Finance Derivative Awards is established with the aim of honoring excellence in performance and rewarding Companies across different domains of business & financial world.
Our award honors companies and their key players who have performed extraordinarily well and who strive for fineness & provide a platform for recognition.
Check our online publication at www.financederivative.com
FROM THE CEO
Dear Readers,
As we close out 2024, the financial services industry continues to navigate a world that is increasingly shaped by technological disruption, regulatory evolution, and shifting macroeconomic forces. In this edition, we take a closer look at the transformational trends that are defining our sector, with a focus on sustainability, digitalization, and innovation. As always, Finance Derivative Magazine strives to provide you with insights and analysis that not only reflect the current state of the industry but also help you prepare for the challenges and opportunities ahead.
This year, sustainability has been at the forefront of many conversations, and the financial services sector is no exception. Financial institutions are under increasing pressure to integrate Environmental, Social, and Governance (ESG) factors into their investment strategies and daily operations. In our feature on sustainable banking . We also examine the role that digital finance plays in driving sustainable outcomes, from green bonds to impact investing and beyond.
While 2024 has been a year marked by challenges—including geopolitical uncertainties, regulatory changes, and market volatility—it has also been a year of remarkable resilience and innovation within the financial sector. At Finance Derivative Magazine, we remain committed to delivering high-quality content that reflects the dynamism of the industry, providing you with the tools and knowledge to thrive in this ever-changing environment.
I would like to extend my heartfelt thanks to our readers, contributors, and industry partners who have made this year so successful. As we look toward 2025, we are excited to continue our mission of being the definitive source of insight, analysis, and thought leadership in the world of finance.
Thank you for your continued support and for being part of our community.
Warm regards,
Mehtab Chisti CEO
BANKING:
Customer Experience is the path to Achieving Top of Wallet Status
Running the bank vs changing the bank: A CIO’s perspective on evolving banking technology
The Great Banking Digitisation Race… How Do the US and UK Compare?
Why AI in banking security is both a shield and a shadow
TECHNOLOGY:
How technology is transforming sustainability
How AI is transforming the commodities trading landscape
Telecom Operators Paving the Way for Financial Inclusion: The Role of Digital Innovation
Streamlining tax filing with tech: A solution employed and high earners
Safety in numbers: Collaboration is key in against fraud
Wealth Management:
The Insurance Gap: Are You Truly Covered Modern Life?
Liquidity and Resilience in the Repo Market
How Asset Managers Can Harness Their Valuable Resource
How sovereign wealth funds can finance transition to a low-carbon economy
for self-
the fight
FINANCE:
Innovation interrupted: How companies can balance regulation with innovation in 2025
The blockers preventing digital transformation in the financial services sector
Unlocking the power of generative AI in Financial Services: Strategic steps for scalable success
Investing under the finfluence – John Somerville, Director of Financial Services at LIBF
How financial institutions can avoid failing on their digital transformation journey
3 reasons why the Middle East is emerging as a global financial powerhouse
BUSINESS:
ESG strategy: implementing the right technologies that drive both investor confidence and corporate reputations
AI in trade compliance: Boosting efficiency and cutting costs for global businesses
How AI can revolutionise procurement workflows
SPECIAL FEATURES:
Finance Derivative || Global Award Winners 2024
Innovation interrupted: How companies can balance regulation with innovation in 2025
Gunnar Gunnarson, Co-founder and CFO of PAYSTRAX
The journey towards real-time, frictionless payments is a constant battle for progress in the financial sector. The ideal scenario of fast, reliable, and safe payments has been a part of the horizon for merchants for years, with new technologies and regulations constantly presenting new challenges to overcome.
Consumers and merchants want seamless, frictionless payments - in return, businesses want reliability. Yet, as regulations increase, achieving both is becoming increasingly difficult.
With financial regulators like the Financial Conduct Authority (FCA) increasing its focus on consumer protection, the promise of stronger fraud regulations will be comforting for consumers but daunting for the payments industry.There’s a delicate balance between delivering seamless experiences and adapting to the rising demands of security and compliance, and that’s where innovation comes in.
New regulations, same issues
The new FCA regulations emphasise the banks’ role in identifying fraudulent transactions, allowing them additional time to analyse and halt suspicious activity before payment completion. Under the FCA’s proposals, the existing e-money safeguarding regime will be replaced with a new client assets (CASS) style regime that works within payment firms’ business models. But while giving banks the time to monitor transactions may have benefits, it may also undo years of hard work in creating instantaneous payment experiences.
This renewed emphasis on anti-fraud measures introduces friction, something which the industry has spent decades trying to eliminate. Payment delays mean consumers wait longer for their transactions to clear, affecting everything from online purchases to daily financial interactions. If the banks process payments instantly, they still bear the same risk, but if they delay payments, they nullify the instant functionality altogether. It’s a classic catch-22 situation that makes you wonder if this really is a step forward for the industry.
While it may seem trivial, the impact of increased friction cannot be downplayed. Google reports that most people will leave your site if it takes more than 3 seconds to load, and the same logic can be applied to payments. Delays due to heightened fraud screening could affect consumers’ trust in these systems and lead to frustration. No one wants to be inconvenienced, especially when they’ve grown used to instant access. And it’s important not to forget the added pressure on businesses to maintain customer satisfaction in the face of these delays.
What’s next?
There are solutions in sight, though they come with their own set of challenges. Real-time transaction monitoring and advanced fraud management tools are available, offering sophisticated mechanisms to detect and prevent fraud at the moment. However, these solutions often come with high costs. Given that regulations prevent payments from being charged extra fees, the question of who foots the bill remains unanswered.
Card schemes with embedded fraud prevention functionalities could be an option, but these would require an overhaul in how payments are typically processed. Investing in technologies and solutions such as payment tokenization and Click-to-Pay can further aid the pursuit of frictionless payments, as these are becoming popular methods for retailers.
While regulations lean toward safeguarding consumers, there’s an argument to be made for a balanced approach that doesn’t sacrifice the flow of innovation. The FCA would benefit from consulting industry leaders on making these regulations as flexible and effective as possible. After all, innovation in fraud prevention technology is ongoing, and regulations should aim to harmonise with these advancements rather than stifle them.
The future of friction and fraud
The friction-versus-fraud debate shows that everything comes with a trade-off. In this fight against fraud, there really is no free lunch. For fraud to be mitigated effectively, something has to give.
As 2025 looms, it’s clear that regulators and payments providers will need to find common ground. It’s not just about meeting regulations, it’s about creating a landscape that fosters trust, innovation, and protection. The answer may lie in embracing more adaptive, flexible approaches to regulation that allow for industry input and technological advancements.
Fraud protection shouldn’t mean abandoning the benefits of a fast, frictionless payment experience. It should mean finding a middle ground that serves both protection and progress.
The blockers preventing DIGITAL TRANSFORMATION in the financial services sector
Stephen Foreshew-Cain, CEO of software consultancy, Scott Logic
The financial services industry, and more specifically the retail banking market, has been undergoing a period of tectonic transformation over recent years. Established and enduring institutions are being forced to evolve to keep pace with changing customer demands and must continue to adapt in order to survive in today’s more technologically grounded market.
Competition is growing on different fronts from organisations – such as tech giants and challenger banks (like Monzo, Starling and Atom Bank) – with technology estates that are fundamentally different from those of the older banks. The modern, modular architectures of the competitors enable them to address rapidly evolving customer demands, comply with new regulations, and harness new technologies like AI safely. Meanwhile, the previous generation(s) of IT estates of the long-established firms weigh them down and impede progress.
Many of the older banking organisations are built on architectural platforms initially created as long as three (or even four) decades ago. These systems have obviously been critical in supporting effective business operations and have contributed to remarkable growth over their lifespans. However, the legacy technologies and outmoded paradigms are now constraining the ability of banks to scale to meet growth aims, while also putting them at greater risk of outages and failing to comply with regulations.
So, what can be done to address these issues and enable established businesses to access the benefits of emerging technologies, both now and in the future?
Key to this is targeting investment to strike the right balance between apparently conflicting concerns: ‘Business as Usual’ (BAU) and ‘New Capabilities’. BAU focuses on incremental
Stephen Foreshew-Cain
modernisation of legacy systems to ‘keep the lights on’ and maintain regulatory compliance. New Capabilities focuses on delivering new products, services, content and features to stay relevant in a fast-paced market. Invest more in BAU and you will fail to keep pace with customer or regulatory demands, which could make new capabilities even harder to realise. Invest more in New Capabilities, and you will deliver fragile experiences, effectively building a house on crumbling foundations (potentially impacting today’s business operations and performance). By striking the right balance, the two apparently conflicting concerns can be complementary and symbiotic.
BAU investment can modernise prioritised parts of core systems, decompose monolithic codebases into addressable units, clean up data, and expose interfaces for new capabilities such as APIs and event-driven architecture. New Capabilities investment can accelerate the BAU path – for example, by harnessing AI to automate processes, augment human decision-making, and assist with migrating legacy code bases. A good example of this relates to legacy mainframes. The older mainframes get, the more likely it is that fewer and fewer people will understand the business logic that was baked into them decades ago. AI and machine learning can help identify patterns and extract business logic rapidly and with a high level of accuracy, helping engineers to map out the migration path from the mainframes into the cloud.
Striking this balance between BAU and New Capabilities requires strong leadership. Technology and business leaders in financial institutions need to drive forward multi-faceted programmes harmoniously – programmes that enable them to realise the value of technology assets of the banking past while they steer towards the banking future. In this endeavour, executive-level programme governance must be an enabler, rather than a constraint; traditional approaches to risk management could have existential consequences.
Strong leadership also involves knowing when to ask for help. Shaping the right modernisation strategy can be a challenge, as can the resourcing of labour-intensive modernisation projects while you’re busy keeping the lights on. Specialist consultancies can provide bespoke support to enhance and accelerate your modernisation initiatives, bringing to bear the financial services experience of expert consultants. The clock is ticking, and it’s the long-standing institutions acting now to chart the right course on their modernisation journey that will survive to thrive in the banking ecosystem of the 2030s.
Customer Experience is the path to Achieving Top of Wallet Status
Fatemeh Nikayin, Co-founder and Chief Growth Officer at Rivero
Since the introduction of open banking in 2018 customers were opened to a host of new choices and have benefitted from not having to choose simply between cash or card, with digital wallets becoming contemporary practice. This has made payments significantly faster and more efficient, which has encouraged customers to carry more payment options with them.
As the payment process turns digital, so too should the payment dispute processes in an effort to provide a more efficient and stronger customer experience (CX). Good CX helps build a loyal user base and loyalty is the key attribute that leads to a payment card becoming the ‘top of wallet’ for a consumer.
Completing a dispute with care, efficiency, accuracy, and speed helps customers make critical payment decisions and have a hassle-free experience. These elements all make up the CX and by building upon this a payment provider can achieve that desired for top of wallet status.
GOOD CX SHOULD BE PAINLESS
Digital payments are becoming the default for customers, with digital wallets and express payment options like Apple Pay or Google Pay being the preferred method for the wider majority of customers. However, as these increase, so does the probability of fraud, making dispute claims all the more critical.
Customers want to avoid stressful disputes and processes that cause them disruption. Therefore, an elevated dispute management process and expert customer service, when needed, is of paramount importance. With the rise of fraud, the cost and complexity of dispute claims has increased leading to a longer more arduous process for both the representative and customer. Further friction is felt when additional time and data is needed to analyse a claims’ validity. The European Central Bank (ECB) and the European Banking Authority (EBA) recently shared a report that detailed the total cost of fraud across payments was €4.3 billion in 2022 and €2.0 billion during H1 2023.
Modern technology, however, may offer us a solution. Automated processes and self-service offers customers a highly desired element, visibility across the claim’s progress. With increased visibility over the process, customers are able to temper their expectations and reduce the amount of communication required with representatives. This saves money and redistributes key resources for the issuer, as well as fostering loyalty, and customer insight.
Critical moments like fraud disputes have lasting impacts for the customer. A poor CX might shatter the illusion of other perks on offer, but a good CX can do wonders for word-of-mouth marketing and customer satisfaction ratings.
AI: NOT ALWAYS RIGHT
In order to develop a clear dispute management process, it has to be easy for all parties. Too often, overly bureaucratic systems cause unneeded stress for customers and representatives alike and increase form/ information overlap - a further waste of time and resources. Chatbots might be the guiding light to these problems, paving the way for a good CX by providing a self-servicing experience.
A key consideration must be made however, when employing the use of AI (in particular Large Language Models (LLMs). While chatbots built onLLMs can be a way to provide a digital experience, there are risks involved. LLMs outputs can be unpredictable and not reproducible, which can be an issue in areas requiring precise rule adherence. LLMs are great for domains with large datasets where precision and reproducibility aren't the main concerns. But fraud and disputes are different. They might be complex, but they're clearly defined by rules, so a rule-based machine intelligence approach works better than an LLM. Problems with LLMs chatbots hallucinating have been seen in other regulated industries with some major players like Amazon, and AirCanada
In regulated industries like payments, financial institutions should consider the use of ‘Rule-Based machine intelligence’, a chatbot that is built upon the rules of a payment network like Visa and Mastercard that can produce predictable and repeatable outcomes. RuleBased chatbots help improve the customer experience while ensuring that the payment networks rules are used to address customers’ problems. This way, an organisation’s automated assistant can remain reliable, compliant and avoid any premature dispute rulings and uniformity.
GOOD CX IS A BASIC NEED
Top of wallet status has long been of paramount importance to issuers, and even as digital payments dominate, this prestige is unlikely to change.
Increased competition among card issuers has only added a layer of importance to differentiation in the market - without it achieving top of wallet status becomes more difficult. Therefore, developing clear and simplistic methods to manage disputes and other customer service requirements becomes increasingly important.
An elevated customer service experience during a moment of distress fulfils a basic need for customers, with only esteem benefits like reward points and redemptions being of value to customers who feel comfortable and secure with their issuer if they were to encounter a problem. When basic needs aren’t fulfilled, stress is present in the process - something representatives and customers alike seek to avoid. Only once basic needs have been fulfilled can top of wallet status be achieved.
THE INSURANCE GAP:
Are You Truly Covered for Modern Life?
Life is a journey filled with unexpected twists and turns. While we celebrate the joyous moments, life tends to throw up unpleasant surprises.
Fraser Stewart, Lyfeguard
Illness, injury, accidents, or even a simple mishap can disrupt our lives and create a significant financial burden. That's where insurance steps in – it acts as a financial safety net, a crucial element in planning for the future, just like managing your income, savings, and investments. Yet, a surprising number of people in the UK are overlooking this essential piece of the puzzle, leaving themselves vulnerable to financial hardship.
The Protection Gap
One of the primary reasons for this underinsurance lies in a widespread lack of understanding about how insurance works. A surprising number of people are unfamiliar with key insurance products.
For instance, 40% of Brits admit to not fully understanding income protection. This valuable insurance can replace a portion of your
salary if you're unable to work due to illness or injury, ensuring you can meet your financial obligations while you recover. Imagine the stress of mounting bills and potential debt if your income suddenly stopped – income protection provides a crucial safety net.
Similarly, a diagnosis of a serious illness like cancer, heart attack, or stroke can be devastating, not just physically and emotionally, but financially as well. Critical illness cover provides a lump sum payment to help navigate the unexpected costs of treatment, rehabilitation, and lifestyle adjustments. However, confusion surrounds this type of insurance, leaving many people without this crucial support.
While most people recognise the importance of life insurance, a surprising number haven't taken the necessary steps to secure a policy. Life insurance provides a financial safety net for your loved ones in the event of your death, ensuring they can cover expenses like mortgage payments, debts, and everyday living costs. Yet, only 35% of Brits have life insurance in place, leaving their families potentially vulnerable.
Finally, home contents insurance is often overlooked. Our homes are filled with possessions that hold both financial and sentimental value, and home contents insurance protects these belongings against theft, fire, and other unforeseen events. However, 9.3 million are gambling with their possessions, lacking this basic protection. The financial and emotional cost of replacing everything after a fire or burglary could be immense.
Lost in the Fine Print
Even when people do have insurance, they often don't fully understand the details of their policies. Nearly a fifth admit to not thoroughly reading the fine print, which can lead to unpleasant surprises when it comes to making a claim. They might find they're not covered for situations they thought were included, leading to financial hardship and disappointment.
Another common misconception is about the cost of insurance. Many people overestimate how much insurance premiums are, putting off getting the cover they need due to perceived affordability issues. The reality is that insurance is often more affordable than people think, and the potential cost of not having it can be far greater in the long run.
Bridging the Gap
Addressing this insurance protection gap requires a multi-pronged approach, involving individuals, the insurance industry, and the government.
Individuals are responsible for taking ownership of their financial wellbeing. This includes actively seeking information about insurance, understanding different types of coverage, and making informed decisions about the protection they need. It also means taking the time to read and understand policy documents and asking questions when clarity is needed.
The insurance industry bears the responsibility of making insurance accessible and understandable. This includes simplifying policy wording, avoiding jargon, and providing clear explanations of coverage and exclusions. Insurers also need to be proactive in educating consumers about insurance products and providing transparent information about pricing and claims processes.
The government has a role to play in creating an environment that promotes financial literacy and consumer protection. This could involve incorporating financial education into school curriculums, launching public awareness campaigns about insurance, and implementing regulations to ensure fair practices and transparency within the insurance industry.
By tackling these issues head-on, we can empower people to take control of their financial well-being and ensure they have the protection they need to face the future with confidence.
ESG strategy: the technologies that drive both investor confidence and corporate reputations
Asset-intensive companies are facing increasing pressure to address environmental, social, and governance (ESG) challenges. As the world becomes more conscious of the impact of business operations on the planet, technology can play an important role for industrial businesses in the healthcare, manufacturing and logistics sectors.
Investors are increasingly demanding evidence of strategies to lower carbon
emissions for the firms in which they invest, and there’s an expectation that steps are being taken to improve operational sustainability credentials. So, there’s an escalating need for data and reporting tools.
Technology such as enterprise asset management (EAM) software can advance positive societal change and help to navigate the seas of sustainability compliance. They do this by managing the maintenance of physical assets of
an organization throughout each asset's lifecycle. EAM is largely used to plan, optimise, execute, and track required maintenance activities with the associated priorities, skills, materials, tools, and information.
EAM and the environment
In practice, a good EAM solution can benefit an organisation’s environmental strategy in a number of ways. Timely maintenance, and maintenance aligned to correct procedures can help to prevent
environmental incidents. Keeping equipment and systems well-maintained also assures better energy efficiency, while a consistent production process without unplanned downtime assures lower carbon emissions.
Subtle changes soon add up to meaningful benefits. EAM can optimise warehouse management methods which in turn reduces material waste. On the frontline of maintenance, the adoption of mobile apps and wearables result in less use of paper. And running your EAM Cloud-based on Microsoft Azure makes it between 72 and 98 percent more carbon-efficient than an ‘on premise’ solution.
Social matters
The scarcity of qualified technicians is forcing many industrial businesses to do more, with less. Technologies such as smart automation can have a huge impact here – harnessing automation technologies such as artificial intelligence (AI), business process management (BPM) and robotic process automation (RPA) to streamline and scale decision-making across the business.
An EAM approach can transform communication between operations, maintenance, and safety teams. Breaking down operational and data silos with a single centralised technology platform facilitates cross-team collaboration and a safer, more productive work environment.
Many of our clients use EAM to manage high-quality processes in the fields of incident management, work permits, task risk assessments, and ‘lockout-tagout’ as they work towards becoming a zero-incident organization. It’s another area rich in innovation. EAM-integrated technologies like predictive maintenance, drone inspections, and augmented reality are fast becoming the norm.
ConMet, a global manufacturer of systems and components for commercial vehicles is a good example. “We use the EAM system to record measurements in support of our predictive maintenance methodologies,” said Patrick Rowson, Engineering Manager for EAM Manufacturing Systems, ConMet. “In just one application – CNC lathe spindle vibration measurement – we estimate that we can save about $1.23 million each year in one plant by using predictive technology. EAM supports these activities.”
Clear governance
Access to accurate information at the right moment is key to effective decision-making. By providing real-time data
and insights, EAM empowers companies to make informed decisions that promote sustainability. It enables organisations to prioritise renewable energy sources, reduce greenhouse gas emissions, and implement eco-friendly practices throughout their operations.
Reliable and reproducible information is also critical to demonstrating compliance and conducting successful audits. EAM allows companies to monitor and track their asset performance, ensuring that they are operating efficiently and sustainably. Operationally, it can provide clear, predefined steps in work orders, purchasing, and safety processes with precise steps of approval - all secured by the system.
EAM provides a comprehensive solution that enables companies to effectively manage their assets while aligning with ESG principles. By leveraging this technology, companies can optimise their operations, reduce waste and energy consumption, and minimise their environmental footprint.
Asset-intensive companies can no longer ignore its importance.
By Johan Made, CEO at IFS
How technology is transforming SUSTAINABILITY
By Carl Lens
As the impact of climate change intensifies, the need for sustainable practices has never been more critical. From rising temperatures and shifting weather patterns to increasing biodiversity loss, the urgency for action is palpable. Communities around the globe are
recognising that the way forward requires a fundamental shift in how we approach our relationship with the environment. To combat these pressing challenges, technology is emerging as a vital ally in the quest for sustainability.
The role of data in driving sustainable solutions
Data collection and analysis have become essential tools in the fight against climate change, revolutionising the way we monitor environmental changes. With advancements in satellite imagery and IoT sensors, organisations can now gather vast amounts of information that inform effective resource management and policy-making. For instance, at Justdiggit we leverage machine learning and satellite imagery to monitor landscape degradation and the potential for applying restoration techniques across sub-Saharan Africa. Our landscape restoration projects are tracked remotely, measuring vital metrics such as water retention and carbon sequestration. This data-driven approach demonstrates the tangible impact of restoration work but also supports evidence-based decisions that are essential for achieving sustainability goals at scale.
Empowering local communities
Digital tools are playing an increasingly critical role in empowering local communities to adopt more sustainable practices across the globe, providing farmers with educational resources that can be accessed even in remote locations. Tools like Justdiggit’s Kijani app provide personalised advice for regreening efforts tailored to local land conditions in Tanzania, showcasing how mobile technology can deliver actionable insights right to farmers’ fingertips, no matter where they are in the country. By equipping farmers with locally relevant information through mobile apps, technology is bridging knowledge gaps, helping them make informed decisions about soil health, water management, and crop rotation.
Beyond offering knowledge, these tools enable communities to become active participants in
sustainability efforts while directly impacting their own livelihoods for instance because of better crop yields. Digital platforms can support farmers in recording and tracking their progress, which not only boosts motivation but also fosters a sense of shared responsibility for environmental preservation and protection. Through accessible information and the ability to monitor impact, local communities are increasingly able to tackle climate challenges on their own terms, making lasting changes that benefit both their ecosystems and their livelihoods.
Technology is revolutionising agriculture
Technology is revolutionising agriculture, equipping farmers with innovative tools to grow more sustainably and efficiently. Through precision farming techniques powered by AI, IoT sensors, and satellite imagery, farmers can now monitor crop health in real-time, optimise water usage, and predict yield outcomes with remarkable accuracy. These technologies enable precise, data-driven decisions that improve both productivity and resource conservation.
Mobile internet coverage and growing smartphone ownership unlock these precision farming possibilities to an enormous group of smallholder farmers across the globe. It can unlock the use of data about weather, soil, crops and techniques to the people that can directly utilise it. Because of the changing climate, landscapes often need different interventions compared to a couple of decades ago. An example is the ancient water harvesting technique of digging semi-circular bunds (or Earth Smiles) that was widely used in West Africa. Justdiggit popularised the method in East Africa and has brought under restoration hundreds of thousands of hectares of land in Kenya and Tanzania. Digital tools have enormous potential of spreading proven interventions such as bunds to the places where they can have impact.
Using technology to work towards a common goal
Collaboration is essential to maximising the impact of technology-driven sustainability initiatives. Partnerships between NGOs, tech companies, and local communities allow for the pooling of resources, knowledge, and expertise, making sustainable solutions more effective and scalable. By working together, these stakeholders can address local
environmental challenges with technology solutions that can be tailored to specific ecosystems and cultural contexts.
By integrating technological innovations into reforestation and land restoration projects, these partnerships help deliver more targeted, data-backed approaches that empower communities on the ground to take sustainable action. With NGOs providing grassroots knowledge, tech companies offering advanced tools, and local communities guiding initiatives based on their direct experience, these alliances create a robust framework for lasting, positive change.
Conclusion
A large part of the solution for the climate crisis is ‘nature-based’, but the role of technology in advancing nature based solutions has never been more critical. Technology offers powerful tools to address sustainability challenges at scale, from harnessing data to empowering communities, to refining agricultural practices and fostering collaborative solutions. However, for these innovations to reach their full potential, ongoing support from governments, NGOs, and the private sector is essential. By investing in and backing tech-driven sustainability initiatives, we can create resilient systems that not only mitigate environmental damage but also promote thriving ecosystems and communities.
The journey toward a more sustainable future requires commitment to both innovation and collaboration, ensuring that emerging technologies continue to evolve in ways that serve both people and the planet. This collective effort holds the promise of a world where sustainable practices are not only achievable but are also embedded into everyday life, fostering a greener, more equitable future for all.
Carl Lens, Head of Digital Regreening, Justdiggit.
Running the bank vs changing the bank: A CIO’s perspective on evolving banking technology
The banking sector is at a crucial junction. With one eye on the future and another on the present, decision-makers are tasked with balancing the day-to-day operational efficiency required to ‘run the bank’ with the pursuit of innovation required to ‘change the bank’.
To make matters more complex, the ongoing need to align IT operations with stringent compliance standards, meet emerging business goals, prioritise cybersecurity, and keep pace with a rapidly evolving tech landscape means that this balancing act is now a strategic imperative.
According to the findings of the new Riverbed Global AI & Digital Experience Survey, nearly 94% of business and IT decision makers in the financial services sector agree that AI will help them deliver
a better digital experience for their end users. Compared to other sectors, Financial Services is also one of the most prepared for AI adoption. Currently, 46% of leaders surveyed in the Financial Services sector say their organisation is fully prepared to implement their AI strategy now (against a 37% average). However, a lack of innovation for the majority could leave banks exposed to competition and inefficiency over time.
The directive for financial organisations is clear: balance the imperative to optimise existing systems while also
future-proofing the organisation against market disruption and changing customer expectations. But how they achieve this is a different matter altogether.
Technology, Compliance, and Risk
With the primary reason for using AI in the Finance Sector almost equal between driving operational efficiencies (51%) versus driving growth (49%), any future-proof strategy hinges on sourcing and adopting the digital tools that strengthen adaptability and oversight. So much so, that an IT infrastructure that’s misaligned with the demands of business could significantly compromise organisational stability.
For example, financial services operate under some of the most rigorous regulatory standards of any industry. Without astute planning and ongoing monitoring, the pressure of managing large volumes
of sensitive data could clash with these compliance requirements.
For McKinsey, though, “banks that build common ground between their compliance functions and business leaders who shape strategy can open paths to better customer experience, greater productivity, and resilient growth”. Achieving this alignment – and therefore a competitive advantage – relies on integrating agile and scalable technologies that not only support businesses to meet current standards, but also respond to them as they evolve.
For this purpose, investing in new technology is doubly-beneficial – keeping current systems secure, private and responsive, while simultaneously creating an adaptable backbone for digital transformation. The trick is to deploy tech solutions that align with the broader business goals, whether that is to drive
cost optimisation, customer experience or speed to market today, at the same time as fostering space for the AI-driven evolution of tomorrow.
The Next Wave of Technology
It’s logical, then, that over 96% of respondents believe AI provides their business a competitive advantage – which is exactly why the finance sector’s future depends on its ability to seamlessly integrate technologies like AIOps and unified observability.
As these innovations continue to roll out at what Forbes describes as an “unprecedented pace”, the finance industry finds itself “undergoing a transformation driven by the rapid evolution of technology”. To mitigate risk during this technological whirlwind, banks should consider gradually phasing in new digital initiatives. That way, a solution’s efficacy can be tested without disrupting core services.
Either way, the velocity of digital transformation across the industry blurs the boundaries between the traditional ‘running’ of a bank and the innovative ‘changing’ of banking operations. That’s why a more proactive approach is required in order to pivot when market conditions or regulatory demands shift.
Banks can unlock this agility by weaving AI, machine learning, and data analytics into their digital estates. Together, these solutions provide the data-driven insights needed to empower faster and more precise decision-making – helping financial institutions access new strategic and commercial opportunities, while still assessing and out manoeuvring any external risks such as fraudulent transactions or compliance breaches.
The ability of these technologies to identify and remediate threats to digital security and health can minimise risk, while still ensuring systems are more productive, predictive and personalized at the user level. And the benefits of this – innovation, operational stability and long-term growth – all flow from that
initial decision to shift towards embracing evolving technology.
The Future of Finance
The fact that all leaders in the Financial Services industry (99%) consider AI to be either a key strategic priority or at least moderately important across their organisation proves that the transformative potential of technology is difficult to ignore.
So, while ‘running the bank’ keeps the lights on right now, ‘changing the bank’ illuminates a brighter future for years to come. To thrive, financial organisations should embrace agile technology that supports them to pursue their ambitious transformational targets without compromising performance. By breaking down strategic boundaries and building AI-capable infrastructures, banking institutions can position themselves to survive and – more importantly – lead the way into a digital-first future.
[Sources for in-print publication]
Global AI & Digital Experience Survey, Riverbed, 2024 https://www.riverbed. com/global-ai-survey/
The Case for Compliance as a Competitive Advantage for Banks, McKinsey, 2023
The Benefits And Risks of AI in Financial Services, Forbes, 2023
https://www.forbes.com/councils/ forbesfinancecouncil/2023/12/26/ the-benefits-and-risks-of-ai-in-financialservices/ Fernando Castanheira, CIO, Riverbed Technology.
The Great Banking Digitisation Race.. How Do the US and UK Compare?
Alex Reddish, Head of Market Expansion & GTM Strategy at Tribe Payments
The journey that banking digitisation has taken in both the US and UK has been less of a sprint and more of a marathon, with some twists, turns and potholes to navigate along the way. As the years have rolled on, technology innovations have gradually influenced how people interact with money. We’ve seen how embedding convenience, security and flexibility into consumers’ payment journeys has reshaped the entire payment landscape.
As the famous saying goes, the US and UK are two countries divided by a common language. Both markets have lots of characteristics in common – mature, well-regulated financial and payment systems, populations that have a high engagement level with financial services, and excellent telecom and internet penetration levels. But the way
each market has embraced widespread digital banking shifts over the past few years tells two very contrasting stories.
The UK and mainland Europe can boast near-total saturation of digital banking services, thanks to commonalities including chip and PIN infrastructure, and in a post-Brexit world, a mirroring of regulations enabling laws to be transposed easily. On the other hand, the US has charted a slightly different path. Chip and PIN was implemented in the US a good 10 years after the rest of the world had done so, and to some extent enabled the US to skip certain stages like contactless payments and move straight to digital wallets.
It’s fair to say significant progress has been made on both sides of the pond, however major challenges remain. When
it comes to modernising outdated banking systems and navigating complex regulatory frameworks, the US and UK have drifted in different directions, at the expense of interoperability and cross-border banking efficiencies.
So, we need to ask: how can these regions continue to remove these roadblocks and give customers the feature-rich, hyper-personalised banking experiences they expect?
Digital banking: a tale of two markets
In the UK and across mainland Europe, digital banking is now second nature for many. With extensive and long-established digital channels in place for more than 20 years now, consumers in these regions expect to manage their finances online with ease, whether that’s checking
Alex Reddish
balances, transferring funds, or applying for loans. This shift reflects how convenience and access have become the cornerstones of modern banking.
But while the UK and Europe may be close to ‘peak’ digital banking, the pace of innovation is not slowing down. As regulatory frameworks emerge to provide guardrails to new services (like AI) and consumers expect faster, more immersive payment experiences, banks have to ensure that they can continue to adapt and meet shifting consumer demand with dynamic, future-proof services that will keep customers coming back for more.
Over in the US – which unsurprisingly happens to be the world’s largest financial services market – the pace of change has lagged, but the journey is just as interesting and with some quirks not found in other markets. A great example is contactless – thanks to Europe’s chip and PIN infrastructure, the rollout of contactless was relatively easy from a technical standpoint, whereas the US skipped this step and embraced digital wallets instead. Tech providers leapt into action
much sooner than their UK and European counterparts, forming partnerships with banks and merchants to create wallet-based services that could provide a host of appealing services.
For many US consumers, smartphones are now their all-in-one portal for financial management, bill splitting with friends, rich reward schemes and ecommerce, with the added security of tokenisation and biometric authentication. But as impressive as this adoption has been, there are considerable challenges ahead.
The battle against legacy systems
One commonality affecting both the US and UK to their disadvantage is legacy banking tech. Updating outdated banking systems is arguably the biggest roadblock in the way of greater banking efficiencies for both regions. For example, the 2024 launch of Santander’s digital bank, Openbank, in the US was met with both excitement and caution. A huge success in Santander’s native Spain, Openbank may not achieve the same degree of success in the US, due to systems like the Automated Clearing House (ACH), which aren’t built for today’s digital-first world.
While traditional banks seek to overhaul their legacy systems and embrace the latest technologies to emulate the success of neobanks, neobanks are shifting their strategies too. A growing number of neobanks are going full circle and are now expanding into traditional banking products like mortgages and personal loans, offering customers a fuller range of services and building deeper, more meaningful relationships.
Overcoming the obstacles
Both markets face similar and familiar challenges as they strive to realise the full potential of digital banking. Neobanks have to operate under regulatory frameworks designed for conventional banks, which can restrict their pace of innovation. They also face high customer
acquisition costs and relatively low revenue per customer.
Meanwhile in the US, long-standing loyalty to credit products, driven by rewards and incentives, still plays a significant role in deepening customer trust. You only have to look at how brands with big pockets like American Express and Chase dominate consumer spending to see that in action. In a market where trust is largely the preserve of traditional banking giants, it’s clear to see that digital banking providers will have to work harder to tempt them away.
This is where the UK has a slight advantage, with banks and consumers having already embraced digital banking more widely, but the journey is not over yet. Banks in both regions can’t afford to be complacent when it comes to building consumer trust, developing personalised experiences, and offering tailored solutions that grab the interest of customers.
The future of banking
Like I said, digital banking transformation is a marathon, not a sprint. As digital banking evolves, there is massive potential to enhance customer experiences even further. The key to doing this successfully and sustainably is by embracing cutting-edge technology and harnessing the full power of data. Banks can then create intuitive, personalised services that make everything from onboarding to credit applications faster, more accurate and more compelling for customers.
As for what the future of banking will look like, it will be shaped by how well institutions in both the US and UK approach and resolve challenges through updating infrastructures, navigating regulatory complexities, and meeting the ever-changing needs and demands of consumers. If banks on both sides of the pond succeed, the rewards will be immense, and everyone will benefit from richer, more personalised banking experiences.
Liquidity and Resilience in the Repo Market
Ed Tyndale-Biscoe, ION Secured Funding
Navigating repo markets amid global shocks: The critical role of liquidity and collateral diversity
The repo market, which plays a vital role in global finance by facilitating shortterm, securities-backed borrowing, generally runs smoothly. However, external shocks such as geopolitical tensions or unexpected shifts in monetary policy can quickly disrupt the balance between collateral and cash, threatening stability. As interest rate volatility and stricter regulations create uncertainty, firms focus increasingly on accessing deeper liquidity pools and diversifying their collateral base. At the same time, options such as peer-to-peer (P2P) lending and the growing interplay between European and Asian collateral markets provide new avenues to manage risk.
External shocks and collateral-cash mismatches
Unexpected geopolitical events or central bank monetary policy may send shockwaves that ripple through financial markets, often leading to fluctuations in asset values. This can cause collateral posted in repo transactions to fall short of the amount of cash borrowed against it. The mismatch could quickly escalate and put participants at unanticipated risk. For example, during the UK gilts crisis driven by the government’s controversial mini-budget in 2022, many market participants were caught off guard; some were forced to sell assets at a loss to cover margin calls.
Non-bank financial institutions (NBFIs), like pension funds, are vulnerable when these mismatches arise. Unlike large banks, NBFIs often lack the capital buffers to withstand sudden liquidity crunches. In extreme cases, these smaller players may be forced to liquidate assets
quickly, leading to further market destabilization as selling pressures depress prices even more.
The value of deep liquidity pools and collateral diversity amid regulatory pressures
Against this backdrop, and with interest rates changing and financial markets facing increasing scrutiny, access to deep liquidity pools and a diverse range of collateral is essential. Regulations introduced in the wake of the 2008 financial crisis—such as Basel III—have imposed stricter capital and liquidity requirements on banks, forcing them to rethink their activities in the repo market. Mandatory central clearing, shorter settlement cycles, and the need for high-quality liquid assets (HQLAs) put pressure on market participants, especially buy-side firms like hedge funds and pension funds.
These firms, in particular, need to reassess their liquidity needs and collateral
options to stay resilient in the face of volatility. A diverse collateral pool spanning various regions and asset classes will help firms manage sudden shocks and market disruptions. Tapping into a broader collateral base allows easier access to cash without resorting to disruptive asset sales, reducing the risk of a liquidity crunch and wider-reaching adverse effects.
One of the most notable developments in the repo market is the rise of peer-topeer (P2P) lending, opening new doors for accessing liquidity. P2P lending allows non-traditional lenders, such as sovereign wealth funds or insurance companies, to lend directly to other participants. This capability is especially useful in Europe, where the repo market is more fragmented – with each country in the eurozone having its own government fiscal policies, accessing certain types of collateral can be difficult. The ability to lend collateral directly through
P2P lending can also be a critical tool fro smaller firms and NBFIs to manage risk.
The global Picture
On a global scale, collateral flows between Europe and the Asia-Pacific (APAC) region are growing, with Japanese government bonds (JGBs) becoming a key component of European repo. Low borrowing costs and a weak yen have made JGBs attractive to foreign investors, who now hold more of these bonds than Japanese banks. Since 2021, the use of JGBs as collateral on Euroclear has doubled, and foreign demand has surged following the Bank of Japan’s recent policies to suppress bond yields.
While some Japanese officials are wary of foreign investors’ influence over their bond market, others see this as a positive development. By diversifying the base of bondholders, the market becomes more liquid, which can help stabilize it in times of stress. Japanese investors are also
seeking higher returns abroad, becoming some of the largest buyers of US Treasuries and eurozone bonds.
Looking to the future
The repo market is facing global challenges, from interest rate volatility and central bank liquidity policy tapering off, to heightened regulatory scrutiny, and external shocks in the global economy. Firms must secure deeper liquidity pools and diversify their collateral sources to remain competitive and successfully navigate this changing environment. As P2P lending and global collateral flows become more important, these tools offer new ways to mitigate the risks of collateral-cash mismatches. Market participants can better protect themselves and the broader financial system from future disruptions by adopting and prioritizing strategies that emphasize diversification and liquidity.
Alex Hammond, Partner, Airwalk Reply
Unlocking the power of generative AI in Financial Services: Strategic steps for scalable success
The financial services industry stands at a critical juncture where artificial intelligence (AI) and, more specifically, generative AI, can reshape core operations, customer engagement, and innovation capacity. However, the journey from concept to practical, scalable AI implementation is often challenging. As with any advanced technology, AI’s potential is expansive but requires strategic, incremental adoption to prevent common pitfalls and ensure sustainable success.
Financial organisations looking to harness generative AI should take a pragmatic approach, focusing on strategic planning, risk management, and the unique challenges this technology poses. From starting small to scaling effectively, we’ll outline how institutions can overcome common barriers and thrive in a competitive landscape.
The promise and pitfalls of AI in finance
Generative AI holds immense promise for financial services, from automating customer interactions and enhancing fraud detection to personalising wealth management. However, statistics show that 80% of AI projects fail to reach production, often due to barriers not related to the technology itself. The financial services industry, with its regulatory scrutiny and demand for precision, sees AI adoption struggles at twice the rate of traditional IT initiatives.
To succeed with AI, financial institutions need more than technical prowess—they need strategic alignment and a phased approach.
Start small, think big
One of the most effective ways to introduce generative AI is to begin with small, manageable proofs of concept (PoCs) that directly address known pain points. Financial institutions should focus on identifying areas where AI can provide immediate value without overwhelming complexity. Quick-win projects, such as automating document processing or personalising client communications, can yield early benefits and build confidence in AI’s potential.
The guiding principle here is to “Start small, then scale”—establish a foundation with simpler AI applications before moving to more complex, high-stakes
implementations. This gradual escalation minimises risk, allows teams to refine skills, and provides measurable evidence of value to stakeholders.
Key concepts for successful AI adoption
The journey to effective AI adoption can be distilled into four critical concepts:
• Strategic Alignment: AI adoption should begin with a top-down strategy, aligned with core business objectives. The focus should always remain on high-impact, high-value tasks that AI can augment.
• Autonomy Mapping: Starting with low-autonomy applications (e.g., automated reporting) and scaling up to high-autonomy applications (e.g., decision-making models) enables institutions to mitigate risk. More complex
applications should be introduced gradually as organisational confidence in AI capabilities grows.
• Iterative Development: AI systems, particularly generative ones, should undergo continuous development cycles. Iteration allows AI models to adapt and evolve, refining outputs in response to real-world data.
• Quality and Accountability: Traditional quality assurance methods are often inadequate for generative AI, where outputs can vary widely. Financial institutions must establish frameworks that address fairness, accountability, transparency, robustness, and privacy to mitigate AI’s unique risks.
Addressing risks unique to Generative AI
Generative AI introduces risks that conventional IT systems do not typically encounter. Variability in outputs, potential for misinformation, and susceptibility to
biases demand a new approach to quality and oversight.
AI models in financial services must adhere to strict standards to prevent discrimination, misinformation, and breaches of privacy. In this respect, governance frameworks should echo human accountability structures, encompassing policies, peer review, and ongoing performance evaluations. Financial institutions should invest in AI audit mechanisms to ensure the system’s reliability and transparency, thus maintaining the trust of clients and regulatory bodies.
The human factor: AI’s role in high-value work
While AI can automate many routine tasks, financial services must strategically leverage it for high-value, creative work. By offloading repetitive tasks to AI, institutions enable employees to focus on complex problem-solving and innovation, leading to better decision-making and customer experience.
The interplay between AI and human expertise should aim to augment rather than replace human skills, transforming roles rather than diminishing them. A balanced approach to AI adoption can foster a collaborative ecosystem where AI tools empower rather than disrupt.
The financial services industry is ripe for an AI-led transformation, but success requires more than enthusiasm. By taking a strategic, measured approach to generative AI, financial institutions can unlock efficiencies, enhance client satisfaction, and stay competitive without succumbing to the pitfalls of overcommitment or inadequate oversight.
As we stand on the cusp of an AI-driven revolution, now is the time for financial organisations to start small, iterate, and scale with purpose—embracing the possibilities of AI while safeguarding the integrity of their operations and client relationships.
How AI is transforming the commodities trading landscape
We live in an age of highly volatile geopolitics, and the commodities trading sector is experiencing a fundamental shift as artificial intelligence technologies mature from experimental tools to essential trading companions. This transformation is reshaping how traders analyse markets, manage risk, and execute trades in an increasingly complex global marketplace.
The evolution of trading intelligence
Wilson Chan, CEO Permutable AI
First, the obvious: traditionally, commodities trading success relied heavily on human expertise - years of market experience, intricate knowledge of supply chains, and carefully cultivated relationship networks. Whilst these elements remain valuable, AI is augmenting human capabilities in unprecedented ways. Even the most seasoned of commodities traders might admit that processing vast amounts of data would be impossible for any individual to analyse effectively.
You can't argue with the fact that recent developments in machine learning have enabled systems to identify subtle patterns across multiple data streams. The truth is more complicated than simply collecting data - the depth and breadth of analysis have expanded dramatically. Much of that is due to modern AI systems excelling at processing real-time market data alongside historical price movements. Increasingly, these systems provide insights that bridge past patterns with current market conditions.
Breaking down complex market dynamics
The keys to understanding AI's impact on commodities trading lie in its ability to break down complex market interactions into analysable components. Again and again, we see how modern AI systems are able to track and analyse thousands of variables simultaneously that would be impossible to do by a human analyst, identifying correlations and causations that might escape even the most experienced traders and teams of analysts..
This method applies across all commodity classes. For example, in energy markets, these systems are capable of simultaneously processing news on weather impact on consumption patterns on a minute-by-minute basis. But there is no doubting their ability to go further - for example, by deciphering demand forecasts that account for both short-term weather events and longer-term climate trends. The hardest part is integrating all these data points meaningfully, and that's where AI truly shines.
Real-world applications and impact
The present outlook for AI in commodities trading is extremely promising. At least in terms of practical applications, trading firms already using our advanced AI systems through the deployment of our Trading Co-Pilot are reporting significant improvements in several key areas:
Just as notably, risk management has been transformed through AI’s ability to continuously monitor market conditions and portfolio exposure. Add to this the invaluable potential for commodities traders to receive AI-powered event-driven news and price insights for their traded assets, with directional insights via fine-tuned language models.
Then there is the challenge of market analysis. We can be extremely confident that machine learning models processing years of historical data are reaching new levels of sophistication. All of which suggests we're only beginning to scratch the surface of what's possible in terms of the application of AI in commodity trading. I
The human-AI partnership
The challenge of traditional trading approaches against the backdrop of increasingly complex markets has led to perhaps the most interesting development in this space: the emergence of AI Trading CoPilots working alongside human traders.
Despite this, it’s important to note that these systems don't replace human judgement but rather augment it by providing real-time analysis and decision support. Indeed, the loss of trust in purely automated systems has actually strengthened the case for this hybrid approach and one which we are fully supportive of.
Ultimately, good decisions rely on insights drawn from vast quantities of news and industry data - this currently relies on costly teams of analysts and economists, to which many traders don't have access to unless they are part of a large trading house.
Author bio
AI is able to surface events as they happen and give insight into their price impact, based on AI-driven analysis of tens of thousands of data sources, democratising access to sophisticated market intelligence that was previously available only to the largest trading houses.
Looking ahead
If our own experience and feedback from our clients tells us anything it's that the future of AI in commodities trading holds immense potential. For the avoidance of doubt, this is not to say that human traders will become obsolete. And we must acknowledge that successful trading firms of the future will likely be those that find the right balance between human expertise and AI capabilities. Imagine too the possibilities as these technologies continue to evolve - we might see applications that we can barely conceive of today.
If narratives shape politics and markets alike, then the integration of AI into commodities trading represents not just a technological advance, but a fundamental shift in how we approach market analysis and trading decisions. You can make the argument that the partnership between human insight and artificial intelligence promises to make commodities trading more efficient, informed, and resilient in an increasingly complex global marketplace.
is CEO at Permutable AI, a London-based fintech innovator transforming the trading landscape through advanced artificial intelligence solutions. With a distinguished background that includes senior roles at Merrill Lynch and Bank of America, Wilson brings deep institutional expertise in market analysis and critical thinking to the challenge of modernising trading technology.
Wilson Chan
INVESTING under the FINFLUENCE
Nearly half of young adults under the age of 30 trust the advice given by social media influencers – including when it comes to money. The Financial Conduct Authority is stepping in to try to make sure that ‘finfluencers’ can’t peddle harmful financial products
The majority of UK adults under the age of 65 believe that the benefits of social media sites outweigh the risks, according to Ofcom. Older people are more wary, and it turns out that they may have good reason. The Financial Conduct Authority announced on 22 October that it is interviewing twenty ‘finfluencers’ under caution as part of “targeted action against finfluencers who may be touting financial services products illegally”.
Steve Smart, joint Executive Director of Enforcement and Market Oversight at the FCA said: “Finfluencers are trusted by the people who follow them, often young and potentially vulnerable people attracted to the lifestyle they flaunt. Finfluencers need to check the products they promote to ensure they are not breaking the law and putting their followers’ livelihoods and life savings at risk.”
According to the FCA, around 62% of 18- to 29-year-olds follow social media influencers, and 74% of those young people said that they trusted influencers’ advice. That is not far off half of all young adults under the age of 30. Worryingly, “9 in 10 young followers have been encouraged to change their financial behaviour” by influencers.
The regulator had already published guidance on financial promotions on social media in March 2024 and taken action against nine ‘finfluencers’. It spelt out that those making financial recommendations online may find themselves in breach of Section 21 of the Financial Services and Markets Act 2000. That is a criminal offence, which can lead to up to two years in jail and/or an unlimited fine. The rules apply even if the communication originates outside the UK if it is “capable of having an effect” in the UK.
The fact that making financial promotions is something that not just everyone is allowed to do may have come as a rude shock to some ‘finfluencers’. After all, what’s the harm in talking up a particular product, they may have thought, as they pocketed the fee, no-one has to buy it.
That is not the way the FCA sees it and it provides a helpful flowchart on when to be worried about what you say about financial products and services. The bottom line is that giving financial advice is a regulated activity. Holders of the Diploma in Financial Advice (DipFA), which is minimum qualification required of financial advisers by the FCA, typically study for at least 9 months and the qualification is Level 4 (equivalent to the first year of an undergraduate degree). The Advanced DipFA is degree standard.
For those seeking help with their finances, but unable to hire a financial adviser, there are some government and charitable services that offer free financial guidance, without endorsing any companies or products. These include MoneyHelper, Citizen’s Advice and Step Change.
The FCA can, and does, launch criminal proceedings against those in breach of the rules on giving financial advice. And the FCA is not the only regulatory that influencers need to be wary of. The Advertising Standards Agency (ASA) is another. Other than monetisation on their
channel, there are a few ways that influencers can make money from companies for advertising their products. They might have a wider brand partnership, earn commission money for referrals, or be paid an upfront fee for an advert or mention. Under ASA rules, influencers have to declare if any products they mention are paid advertisements or if they were gifted. The agency sanctions social media stars who fall foul of the regulations, and names and shames repeat offenders.
For those engaging with financial content on social media, here are some key things to remember:
• Check if the person giving advice is FCA-regulated
• Be wary of posts promoting specific financial products or investments
• Look for #AD or #sponsored tags that indicate paid content
• Remember that influencers may receive commissions or fees for recommendations
• Consider whether the financial advice is generic or tailored to your specific situation
While it’s good to see younger people take a close interest in money management, this shouldn’t happen in a void. The rise of social media means it’s more important than ever to signpost the right sources of advice and guidance.
And perhaps we might see more young people looking to get a formal qualification in giving financial advice from an organisation like LIBF.
John Somerville, Director of Financial Services at LIBF
AWARDS WINNERS LIST 2024
Winners Titles
Aafiya TPA
Access Bank-Ghana
Access Bank-Ghana
Access Bank-Nigeria
Access Bank-Nigeria
Access Bank-South Africa
Alveo Land
Amana Takaful Insurance-SriLanka
Arab Financial Services Company-AFS
Arab Financial Services Company-AFS-Egypt
ARMECONOMBANK OJSC
AsiaPay
AsiaPay
AsiaPay
AUCTUS Capital Partners AG
AvaTrade
Bank Nizwa
Bank of Industry
Banka Kombetare Tregtare-BKT
Banka Kombetare Tregtare-BKT
Beltone Holding
Beltone Holding
Bite Investments
Best Health Insurance TPA Service Provider UAE 2024
Best SME Bank Ghana 2024
Best ESG Bank Ghana 2024
Best Bank for Sustainable Finance Nigeria 2024
Most Leading Sustainable Bank Nigeria
Most Trusted Banking Partner South Africa 2024
Most Innovative Real Estate Developer Philippines 2024
Best Takaful Insurance Company Sri Lanka 2024
Best Digital Payment Solutions Provider Bahrain 2024
Best New Digital Payment Solutions Provider Egypt 2024
Best MSME Bank Armenia 2024
Best Digital Solutions Provider Singapore 2024
Best Digital Payment Service Provider Hong Kong 2024
Best Digital Payment Service Provider Malaysia 2024
Best Private Equity Firm CEO Germany 2024- Dr. Ingo Krocke
Best Trading Platform Spain 2024
Best Islamic Bank Oman 2024
Best ESG Financial Company Nigeria 2024
Best Digital Bank Kosovo 2024
Best Retail Bank Kosovo 2024
Best Fixed Income Fund Company (B-Secure) Egypt 2024
Best New Fund Management Product (Sabayek) Egypt 2024
Best Investment Technology Solution Provider UK 2024
Winners
Bite Investments
Blackwell Global Assets Management Limited
BPC
Bualuang Securities Public Company Limited
Caye International Bank
China Asset Management Co., Ltd
China Asset Management Co., Ltd
China Asset Management Co., Ltd
CI Capital Asset Management
Commercial Bank of Ceylon PLC
Commercial Bank of Ceylon PLC
Sacombank & Dai-ichi Life Vietnam
Diamond Seguros
Dunav Voluntary Pension Fund Management Company
Faraday Venture Partners
Fast Cover Travel Insurance
First Capital
First Capital Bank Botswana
First Capital Treasuries PLC
FOO
Forex Masters
FOREX TIME, (FXTM)
Fosun International Limited
Genero Capital LLC
GIG Insurance Egypt
Hong Leong Financial Group
HPS
IC Markets
ICICI Securities
Ilani Concepts
Invest Chile
Titles
Most Innovative Alternative Investment Fintech Company UK 2024
Fastest Growing Investment Management Company Hong Kong 2024
Best Payment Technology Solution Provider UK 2024
Most Leading Investment Banking Company Thailand 2024
Best Private Bank Central America 2024
Best Asset Management Company China 2024
Best Sustainable Investment Asset Management Company China 2024
Best ETF Manager China 2024
Best Performing Asset Management Company Egypt 2024
Best Digital Bank Sri Lanka 2024
Best SME Bank Sri Lanka 2024
Most Trusted Bancassurance Services Provider Vietnam 2024
Best Insurance Director General Mozambique 2024-Amon Rupiya
Best Pension Fund Management Company Serbia 2024
Most Customer Centric Venture Capital Firm Spain 2024
Best Travel Insurance Company Australia 2024
Best Investment Banking Company Sri Lanka 2024
Best Corporate Bank Botswana 2024
Most Leading Non-Bank Primary Dealer Sri Lanka 2024
Best Fintech Company UAE 2024
Best Forex Training Company South Africa 2024
Best Forex Education Provider Nigeria 2024
Best ESG Company Hong Kong 2024
Best SME Financial Advisors UAE 2024
Best General Insurance Company Egypt 2024
Best IR Company(Financial Holding Company) Malaysia 2024
Best Digital Payment Solution Provider Morocco 2024
Best Forex Broker Seychelles 2024
Best Digital Wealth Management Company India 2024
Best Web Designing Company Kenya 2024
Most Leading Investment Promotion Agency South America 2024
JFD Group Ltd
Winners Titles
Joyalukkas Exchange
JSC Galt and Taggart
JSC Galt and Taggart
Jubilee Allianz General Insurance Company of Tanzania Limited
KBC-Asset Management
KCB Group
KCB Group
KdedeC Consultancy and Traınıng Company
Mashreq
Mashreq
Mashreq
M-DAQ Pte Ltd
Metropole Property Strategists
National Savings Bank
Nedbank-South Africa
NordFX
Octa
One Asset Management
PETRONAS Dagangan Berhad
PETRONAS Dagangan Berhad
PremiumTrust Bank
Principal Asset Management Berhad
Qatar Insurance Company
Samuel and Co Trading
Softlogic Life Insurance Company PLC
Stanbic IBTC Asset Management
Stanbic IBTC Bank
Stanbic IBTC Insurance Brokers
Most Transparent Forex Broker Cyprus 2024
Best Foreign Currency and Remittance Exchange UAE 2024
Best Investment Bank Georgia 2024
Most Leading Corporate Finance Advisory Georgia 2024
Best General Insurance Company Tanzania 2024
Best Sustainable Asset Management Company Belgium 2024
Best Banking Group Kenya 2024
Best Internal Communication Campaign Of The Year Kenya 2024- Biashara
Best Aviation Consultancy and Traınıng Company Turkey 2024
Best Retail Bank UAE 2024
Best Bank For ESG & Sustainable Development UAE 2024-Nature Saver Account
Most Innovative Banking Products UAE 2024- Multi Currency Accounts and 1 Click Deposit
Most Innovative FX Solutions Provider Singapore 2024
Best Property Investment and Wealth Strategist Company Australia 2024
Most Innovative Mobile Savings Application SriLanka 2024
Best Digital Bank South Africa 2024
Best Crypto Broker South East Asia 2024
Best Islamic-Friendly Broker Indonesia 2024
Most Innovative Asset Management Company Thailand 2024
Best IR Team Malaysia 2024
Most Outstanding Energy Solutions Providing Company Malaysia 2024
Fastest Growing Bank Africa 2024
Best CEO( Asset Management Company) Malaysia 2024-Munirah Khairuddin
Best Digital Insurance Company Qatar 2024
Best Online Trading Course Provider UK 2024
Best Health Insurance Sri Lanka 2024
Most Innovative Asset Management Company Nigeria 2024
Best Bank for Vehicle and Asset Financing Nigeria 2024
Most Innovative Insurance Brokerage Company Nigeria 2024
Stanbic IBTC Trustees Limited
Steward Bank
Best Trust Company Nigeria 2024
Most Outstanding Digital Bank Zimbabwe 2024
Strategic Management Partners, Inc. Best Turnaround Management Company(Outside Director) USA 2024
Sukoon Insurance
Most Customer Centric Insurance Company UAE 2024
Sukoon Insurance Best Online Insurance Company UAE 2024
Sukoon Takaful Most Customer Centric Takaful Company UAE 2024
Tenge Bank Best International Bank Uzbekistan 2024
Tianjin Port Development Holdings Limited Best Smart and Green Port Operating Company Hong Kong 2024
Trading.md Best Forex Education Provider Moldova 2024
Trigon Asset Management AS
TrioMarkets
uab bank Limited
VT Markets-Europe
VT Markets-UAE
XPBEE
Yapi Kredi Asset Management
Most Outstanding Fund Management Company Estonia 2024
Most Trusted Forex Broker Mauritius 2024
Best Retail Bank Myanmar 2024
Fastest Growing Multi Asset Brokerage Company Europe 2024
Most Outstanding Multi Asset Brokerage Company UAE 2024
Fastest growing CFD’s and Crypto Broker Saint Lucia 2024
Best Asset Management Company Turkey 2024
How financial institutions can avoid failing on their digital transformation journey
Kami Holtz, VP of Business Development, at Coherent Solutions
The most crucial step in every journey is the first step. Without the first step, the journey can never happen, whether dropping a bad habit or embarking on a digital transformation journey. However, when starting a digital transformation project, many steps must be taken before beginning the physical journey.
For financial institutions, the decision as to whether they should begin a digital transformation project has been taken out of their hands. It’s no longer a question of if but when. Increasing demands from both internal and external stakeholders for more contactless experiences, fast interaction times, and flexibility have pushed financial institutions that might be entrenched in outdated practices.
Yet, decision-makers within financial institutions are astutely aware of the economic and cultural potential cost that a failed digital transformation project can bring. in 2024, it has been reported that has been wasted globally due to failed digital transformation projects.
So, $64,000 question still remains: Can financial institutions avoid being among the 70% of failed digital transformation projects?
Where there is no vision, there might be no point.
“Knowledge is power!” This famous
quote from British Philosopher Francis Bacon is highly relevant, especially when understanding why your financial institution should integrate specific technology into its infrastructure. Financial Institutions need to have a clear understanding of the ROI they want to achieve before embarking on a digital transformation project. Simply following competitors in adopting new technologies does not guarantee the same benefits for your institution.
When deciding on the type of digital transformation project to undertake, whether large-scale or small, various factors must be considered. These decisions should be based on a rigorous assessment of your institution’s current technology stack to determine if existing hardware or software needs updating or replacing.
An in-depth understanding of your technology stack provides clarity on your current capabilities and helps you to envision the direction of your digital transformation project, ultimately saving you both time and costs.
Bridging the skills gap
During a digital transformation project, financial institutions may find themselves in a difficult position, unable to progress due to the lack of internal skilled IT professionals. This shortage can increase the overall cost and potentially stall the project. To avoid these issues, financial
institutions should seek support from software development experts. These experts can provide the necessary skilled consultants and help address future problems, ensuring the project’s success.
Prior to appointing technological consultants, they should carefully consider and understand the specific type of support they need.The external support sought by financial institutions should be multi-faceted, offering not only essential technological expertise but also aiding in cultural and holistic business transformation. This comprehensive approach ensures that technological changes are effectively integrated with broader organizational objectives.
Maximising your ROI
Boards across various sectors expect a return on investment (ROI) from any digital transformation project they undertake. However, achieving the desired ROI in today’s AI-driven landscape requires more than just integrating new technology. Success is not guaranteed without precise planning from the outset. Whether the goal is increased efficiency, cost reduction or data-driven decision-making, boards anticipate a positive ROI at the end of the digital transformation journey.
By adhering to a well-mapped strategic plan and leveraging support from technological consultants, financial institutions can ensure they achieve the ROI.
Kami Holtz, VP of Business Development, Coherent Solutions.
How Asset Managers Can Harness Their Most Valuable Resource
Paul Ronan, Chief Technology Officer FE fundinfo
The asset management industry finds itself at a pivotal moment, contending with regulatory pressures and the relentless pace of technological change. In this unstable environment, firms are seeking strategies to stay ahead of industry shifts by enhancing their operational efficiency. One valuable and often overlooked resource is data which, when harnessed effectively, can help asset managers deliver significant value for clients.
Data as the Foundation of Asset Management
Data has become an essential tool for asset managers. Many professionals will use it every day for market analysis, tracking investment performance, demonstrating outcomes to clients, and developing impactful investment strategies. But an increasing number of firms are going further. It is now recognised as the foundation of operational efficiency, providing asset managers with information to better track performance and develop strategies to drive growth. Moreover, data paves the way for integrating advanced technologies, such as artificial intelligence, into everyday operations.
Research from FE fundinfo’s Asset Managers Report highlights the growing importance of data management, with 48% of asset managers planning significant investments in this area. Additionally, 88% agree that accurate, timely data is crucial for driving asset growth. In today’s
environment, data-driven decision-making is not a luxury; it is a necessity. However, turning this goal into reality presents significant challenges.
Building a Golden Source of Data
Many firms still rely on outdated data management practices, such as manually sharing spreadsheets, which creates silos and increases the risk of errors. These silos, particularly between the front, middle, and back offices, can lead to inefficiencies. Addressing these issues involves creating seamless data flows across organisations. Technologies such as Application Programming Interfaces (APIs) allow different systems to communicate efficiently, enabling real-time data access. This connectivity is crucial for identifying trends quickly and making informed decisions, as well as reducing errors and streamlining operations.
Furthermore, to fully realise data’s potential, asset managers need to build a “golden source”—a single, centralised, and validated repository of data. This ensures that the data is accurate, consistent, and ready for future use, such as in advanced analytics or the integration of AI. Without this centralised source, duplicated or outdated data will undermine efforts to drive innovation. Creating a golden source is also key for regulatory compliance, helping asset managers better meet investor transparency requirements and streamline their reporting processes.
Poised for Future Innovation
The benefits of clean, connected data extend beyond operational efficiency. AI and machine learning have vast potential to revolutionise asset management, but can only be effectively harnessed when used with a complete, cohesive set of data. When leveraged correctly, they have the potential to streamline a wide range of processes, from automating administrative tasks, to integrating data for better risk management practice, as well as accelerating investment research.
By investing in their data infrastructure, asset managers can fully harness AI’s capabilities in the future. According to research from FE fundinfo, asset managers are still in the early stages of exploring AI use cases, with 44% stuck in the research phase. Those who refine their data capabilities now will be best poised to capitalise on the future opportunities presented by AI.
The Foundation for Future Advancements
Asset managers that successfully utilise data will unlock unprecedented innovation and significant growth opportunities. Data is not just a tool for the present but a foundation for future advancements. Therefore, the goal of improved data infrastructure should extend beyond individual firms. The broader vision must be a more connected and integrated investment industry, where high-quality data flows seamlessly between asset managers, financial advisers, and investors, creating a collaborative ecosystem that benefits all parties.
Data remains the most underutilised resource in the asset management industry today. However, by strategically investing in the right tools, and building robust processes, firms can unlock its immense potential. When data is effectively managed, centralised, and shared across the entire value chain, it can drive operational efficiency and foster innovation, leading to enhanced outcomes for both asset managers and clients.
Financial inclusion remains a global challenge, with over 1.4 billion people still excluded from the financial system. The issue is especially acute in emerging markets across Asia, Africa, Eastern Europe, North Africa, and Latin America, where they face significant hurdles, with 60% of adults in Asia, 57% in sub-Saharan Africa, and 45% in Latin America lacking access to essential financial services like banking, credit, and savings. This exclusion exacerbates economic inequality and stifles growth in these regions. Without access to formal financial services, people often rely on cash transactions, which are costly and insecure. Furthermore, these underserved populations face even greater financial limitations without the ability to build a credit history.
Telecom operators have stepped in to address these challenges, leveraging their extensive infrastructure and vast customer base to provide innovative digital financial services. These mobile-driven solutions, including mobile wallets, Buy Now Pay Later (BNPL) services, and AI-powered tools, are transforming the financial landscape and creating new pathways for financial inclusion.
The Role of Telecom Operators in Financial Inclusion
The advent of mobile money services is one of the most significant breakthroughs in promoting financial inclusion. Telecom giants such as Kenya’s M-Pesa, the Philippines’ GCash, India’s Paytm, Bangladesh’s bKash, Tanzania’s Airtel Money, and Ghana’s MTN MoMo have pioneered mobile money platforms that allow users to conduct a range of financial transactions such as payments, micro-loans, and micro-savings. These services have been especially impactful
in areas where formal banking systems are underdeveloped or entirely absent.
For example, M-Pesa has revolutionised financial access in Africa, allowing millions of previously unbanked individuals to transfer money, deposit and withdraw funds, and make payments directly through their mobile phones, so no bank account is needed. This platform has made a significant impact, providing a gateway to financial inclusion for many who had been excluded from traditional banking systems.
Similarly, in China, platforms such as Alipay and WeChat Pay have used QR codes to enable digital payments, which have empowered small merchants and rural populations to accept payments without needing expensive equipment. Airtel Money and MTN MoMo have had a similar effect across Africa, offering financial services to millions, enabling them to send money, pay bills, and participate in the digital economy.
Latin America is also experiencing a wave of mobile-driven financial services. Brazil’s Nubank provides digital wallets, while Mexico’s Conekta offers BNPL services to extend credit to individuals without access to traditional banking. These telecom-led innovations are further evidence of how mobile operators are filling the gap in financial services and ensuring access for underserved communities.
Overcoming Accessibility and Affordability Barriers
Despite the progress in expanding financial services, challenges related to accessibility and affordability persist. One key barrier to entry is the need for formal identification to meet Know Your Customer (KYC) requirements. Many individuals in underserved regions do not possess official identification documents, making it difficult for them to open bank accounts or access financial services.
To tackle this issue, telecom operators have introduced digital wallets with simplified KYC procedures. These wallets, such as those offered by M-Pesa and Paytm, require minimal documentation, making it easier for individuals to enter the financial system. By offering low-barrier, KYC-light wallets, telecom
companies are enabling millions of people to access essential financial services without the need for extensive formal documentation.
Moreover, the COVID-19 pandemic underscored the importance of digital financial solutions. During the pandemic, governments around the world struggled to distribute relief funds efficiently, particularly in regions with low bank penetration. In response, mobile money platforms in countries like Ghana and India enabled governments to distribute emergency funds quickly and securely, reducing delays, fraud, and logistical complications.
Harnessing AI and 5G to Drive Financial Inclusion
The future of financial inclusion looks even brighter with advancements in artificial intelligence (AI) and 5G technology. AI has already begun to play a transformative role in credit scoring. Traditional credit scoring systems rely heavily on established financial histories, which many unbanked individuals lack. However, AIpowered platforms like Tala, operating in East Africa and the Philippines, use alternative data sources—such as mobile phone usage and social network interactions—to assess creditworthiness. This allows individuals with little or no formal credit history to access microloans and other financial products, enabling economic empowerment and supporting entrepreneurship.
As mobile networks evolve, the rollout of 5G technology is poised to further enhance financial inclusion. 5G promises to lower mobile data costs and increase the speed and reliability of digital services, providing improved access to mobile banking, microloans, insurance, and
other financial services. This enhanced connectivity will bridge the rural-urban divide, enabling people in remote areas to access digital financial services more easily and participate in the digital economy.
Telecom Operators as Catalysts for Economic Empowerment
Telecom operators are essential in the global push for financial inclusion. By leveraging their vast infrastructure, customer bases, and technological capabilities, telecom companies are breaking down barriers to financial access, affordability, and literacy. Through mobile wallets, BNPL services, and AI-driven credit scoring, telecom operators are providing scalable, cost-effective financial solutions that empower underserved populations.
The promise of AI, 5G, and other technological advancements will only accelerate the push towards a more inclusive financial future. As telecom operators continue to expand their financial services offerings, they are not only improving economic access for millions of individuals but also driving broader economic growth in regions that have long been excluded from the global financial system. By continuing to innovate and collaborate with financial institutions and regulators, telecom companies can help create a more equitable, digitally inclusive world.
Prianca Ravichander, CMO & Head of Global B2B2X Monetisation, Tecnotree
WHY AI IN BANKING SECURITY IS BOTH A SHIELD AND A SHADOW
by Angus Panton, Head of Banking & Financial Services, UK at Expleo, a global engineering, technology and consulting service provider.
Today’s banks aren’t just financial institutions, they’re data fortresses, processing a staggering 11.4 billion payments across the UK in 2023. With every transaction, from a coffee purchase to a high-value trade, comes the threat of a cyberattack. As hackers become more sophisticated, banks are turning to AI to shore up their defences. But with every solution, there’s a twist—AI isn’t just a shield; it’s also a potential threat in the wrong hands.
We explore this dual role in AI in Cybersecurity: Between Shield and Shadow, a new guide that looks at how AI can help the financial sector outsmart cybercriminals, but it’s a balancing act— harnessing new tech while staying one step ahead of those who’d use it against us.
AI: The fraud-fighting superpower
Fraud is nothing new, but the tactics are evolving. In the UK, we’ve seen AIenhanced phishing scams that can fool even tech-savvy professionals. These schemes don’t rely on poorly written emails from dubious addresses anymore. Now, they come cloaked in sophisticated AI-driven language that reads like an authentic customer query.
This is where AI shines as a defender. Technologies like Natural Language Processing (NLP), Machine Learning (ML) and Deep Learning are becoming the backbone of fraud detection.
NLP, for instance, can sift through mountains of emails and chat logs, spotting subtle signs of a scam that a human might miss. ML, meanwhile, excels at detecting odd patterns in real time—flagging transactions that deviate from the norm. Think of it as having a digital detective on call, day and night.
Deep learning ups the ante further, allowing banks to catch more complex fraud attempts as they happen. It’s the kind of technology that could mean the difference between a blocked scam and a costly breach.
When AI goes rogue: WormGPT and beyond
But there’s a darker side to this tech revolution. Enter WormGPT—a sinister AI chatbot crafted for cybercriminals. Unlike the AI you might use for customer service, WormGPT is designed to create highly convincing phishing messages, fooling people into clicking links they should avoid. It’s like giving hackers a megaphone, amplifying their tricks to deceive even the savviest targets.
The risks don’t stop there. AI is also being used to manipulate markets, creating chaos through fake news that can send
stock prices into a tailspin. This kind of misinformation can ripple through the market, influencing investor behaviour and sowing panic. And then there’s the risk of tampered AI models—malicious tweaks that could make systems misinterpret regulatory rules, landing banks in hot water with the regulators.
In this high-stakes game, banks need more than just cutting-edge tech—they need constant vigilance. Because while AI offers tools that can make institutions smarter and faster, the bad actors aren’t resting either.
Building smarter, safer banks
So how do banks stay ahead? The answer lies in a multi-layered approach, starting with a principle known as zero-trust. The idea is simple: trust no one, verify everything. Every user, every device, every transaction gets checked, with AI playing
a crucial role in spotting anything out of the ordinary.
However, AI’s role in finance isn’t just about keeping hackers at bay; it’s also about boosting efficiency and delivering real value. According to Expleo’s report, Integrating AI: Navigating the Next Wave of Business Transformation, 76% of financial institutions are rolling out AI to improve productivity and cut costs. With that comes the challenge of navigating the complex, often expensive, road to integration and scaling—a task that requires careful planning and expert guidance.
But AI isn’t foolproof, which is why rigorous testing is non-negotiable. At Expleo, this means putting AI models through their paces, with rigorous quality assurance before they’re deployed in the real world. It’s not just about spotting current threats—it’s about being ready for whatever new tricks hackers might try next.
Looking ahead, the future of AI in banking is bright, but it’s not without its shadows. The banks that come out on top will be those that can master this delicate dance—embracing the power of AI while never forgetting the risks that come with it. As the digital frontier expands, the smartest move isn’t just adopting the latest tech—it’s knowing how to wield it with care.
In a world where every click counts, and every transaction could be a target, AI is proving to be both the sword and the shield. The question is, who’s holding it?
Angus Panton, Head of Banking & Financial Services, UK at Expleo
AI in trade compliance: Boosting efficiency and cutting costs for global businesses
Michiel Kalverkamp, Chief Customer Officer at Besso, explores how AI-powered solutions are transforming trade compliance, enabling businesses to navigate complex regulations, optimise cost savings and minimise the risks of non-compliance in an everevolving global trade environment.
As global trade grows more complex, businesses are having to devote an ever-increasing amount of time and resources to comply with evolving regulations across borders. With each country’s unique tariffs, documentation requirements and standards, maintaining compliance has become a resource-intensive task that demands constant vigilance. For many businesses, this complexity results in missed savings, regulatory penalties and disruptions to operations. However, with the rise of AI-driven solutions, businesses now have a way to manage these challenges efficiently, cut costs, and minimise the risk of sanctions.
The high stakes of trade compliance
Non-compliance in global trade can carry significant financial and operational risks. As regulations
Michiel Kalverkamp
are frequently updated, businesses may face unexpected fines, delays in shipment, or even loss of market access if they fail to adhere to local standards. Recent years have seen an increase in protectionist policies and a shift in trade alliances that further complicate compliance, forcing businesses to rapidly adapt to avoid sanctions and maintain a competitive edge.
For businesses with complex supply chains, staying on top of these changes manually is nearly impossible. This is where AI-driven compliance solutions can offer a fast and simplified means for businesses to manage compliance obligations.
AI’s role in streamlining trade compliance
AI’s power lies in its ability to process and analyse vast amounts of data in real time, which is essential for navigating the intricacies of trade compliance. AI can automate the routine aspects of compliance, such as verifying documentation, monitoring regulatory changes and ensuring eligibility for Free Trade Agreement (FTA) benefits. This frees human teams to focus on higher-level tasks, reducing errors and improving operational efficiency. Services that AI can provide to businesses include the following:
Real-time regulatory updates
AI can scan and interpret regulatory updates from many sources, instantly alerting businesses to changes in relevant compliance rules. Where previously they may have had to sift through complex legal text, AI offers businesses actionable insights, helping them to stay compliant with new rules and avoid penalties proactively.
Automated documentation and sanction screening
AI solutions can automatically screen documentation for compliance with sanctions, tariffs and import-export regulations. This capability not only reduces the risk of costly penalties but also accelerates shipment processing, enhancing overall efficiency. By screening for sanctions in real time, businesses are less likely to unknowingly violate trade restrictions and more likely to maintain favourable business relationships.
Cost optimisation through accurate tariff management
Trade compliance often requires that businesses demonstrate the origin and composition of their products to qualify for tariff reductions under FTAs. AI can help by simplifying and automating this verification process, reducing the chances of errors that can lead to missed cost savings.
Reduced dependency on specialised compliance experts
A growing issue for businesses is the scarcity of qualified trade compliance professionals. AI systems can take on the role by managing the routine, data-intensive tasks traditionally managed by compliance experts, allowing businesses to operate more independently and reducing their reliance on costly and often scarce external expertise.
Unlocking financial opportunities through FTAs
FTAs represent a significant but often underutilised opportunity for cost savings, cutting out many of the costs, tariffs and taxes associated with international trade. Compliance requirements associated with FTAs are typically complex, demanding detailed documentation to qualify. These requirements can discourage businesses, especially smaller ones, from taking full advantage of available FTAs.
AI-powered tools can streamline the qualification process, simplifying FTA compliance and maximising tariff reductions. Key ways in which AI helps unlock FTA savings include:
Efficient FTA qualification
AI automates the intricate calculations needed to verify a product’s eligibility for FTA benefits.
Cost-savings analysis
AI tools can analyse trade patterns and identify areas where FTA benefits might apply, offering a clearer picture of potential savings. Provided with this level of insight, businesses can prioritise specific trade flows that yield the most financial benefit.
Enhanced accessibility for smaller enterprises
Smaller businesses often lack the resources to manage complex compliance processes, putting them at a major disadvantage against larger competitors and multinationals who can afford to engage teams of lawyers and in-country specialists. AI universalises access to FTA savings by simplifying qualification processes and enabling businesses of all sizes to take advantage of trade agreements.
In a world where international trade rules have never been more complicated, adopting AI-driven trade compliance solutions helps businesses streamline their processes, reduce risks, and ultimately boost profitability. As global trade continues to evolve, businesses that leverage AI will find themselves well-positioned to keep up with the regulatory landscape.
Streamlining tax filing with tech: A solution for self-employed and high earners
By Arjun Kumar, Founder of Taxd
With the January deadline for tax filing looming, technology is the way to go as it will streamline the processing of paperwork and ensure that the documentation is all in order. When information isn’t properly recorded and submitted, individuals risk underpaying or overpaying. For example, many don’t know what expenses they can claim - or even if they can claim expenses. Some people don’t even know how to get started, register for tax, keep records or handle the process, especially those who are self-employed or earn a foreign income.
This is because many individuals lack the information or education to do their taxes efficiently. While a solution could be to hire an accountant, these are often too expensive for many people to access.
What is far more effective is to use technology to sort out tax affairs. This is especially important given that HMRC, the UK’s tax payments and customs authority, is shifting to a digital system. This, HMRC says, will make it easier for individuals and businesses to get their tax returns right.
However, the HMRC digital system is simply a form of data entry that takes away the physical need to send in documents. This means it doesn’t automatically offer the best possible outcome for taxpayers who don’t earn regular salaries or help people ensure that they are filing correctly.
To file in a compliant and tax efficient manner, taxpayers and businesses should use tax technology to save time and money. By making use of software, taxpayers can claim expenses (which the HMRC system wouldn’t suggest), to ensure that they don’t overpay and claim relief where necessary. It also
aids in ensuring that they don’t underpay, which could come with penalties.
Traditionally, tax would be taken care of through a three-step process, which would involve the taxpayer gathering data, figuring out their allowable tax reliefs and preparing their own return, or submitting it to an accountant to prepare, and then filing.
This can be laborious, especially when additional information is required. All these steps can be consolidated by streamlining the process up front so that every possible piece of documentation is flagged as being required and can be submitted.
Of course, filing in forms is another pain point when it comes to submitting tax returns. Digitising tax processes also means that paperwork such as receipts for travel and business expenses can be collated in an efficient manner so that there is less of a need to deal with piles of paper.
By using technology, the mundane tasks linked to tax filing are reduced. This means that individuals aren’t bogged down by long arduous processes when it comes to filing their tax return as the technology does a lot of the heavy lifting.
In addition, tax technology can be personalised to suit an individual based on their industry, job role or salary band. To look at a specific example, if an individual is a content creator,
the technology will suggest areas where the individual can claim. This may include their work phone, video-production equipment, software, working from home and travel. For each individual’s circumstances, the technology can be personalised to ensure the best possible outcome, all while being sleek and efficient.
When it comes to those who earn an income outside of the UK such as through owning a property and needing to disclose gains, software tools can be taught to ask the correct questions so that the process of calculating the amount of tax due to HMRC can accurately be determined.
By using technology from companies that understand the tax system, and have the relevant experience, individuals can do returns in a seamless, cost-effective manner. These systems allow individuals to submit a return to achieve the most desirable outcome based on their specific circumstances. In addition, this technology also includes updates to the system to match changes HMRC may make.
As a result, tax is not only streamlined, but those filing can be certain that they are neither under, running the risk of fines, nor overpaying. In addition, technology removes the need for people to either hire an accountant, or try and understand what can be a complicated system by themselves.
3 reasons why the Middle East is emerging as a global financial powerhouse
by: Hiba Chamas, Head of Business Development, Americas and MENA, RTGS.global
- Hiba Chamas
The Middle East a decade ago looks very different to the Middle East now – oil prices dominated the headlines and the region’s financial story rarely ventured beyond commodity markets. Fast forward to today and you’ll find a dramatically different landscape in which fintech hubs across the region buzz with innovation and global investors queue up to be part of a growing economy.
With one of the world's youngest and most digitally-savvy populations, the region's predominantly mobile-first consumer base is driving unprecedented demand for innovative financial services. As someone who has worked extensively across the Middle East's financial sector, it is exciting to be witnessing a transformation which has gathered pace in recent years.
The region is rapidly emerging as a hub for global finance, propelled by three powerful forces that are reshaping its economic landscape.
Beyond the black gold
The most significant shift is the strategic pivot from oil-dependent economies towards knowledge-based financial services.
Having personally worked with governments across the region – including Jordan and Lebanon in 2015 – I've witnessed firsthand how this transformation is unfolding. As a consultant tasked with developing the knowledge economy sector in these countries, I watched as
nations like the UAE and Saudi Arabia led the change, with others quickly following suit.
This diversification isn't just about reducing oil dependency – it's also about creating sustainable job opportunities and boosting GDP through innovation in financial services. The transformation is particularly visible in Dubai and Riyadh, where investment in human capital and technology is creating vibrant financial ecosystems that are attracting global talent and investment.
What makes this shift particularly remarkable is the speed and scale of implementation. Countries are establishing specialised economic zones and financial districts complete with state-of-the-art infrastructure and attractive tax incentives. These hubs are becoming magnets for international financial institutions, investment firms and fintech companies.
The numbers are already telling their own story. Non-oil GDP is surging across the region, with financial services leading the charge. Oil may have built the foundations but it’s finance that’s shaping the region’s future.
The
digital revolution
The COVID-19 pandemic served as a somewhat unexpected catalyst for digital transformation across the Middle East.
Over the past few years, we’ve witnessed an unprecedented acceleration in the adoption of breakthrough technologies – blockchain, artificial intelligence and machine learning are no longer buzzwords but essential tools which are reshaping the financial landscape.
What's particularly exciting is how this technology is being deployed to enhance customer experiences while simultaneously strengthening risk management and compliance frameworks. For example, the rise of open banking in the region has been a game-changer, creating new opportunities for data sharing and innovative financial services. This has created a ripple effect which has driven the advance of technology across the entire Middle Eastern financial sector.
The region's commitment to digital transformation extends far beyond basic digitisation. We're seeing the emergence of sophisticated digital payment systems, virtual banks and AI-powered financial advisory services. Local banks and financial institutions are investing heavily in cloud computing and cybersecurity infrastructure, creating resilient digital ecosystems that can support the next generation of financial services. The integration of blockchain technology is particularly noteworthy, with several countries developing national blockchain strategies to revolutionise everything from cross-border payments to digital identity verification.
Creating an enabling environment through innovative regulation
Perhaps most crucial to this transformation is the region's approach to regulatory frameworks. Middle Eastern countries are implementing fintech-friendly regulations that strike an impressive balance between innovation and stability.
I've seen the impact of regulatory sandboxes firsthand. From the Central Bank of Bahrain's pioneering initiative to the Central Bank of Jordan's fintech sandbox, these environments are
crucial in fostering experimentation while protecting the broader financial ecosystem.
This regulatory innovation is helping to attract significant investment through both private and government initiatives.
The region now boasts several worldclass accelerators and incubators that are nurturing the next generation of financial innovation. The DIFC FinTech Hive in Dubai, for instance, has become a powerhouse for startups, providing essential support through training, funding and mentorship. Similarly, the Jordan Innovation Fintech Incubator (JOIN Fincubator) is playing a crucial role in enhancing the competitiveness of the country’s fintech sector.
These initiatives are actually more than incubators – they are creating collaborative spaces where ideas can flourish, and innovation can thrive. Serving as crucial support systems for companies looking to establish themselves in the region, these schemes provide everything enterprises need, from technical training to funding opportunities.
The new capital of capital?
The Middle East's transformation into a global financial hub isn't just about building infrastructure or implementing new technologies – it's about creating an ecosystem where innovation, regulation, and economic growth work in harmony.
The foundations have been made to support the region’s towering ambitions. As someone who has been able to play a part in this journey, I can attest to the remarkable progress being made and the exciting opportunities that lie ahead.
Safety in numbers: Collaboration is key in the fight against fraud
Modern fraud operations are well-equipped and well-informed. They can be financially devastating for victims, and the risks to banks and digital platforms are only growing. Alongside costly payouts, institutions risk reputational damage from failing to identify and prevent fraudulent activity.
Ted Datta, Senior Director, Financial Crime Industry Practice at Moody’s
However, there are also more means at organizations’ disposal to combat fraud. Along with technological improvements, greater collaboration between fraud teams can be a significant asset in mitigating exponentially growing risks.
New technologies, new risks
Organized criminals now have a wide array of tools at their disposal to defraud victims. Sextortion scams have become increasingly prevalent in recent years and tend to be carried out on social media. Perpetrators use fake profiles to obtain explicit content from victims before demanding money from victims threatened with exposure. In 2023, the National Centre for Missing and Exploited Children (NCMEC) discovered that cases in the U.S. had more than doubled since the previous year, with 26,718 cases reported. The threat isn’t limited to one country, either. While most cases remain concentrated in the U.S. (51%) and India (29%), Moody’s Grid screening database reveals that many
more countries registered risk events.
The danger of such scams to victims is immense. Many are teenagers, and from 2021 – 2023 the FBI linked sextortion to at least 20 suicides. Sextortion is another cyber risk to take seriously if institutions are to help combat this threat and avoid reputational risks. Once again, however, the scale of the problem may leave even the best-equipped financial institutions uncertain of where to start.
Old and trusted defenses
Criminals adapt quickly to technological change, and institutions must do the same. Among the oldest and most effective means of fraud prevention is collaboration between organizations. Financial institutions have long shared information to gain a more complete picture from which to work when identifying suspicious activity. Modern technology allows them to do so faster than ever before and with a wider variety of organizations.
When targeting sextortion, for example, organizations can leverage large datasets to help determine whether certain behaviors are different from those typically expected from a child’s bank account. Advanced collaboration tools facilitating real-time data sharing between institutions can vastly improve the ability of fraud teams to detect anomalies.
As discussed, many modern scams originate on social media. Real-time data sharing through programs like Meta’s Fraud Intelligence Reciprocal Exchange (FIRE) allows banks to rapidly share information with the social media giant on prevalent scams. The recent expansion of this scheme to allow UK banks to share information directly demonstrates that as fraudsters become ever more interconnected and well-informed, institutions are doing the same.
Similar groups, such as the Data and Technology for Compliance Alliance (DT4C), bring together a coalition of data and technology firms to help financial
institutions to combat fraud, money laundering, and sanctions evasion. DT4C advocates for the access to the highest quality data available. Using a combination of real-time, extensive primary data, and the right technology, at-risk institutions can establish a 24/7 risk assessment and security operation.
Financial institutions must look beyond their own doorsteps. Collaboration between financial institutions and other non-financial firms, such as social media companies, significantly improves the likelihood of catching fraud and stopping it in its tracks. Initiatives to help increase data-sharing capabilities and educate customers on how to spot fraud have seen great success in helping limit the dangers posed by ever-evolving threats.
The greater the number of organizations equipped with the latest fraud prevention solutions, the stronger this network becomes, and the lower the threat of fraud drastically impacting their customer’s lives.
How AI can revolutionise procurement workflows
Economic pressures, supply chain disruptions, regulatory changes and globalisation can all make procurement a challenge for many small and mid-sized businesses. And though it is a crucial function, procurement often suffers from over-complicated processes and outdated workflows that diminish efficiency.
Procurement and finance teams are responsible for managing multiple tasks, including supplier sourcing, negotiating terms, monitoring requests, overseeing approvals, and handling invoices and payments. As companies grow, these manual tasks increase in complexity, consuming more time and risking errors that can lead to inconsistencies, financial losses or compliance issues. Smaller companies face an added difficulty: most procurement tools are designed for large corporations, leaving small and mid-sized firms without adequate solutions.
However, with AI and automation, mid-market companies can build collaborative procurement workflows that are suited to a decentralised contract management approach. This, in turn, will help them drive efficiencies, control spending, and minimise risks. Below, I'll outline the best strategies for adapting and utilising these technologies.
The procurement problem
As businesses scale, so do their procurement needs, bringing added complexity. Manual workflows become unsustainable, demanding more time and creating inefficiencies. According to a 2024 Amazon Business report, nearly half of respondents noted efficiency and complexity as their chief procurement challenges. Ninety-five percent saw potential for optimisation in their processes.
On top of this, many businesses suffer due to an inefficient, passive approach to spend management. With Spendesk research showing the average small and medium-sized business (SMB) has nine times more suppliers than it has employees – yet only using one-quarter of these suppliers – companies need to embrace active spend management processes to reduce waste.
Recognising the need to optimise workflows, companies are exploring AI-driven solutions to increase efficiency. The
Amazon Business study reports that 80% of respondents are willing to adopt AI within two years. But this adoption requires a fundamental understanding of workflows and where AI can add value to streamline procurement effectively.
Where AI and automation can revolutionise
workflows
Take invoice processing as an example. Businesses handle numerous invoices daily in both digital and physical formats; requiring tracking, data extraction, validation and approval before payments are made. Invoices often don’t go directly to the finance department, creating additional steps and potential errors. AI can simplify these workflows by capturing data from invoices, regardless of format, and inputting directly into central systems, reducing errors and saving time.
AI can also manage cross-functional approval workflows, automating controls and notifications to ensure the right people approve each invoice. Once approval
is granted, finance teams are alerted to initiate payment, with all data securely recorded in the organisation’s ERP.
Beyond invoices, AI enhances contract management, especially where large amounts of unstructured data, such as SLAs (service level agreements), renewal dates, and payment terms, need extraction. This critical information is stored centrally, and automated reminders can be set to ensure on-time payments and preemptively renegotiate contracts.
Additionally, AI-enabled virtual assistants can create pre-filled purchase orders and invoices, providing dynamic guidance for procurement requests. This saves time for staff who rarely use these tools and reduces internal inquiries for finance teams.
When it comes to adopting an active approach to spend management, AI can help too: from rationalising processes like onboarding and contract renewals to identifying dormant suppliers – which
Spendesk's research estimates cost SMBs nearly £1bn annually – and eliminating them from their books.
Benefits beyond efficiency
These AI-driven improvements drive efficiencies – which 36% of businesses questioned by Amazon said they wanted from procurement technologies. But through automated data analysis, companies can also detect spending trends and derive insights to further save costs and improve cash flow forecasts. Reports that would take days to compile manually can be constructed in minutes.
Streamlining procurement workflows also allows employees to move away from repetitive tasks, freeing up time for strategic work. For procurement teams, reduced manual workloads mean focusing on higher value transactions, leading to greater job satisfaction and performance. Therefore, investment in AI and automation can play a big part in recruitment and staff retention.
Improving procurement workflows is essential for small and mid-sized businesses that need to remain agile and competitive in a tough economy. By increasing efficiency, these businesses can save both time and money while reducing compliance risks. A streamlined procurement process also gives finance and procurement teams the capacity to tackle strategic, high-value tasks that drive better business outcomes. When done right, procurement doesn’t have to be a challenge; it can become a foundation for organisational success.
Julien Chriqui, Group Product Manager, Procurement at Spendesk
How sovereign wealth funds can finance a just transition to a low-carbon economy
Sovereign Wealth Funds (SWFs) are emerging as critical players in the global transition to a low-carbon economy. Their huge capital reserves twinned with their long-term investment horizons mean that they are uniquely well placed to invest in sustainable technologies, industries, and infrastructure projects worldwide, affecting the world for the better.
Geopolitics and realignments
Conflicts around the world, especially affecting resource-rich areas and global transport infrastructure, have disrupted
global markets and logistics. These conflicts have led to increased volatility in energy markets, prompting many SWFs to reassess their exposure to fossil fuels.
The Saudi Public Investment Fund has accelerated its investments in renewable energy projects, aiming to diversify its portfolio away from oil dependency. This shift is in line with Saudi Arabia's broader Vision 2030 initiative, the nation’s ambitious blueprint which aims to diversify the Saudi economy by investing in sustainable technologies and reducing reliance on hydrocarbons.
Similarly, the Qatar Investment Authority has redirected efforts toward sustainable infrastructure and renewable energy initiatives, recognizing the vulnerabilities of global energy supply chains amid heightened geopolitical uncertainties. These developments underscore a growing emphasis on energy security and sustainability within SWF portfolios globally.
SWFs Take Centre Stage at COP 29
SWFs are investment powerhouses. This was spotlighted at the COP 29, held in Baku, Azerbaijan.
For the first time, the International Forum of Sovereign Wealth Funds (IFSWF) convened a high-level roundtable addressing the contribution of SWFs to global sustainability goals. The session, titled “The Role of Sovereign Wealth Funds in Financing the Energy Transition,” highlighted their capacity to mobilize capital for climate action, and underscored the strategic importance of these funds in sustainable finance at a UN level.
Speakers, including the CEO of the State Oil Fund of Azerbaijan, emphasized SWFs responsibility to lead in addressing climate challenges through informed, long-term investment strategies. The session, titled "The Role of Sovereign Wealth Funds in Financing the Energy Transition," brought together key global leaders, including to discuss how SWFs can mobilize capital for sustainable development.
Key participants included prominent global leaders such as Bo Li, Deputy Managing Director of the International Monetary Fund, who advocated for coordinated efforts between SWFs and financial institutions to address climate challenges. Guo Xiangjun of the China Investment Corporation emphasized the growing commitment of one of the world’s largest SWFs to green investments, while Prasad Gadkari of India’s National Investment and Infrastructure Fund underscored the critical role of infrastructure in achieving sustainability targets.
The participation of these leaders signifies a collective recognition of SWFs as key players in financing the transition to a low-carbon economy, showcasing their potential to drive substantial change through strategic investments that align financial performance with environmental responsibility.
Anne Simpson, Global Head of Sustainability at Franklin Templeton, who has extensive experience in sustainable
investment through her leadership in initiatives like Climate Action 100+, moderated the discussion, and highlighted the importance of aligning long -term investment strategies with environmental objectives.
This significant recognition at COP29 marked a significant turning point in recognizing SWFs as essential contributors to the global climate agenda, as well as their potential to shape a sustainable future through collaborative and responsible investment practices.
Sustainable Bonds and Capital Markets
The sustainable bond market has seen remarkable recent growth, expanding to a valuation of approximately $2.5 trillion as of 2023, with a compound annual growth rate of 43% from 2016 to 2023. This growth reflects a broader shift toward financing environmentally beneficial projects.
SWFs have been significant participants in this market. The Norwegian Government Pension Fund Global has invested heavily in green bonds, aligning its portfolio with UNSDGs. In 2021, the fund allocated approximately $1.5 billion to green bonds, demonstrating its commitment to sustainable investments. The Abu Dhabi Investment Authority has also engaged in green bond investments, contributing to projects that support renewable energy and sustainable infrastructure development.
The future for SWFs and the low-carbon economy
SWFs are poised to play a crucial role in financing the transition to a low-carbon economy. Their ability to mobilize significant capital for large-scale renewable energy projects can drive substantial progress in global sustainability efforts.
The Singapore Investment Corporation, for instance, has committed to investing in clean energy technologies and
sustainable infrastructure, with a focus on solar and wind energy projects across Asia.
Additionally, the integration of blended finance models — where public and private capital are combined to fund sustainable projects — can enhance the effectiveness of SWF investments. By leveraging their capital and financial clout, SWFs can catalyse significant funding from private investors through instilling trust.
With their vast resources and influence, and as their strategies further evolve and react to the world, SWFs are well-positioned to drive the low-carbon transition and shape the trajectory of sustainable finance into the future.
