Global Banking & Finance Review Issue 29 - Business & Finance Magazine

Issue 29

RPA: It's Time CFOs Take The Plunge

Harel Tayeb CEO, Kryon

www.globalbankingandfinance.com

EDITORS LETTER

FROM THE Chairman and CEO Varun Sash

editor

Editor Wanda Rich email: wrich@gbafmag.com Web Development and Maintenance Anand Giri

Dear Readers’

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I am pleased to present Issue 29 of Global Banking & Finance Review. For those of you that are reading us for the first time, welcome. This issue is filled with exclusive interviews and insights from financial leaders across the globe.

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Featured on the front cover is Harel Tayeb, CEO of Kryon, a leading innovator in enterprise automation solutions. In this article, Harel Tayeb, CEO of Kryon, discusses why finance teams need to take the plunge with RPA in a post-pandemic economy.

Finance is engulfed by hugely complex processes, and bots can automate a huge and increasing number of manual tasks. Bots' ability to save time and money while boosting accuracy and compliance is unparalleled. Many CFOs are yet to embed the power of RPA in their departments, but they are undoubtedly curious about its benefits. Tayeb makes the case for investing in RPA, arguing that the hype around RPA is very real.

Investors are willing to pay more for reliable and secure cooperation when they see the right level of management in their bank. A striking example of such a bank in Ukraine is Megabank, Chairman of the Management board, Oleksii Iatsenko provides a look at how it attracts international investments.

We strive to capture the latest news about the world's economy, financial events, and banking game changers from prominent leaders in the industry and public viewpoints with an intention to serve a holistic outlook. We have gone that extra mile to ensure we give you the best from the world of finance.

Send me your thoughts on how I can continue to improve and what you’d like to see in the future.

Enjoy!

Wanda Rich Editor

®

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Issue 29 | 03

CONTENTS

BANKING

10

How automation can drive ESG in banking and financial services Gavin Mee, Managing Director Northern Europe, UiPath

It’s time to rise above commoditisation and become the barista of banking

12

Neil Murphy, Global VP, ABBYY

BUSINESS

16

The cost of not evolving Kabir Ahmed Shakir, Chief Financial Officer, Tata Communications

18

The democratisation of ESG data is key to helping funds of all sizes measure their impact Kelly Perry, ESG Director, Edison Group

20

Hybrid Working – More Change, or More of The Same?

Gilmar Wendt, Principal, GW+Co

BUSINESS

30

Remote working: poor cyber hygiene widespread in financial services Nic Sarginson, Principal Solutions Engineer, Yubico

32

The difference between adaptability and agility Matt Parker, CEO, Babble

34

Reinforce employee wellbeing with a personal workspace set for a hybrid future Lars Lauridsen, Senior Global Product Manager, Logitech

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CONTENTS

FINANCE

38

People don’t like to be told no when it comes to finance Scott Donnelly, Director of Board, CapitalBox

40 Top tips for PSPs looking to enter Asia

Ganesh Iyer, Chief Marketing and Strategy Officer, IPC

42

The transformation of payments during the pandemic

TRADING

44 Smart trading: how to manage risk and maximise profit in uncertain economic times Dáire Ferguson, CEO, AvaTrade

46 Return to work: What will Trading Floors look like?

Ganesh Iyer, Chief Marketing and Strategy Officer, IPC

Mike Chambers, Access PaySuite

GLOBAL BANKING & FINANCE REVIEW RECOGNIZES SANTANDER AS THE BEST DIGITAL BANK IN CHILE

48

Issue 29 | 05

CONTENTS

22

MEGABANK: 14 YEARS OF INTERNATIONAL COOPERATION WHAT ATTRACTS INVESTORS TO THE UKRAINIAN BANK Oleksii Iatsenko Chairman of the Management board of the MEGABANK JSC, Ukraine

MONGOLIA SHINES AS UPCOMING GLOBAL INVESTMENT HOT SPOT BDSec Mongolia's Largest Securities Company, Brings Mongolia's Leading Companies to the International Investors Dayanbilguun Danzan, CEO, BDSec JSC

06 | Issue 29

14

CONTENTS

Cover Story ...

26 RPA: THE TRUTH BEHIND THE HYPE Harel Tayeb, CEO, Kryon In this article, Harel Tayeb, CEO of Kryon, discusses why finance teams need to take the plunge with RPA in a postpandemic economy. Finance is engulfed by hugely complex processes, and bots can automate a huge and increasing number of manual tasks. Bots' ability to save time and money while boosting accuracy and compliance is unparalleled. Many CFOs are yet to embed the power of RPA in their departments, but they are undoubtedly curious about its benefits. Tayeb makes the case for investing in RPA, arguing that the hype around RPA is very real.

Issue 29 | 07

Because you motivated us today we are recognized as t

Banco Santander Chile: Infórmese sobre la garantía estatal de los depósitos en su banco o en www.cmfchile.cl. Publicidad valida solo para Chile.

Tu banco

s to grow as a digital bank, the Best Digital Bank in Chile.

SANTANDER, CHILE’S BEST DIGITAL BANK We celebrate to have been chosen by Global Banking & Finance, as the Best Digital Bank and the Fastest Growing Digital Bank in Chile in 2020.

Thank you for inspiring us to improve every day.

BANKING

How automation can drive ESG in banking and financial services

By Gavin Mee, Managing Director Northern Europe at UiPath explains how software robots can support environmental, social and governance (ESG) initiatives in the banking and finance sector.

R e gu l at o r y b o d ie s and sharehol ders a l i ke a re r amp in g u p the pressure on f i nan c ia l in s t it u t ions to pr i or i t i s e e n v iro n me ntal , soci al a nd g ove r n an c e (E SG) i ni ti ati ves.

W i t h t he g ro win g impor tance of c o r p or at e s o c ia l re s ponsi bi l i ty, ESG pro g r amme s c an’ t purel y be a p ub l i c re la t io n s e xerci se—true c o m m i t me n t a n d c o mpl i ance i s now c r uc i a l t o s u c c e s s .

The adoption of such initiatives is growing, with 80 per cent of banks having already made commitments. Several commercial banks, for example, have recently offered Britvic a sustainabilitylinked credit facility of up to £400 million dependent on whether the company can meet various ESG targets. However, these programmes aren’t often simple. To ensure ESG initiatives are successful, a huge amount of data has to be collected, processed, and reported on.

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Take banks committed to green financing, for example. They likely will need to track the clients’ field operations, carbon emissions, supply chain activities, and a score of other variables. Likewise, a bank that wanted to track its energy consumption would require intensive data collection and analysis across hundreds of sub-entities and locations. This is an enormous, errorprone undertaking and it is here that software robots can help.

What is a software robot?

Think of a software robot as a digital assistant — an extra pair of hands to help out with repetitive and data-intensive tasks. Using Robotic Process Automation (RPA) and complementary technologies such as Artificial Intelligence (AI), these robots can operate a computer just as a human would, only virtually.

Once taught the process, these robots can read, extract and process data as necessary, more quickly and accurately than a human could.

Organisations around the world are already using this automation technology to lighten administrative

work loads and as a result are giving their employees more time in the day to focus on the valueadded activities that require human ingenuity and skill.

How can software robots help with ESG? Increasingly, the banking and finance sector is finding software robots are becoming an integral part of ESG success. The technology’s ability to comb through huge volumes of data, quickly and accurately, makes it the perfect tool to support ESG initiatives and compliance in a number of ways.

For example, software robots are often deployed into reporting processes.

Let’s take the growing interest in green mortgages as an example. Increasingly, financial institutions are offering lower rates of interest or additional principle for loans on green properties.

This requires additional checks and documentation to be processed to ensure the property meets the lender’s specifications. Software robots can sort through this information and report back to human colleagues as to whether the property meets the required green standards.

BANKING

In other institutions, software robots are pulling together reports to help shape investment strategies in line with ESG policies. Robots can pull information from prospectuses, quarterly and annual reports, third party analysis and media reports, and consolidate the required information into the necessary format. This makes it easier for portfolio managers to make responsible, purpose-driven investment decision that support their ESG initiatives.

However, its application also stretches beyond reporting, the technology can also be used to enact change. For example, one business process management firm that provides solutions to the banking and finance sector has used software robots to digitalise loan documents and to manage customer processes. This has bolstered its ESG initiatives by reducing the reliance on paper, thus limiting physical waste. Furthermore, a Turkish bank is using the technology to process requests to postpone loan repayments for customers impacted by COVID-19 in line with its social responsibility initiatives.

Additionally, in order for ESG programmes to be successful, auditing is crucial. Once again

automation can help. Auditing teams already have a lot on their plates without ESG being thrown into the mix too and so software robots can assist in much of the sampling, monitoring, and assessment activities that drive a successful ESG auditing program.

The application of automation in ESG initiatives is vast and often varies from business to business depending on their specific goals. No-matter the ins and outs, it’s clear that corporate social responsibility is viewed by the banking industry and its customers with increased importance, and with that firms will only be expected to focus more effort on ESG programmes as time goes on.

Gavin Mee Managing Director Northern Europe UiPath

Human colleagues can’t pick up all this work alone and ideally should remain focused on those tasks that require decision making and strategy.

Software robots, however, are the perfect candidates to assist with the data-heavy processes that come with ESG initiatives. Those organisations that deploy automation now to address their ESG needs will be ready to respond to new regulations and standards as they emerge

Issue 29 | 11

BANKING

It’s time to rise above commoditisation and become the barista of banking onsumers have accelerated their adoption of digital channels more over the last year than any other time, with banking leading the pack. Fintech companies and challenger banks are not sleeping on this innovation wave and are siphoning off a huge share of banking revenue which has led to traditional banks taking the back seat.

These challenger banks have the advantage of starting with a vision and no legacy and have become experts at creating frictionless, seamless customer experiences. They also know the importance of keeping the customer at the centre of every business decision, and as a result, banking is becoming a commodity– which is why established banks must build on their brands and their position of trust.

So, how can these traditional banks work to sustain great customer experience and withstand the forces of becoming a basic commodity?

Credit cards, current accounts and coffee It’s time to rise above commoditisation and become the barista of banking 2 Neil Murphy, Global VP at ABBYY Today’s consumers live fast-paced lives and their demands in banking reflect this. They want banks to provide them with a digital experience that makes their lives easier – helping to make decisions faster and achieve more from the day. But while customers are becoming more digitally savvy, many still place importance on human contact at their local branch or with

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their bank advisor by phone. YouGov found that almost a quarter of Brits still manage their money by popping into their local bank branch. So, banks will need to master the balancing act between digitalisation and personal customer service.

This is why the Dutch bank ING’s North American arm, Capital One and Lloyds Bank in Manchester transformed their banks into café-style branches.

Discussing your current account over a coffee might appear strange, but more banks are creating spaces where customers will actually want to speak to bankers. In fact, the Dutch Bank created several cafes in the U.S. where “financial baristas” would serve coffee as they chat with visitors about their financial needs and explain the financial institution’s capabilities.

In an increasingly saturated industry, it’s no longer about the products and services banks sell to consumers, it about creating a unique experience within them, while improving any poor customer experiences that are rooted in processes and technology.

Banks should work to understand what success looks like from a customer perspective and then work backwards to understand current processes and the holistic experience of everyone who is interacting with your product, service, brand, and company.

360-degree view to enhance CX As traditional services are becoming a commodity, having the better customer experience can make the

difference. And even if you provide an exceptional service, if the journey to use that service isn’t great, customers will leave, and your customer acquisition costs will rise. This is why having a smooth process is key for customer retention, onboarding and overall satisfaction.

A common approach to streamlining the journey is to collaborate with team members and specialists who work within your process – for banking, this can include customer acquisition staff, customer service representatives, and anyone who regularly interacts with content-centric tasks – and look for areas of improvement. Work with these team members and allow them to share input and guide you to achieve your goals.

It’s also important to incorporate technology that can give you an unbiased look into how processes are working. Process intelligence gives banks the tools to analyse less structured processes, identify opportunities for improvement, and increase both the speed and accuracy of executing processes.

When banks use advanced platforms that both understand content (including unstructured content such as e-mails, application forms or pay slips) and detect behavioural changes (whether it is customer behaviour or operational behaviour), they can identify factors that delay customer service response times, service delivery and even product innovation, and target them precisely here.

BANKING

Innovate to customer needs The technology implemented should augment and assist people, not replace them. The key to delivering a great customer experience is human intelligence. By knowing where process bottlenecks or deviations are occurring, you can revise steps or retrain staff to ensure optimal outcomes occur.

Similarly, if certain employees can complete tasks at a higher success rate than others, you want to know how they’re doing it so it can be duplicated across the team for overall improved workforce productivity. This is where task mining is gaining momentum.

Task mining allows businesses to understand how employees complete tasks by recording user interactions, while keeping privacy in mind. It shares similarities with process mining, but it leverages user interaction data instead of business metrics and log files to analyse processes. The data you get from your customers can be incredibly effective in building customer experiences. Leveraging this data in a useful way can lead to big gains for banks and help make insightful and impactful decisions.

sustain great customer experience and withstand the forces of becoming a basic commodity.

Cost savings and improved efficiencies certainly drive banks to discourage their customers to visit their branches, leading to most banks becoming faceless which automatically drives the trust level down. With the right digital intelligence tools, banks and financial service providers can obtain a complete overview of their processes and improve the customer journey – only then can they build meaningful relationships leading to business success.

Neil Murphy Global VP ABBYY

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Avoid the commoditisation trap In order to meet today’s requirements of the digital bank customer and to keep up with large technology companies that are becoming more and more established in the financial sector, the banks must adopt solutions with digital intelligence,

Issue 29 | 13

MONGOLIA SHINES AS UPCOMING GLOBAL INVESTMENT HOT SPOT BDSEC, MONGOLIA'S LARGEST SECURITIES COMPANY, BRINGS MONGOLIA’S LEADING COMPANIES TO THE INTERNATIONAL INVESTORS

Mongolia is to open the world's eye to many of its opportunities as a place to invest "Vision-2050"-long term development plan of Mongolia heralds a new age for Mongolia’s capital market, paving the way for greater foreign investment within the country’s dominant mining industry and allowing for greater diversification of the economy.

As in many emerging markets with vast natural resources, support for the mining industry is mixed. Mongolia’s government and its citizens support the country’s growth, but remain wary of greater foreign influence and perceived external control over Mongolia’s mineral resources. However, as seen in Mongolia’s past, the country demonstrates a consistent willingness to work alongside foreign investors, and Mongolia’s lawmakers continue to evidence an immense capacity for adaptation and development, with an eye towards the country’s undoubtedly promising future. All sectors of the Mongolian economy are open to FDI, including raw materials, livestock and many other sectors with high development potential (mining, food processing, telecommunications, tourism).

With its 30 years of experience in the industry, BDSec offers new investment opportunities to the market

As we finally resurges from pandemic, it is time to consider where the best opportunities arises for investors.

Dayanbilguun Danzan CEO BDSec JSC

Since it was founded, BDSec has played a significant role in development of capital market through educating public about capital market and introducing new products, including the first ever fixed income, IPOs, FPOs and the cross -listing. BDSec also initiated and started "Green IPO" movement that aims to support environment friendly companies to raise capital on domestic market and with necessary working capital.

Now BDSec is breaking through international financial market with its extensive network and experienced team to raise capital necessary for Mongolia's giant companies.

The company has enabled investing in Mongolia available to every foreign investors through its online services and its dedicated team is ready to help everyone to unleash More information: info@bdsec.mn the possibilities.

MARCH TO APRIL 2020

BDSec JSC welcomes foreign investors to attractive offerings Two of Top 100 companies of Mongolia, clients of BDSec, are becoming big fishes in capital market by entering into the market, while other client is already recognized in the international capital market through cross-listing in TSX and MSE done

by BDSec. TOP 100 Enterprises are ranked by their contribution to the social and economic development of the country.

Erdenes Tavantolgoi JSC, the largest coking coal producer, ranked at 2nd; Khan bank, the nation's leading bank, ranked at 4th.

ABUNDANT RESERVES OF PREMIUM COKING COAL

Mongolia's largest coking coal exporter with an abundant world class coking coal reserve of 6.4 billion tons, Erdenes TavanTolgoi JSC is aiming to raise $700 million through a corporate bond issue with series of tranches to finance infrastructure and mine development projects to become one of the TOP 10 mining company in the world.

The first tranche of bonds was offered for sale in April 2021, with a coupon rate of 6.8%. It raised successfully $200 million.

The amendments to the Banking Law of Mongolia require five domestic systemically important banks to become public companies through IPOs in the stock market by June 2022. In addition, all commercial banks are required to reduce shareholder concentration by end-2023. It will improve transparency and strengthen the banking system's corporate governance in the medium-to-longer term, LEADING BANK IN MONGOLIA BRINGING SIMPLE & ACCESSIBLE BANKING SOLUTIONS.

Since 1991, Khan Bank distinguishes itself by its success in the banking industry for last 30 years. The Bank has been expanding to become a financially strong national leader among Mongolian commercial banks with 2.6 million customers or n estimated 80% of all Mongolian households.

The Bank has also proven track record of strong financial results.

Since its privatization in 2003, total asset has increased by 137 times, equity has increased by 156 times.

The Bank is audited by internationally recognized audit firms and affirmed at “B” with a stable outlook by Fitch rating, and "B3" by Moody's.

K

HIGH-GRADE GOLD MINING

Erdene Resource Development Corporation is a Canada based resource exploration company to develop projects, acquire, and explore in Mongolia for high grade precious and base metal. The company is aiming to advance "Bayan Khundii" gold project to production stage and expand high grade precious and base metal resources with a financing by issuing additional shares with worth of US$ 5 million. Project IRR : 42.5%(after-tax), payback period 1.92 years. The Company is cross listed on Mongolian Stock Exchange /MSE: ERDN/ and the Toronto Stock Exchange /TSX: ERD/.

BEST INVESTMENT BANKING

Further information about SECURITIES investment opportunities: BROKERAGE www.bdsec.mn, email: icd@bdsec.mn

BEST

BUSINESS

The cost of not evolving The global business landscape has been shifting for some time, but last year it accelerated at an unpredictable pace. Today, CFOs have a different role beyond the financial health of the organisation. We are catalysts for change. The CFO is a trusted advisor to the CEO helping in steering business transformation – to help shape their organisation for the future.

One of the biggest challenges is how can you predict and prepare for the future when you don’t know what is around the bend? For example, if you are driving a car and approach a bend at full speed you will crash, but if you drive too slow, you will be overtaken.

So, what do you do if you don’t know how to navigate the road ahead at the right speed and take the right approach?

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Be a future thinker to be ahead The recent times have been unprecedented. Standard solutions and the way we look at performance have not always been ideal. But there are lessons we can learn from.

So, who were the people that made these digital transformation investment decisions five years ago?

Without all the facts and figures?

Without knowing what would happen?

There’s a great example I could give – Pokémon Go, the digital game, became an overnight phenomenon in 2016. I actually had people walking through my front garden to capture these virtual creatures on their phones

through the app. The valuation of Nintendo[1], the franchise owner of Pokémon, went up by almost $7.5bn in a short span of 48 hours. Despite the fact that Niantic, the American software company created the game and launched it successfully. And the game become a global phenomenon due to the cloud infrastructure Niantic already had in place – all thanks to the future-thinking they made years ago.

Ultimately, it is the CFO’s decision to invest for this unknown turn in the bend. They must develop the knack for steering and accelerating at just the right speed, in blind yet calculated anticipation of what’s coming. The CFO is making decisions today for what can transform a business and not just make it more profitable five years from now but also relevant and future-proof.

BUSINESS

Be a catalyst – all innovation is now digital

Be agile and adapt

I now see my peers in the industry evolve their enterprises from working on digital projects to initiating digital programs and having a full-fledged digital adoption roadmap encompassing all parts of the organisation. All innovation is now digital. Such as the hotel I stayed at recently, where everything in the room was Wi-Fi enabled and controlled by a tablet – the lights, AC, ceiling fans, room service, and more. I can imagine if manufacturers of physical switches do not evolve, their entire business will be at risk. I won’t be wrong in saying that as a company, we live or die by our digital evolution.

Today there’s often less time and more data muddying the waters. But big decisions are still needed from CFOs. The answer is to fail fast.

The CFO of a business should be trusted with leading the way. You only have to look at the four quadrants of CFOs we have today – Stewards, Operators, Strategists, and Catalysts. It’s this latter quadrant where the crème de la crème of the top-performing Fortune 500 companies are.

They’re making the decisions that are shaping the future – and the businesses they help steer are reaping the rewards.

Be disruptive in digital transformation

Not all trends are successful – who remembers snail-trail beauty treatments? – but participating in the ones that are a success allows for huge profits, if you’re prepared to fail fast by making a few wrong turns along the way.

It’s all mostly about agility and the right KPIs. The product lifecycle is shorter, but the mark-ups are potentially greater. CFOs need to be let loose to constantly adapt.

Be ‘Digital-First’ with a digital ecosystem enabler Organisations who act as a digital ecosystem enabler provide the answer for CFOs. Tata Communications can help you create the ecosystem for borderless growth and address your challenges – in whatever form they lie. But you need to acknowledge that there’s a bend coming and be prepared. We can help you make this happen.

Having a solid brand is still important today. It should speak on your behalf and offer your brand values in a reliable and consistent manner. Today, a competitor brand won’t disrupt your business by offering a 30% price cut – it will be because they have a fundamentally different go-to-market model. There is a CFO behind that. He or she has helped their company to lay down forward-thinking plans. And more often than not, it is based on digital transformation.

Organisations need a digital-first infrastructure in place. And CFOs, in my view, need to be able to spend a disproportionate amount of their investment budget on digital. You need to be prepared to fail faster. To write off certain projects so that you can reap the rewards of those that don’t.

Customers are crucial of course; they demand better products. You need to be online to deal with this – even if you don’t have an online presence, it still affects your business. Take third party rating sites such as Trip Advisor for example, where some customers are reviewing you – and other customers are listening and making decisions that affect your business based on what they read. Your online presence matters more than ever.

[1] https://reachmarkets.com.au/news/catch-em-all-how-nintendo-

You may have a great brand and customer-base, but you also need employees who will go the extra mile to evangelise on your behalf. Potential employees will now judge you on your digital transformation. It started with Bring Your Own Device, but now it’s extended to software and usability – the need to consume info where and when they want. CFOs need to help their organisations attract new talent who are demanding this high level of employee experience. They are making the choice to join you based on your digital infrastructure right now.

Future-facing CFOs need to make the decisions which will help their business evolve and be in the best place possible for whatever is ‘beyond the bend’.

investors-learned-about-dd-the-hard-way/

Kabir Ahmed Shakir Chief Financial Officer Tata Communications

Issue 29 | 17

BUSINESS

The democratisation of ESG data is key to helping funds of all sizes measure their impact Scrutiny of companies’ ESG credentials across sectors has amplified for a number of reasons over recent years, with focus on the ‘S’ of ESG accelerated by COVID-19 and on the ‘E’ by an increasing global awareness of the need to take urgent action in the face of the climate crisis.

As awareness has increased, so too has investment, and this trend is only set to continue; indeed, global ESG assets are on track to exceed $53 trillion by 2025.

However, whilst many firms voluntarily disclose ESG data, this is often unstandardised and is only readily available to a limited number of investors as it is scored through ratings agencies. Nations around the world are making pledges to net-zero targets, and the democratisation of ESG data will be key to ensuring that companies are held accountable to their sustainability initiatives.

Further regulation and education will be crucial in enabling a larger proportion of investors, both retail and institutional, to have access to the ESG data of stocks across markets.

New regulation A lack of standardisation means that companies present their ESG data in a whole host of different ways, and the use of different frameworks means that investors have to put large amounts of resources into establishing their own comparisons between companies.

However, many investors simply don’t have this time to spare, whether they be part of a large institutional asset manager or a smaller wealth management organisation. In addition, these investment houses often don’t have access to agency ratings, which imposes significant obstacles to the investment process.

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Regulation can ensure that the process of reporting ESG data is simplified and streamlined, removing some of the challenges that investors currently face when accessing these reports. Countries around the world are already beginning to adopt these measures – a prime example being the introduction of the mandatory SFDR disclosure framework in the EU. Not only do such stipulations ensure transparency about what data is required to be disclosed, but also the metrics by which it is gathered.

Equally, such regulation clarifies social and governance information that is hugely important to help investors of all sizes understand the impact of their wider portfolios outside of environmental concerns. Marketwide frameworks that establish clear criteria and measurement of this data will be crucial to ensuring fund managers are able to make fully informed investments into businesses that are sincerely committed to the wider ESG values they espouse.

Clearer reporting Standardising ESG data itself is one of many challenges around the democratisation of ESG data for institutional investors. Another element that needs to be addressed is ensuring that the reports themselves are appropriately thorough but also easily digestible. Regulated data will be of little use, even to institutional investors, if it is put into an overcomplicated context that is accessible only through organisations like rating agencies.

Documents that are consistent in format and are comprehensible and comparable across businesses can provide essential information for both

retail and institutional investors. This will be crucial to enable investors to make quicker and more informed decisions, and also for signalling the sincerity of a company’s commitment to ESG initiatives.

Recent research has found that greenwashing is the largest concern for investors with an interest in responsible investing, with 44% of respondents worried that ESG investments were not what they claimed to be. Investors across organisations of all sizes need to be able to hold businesses accountable to such data if global efforts to meet sustainability objectives are to be achieved.

New solutions It is clear that investor relations programmes need to be updated to work hand-in-hand with accessible ESG data. To meet this need, Edison has launched its ‘Edison ESG Edge’ reports. These freely available papers offer a thorough review of a company’s current ESG performance against highly stringent criteria and benchmark them in comparison to their peers. Each report focuses on forward-looking drivers, seeking to establish the business’ ESG future as well as its past.

Resources like these will be key to helping institutional and retail investors navigate the challenges of understanding the impact of their portfolios. Importantly, the reports are written following a standard, readable format to offer analysis of current ESG performance as well as a future outlook to the wider investment community. Data like this can help inform the strategies not only of investors but also the companies themselves.

BUSINESS

ESG education Investment managers for organisations of all sizes need to educate themselves in ESG matters quickly and thoroughly. Often, even institutional funds don’t have the resources to dedicate a team of staff to deciphering masses of unstandardised data. The increased transparency of regulated ESG frameworks can democratise information to ensure that capital is effectively distributed to companies that demonstrate proactive commitments to sustainability.

More importantly, a new approach to ESG reporting can ensure that as much focus is placed on the future intent of a company as on its past performance. Data drives the decision making of institutional funds, but it shouldn’t be the whole story.

Benchmarks and regulation to outline forward-looking ESG strategies should have as much weight in assisting fund managers of all sizes to assess their portfolio impact.

Kelly Perry ESG Director Edison Group

Issue 29 | 19

BUSINESS

Hybrid Working – More Change, or More of The Same?

My morning’s work starts not with a train journey into central London, but with a run around Wimbledon Common. Others in GW+Co’s team of creatives and strategists have cultivated all sorts of nurturing activities in the space previously occupied by the commute, from yoga to sea swimming, hiking and fencing.

As with many others in the ‘knowledge economy’, our productivity is up as we’ve adapted to the everyday reality of remote working.

We’re settling into a new routine of one day in the office, one day working from home. During days in the office and in-person client meetings, energy and creativity are high. We have a renewed appreciation of the unplanned interactions that lead to fresh ideas and possibilities. After 18 months, people are enjoying just being together again. It feels right not to tie times like these too tightly to productivity goals, in order to honour what we lost out on in all those months of Zoom calls.

Early in the pandemic, we hosted a virtual roundtable with leaders from finance, engineering, nonprofit and technology firms. The one thing they all reported was that nobody wanted to go back to the old ways of presenteeism, and rigorous working hours. The divide between ‘work selves’ and ‘home selves’ has been erased over years of increased working from home.

In 2017 when the kids of political analyst Robert Kelly walked into shot in a live BBC interview from home, it caused a viral sensation. Five years later, this sort of thing has become commonplace. So what else should we accept as ‘normal’?

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Everybody’s changing…

Over the last year and a half, many business leaders realised that the established work culture was at risk and needed to somehow be supported. It has thrown into relief the importance of social cues for professional effectiveness. For example, on trading floors, emotional contagion is a key factor in decision making, and traders depend on impromptu conversations to figure out complex situations. The shift to home working may have contributed to the market crash on 9 March last year.

As we move towards so-called hybrid working, which typically combines people in one place with others in remote locations, business leaders need to recognise the importance of the social glue that binds us, and make sure in-person interactions support rich engagement among the people in their organisation.

Business leaders undoubtedly took a particular psychological hit in the pandemic, reacting to sudden fundamental change and experiencing a loss of control. Some clung to the idea that we could all get back to ‘normal’ even as it became clear nothing would ever be the same again.

And as we move towards the hybrid model, others are focusing on issues that feel more controllable, like the number of days spent in the office, training teams in the use of online collaboration tools, and data security.

Apple CEO Tim Cook was accused of a failure of emotional intelligence, having sent out a note to his employees saying they would need to return to the office on Mondays, Tuesdays, and Thursdays starting in early September. Employees have pushed back, saying the policy, and

the communication around it, had forced some colleagues to quit, and they “felt not just unheard, but at times actively ignored.”

Moves like these fail to recognise the shift in priorities that has happened throughout the last year and a half.

Microsoft’s 2021 Work Trends Index found that 40 percent of the global workforce actively considered leaving their employer this year, and 70 percent want flexible remote work options to continue, yet 65 percent crave more in-person time with their teams. The challenge for business leaders is to overcome the disconnect between their own hopes and fears and those of their employees. …and I don’t feel the same The shift to hybrid working is a once-in-a-generation opportunity to reimagine the future of work. Now is the time to move away from a topdown, command and control approach to a systemic approach that allows more people to contribute to how the organisation works. There are big, immediate questions that require collective answers, such as: •

What’s the best way to conduct meetings?

•

What work is best done in person?

•

What work is best done virtually?

•

How can influence be balanced between those who are on site and those who aren’t?

•

How can we maintain the closeness/personal connection created by seeing everyone in their own environments?

BUSINESS

Design is a powerful strategic tool in business, particularly for engaging the workforce on these issues. It can help visualise new ideas in ways that make it easier to share them. It can promote empathy, bringing people together across disciplines and departments.

Involving people in the decision making about future working patterns makes them more likely to buy into change, rather than feeling that it is being imposed.

And there are more things that need to be looked at than just who's in the room and who's on Zoom. Positive change can be found through a deeper approach to hybridisation. We can use this reconfiguration of work life to question long-held dichotomies – for example, between older and younger employees, male and female, leaders and followers. Does ‘hybrid’ just mean appropriating elements of one thing to another, or can it liberate the best of both worlds?

None of us can know exactly what the future holds, but the shift to hybrid work is a unique opportunity for positive, lasting change. Business leaders who approach it creatively, in partnership with employees, can fashion a new mode that aligns the values of the company with those of its people. And where diverse viewpoints are included, it strengthens innovation in the long term.

Five tips for business leaders to approach hybrid working: 1.

Trust your people. If you can’t, you have a culture problem, not a productivity one.

2.

We’ve started to break down silos.

Don’t let them be built back up.

For example, all the gossiping changed when people were forced apart, and people made new connections across functions, how do you keep this up?

3.

Remote working can be incredibly productive. And it is not a problem if someone has to pick up kids or home school during the day, because the vast majority of people will more than make up that time.

4.

When you are together, celebrate this. Make time for lunch together, take time for people.

5.

Use design to power positive, lasting change. Visualise new ideas in ways that make it easier to share them and set up processes that support interaction and collaboration.

Gilmar Wendt Principal GW+Co About GW+Co GW+Co is a London-based creative consultancy that helps transform businesses by aligning strategy, culture and brand. It has won numerous creative and design effectiveness awards. Clients include CoinShares, PayPal, Peel Hunt, Ergo Group and Yale. https://www.gilmarwendt.com

Issue 29 | 21

Megabank: 14 Years of

International Cooperation What Attracts Investors to the Ukrainian Bank

Investors are willing to pay more for reliable and secure cooperation when they see the right level of management in their bank. A striking example of such a bank in Ukraine is Megabank, and this article looks at how it attracts international investments.

Megabank is one of the oldest and largest commercial banks in independent Ukraine. The bank has been operating on the market for 31 years. It has more than 700,000 customers, about 1,500 highly qualified employees, and 155 branches in 19 regions of the country. Megabank not only provides classic banking services, but also offers innovations. Its unique service is the Integral Clearing Center for utilities and other payments, serving more than 2.2 million accounts. The bank was also one of the first to join the development of neo-banking in Ukraine, launching the mobile bank todobank.

Ukrainian Megabank upholds principles close to those of a modern European bank. In its activities, the bank adheres to high European and world standards while introducing best practices and new approaches.

Megabank set a course to attract foreign shareholders back in 2005.

“This was our strategic vision, because we planned to develop the bank in partnership with foreign financial institutions, in order to bring not only its reputation, but also its knowledge and experience to what was a fairly young banking market in Ukraine at that time,” said Oleksii Iatsenko, Chairman of the Board of Megabank JSC. Thus, Megabank became a unique case in Ukraine, being a bank with three major international financial institutions as shareholders: European Bank for Reconstruction and Development (EBRD), KfW Development Bank and the World Bank Group International Finance Corporation (IFC), of which it is a member.

“Thanks to foreign capital and the global experience of our shareholders, we can do more than any other bank. Megabank guarantees stability and European quality of service, helping its customers to realise their financial goals and dreams,” said Oleksii.

During that same year of 2005, Megabank was the first among Ukrainian banks to introduce corporate governance and the position of a corporate secretary to ensure the bank’s efficient operation and reliability. This project to improve corporate governance was implemented

jointly with IFC. The system, which helps to reconcile the interests of shareholders, depositors, management and employees of the bank, has been working efficiently and effectively for 16 years.

In 2006, David N. Cleave, an independent director and specialist in international banking, was elected to the bank's Supervisory Board. His candidacy was offered by IFC. Furthermore, in 2011 Megabank entered the top ten of Ukrainian companies in terms of quality of corporate governance, according to the ratings compiled by the investment company Concorde Capital together with the United States Agency for International Development (USAID).

In order to ensure stable operation of the bank in the long term, Megabank JSC has developed and approved the Code of Corporate Governance and the Code of Conduct (Ethics). In 2021, the bank has developed a strategy for its development for the period of 20212025, which provides for an increase in return on assets up to 2.5% and an increase in return on equity up to 15%

by the end of 2025. It is also planning to increase capitalisation by 70% by increasing the bank's profitability. The bank plans to achieve such results by developing lending to SMEs and micro-business segments, as well as retail lending products such as the neobank todobank and consumer and mortgage loans.

Megabank has built a strong system consisting of the Management Board, Supervisory Board and Committees of the Supervisory Board, enabling interaction with the bank's shareholders. All this provides for improvement to the bank’s management and increases its efficiency as a financial institution.

Self-control is another feature of Megabank. Annually, in accordance with the requirements of the National Bank of Ukraine, Megabank undergoes an external audit in accordance with international standards. For 20 years, the bank has been audited by the Big Four, the world's four largest auditing and consulting companies: Deloitte, PricewaterhouseCoopers, Ernst & Young and KPMG. Today the bank cooperates with the British company Ernst & Young.

Four of the seven members of the bank's Supervisory Board are independent, and not representatives of any of the shareholders.

Desmond O’Maonaigh, who is experienced in international banking, is an independent member of the supervisory board and serves as Chairman of the Supervisory Board.

In 2020, on the initiative of the members of the bank's Supervisory Board, the international consulting company Nestor Advisors conducted an assessment of the effectiveness of the Supervisory Board and the Management Board, and prepared a report with recommendations.

Almost all of Nestor Advisors' recommendations have been implemented, which has allowed the Supervisory Board and the Management Board to work more efficiently. The bank also passed an external evaluation of the internal audit department by Kreston GCG.

Megabank operates as a universal bank, having strong competencies in support of small, medium and retail businesses. The bank has extensive and unique experience in Ukraine in attracting partners and programmes to support this segment in particular.

Since 2007, it has entered into 62 agreements with 18 foreign partners to raise funding totalling USD 363 million.

Today, among the international partner organisations of Megabank are European Investment Bank, Triodos Bank, BlueOrchard Microfinance Fund, responsAbility, KfW, European Bank for Reconstruction and Development (EBRD), International Finance Corporation (IFC) and International Bank for Reconstruction and Development.

As of July 2021, within the framework of agreements with these investors, Megabank JSC is implementing 9 long-term programmes equivalent to USD 86 million.

Oleksii Iatsenko Chairman of the Management board of the MEGABANK JSC, Ukraine

“In working with foreign partners, one thing is fundamental for us: the complete and timely fulfilment of commitments under loan agreements.

We often manage to repay loans early.

Our cooperation makes our partners feel comfortable and confident. That is why, perhaps, we are so trusted,” said Oleksii Iatsenko.

Throughout years of cooperation with foreign lenders, Megabank has managed not only to implement local projects, but also to influence the development of Ukraine's economic potential in general. The bank has been able to diversify services for individuals, e.g. the consumer lending programme, with regard to two targeted loans in particular: for the purchase of agricultural machinery, and for energy saving in housing.

In addition, it has managed to increase the portfolio of microloans for SMEs, and implement and stimulate the development of projects focused on energy saving, environmental protection, development of farming and agricultural enterprises to support Ukrainian exports, and women's entrepreneurship.

The bank is currently working on a European Investment Bank project for lending to small and medium-sized enterprises and mid-cap companies.

Megabank is proactive in its social responsibility; it was the first bank in Ukraine - and so far, the only one - to become an associate member of the Global Alliance for Banking on Values.

“We have purposefully joined GABV because the values of the Association include responsible banking, which involves the use of finance to ensure sustainable economic, social and environmental development. These are also the values of Megabank today,” Oleksii explained.

Within the framework of the bank's social responsibility, the priority areas of financing for the bank are energy efficiency, modernisation of equipment and machinery (in particular, the capacity of utilities which entails a reduction in carbon dioxide emissions), transition to electric cars, energy saving technologies in construction, and alternative energy.

The bank also considers it its social responsibility to participate in local government initiatives on public access to digital services.

This results from an appropriate level of corporate governance within the bank, in line with risk management processes, compliance, interaction with shareholders, implementation of KPI principles and social responsibility, all of which enables Megabank to be more efficient and attractive to foreign investors.

COVER STORY

Harel Tayeb CEO, Kryon

About Kryon A leading innovator in enterprise automation solutions, Kryon’s Robotic Process Automation (RPA) platform provides customers with cuttingedge technology, enhanced integration, and unprecedented accessibility through its userfriendly interface. The Kryon Full-Cycle Automation™ solution includes first-to-market features like RealTime Process Discovery for effortless mapping of business processes with comprehensive reporting, eliminating the need for costly consultants. Kryon is the first to offer Full-Cycle Automation as a Service (FCAaaS), an agile cloud-based suite combining rapid deployment with fast, flexible scalability. Kryon offers desktop-based attended RPA, virtual-machinebased unattended RPA, or a hybrid combination of both. The company’s award-winning suite is used by enterprises worldwide, including AIG, Allianz, Deutsche Telekom, EY, Ferring Pharmaceuticals, HP, Microsoft, Santander Bank, Singtel, Verizon, and Wyndham Hotel Group.

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Referenced sources: 1-https://go.kryonsystems.com/forrester-wave-kryon-recognized-asa-leader-in-rpa 2-https://cloud.google.com/blog/topics/developers-practitioners/ bots-are-here-use-rpa-and-ai-automate-digital-tasks 3-https://blogs.windows.com/windowsexperience/2021/03/02/ download-power-automate-desktop-for-windows-10-to-automatetasks-and-processes-at-no-additional-cost/ 4- https://www.gartner.com/en/finance/insights/robotics-in-finance

COVER STORY

RPA: the truth behind the hype Bots can carry out a huge and increasing number of manual tasks in finance. Their ability to save time and money while boosting accuracy and compliance is unparalleled. Many CFOs are yet to embed the power of Robotic Process Automation (RPA) in their departments, but in this case they should take the plunge. This time the hype is real.

and so come to understand the ongoing analysis of structured and unstructured data. This optimises efficiency in workflows to do with loan processing, financial reporting, supplier invoicing, policy administration, billings and collections. Intelligent bot assistants can discover specific patterns, predict decisions and eventually offer recommendations to the user.

As they view the post-pandemic world, an increasing number of CFOs are planning to digitise processes, future-proof workflows and make their finance teams as productive as possible. One area of technology becoming a focal point in the finance industry is Robotic Process Automation (RPA). According to the latest “The Forrester Wave™: Robotic Process Automation, Q1 2021” report(1) : “Customers want to scale existing bot environments and extend the scope of their automation projects beyond classic desktop-based tasks to more complex processes.”

Bots are now designed to target a wide range of manually-intensive processes, such as procure-topay, order-to-cash and record-toreport. RPA is also used by CFOs to retrieve budget approval, incorporate mergers, manage talent and meet compliance requirements. All this saves employee time for the bigger analytical tasks, and therefore makes finance teams more productive. There are also benefits for CFOs in terms of accuracy and compliance.

The reality is that finance teams are engulfed in hugely complex processes on a day-to-day basis, and the vast majority of these are ripe for automation. RPA allows finance teams to deploy software bots to support automation of manuallyintensive processes, creating a new era of digital working.

What are bots and what are they doing in finance settings?

Bots are essentially digital assistants that augment human intelligence. They adapt themselves automatically by learning from their previous mistakes

How to get there As a first step to achieving the best results from RPA, CFOs need to optimise their chosen business processes internally. Taking the time to evaluate existing processes will allow companies to pinpoint the areas that need development to scale at volume. Putting in place the right foundations — including senior management sponsorship, robust process management to select and prioritise the right processes, and agile business practices — is a must.

According to Gartner(4): “Around 80% of finance leaders have implemented or are planning to implement RPA.” Tech giants Google(2) and Microsoft(3) have recently said that they are attempting to move into the RPA space, suggesting the lucrative opportunities that they think will come from enterprise-wide RPA adoption, although their technologies remain unproven in an enterprise setting.

In my experience, typically 30% of the time dedicated to introducing RPA should be dedicated to process identification, and 70% focused on implementation and value realisation. But in the initial stages, it’s likely that the majority of time will be spent purely on process identification until the RPA project gains momentum internally. Mapping each step in a particular process is critical when supporting the process identification cycle. It’s important to have a clear overview of your organisation and the business processes that are being carried out. The good news is that the technology now exists to map the activities in a business and identify those processes that are ripe for automation within days.

The management team can then base automation decisions on data that’s been extracted internally.

I forecast that very soon every member of a finance team will have a digital assistant automating previously manually-intensive processes. But while RPA’s features are enticing for finance teams, they need to step back and consider the best ways to scale the technology before they automate.

For successful RPA implementation it’s important to advocate a holistic, end-toend approach, from process discovery through implementation to ROI and impact evaluation for the best results. Ultimately, RPA can ingest any type of data, process it, run it, and make it use more efficient.

RPA undeniably has real benefits for finance teams. This time the hype is real.

Issue 29 | 27

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2021

BUSINESS

Remote working: poor cyber hygiene widespread in financial services

Recent research has revealed the financial services industry practised poor cybersecurity behaviours during the COVID-19 pandemic. This article outlines the most common risky behaviours, with advice on how firms can strengthen their authentication.

In response to stay-at-home orders, many companies across the financial services sector switched rapidly to remote working in 2020.

It’s likely a number of them will continue to maintain higher levels of homeworking than existed before the pandemic began. This poses a range of challenges for employers and employees, such as how to facilitate collaboration and build working relationships between colleagues and clients when in-person meetings happen less frequently. Another challenge that many, it seems, have yet to overcome is the impact of remote work on cybersecurity. This is a major gap that must be plugged as companies navigate a new hybrid working era.

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Our survey of employees provides insight into how financial services have fared in securing remote workers during the pandemic. It reveals that security training levels are fair for employees and the majority have introduced new policies since the start of the pandemic. However, there is significant room for improvement, particularly when it comes to the authentication of remote workers.

Risky behaviour The survey also revealed a somewhat lax attitude to the sharing and use of devices. Over a fifth (22 per cent) of responding financial services employees allow others to use their

devices and don’t pay attention to how they use them. Meanwhile, the percentage of workers who use workissued devices daily for personal matters has jumped from 29 to 44 per cent since the start of COVID. Both these revelations are concerning, because this activity opens up financial services to potentially more cyber threats.

Despite this risky behaviour, employees reveal they are stressed by cyber threats. In fact, 40 per cent feel more stressed about this while working from home than they do in the office. That’s higher than employees across a range of sectors, where 35 per cent said the same.

BUSINESS

Strengthening authentication Identity verification is the way users gain access to accounts, services, systems and applications. In the financial services sector, some employees perform high-value transactions on a daily basis, making them key targets for cybercriminals.

Call centre agents make likely targets too. Being generally office-based, access security typically exists within a corporate perimeter, but as remote workers, they need a secure and simple way of verifying their identity before accessing critical systems and data. If employees are only using a username and password for authentication and an attacker succeeds in getting hold of this information, their data and company data is compromised.

There are a range of ways cybercriminals go about it. Most commonly through phishing. Many more people are aware of phishing attacks now but despite the dangers, ten per cent of financial services respondents to the survey said they wouldn’t admit to clicking on a suspicious link. Those links could take employees to fake sites where, if they enter their credentials, the identity thief then has their login information to gain access through the real site.

Strong authentication is essential to safeguard against this. Yet only 27 per cent of survey respondents said two-factor authentication (2FA) had been implemented since employees began working from home. 2FA boosts authentication compared to logging in with only a username and password because it requires users to have a second way of verifying their identity.

This can be by presenting something they have, like a one-time passcode

or security key, or something they are, which is generally a biometric identifier such as a fingerprint.

Phishing resistant 2FA is the most secure option, yet only 26 per cent of survey respondents said their company had gone down the route of hardware security keys. Commonly used SMS codes sent to mobiles and one-time passcodes (OTPs) can still fall prey to phishing if users unwittingly provide the information to a cyber attacker.

Phishing scams, together with unsecured WiFi networks and unmanaged personal mobile devices often used for authentication in a work-from-home situation, can give cybercriminals a way in.

IT security plans in the hybrid work era Organisations that heed the warning signs from this latest research will develop IT security plans to ensure secure access to systems without the introduction of new risks and vulnerabilities. Enabling stronger forms of authentication with identity access management systems should be a top requirement for a work from home policy.

Nic Sarginson Principal Solutions Engineer Yubico

The pandemic has had a profound effect on the way we live and work, and the changes we’ve seen as a result have raised the cybersecurity threat level. Basic security measures fall short in protecting the high-value systems and data within financial services. As corporations adjust to a new working era that is likely to include more workers logging in from varied locations, they will need strong authentication to mitigate the threat of attacks.

Issue 29 | 31

BUSINESS

The difference between adaptability and agility Believe it or not, we’re no longer tied to our desks, hooked up to our workspace via wires and telephone lines.

The world of work is transforming, and smart businesses are making sure they’re ahead of the curve. If business is booming, your staff are working tirelessly and phones are ringing off the hook, you might not notice a problem. But, before you know it, your old-fashioned way of working will be overtaken by swift, forward-thinking competitors, and, if 2020 showed us anything, it’s that an ability to adapt is invaluable. The world around us isn’t static – it’s constantly evolving, and businesses must learn to change with the times.

Here, Matt Parker, CEO of Babble, explains the inherent differences between adaptability and agility and why both are vital.

Agile working connects people to technology that helps to improve effectiveness and productivity.

Therefore, agility is defined by the way a business proactively evolves in order to thrive. Agility allows a business to realise its full potential through implementing new systems.

As technology evolves and the way we work changes, businesses can’t just stand still. Continuing a way of working because “this is how we’ve always done it” will get mediocre results and hinder a business’s progress.

For example, a company that embraced agile working is Aquavista.

The leading leisure and mooring supplier that needed to implement a

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scalable cloud technology solution that would align to its rapid growth.

To enable employees to operate efficiently and remotely, Babble deployed a fibre grade connection and a hosted telephony platform. These solutions facilitated agile working, reduced operational downtime, boosted productivity and ultimately enhanced customer experience.

Adaptability, however, is a business’s ability to respond to these changes.

Businesses must recognise the importance of both of these competencies. It’s how prepared a business is to change or evolve its practices to overcome challenges or align with environmental changes.

Businesses should be able to adapt to new changes in a productive, positive way – with company culture emerging unscathed and business processes improved as a result. Maintaining

business effectiveness through times of change will ensure a business can thrive, no matter what life throws at it.

Whilst “agile working” in a software development sense isn’t wholly aligned with the term used when discussing business, there are some shared principles and key takeaways. Fundamentally, viewing change positively and approaching new processes with flexibility helps businesses adapt. Improving internal processes benefits the business, its staff and ultimately customers as the service provided is more effective.

Businesses need a unified vision and passionate leaders to ensure agile adoption. Problem solving with a positive, productive mindset will ensure successful agile transformation. It’s all about understanding what currently works but being open to exploring what could work better.

BUSINESS

Businesses must be both agile and adaptable in order to weather new storms and safeguard its future.

However, achieving agility and adaptability is a fine balancing act. Constantly striving for change without strategic rationale may cause a business to flounder. You should always aim for the final goal, with a strong end result in mind and a clear idea of how you’re going to get there.

Implementing change within a business can be a challenge. It’s true that leaders can sometimes be too close to their own operational processes to be able to clearly see better ways to work, but partnering with a specialist such as Babble offers a unique advantage.

Flexible, scalable solutions ensure that a business can adapt to new challenges or changes in circumstance. As we’ve seen from the COVID-19 pandemic, there’ll be times when businesses must adapt to new ways of working almost overnight.

Think ahead by utilising an optimised network and deploying cloud-based communication tools to allow your

business to work in an agile way.

This results in maximum efficiency, maximum benefit to your customers and maximum business productivity.

Being agile requires business leaders to identify change and understand how it could impact the business.

Seeking new opportunities and deploying the resources needed to secure these opportunities futureproofs a business and helps it succeed. Although it’s worth noting that there’s no set formula for agile working. Businesses can’t follow a ‘how to’ guide for agility. Every business has its own way of working; its own processes. Identifying where there’s need for change is unique across each business. However, ultimately, businesses that don’t adopt agile working will stagnate as proactive, forward-thinking competitors take the lead. Don’t just wait for new ways of working to become a necessity – take the initiative now.

Matt Parker CEO Babble

Issue 29 | 33

BUSINESS

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BUSINESS

Reinforce employee wellbeing with a personal workspace set for a hybrid future What does wellbeing mean to you? And what should it mean for employers?

‘Wellbeing’ is defined as ‘the state of being comfortable, healthy, or happy’ and is arguably most associated with positive mental health. As a result of coronavirus, there has been a decline in positive mental health. The World Health Organisation has even warned of a mental health emergency resulting from increased anxiety, stress and isolation.

Amidst this, employers are also navigating radically shifting workplace needs and expectations.

Corporate policies are even manifesting as you read this, with some of the city’s biggest employers announcing strategies over the past couple of weeks.

As employers respond to remote models (which can bring positive mental health benefits such as flexibility and family-friendly working), wellbeing has become a strategic imperative.

The distinction between mental and physical wellbeing is important here.

While media commentary has focused largely on mental health, physical wellness also plays a huge part. If our goal is to both feel good and function well, neither of those can be achieved without a holistic view of mental and physical health. Should we be working from home hunched over a laptop using the touchpad with an inbuilt microphone that echoes your voice in meetings to all participants?

Not just niggles; wellbeing for the body If we understand wellbeing as ‘feeling good and functioning well’ that means also reflecting on our physical health.

The Institute for Employment Studies has reported a significant increase in musculoskeletal complaints due to the pandemic. More than half of workers have reported new aches and pains, especially in the neck, shoulder and back; keyboard work was the third biggest cause.

The pandemic is clearly taking a toll on our bodies as much as our minds.

In fact, the two are intertwined.

Numerous studies support the idea that preventing musculoskeletal issues, and the associated pain and discomfort has a direct impact on mental health.

Fortunately, there are very practical ways to deal with this. Using ergonomic products designed with a human-centered approach can improve posture, increase comfort, lower muscle strain.

Heavy computer users perform 3 million keystrokes and move their mouse up to 17 miles in a year. Using equipment that is not optimised for human physiology can cause serious issues. However, ergonomically designed mice that echo the natural handshake position are proven to reduce wrist pressure, improve wrist posture and relieve forearm strain.

Similarly, curved, split keyframe keyboards reduce muscle strain on wrists and forearms.

Ergonomic mice and keyboards place your hands, wrists, and forearms in a more natural posture – which in turn can help relax your entire upper body. A more natural posture leads to a quantifiable reduction in muscle activity – meaning you can work just as productively while putting less stress on your body.

With increased hybrid working, this isn’t just an issue at the office, and both physical and mental wellbeing should be considered integral to working practices. Much like in the office, employers should also facilitate healthy home working spaces, based on the same ergonomic principles.

Equipment for hybrid working must take a holistic, human-centered and science-driven approach. Employers must support the shift in what constitutes a workspace and ensure that wherever people work, it is fit for purpose and supportive of wellbeing.

Video can help to re-engage lost connections Earlier this year the Office for National Statistics released a map charting the UK’s skyrocketing levels of loneliness. Loneliness is known to increase the risk of depression and anxiety, exacerbating stress and lowering self-esteem. This poses a challenge.

While many have welcomed the flexibility of remote working, it’s clear that others have suffered a lack of connection with colleagues.

Issue 29 | 35

BUSINESS

This has spurred many to consider adopting hybrid models where employees can enjoy a mix of remote and office working. 77% of UK employees reported this as the best way forward post COVID-19, with CapGemini reporting truly hybrid models will see ‘improved productivity, lower costs, refreshed managerial roles and strengthened cultural fabric’.

To attain a truly hybrid model, neither home nor office should feel like a lesser option. Both must offer facilities that enable connection and communication. Those working from home shouldn’t feel excluded from colleagues who are at the office.

The right technology powers this experience with state-of-the-art video conferencing facilities enabling teams to come together virtually.

Now, 4K conference cameras can autofocus to pan, tilt and zoom to focus on individuals within a large room. Webcams with integrated highquality microphones and optics make sure remote workers are seen and heard just as clearly as if they were physically in the office.

36 | Issue 29

Combating loneliness is a vital component of employee wellbeing.

How we connect with others through work should enable us to build better, closer connections, no matter the location we work from. Technology is proving to be a key part of answering this challenge, powering productivity and enabling employees to do their best work in the environment that best suits them.

A holistic view of wellbeing at work Covid has broadened our understanding of the role of work in people's wellbeing. While mental health has dominated many headlines, what is increasingly clear is that post-COVID, wellbeing encompasses both the mental and physical in more ways than ever before. As a result, employers must approach wellbeing in a way that supports body and mind. Technology cannot answer every aspect of these challenges, but it can play a huge role in an approach to wellbeing that is both holistic and strategic.

Lars Lauridsen Senior Global Product Manager Logitech

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FINANCE

People don’t like to be told no when it comes to finance Nobody likes to be told no, from a child the word is usually accompanied by a feeling of disappointment. For businesses being rejected is equally frustrating, especially when it comes to finance.

The fear of being told no can often cause individuals and businesses alike to avoid asking for what they really need or want.

We’re especially not good when it comes to asking for money or admitting that we don’t know what kinds of finance are available. It’s an emotional business, which is why so many smaller companies ask family and friends for money, go deeper into overdrafts or use credit cards. Recent research conducted

by CapitalBox found that, as a result of COVID-19, almost 1 in 4 (24%) of European SMEs asked family or friends for financial help.

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Since the 2008 recession, banks have been wary about lending to small businesses as they have always been viewed as riskier. Now with the uncertainty around the post-covid economic recovery, it can still seem virtually impossible to get a loan to grow a small business.

Here are some top tips to small businesses ahead of applying for a loan and looks at what alternatives can be considered to best avoid the disappointment of a no.

Understand your business and why you are asking Understanding your business and the reason you need a loan should be the first step. You must take stock of important factors that influence what kind of loans you may be eligible for and your chance of acceptance. For example, knowing what the amount of money to borrow and what it will be

used for are the most critical factors when taking out a loan. After all, if you are unsure about how the money will be used, how can you expect lenders to assess the risk?

Assets are a key consideration when finding out whether it is possible to get a secured loan (one backed by assets) or an unsecured loan, which will not require assets but instead uses other criteria such as financial health and turnover. The ability to put up collateral against your loan will in most cases increase your chance of acceptance.

However, some SME loans can offer more flexibility meaning that factors such as the time the company has been in business, revenue and credit scores are weighed in heavily. That can lighten the load of needed collateral or even make you eligible for an unsecured loan.

FINANCE

Scott Donnelly Director of Board CapitalBox

Who should you ask?

Considering who you ask is as crucial to getting a yes as knowing what you want. It is important to choose a lender who can support you with the right advice and terms throughout the time span of your loan. Being aware of the documents requested by the lender and each lender eligibility criteria can also help to inform your decision.

Perhaps you don’t have the information or time needed to get a loan from a traditional bank or are not eligible for governmental small business funding. Luckily, there are alternative options from classic loans and cash advances to credit lines. To support the specific needs of SMEs, financing needs to come from loan providers who can truly understand their challenges. This includes

looking at a flexible approach, quick turnaround times, and the ability to leverage technology and machine learning. This will enable these businesses to make better decisions.

Otherwise, companies can waste hours if not days applying for loans with lenders who will never say yes.

Thinking outside the box, there are multiple types of loans that companies can apply for. For those needing a “quick money” solution, merchant cash advances are an option for companies with a poor credit score. Although these advances tend to be the easiest to get, it is worthwhile to pay attention to the terms to find out how much you will be paying for this service.

Whilst those looking to bridge the gap between invoice payments can look at invoice financing to keep cashflow healthy.

No is not always the end of the road Even if businesses take all this into account, in today’s climate, avoiding a no is never guaranteed.

When companies do get rejected, it is important to take stock of the potential reasons why. Doing your research and asking thirdparty experts for help can make the process may provide clarity around lenders decisions. Using the information gathered, businesses can then balance and evaluate the best fit for them, giving those applying for the loan the best shot at a success next time around.

Issue 29 | 39

FINANCE

Top tips for PSPs looking to enter Asia

This year, we have already seen businesses such as PayPal create a local wallet in China with a greater focus on cross-border payments. As a pattern appears to be forming, this is likely to be the beginning of a trend in the financial technology sector, supported by modernisation (e.g. the globalising of financial platforms) which has been welcomed in the business-to-business space.

Like PayPal, Payment Service Providers (PSPs) around the globe should be taking advantage of the vast opportunity in Asia, especially China as it has great potential with a 4.8 trillion USD TAM. However, many are unable to, due to their lack of knowledge of the continent's landscape and financial markets.

This is especially important given emerging trends such as the modernisation of the B2B finance space. As business-facing financial institutions embrace technological innovation, crossborder transactions will be more seamless than ever which should also encourage PSPs from different countries to enter new markets.

As the rise of digital payments continues, PSPs are expected to ride the wave of this growth for their own benefit - and expanding into other markets is a great way to do this.

In order to be able to tap into the continent's potential, there are key steps Payment Service Providers need to take.

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Understand how Pan-Asian markets differs from other countries To know your clients well, PSPs must understand the markets they’re building products in.This means researching your market's payment’s landscape, regulations and potential competitors.

Firstly, businesses entering new Asian markets must know how payment transactions differ. Unlike other countries, China and other PanAsian markets make local consumer payments directly from cash into an E-Wallet. This differs from states within the US or the EU where cash is often converted into credit first, and then an E-Wallet or neobanks.

This comes as a result of Pan-Asian countries experiencing a rapid shift to online payments and thus, the digitalisation of the financial services industry. It is because of this that PSPs need to understand the different cross-border transactions in the country they’re entering.

Furthermore, understanding local rules and regulations is integral for PSPs entering new territories. In a Pan-Asian context, this means being aware of the on-shore and off-shore policies. As Pan-Asian countries are restricted when it comes to foreign exchange and cross-border funds flow, some have an onshore and offshore foreign exchange market, with different conversion rates and market mechanisms to aid with crossborder transactions. Service providers should therefore ensure they know how business payments between different countries operate.

FINANCE

Lastly, PSPs must be aware of the different types of existing trade (e.g.

Goods trade or Services trade) in Pan-Asian countries and the different documentation requirements for each.

These types of trades also have their own sections, for example, within Goods trading there is eCommerce trade, border trade and marketpurchase trade amongst other types.

Businesses must know the regulations for each of these different trades and have the documentation required before building new solutions there.

Be aware of what a local partner can bring to the table Understanding the local market is made even easier by working with someone who already knows the country or area you wish to enter.

Doing so has several benefits that PSPs should consider when building their solutions.

One of the most important functions local partners serve is having an already established network. As payment solution platforms have continued to innovate, they have become more open to collaboration than ever, this means they’re open to working more with other financial institutions such as banks. By working with a local partner, PSPs can save the time of forming new connections with local banks and, instead, leverage the partners’ network giving them faster access to a new market. Businesses can also save money as the resources that would be spent learning about new markets, will already be known by your partner.

Moreover, working with a local partner would ensure PSPs can quickly gain a holistic understanding of a market.

Learning about regulations and documentation requirements from local PSPs is useful as they have direct experience working in that market and could share the practical knowledge they have.

Lastly, together with a local partner, PSPs can even co-create products and services. As the partner would have a deeper understanding of consumers, competitors and product proposition, a more comprehensive solution could be built.

There are a range of factors that must be considered before entering a new market, but understanding the country/ countries you wish to move into is a strong starting point. PSPs must have a detailed strategy ready when entering a new market, especially for countries with as great potential as those within the Pan-Asian region. As markets differ significantly, entering new ones will not be easy, but with the right preparation,knowledge, and local partners, PSPs will be able to overcome the barriers of new territories.

Joshua Bao Co-founder SUNRATE

Issue 29 | 41

FINANCE

The transformation of payments during the pandemic

The pandemic has undoubtedly accelerated the digitisation of the payments sector, with contactless card transactions now the preferred choice for many. The rising use of digital wallets, online banking and payments initiated through open banking applications also demonstrates the increasing desire from consumers for quick and flexible payment choices.

These changes mean digital payments are on the rise. Recent statistics from UK Finance shows that in September last year, contactless payments reached their highest recorded level.

With a variety of payment systems now on offer, businesses need to ensure they can offer seamless and secure options to customers.

The transformation of payments during the pandemic 2 Mike Chambers, Access PaySuite Consumer-driven change Last year, the majority of consumers across the UK embraced a digital model as lockdowns and social distancing minimised the chances of contracting COVID-19.

For businesses, this forced a re-think.

Many may have been considering a move to implement digital payments

42 | Issue 29

or made plans to do so, pre-pandemic there may not have been a compelling reason for them to rush to transform payment models.

However, the pandemic has highlighted the desire for more digital payments and businesses are moving away from traditional payment methods. With the increased use of mobile wallets such as Apple Pay, Samsung Pay as well as buy now pay later schemes such as Klarna, it has become increasingly difficult for older systems to compete.

By branching out now, businesses benefit from longevity as digital options offer flexibility to customers in choosing how to pay, creating a seamless experience and increased likelihood of returning customers.

This is where integrated or embedded payments are an increasingly popular solution, able to connect the payments system with existing financial and business management software.

As there is a straightforward setup process, businesses can begin to use this integrated system instantly.

Using cloud-based software also increases security, minimising the chances of fraud, as well as having the option to access important data from any device with an internet connection.

A modern, automated solution can drastically cut the cost and time spent on manual duties such as invoice processing, chasing payments and ultimately providing a more flexible, efficient and less errorprone organisation.

The steps ahead

Integrated payments Contactless card payments look set to increase from £45 to £100 in the next year and this significant change creates shopping experiences that are a lot quicker and smoother, for both businesses and consumers. However, many organisations realised they lacked the visibility, flexibility and agility needed to adjust to the new way of living.

With multiple businesses making the move to digital payments, what can we expect to see in the future? It has recently been predicted by Accenture that by 2030, over 50bn transactions are expected to shift away from cash to digital payments – with the UK expected to see the most widespread adoption.

To cope with this influx, businesses will need to act now to put a highperforming payment infrastructure in place to accommodate the shift.

FINANCE

A secure payment system, able to support these needs and effortlessly enable multiple payment options is now critical for businesses seeking to remain competitive and relevant in the eyes of customers.

For businesses, it’s important to understand the need to stay on top of payment technology trends to accommodate shifts in payment volume, new customer shopping demands and to remain one step ahead.

A push towards a broader digital payment is only likely to continue throughout 2021 and years to come. Incorporating integrated payment systems sooner, rather than later, will equip businesses with the potential to save time, money, and the capacity for further growth. Speed, convenience and competition are reshaping the payments industry and early adopters of digital tech are likely to see their investments pay off.

Mike is a payments advisor for The Access Group, which has just launched a new digital payment service, Access PaySuite. For more details, click here.

Mike Chambers Access PaySuite

Issue 29 | 43

TRADING

Smart trading:

how to manage risk and maximise profit in uncertain economic times The past year has seen demand for retail trading sky-rocket, with record numbers of new traders signing up to profit from the remarkable volatility the financial markets have seen. While trading in such periods presents the opportunity for traders to win big, it is perhaps more pertinent than ever for participants to ensure they have a proper understanding of the industry – not least when it comes to managing risk. Dáire Ferguson, CEO at AvaTrade, explains 2020 is a year that none of us are likely to forget in a hurry. Alongside fundamental changes to our everyday lives, the coronavirus pandemic saw the financial markets experience unprecedented turbulence, putting an end to a sustained period of global growth as the stock markets crashed early in the year. With companies’ stocks seemingly on board a rollercoaster (some of which have yet to get off) and members of society unable to leave their homes for sustained periods, it is of no surprise that vast swathes of people turned to the stock market in the hopes of making a quick buck.

Many have profited during this period – and not just financially.

Retail trading enables individuals to learn an exciting new skill and join a community, something that has been hard to come by in an increasingly fractured world. What’s more, with interest rates on regular savings accounts presenting little to get excited about, delving into the world of trading presents an enticing alternative for those looking to grow their savings.

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Risk vs reward: a fine line Of course, profiting when trading is not a given, and understanding the markets and how to navigate them is fundamental to success. Trends such as the GameStop short squeeze perfectly represent the high-risk, high-reward nature of trading – with sudden price movements providing tantalising opportunities for huge profits. Yet such events can just as quickly result in crushing losses, and for new traders not armed with the knowledge of how to carefully manage risk, this can prove devastating.

By developing a solid understanding of the markets in which they are trading, the assets they are investing in and the various options at their disposal, traders can ensure that they are not only making informed decisions regarding their trades, but that they are managing their exposure to risk. In doing so, they can ensure unnecessary losses are avoided and ultimately, that they will have a more enjoyable trading experience.

Getting started The first decision new traders need to make is which platform they use. Choosing a broker with ample regulation, an established market reputation, a range of risk management tools and the right instruments available on their platform is a vital first step and will render the trading experience both easier and – most importantly – safer. Many brokers will offer a demo account, which will give potential

customers the opportunity to test run their platform and ensure its features suit their needs.

Next, a trader must decide the type of trading they wish to undertake.

Purchasing outright assets – for instance, on the stock market – gives traders the opportunity to own a percentage of a company, or to fully own certain assets.

Alternatively, contracts for difference (CFDs) enable traders to purchase a contract that tracks the value of an asset. The trader simply receives a profit or loss based on the price movement of the asset, rather than taking physical delivery.

Finally, a trader should consider the markets they wish to trade in, and how each of these differ. From foreign exchange (FX), to stocks, to commodities, there are a multitude of different options available, each presenting their own nuances and benefits, as well as diverse risks that it is important for traders to be aware of. FX, for instance, is subject to small, regular, daily fluctuations and is highly sensitive to news triggers, while commodities are largely driven by supply and demand.

Managing risk Having a solid understanding of the markets and assets available is important to laying a solid foundation when beginning a trading journey.

Yet even the most experienced traders can fall foul of unexpected market movements. There are several techniques that can be employed that ensure risks are controlled.

TRADING

A simple and often overlooked way of controlling risk is by managing the capital-to-trade ration, which is the amount of capital left exposed to losses in trades compared to the total amount available. A sensible rule is to not exceed a ratio of 5-10% - and not to risk more than 2% of capital on one trade.

Another straightforward tool is to set up “take profit” and “stop loss” orders alongside a trade, which enable you to automatically close an open position at either a predefined rate of profit (i.e. once it reaches a certain point above the current market price), or to sell the position at a pre-defined rate below the market price, in order to minimise loss.

In addition to the above, certain brokers have enhanced risk protection offerings that allow users more solid protection against losses. Our risk management tool, AvaProtect, for instance, enables traders to purchase full protection

against losses for a predetermined timeframe. If, at the end of the period of cover, a loss has been made, the full amount of the trade is reimbursed. While such tools minimise downside risk, there are no limits to the maximum value of the trade, enabling users to benefit from higher levels of volatility without ending up out of pocket. Another advantage of this type of protection is that it allows the user to ride out any shorter-term fluctuations during the trade.

This is an exciting time to be trading and opportunities certainly remain plentiful as certain regions and sectors begin to emerge from a period of heightened volatility. While this continues to create opportunities, as always, the market can move in the wrong direction. As such, it is of paramount importance for users to ensure they are making the most informed decision possible and taking steps to protect themselves.

Dáire Ferguson CEO AvaTrade

Issue 29 | 45

TRADING

Return to work:

What will Trading Floors look like?

There has been a tremendous amount of change in the way in which we work in the last 18 months. The financial services industry is no different.

However, thanks to the strong vaccination efforts which are currently taking place around the world, there is now a sense of hope that life could soon return to ‘normal’.

As the world begins to consider the ways in which we live and work in the aftermath of the pandemic, we have a wonderful opportunity to take the best elements of remote working and create a new normal which incorporates a healthy worklife balance. Financial services organizations could achieve this through the creation of distributed hub-and-spoke offices, in addition to installing the appropriate infrastructure for employees to work remotely on a long-term basis. In order for this to come to fruition, the financial services community must overcome the obstacles of guaranteeing resilience, reliability and security, while at the same time complying with strict regulatory requirements.

Flexibility is key Despite restrictions lifting in several countries, and companies, the outlook is not necessarily supported by the entire industry, with the financial services industry not observing a mass return to the workplace since the restrictions on working in the office were lifted.

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Nevertheless, finding a balance between flexibility, reliability, scalability and security is far from easy – even for larger financial firms.

Many institutions are still under a significant amount of pressure in terms of their costs and resources, with uncertainty around what the future holds. It is important for firms to consider if there should be a split between working from the office and working remotely – a form of hybrid working. A number of banks are planning to transition to a hybrid work model, with a focus on reducing real estate costs. Further to this, financial institutions should think about individual employee preferences when it comes to working remotely on a permanent basis, as well as prepare for any potential future situations where large scale remote working may be necessary. The questions that need asking are difficult to answer, yet they are vital to the decisions financial services companies must make concerning the vendors they wish to work with and the technologies they’d like to implement.

There is good news though – many of the ingredients necessary to address these concerns already exist. For many trading companies, it is just a matter of finding and combining them in a way that fits their specific requirements. Over the course of the past decade, the industry has observed paradigm shifts in how technology services are provided, as well as in technology itself. For example, the transition towards

a subscription-based economy in addition to firms utilizing the cloud has presented technology vendors with the opportunity to create solutions that merge certainty with scalability, and flexibility with reliability. The benefits of this are felt by companies of all sizes, ensuring all firms, whether they be large or small, incumbents or newcomers, have access to the same modern, state-ofthe-art technology.

Further to this, there are many benefits to consuming technology services via a subscription, or software-as-a-service (SaaS). For those firms that have adopted a cloud-native environment will be aware, subscriptions mean businesses only need to pay for the solutions they require. They have the choice to expand and consume a greater amount as the company continues to grow. Adding to this, a subscription model means businesses won’t be using aging technologies. This is due to SaaS being evergreen, meaning that it can be easily upgraded and updated, with new access mechanisms, delivery channels and markets being available as and when required.

Trading environment: for the present and future For trading firms, being able to trade anytime, anywhere, from any device in a compliant manner is a tremendous competitive advantage in an environment which is uncertain and constantly evolving.

TRADING

Taking the example of firms that trade across multiple locations and time zones, these companies need access to a diverse set of counterparties.

As such, they must find a solution provider that offer them with global flexibility. Moreover, they also require a software trading system which is capable of switching seamlessly between a trading floor turret and a soft client located on a desktop or mobile device. As well as this, for regulated users utilizing their existing internal communications channels, firms have a duty to record these individuals. This enables superior communication between the trading floor and support staff to take place.

It is also worth considering that companies know of the importance of resilience, based on recent events.

This concerns both resilience at this present moment and in the face of future unknown challenges. They want a system that provides them with a feature of futureproofing, allowing them to adapt and maintain their advantage over competitors, regardless of what the future holds.

Therefore, trading firms anticipate their infrastructure provider to offer them a higher standard, with technology that is continuously evolving, being updated and upgraded regularly behind the scenes.

How to support the trading world post-pandemic In a post-pandemic world, there is only one thing that is certain – there will be change. Irrespective of whether companies decide to go back to pre-pandemic ways of working or not, the reality is that nearly every industry has learned a lot of important lessons based on the events of the past 18 months. This is especially true when considering the need to be adaptive and flexible, allowing your firm to pivot in whatever direction it needs to take in order to maintain resilience and thrive. By utilizing the right technologies, adopting a cloudnative environment, and leveraging the subscription model, financial services companies can ensure they are prepared to embrace the new working world that emerges in the wake of the pandemic – in whatever form it takes

Ganesh Iyer Chief Marketing and Strategy Officer IPC

Issue 29 | 47

BANKING

Global Banking & Finance Review Recognizes Santander as the Best Digital Bank in Chile

Once again, the magazine recognized the entity in this category, thus reflecting the success of its digital strategy that it has carried out with products such as Life, Superdigital, Klare, Getnet, among others. In addition, Santander was recognized as the bank with the highest digital growth in the country.

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Santander works daily to deliver new and innovative solutions to customer requirements, where the development of the digital world is essential. In this context, the entity was once again recognized by Global Banking & Finance in its 2021 edition as “Best Digital Bank in Chile” and “Bank with the highest digital growth in Chile”. Awards that reflect the progress made by strategic products such as Life, Superdigital and Klare, among others.

“We live in an increasingly digitized society, with customers who expect solutions from their companies that are up to the new challenges. For this reason, we are very proud to have once again received these recognitions. They are an endorsement of the work that our teams carry out on a daily basis and, at the same time, are a motivation to continue innovating with products that help people and companies to progress.

Innovation for Santander Chile is the way to stay sustainable”, said Marcos Thomas, head of Innovation and Strategic Alliances of Santander Chile.

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Seguros 100% digitales

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The executive recalled that “the pandemic accelerated the digitization process of many companies, regardless of their field. In our case, we had already been working on these matters, which allowed us to face the challenges of the health crisis with products that facilitated the needs of our customers, in especially difficult times”.

BANKING

The figures back up the remarkable Santander digital performance. During 2020 and 2021, the Bank strengthened its digital channels.

This produced digital customers to increase by 24% and their loyalty by 8%. In the case of Life -product with 100% digital onboarding that seeks to reach unbanked sectors and that rewards clients for their good financial performancethe total number of clients exceeds 729,000, representing a growth of 238% as of last June year over year. “Life came to revolutionize the banking industry through a new way of relating to customers. With this product for the first time their good financial behavior was recognized, which has allowed them to access various benefits, among them, a reduction in your debt interest rate. The good reception that Life has shown that it has been highly valued by the market", said Thomas.

According to the latest public information available, the net opening of accounts in Santander Chile is equivalent to more than two times the opening of total accounts in the rest of the banking system as a whole, thus reaching a market share of 27.8%. This phenomenon has been especially driven by Life.

In the case of Superdigital, there were already more than 182,000 accounts, reflecting a growth of 158%. Thanks to this prepaid digital account, launched in 2020, users can receive their salaries and other social benefits directly to their accounts, without having to go to a branch in person to collect their money. They are capable to manage money, accounts, and pay bills digitally using only their phone.

Issue 29 | 49

BANKING

Meanwhile, the entity also innovated in the insurance market through Klare, the first 100% digital insurance broker in the country, which compares insurance between different providers quickly and transparently.

Klare already has 48.000 monthly visits and sells life, health, sports and dental plans. Klare continues to increase the offer of insurance products and recently launched insurance for medical emergencies, oncological insurance, and a new life insurance with a pension savings scheme.

Digital strategy: one of the keys to success In November 2020, the entity held a virtual meeting to publicize Santander's digital strategy for the 20212023 period. On the occasion, Miguel Mata, CEO of Banco Santander, explained that this would be based on two pillars: 1.

Run the Bank a consumer-centric approach with a phygital distribution model and a value proposition based on what people are trying to achieve. The objectives are to maintain a high level of customer satisfaction, increase productivity in all channels, be more efficient and profitable, which was reflected in two initiatives: Santander Life, with its strong growth in the opening of Life Accounts, and WorkCafé, which includes a community to help entrepreneurs.

2.

Change the Bank seeks to transform the Bank into a benchmark based on the advantage of high market share by developing a technology platform for customers to use as a channel or software developer to increase their business. In this regard, Santander leverages its relationship with the Group and global projects, such as Pago Nxt, which intends to develop three vertical solutionsMerchant, Trade and Consumer solutions- that can be exported or have already been exported to Chile.

Examples include Superdigital, Klare, Autocompara, One Pay Fx, and Getnet.

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Indeed, Getnet has made significant strides in the payment industry. This acquiring network uses a four-part model to operate, offering a payment solution especially to small and medium-sized businesses. Thanks to Getnet, customers can receive their payments on the same day. It also offers various plans according to the needs of customers with POS that can be fixed or mobile, which automatically detects what type of card the customer has. Currently, there are more than 25.000 clients that are part of Getnet, with 28.000 POS sold.

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