Barrow Hanley with the 2024 award for Best Global Value Investment Partner (US).

RESERVE BANK OF EL SALVADOR: BEST CENTRAL RESERVE BANK CENTRAL AMERICA 2024

The Central Reserve Bank of El Salvador has introduced important innovations, enhancing financial inclusion and modernising the nation’s infrastructure. As the first public institution in El Salvador certified to issue digital electronic signatures, the bank offers this service at the region’s lowest price, making it more accessible to the population. In 2023, the bank successfully carried out the country’s first fully digital Population and Housing Census in 17 years, a feat praised by international organisations. The introduction of Transfer365 has revolutionised crossborder transactions, reducing costs for Salvadorans and businesses, and saving over $1.8m in fees. The bank also implemented a groundbreaking system that clears interbank cheques in under four hours, the fastest in the Americas. In financial education, it

launched an interactive mobile programme, teaching over 10,000 children across El Salvador the basics of banking and digital payments. The bank’s commitment to social responsibility includes scholarships for students and regulatory changes to ease financial procedures for retirees. The institution has been recognised for its high standards, maintaining certification for internal auditing and receiving the Diamond Award for Excellence and Quality. The Central Reserve Bank has also earned a Great Place to Work certification, with 92 percent of employees rating it highly. These achievements reflect its ongoing efforts to drive progress in El Salvador’s financial system. The CFI.co Judging Panel congratulates the Central Reserve Bank of El Salvador on winning the 2024 award for Best Central Reserve Bank (Central America).

PPS PORTFOLIO PERFORMANCE: BEST INVESTMENT SERVICES FOR PENSION FUNDS BRAZIL 2024

PPS Portfolio Performance, founded in 1996, is highly regarded in Brazil for its expertise in serving pension funds and institutional investors. The firm’s pioneering development of Brazil’s first proprietary portfolio analysis software has evolved into a powerful tool for both quantitative and qualitative performance evaluation. Maintaining independence from banks and financial institutions, PPS ensures unbiased investment advice. PPS was instrumental in introducing dynamic stochastic optimisation models for asset liability management (ALM), benefiting numerous pension funds in optimising returns and managing risk. Led by CEO Everaldo França and senior consultant Rafael Sampaio, PPS offers comprehensive training on investment policies and portfolio management. Both França and Sampaio train pension fund managers and

board members at UniAbrapp, the educational branch of Brazil’s Association of Pension Funds.

In addition to his role at PPS, França serves as an independent member of the Investments Committee at Petros, Brazil’s second-largest pension fund, and is Chairman of the Board at São Paulo City Municipal Pensions Institute. He is also dedicated to community work, mentoring lowincome students at the Polytechnic School of São Paulo University and serving on the board of Casa da Paz, an NGO focused on children’s education in São Paulo’s underprivileged areas. Over the past year, PPS increased its client base by ten percent, demonstrating resilience and adaptability within a complex financial landscape. The CFI.co Judging Panel congratulates PPS Portfolio Performance on winning the 2024 award for Best Investment Services for Pension Funds (Brazil).

RATCH GROUP: ESG FINANCING CHAMPION FOR RENEWABLE ENERGY PROJECTS APAC 2024

RATCH Group has emerged as a leader in sustainable financing, with a strong focus on supporting renewable energy projects across the Asia-Pacific region. The company, which is based in Thailand, is committed to driving growth in its green energy portfolio, targeting a significant increase in renewable energy capacity over the coming years. RATCH has successfully secured financing through various innovative methods, including the issuance of green private debentures. These efforts have been bolstered by collaborations with governmental institutions such as the Government Pension Fund, marking

a first for Thailand, as well as partnerships with local banks. Awarded “Refinance Deal of the Year” by the IJGlobal Awards 2022, RATCH successfully refinanced green loans for three renewable projects in Australia: the 226.8 MW Collector wind power plant, the 180.5 MW Mount Emerald wind power plant, and the 42.5 MW Collinsville solar power plant. The 180 MW Asahan-1 hydroelectric power plant in Indonesia also earned a similar accolade. The group has built a robust pipeline of renewable energy projects across multiple countries, including Thailand, the Philippines, Vietnam,

FBS: OUTSTANDING TRADING EDUCATION ASIA 2024

FBS, a licensed global broker established in 2009, has become a leading platform with over 27 million traders and 700,000 partners worldwide. FBS offers a wide range of trading instruments, efficient order execution, and comprehensive client support. The company's trading education resources, including the FBS Academy, webinars, articles, and daily market analytics, are tailored for all skill levels, empowering traders to navigate financial markets confidently. The FBS mobile app enhances the trading experience by providing access to over 550 instruments, seamless transactions,

and an efficient trading environment. The FBS Partnership Program rewards partners for client acquisition, while the company ensures a secure trading environment with negative balance protection, flexible leverage up to 1:3000, and 24/7 multilingual support. Additionally, FBS’s commitment to innovation is reflected in its user-friendly platforms, advanced trading technologies, and focus on client education. Initiatives such as the Trader’s Blog, interactive webinars, and market analysis sessions provide clients with crucial insights and strategies to stay ahead in the fast-paced

BSE Ltd, formerly known as the Bombay Stock Exchange, is a crucial player in India’s financial markets and among the world’s fastest stock exchanges. Since Mr Sundararaman Ramamurthy took over as Managing Director and Chief Executive Officer in January 2023, BSE has achieved significant progress in brand repurposing, product diversification, technological upgrades, and boosting employee morale and investor confidence. The relaunch of the equity derivatives segment has been particularly noteworthy, as BSE increased its market share from 0 percent to

25 percent within 21 months, setting multiple records and becoming the second-largest derivatives exchange globally, according to the Futures Industry Association report. The exchange has also enhanced its mutual fund infrastructure through the STAR MF platform, which processed a peak monthly demand of 53 million orders in FY25, up from 44 million in FY24 and 26 million in FY23. Additionally, BSE expanded its index business by acquiring S&P Dow Jones Indices' stake in Asia Index Private Limited, making it a wholly owned subsidiary. This acquisition strengthens

and Australia. Recently, RATCH announced that its 74.2 MW Calabanga solar power plant in the Philippines commenced operations in August 2024, with its 145 MW Bacolod Solar Power Project set to begin construction by October 2024. By maintaining a proactive approach towards Environmental, Social, and Governance (ESG) criteria, RATCH continues to attract investment for its clean energy initiatives. The CFI.co Judging Panel congratulates RATCH Group on winning the 2024 award for ESG Financing Champion for Renewable Energy Projects (APAC).

trading world. FBS also prioritises data security, protecting accounts and personal information from potential threats, and offers over 200 payment methods, ensuring that nothing stands between clients and markets. Furthermore, the panel points out that FBS’s emphasis on continuous improvement and client satisfaction underscores its position as trusted broker. These efforts demonstrate FBS’s dedication to fostering a knowledgeable and thriving trading community. The CFI.co Judging Panel congratulates FBS on winning the 2024 award for Outstanding Trading Education (Asia).

BSE’s position in the index business, further diversifying its offerings. BSE is committed to maintaining employee morale, boosting investor confidence, and delivering growth by leveraging technology, pursuing ambitious goals, and fostering a vibrant workforce. It continues to attract foreign investors and strengthen ties with global market participants, cementing its leadership in India’s evolving financial markets. The CFI.co Judging Panel congratulates BSE Ltd on winning the 2024 award for Champions of Capital Market Innovation and Efficiency (Asia).

> BSE LTD: CHAMPIONS OF CAPITAL MARKET INNOVATION AND EFFICIENCY ASIA 2024

EMPOWERING TOMORROW, TODAY!

AIM Congress is the worldʼs leading platform that has progressed into a well-established event, where visionaries and policymakers collaborate to shape the future of investment worldwide. The 14th Edition of AIM Congress 2025 under the theme “The New Wave of a Globalized Investment Landscape: Towards a New Balanced World Structureˮ isnʼt just a conference, but a catalyst which will bring new ideas to life, promoting insightful discussions around 8 portfolios.

Africa: Leapfrogging Challenges with its Mobile Solutions Boom

From fintech payment systems to drone-delivery of medical services,thecontinentisonaroll.

Africa is embracing innovation continentwide to address its particular set of issues and challenges.

From infrastructure constraints and financial inclusion gaps to healthcare accessibility and educational impediments, Africa is using technology, particularly mobile solutions, to break free from outdated paradigms and chart a course for a more affluent and inclusive future.

KENYA: CRADLE OF MOBILE MONEY

Kenya, sometimes known as "Silicon Savannah", is a tech hub of innovation. The country is wellknown for its pioneering role in mobile money, with M-Pesa leading the way. The mobile payment app was founded in 2007, and has transformed domestic financial activities.

This ground-breaking innovation has increased financial inclusion and fuelled the expansion of other mobile-based services including microloans, insurance, and e-commerce.

Kenya is also home to Andela, a start-up that connects its bright software developers with global corporations. Andela's methodology addresses the digital skills gap, and allows young citizens to pursue their careers.

NIGERIA: FINTECH POWERHOUSE.

Nigeria, Africa's most populous country, is experiencing a fintech revolution. With a huge unbanked population and a growing demand for digital services, it’s an ideal environment for creative solutions.

Paystack, a payment-processing start-up, helps businesses accept internet payments — safely and seamlessly. The company's user-friendly platform and robust infrastructure have made it a popular choice for enterprises across Africa.

Nigerian fintech Flutterwave is another payment platform that allows businesses to use a variety of channels, including cards, mobile money, and bank transfers. Flutterwave's technologies facilitate cross-border trade and enable businesses to expand their reach throughout the continent.

SOUTH AFRICA’S AGRICULTURAL DRONES

With its modern infrastructure and diverse

economy, South Africa is a hotbed of innovation. Aerobotics is using drones to modernise agricultural practice. AI-powered drones collect crop data, allowing farmers to improve irrigation, fertilisation, and pest management. This can boost yields, save expenses, and improve sustainability.

Jumo uses mobile tech to provide financial services to underprivileged communities. The platform uses data and analytics to evaluate creditworthiness and provide loans, insurance, and other financial products to individuals and enterprises without traditional banking services.

Jumo's revolutionary methodology promotes financial inclusion and economic progress.

RWANDA:

MORE DRONES…

This small landlocked country in East Africa is making significant progress in healthcare innovation.

Zipline, a US-based startup, has collaborated with the Rwandan government to set up a network of medical drone-delivery services for remote places, potentially saving lives and boosting healthcare access.

Babyl, a UK-based telemedicine start-up, is also having a huge influence in Rwanda. The company's mobile app enables consumers to remotely interact with doctors and experts for convenient and cost-effective healthcare. Babyl's revolutionary platform is especially useful in rural areas with limited healthcare facilities.

Africa's innovation landscape is defined by inventiveness and agility. The continent is embracing technology, particularly mobile solutions, to meet its unique challenges and advance beyond traditional approaches. Africa is displaying its ability to become a global innovation leader.

As the continent continues to invest in education, infrastructure, and entrepreneurship, we can expect more ground-breaking innovations. These solutions will improve the lives of millions, and inspire people around the world.

Africa's innovation path is proof of the power of invention and the unwavering spirit of progress. i

"As the continent continues to invest in education, infrastructure, and entrepreneurship, we can expect more ground-breaking innovations. These solutions will improve the lives of millions, and inspire people around the world."

> Ploughing a Determined Path to Lead the Field in Financial Sector

MDandCEOofNigeria’sJaizBankHarunaMusahasmanystringstohis bow—andmanyaccoladesforhisprowess.

Nigerian pioneer non-interest financial institution Jaiz Bank Plc has been providing services to individuals, corporate and government entities since 2012 — with the mission of “Making life better through ethical finance”.

Since starting operations, the bank has maintained a leadership role by doubling down on its alternative financing model. It has provided a foundation for expansion while meeting the national need for ethical funding for infrastructural development.

Jaiz has won international and local recognition for its efforts, including Most Improved Islamic Banking awards in 2020 and 2021 from the Global Islamic Finance Awards (GIFA). It maintains its record of being the first Islamic bank in the world to break even within its first three years of operation — at a time when there were no other Islamic banking or finance instruments.

Jaiz Bank's core values are built on seven principles with the acronym ETHICAL: Excellence, Teamwork, Honesty, Integrity, Customer-Centricity, Accountability, and Loyalty. These values have taken Jaiz to a leading position in Africa.

Jaiz Bank is publicly quoted on the Nigerian Exchange Group (NGX) with a balance sheet of N379 bn from N12 bn in 2012. Financing and Investment assets grew from over N30 bn in 2012 to N249 bn. Critical parameters such as customer deposits, branch networks and profitability have also been growing year–on–year since inception.

THE MAN AT THE HELM

Haruna Musa was appointed managing director and CEO of Jaiz Bank in November 2023. The seasoned banker has over 27 years of experience across Africa. He is an alumnus of Ahmadu Bello University, Zaria, Bayero University, Kano, and Cranfield University, UK. He obtained a Doctorate of Philosophy in Islamic Banking and Finance from Malaysia’s Universiti Utara.

At Cranfield, Haruna obtained an MSc in Finance and Management. From Bayero University he received a Master’s in Business Administration and a Post-Graduate Diploma in Management.

MD & CEO: Haruna Musa

He also earned a Bachelor of Agriculture from Ahmadu Bello University, Zaria.

Haruna undertook extensive executive-level courses, including the Advanced Management Programme from Wharton Business School at the University of Pennsylvania. He graduated from the Making Corporate Boards More Effective course at the famous Harvard Business School. He also completed the Positive Leadership Programme run by Michigan Ross Executive Education in the US, and the General Management Programme at Cranfield. Haruna is an honorary member of the Chartered Institute of Bankers of Nigeria.

Until his appointment as the MD/CEO of Jaiz Bank, he served as executive director with GT Bank for eight years, and 22 of his 27 years of banking experience were spent working at Guaranty Trust Bank Holding Company from 2001 to 2023.

He started out as a banking officer at United Bank for Africa Plc, and served as a senior banking officer at the FSB International Bank from 1998 to 2001. Earlier, he worked at the Federal Ministry of Agriculture, Abuja, as an agricultural officer.

In October 2015, Haruna assumed the role of executive director and head of the North-east and Public Sector, Abuja Divisions on the Board of GT Bank.

He was appointed as a non-executive director with GT Bank (Cote D’Ivoire) and chairman of the Board Audit Committee. From 2015 to 2023, he contributed to the bank’s turn-around from a “loss position” to consistent profitability.

The MD and chief executive boasts achievements that have earned him commendations and praise from his previous employers. Jaiz Bank would seem to be in capable hands. i

A Rare Bird Flutters into SME World Flourishing in Nigeria: ‘Win-Win’ Financing Options

The Nigerian financial sector’s longstanding need for an alternative banking model has finally been met.

Jaiz Bank Plc, Nigeria’s first Islamic bank was founded for citizens who prefer the non-interest transaction-and-investment option.

Customers of conventional banks, especially those in the Northern region of the country, had been eager for an option that enables responsible and ethical trading.

Jaiz does just that, delivering services for retail, commercial, and corporate sectors. It offers a wide-range of products, from transactional accounts and term savings to working capital, real estate, personal, medical, education and project finance. Also provided are online banking services, leasing, bank cards, bonds and guarantees.

The bank caters for myriad needs across its 50 national branches, with a diverse clientele across the region. In over 12 years of operations, Jaiz has weathered the twist and turns of the challenging and dynamic economic landscape. In its fourth year, it began to show impressive year-on-year performance, and profit across key financial metrics and initiatives.

In its second quarter report for 2024, Jaiz Bank declared impressive earnings, with a gross income of N12.47 bn ($76m), up from N8.40 bn in 2023. Net income was N5.43bn, compared to N2.17 billion a year ago. Basic earnings per share from continuing operations was N 0.15 compared to N 0.063 in 2023.

For the first six months in 2024, gross income was N23.06 bn ($1.4bn), and net income was N11.28 bn. Basic earnings per share from continuing operations was N 0.32.

In line with the bank’s driving objective of economic resuscitation, SMEs — which account for 96 percent of businesses and 84 percent of employment in Nigeria — began to access funding through consolidated financing.

It was time for the bank to channel investments towards stimulating local business and fostering financial inclusion. An increasing number of Nigerian SMEs are now reporting profits and

Abuja, Nigeria: Jaiz Bank's recently concluded Annual General Meeting

"The bank caters for myriad needs across its 50 national branches, with a diverse clientele across the region. In over 12 years of operations, Jaiz has weathered the twist and turns of the challenging and dynamic economic landscape. In its fourth year, it began to show impressive year-on-year performance, and profit across key financial metrics and initiatives."

proceeds from the supplementary income they received from Jaiz Bank financing.

A 33-year-old trader, cobbler Abdulbasit Muhammad Auwal, started his shoe-making business with just N100,000 years after graduating from the university. He had been unable to find a white-collar job.

“I had to wait for a year before I was mobilised for the National Youth Service Corps (NYSC),” he says. “I asked a cobbler who made my shoes to engage me as apprentice. I told him that people always admire my shoes and that I thought I could start selling them. That's how it all began.”

After learning the skills of the trade, Auwal started out alone, producing shoes himself — and eventually taking on his own apprentices.

“Now I have 10 staff, and others are being trained,” he says. He credits Jaiz Bank for

"Nana Firdausi Habib, an entrepreneur well-known for her social media promotion of her business, was able to expand her empire with Jaiz SME financing."

his success. And he is not alone; many other citizens have benefited from Jaiz Bank’s noninterest facilities, growing their businesses, being supported and lifted out of poverty.

Nana Firdausi Habib, an entrepreneur wellknown for her social media promotion of her business, was able to expand her empire with Jaiz SME financing. From supplying kitchen utensils and appliances to delivering luxury

furniture, Habib experienced a surge in profits. She used the facility to acquire new products.

“My line of business is interior décor accessories,” she explains, “which I import directly from Turkey and China. The niche is purely online, with delivery to every nook and cranny of the country.” Her initial business capital came family members. “Then I got a facility from Jaiz Bank, and we were able to expand.”

The bank is also stimulating the agricultural sector, most notably by financing a 10,000ha irrigation system at Udubo, Gamawa, Bauchi State. Tiamin Rice Ltd is just one of several Jaiz Bank customers in the sector to benefit from its investment initiatives.

The Nigerian financial sector’s needs have indeed been met — and the country’s SME sector is booming. i

From Barter to Blockchain: Banking Through the Ages

Fromtradingseashellstoinvestingincrypto,our relationshipwithmoneyandfinancialinstitutions hasseensomeseriouschanges…

For millennia, money in its various forms has been the lifeblood of human civilisation.

From barter systems to sophisticated digital networks, the history of banking is our history, too. Money is intrinsically linked to humanity, for better or worse.

It's a colourful tale, though, full of ingenuity, adaptability, booms and busts, greed, trust, and treachery. As societies change, so do their financial systems, adapting to changing demands and aspirations.

Banking has a long and convoluted past that spans continents and epochs. It started with modest acts of exchange in ancient marketplaces — got change for a big seashell, buddy? — and evolved into the sophisticated global financial networks of the 2020s.

Banks have done it all: enabling trade, financing wars, fuelling economic revolutions, and moulding national destinies. So where did it all begin?

The roots of banking go deep. Long before paper money, credit cards, or online transactions, the seeds of finance were planted in ancient civilisations' marketplaces and temples.

MESOPOTAMIA: THE CRADLE

The first cities arose in Mesopotamia, between the Tigris and Euphrates rivers. Temples served as both religious and economic centres, and as storage facilities for grain, animals, and precious metals. They used clay tablets as receipts; we’re far, far away from online banking. These lumps of clay are probably the earliest negotiable instruments: they could be transferred from person-to-person, and so served as the default primitive “currency”.

As trade expanded, merchants and moneylenders got involved. They provided loans, organised transactions, and even practiced a basic form of insurance. The Code of Hammurabi, one of the first legal codes, had laws governing interest rates and debt obligations. The importance of financial transactions was becoming clear, even in ancient Babylon.

"Banks have done it all: enabling trade, financing wars, fuelling

economic revolutions,

and

moulding

national

destinies.

So where did it all begin?"

BANKING ON THE NILE

The Egyptians created their own sophisticated financial system way back, along the banks of the Nile. The Pharaoh's temple, which housed granaries and treasure, served as the kingdom's “central bank”. Priests and scribes painstakingly recorded deposits and withdrawals, their hieroglyphs tracing transactions.

The Egyptians also brought metal into the picture, pioneering the use of metal rings and ingots as currency. These standardised units of value facilitated trade and commerce inside Egypt — and with its neighbours. While the concept of loans existed, it was usually associated with religious and social obligations rather than economic ones.

GREECE, ROME, COINS AND CREDIT

In the bustling city-states of ancient Greece, coinage transformed the way people did business. Temples again stored the riches, but private banks — known as trapezitai — came into being. They took deposits, made loans, and even facilitated currency exchange services for traders and travellers.

The function of banks increased in the Roman Empire, which inherited much of the Greek system. Roman bankers, known as argentarii, worked from shops and stalls in forums and marketplaces. They facilitated payments, gave credit, and even participated in speculative operations.

The Roman government relied on the argentarii to manage its finances, collect taxes, and fund its military campaigns.

CHALLENGES AND LIMITATIONS

Ancient banking systems were advanced for their

time, but had substantial hurdles to overcome. The absence of centralised regulations resulted in a system wracked by fraud and instability. Political upheaval and wars interrupted trade and damaged trust in financial institutions. A lack of sophisticated accounting processes made complicated transactions impossible to manage. Risk management wasn’t even a gleam in anyone’s eye.

With the fall of the empire, much of the ancient world's financial infrastructure — such as it was — collapsed. But the seeds had been sown. Existing ideas and practices prepared the ground for the resurgence of finance in the mediaeval period — which in turn paved the way for modern banking.

MEDIAEVAL BANKING: A NEW ERA

The fall of the Roman Empire wasn’t localised; it was a time of upheaval throughout Europe. Amidst the rubble, new societies and economies emerged. Trade routes, once busy with Roman legions and merchants, fell into disrepair. The mechanisms that had supported the empire's

network of commerce collapsed. But change was coming.

RESURGENCE OF TRADE

As Europe recovered from the Dark Ages, trade and commerce recovered too. The Crusades, motivated by religious zeal and greed, established commerce channels between East and West. Merchant guilds formed to defend their interests and facilitate trade. Fairs proliferated across the continent, attracting traders.

This revitalisation prompted a need for more sophisticated financial services, especially safer ways to transfer and exchange money. Loans were needed to fund operations, and insurance covered the risks of long-distance trading. The mediaeval church, while officially forbidding usury, as Shariah banking still does, became increasingly involved in financial matters. It managed its huge estates and collected tithes from the devout, and the vulnerable.

ITALIAN CITY-STATES

The foundations of modern banking were built in

Florence, Venice and Genoa. These city-states, strategically placed at the crossroads of trade routes connecting Europe, the Mediterranean and the East, grew to become major financial and commercial centres.

Italian merchants and bankers, with an enterprising spirit and a growing knowledge of risk and reward, created new financial instruments and processes. Italy pioneered double-entry bookkeeping, still used today. Bills of exchange enabled the transfer of payments across borders without having to physically move bullion. They became essential to international trade.

Powerful banking families, such as the Medici in Florence and the Peruzzi in Siena, gained prominence. These families funded trade and commerce — and exerted significant political power. Their extensive networks of branches and correspondents reached throughout Europe — a prototype of international banking.

THE CHURCH AND USURY

The Catholic Church, a dominating power in

mediaeval society, had a complex link with banking. While it officially denounced usury, declaring it a sin to profit from lending money, it also relied on financial services to run its business. A blind eye was frequently turned, as long as bankers followed specific guidelines.

The gulf between religious dogma and economic reality has fuelled many disputes over the years. Theologians and philosophers debated what constituted a reasonable return on investment, and how to reconcile profit-making with charitable beliefs.

CHALLENGES AND OPPORTUNITIES

Mediaeval banking, like any emerging sector, faced some hurdles. Political unrest, conflict and disease outbreaks could disrupt trade and erode trust. The lack of a common currency and an agreed legal framework added to the complexity.

Despite this, mediaeval times constituted a watershed moment for banking. Innovations and procedures developed in Italy paved the way for modern banking. The growing interconnectivity

of European economies helped to establish a truly global financial system.

THE ENGINES OF PROGRESS

The Industrial Revolution sparked another wave of innovation through Europe and beyond. Factories and cities grew, international trade thrived. This dynamic era needed a financial system capable of keeping up with evolving developments. Modern banking, as we know it, rose to the occasion.

THE NEED FOR CAPITAL

That need was, in a nutshell, the driving force behind the Industrial Revolution. Funds were required to develop factories, buy machinery, and hire workers. Traditional sources — wealthy people and commercial guilds — proved insufficient. New mechanisms were needed to mobilise capital on a massive scale.

Joint-stock banks, whose ownership was divided among shareholders, emerged as a formidable force. With their ability to pool resources and distribute risk, they could fund large-scale projects that individual investors couldn't. The stock market provided another means of raising cash, and channelling it into productive activities.

CENTRAL BANKS: THE GUARDIANS

As the financial system became more complicated, it became clear that a centralised body was needed to monitor and regulate it. Central banks, such as the Bank of England and the Banque de France, were formed to regulate the money supply, stabilise currencies, and serve as lenders of last resort during times of crisis.

These organisations played a vital role in promoting economic stability and enabling international trade. They also contributed to the growth of trust in the financial system by assuring depositors that their money was safe.

SPEEDING UP TRANSACTIONS

The Industrial Revolution coincided with a wave of technological developments. The telegraph and telephone revolutionised communication, enabling speedier and more efficient transactions over long distances. The typewriter and adding machine simplified recordkeeping and accounting, minimising errors and increasing efficiency.

These technical advances accelerated and facilitated banking, and broadened its scope. Banks could now open branches in rural areas, providing financial services to previously underserved regions.

CHALLENGES AND REFORMS

Banking saw both accomplishments and setbacks during the 20th Century. The Great Depression of the 1930s, caused by a stock market crash and a wave of bank failures, threw the world

into economic upheaval. Millions lost their money, businesses failed, and unemployment skyrocketed.

After this tough period, governments around the world made broad changes to prevent future disasters. Deposit insurance was brought in to protect people’s money, and banks faced more stringent rules to ensure their solvency and sensible lending practices.

The two world wars also had a significant impact on finance. Governments leaned on banks to fund the bloodshed, resulting in a vast expansion of credit — and debt. The postwar period saw a surge in reconstruction, as well as inflation and currency instability.

MODERN BANKING

From the Industrial Revolution to the 20th Century, banking evolved from local to global. Contemporary banking, with its complex institutions, financial tools, and technological infrastructure, played an important role in promoting economic growth, enabling commerce, and shaping the modern world.

The struggles experienced by the industry, from the Great Depression to two world wars, resulted in reforms and regulations that continue to impact the financial environment. At the start of the 21st Century, the banking industry faced new challenges and opportunities, fuelled by technology, globalisation, and shifting client expectations. Nonetheless, the heritage of contemporary banking, forged in the crucible of the Industrial Revolution, will have a profound influence on the future of finance.

BANKING AT THE SPEED OF LIGHT

The 2000s ushered a new era of technological miracles, with the internet and digital services transforming our lives. Banking, historically limited to brick-and-mortar branches and hard-copy ledgers, has seen a remarkable transformation. Today, transactions take milliseconds, thanks to the services available at our fingertips.

Online banking, initially considered little more than a curiosity, has become the norm. We can check accounts, transfer money and pay bills from our living rooms, or even while travelling. Mobile banking has taken convenience to the next level: money management is just a click away.

Mobile payments further transformed the landscape. Apple Pay, Google Pay, and many others mean we can leave our wallets at home and pay with a nonchalant wave of our smartphones.

FINTECH: THE DISRUPTOR

The digital age gave rise to financial technology, aka fintech. Start-ups and digital giants are creating new financial products and services that are faster, cheaper, and more accessible.

Peer-to-peer lending services bring borrowers and lenders together, bypassing traditional institutions. Robo-counsellors offer computerised investing guidance for a fraction of the cost of traditional advisors. Digital wallets and payment apps provide a simple and safe way to store and handle funds.

CRYPTOCURRENCIES

AND BLOCKCHAIN

Perhaps the most radical revolution of the digital age has been that of crypto and the blockchain. Bitcoin, the first and best-known of these new forms of currency, runs on a decentralised network, not controlled by a government or a bank. Transactions are recorded on a public ledger maintained by a global network of computers.

While crypto is still in its early phases of development, it has the potential to transform money and banking. The blockchain's ability to establish secure and transparent transaction records could improve a variety of financial procedures, including cross-border payments and supply chain management.

THE CHANGING ROLE OF BANKS

In the face of these digital upheavals, traditional banks are at a crossroads. They must adapt to their clients' evolving requirements and expectations — or risk becoming irrelevant. Many are investing in digital technology and collaborating with fintech firms to stay ahead.

The role of banks is also changing. They are increasingly serving as trusted advisors, assisting us in navigating the complex world of digital finance and in making sound financial decisions.

CHALLENGES AND OPPORTUNITIES

The digital age brings a mixed bag with it. Cybersecurity, data privacy, and the potential of financial exclusion for those without access to digital technology, for starters. At the same time, the digital age presents an opportunity for banks to innovate, broaden their reach, and serve consumers in novel and exciting ways. They can build a more inclusive, efficient, and customer-centric system by adopting digital technology and collaborating with fintech startups.

THE FUTURE OF BANKING

It's digital. Innovations have revolutionised the way we bank, and that’s unlikely to change. As technology advances, we should expect even more financial breakthroughs. Think AI-powered financial advisors and quantum computingenabled risk-management systems…

The business of banking was historically rooted in tradition, and slow to adapt. Today it’s at the vanguard. Digital technology has brought us a new era, one that is faster, more convenient, and more accessible. As we negotiate this new landscape, one thing is certain: The future of banking is bright. i

Meet the Enigmatic Genius Who Changed Chess Forever >

Few names in the classic game’s history shine as brightly as Bobby Fischer's.

From child prodigy to grandmaster, Bobby Fischer didn’t waste any time in his rise to the pinnacle of the chess world. He certainly burned brightly, but his brilliance was tempered by his enigmatic nature — and his eventual, spectacular unravelling.

During the height of the Cold War, his historic 1972 World Chess Championship match against Boris Spassky went beyond the confines of the sport; it was a symbolic clash between East and West. Fischer's triumph cemented his place in the chess firmament and enthralled the world.

His career included victory and tragedy. When he became a grandmaster at the age of 15 years, six months and one day, he was the youngest player ever to achieve the ranking.

THE CHILD PRODIGY

His rise to glory began at an extraordinarily early age. Born in Chicago in 1943, he discovered his passion for chess at the tender age of six — and rapidly became obsessed with the game. He spent hours studying, analysing classic games, and competing against anyone willing to take him on.

Fischer's training methods were unusual, with a focus on self-directed study and relentless practise rather than official coaching. This stubborn, single-minded approach produced some astounding outcomes.

Fischer won the US Junior Chess Championship at the age of 13, and a year later, he became an International Master. His games were defined by strong strategy, tactical skill, and an unyielding will to win. His drive took him to the top, and along the way he made seminal contributions to chess theory — most notably in the area of opening preparation.

The young Fischer methodically analysed variables, hoping to get an advantage in the early phases of each game. Even before 1958, when he became the world’s youngest grandmaster, his place in history was assured. The emergence of the new superstar did not go unnoticed in the chess community. Fischer's early successes were due to unshakeable perseverance as much as his exceptional talent.

THE MATCH OF THE CENTURY

The 1972 World Chess Championship match

between Fischer and Spassky was more than just a struggle between the world’s chess titans; it was a confrontation of philosophies. Some called it a battle for world domination, fought on the chessboard.

The backdrop of the Cold War added the political weight: it boiled down to the US against the Soviet Union. Fans waited with bated breath as the two grandmasters prepared for what was billed as The Match of the Century.

The build-up was tense and dramatic. Fischer, known for his quirky behaviour and mercurial temperament, made some outrageous demands, stipulating a whopping cheque for the winner and calling for changes to the established match format. His antics threatened to delay the event indefinitely, but it finally went ahead, albeit under a cloud of uncertainty.

When the games took place in Reykjavik, the world was treated to an exhibition of true brilliance.

Challenger Fischer's aggressive style was at first too much for Spassky, the favourite, who struggled to find his feet. In a contest of twists and turns, Fischer forfeited the second game before pulling off an incredible comeback to take the overall win.

That triumph marked a watershed moment in the game’s history. It ended the Soviet Union's decades-long dominance, with America the new face of chess supremacy. The contest captivated the world, with millions tuning in to watch the games — and the unfolding drama.

FISCHER VS GRANDMASTERS

Bobby Fischer's playing style was a combination of aggression, resilience and strategy. He was recognised for his thorough preparation, his ability to take the initiative, and his singleminded pursuit of success. His greatest rating of 2785, attained in 1972, is one of the highest ever.

Comparing Fischer's top rating to those of modern grandmasters is difficult, as the rating system has changed over time. But by any standard, Fischer was formidable. His mastery of concepts, his tactical genius and his fighting spirit made a feared opponent for any player.

The landscape now is substantially different from the one he controlled in the 1970s. Technological advances, modern training methods and greater availability of information have all contributed to a higher level of play. Today's grandmasters have access to advanced database analyses, allowing them to prepare for battle with unprecedented detail and accuracy.

While it’s hard to gauge how Fischer would shape up against today's top players, it’s safe to assume that he would still be a force to be reckoned with. His natural talent and famous work ethic would certainly allow him to adapt to the modern game and compete at the top level. But he would face fierce competition from a generation of grandmasters who have profited from modern breakthroughs in technology and training.

That ”what if” scenario remains a topic of fascination among chess fans. While the game has changed dramatically, Fischer's legacy as

one of the true greats has not been tarnished. His personal image, however, has.

THE MONEY MACHINE

Bobby Fischer's influence on the realm of chess went beyond his stellar playing career. He was instrumental in taking the game from fringe activity to a financially viable sport. His demands for increased prize money and hefty appearance fees forced the chess world to acknowledge the worth of its top players.

Fischer's most significant contribution to this commercialisation was his role in establishing the Professional Chess Association (PCA) in 1993. The PCA aspired to organise and promote professional competitions, paying out generous prizes and drawing top players from around the world. Although it eventually folded, the PCA set the stage for future professional organisations, and contributed to the status of chess as a genuine spectator sport.

Fischer demonstrated an ability to turn his celebrity into profit. He commanded huge fees for exhibitions and simultaneous matches, and his 1992 rematch against Spassky — played in the then-Federal Republic of Yugoslavia, in violation of international sanctions — reportedly netted him millions.

Even after he retired from competitive chess, his fame generated attention — and cash. His writings, including the book My 60 Memorable Games, are still famous. Fans of all skill levels study and analyse his past matches. The persistent interest in his life and career assured him a legacy as a champion, and as a chess “money machine”.

THE GREAT UNRAVELLING

Fischer's 1972 victory was the high point in his chess career — and, ironically, the start of his decline. In his later years he withdrew from the public eye, refusing to defend his title and stepping back from competition.

His brilliant mind became overwhelmed by paranoia, conspiracy theories, and anti-Semitic beliefs. His public speeches became unpredictable and abrasive, losing him many of his erstwhile admirers. He denied the Holocaust and praised Adolf Hitler, ideas that were universally rejected, and he became an international pariah.

Legal issues exacerbated his seclusion. In 1992, he defied international restrictions with the Yugoslavia rematch against Spassky. It resulted in an arrest warrant being issued for him in the US; Fischer was forced to live the rest of his life in exile. He spent his final years travelling from country to country, fleeing police and seeking refuge from his inner demons.

Fischer died in 2008 at the age of 64. His chess prowess was indisputable, but his legacy was tainted by his beliefs and unpredictable actions. His tale is a cautionary one about the fragility of talent, and the dangers that sometimes dog unbridled ambition. i

Diversifying Economies via Tech Hubs: Middle East on the Ascent

The region, long linked with abundant energy resources, is undergoingatremendousshift…

Recognising the need to diversify their economies and ensure a sustainable future, Middle Eastern governments are investing in technology and innovation.

From thriving tech clusters and game-changing companies to ambitious government projects and visionary entrepreneurs, the region is experiencing a surge that is transforming its environment — and opening up new frontiers.

UAE: GLOBAL INNOVATION HUB

The United Arab Emirates, renowned for futuristic skylines and ambitious projects, is taking to the innovation stage.

The country has created a welcoming climate for start-ups and entrepreneurs with incentives, investment, and world-class infrastructure. Dubai, in particular, has become a hub for tech talent and investment.

Careem, a ride-hailing service developed there, has become a household name throughout the Middle East. The success story reflects the region's entrepreneurial culture — and increasing demand for digital services. Kitopi, another Dubai-based firm, is transforming the food business with its “Cloud kitchen” model.

Kitopi helps restaurants to optimise their operations and improve their delivery service via data analytics, contributing to the region's food and beverage sector.

ISRAEL: THE STARTUP NATION

Israel, sometimes referred to as the "Startup Nation," has built a reputation for its vibrant innovation ecosystem. The country has a high proportion of startups in relation to its population, which is fuelled by an entrepreneurial culture, excellent R&D capabilities, and generous government backing.

Mobileye, an Israeli startup that specialises in self-driving technology, has become a global leader in its industry. The company's advanced driver-assistance systems (ADAS) are employed by major manufacturers throughout the world, helping to produce safer and more efficient vehicles. Wix, another Israeli success story, allows individuals and organisations to create great websites without requiring any technical experience. The company's user-friendly platform and huge template library have democratised web design, making it available to all.

SAUDI ARABIA: VISION 2030

The Middle East's largest economy is embarking on an ambitious overhaul under its Vision 2030

"From thriving tech clusters and gamechanging companies to ambitious government projects and visionary entrepreneurs, the region is experiencing a surge that is transforming its environment."

initiative. The strategy seeks to diversify the economy to include more than just crude oil. It’s aiming for a knowledge-based culture, with technology and innovation central to the goal. The government is making significant investments in infrastructure, education, and entrepreneurship.

Noon, a Saudi e-commerce platform, is rapidly growing its regional footprint with a diverse selection of products and services. Its success mirrors a growth in online shopping in the Middle East, as well as the ability of internet-based commerce to generate growth.

Lucid Motors, a US-based EV manufacturer financed by Saudi Arabia's public investment fund, is also making an impact. Its luxury electric cars are establishing new standards for performance and sustainability, accelerating the global move to greener transportation.

The Middle East is undergoing a tremendous shift, propelled by an increasing emphasis on technology and innovation. Countries in the region are actively diversifying their economies, establishing vibrant technology clusters, and encouraging an entrepreneurial spirit. The Middle East is emerging as a dynamic force in the global innovation environment, with the UAE's global ambitions, Israel's startup prowess, and Saudi Arabia's Vision 2030 and tech aspirations.

As the area continues to invest in education, research and development, and infrastructure, we may expect a surge of ground-breaking inventions that will not only revolutionise the Middle East but also contribute to global technological and knowledge advancements. The Middle East's march to a more diverse and sustainable future demonstrates its resilience, adaptability, and persistent pursuit of growth. i

"The Middle East is undergoing a tremendous shift, propelled by an increasing emphasis on technology and innovation."

Is Islamic Finance Now Mainstream? >

Combattingusury,ensuringethicalstandards,and sweeping the world: a new financial cornerstone emerges.

Islamic finance has progressively gained traction in the global financial scene, transitioning from niche to mainstream alternative.

This rise has been driven by factors including the ethical attraction of Shariah-compliant goods, the rising integration of Muslim-majority economies into the global economy, and Islamic banking's financial resilience during the 2008 global financial crisis.

But some key questions remain: Has it truly joined the mainstream? What difficulties and opportunities lie ahead? The answers require a look at the history of Islamic finance, its position in the global market, and its prospects.

THE FOUNDATIONS

Islamic finance is based on Shariah, or Islamic, law. It establishes precise norms for economic and financial transactions. These are based on the prohibitions against riba (interest), gharar (excessive uncertainty), and a demand for risksharing. It aims to promote social justice by making financial transactions fair, transparent, and beneficial to all involved.

Some basic elements distinguish it from conventional finance. Interest is prohibited, because it is perceived as exploiting borrowers — particularly those in financial difficulty.

Islamic financial institutions (IFIs) instead make money through profit-and-loss-sharing agreements, trade-based lending, and lease contracts.

Gharar opposes excessive ambiguity or speculation. Contracts must be explicit and transparent, so that all parties understand the terms and conditions.

ASSET-BACKED FINANCING

Islamic financial products are often secured by tangible assets, such as real estate or commodities. This requirement is based on the notion that money should not be generated from nothing, but linked to actual economic activity.

Traditional financing frequently transfers risk to the borrower; Islamic finance emphasises risksharing between the lender and the entrepreneur. This balances incentives and promotes responsible investing.

Shariah encourages ethical and socially responsible investing while avoiding potentially

Some basic elements distinguish it from conventional finance. Interest is prohibited, because it is perceived as exploiting "borrowers — particularly those in financial difficulty."

damaging industries such as alcohol, gambling, and arms.

These principles underpin a range of financial goods and services, including Sukuk (Islamic bonds), Takaful (Islamic insurance), and investment funds. Each has contributed to the expansion and diversification of the sector.

THE RISE OF ISLAMIC FINANCE

Modern Islamic finance dates back to 1963, when the Mit Ghamr Savings Bank was established in Egypt. This pioneering institution functioned on a profit-sharing basis, laying the groundwork for global expansion.

Significant financial organisations were established in the 1970s, notably the Islamic Development Bank (IDB) in 1975, which was instrumental in spreading Islamic banking among Organisation of Islamic Co-operation (OIC) member countries. Oil-rich Gulf states began to set up Islamic banks and financial institutions to align their financial systems with their religious principles.

THE EXPANSION PHASE

The 1980s and 1990s were a period of growth, as Muslim-majority countries in South East Asia began to use the system. Malaysia, in particular, emerged as a global powerhouse for Islamic finance, with diverse products and a sophisticated regulatory framework.

In the 2000s, Islamic finance gained traction outside of the Muslim world, as non-Muslimmajority countries such as the UK and Luxembourg recognised its potential. The issuing of Sukuk by sovereign and corporate entities demonstrated a growing embrace of the concepts.

RESILIENCE IN CRISIS

One of the most significant turning moments was the 2008 global financial crisis. Conventional banks were significantly impacted by the collapse of the subprime mortgage market and the resulting credit crisis.

Islamic institutions displayed greater resilience, partly due to the prohibition on interest-based

transactions and excessive speculation. This protected Islamic financial institutions from some of the risky products that triggered the crisis.

The relative stability of Islamic banks drew the attention of investors and politicians around the world, sparking renewed interest.

INTO THE GLOBAL MARKET

The global Islamic finance industry is now valued at almost $4tn. Over the last decade, the industry has grown at a compound annual growth rate (CAGR) of over 10 percent, often exceeding the expansion of traditional finance.

Islamic finance has grown significantly in various key markets, including Gulf Co-operation Council

(GCC) countries such as Saudi Arabia, the UAE and Qatar.

These countries have been issuing Sukuk to fund infrastructure projects and diversify their economies. In South East Asia, Malaysia remains a global leader, with a well-established regulatory framework, a robust Sukukmarket, and a thriving Islamic banking industry.

Indonesia, the world's most populous Muslimmajority country, has seen a tremendous expansion thanks to government initiatives and increased demand.

There has been rapid growth in Pakistan and Bangladesh, where Islamic finance is seen as a way to increase financial inclusion.

In Sub-Saharan Africa, Nigeria and Sudan have shown an interest in expanding the sector. Nigeria released its first sovereign Sukuk in 2013, signalling a willingness to developing the finance system.

In Western markets, Islamic finance has made advances in the UK, with London establishing itself as the leading centre. In 2014, the UK government issued its first sovereign Sukuk, and many Islamic banks now operate there. Luxembourg and Germany have investigated prospects in Islamic finance.

ADOPTION AND CHALLENGES

The question of whether Islamic finance has become mainstream remains difficult. While it has achieved global visibility and acceptability, a number of hurdles could prevent its full integration.

One of the most significant issues is the lack of standardised legislation across jurisdictions. This lack could result in inconsistencies and disrupt cross-border transactions.

Because Shariah-compliant instruments are not universally available, Islamic financial organisations frequently struggle to manage liquidity. Traditional banks have access to a diverse range of interest-bearing securities, but Islamic banks must manage with a smaller set of tools, such as Sukuk.

Ensuring Shariah compliance is crucial to the integrity of the system, and interpretations of its principles vary. This has resulted in a lack of consistency in the implementation of the banking rules, which can cause confusion.

While Islamic finance has made great strides, there is still a lack of comprehension in nonMuslim nations. Educating consumers and investors on the benefits and principles of Islamic finance is critical to its continued success.

COMPETITION WITH CONVENTION

Islamic finance frequently coexists with conventional finance in dual-banking systems. This may present issues in terms of pricing and product innovation. Conventional banks may provide comparable products that are not Shariah-compliant, but are marketed to appeal to the same ethical concerns.

The Islamic finance business is concentrated in areas prone to geopolitical instability, such as the Middle East and North Africa. Political upheaval,

"The future of Islamic finance seems optimistic, with three major factors expected to drive continuing growth."

economic sanctions and other issues may have an impact on its progress in these locations.

FINTECH INTEGRATION

The broader financial system is being transformed by technology breakthroughs and the rise of fintech. Its incorporation into Islamic finance brings opportunities and obstacles. Digital banking provides a chance for Islamic banks to broaden their reach, especially among younger, tech-savvy clientele. Digital platforms can help improve financial inclusion by offering Shariah-compliant banking services to neglected communities.

Blockchain and smart contracts have the potential to transform Islamic finance by increasing transparency, lowering transaction costs, and ensuring compliance. Blockchain can be used to verify the legitimacy of Islamic financial products, guaranteeing that they are backed by tangible assets.

Crowdfunding and peer-to-peer (P2P) lending platforms provide alternative financing possibilities consistent with Islamic values. These platforms can help entrepreneurs get access to cash without relying on traditional institutions.

While fintech has great promise for innovation, it also poses regulatory obstacles. Ensuring that fintech solutions adhere to both Shariah principles and local rules necessitates thorough scrutiny and collaboration among regulators and industry players.

The future of Islamic finance seems optimistic, with three major factors expected to drive continuing growth. And expansion into new markets, particularly in Africa and Central Asia, is expected. Countries with large Muslim populations and undeveloped financial systems provide opportunities for Islamic finance to provide financial inclusion and economic growth.

The principles of Islamic finance are in line with the growing global emphasis on sustainability and ethical investing. Islamic financing has the potential to play a critical role in projects involving renewable energy, infrastructure, and social impact. The development of green Sukuk

and other Shariah-compliant sustainable finance instruments is expected to pick up in the future years.

As Islamic finance expands, there is room for more integration with global financial markets. This might include more Sukuk cross-listings on foreign exchanges, more engagement of Islamic financial institutions in global trade financing, and enhanced collaboration between Islamic and conventional financial institutions.

The rise of Islamic fintech is projected to spur innovation and increase access to Shariahcompliant financial services. The creation of new digital platforms, blockchain-based solutions, and alternative financing models will all play important roles.

CHALLENGES TO OVERCOME

While the future is bright, the Islamic finance industry must address a number of problems. Improving the standardisation of Shariahcompliant goods and regulatory frameworks is vital for worldwide expansion. Industry players must collaborate to create norms and procedures to expedite cross-border transactions and boost investor trust.

The expansion of Islamic finance necessitates a trained workforce. Addressing any talent gaps via education and training initiatives will be the way ahead. More efforts are needed to raise awareness and educate the public about the benefits of Islamic financing.

This involves clearing up misconceptions and promoting Islamic finance as an ethical and viable alternative to traditional finance. It must adjust to new regulatory regimes, managing new regulations governing fintech, sustainable finance, and global financial stability.

Islamic finance has come a long way. Its ethical basis, durability during financial crises, and alignment with contemporary themes have all contributed to its growing popularity. While it is more widely recognised and used, it still confronts obstacles that must be addressed before it can be considered mainstream.

Islamic finance's future will be determined by its capacity to innovate, enter new markets, and integrate with the larger financial system — while adhering to its essential values. As it expands, it can serve as a viable alternative and a model for ethical and sustainable financial practices.

The question of whether Islamic finance has become mainstream is about more than just market size or geographic reach. It's also about whether Islamic finance can continue to provide a unique value proposition that appeals to a broad spectrum of investors, consumers, and governments. If it can meet its challenges, it has the potential to become another cornerstone of the global financial system. i

Galeazzi Sant’Ambrogio Hospital of the Future - Italy

American Heart of Poland European Cardiovascular Hub

Over 50 + Specialities Handling Complex Care

700+ Patents

Sustainable Development Powering Tomorrow

An exceptional group devoted to the service of humanity

Serving Humanity Najaf - Iraq

> The Economics of AI — Talent Before Technology: Transforming Today’s Organisations with Tomorrow’s Leaders

Organisations are investing heavily in AI, with adoption rates soaring, yet skeptics still question AI’s return on investment. Creating value from AI requires more than just technological implementation—it demands a shift in working processes, operating models, and, most crucially, human capital. As AI technologies and data structures form the foundation of AInative organisations, the focus must turn to leadership and talent that can drive sustainable and responsible growth.

According to Bain & Co., generative AI initiatives could add up to 20% to EBITDA, and as AI matures, it is no longer just a tool for technical teams. AI is now a strategic driver of business transformation, embedded in operations, fostering a data-driven culture, and promoting responsible business practices. The transition to AI-native organisations is not just about technology—it’s about talent.

The McKinsey Global Institute projects potential productivity gains for all workers through generative AI (genAI) to rise between 35-70% in the coming years. The software industry provides a glimpse into this transformation. Over the last 18 months, genAI tools have boosted developer productivity by 50%, with similar gains expected in the near future. This productivity surge is set to redefine industries and reshape how businesses approach software solutions—whether to build or buy.

As AI continues to boost human productivity, it is reshaping the future of work, heralding a new era of efficiency and value creation. Visionary nations, like the UAE, have already embraced this shift. With oil revenues projected to peak by 2029, the UAE has positioned AI as a cornerstone of its future economic strategy, crucial for driving growth in a post-oil economy. In both public and private sectors, AI is no longer optional but essential for driving productivity.

Governments are increasingly mandating the appointment of Chief AI Officers (CAIOs)— leaders tasked with steering organisations toward an AI-driven future. These leaders don’t just implement technology; they transform business models, organisational strategies, and

Author: Bashar Kilani

human capital. The CAIO’s role is pivotal in ensuring the C-Suite and board are equipped to navigate the AI economy, and their leadership profile requires a distinct set of skills for this new era.

Traditional leadership, often characterised by MBAs or consultants with effective communication and broad general knowledge, is being reshaped. Today, tools like ChatGPT or Gemini can perform many of these tasks more efficiently. In an AI-first world, creativity, technical acumen, and the ability to lead AIpowered innovation will be the hallmarks of successful leaders.

Every member of the C-Suite must contribute to this transformation, ensuring that the organisation’s talent evolves alongside AI’s capabilities. Chief Human Resources Officers (CHROs) will play a pivotal role in shaping the workforce of the AI economy. Traditional skills are rapidly giving way to AI proficiency, creativity, and leadership. A recent Gartner study found that only 15% of Chief Information Officers and IT leaders believe their workforce is equipped for the future. This is an urgent call to action.

The Chief Financial Officer’s (CFO) role is also evolving. AI-native organisations’ balance sheets will increasingly reflect investments in cloud infrastructure, AI models, data monetisation, and more. This shift will require CFOs to understand the new economic landscape, ushering in a new breed of finance leaders attuned to the AI economy. This transformation will impact the entire leadership team.

Leading in the AI economy requires more than just new skills; it demands a deep understanding of the emerging economic models and the ability to mitigate risks. AI’s growing presence in business operations introduces increased risks of regulatory breaches and ethical missteps. By 2030, Gartner projects that decisions made by AI agents without human oversight could result in $100 billion in losses due to asset damage. Responsible AI must become integral to enterprise risk management and governance structures.

The transformation driven by AI is not just technological—it’s about leadership, people, and culture. Organisations that succeed will blend technical prowess with visionary leadership, capable of reimagining business in a digital-first world. By 2025, Gartner predicts that 35% of large organisations will have appointed a CAIO reporting directly to the CEO or COO, reflecting AI’s growing strategic importance.

The AI economy is not a distant concept— it is unfolding today. To capitalise on this transformation, organisations must act with agility and foresight. Whether through innovative services, new business models, or cost reduction strategies, AI presents boundless opportunities, but it is the human element that will ultimately determine success. i

ABOUT THE AUTHOR

Bashar Kilani is a Digital Economy Advocate and Managing Partner at Boyden. He is also the Founder of AI360 Innovations at Dubai AI Campus. Bashar has held senior leadership roles at Accenture and IBM and serves on the boards of prestigious organisations in industry, entrepreneurship, and academia.

Theregionfamedforitsdiverseculturesandrichhistorynowhasnewideas foritseconomiesandsocieties.

Latin America offers ideal proving ground for tech innovations, with a growing middle class, rising smartphone use, and an expanding hunger for digital services.

Fintech, in particular, is transforming the financial environment by bridging financial inclusion gaps and empowering individuals and enterprises. Beyond this, creative solutions are emerging in e-commerce, delivery services, and social impact activities.

BRAZIL: FINTECH GIANT

Latin America's largest economy is leading the fintech field. The country's large unbanked population, along with a favourable regulatory environment, has provided fertile ground.

Nubank, a digital bank, has upended traditional banking business with an app featuring no-fee accounts and personalised financial services.

Its quick growth and success have cemented its place as a symbol of the Latin American boom. iFood, another Brazilian success story, is the top food-delivery platform. iFood's revolutionary logistics network has livened-up the sector, making it more convenient and accessible.

Brazil's innovation ecosystem is notable for its expertise in agtech, with companies developing solutions for precision agriculture, crop monitoring and supply chain management. The country is also a leader in renewable energy, with hydroelectric power accounting for a large chunk of generation, and an increasing emphasis on solar and wind energy.

ARGENTINA AND E-COMMERCE

Recognised for its dynamic culture and entrepreneurial drive, Argentina is going strong in e-commerce and finance. The country's economic woes have sparked a surge of ingenuity and resourcefulness, resulting in some novel solutions.

MercadoLibre, an e-commerce platform, is the largest online marketplace in Latin America, connecting millions of shoppers and merchants. The platform offers a range of items and services, including electronics, fashion, real estate, and automobiles.

Ualá, a fintech firm, offers a mobile-first financial platform for services including prepaid cards, personal loans, and investments. The company's mission is to promote financial inclusion and empower individuals.

Argentina is also known for its prowess in software development and IT services. With a large and

"Recognised for its dynamic culture and entrepreneurial drive, Argentina is going strong in e-commerce and finance. The country's economic woes have sparked a surge of ingenuity and resourcefulness, resulting in some novel solutions."

highly qualified workforce, and an increasing number of tech enterprises that export their services, this country is on the move.

COLOMBIA: APPS AND ID VERIFICATION

Colombia has a booming economy, and is seeing an increase in innovation in delivery services and identity verification.

Rappi, a delivery app, has become a household name in Latin America, providing on-demand food, grocery, and pharmaceutical delivery. The platform and its network of delivery partners have made it a popular choice. Truora, another Colombian pioneer, offers ID verification tools to help organisations avoid fraud and expedite customer onboarding. The company uses biometrics and machine learning to reliably authenticate identities.

Colombia's innovation ecosystem is notable for its emphasis on social impact and sustainability. It is home to various social companies and non-profits that use technology to address poverty, inequality, and environmental damage.

Fintech improvements, e-commerce expansion, social impact initiatives, and government assistance have all contributed to Latin America's upswing. The region is experiencing a tsunami of innovation that is reshaping economies and communities.

Latin America continues to invest in education, infrastructure, and entrepreneurship. This will not only address local difficulties, but help to advance tech knowledge worldwide. This is a region on the march to a more inclusive, sustainable, and wealthy future. i

"Colombia's innovation ecosystem is notable for its emphasis on social impact and sustainability. It is home to various social companies and non-profits that use technology to address poverty, inequality, and environmental damage."

Online Shopping or Selling? Just be Careful Out There…

Rusesandtrickstoseparatethegulliblefromtheir hard-earnedaremanyandcunning;herearesome tipstostaysafe.

hen it comes to online shopping, it’s not just customers who fall victim to scams. Businesses and sellers can be targets, too.

According to Business Wire, there was a 71 percent increase in payment fraud attempts on US businesses in 2023 — a statistic that highlights how important it is to keep your wits about you.

Dennis Pederson, CEO of FastoPayments, has compiled a list of common payment scams that business owners should be aware of, and how to respond.

BAITING THE HOOK

Phishing scams are run by criminals trying to trick people into sharing sensitive information, such as credit card details and passwords. They typically do this by sending fake texts or emails which link to a third-party website that resembles a legitimate business. After clicking on the link, users are encouraged to enter their personal information.

For businesses, this can compromise the privacy and security of customers and stakeholders. The financial and data losses and cause the public to lose trust in the company, leading to a damaged reputation.

It’s important that sellers educate themselves on red flags and train their to spot them. These can include unexpected requests for personal information, spelling and grammatical errors, unknown or suspicious senders, and a sense of threat or urgency in the correspondence. Recipients should avoid clicking any unfamiliar websites and downloading attachments they don’t trust.

There are other measures that businesses and sellers can implement, such as advanced email filtering tools and undertaking thorough assessment of third-party communications. It’s also a good idea to limit access to sensitive data through multi-factor authentication — and keep digital systems and software up-to-date.

CHARGEBACK FRAUD

Also known as “friendly fraud”, this is when a seemingly well-intentioned customer makes a

"There was a 71 percent increase in payment fraud attempts on US businesses in 2023."

purchase via credit card and then disputes the legitimate charge with their bank. These people request a chargeback after receiving their order, typically claiming that they did not receive the item or that the payment was unauthorised.

This is different to true fraud, where a thirdparty bad actor makes a transaction using stolen personal information and the genuine cardholder files a chargeback for the unauthorised purchase. Those who commit friendly fraud seem otherwise trustworthy. These scams can be costly to internet vendors, who must pay much of the losses should a bank accept the dispute.

Good communication is key here. It’s important that online businesses put merchant names and transaction details in banking apps to avoid customer confusion and that email confirmations are sent promptly after purchases are made.

Sellers should enable package tracking and delivery updates to ensure that goods are received. Internet vendors should employ professional customer service and inform recipients of delays. It’s ideal to enact two-factor authentication for payments and verify any large orders before shipping.

RETURN FRAUD

Similar to chargeback fraud, this occurs when a customer attempts to get a refund by manipulating the seller’s returns process. This might involve returning a different item, claiming the product was defective, or otherwise exploiting the terms of the policy.

These scammers might use the items for a oneoff event: a high-end camera to take on holiday or an expensive dress to wear to a wedding. They might return these items claiming that they are

unused, flouting the terms and conditions of the returns policy.

To lessen the chance of this, sellers should develop and share clear, non-negotiable return policies and always follow them. Items must be returned in their original condition, with attached labels, and appear to be unused.

Strict checks should be implemented to ensure that returned goods are in perfect condition, and measures such as delivery tracking should be introduced. It’s also recommended that transactions are monitored.

MERCHANT FRAUD

Sometimes scammers pose as real businesses to deceive customers using fake online stores with goods at temptingly low prices. They may then

send a counterfeit or low-quality product — or no product at all.

This fraud can harm a genuine company’s reputation and incur financial loss, lawsuits and fines if it’s determined that they neglected to maintain proper prevention measures. If rates of merchant fraud in a particular industry are high, businesses can be impacted by higher payment processing fees.

Combat this is by ensuring that the company name, logo and transaction details appear on bank statements to distinguish legitimate purchases from fraudulent ones.

Implement clear terms and conditions, secure payment methods and multi-factor authentication to signal to a trustworthy business. It’s good

practice to stay aware of the ways to prevent fraud and keep software maintained.

WIRE TRANSFER FRAUD

In this case, a fraudster deceives someone into sending money via bank transfer. They may impersonate trusted individuals and organisations, such as suppliers or the CEO of the business. They create fake invoices urging the victim to send money, often playing on their emotions and exploiting the pressure they may be under.

These scenarios can be very realistic and convincing, and the victims often send the money over in a rush to remedy the situation.

This money is hard for businesses to recover. Sellers impacted will want to contact their bank

as soon as possible to stop the transaction. Naturally, prevention is better than cure. Never send money in an unplanned, unexpected manner, and ensure transactions are approved by multiple people.

Businesses and employees should avoid sharing any private company information. Improving cybersecurity protocols is a good way to prevent wire transfer fraud. Use strong passwords, guard company or seller banking details, and enforce multi-factor authentication when logging into the company’s network.

Ultimately sellers and employees must constantly remind themselves to ignore any unexpected invoices for money. If in doubt, get another opinion and confirm the validity of the request. i

Day Trading: High-Risk, High-Reward — and a Knuckle-Biting Thrill Ride >

Financial markets are no place for the foolhardy, norfortherisk-averse—butdaytradersstandout astruethrill-seekers…

Day trading is what it says on the tin: buying and selling financial assets on the same trading day.

It requires good judgement, a steely nerve and quick reflexes to benefit from tiny price variations. The temptation is obvious: quick profits, the freedom to work your own hours, and accessibility of markets in the digital age.

But this is certainly not a surefire way to get rich. It's a high-stakes environment where both dangers and benefits are amplified.

THE MECHANICS

When executing many deals per trading day, with the goal of capitalising on price fluctuations, there are various commonly used tactics.

“Scalpers” seek quick, tiny profits from multiple transactions, sometimes holding positions for only seconds. “Range” traders look for support and resistance levels, buying at lows and selling at highs within a specified range. News-based traders respond quickly to market-moving events, earning from volatility. High-frequency trading, often used by institutional organisations, lets algorithms do the heavy lifting, performing large volumes of deals at speed.

The daring day traders have tools, too: a variety of instruments and platforms can help them to obtain an advantage. Technical analysis software identifies patterns and trends in price charts, while real-time data feeds provide information. Trading simulators enable traders to test their ideas without risking real money.

Leverage, which allows the handling of greater positions with less cash and margin — borrowed funds are used — add to the complexity and risk. Short-selling, or betting on a stock's price to fall, is another day-trader tactic.

DEVELOPING THE MINDSET

Aside from the technicalities, this is tough psychological territory: constant pressure, fear and greed make scary bedfellows. Maintaining

discipline and adhering to well-defined plans are crucial to success; emotional trading often ends badly.

Managing risk is critical. Day traders must maintain realistic expectations — and accept that losses are unavoidable. The successful ones can control their emotions, and learn from their failures.

This game is about more than numbers and charts; the ability to remain calm under pressure, properly handle risk and learn from mistakes are vital.

RISKS AND REWARDS

Here be dragons: hazards that can quickly deplete funds and lead to real financial disaster. Market volatility can bring wins and losses. Transaction charges, such as daily commissions and fees, can eat into profits, too. The psychological cost of day trading cannot be understated.

Overtrading, driven by a persistent need for activity, can result in rash decisions. The addictive nature of this fast-paced lifestyle can take a toll on mental and emotional health — and competition is strong. Day traders compete against sophisticated algorithms and experienced institutional investors, making it difficult to maintain profitability.

Despite the hazards, day trading has the potential for big returns, and personal rewards. In volatile markets with quick price fluctuations, smart traders can benefit handsomely. Independence and flexibility are appealing: a trader can work from anywhere with an internet connection.

There is also the opportunity to gain an education in financial markets. Traders will soon understand many asset classes, economic indices, and global events that could affect pricing. Day trading can help to develop analytical and decision-making abilities that apply in other areas of life and work.

Statistically, day traders have a low success rate; only a small percentage are consistently

profitable. The more skilled ones get modest returns at best — and the vast majority lose. Experience and discipline can determine success or failure. Psychological research has shown that emotions are the enemy, often resulting to irrational choices — and disappointing results.

Understanding and managing the risks, and having realistic expectations, are prerequisites. But there are some renowned day traders with lessons to share.

THE MAJOR PLAYERS

Some extraordinary people have made a lasting influence on the profession. Jesse Livermore, rather unfortunately nicknamed the "Boy Plunger", was a famed speculator known for his daring bets and impeccable market timing.

His achievements and mistakes, as detailed in Edwin Lefèvre’s book Reminiscences of a Stock Operator, provide some timeless anecdotes of risk management and trading psychology.

Richard Dennis, a commodities trader who turned $400 into a $200m fortune, is another luminary. His "Turtle Trading" experiment, in which he trained a group of beginner traders to use a simple trend-following system, demonstrated that even people with little prior expertise can succeed.

Paul Tudor Jones, a hedge-fund manager renowned for his macro-economic nous and ability to forecast turning points, is another trading giant. He emerged victorious from some risky wagers during the 1987 stock market crisis.

Navinder Sarao, the young Briton who reportedly led to the 2010 "Flash Crash" moment, exemplified the potential of modern global markets. His experience showed the benefits, and downsides, of high-frequency algorithmic trading. He caused panic in US markets in 2010 from a bedroom in his parents' home in Hounslow, West London, earning him the nickname of the Hound of Hounslow.

He was arrested in 2015 for his part in the crash that followed, with markets going into freefall. It lasted less than an hour, but wiped almost $1tn off shares before there was a recovery.

Steven Cohen, another hedge-fund manager, is noted for his fast-paced trading and extreme risktaking. He personifies the value of adaptation, and the capacity to handle changing market conditions.

ROLE OF TECHNOLOGY

Tech has transformed day- and algorithmic trading. Computers can execute trades according to specified rules at unprecedented rates,

enabling businesses to make hundreds of trades per second.

AI and machine learning are, of course, also making their way into the space. They level the playing field, allowing independent traders to compete against institutional behemoths. But there is concern about market manipulation, systemic dangers, and the possibility of flash crashes.

Day trading, like all else, evolves. The landscape continues to change.

TRENDS AND PREDICTIONS

Many factors are shaping the future of day trading. The increase of retail traders, aided by online platforms and commission-free trading, is democratising markets. Social media sites have become important hubs for exchanging ideas and tactics, sometimes resulting in co-ordinated buying or selling that affects stock prices.

The growing popularity of cryptocurrencies, with their 24-hour trading and unpredictable nature, opens up new potential — and possible problems — for day traders. As technology advances, we should expect more advances, more sophistication, increased market efficiency; there could be a corresponding reduction of prospects for traditional day traders. Regulatory

monitoring is expected to increase as authorities struggle to stay abreast of developments.

A LITTLE ADVICE…

For those considering a career in day trading, a few tips. Education is essential. So is gaining an understanding of market mechanics, technical analysis, and risk management. Practising with a simulator allows risk-free training in this regard.

Long-term success requires developing a welldefined short-term strategy, and sticking to it even amid losses. Aspiring traders must have reasonable expectations; this is not a get-richquick scheme. It is, however, an enthralling and potentially rewarding pursuit. Technology is changing the pace of advances, and the way trading is done. Never underestimate the power of the computer, especially as AI comes into play.

So, go for it — but proceed with caution, and realistic expectations. Day trading is a job that requires courage, control, constant learning, and adaptability. Whether you're drawn to the adrenaline rush or simply curious, you’ll certainly discover some unique perspectives on the world of finance.

For those willing to put in the work and overcome the hurdles, it could — just could — be a path to financial independence. i

EY Argentina: Argentina Publishes Decree Implementing Incentive Regime for Large Investments (RIGI)

By Sergio Caveggia

The Argentine government sets detailed guidelines for the long-awaited RIGI, outlining tax and customs benefits aimed at boosting large-scale investments in key sectors.

On 23 August 2024, the Argentine National Executive Branch published Decree 749 in the Official Gazette, providing operational guidelines for the Incentive Regime for Large Investments (RIGI). This regime, first established under Title VII of Law No. 27,742, offers significant benefits to both foreign and local investors who commit to executing large-scale investments. The primary goal of RIGI is to provide these investors with predictability, stability, legal certainty, and protection of acquired rights in tax, customs, and foreign exchange matters.

With Argentina continuing to face economic challenges, including high inflation and a complicated business environment, the publication of the RIGI decree is a crucial step in the government’s efforts to stimulate economic recovery and attract foreign direct investment (FDI). Investors are looking for stable and transparent frameworks to guide their decisions, and this decree sheds light on many of the key aspects of the regime that had previously been unclear.

Below, we explore the main clarifications and provisions outlined by the decree.

Activities Included in the Incentive Regime

The decree provides more detailed definitions of the sectors eligible for benefits under the RIGI, specifying the types of activities that qualify within each sector. The sectors are diverse and encompass key industries vital to Argentina’s economic growth. Here’s a breakdown of the activities included:

1. Forestry: This includes activities where wood is the primary input for production, extending to the planting and development of forests. The sector is seen as critical to both the environment and industry, particularly given the global focus on sustainable development.

2. Tourism: Activities here focus on lodging and accommodation services, a vital industry in a country like Argentina, which has a robust tourism sector driven by its natural and cultural attractions.

3. Infrastructure: This covers the construction

of physical structures, networks, and systems essential for transport (including road, rail, maritime, and air transport), logistics, and public services. Importantly, it also includes infrastructure for leisure projects, such as resorts and entertainment facilities, and critical services like healthcare, education, telecommunications, and national security.

4. Mining: This includes activities involving the exploration, development, and exploitation of mineral substances, as well as specific processes defined under existing mining laws. Mining remains one of Argentina's most significant sectors, especially given the country’s rich natural resources.

5. Technology: Innovation is at the heart of this sector, which covers the production of goods and services in areas such as biotechnology, nanotechnology, artificial intelligence (AI), and aerospace. Argentina is positioning itself as a hub for technology development, and the inclusion of this sector under RIGI is intended to spur growth and attract investment in cutting-edge fields.

6. Steel Industry: This includes the processing and industrialisation of iron ore, steel, and its alloys, vital for the production of both primary and finished goods.

7. Energy: As Argentina continues to diversify its energy sources, this sector covers activities related to the generation, storage, transport, and distribution of electrical energy from renewable and non-renewable sources. It also includes bioenergy production and carbon capture technologies, which are key to the country’s transition to a lowcarbon economy.

8. Oil and Gas: This encompasses a wide range of activities, from the construction of oil pipelines and storage facilities to the production and export of liquefied natural gas (LNG). Offshore exploration and petrochemical refining are also included, recognising the importance of the energy sector to Argentina's export economy.

LOCAL SUPPLIERS OF GOODS AND SERVICES

The decree also clarifies the role of local suppliers within the regime. Goods and services suppliers who import merchandise for use in RIGI projects will be exempt from import duties, statistical fees,

and customs withholdings. However, these benefits are limited to inputs and intermediate goods that are intended exclusively for transformation into capital goods or information technology products as defined by Mercosur’s Common Nomenclature.

This exemption also applies to suppliers who rent such goods to RIGI projects. In effect, the decree incentivises the development of a local supply chain that can support large-scale investment projects, with the aim of boosting the national economy.

MINIMUM INVESTMENT AMOUNTS

To qualify for the RIGI, investors must meet minimum investment thresholds, which vary depending on the sector. These thresholds are substantial, reflecting the regime’s focus on large-scale, long-term projects. The minimum investment amounts per sector are as follows:

• Forestry, tourism, infrastructure, technology, steel, and energy sectors: $200m

• Mining: $200m (including both exploration and mineral extraction).

• Oil and Gas (offshore exploration, gas intended for export): $600m

• Long-term strategic export projects: $2bn

Argentina: Buenos Aires

These minimum investment requirements ensure that the regime targets only the largest and most impactful projects, driving significant economic growth.

INVESTMENT LIMITATIONS

While RIGI offers generous benefits, there are limitations on the types of investments that qualify. For instance, acquisitions of shares in companies, real estate, and certain concessions are capped at 15% of the minimum investment requirement. This ensures that the regime’s benefits are directed towards productive, long-term investments rather than financial transactions or short-term asset acquisitions.

The decree specifies that this 15% limitation applies to:

• Acquisitions of shares or participations in companies, including the acquisition of other VPUs (Promoted Entities).

• Real estate investments.

• Mining, oil, and gas exploitation concessions.

LOCAL SUPPLIER DEVELOPMENT PLAN

A critical element of the RIGI regime is the requirement for Promoted Entities to commit

to sourcing at least 20% of their project’s investment from local suppliers. The decree defines a Local Supplier as an individual or legal entity domiciled in Argentina, with at least 51% of its share capital owned by entities or individuals also domiciled in the country.

This local content requirement aims to ensure that the economic benefits of largescale investments extend beyond the projects themselves, fostering the growth of local industries and creating jobs.

PRE-EXISTING PROJECTS

The decree also addresses the issue of preexisting projects. It clarifies that expansions of existing projects can qualify under RIGI, but the benefits of the regime will only apply to the expansion itself, not the original project. To qualify, companies must either maintain separate accounting for the expansion or establish a dedicated branch solely for the expanded project.

This provision encourages investors to expand current operations, providing a pathway for growth while ensuring that the original project remains distinct from the expansion in terms of incentives.

TRANSFER OF TAX LOSSES AND EXPORT PROCEEDS

A particularly attractive feature of the RIGI regime is the ability to transfer unused tax losses to third parties. The decree establishes that the Argentine Tax Authority (AFIP) will regulate the process, ensuring that losses can be transferred after five years if not fully utilised. This provision adds flexibility for investors, allowing them to maximise the value of their tax benefits.

In terms of export proceeds, the decree provides further clarity on the "non-entry of exports" benefit, defining the start of activities as the first export of the project’s primary product or the completion of 40% of the minimum investment amount. This ensures that investors have a clear timeline for when they can begin to realise the benefits of the regime.

NON-CUMULATIVE BENEFITS

The decree also specifies that fiscal benefits from other regimes, such as those under the Mining Law, cannot be combined with RIGI benefits if they are of a similar nature. This prevents doubledipping and ensures that investors choose the most appropriate regime for their project.

LOOKING FORWARD

The publication of the RIGI decree marks a significant milestone in Argentina’s efforts to attract large-scale investments. By providing a clear and stable framework, the regime offers investors the confidence they need to commit to long-term projects. The 30-year stability period, combined with generous tax, customs, and foreign exchange benefits, makes RIGI an attractive option for investors in key sectors such as energy, technology, and infrastructure.

If successfully implemented, RIGI could be a game-changer for Argentina, driving economic growth, creating jobs, and positioning the country as a hub for large-scale international investment. i

ABOUT THE AUTHOR

Sergio Caveggia is a tax partner currently in charge of Transaction Tax area in Argentina. He joined EY Argentina in 1994 and has developed expertise over 26 years in international taxation and merger and acquisition matters. Sergio is also focus on servicing clients in the Private Client Services (PCS) area. He is highly experienced in inbound and outbound investments, buy side, sell side and restructuring services within the Transaction Tax area.

Sergio has served in a variety of industries and has also been involved in many due diligence procedures performed in the past over 20 years. He has given lectures in national universities and is a frequent speaker in tax seminars. He has also written several articles dealing with Argentina tax issues.

He is a Certified Public Accountant who graduated from University of Belgrano in Argentina. He obtained his Tax Specialist’s Degree at the University of Belgrano and has a postgraduate certificate in Business and Management from Universidad Catolica Argentina (UCA). He is also member of the Professional Council of Economic Sciences of Buenos Aires and the Argentina Fiscal Association.

Author: Sergio Caveggia

The North American continent, famous for its technical prowess and entrepreneurial zeal, is a global beacon of innovation.

While Silicon Valley remains the epicentre of this creative energy, the region's innovation scene is significantly broader, comprising a rich tapestry of firms, industries, and ideas that are already changing the future. From electric cars and space exploration to e-commerce platforms and AI, North America is a true hub of innovation

THE SILICON VALLEY POWERHOUSE

The US has long been at the forefront of technical innovation. The region's unique blend of venture capital, top-tier colleges and risk-taking mentality has created the perfect environment for the nurturing and growth of new ideas.

Tesla, headed by Elon Musk, has transformed the EV sector. The firm's dedication to sustainability via cutting-edge technology and sleek design has upended the traditional auto industry. It has also hastened the global shift towards greener transportation.

SpaceX, another Musk company, is pushing the envelope of space exploration with reusable rockets and grandiose (some say ridiculous) aspirations to colonise Mars. SpaceX is inspiring a generation of space enthusiasts — and creating new opportunities for scientific inquiry.

Beyond Silicon Valley, the US innovation scene is still rich and diverse. Amazon, Apple, Google, and Microsoft continue to set the standard for e-commerce, consumer electronics, software, and Cloud computing. America also leads in the fields of biotechnology and pharmaceuticals, thanks to Johnson & Johnson and Pfizer generating new medications and vaccines.

CANADA: THE RISING STAR

Historically overshadowed by its southern neighbour, Canada is quietly emerging as an innovation powerhouse. It has a vibrant startup ecosystem, world-class universities, and a supportive government that invests extensively in R&D.

"SpaceX, another Musk company, is pushing the envelope of space exploration with reusable rockets and grandiose (some say ridiculous) aspirations to colonise Mars. SpaceX is inspiring a generation of space enthusiasts — and creating new opportunities for scientific inquiry."

Shopify, a Canadian e-commerce platform, allows businesses of any size to develop and manage online shopfronts. Its user-friendly interface, broad app ecosystem and emphasis on customer success have made it a popular choice for entrepreneurs from around the world.

Element AI, a Montreal-based AI start-up, creates solutions for banking, healthcare, and manufacturing. The company's emphasis on “ethical AI” and responsible development is creating a new standard for the industry.

Canada is also distinguished by its expertise in clean technologies and renewable energy. It’s also making advances in hydroelectric power generation, as well as solar and wind tech. Businesses are creating novel solutions for energy storage and efficiency, as well as smart grids.

MEXICO: THE EMERGING HUB.

Mexico, with its huge population, booming economy and strategic location, is stepping up as Latin America's innovation hub. The country is home to an increasing number of entrepreneurs and technology enterprises offering solutions for domestic and international markets.

Kavak, a used automobile marketplace, is disrupting traditional car buying and selling by providing a transparent, user-friendly platform. The company's use of hi-tech for vehicle inspections and online financing has made it a popular choice.

Bitso, a Mexican cryptocurrency exchange, is bringing digital assets and blockchain technology to Latin American users. The platform promotes financial inclusion and allows for new forms of economic engagement.

Mexico is notable for its emphasis on social impact and sustainability. It is home to various social companies and non-profits that deploy technology to address poverty, inequality, and environmental challenges.

The North American continent, with its entrepreneurial drive, continues to be a global leader in tech advances. While Silicon Valley remains “the” hub of innovation, Canada and Mexico are making major contributions.

The region's journey towards a more connected, sustainable, and affluent future demonstrates its dynamism, resilience, and unshakeable commitment to growth. i

"The North American continent, with its entrepreneurial drive, continues to be a global leader in tech advances. While Silicon Valley remains 'the' hub of innovation, Canada and Mexico are making major contributions."

access more potential

Through Tailor-Made Solutions in Trade Finance

The Access Bank UK Limited takes an innovative approach to trade finance, delivering financial solutions that are designed for the African market.

/ Export Letters of Credit

/ Import Letters of Credit

/ Standby Letters of Credit

/ Payment Guarantee

Contact us:

tradefinancesbu@theaccessbankukltd.co.uk www.theaccessbankukltd.co.uk

Small is Beautiful in Banking: Little US Institutions Form a Financial Backbone >

By Yerbol Orynbayev

YerbolOrynbayev,formerDeputyPrimeMinister ofKazakhstanandWorldBankgovernor,reports forCFI.coontheAmericanbankingsector.

In the US, there are some 4,001 community banks and 134 regional ones. The majority of the country’s banking system comprises institutions with assets valued $10bn to $100bn — categorised as regional, or “community” banks.

But power is in the hands of the “Top Four”: JPMorgan Chase, Wells Fargo, Bank of America and Citi. These institutions took home 45 percent of the industry’s profits in Q3 last year, according to The Financial Times. That’s almost double what the other players collectively bring to the table.

There’s a definite gap there that, in times of rapid technological innovation and integration, could affect the banks that Americans use on a daily basis. And with branch closures ongoing, that cloud looms larger each day.

And that’s why I’m working to help the community banks navigate the changes. As an independent consultant, I’ve witnessed at first-hand the rapid transformation of the US banking sector. Emerging technologies like AI and machine learning (ML), the accelerating digitalisation of financial services and the rise of a new generation of tech-savvy customers have all disrupted the global banking landscape. And the big banks have the deepest pockets; they are seizing this moment. JPMorgan alone has committed to investing over $1bn annually in AI. Smaller banks face an uphill struggle to compete.

The ramifications could be huge. We might see to the widest tech disparity the sector has ever seen. Large banks, bolstered with AI and ML, could boost KYC procedures, enhance riskdetection measures, reduce the risk of lending. Their customers could benefit from more navigable digital interfaces, with personalised financial tools and analytics. This could sway once-loyal customers of regional and community banks, attracted by these sleek, secure and technologically innovative banking experiences.

If it comes to the worst, smaller financial institutions could experience bank-runs, a

deposit exodus. Shades of the collapses we saw last year?

That’s why it’s so important that regional and community banks keep up with the times — even if they don’t have the capital to invest as much in tech as JPMorgan can. Small banks can’t rest on the laurels of their brick-and-mortar branches. In a digital age, customers aren’t looking for face-toface interactions with their bank manager; they want convenience.

While serving on the Board of Directors at First Heartland Jusan Bank, one of the largest banks in Kazakhstan, I played a key role in steering a significant turnaround. Jusan had acquired two failing banks; my focus was on transforming them into dynamic, digital ecosystem platforms that seamlessly integrated financial and nonfinancial services.

At its core, this transformation wasn’t just about reviving two struggling banks; it was about reimagining their future.

We created a comprehensive ecosystem that offered a holistic suite of services, from traditional banking to innovative digital solutions, enhancing customer experience, engagement, and loyalty. This strategic shift positioned Jusan Bank as a regional leader in digital innovation, setting a new standard.

This business model put the interests of the customer first. We expanded Jusan from a mere lender to an institution that bundled nonfinancial services — including telecoms, travel, and an online marketplace — with traditional ones. Jusan became a one-stop shop, and broke through the limits of a traditional bank. It is now a centralised platform for all customer needs.

The result? We took Jusan from the edge of collapse to over $1.2bn in profits. And, really, that was all down to prioritising digitalisation. The same could apply to America’s community banking scene. With branch closures rising and the demand for brick-and-mortar services dropping, adaptation means survival. They

have to build out their digital offerings while maintaining the local ties that attracted their customers in the first place.

And now is the time to do that. Over recent years, regional banks faced a crisis. Silicon Valley Bank, Signature Bank, First Republic Bank and Silvergate Bank all collapsed Earlier this year, NYCB even faced troubles after its shares took a slide. Of course, these failures or jitters all had their own unique causes, and by no means represent the vitality and liquidity of all regional banks.

Nevertheless, regional and community banks have to turn the tide of this narrative and develop a CX that maintains — and grows — their customer base, especially with the dominance of the bigger lenders. They need to expand their

horizons and build out their ecosystems. I’m working to help them achieve that.

But it’s not just about the consumer.

As the Fed cuts its rates and more people are willing to take out loans, regional and community banks need to ensure they have solid credit-risk checks in place, and remain savvy about who and what they’re lending to.

Last year’s banking crisis highlighted how depositors react when risk management is inadequate. Technologies like AI and ML have a crucial role to play. They offer a cost-effective way to gain comprehensive insights into risk, preventing potential defaults and delinquencies. By incorporating non-financial data into their decision-making processes, AI and ML enable a

more holistic assessment process. This proactive approach positions banks to navigate future lending sprees and economic fluctuations, ultimately enhancing stability and customer confidence.

I work daily on helping regional banks implement these technologies to better understand, monitor and predict their customers’ behaviour — and deliver improved experiences to the individuals and companies that have banked with them for years. But, given how expensive and capitalintensive implementing these technologies can be, many simply cannot afford it.

The big four US banks are throwing all they can at emerging tech — but we can’t let the smaller players be left in the dust. I aim to help them stay abreast of these developments as cheaply and effectively as possible.

Modernising the US banking sector shouldn’t be limited to the JPMorgans or Wells Fargos of the world. AI, ML and other emerging technologies will revolutionise operations and services across the sector and the country — we just have to ensure that only the biggest lenders benefit.

With rates cuts soon coming, all banks need to progress into a customer-first, forward-looking era. And I stand with the regional and community banks as they do so. i

ABOUT THE AUTHOR

Yerbol Orynbayev is an independent financial services consultant. He served as the Deputy Prime Minister of Kazakhstan from 2007-2013 and Aide to the President on economic policy from 2013-2015. He also worked as governor of the World Bank on behalf of Kazakhstan.

Author: Yerbol Orynbayev

Telegram Lives: Pavel Durov in Trouble but Refuses to Back Down

Russian-bornactivistandproponentofindividual freedominhotwater,butdefiant.

Pavel Durov, founder of Telegram, is a man cloaked in both admiration and controversy. His creation has emerged as a haven for free speech and privacy — but its encrypted nature has drawn interest from law enforcement agencies around the world.

Durov's journey is one of invention, disobedience, and a never-ending battle against the establishment. Born in 1984 in Saint Petersburg, Russia, he was fascinated by technology from a young age. He excelled as a scholar, especially in languages and programming.

In 2006, he founded VKontakte (VK), Russia's counterpart to Facebook, which quickly became popular. But his open criticism of the government, and refusal to co-operate with censorship orders, put him in conflict with the authorities.

ORIGINS OF TELEGRAM

Durov founded Telegram with his brother, Nikolai. The messaging service prioritises privacy and security for its users. End-to-end encryption and self-deleting messages made it an appealing platform for those who wanted connection without surveillance. Telegram's user base grew rapidly, attracting activists, journalists, and dissidents from around the world.

CLASH WITH AUTHORITIES

Telegram's devotion to privacy came with obstacles. Governments and law enforcement agencies have requested access to user data, citing suspicions of criminal behaviour. Durov remained staunch about user privacy. This has garnered him both praise and condemnation; some hail him as a champion of digital rights, while others accuse him of facilitating illegal activities.

In recent years, Durov has faced criminal charges in different jurisdictions. In Russia, he was accused of promoting extremism and organising large-scale protests. In Iran, he was charged with disseminating propaganda against the regime. In the US, he was investigated for alleged money laundering and financing terrorism.

"Its decentralised structure and devoted user base make it a formidable force."

Durov has disputed all claims, calling them politically motivated efforts to silence him and damage Telegram. He has promised to fight the charges and defend his beliefs — at the risk of going to prison.

THE IMPACT OF TELEGRAM

Despite all this, Telegram itself continues to grow. It has more over 500 million users and remains a popular medium for communication, information exchange, and advocacy. The app's decentralised design and open-source code make it difficult to shut down or censor, assuring its survival — for now, at least.

Durov sees a future in which people have complete control over their data and communications. He believes blockchain technology and cryptocurrency can play a critical role in realising this vision. Telegram established its own blockchain platform, TONNE, and its native currency, Gramme. But the project has been abandoned for regulatory issues.

A CONTROVERSIAL FIGURE

Pavel Durov has built a platform that empowers people and encourages free speech. His unyielding dedication to privacy has, however, ignited criticism and legal charges. Hero or monster? Whatever the case, there’s no disputing that Durov has had a lasting impact on the tech industry.

TELEGRAM TO THE FUTURE

The app’s future is subject to ongoing legal battles and regulatory investigation. Its decentralised structure and devoted user base make it a formidable force. As the world struggles to strike a balance between free speech, privacy, and security, Telegram is likely to remain at the centre of debate.

Durov has demonstrated the power of invention and the public’s interest in protecting individual liberties. He developed a platform that challenged the status quo, allowing people to connect freely and safely. Whatever the outcome of his legal challenges, his status as a digital rights pioneer is solid.

DEEPER DIVE INTO DUROV

Durov's itinerant existence and self-imposed isolation have heightened his mystique. With a reclusive personality, he has a perfect profile

for a Telegram user — and that is, indeed, how he generally communicates with all and sundry.

The entrepreneur's net worth is said to be in the billions, putting him in the wealthiest tier of the IT world. He has used his riches to sponsor a variety of charitable causes, including digital rights organisations and refugee relief.

His vision extends beyond Telegram. He is a supporter of decentralisation and believes that

blockchain technology has the potential to revolutionise many industries.

Durov's detractors claim that Telegram's encryption allows criminals and terrorists to communicate incognito. They further argue that the site promotes disinformation and disseminates hate speech.

According to Durov's admirers, Telegram is an essential tool for free expression and privacy. They claim that the platform's benefits outweigh

its hazards, and that any attempts to regulate it would jeopardise that balance.

The tale of Pavel Durov and Telegram is just one strand of a larger debate about the destiny of the internet.

The challenges and controversy are unlikely to go away any time soon. Durov's unwavering dedication to his ideals in the face of adversity make him a standard-bearer for individual liberties in the digital age. i

Autism in Business: Help, or Hindrance?

hat do you think the qualities of a successful business leader might be?

If you were to ask this question to the general population, they are likely to come back with attributes that include the ability to think clearly, to be able to juggle multiple tasks and the ability to accurately manage the fundamentals including forecasting cashflow and managing the workforce.

Interestingly, many of these qualities come especially naturally to people with autism. Their

high attention to detail and often unconventional ways of thinking are often especially valued within industry. However, there are also some negative points which it is important to be aware of, especially for those who might have autistic colleagues or team members.

This article will provide a whistlestop tour of the positives and negatives of autistic people working in industries such as economics, finance and general business – and may well provide food if you have autistic colleagues on your team.

By Craig Murphy Managing Director, ALT Agency

AUTISM IN BUSINESS – THE POSITIVES

Perhaps the main overall positive is one we have already mentioned – that autism often manifests itself by showing high attention to detail.

Autistic people may have heightened sensory perception, meaning they often notice details in their environment that others might overlook. This could involve visual details, sounds, textures, or patterns, allowing them to focus on specific elements more intensely. Autistic individuals often engage in "local processing" rather than "global processing." Local processing

refers to focusing on specific parts or details rather than seeing the overall picture or context. This cognitive style helps them excel in tasks that require precision and detail orientation – such as mathematics, economics, programming, or research, where precision and a deep focus are valued.

Indeed, autistic people will often find it easy to focus on numbers, they often come very easily. This is why many autistic people excel with tasks like data analysis and conversion rate optimisation.

Likewise, autistic individuals often excel when it comes to being specialists within a particular area. They will often have areas of deep interest, sometimes referred to as "special interests." When engaged in these interests, they can exhibit intense concentration and focus on minute details, leading to a greater understanding of the subject, which makes them valued across multiple industries.

However, although we cover negatives later in this analysis, it is worth pointing out here that this attention to detail can also become obsessive. It is easy for many autistic individuals to become too detail-orientated, meaning they are prone to obsessing over every detail, every price, every proposal, every design and, for those in the computer programming and web design industry, every line of code.

Another major positive of working with an autistic business leader is that the need to execute to the highest possible standard constantly shines through. The job will always be completed properly, and to-do lists always get completed. Part of this is down to the ability to “switch off from the noise”, often with less time spent on the frivolous and more time executing, with this high level of “hyper-focussing” leading to high productivity levels.

If you work with an autistic person, you will probably have noticed their honesty and loyalty – you may have even experienced them being a little too honest sometimes. This another trait of autism – but one that is appreciated more often than not.

They will often also have a huge sense of loyalty to their tasks, so much so that they sometimes will feel sad or lost when a particular project or task comes to an end.

AUTISM IN BUSINESS – THE NEGATIVES

So far, we have looked at the positives – but there are also some considerable negatives of having autism in the workplace.

We have already touched upon one – the manifestation of obsessive behaviour. Obsessing over things too much can lead to long periods of not being able to switch off or relax, causing high levels of anxiety and depression, something which can be extremely problematic in the fastpaced, competitive landscape in which we all operate.

It is also important to be aware that, while many of us dislike corporate buzzwords or phrases, they can often actively confuse an autistic person, especially those vague terms that are not specific, with no hard action points or outcomes. Examples might include “owning the process”, “circle back”, and “silos”. They often cause more harm than they do good because they usually result in very little actually happening.

Managing staff members or a team can often be a difficult task for someone with autism. Autistic individuals may face challenges with workplace social interactions, including reading nonverbal cues, understanding social nuances, or navigating small talk. This can sometimes lead to misunderstandings or difficulties with teamwork, because they can sometimes come over as very blunt, without necessarily meaning to do so.

Direct and literal communication can sometimes be misunderstood by colleagues, who may be more accustomed to indirect or nuanced styles of conversation. Similarly, autistic employees might misinterpret sarcasm, irony, or implied meaning.

This is related to another trait of often seeing things in black and white, or binary. A bit like a light switch that’s either on or off, things always seem to be one thing or another to an autistic person, with no in-between and no shades of grey.

Likewise, it is easy for an autistic person to feel a constant sense of disconnect. They will often struggle when providing instructions because they feel they aren’t saying something clearly or in the right way, meaning that others aren’t understanding what they are saying.

Finally, something to be especially aware of if you have an autistic colleague is that some experience heightened sensitivities to light, sound, touch, or other environmental stimuli. Certain workplace environments, such as open-plan offices, may feel overwhelming and distracting. Likewise, sudden changes in the workplace routine or unexpected events can be challenging for autistic individuals, as they often prefer predictable and structured environments.

CONCLUSION

Let me be very clear – everyone is an individual, including autistic people.

Not all the points I have discussed will apply to every autistic person. Some will, and some won’t. However, these are the attributes that are more likely to apply to those with autism.

If you have an autistic colleague, you may well recognise some of the points I have raised, whether they are the positive or negative ones. However, one thing is for sure – autistic people bring many strengths to the workplace and offer a huge amount to their teams.

Their ability to see things differently and to work within intricate levels of detail are relied upon right across the globe, day in and day out. By leveraging their strengths and providing supportive environments, autistic individuals will continue contributing significantly to the workplace across multiple industries, especially finance, economics and programming, long into the future. i

Age Diversity on Corporate Boards: Is it a Case of Old Fogeys vs Upstarts?

Diversity and

inclusion are topics of our time in discussions

about

corporate governance.

There’s been significant progress in gender and racial diversity on boards, but age remains a relatively unexplored frontier.

It’s an important issue, with regional variations, potential benefits, and a fair share of challenges. Each generation has its own perspectives, shaped by life experiences, historical contexts, and cultural influences.

Younger people typically show a deep understanding of emerging technologies, digital trends, and evolving consumer preferences. Those things are essential for staying ahead in an evolving business landscape. Their older colleagues bring to the table a wealth of knowledge, experience in navigating complex business cycles, and institutional memory. Both sides provide valuable insights for strategic decision-making.

Research supports the notion that age diversity enhances corporate performance. A study published in ResearchGate found that boards representing multiple generations tend to outperform those that don’t. A PwC survey backed that up, showing a positive correlation between age diversity and long-term financial outlook.

CHALLENGES AND BARRIERS

Despite the potential benefits, achieving age diversity poses real challenges. Ageism, whether conscious or unconscious, can lead to the

knee-jerk reaction that younger candidates lack experience — or that older ones are resistant to change. Traditional recruitment practices prioritise established networks and individuals with extensive experience, potentially overlooking emerging talent. When boards favour seniority and experience above all else, it can be hard for younger directors to live up to their potential.

GLOBAL PERSPECTIVES

Different regions exhibit varying approaches to age diversity. In North America, progress has been made in terms of gender equality and diversity — but the age factor remains a challenge. Many boards still opt for executives in their 50s and 60s, with relatively few younger members joining the team.

European countries have been more proactive in this area. In Norway, for example, quotas for younger directors have introduced. But generally, challenges remain in overcoming traditional recruitment practices.

In many Asian countries, respect for seniority and experience is deeply ingrained in corporate and society culture. This alone makes it difficult for younger people to ascend to board positions. But things are changing, as companies begin to recognise the value of generational diversity.

A ROADMAP FOR CHANGE

There are several effective strategies to foster age diversity. By actively seeking out candidates

with diverse backgrounds and expertise, new recruitment channels open up, expanding networks and fostering partnerships with organisations that focus on developing young leaders.

Mentorship and sponsorship programmes introduced at an early stage can support the professional development of younger directors, providing them with guidance, opportunities for growth, and, eventually, access to senior leadership.

Fostering an inclusive culture that values diverse perspectives and encourages can open dialogue and collaboration across generations. This creates opportunities for informal interactions, promotes active listening, and recognises the potential of novel contributions. Term limits and staggered elections help to create opportunities, while ensuring continuity as well as generational knowledge transfer.

Diversity, in all areas, is a crucial component of forward-thinking companies. By embracing a multi-generational approach, a broader range of perspectives, experiences, and skills is ushered in.

It's time for companies worldwide to recognise the value of both lived experience and the ingenuity and enthusiasm of youth — and take proactive steps to benefit from the full spectrum of talent on hand. i

Navigate risk with confidence

As a leading global provider of credit ratings, research, and risk analysis, we offer valuable insights into the financial stability and creditworthiness of organizations, debt instruments, and securities. For more information, please visit ratings.moodys.io

The

Great

‘Ex-Retire Hire’:

Over-50s Brought In to Plug Labour Shortage

By Guy Garnett Principal Consultant

Group.

Guy Garnett on the boomerang effect workplaces are seeing, with the recentlyretiredbeingsuddenlyrehired…

According to recent research from LinkedIn, almost three-quarters of UK firms are turning to retirees to fill vacant roles.

It’s a trend seen across some of Britain’s largest employers: EasyJet, Halfords and McDonald’s all recently announced recruitment drives that aimed to attract an older workforce.

But — after decades of recruitment favouring younger generations and older workers being routinely overlooked — many may be asking what’s changed.

Brexit and Covid-19 had a dramatic impact on the UK’s labour market. The end of free movement means EU migrant workers no longer have an automatic right to work in the UK. That alone caused a skills shortage across industries.

Research from the Office of National Statistics (ONS) reveals that half-a-million more people are out of work due to long-term sickness than pre-pandemic. Those aged 25-34 have seen the steepest drop in health.

The reasons for that demographic’s ill-health can be debated, but taking it into account, it’s no surprise that employers are looking to retirees and the over-50s. For those suffering from the cost-of-living crisis, or concerned about economic instability, job opportunities for the over-50s will be a relief.

"Employers will want to avoid any accidental similarity bias, where hiring managers subconsciously gravitate towards those who seem 'like them'. A younger manager may hire only graduates and overlook older applicants."

And from an employer’s perspective, an older workforce holds wealth: that of experience and disparate skills. While it’s nice to see greater inclusivity for older workers, employers will need to be aware of unconscious bias during recruitment — particularly when hiring within a specific demographic.

Confirmation bias, especially, plays into preconceived notions a recruiter may have. That can hinder candidates before they’ve even been invited to an interview.

Equally, employers will want to avoid any accidental similarity bias, where hiring managers subconsciously gravitate towards those who seem “like them”. A younger manager may hire only graduates and overlook older applicants.

This results in a less diverse and less inclusive work environment.

To avoid this, employers must ensure that the language in job descriptions isn’t coded to put off specific demographics from the outset. Interview processes should be reviewed to ensure inclusivity: asking all candidates the same questions, and ranking them based on skillset, as opposed to gut feeling.

Diversity and inclusion should be an important part of any recruitment process. Studies show that more diverse teams generate more innovation revenue — up to 19 percent more. And while ageism in the workplace has long been overlooked, this year’s push to hire ex-retirees will hopefully spark future discussion over how to make workplaces more inclusive for all ages. i

at New Street Consulting

Jimmie Rodgers: Rhythm of the Railroad — and that Sweet Yodel >

Known to many as ‘The Father of Country Music’,theMississippi-bornbrakemanmadea genrehisown.

Few figures in American music history have been as influential — yet as little known — as Jimmie Rodgers.

The son of a Mississippi railroad section foreman, Rodgers worked on trains himself and came to be known as the “Singing Brakeman” and “America’s Blue Yodeller”. He was among the first to be honoured by the Country Music Hall of Fame, and is widely recognised as the “father of country music”; his pioneering, jaunty style established the groundwork for the genre.

Rodgers' raw-but-sweet vocals, lilting yodelling and relatable, emotional lyrics captured the spirit of 1920s America. Weaving themes of love, loss and the open road into a musical tapestry, his music connected fans across the country. His influence was so great that a star-studded tribute album, The Songs of Jimmie Rodgers, was issued as recently as 1997, with contributions from Willie Nelson, Bob Dylan, Jerry Garcia (of Grateful Dead fame), and the grumpy, but muchloved, Van Morrison. Dylan lavished Rodgers with praise in the album cover notes.

Rodgers was born in Meridian, Mississippi, in 1897, and his path to fame was anything but conventional. True to his Brakeman moniker, he spent his formative years working on the railroads, absorbing the rattling rhythms along with the life stories of America’s blue-collar workers.

His lived experiences lent authenticity and roughness to his output. Guitar in hand, heart full of song, Rodgers’ extraordinary talent forever changed the course of American music. His influence was sparked by his early recording sessions in the late 1920s, and burned brightly until his untimely death from TB in 1933.

He pioneered the "blue yodel," a unique singing technique that became synonymous with his name. His lyrics incorporated elements of blues, folk, and jazz, and spoke to the challenges and aspirations of ordinary folk.

THE SINGING BRAKEMAN

Born James Charles Rodgers, the revered

brakeman spent his early years criss-crossing the plains from Mississippi to Texas. The sights, sounds and stories of those journeys would be immortalised in his songs.

This hands-on experience of a rugged trade shared with working-class people gave his work authenticity and brought him closer than ever to his audience. The tracks of the railway ran throughout his artistic career.

Rodgers developed his musical skills while amusing his co-workers with impromptu performances. His distinct style quickly drew attention: his guitar repertoire included adding rhythmic strumming, fingerpicking, and “bottleneck” slide.

The troubadour’s musical career took a dramatic turn in 1927. After years of performing locally and perfecting his craft, he went to Bristol, Tennessee, to audition for Ralph Peer, a talent scout for Victor Talking Machine Company. Peer, known for his keen ear, was immediately taken with Rodgers' raw talent and engaging persona.

The audition flowed into Rodgers' first recording session, where he laid down compositions that would become timeless: Sleep, Baby, Sleep and The Soldier's Sweetheart demonstrated his vocal and storytelling prowess, enthralling audiences with his lyrics and rhythms.

The themes of his early songs reflected his life experiences, and tackled those of the broader community. He sang of love and sorrow, suffering and strength, and painted evocative pictures of everyday life in rural America. Listeners recognised their own lives in his lyrics, forming a musical bond that would sometimes last for lifetimes.

Rodgers' reputation began to spread, crossing geographical and societal divides; his music was now popular with people from all walks of life. He became a symbol of the working class, a voice for the voiceless, and a pioneer of a new musical genre.

Bettmann Archive

THE BLUE YODEL

Among Jimmie Rodgers' many significant songs, one stands out as a watershed event, and a cornerstone of country music: Blue Yodel (T for Texas). This landmark recording, released in 1928, confirmed Rodgers' hallowed standing.

Blue Yodel features Rodgers' trademark blend of blues, folk, and yodelling, a sound that was both familiar and revolutionary. It begins with a simple but enticing guitar riff, opening a space just begging to be filled with his unmistakable vocals. The song captivates — now as then — from the first notes.

Like many of his songs, this one talks of love, sorrow, desire and (potentially) revenge, the engrossing and somehow relatable tale of a sad and vengeful man travelling across the Lone Star State.

The chorus, with its T for Texas, T for Tennessee refrain, is a masterclass in vocal dexterity.

Rodgers had outstanding yodelling abilities as well as the ability to fluidly move between vocal registers. The song's musical composition is deceptively simple, depending on a recurring verse-chorus pattern.

The result is a song that is both intimate and powerful, expressing a core of human experience in a way that few other recordings of the time could match.

Blue Yodel (T for Texas) had a significant influence on the evolution of country music, establishing the "blue yodel" as a recurring feature of the Singing Brakeman’s output, attracting a slew of imitators and fans.

The song has cultural significance, too. Its themes of travel, grief, and fortitude resonated with ordinary people — especially during the Great Depression. Rodgers' music provided peace and connection to those

going through hard times, a much-needed break from the harsh realities of everyday life.

While Blue Yodel is Rodgers' best-known tune, his discography is a grab-bag of remarkable songs that demonstrate a remarkable range of skill. Songs like In the Jailhouse Now, Waiting foraTrain, and MuleSkinnerBluesshowcase his broad, unusual and honest talent.

Jimmie Rodgers' music could move his audience on an emotional level. His songs — often featuring firearms, a very American factor — addressed the human condition, and led to his enduring legacy.

Later in his career, Rodgers’ personal style became inexorably tied with country music. In posters and art, he would pose in cowboy hat and boots, guitar in hand, typical Western scenes behind him. This capitalised on the burgeoning

popularity of Western cinema, extending Rodgers' reach and impact.

Rodgers' contribution to the visual and performative components of country music cannot be over-emphasised. He influenced country music stars including Gene Autry (“The Singing Cowboy”), Hank Williams, and Johnny Cash. Cash credited Rodgers as “a huge influence”, noting his storytelling abilities and raw emotional delivery.

Rodgers' music has appeared in a number of films and television shows, frequently those themed in the American West. His standing as a cultural icon is indisputable. Jimmie Rodgers contributed to America’s visual and musical history, and his influence on the careers of innumerable country singers is obvious.

The Singing Brakeman certainly had an indelible influence on American society. i

> Kellogg Insight: For US Corporations, Secured Debt is Out —

But Is It Really Game Over?

SBy Abraham Kim Senior Research Editor. Based on the research of Efraim Benmelech, Nitish Kumar, and Raghuram G Rajan. ThisstoryfirstappearedinKelloggInsight

ummary secured debt was once the most common type of debt issued by US corporations — but no more.

In the early 1900s, corporations largely relied on secured debt to raise money. Borrowers were required to offer assets as collateral, which made the lender more willing to give borrowers a low interest rate. Secured debt thus seemed like a win–win.

Over the past century, however, there has been a marked shift away from secured to unsecured debt, according to research by Efraim Benmelech, a professor of finance at the Kellogg School, Raghuram Rajan of Chicago Booth, and Nitish Kumar of the University of Florida.

The team analysed the issuance of debt by American corporations since 1900, and found that secured debt (out of all debt) fell from a peak of 98.5 percent in 1900 to just below five percent in the early 2000s.

This was because of financial developments such as improved accounting reports and disclosure requirements — which allowed lenders to better assess the reliability of corporations. And once the door to unsecured debt was opened, corporations really dug in.

Their strong preference for unsecured debt has had a lot to do with a growing recognition that, in a world riddled with crises, financial flexibility is necessary.

“Because of the risk of financial crises,” Benmelech says, “firms now try to maintain an element of contingency: ‘I’m going to refrain from issuing secured debt in good times to keep my assets untapped so that I can go and tap them when I really need to.’”

THE LONGEST PROJECT

As a doctoral student, Benmelech became intrigued by the dynamics of secured debt. While writing his dissertation, he discussed the topic with Rajan, one of his advisors. “Both of us were fascinated by this phenomenon and wanted to pursue it,” Benmelech says.

They collected initial data and identified a steady decline in the use of secured debt in the early 20th Century. But as is often the case with life and work, other priorities took hold, and they postponed their research.

Percentage of secured debt out of total debt issued by U.S. Corporations from 1900 to 2019. Data sources: Walter Hickman, the director of the Corporate Bond Research Project at the NBER; the Commercial and Financial Chronicle (CFC); Mergent,

When Benmelech, Rajan and Kumar resumed the investigation, years later, they studied information on debt issuance from 1900 to 2021 from sources including the National Bureau of Economic Research, US bond database reports, publications and manuals.

A clear trend emerged. “We saw a rapid decline in the use of secured debt, especially by large publicly traded firms in the US since the 1900s.”

The discovery, confirmation and publication of their findings took place over the following 21 years. “What began as a discussion between a PhD advisor and a student,” Benmelech recalls, “turned out to be a long collaboration — probably the longest project I’ve ever worked on.”

FLEXIBILITY IS KEY

Though the decline of secured debt has been steep, it hasn’t been a nosedive. Research reveals mini peaks and valleys in the general fall.

Benmelech and colleagues found that the issuance of secured debt followed a counter-cyclical pattern to the national economy — falling when GDP went up and rising when GDP went down. The trend was particularly pronounced in the early part of the century and around times of financial crisis.

The percentage of secured debt issued was as low as 40.5 percent just before the start of the Great Depression in 1929 and then, as economic conditions worsened, shot up to 85 percent in 1935.

In a similar manner, secured-debt issuance was 10.6 percent in the early throes of the global

financial crisis in 2008 — and continued to rise until it hit 16.2 percent in 2010. It then sank back, reaching 10.9 percent by 2019.

“It’s a trend that we actually saw in Covid as well,” Benmelech says. “Many firms had to raise money to weather the storm. But there was a real concern from lenders and bond holders, who thought, ‘The world is sort of coming to an end. How can we be reassured that firms will be able to pay us back?’ And so firms were more likely to issue secured debt.”

The high recurrence of economic downturns probably pushed corporations to prioritise unsecured debt in normal times and reserve their assets to borrow in hard times, when lenders tend to tighten the lid on their coffers.

“If I use secured debt when I’m doing well and the economy is doing well, what will I do if something bad happens, if we enter into a recession?” Benmelech says. “The main drawback of secured debt is this loss of financial flexibility.”

Why did the use of secured debt fall so drastically after 1900? The researchers propose several potential explanations.

The quality of information available to lenders improved, for one. Accounting practices made great strides in the early 1900s; then, in the 1930s, the Securities Exchange Commission was formed, leading to tighter regulations over business disclosures. With technological advancements and better information, “lenders or bond holders no longer had to rely only on the

Compustat, and Moody's Industrial Manual. RileyMann

security of collateral”, Benmelech says. “They were able to say, ‘We can screen and monitor the firms better; we are not going to resort to the harsh measure of requiring collateral because we have enough reliable data.’”

The 20th Century also saw a shift toward stronger corporate governance — including moretransparent and responsible rules, practices, and policies, often steered by a board of directors. There was also a shift in bankruptcy practices to prioritise lenders in case of a default.

These changes made lenders increasingly confident that large corporations would repay their debt, even if it was unsecured.

And the nature of companies has changed. “The modern firm has fewer assets on its balance sheet,” Benmelech says, referring to the decline of traditional assets, such as property and equipment, that could be used as collateral. Companies have been relying more heavily on intangible assets, such as brands and intellectual property.

“But,” says Benmelech, “secured debt is a better friend of tangible assets.”

BUILT FORD TOUGH?

While secured debt has lost popularity, it still has a role to play — even when the economy is relatively strong.

In 2006, when the capital markets were thriving, Ford mortgaged nearly all of its domestic assets as collateral to raise a $23.6bn credit line to overhaul its business.

“It was a move that was heavily criticised in the financial media and by experts, who essentially said, ‘Ford is really betting on the house, because they’re using everything that they have to issue secured debt. And if something bad were to happen, they would have nothing left,’” Benmelech says.

Not two years later, the Great Recession struck. It could have bankrupted Ford, which had no remaining assets to use as collateral. But the company had planned ahead, and held onto enough of the cash raised in 2006 to carry it through the recession.

The gambit turned out to be well worth the risk, allowing Ford to avoid a chapter 11 bankruptcy — unlike its rivals Chrysler and GM.

“There was a real concern that Ford was taking on too much secured debt,” Benmelech says, “but they understood that they had to do it. And that proved to be very successful.” i

Theregionisnowregardedastheglobalepicentreofinnovation.

The Asia Pacific region, home to both established tech giants and a new insurge of start-ups, is experiencing a technological revolution that is changing sectors, transforming cultures, and driving economic growth.

From e-commerce and mobile payments to AI and renewable energy, Asia Pacific is at the vanguard of fresh thought and new tech, propelling progress to the limit of what is possible. Some important actors and trends are shaping this dynamic environment.

THE TECHNOLOGY TITAN

China, the world's second-largest economy, has emerged as a tech powerhouse, with a thriving innovation ecosystem and a rapidly expanding digital economy. The country is home to some of the world's largest and most powerful businesses, including Alibaba and Tencent.

E-commerce giant Alibaba has transformed online shopping. Its platforms, which include Taobao and Tmall, bring together millions Chinese customers and sellers, boosting trade and economic growth.

Tencent, a digital corporation, offers a range of products and services including WeChat, an app that combines messaging, social networking and a payments system. WeChat has become part of everyday life in China, changing the way people communicate, connect, and transact.

Beyond these established firms, China is experiencing a boom in the start-up arena. It’s a leader in AI, with businesses such as SenseTime and Megvii producing cutting-edge solutions for facial recognition, self-driving cars and healthcare.

China is keeping a close focus on renewable energy, too, leading the world in solar and windpower installations.

INDIA’S DIGITAL REVOLUTION

The world's most populous democracy is undergoing a digital revolution. With a huge and young population, rising smartphone penetration and government programmes promoting digital inclusion, India is a hotbed of innovation.

Paytm, a digital payments platform, has allowed millions of consumers to make payments, move money, and access financial services via their

"From e-commerce and mobile payments to AI and renewable energy, Asia Pacific is at the vanguard of fresh thought and new tech, propelling progress to the limit of what is possible. Some important actors and trends are shaping this dynamic environment."

mobile phones. Ola Cabs, a ride-hailing service, has rocked the Indian transport market.

India's start-up economy is also growing, with companies providing novel solutions for a variety of industries, including healthcare, education, and agriculture. The tech emphasis is also visible in the Indian Space Research Organisation (ISRO), which has attained major milestones, including the successful launch of the Mars Orbiter Mission.

SOUTH KOREA: INNOVATOR SUPREME

South Korea is another pioneer in innovation, home to electronics behemoth Samsung, a global company that has continuously pushed the envelope. It creates everything from smartphones and televisions to semiconductors and household appliances.

Coupang, an e-commerce firm, has revolutionised the online retail market by combining swift delivery with fine customer service. The company's logistical network and personalised recommendations have made it a popular choice among domestic consumers.

South Korea is also distinguished by its robust R&D capabilities and government support for tech development. The country is a leader in 5G, with telecom providers rapidly deploying these networks to enable new apps and services in virtual and augmented reality, as well as the Internet of Things (IoT).

SINGAPORE: THE SMART NATION

This city-state is noteworthy for its efficiency and forward-thinking policies, and establishing itself

as a "smart nation". The government is spending big to improve citizens' lives and boost national competitiveness.

Grab, a Singapore-based super app, provides services including ride-hailing, food delivery, payments, and more. Its success demonstrates the region's growing hunger for digital services — and its potential.

Another Singaporean business, Sea Ltd, is a gaming and e-commerce giant featuring platforms such as Garena and Shopee that attract millions of users throughout South East Asia.

The tiny nation’s innovation ecosystem puts special emphasis on sustainability and smart solutions. It’s experimenting with ways to tackle urban issues such as traffic congestion, energy efficiency, and waste management.

The Asia Pacific area is fuelled by a mix of tech titans, start-ups, government assistance programmes, and a growing appetite for digital services. From China's IT growth to India's digital revolution, South Korea's technological strength, and Singapore's smart projects, the region is on the move.

As the region continues to invest in education, R&D and infrastructure, we can expect more ground-breaking inventions in coming years. These breakthroughs could have far-reaching implications for the global economy. The Asia Pacific’s road to a more connected, sustainable, and affluent future demonstrates vitality, resilience, and unwavering pursuit of progress. i

"As the region continues to invest in education, R&D and infrastructure, we can expect more ground-breaking inventions in coming years. These breakthroughs could have far-reaching implications for the global economy."

Air Austral

The French Airline in the Indian Ocean

With Air Austral, go discover the Indian Ocean

Air Austral operates daily flights from its Reunion Island’s hub to Paris. It offers also flights to South Africa, Mayotte, Mauritius, Seychelles, the Comoros, Madagascar, India, Thailand … so many dreams destinations.

Austral subsidiary In codeshare with Operated in partnership with

(1) waiting for programming

> Women’s Brain Foundation Unveils Groundbreaking Studies and Bold New Depression Campaign

Withpioneeringstudiesandapowerfulnewcampaign,theWomen’sBrainFoundation (WBF)

underscores the urgent need to address sex and gender differences in

The Women's Brain Foundation (WBF) continues to lead research and advocacy on the critical role of sex and gender differences in neurological diseases. The foundation is set to publish two groundbreaking studies that reveal how these differences impact brain health, especially in conditions like Alzheimer’s and cognitive decline. In tandem with Mental Health Awareness Day on October 10, WBF launched a new campaign spotlighting women’s heightened risk for depression. Through these initiatives, the foundation drives its mission to address the unique challenges women face in brain health.

As Dr Antonella Santuccione Chadha, CEO and founder of WBF, highlights, these studies mark a significant advance in understanding sex and gender differences in brain health, Alzheimer’s, and clinical research design. “The findings open new avenues for creating more precise, culturally relevant, and gender-sensitive approaches to brain health,” Dr Chadha states. These studies focus on the global issue of cognitive decline, revealing how gender disparities increase women’s risks, particularly in the Global South.

The first study examines how gender inequalities influence cognitive decline and dementia risks among women. Professor Gabrielle Britton, lead scientist at the Center for Neuroscience and the Panama Aging Research Initiative, explains the study’s relevance: “The study of women’s brain health in regions with high levels of gender inequality, such as Latin America, is a priority. In these countries, gender inequality significantly disadvantages women in areas like education, employment, and politics. One of the most pressing disadvantages is the burden of unpaid care work. We now understand that women in countries with greater gender inequality are more affected by factors linked to brain pathologies like dementia, making a sex/gender perspective essential to advancing brain health globally.”

Using Alzheimer’s disease as a case study, the research highlights how biological sex differences interact with gender norms, creating compounded risks for women. The authors advocate for

incorporating sex and gender considerations into health policies, research frameworks, and clinical interventions, particularly in regions where women face systemic disadvantages.

The second study, the result of a collaboration between WBF and researchers from the University of Toronto led by Prof Carmela Tartaglia, focuses on the diagnostic process. This study reveals how characteristics of informants—such as their relationship to the patient, gender, and contact frequency—can introduce biases into Alzheimer’s diagnostic staging, particularly in the Clinical Dementia Rating Sum of Boxes (CDR-SB). These biases can distort evaluations and ultimately affect treatment plans and patient outcomes. Dr Tartaglia calls for increased awareness of these biases to refine diagnostic tools and enhance Alzheimer’s assessment accuracy.

These new studies underline two key issues: the urgency of addressing sex and gender disparities in brain health research, and the potential biases in Alzheimer’s diagnostic tools. In regions like the Global South, where structural inequalities disproportionately affect women, it is critical to include these factors to ensure effective interventions. The second study emphasises the need for improved clinical evaluation methods that are less susceptible to biases introduced by informant characteristics.

These findings contribute to a growing body of research advocating for methodologies that consider diverse individual realities rather than relying solely on binary models. “It is crucial that

we continue to build on this research to address the unique challenges women face across different societies,” Dr Chadha emphasises.

Following the success of the Alzheimer’s “Women Quota” Campaign, WBF launched a new campaign on October 10 for Mental Health Awareness Day, focusing on the reality that four out of five people affected by depression are women. This striking statistic underscores the urgent need for gender-sensitive mental health research, policies, and support systems. With the powerful slogan “Women Don’t Deserve This Majority,” the campaign seeks to raise awareness and ignite change, advocating for improved prevention, diagnosis, and treatment strategies that address women’s unique mental health needs. It’s a call to action, stressing that the mental health crisis disproportionately affecting women can no longer be overlooked. i

ABOUT THE WBF

Established in 2017 by a team of globally recognised neuroscientists, clinicians, and policymakers, the Women's Brain Foundation is dedicated to uncovering evidence-based neurological differences between sexes and genders. Over the past seven years, WBF has published significant research on biological, societal, and economic disparities and their impacts on health. In early 2025, the foundation will officially launch the Research Institute for Sex and Gender Precision Medicine in Basel, Switzerland. Connect with WBF on LinkedIn, X (formerly Twitter), Instagram, TikTok, YouTube, and Facebook.

Otaviano Canuto & Antônio Jorge Martins: The Automotive Transition on the Road to Decarbonisation

The journey to decarbonise the planet is closely tied to the energy transition, with the shift from fossil-fuelled cars to renewable energy vehicles playing a central role. This shift is creating a revolution in the automotive industry, reshaping markets and sparking new dynamics.

A HISTORICAL SHIFT IN AUTOMOTIVE POWER

The automotive sector has undergone profound transformations over the past century. Traditional European, American, Japanese, and later Korean automakers were instrumental in driving global industrialisation throughout the 20th century. However, with the rise of electric and hybrid vehicles, the industry has seen new players enter the field, particularly from China. This shift has been marked by geopolitical and technological competition, including a fierce trade war that could shape the future of decarbonisation.

From its origins in small, family-owned enterprises, the automotive industry grew into a global force. The development of the internal combustion engine in 1886 marked a major milestone, and by the 1990s, American, European, Japanese, and Korean companies dominated the sector. Their hold began to wane as Tesla entered the market in the early 2000s, pioneering electric vehicles (EVs) and autonomous driving technologies. By 2010, China had emerged as a major force in the automotive industry, becoming the world’s largest automotive market.

"Tesla has largely avoided this price war by focusing on differentiation, particularly through advanced autonomous driving systems like Autopilot and Full Self-Driving."

THE TESLA EFFECT AND CHINA’S DISRUPTION

Tesla has been pivotal in reshaping the sector. By introducing electric and autonomous vehicles, Tesla has driven innovation and sustainability in the industry. Meanwhile, Western automakers— accustomed to the success of combustion engines—found themselves unprepared for the rise of EVs and the surge of Chinese automakers.

China now dominates both the production and the market for electric and hybrid vehicles, driven by policies that promote electric mobility. A key moment came in 2001 when China prioritised automotive development, and a few years later, policymakers shifted their focus to electric mobility over combustion engines.

This approach allowed many startups to enter the market, creating a fiercely competitive environment. Tesla managed to break into the Chinese market as a unique case, establishing its own factory in Shanghai without a joint venture

partner, a strategy that helped it optimise costs and expand market reach.

For decades, foreign manufacturers dominated the Chinese automotive market. However, local brands have now surged ahead, with Chinese companies taking a 67 percent market share as of 2024. In contrast, foreign brands have seen their share fall, with several reporting losses and downsizing operations in China.

EV EXPANSION, COMPETITION, AND TRADE WARS

The rise of electric and hybrid vehicles is reshaping the automotive sector. China dominates the EV production and export markets, driven by favourable policies and growing demand. This rise has led to a fierce price war, with companies increasingly shifting their focus to foreign markets to reduce local price pressure.

Tesla has largely avoided this price war by focusing on differentiation, particularly through advanced autonomous driving systems like Autopilot and Full Self-Driving. However, hybrid vehicles remain popular in many markets due to the limited charging infrastructure available for fully electric vehicles.

The competition from China, supported by government R&D funding, has put intense pressure on Western automakers. Some are forming alliances with Chinese companies to strengthen their positions in European and Latin American markets. The global vehicle sales

Source:UNComtrade|Reuters,June132024|ByVineetSachdev

3: Source: FT|LSEG|Inagaki,K.(2024).2024isaforecast.

landscape in 2023 returned to pre-pandemic levels, though the market is now far more fragmented.

Hybrid Vehicles, Tariffs, and Global Competition

Hybrid vehicles continue to attract consumers due to concerns about EV depreciation and charging challenges. However, tariffs on Chinese EV imports have intensified competition. The U.S. recently announced plans to increase tariffs on Chinese EVs to 100 percent, while the European Union agreed on tariffs of up to 45 percent. This protectionist approach is not universally supported in Europe, as countries like Germany and Hungary are more cautious.

Traditional Western automakers face challenges, including legacy shareholder agreements and high labour costs that are mismatched with modern manufacturing demands. These factors have pressured share prices and profit margins.

CHINA’S RISE IN SEMICONDUCTORS AND THE FUTURE OF AUTOMOTIVES

Semiconductors are becoming critical in the automotive industry, enabling autonomous driving and energy-efficient vehicles. China has invested heavily in semiconductor manufacturing to support its automotive sector, challenging the U.S. for dominance in this field.

As well as increased tariffs, the U.S. and Europe are considering restrictions on Chinese-made components in vehicles for ‘national security’ reasons, adding further complexity to the automotive transition.

LOOKING FORWARD: CHALLENGES AND OPPORTUNITIES

While hybrid vehicles offer a short-term solution, stricter regulations on gasoline vehicles are expected to push the market towards EVs over time. Chinese automakers, led by BYD, are gaining ground globally, with ambitious expansion plans, while traditional automakers are adapting their strategies to stay competitive.

Volkswagen’s recent acquisition of a stake in Xpeng, as well as Stellantis’s investment in Leapmotor, reflect efforts by Western firms to counter declining sales in China. As automakers ramp up production of solid-state batteries to reduce costs and improve durability, they seek to gain an edge in an increasingly competitive market.

The trend of lifting trade barriers against Chinese competition is now common in many developed economies, though approaches differ. European automakers are more open to integrating with the Chinese market, while the U.S. favours a strategy of economic decoupling.

The automotive transition, alongside advancements in autonomous driving and ‘smartphone on wheels’ concepts, will likely demand further investments in semiconductors and clean energy.

As competition in EVs and semiconductors intensifies, the broader energy transition is anything but straightforward. Geopolitical and technological rivalry, combined with risks of economic fragmentation, suggests that the path to decarbonisation will involve challenges and costs. However, the journey represents a vital opportunity to advance technology and build a more sustainable future. i

ABOUT THE AUTHORS

Otaviano Canuto is a Senior Fellow at the Policy Center for the New South, a non-resident Senior Fellow at the Brookings Institution, and Director at the Center for Macroeconomics and Development in Washington. He has served as Vice President and Executive Director at the World Bank, Executive Director at the IMF, and Vice President at the Inter-American Development Bank.

Antonio Jorge Martins is a coordinator at Getúlio Vargas foundation (FGV) and a business consultant. He holds a degree in engineering from UFRJ, a postgraduate degree in finance from PUC-RJ and a master's degree in corporate sustainability from Senac-São Paulo. He has business experience as a CFO in publicly traded companies and as a Superintendent at BNDESpar.

Figure 2: Why EU tariffs matter to China EV makers?

Figure

Figure 4: Global spending on new chip fabs (estimates, in billions of dollars).

> Asian Development Bank - Freezing the Impact: Tackling Glacial Melt with Resilient Solutions

By Rabindra P Osti Principal Climate Change Specialist at ADB’s Climate Change and Sustainable Development Department

Glacial melting threatens regional water security, ecosystems, and economies. Countries must prioritise low-carbon, climate-resilient development through sustainable solutions such as nature-based systems, renewable energy, and diversified financing to manage risks and sustain development.

Glaciers are essential to the climate, ecological balance, cultural heritage, and socio-economic development of the Asia Pacific region. Glaciers not only provide a continuous water source for rivers, unaffected by seasonal changes and rainfall variability, but also reflect excess heat back into space, keeping regional temperatures cooler. Their cold runoff regulates downstream water temperatures and local weather patterns. Additionally, glaciers form natural reservoirs known as glacial lakes, which further help regulate river systems.

In many parts of Asia, glaciers and glacial lakes are more than natural wonders; they hold cultural and religious significance, symbolising power and dignity. Many people in this region depend on glacial meltwater for drinking water, agriculture, and hydropower, underscoring the interconnectedness of water, food, and energy.

For instance, Himalayan glaciers feed major rivers like the Indus, Ganges, and Brahmaputra, vital for over 750 million people. In Central Asia, melting glaciers play a crucial role in irrigation, providing nearly half of the annual runoff during the farming season. The region is home to some of the world's largest and most significant glacier systems, primarily in the Himalayan, Karakoram, and Tien Shan mountain ranges. Covering approximately 100,000 square kilometres, these glaciers are retreating at an alarming rate of 50 metres per year—over twice the rate recorded before 2000—demonstrating the profound impacts of climate change.

Currently, there are about 30,000 glacial lakes across these glaciers, with a total water surface area of roughly 1,500 square kilometres. Rapid glacial melting has led to a 20 percent increase in the number of glacial lakes and a 36 percent increase in their surface area since 2015. Projections suggest that by 2100, the area of glacial lakes in the region could double, with their water volume potentially increasing more than tenfold. The accelerating melt and expansion of these lakes heighten the risk of glacial lake outburst floods, posing a serious concern for the region.

Author: Rabindra P Osti

This rapid glacial melting threatens water supplies, ecosystems, and economies, especially in countries reliant on hydropower, river irrigation, and stable water resources. Economic impacts include increased flooding, reduced water availability, and risks to agriculture, energy production, and power supply chains, which could severely disrupt the water, food, and energy nexus.

The consequences are already evident: avalanches and glacial lake outburst floods have caused significant damage in Nepal and India, highlighting the dangers facing downstream communities and infrastructure. Furthermore, glacial melting accelerates river erosion and sediment accumulation, reshaping

landscapes and threatening human settlements. Excessive sediment has altered river courses in Bangladesh’s deltaic plains, while biodiversity loss from glacier decline is disrupting local ecosystems. Failure to address these risks could lead to regional conflicts, underscoring the urgent need for action.

COLLABORATIVE SOLUTIONS FOR RESILIENCE AND SUSTAINABILITY

To mitigate these risks, countries in the region should collaborate on data sharing, joint monitoring, and risk mapping to strengthen resilience against glacial melting. Long-term water scarcity can be alleviated by improving water storage, enhancing efficient irrigation practices, optimising renewable energy use,

and adopting soil and water conservation techniques. Developing climate-resilient crops and diverse agricultural value chains will further help manage the economic impacts of climate change.

Nations need to assess the risks of glacial melting to effectively implement integrated river basin management and relocate infrastructure from high-risk areas. Engaging local communities and the private sector in adaptation strategies, linking glacial melt to water diplomacy, and exploring economic diversification options— such as hydropower revenue, regional water trade, and materials trading—are essential to maintaining development and promoting regional stability.

FINANCING FOR RESILIENT INFRASTRUCTURE

Securing the necessary financing and investment requires countries to prioritise resilient infrastructure to manage risks from glacial melt and lake outbursts. This includes constructing lake drainage systems, building check dams to

stabilise sediment in upper watersheds, creating spillways to divert excess water, and deploying real-time early warning systems.

Investing in risk-informed, climate-resilient, multipurpose infrastructure is critical, with a focus on nature-based solutions and protecting downstream investments through supportive upstream infrastructure. Adapting irrigation and hydropower operations to account for changing water flows and redesigning water management systems are also important considerations. Raising awareness and building local capacity for adaptation, including diversifying livelihoods, are vital for sustainable development and resilience.

Many countries in the region have not yet recognised glacier regions and river basins as regional public goods, which is essential for securing funding to safeguard socio-economic progress. Innovative financing mechanisms such as eco-compensation, environmental trading, carbon markets, and blended finance should be explored. Additionally, risk retention and

transfer strategies, including disaster facilities and insurance, can enhance financial stability. The private sector’s role as a service provider, investor, and financing partner is equally crucial.

A CALL FOR REGIONAL COLLABORATION AND PROACTIVE INVESTMENT

The accelerating glacial melt in the Asia Pacific region is a stark reminder of the wide-reaching impacts of climate change, threatening not only local water supplies and ecosystems but also the stability of entire economies. The solution lies in regional collaboration, proactive investment in climate-resilient infrastructure, and innovative financial strategies. By working together to address these challenges on a larger scale, countries can build a sustainable future that balances economic growth with environmental protection. i

The views expressed are those of the author and do not necessarily reflect the views of the Asian DevelopmentBank,itsmanagement,itsBoardof Directors,oritsmembers.

Tibet, China: Aerial view of fossil glacier

Joschka Fischer:

Don’t Dismiss the BRICS

It would be a big mistake for the West to dismiss the recent BRICS (Brazil, Russia, India, China, and South Africa) summit in Kazan – Russia’s unofficial “Islamic” capital – as an anti-Western sideshow of little consequence. Western governments might like to believe that the gathering showed a lack of unity and substance, but the reality is more complicated.

China, Russia, Brazil, and India established the BRICs in 2006 (South Africa joined in 2010) as a counterbalance to the G7, the club of leading Western industrialised countries, and to the US-dominated global order more broadly. While the initiative was never taken seriously in the West, the BRICS have evolved into a multilateral platform not only for countries like China and Russia – which want to end Western dominance and, in Russia’s case, establish a new, explicitly anti-Western global order – but also for more neutral emerging powers.

Moreover, the grouping recently expanded to include not just Iran and Ethiopia but also Egypt and the United Arab Emirates, which have a strong interest in good relations with the United States and other Western governments (Saudi Arabia has accepted an invitation to join but has not yet formally done so). It therefore has made progress toward its goal of serving as a multilateral platform that is independent of the West and all economies reliant on the dollar or the euro.

The long-term significance of this progress should not be underestimated, especially considering that more emerging economies have expressed an interest in joining the group. Over the course of this century, the BRICS+ could well become the vehicle of “the rest,” set against the West. This would be a strikingly dialectical result of globalisation and the Western-promoted freetrade agenda of the past few decades.

Given the longer-run implications, the West should not confuse Russia’s desire to unravel the global order with the strategic goals of the rest of the group. Russian President Vladimir Putin and his inner circle may be living in their own nineteenth-century dream world, but the same cannot be said of China, India, Brazil, South

"The situation represents both a challenge and an opportunity for the West, provided that a second Donald Trump presidency does not wrench open the existing global fault lines."

Africa, or the new Arab members. They do not seek a break from the existing global order or the West, but rather increased global influence, recognition, and prestige. This is especially true for the new superpower, China.

The situation represents both a challenge and an opportunity for the West, provided that a second Donald Trump presidency does not wrench open the existing global fault lines. If the West remains politically and culturally united, it will continue to play a leading role in the twenty-first century despite its demographic challenges. But it must learn to share power.

Decolonisation began with the end of World War II, nearly 80 years ago. When the United Nations was founded in 1945, it had only 51 member states; today, following a long, tumultuous period in which many new nation-states emerged from the former European colonies across the Global South, there are 193. Yet despite the widespread achievement of formal sovereignty, there was never any real redistribution of power and wealth.

Starting in the late 1970s, China emerged from its self-imposed Maoist ideological prison and began its gradual integration into the Western-dominated world economy, a process that accelerated following its accession to the World Trade Organisation in 2001. With China’s opening and the end of the Cold War in the late 1980s, a new world order was born; and like it or

not, the rise of the BRICS is an expression of this historic change.

Emerging-market and developing economies’ desire to claim their share of global power and wealth is completely understandable and justified. The Western world should stop reacting defensively and ignorantly to these countries’ pursuit of their legitimate interests. But the emerging powers must recognise that with more power and economic influence comes more responsibility.

A new, rebalanced world order will still require firm rules based on universally accepted values. Otherwise, chaos, violence, and war will ensue. If a permanent member of the UN Security Council – namely, Russia – invades its neighbor (Ukraine) without cause, it calls into question the founding principles of the UN and the prevailing world order.

The resurgence of war in an age of nuclear weapons and artificial intelligence represents an international threat without precedent. Both the G7 and the BRICS+ face the same danger; everyone is in the same boat, with the same shared responsibilities. The fact that two large authoritarian powers with imperial ambitions lead the BRICS makes the need for global diplomacy all the more urgent. A future based on “might makes right” ultimately means a return to a wellknown past, one that the founding of the UN and its foundational conventions was supposed to put to rest for good.

What rules do the BRICS+ countries intend to follow? The world deserves an answer to this critical question. i

ABOUT THE AUTHOR

Joschka Fischer, Germany’s foreign minister and vice chancellor from 1998 to 2005, was a leader of the German Green Party for almost 20 years.

"While the initiative was never taken seriously in the West, the BRICS have evolved into a multilateral platform not only for countries like China and Russia – which want to end Western dominance and, in Russia’s case, establish a new, explicitly antiWestern global order – but also for more neutral emerging powers."

A BRIEF HISTORY OF TIME GETS A NEW CHAPTER

“I have wondered about time all my life.” - Professor Stephen Hawking

Professor Hawking did more than wonder about time. He spent most of his life probing into the beginnings of our universe, and discovered the very origins of time itself. And then, this theoretical physicist, whose legacy stands alongside those of Galileo, Newton and Einstein, made his discoveries accessible to everyone. The fact that he did all of this whilst battling debilitating motor neurone disease was all the more remarkable, showing Hawking’s courage, insatiable curiosity, and ambition. The Hawking limited series watches are a fitting tribute to this titan of science, and Bremont is proud to present them alongside Professor Hawking’s family.