www.globalbankingandfinance.com Issue 51 Austria’s Kathrein Privatbank: CHOM CAPITAL: Integrating Sustainability Into Every Stage of the Investment Process Continuing to Apply the Personal Approach in its 99th Year
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editor FROM THE
Dear Readers’
Founded by Carl Kathrein in 1924, Kathrein Privatbank is one of the leading private banks in Austria, offering customised investment advice, asset management, financing and consulting to families, entrepreneurs and foundations. Since joining Kathrein Privatbank as CEO in May 2019, Wilhelm, together with his team, has been responsible for the successful implementation of its ambitious growth strategy. When we spoke, he filled me in on how Kathrein Privatbank is prepared to help clients navigate the most difficult challenges being faced in the current financial climate. (Page 24)
NICE Actimize recently held its annual financial services industry technology conference, ENGAGE 2023, with more than 500 participants and 200 financial institutions attending the New York event. Generative AI was a key trend addressed throughout the conference, including a keynote forum that uncovered the “Risk and Rewards of Generative AI," led by the company’s Global Head of Product, Chad Hetherington, and Global Head of Engineering, Yossi Levin. The technology executives saw positive growth for Generative AI innovations with a wide range of use cases under development that could increase productivity throughout bank operational function. Read their full discussion on page 22.
CHOM CAPITAL GmbH is an owner- operated asset management boutique with a proven track record across European equities. It is comprised of a team of highly qualified specialists who are committed to “delivering entrepreneurial success and serving the best interests of our investors,” as well as to its core values of transparency, responsibility and sustainability. I spoke to Christoph Benner, who in addition to being a founder also fulfils the roles of CEO and Portfolio Manager, and Benedikt Kirsch, Portfolio Manager and Head of ESG, who joined the team in 2018. We discussed the value proposition offered to investors by CHOM CAPITAL, the competitive advantages that arise from its ESG approach, and the ‘SUSTAINAMENTALS’ that drive its performance. (Page 16)
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Wanda Rich Editor
Issue 51 | 05 EDITORS LETTER
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I am pleased to present Issue 51 of Global Banking & Finance Review. For those of you that are reading us for the first time, welcome.
14
BANKING Open Finance is changing the way we bank
28
BUSINESS
Businesses must empower their staff to plan for their financial future: here’s how Chieu Cao, CEO, Mintago
44
How financial services firms can prepare for the impending FCA Consumer Duty
Dr Robert Schumacher, Managing Partner, Bold Insight
46
Is your business ready for the new family-friendly employment laws?
Adrian Lewis, Director, Activ People HR
48
The essential guidelines for succeeding in times of crisis
32
INVESTING Turnaround time: private equity could be crucial to sub-Saharan Africa’s economic resurgence
By Bryan Turner, Partner, Spear Capital
06 | Issue 51 CONTENTS 20
14
Rajesh Saxena, CEO, iGCB, Intellect Design Arena
Brian Klingbeil, CSO, Ensono 48
10
The Impact Of Payment Partnerships for business growth in the E-Commerce Landscape
Anjulie Patel, VP of Partnerships, Nucleus365
E-wallets: The payment upgrade for marketplaces
Guido Kuhring, Head of Sales for Central and Northern Europe, Mangopay
12
TECHNOLOGY
Conversational AI can be transformational for customer service in the insurance industry
Sanjeev Kumar, VP EMEA, Boost.ai
Navigating the software testing market in the post-pandemic era
Suhail Ansari, Chief Technology Officer, Tricentis
Financial services companies seek to unlock efficiencies of cybersecurity automation
Leon Ward, Vice President of Product Management, ThreatQuotient
Read it on page 22
Risks and Rewards of Generative
AI: Productivity to Accelerate
Chad Hetherington, Global Head of Product, NICE Actimize Yossi Levin, Global Head of Engineering, NICE Actimize
Issue 51 | 07 CONTENTS
FINANCE
OpenText
can become a more powerful force for charitable giving
and
18 38 42
Friend, not foe: turning data to your advantage in financial services.By By Monica Hovsepian, Global Industry Strategist,
How wealth management firms
Joe Fisher, President
CEO, Ren
20 34
Austria’s
Continuing to Apply the Personal Approach in its 99th Year
Read it on page 24
CHOM CAPITAL:
Read it on page 16
Benedikt Kirsch, Portfolio Manager and Head of ESG, CHOM CAPITAL
Christoph Benner, Founder, CEO, and Portfolio Manager, CHOM CAPITAL
08 | Issue 51 CONTENTS
Wilhelm Celeda, CEO, Kathrein Privatbank
Integrating Sustainability Into Every Stage of the Investment Process
Kathrein Privatbank:
The Impact Of Payment Partnerships for business growth in the E-Commerce Landscape
Managing fast and secure financial flows has always relied on successful partnerships designed to create mutually beneficial outcomes. Recent findings from PWC reveal that 86% of surveyed professionals in the payments sector agree that traditional payments providers will collaborate with fintechs and technology providers as a primary of innovation. Collaboration is a well-established practice across the financial sector, be it banking, payments or e-commerce, with the benefits reaching far beyond the ability to deliver cross-border solutions.
With digital commerce projected to reach a total transaction value of US$6.03tn in 2023, the rise and continued growth of digital e-commerce, which 89% of payments industry experts believe will persist, has led to an increased focus on payment partnerships.
While the payments sector possesses expert knowledge of payment-making processes and partnerships, merchants often lack awareness of the nuances in partnership types and the benefits of forming them. This lack of understanding can impede business growth, market competitiveness, and limit opportunities for higher profits and reduced risk.
What Is A Payment Partnership?
A payment partnership occurs when two or more businesses utilise each other’s infrastructures for mutual benefit. Typically, one business provides the technological
components to facilitate secure domestic or cross-border payments, while the other offers one or more sales channels and customer bases.
Partnerships depend on various factors such as sector, demographic, products, and market size of the partnering businesses. They can also be flexible or fixed-term, dependent on sales and payment success figures. Partnerships can encompass a business’s entire operation or focus on specific aspects, such as customer bases in a particular region or payment processing technology designed for a specific customer base or payment method.
The Benefits Of Payments Partnerships
The first benefit of partnerships is increased reach and exposure, leveraging partner networks to tap into new customer bases. By doing so, businesses can explore untapped markets and tailor their product and service offerings to newly-gained demographics, positioning themselves for faster growth opportunities.
It’s important to understand that partnerships are not limited to domestic or established markets. They can be just as, if not more, effective in markets primed for growth. Let’s take the UAE as an example, the region ranked as the fastest-growing e-commerce market in the world in 2022 and has a projected value of $17.2billion by 2027. At Nucleus365, we have seen an increase in merchant exploration
into rising markets, utilising our service to create effective partnerships and secure financial flows in regions such the UAE –namely Dubai, alongside the likes of Hong Kong and Europe.
Accessing new yet established markets also provides valuable market data, performance history, and experience to inform business decisions. Partnerships enable businesses to enter the market more swiftly by leveraging established supply chains and relationships of their partners, eliminating the need to start from scratch.
Payment partnerships actively work to reduce risk, which is one of their key advantages. The insights and customer bases previously unobtainable through partnerships allow businesses to make informed decisions without the trial and error processes that often come with increased risk. Moreover, accessing new markets diversifies sales, mitigating the negative impact of diminishing returns and a market downturn in a specific region, should it occur. By partnering, businesses can share the financial burden of payment investments and no longer rely solely on their own business performance, thus increasing operational resilience.
Businesses often underestimate the benefits of partnerships in encouraging information-sharing between companies. The most successful partnerships go beyond market growth, new customer bases, and risk reduction.
10 | Issue 51 FINANCE