AI and the Democratisation of Financial Services: Navigating Opportunities and Challenges for Inclusive Prosperity

The financial services landscape is undergoing a significant transformation, propelled by technological advancements, regulatory reforms, and innovative fintech solutions. While traditionally dominated by large institutions serving a limited segment of the population, the industry is witnessing a shift towards greater inclusivity. Among the catalysts of this change is artificial intelligence (AI), whose ability to process vast datasets, automate complex tasks, and provide personalised insights holds promise for expanding access to financial services. However, realising this potential requires a nuanced understanding of both the opportunities and the challenges involved.

The Multifaceted Role of AI in Financial Inclusion

AI is one of several factors contributing to the democratisation of financial services. Alongside mobile technology proliferation, open banking initiatives, and microfinance innovations, AI offers tools that can help bridge the gap between the banked and the unbanked. Its capabilities in data analysis and automation can enhance service delivery, risk assessment, and customer engagement.

For instance, AI-driven platforms can analyse alternative data—such as mobile phone usage, utility payments, and social media activity—to assess the creditworthiness of individuals lacking formal financial histories. This can open doors to credit for entrepreneurs and small businesses that traditional models might overlook.

Addressing the Digital Divide

Despite its potential, AI's effectiveness in promoting financial inclusion is contingent upon access to technology and digital literacy. In many underserved regions, limited internet connectivity, lack of affordable devices, and inadequate technological infrastructure pose significant barriers. According to the World Bank, nearly half of the global population still lacks access to the internet, disproportionately affecting rural and low-income communities.

Efforts to leverage AI must therefore be coupled with initiatives to improve digital infrastructure and education. Public-private partnerships can play a crucial role in expanding network coverage, subsidising devices, and offering digital literacy programs to empower individuals to utilise AI-enabled financial services effectively.

Navigating Algorithmic Bias and Ethical Considerations

AI systems are only as unbiased as the data and algorithms that underpin them. There is a risk that AI could inadvertently perpetuate or even exacerbate existing biases, particularly against marginalised groups. For example, if historical lending data reflects discriminatory practices, AI models trained on such data may continue to disadvantage certain populations.

To mitigate this, developers and financial institutions must prioritise fairness and transparency in AI models. Implementing rigorous testing for bias, involving diverse teams in model development, and adopting explainable AI techniques can help ensure that AI decisions are equitable and understandable to users.

Enhancing Financial Literacy Through Technology

AI-powered chatbots and virtual assistants offer opportunities to improve financial literacy by providing accessible, personalised guidance. However, relying solely on AI may not address the nuanced needs of all individuals. Complex financial concepts often require human interaction and culturally sensitive approaches.

Combining AI tools with community-based education programs can enhance their effectiveness. For instance, AI can identify common areas where users struggle and inform the development of targeted workshops or support services facilitated by financial advisors.

Infrastructure and Regulatory Challenges

Deploying AI solutions in finance necessitates robust technological infrastructure, including reliable internet access and cybersecurity measures. In regions where such infrastructure is lacking, investments are needed to build and maintain the necessary systems.

Regulatory frameworks must also evolve to address the unique challenges posed by AI in finance. This includes setting standards for data privacy, algorithmic accountability, and consumer protection. Policymakers should engage with technology experts, financial institutions, and civil society to craft regulations that balance innovation with safeguards against misuse.

Economic Impact and Job Considerations

While increasing access to financial services can stimulate economic activity, the relationship between financial inclusion and economic growth is complex. Factors such as political stability, education levels, and market conditions also play significant roles. Moreover, the automation capabilities of AI could lead to job displacement in the financial sector, affecting roles in customer service, underwriting, and beyond.

To address potential negative impacts, workforce development programs can help reskill employees for new roles that emerge alongside AI adoption. Emphasising human-AI collaboration rather than replacement can preserve jobs while enhancing service delivery.

Cultural Sensitivity and Customisation

Financial behaviors and preferences vary widely across cultures and communities. AI solutions must be tailored to fit the specific needs and contexts of different populations. This includes supporting multiple languages, respecting local customs, and being adaptable to various regulatory environments.

Involving local stakeholders in the design and implementation of AI-enabled services can improve adoption rates and ensure that solutions are relevant and effective.

Data Quality and Privacy

AI's effectiveness hinges on access to accurate and comprehensive data. In regions with inconsistent record-keeping or informal economies, collecting reliable data poses a challenge. Initiatives to standardise data collection and integrate alternative data sources can enhance AI's capabilities.

At the same time, protecting users' personal and financial information is paramount. Robust data privacy laws and security measures are necessary to prevent breaches and maintain trust in AI-driven financial services.

Environmental Considerations

The deployment of AI technologies has environmental implications due to the energy consumption of data centers and computational processes. Sustainable practices, such as optimising algorithms for energy efficiency and utilising renewable energy sources, should be incorporated into AI development strategies.

Collaborative Efforts for Inclusive Prosperity

Achieving the democratisation of financial services through AI requires collaboration among governments, financial institutions, technology companies, non-profit organisations, and communities. Successful initiatives have demonstrated the value of such partnerships:

M-Pesa in Kenya: Combining mobile technology with financial services, M-Pesa has enabled millions of unbanked individuals to perform transactions, save money, and access credit. While not solely AI-driven, its success illustrates the impact of technological innovation on financial inclusion.

Kiva's Protocol in Sierra Leone: Utilising blockchain and biometric data, Kiva and the government of Sierra Leone have worked to create a national digital identification system to facilitate access to credit. AI can enhance such systems by analysing data to offer tailored financial products.

Regulators play a crucial role in fostering an environment conducive to innovation while safeguarding consumer interests. Clear guidelines, regulatory sandboxes, and international cooperation can support responsible AI deployment.

A Balanced Path Forward

AI holds significant promise for expanding access to financial services and promoting inclusive prosperity. However, realising this potential requires addressing the multifaceted challenges associated with technology access, ethical considerations, regulatory frameworks, and cultural contexts.

By taking a holistic approach that combines technological innovation with infrastructure development, education, and policy reforms, stakeholders can work towards a financial ecosystem that empowers individuals and communities worldwide.

Conclusion

The journey towards democratising financial services is complex and requires careful navigation of opportunities and obstacles. AI is a powerful tool in this endeavor but is not a panacea. Collaborative efforts that prioritise inclusivity, fairness, and transparency can help harness AI's capabilities for the greater good.

Ensuring that everyone, regardless of background, gender, or location, has the opportunity to achieve financial well-being is an ambitious goal. With deliberate and thoughtful action, it is an attainable one that can contribute to a more equitable and interconnected world.


Global AI Governance: A Roadmap for Ensuring Humanity’s Future

As artificial intelligence rapidly transforms our world, the United Nations High-Level Advisory Body’s Governing AI for Humanity report outlines the critical need for a global governance framework. With recommendations focusing on inclusivity, human rights, and international cooperation, the report charts a path towards equitable AI development and the mitigation of its risks.

The Need for AI Governance

The rapid advancement of artificial intelligence (AI) presents both unprecedented opportunities and significant risks. On one hand, AI holds the potential to address global challenges, ranging from optimising energy grids and improving healthcare to contributing to the achievement of the Sustainable Development Goals (SDGs). On the other hand, if AI is left ungoverned, its benefits could be concentrated in the hands of a few powerful states, corporations, and individuals, exacerbating global inequalities.

The Governing AI for Humanity report stresses that while AI can drive positive change, the risks associated with its unchecked development are significant. Issues such as bias, surveillance, and a lack of accountability in AI systems are already affecting societies, and as AI becomes more opaque and autonomous, it challenges existing regulatory frameworks. This necessitates a global, collaborative approach to governing AI in a way that ensures equitable distribution of its benefits while mitigating its risks.

AI is inherently transboundary, often operating across borders, which complicates efforts to develop effective governance structures. As such, national-level regulations are insufficient for addressing the complexities of AI deployment. The report highlights the need for a unified international effort to create governance frameworks that can oversee the responsible development of AI globally.

Risks and Challenges

AI presents numerous risks, ranging from concerns over privacy and surveillance to the perpetuation of biases in decision-making systems. These risks are not hypothetical. For example, large language models, widely used in applications such as chatbots and content generation, are prone to "hallucinating" — providing incorrect information confidently, which can severely undermine trust in AI systems.

The risks extend beyond privacy and bias. AI has the potential to disrupt global peace and security, particularly through its weaponisation. Autonomous weapons systems, AI-driven cyberattacks, and the proliferation of AI-generated disinformation pose real threats to international stability. As AI systems increasingly integrate into critical societal functions, such as infrastructure management and healthcare, the need for robust governance mechanisms becomes more urgent.

The general-purpose nature of AI further complicates governance efforts. AI’s ability to be applied across multiple domains — from healthcare and finance to military applications — means that regulating it under existing sector-specific frameworks is challenging. A holistic, globally coordinated governance framework is required to address the multifaceted risks associated with AI, while also promoting its responsible development.

A Holistic Global Approach

The Governing AI for Humanity report calls for a comprehensive and inclusive global framework for AI governance. One of the key issues highlighted is the underrepresentation of voices from the Global South and other marginalised communities in current AI governance discussions. Ensuring that these perspectives are included in decision-making processes is essential for the creation of governance structures that work for all of humanity, rather than just a privileged few.

The report underscores the need for AI governance to be rooted in international human rights law. Clear accountability mechanisms must be established to protect vulnerable populations and ensure that AI is developed and deployed in ways that are inclusive and equitable. The establishment of an international scientific panel is proposed to provide ongoing guidance on the development and use of AI, ensuring that policies are informed by the latest scientific research.

In addition to inclusivity, the report emphasises the importance of promoting cooperation between nations. AI is a global technology, and no single country can address the challenges it presents in isolation. A coordinated international effort is required to develop shared norms, prevent regulatory fragmentation, and avoid a "race to the bottom" where states compete to relax safety and ethical standards.

Enabling Factors for Effective AI Governance

For AI to benefit all of humanity, several key enablers must be put in place. One of the most important factors is governmental and intergovernmental action to incentivise participation from the private sector, academia, and civil society. Governance frameworks must not only address the risks associated with AI but also promote broader societal goals, such as reducing inequality and promoting sustainable development.

A critical enabler discussed in the report is the development of a global data governance framework. Data is the foundation of AI systems, and its collection, storage, and use must be governed by ethical principles that protect privacy and promote fairness. Without clear standards for data governance, there is a risk that data exploitation could exacerbate existing inequalities.

Another enabler is international collaboration on AI standards. Shared standards are essential for ensuring interoperability between AI systems and preventing regulatory gaps that could lead to unsafe or unethical uses of AI. Collaboration between countries on AI standards is also crucial for mitigating risks such as the development of autonomous weapons, where unregulated competition could have devastating consequences.

The Role of the United Nations

The United Nations is uniquely positioned to lead the global governance of AI. With its broad membership and established role in promoting international cooperation, the UN can serve as a platform for facilitating dialogue between nations and coordinating global efforts to ensure that AI is developed in the public interest.

The report recommends the creation of an AI office within the UN Secretariat, which would serve as a focal point for AI governance efforts. This office would coordinate initiatives such as policy dialogues, standards development, and capacity-building efforts, ensuring that the UN system speaks with one voice on AI governance. By leveraging its existing structures and expertise, the UN can play a central role in fostering an inclusive, global approach to AI governance.

Recommendations for the Future

The Governing AI for Humanity report outlines several concrete recommendations for shaping the future of AI governance. First, it proposes the establishment of an independent international scientific panel on AI, which would issue regular reports on AI developments, risks, and opportunities. This panel would ensure that policymakers are equipped with the latest knowledge to make informed decisions about AI governance.

Second, the report calls for a twice-yearly policy dialogue on AI governance, bringing together governments, private sector stakeholders, and civil society to share best practices and develop cooperative solutions to AI-related challenges. This dialogue would provide a forum for addressing transboundary issues, ensuring that AI governance remains responsive to emerging risks and opportunities.

Finally, the report advocates for the creation of a global AI fund to support capacity-building efforts in developing countries. The aim of this fund is to ensure that all nations, regardless of their level of economic development, have access to the resources needed to harness the potential of AI. By promoting equitable access to AI technologies, this initiative would help close the digital divide and ensure that AI’s benefits are distributed globally.

The Path Forward

As artificial intelligence continues to reshape societies and economies worldwide, the need for robust governance structures becomes ever more critical. The Governing AI for Humanity report offers a detailed roadmap for how the international community can come together to govern AI in a way that benefits all of humanity. Through international cooperation, inclusive governance, and a commitment to human rights, it is possible to unlock AI’s potential while mitigating its risks.

The future of AI is still being written. By taking decisive action now to govern AI responsibly, we can ensure that it serves as a force for good — fostering innovation, promoting equality, and safeguarding the well-being of future generations.

This article is based on Governing AI for Humanity report from the United Nations | AI Advisory Body.


How the Covid-19 Pandemic Reshaped the Business World

The crisis rocked global economies and upended daily business life in a series of upheavals and revolutions.

Covid-19 impacted the global business landscape as much as it did daily life, bringing changes that no one could have predicted.

The crisis also accelerated, curtailed, or wildly altered existing trends in technology, workplace relationships, and commercial tactics. There were many facets to this sudden upheaval.

Some changes were radical and swift, others more subtle but decidedly disruptive. Many are still with us, and expected to continue for years to come. New patterns came in unexpected bursts. Take, for example, the 677 percent rise in active users for video-conferencing platform Zoom – in just one month, March of 2020.

"These transitions have taught us the value of adaptability, resilience and creativity, now seen as vital to prosperity."

Organisations around the world were forced to shift to remote work to limit the spread of the virus now widely believed to have escaped from a research institute in Wuhan, China. At the time, where it had come from was baffling – but less important than dealing with its immediate fall-out.

Digital Transformation

In a matter of weeks, organisations converted entire workforces to a “virtual” model, relying largely on platforms such as Zoom, Microsoft Teams, and Slack.

This transition hastened the adoption of technology that brought out new work cultures, and provided resilience in time of need. Flexible working arrangements are now common, altering employee expectations and corporate rules on productivity, communication, and collaboration.

The Cloud and Cybersecurity

As data storage and access became increasingly decentralised, Cloud computing became critical to continuity. This challenge presented firms with fresh cybersecurity threats and fears, from phishing scams to ransomware assaults. Businesses responded by tightening security protocols and investing in sophisticated defence systems to protect sensitive data.

E-commerce Growth

As brick-and-mortar stores closed their doors, e-commerce was trundling down the runway. It took off big time, with platforms such as Amazon and Shopify surging to new highs. “Traditional” business was caught up in a flurry of activity as companies rushed to increase their online presence and stay alive.

Many succeeded, and in their adaptation engendered a shift in customer behaviour: online shopping has never looked back.

Supply Chains

What started as a health crisis exposed substantial weaknesses in many other areas: global supply chains, PPE shortages, and shipping delays. Businesses switched from a "just-in-time" approach to inventory to a "just-in-case" strategy, acquiring materials from a variety of sources and moving operations closer to home to minimise delays.

Technological Solutions

AI and blockchain emerged as critical tools for managing supply chain breaks and risks. Companies began employing machine-learning and AI to forecast changes in demand, and avoid potential bottlenecks. Blockchain provided the transparent, tamper-proof tracking of items as they moved from producer to user, allowing businesses to respond with some confidence to the swirling cloud of disruption.

Health and Safety Protocols

Offices and other workplaces were reinvented, with physical locations now prioritising employee safety and wellbeing. Touchless systems, enhanced ventilation, and intelligent layout were new standards to be considered. "Hot-desking" became a thing, as did space-booking software to reduce density issues.

Hybrid Work Models

Hybrid work models combining in-office and remote work quickly gained appeal – lasting appeal, it turns out. Organisations are still experimenting with staggered schedules to provide employees with options and a degree of insulation while allowing for some in-person interaction. These trends altered how we view the workplace, and caused wild changes to overheads – and the commercial real estate industry as a whole.

Changes in Business Strategy

In steady, creeping reaction to pandemic-induced uncertainty, corporations adopted more agile planning strategies. Long-term goals were supplemented by shorter, iterative cycles that allowed for swift responses to changing market conditions and consumer behaviours.

Covid-19 highlighted the importance of corporate social responsibility, with firms turning their focus to sustainability and healthcare. Most moved to a system of promoting employee wellbeing, indicating a broader trend towards healthier, purpose-driven business models.

Reskilling and Upskilling

The pandemic altered the labour market, too. There was a sudden increase in demand for tech-savvy professionals capable of taking the digital reins. Companies invested in training programmes to reskill and upskill employees, recognising the importance of continual learning in a period of fast technological change.

Gig Economy

The epidemic also exposed the inherently unstable nature of the gig economy. As millions of freelancers and small-scale entrepreneurs lost their jobs, the calls for stronger labour safeguards became more insistent. Companies are still looking into new flexible work arrangements, hopefully increasing financial security for “non-traditional” workers.

Burnout and Stress Management

The blurring of work and home life, along with pandemic-related stress, took a human toll in the form of widespread burnout. In response, businesses extended wellness programmes and adopted flexible working hours. Empathetic leadership styles and mental-health support services became key to employee-retention and talent-attraction tactics.

Company Culture

On the positive side, corporate cultures have developed to become more welcoming and helpful, emphasising empathy, communication, and a sense of belonging. This transformation in leadership style has put a renewed emphasis on staff engagement and loyalty.
The pandemic sparked radical transformation, worldwide, across the economic sector. Things that had not previously been considered – remote working, digital interfaces, supply chain resilience and mental health support – have become essential components of the New Normal.

These transitions have taught us the value of adaptability, resilience and creativity, now seen as vital to prosperity. While some uncertainties linger, one thing is certain: the post-Covid era delivered some positives.

The skills and lessons learned will reward organisations as they navigate the challenges and opportunities of an unpredictable world, and an integrated global economy.


There's an App for That…

Is the universal digitalisation of services turning consumers into unpaid admin staff?

With a mobile application available for almost every conceivable task, are our lives becoming easier by the day?

You might (unthinkingly) think so, if that isn’t a contradiction. But consider the apocryphal case of a young woman trying to rectify an inconsistency in her power bill. She anticipates a straightforward call with a customer-service rep, but finds herself lost in a labyrinthine array of options, FAQs and troubleshooting tips on the company app.

She ends up dedicating a considerable chunk of her day, resolving – by herself, for herself – a problem due to a company error. One that would traditionally have been taken care of by an upbeat professional with a good telephone manner.

This encapsulates a fundamental flaw in the drive to digitalisation. Despite the promised ease-of-use, our growing dependence on digital platforms puts the burden of admin on the shoulders of the user.

"Despite the promised ease-of-use, our growing dependence on digital platforms puts the burden of admin on the shoulders of the user."

Essential service providers, such as banks and healthcare institutions, have undergone a rapid shift and now keep their customers at one remove. Although the tech is supposed to provide smoother customer experiences, we, the punters, are now required to troubleshoot, manage, and resolve difficulties for ourselves.

Is that fair…?

Digital Evolution

Look at the plethora of digital platforms and apps that have become available – or obligatory – over the past two decades. From the dinosaur days of analogue to the shift to digital in the early noughties, progress was driven by the advent of high-speed internet – and the sudden ubiquity of smartphones. Businesses promptly pushed the heap of personal-service queries back towards us. It simplified client interactions for them, and cut operating costs. Win-win. And to be fair, apps are capable of providing quick and easy access to a huge range of products and services.

This transformation allegedly revolved around a commitment to enhancing efficiency and tailoring solutions to customer needs. Online platforms now have direct access, with automated systems, chatbots, and self-service technologies lobbed to the burgeoning crowd of users struggling with some problem or other.

This was a remarkable change in the way administrative duties are undertaken. Old-school customer support models gave way to digital-first solutions that put customers in the driving seat – and in charge of their own, sometimes complex, account issues. In-person assistance? Helplines? Forget about it. This is the age of digital interfaces, queries that must fit precise FAQ criteria, and countless chatbots languishing in the ether, available, but likely to confuse us still further.

Despite some indisputable advantages, this has had the general effect of putting strain on consumers. Elderly ones, especially, battle with sudden learning curves. They are forced to dedicate significant amounts of time confronting possible data-security threats and getting their heads around an ever-expanding range of technologies.

Senior citizens and people with disabilities were suddenly floundering in the churning waters of progress. Slick app use necessitates a degree of digital literacy that is not yet universal. Interfaces are not always user-friendly, and some access facilities can’t be operated with screen-readers.

Users will learn, each at their own pace, but configuring a new app, resolving a technical problem, or locating a certain functionality can result in hours of experimentation and guesswork. Customer surveys indicate widespread dissatisfaction with the system as it stands, and many respondents express frustration, or even anger.

The increased reliance on digital platforms places greater responsibility on users to manage their data, necessitating enhanced security and privacy measures. It also entails the ongoing nightmare of generating, safeguarding – and remembering – reams of passwords containing a capital letter, a number and at least six characters. Then there is two-factor authentication, and the challenge of comprehending data-sharing protocols. Insufficient transparency here results in anxiety about how best to protect one’s information.

Lack of Customer Support

Self-service tools frequently fall short in the bid to resolve even relatively simple problems. Users find themselves trapped in a repetitive flow of screens, none of which does what you need it to. Many platforms don’t even offer direct communication with a human. You can talk to the bot or invest still more time searching through the online-help resources that may or may not be relevant to you.

Effects on Business and Society

User dissatisfaction has a negative effect on brand loyalty. The transfer of admin chores to customers has resulted in a growing discontent. Negative user experiences lead to higher rates of customer attrition. People are likely to cut ties with corporations that insist on intricate procedures that leave questions unanswered and challenges unresolved.

All this has widened the digital divide, restricting the lives of individuals who find themselves unable to adapt – with knock-on social and economic consequences. Individuals who battle with newfangled gadgets or lack Internet access face substantial obstacles in reaching crucial services. They find themselves marginalised and unable to find stability in a morphing, digitalised world.

Mental and psychological strain can be exacerbated by the onerous tasks involved. Some people may feel overwhelmed by the ongoing challenge of staying up-to-date and navigating intricate systems.

Shifting the Burden

From a corporate standpoint, transferring the administrative responsibility to users has obvious benefits. Cost efficiency is a no-brainer, and an automated customer support system means fewer employees. Companies can cut their labour expenses and prop-up customers’ online difficulties with a tiny skeleton staff.

Data Collection and Analytics

By motivating – or forcing – people to take charge of their own IT and admin tasks, organisations get the spin-off benefit of gaining vital data for marketing purposes. Analytics can uncover user preferences and behaviours, as well as areas of dissatisfaction.

Digital platforms make scalability and personalisation possible, and provide tailored recommendations for companies. This theoretically enables the accumulation of more customers via a “customised client experience”.

Resolutions and Prospects

So, what can be done to improve matters?

Employing user-centric design is a good start. Platforms should prioritise design appropriate for the needs and preferences of their users, with a focus on user-friendliness. Problem-solving can be expedited via online tutorials, multilayer customer assistance options, and straightforward navigation interfaces. Iterative testing and harnessing user input are crucial for future enhancement.

Hybrid service models combine the benefits of digital and traditional customer care. Models which integrate digital tools with human assistance go some way to guaranteeing appropriate support. Live chat can complement chatbot tech, but in-person or phone support should continue to be accessible.

Companies must implement transparency guidelines to confidently control, protect, and manage customers’ data. Explicit instructions on security measures and the customisation of privacy settings can mitigate apprehension for those who experience unease while doing online tasks.

Governments, corporations, and educational institutions should establish tech-literacy initiatives to help. Providing instruction in fundamental digital skills, optimal security measures, and effective problem-solving techniques can empower users, and make them feel comfortable interacting with online services.

In a world where digital dominates, companies need to reconsider the thoroughly modern approach and ensure that there is still access to human assistance. Chatbots and FAQ pages should be backed-up by a staff of competent professionals.

The existing strategy imposes an overwhelming, and unfair, administrative load on us – the people, the customers, the clients, the general public. Having to operate complex systems and handle sensitive information can lead to anxiety and annoyance for those lacking IT fluency.

The advantages of transferring duties to users are clear from a business perspective, but it’s important not to disregard the potential long-term impacts. A smooth and comprehensive customer experience is attainable by integrating tech platforms with a friendly human voice.

With some lateral thought and compassion, firms and policymakers can pave a welcoming path to our digital future, where corporate convenience is not achieved at the expense of customer stress. It’s time for some innovation, and the allocation of resources to find solutions that will improve digital services – for everyone.


Literally Centuries of Experience and Expertise Behind This Bank

The oldest financial institution in Germany has been going strong since the 16th Century…

Berenberg is Germany's oldest private bank — founded in 1590. Over the centuries, it has embraced change but preserved its values. Owned and led by the Berenberg family and personally liable partners, it prides itself on offering world-class financial services. It swiftly addresses client needs while maintaining a broad, strategic perspective.

[caption id="attachment_27158" align="aligncenter" width="900"] Director Michael Kreibich & Head of Wealth and Asset Management Klaus Naeve[/caption]

Comprehensive Financial Services

Berenberg combines expertise in wealth management, asset management, corporate banking, and investment banking. “We are connected and work as one team,” says Klaus Naeve, Head of Wealth and Asset Management. “Not only with our colleagues but also with our clients.”

Leadership Spotlight: Michael Kreibich

Joining Berenberg in 2009, Michael Kreibich spent a decade as a portfolio manager and product specialist, overseeing bespoke mandates and mutual funds. In 2019, he became Founder and Head of Investment Consulting, building up a team responsible for strategic asset allocation & asset liability management services.

After completing his banking apprenticeship, Michael earned a diploma in business administration at the Frankfurt School of Finance & Management as well as qualifications as a Chartered Financial Analyst and Chartered Alternative Investment Analyst. At the Frankfurt School of Finance & Management, he now lectures on portfolio management and strategic asset allocation.

Introducing Berenberg Investment Consulting

Since 2019, the Berenberg Investment Consulting team has been developing and implementing customized Strategic Asset Allocation (SAA) and Asset Liability Management (ALM) studies for the bank’s entire investment platform with assets totaling approximately €40 billion. It is serving institutional investors, corporate pensions, single-family offices, endowments, and ultra-high-net-worth individuals (UHNWIs).

The team continually enhances its in-house consulting infrastructure to deliver precise strategic advice. The platform’s system enables the swift preparation of tailor-made studies, highly valued by investors.

Driven by Innovation

Berenberg’s latest advancement is a new SAA & ALM innovation hub. Its interactive dashboard elevates investor experience by enabling real-time collaboration with senior consultants to explore various investment strategies. The back-end engine simulates future asset and liability trajectories for the next 40+ years, providing key performance, risk, and balance sheet metrics.

A macro-economic stress scenario simulator, developed in collaboration with scientists from the University of Copenhagen, offers insights into tail risks that investors’ allocations may face and allows precise modeling of scenarios relevant to investors, such as equity market downturns combined with specific economic conditions and central bank policies.

In addition, a proprietary sustainability database provides insights into the carbon impact of potential portfolio configurations. Beyond ESG scores, a carbon-intensity tracker highlights transitional risks related to emission pricing and overall environmental footprint.

Maximizing added value for investors

Berenberg Investment Consulting assists investors across all groups in determining the optimal asset allocation according to their specific investment goals. The team considers return targets, future cash flows and regulatory requirements (including ESG) while minimizing risk exposure and ensuring planning security.

With its extensive knowledge and cutting-edge technology, Berenberg Investment Consulting navigates investors through complex financial landscapes with confidence and maximizes the added value for their investment strategy.


Lego-like Building Blocks from Recycled Plastic: Click to Win?

This playful idea could conceivably be a solution to our waste problem. But there are hitches…

The global plastic epidemic has fed billions of tonnes of non-biodegradable trash into landfills and oceans over the decades — and we’re running out of options.

[caption id="attachment_27176" align="aligncenter" width="900"] Lego[/caption]

But one new idea, partly inspired by the children’s game Lego, shows some promise. It involves transforming the offending garbage into construction blocks — a two birds, one-stone solution which addresses pollution and housing shortages.

But, alas, experts believe this novel approach is not truly viable — yet — and there are obstacles to overcome.

Reusing plastic for packaging has proven problematic in many regards, and only a small percentage is ever recycled. According to the Environmental Protection Agency (EPA), this inefficiency is caused by variables including contamination, sorting problems, and cost. So what about creating building blocks, rather than food-grade plastic for reuse? It would have two obvious benefits: cutting pollution and providing inexpensive, lightweight building materials. Notable projects, such as those led by Oscar Mendez in Colombia, have proved the basic effectiveness of this scheme. Mendez's company, Conceptos Plásticos, converts trash into bricks for residential construction.

"Technological advances could help in coming years; chemical recycling, for example, breaks plastics down into their constituent elements."

Recycling presents technical challenges due to diverse melting temperatures and characteristics of various materials. Combining incompatible plastics can reduce structural integrity. Contamination with food or other contaminants further complicates the process, making economic viability uncertain. Then there are high energy demands, and an as-yet restricted market to consider.

Plastics are combustible — incinerating them has been considered in the past — but not without the emission of toxic fumes. While it is notoriously long-lasting, using it to make bricks that are long-lasting and structurally sound is a way off yet.

Many polymers do eventually degrade, especially when exposed to UV light — but that very ray of hope might jeopardise the possibility of making homes with them. Building laws and regulations add extra hurdles; high safety and performance requirements must be met.

Case Studies

Several projects have had a go, however. One Cameroon-based firm uses plastic to create paving stones, while in the Netherlands, there have even been attempts to turn it into roads. And therein lie both the promise and the limitations. While it works in principle, scalability and consistency are problematic.

Technological advances could help in coming years; chemical recycling, for example, breaks plastics down into their constituent elements. Additives may improve the safety and durability of plastic bricks, making them better suited for construction, but not many companies seem to be exploring this path. Continued research and investment are needed.

And that’s a shame, say conservationists, because the solution is a alluring one. Unfortunately, until a firm overcomes the technological, economic, and regulatory hurdles, landfill or inefficient recycling processes seem to be the only options.

Innovations may yet be ushered in as the world seeks long-term solutions — and necessity, as they say, is the mother of invention. Walls of cheap, lightweight plastic could some day be reality. But until a major corporation steps up to the plate, the problems of waste and unaffordable housing seem set to remain for some time yet.


Exploring India's Rapid Economic Growth

 The government's efforts on labour, tax, and financial inclusion have hastened the country’s economic recovery.

India's economic growth has emerged as a defining story of victory in the past decade.

It’s the world's fifth-largest economy, with a nominal GDP of around $3.5tn – and it’s still growing. With an average annual pace of six to seven percent, it’s attracting the interest of investors, businesses, and governments.

India's expanding middle-class, rapid urbanisation and massive investment in infrastructure have propelled the economy to new heights.

Even during the Covid-19 pandemic, India showed tremendous resilience. The government's efforts on labour, tax, and financial inclusion have hastened the recovery.

There are fundamental drivers, sectoral dynamics, and difficulties in India's story.

Historical Context

Since independence in 1947, India has seen substantial reforms. For the first four decades, the country had a socialist-inspired, centrally-planned economic model. This prioritised self-sufficiency and state control over critical sectors, and resulted in stagnation and inefficiency.

The watershed came in 1991, when a balance-of-payments crisis drove the nation to economic liberalisation. Under the guidance of then-Prime Minister PV Narasimha Rao and finance minister Manmohan Singh, India implemented reforms that opened the economy to global markets, lowered trade barriers, and attracted foreign investment.

In the following decades, the country’s economy was market-driven. The changes of the early 2000s significantly liberalised the banking sector and encouraged private enterprise. Recent government initiatives, such as the promotion of local manufacturing, Digital India (aiming to strengthen digital infrastructure), and the Goods and Services Tax, have simplified rules.

These moves have created a framework for rapid growth, placing India as a major destination for foreign investment.

Demographic Dividend

With some 65 percent of the population under the age of 35, India has a young workforce. This, combined with expanding urbanisation, has resulted in a larger middle-class – with more spending power.

Digital Transformation

The digital economy has played an important role in all this. India has the world's second-highest population of internet users, which has revolutionised business functions. Initiatives like Digital India, and rising smartphone penetration, have boosted the e-commerce, fintech, and online education sectors.

Manufacturing and Infrastructure

Manufacturing and infrastructure are crucial. The production-linked incentive programme has encouraged domestic and foreign manufacturers to expand operations in electronics, medicines, and vehicles. Expenditure on highways, ports, and urban growth have improved the business environment.

Financial Reforms

India's financial system has undergone major reforms to increase financial inclusion and stability. Government programmes such as the Jan Dhan Yojana (banking access) and the Unified Payments Interface (UPI) have been transformational for the unbanked sector of the population, and have enabled digital payments in both rural and urban areas.

Sectoral Analysis: Services Sector

The services sector – IT and business process management – has boosted India's global standing. The IT industry, which includes companies like TCS, Infosys, and Wipro, has become a major destination for outsourcing. Financial services and telecommunications have also seen a boom.

Manufacturing

Production has accelerated, thanks to policy assistance and investment. India is a major player in the auto sphere, pharmaceuticals, and in consumer electronics. The automotive industry is a world leader – and India is a major producer of generic medications.

The Agriculture Factor

Despite the obstacles, agriculture is a critical component of India's economy, employing a sizable proportion of the workforce. Efforts to modernise farming processes, diversify crops, and enhance supply systems are ongoing. The development of agri-tech is helping to improve production and distribution.

Start-up Ecosystem

India’s new business environment is thriving, with more than 100 unicorns. Fintech, health-tech, and ed-tech are burgeoning sectors, thanks to venture-capital inflows and government support. Companies such as Flipkart, BYJU'S, and Paytm have earned global recognition.

India has historically relied on FDI, particularly in the IT sector, manufacturing, and telecommunications. But the country’s bilateral and multilateral trade agreements have amplified its global presence. The "Act East" policy has expanded connections with South East Asia, while collaborations with countries such as the US and Japan have helped its economic position.

Income Inequality

India suffers from substantial income differences between urban and rural areas. While cities thrive on innovation and employment, countryside areas face poverty and lack possibilities. The rural-urban divide is an impediment to inclusive progress.

Despite massive infrastructure investments, India continues to experience shortfalls in energy, transport, and infrastructure. The overloaded electrical grid, congested roadways, and lack of sustainability in urban design all impede economic advancement.

Environmental Concerns

Rapid industrialisation has worsened pollution, deforestation, and water scarcity. Addressing environmental issues while pursuing economic growth is vital to sustainable development.

Regulatory and Bureaucratic Hurdles

Although reforms have made doing business easier, red tape and regulations continue to pose challenges. Streamlining approval processes and minimising corruption are crucial for increasing investor confidence.

Global geopolitical landscape

Economic development is influenced by geopolitical strategy, too. India strikes a balance between partnerships with the US, Japan, and Australia (aka the Quad) and China. The ongoing border tensions and trade dynamics with China have had an influence on the global supply chain. India wants to lessen reliance on Chinese imports and strengthen ties with the US and the EU.

Outlook and Future

India's economic trajectory is encouraging, with forecasts that the economy could exceed $5tn by 2027. Renewable energy, biotechnology and AI are promising areas for growth. The government's emphasis on digital infrastructure, industry incentives, and labour market reforms should bolster economic stability.

While difficulties such as income disparity, regulatory barriers and environmental sustainability persist, India can capitalise on the size of its population and its digital expertise.

This rapid economic growth is a sign of a nation on the move, aided by governmental changes, a young workforce, and vibrant digital innovation. The combination of technology, manufacturing, and global trade is creating a dynamic economy. But for India to reach its full potential, inclusive growth and sustainability must be addressed.

But this is a growing country, set to transform the global economic landscape.


Autism in Business: Help, or Hindrance?

What do you think the qualities of a successful business leader might be?

If you were to ask this question to the general population, they are likely to come back with attributes that include the ability to think clearly, to be able to juggle multiple tasks and the ability to accurately manage the fundamentals including forecasting cashflow and managing the workforce.

[caption id="attachment_27182" align="aligncenter" width="900"] Author: Craig Murphy[/caption]

Interestingly, many of these qualities come especially naturally to people with autism. Their high attention to detail and often unconventional ways of thinking are often especially valued within industry. However, there are also some negative points which it is important to be aware of, especially for those who might have autistic colleagues or team members.

This article will provide a whistlestop tour of the positives and negatives of autistic people working in industries such as economics, finance and general business – and may well provide food if you have autistic colleagues on your team.

Autism in Business – the Positives

Perhaps the main overall positive is one we have already mentioned – that autism often manifests itself by showing high attention to detail.

Autistic people may have heightened sensory perception, meaning they often notice details in their environment that others might overlook. This could involve visual details, sounds, textures, or patterns, allowing them to focus on specific elements more intensely. Autistic individuals often engage in "local processing" rather than "global processing." Local processing refers to focusing on specific parts or details rather than seeing the overall picture or context. This cognitive style helps them excel in tasks that require precision and detail orientation – such as mathematics, economics, programming, or research, where precision and a deep focus are valued.

Indeed, autistic people will often find it easy to focus on numbers, they often come very easily. This is why many autistic people excel with tasks like data analysis and conversion rate optimisation.

Likewise, autistic individuals often excel when it comes to being specialists within a particular area. They will often have areas of deep interest, sometimes referred to as "special interests." When engaged in these interests, they can exhibit intense concentration and focus on minute details, leading to a greater understanding of the subject, which makes them valued across multiple industries.

However, although we cover negatives later in this analysis, it is worth pointing out here that this attention to detail can also become obsessive. It is easy for many autistic individuals to become too detail-orientated, meaning they are prone to obsessing over every detail, every price, every proposal, every design and, for those in the computer programming and web design industry, every line of code.

Another major positive of working with an autistic business leader is that the need to execute to the highest possible standard constantly shines through. The job will always be completed properly, and to-do lists always get completed. Part of this is down to the ability to “switch off from the noise”, often with less time spent on the frivolous and more time executing, with this high level of “hyper-focussing” leading to high productivity levels.

If you work with an autistic person, you will probably have noticed their honesty and loyalty – you may have even experienced them being a little too honest sometimes. This another trait of autism – but one that is appreciated more often than not.

They will often also have a huge sense of loyalty to their tasks, so much so that they sometimes will feel sad or lost when a particular project or task comes to an end.

Autism in Business – the Negatives

So far, we have looked at the positives – but there are also some considerable negatives of having autism in the workplace.

We have already touched upon one – the manifestation of obsessive behaviour. Obsessing over things too much can lead to long periods of not being able to switch off or relax, causing high levels of anxiety and depression, something which can be extremely problematic in the fast-paced, competitive landscape in which we all operate.

It is also important to be aware that, while many of us dislike corporate buzzwords or phrases, they can often actively confuse an autistic person, especially those vague terms that are not specific, with no hard action points or outcomes. Examples might include “owning the process”, “circle back”, and “silos”. They often cause more harm than they do good because they usually result in very little actually happening

Managing staff members or a team can often be a difficult task for someone with autism. Autistic individuals may face challenges with workplace social interactions, including reading non-verbal cues, understanding social nuances, or navigating small talk. This can sometimes lead to misunderstandings or difficulties with teamwork, because they can sometimes come over as very blunt, without necessarily meaning to do so.

Direct and literal communication can sometimes be misunderstood by colleagues, who may be more accustomed to indirect or nuanced styles of conversation. Similarly, autistic employees might misinterpret sarcasm, irony, or implied meaning.

This is related to another trait of often seeing things in black and white, or binary. A bit like a light switch that’s either on or off, things always seem to be one thing or another to an autistic person, with no in-between and no shades of grey.

Likewise, it is easy for an autistic person to feel a constant sense of disconnect. They will often struggle when providing instructions because they feel they aren’t saying something clearly or in the right way, meaning that others aren’t understanding what they are saying.

Finally, something to be especially aware of if you have an autistic colleague is that some experience heightened sensitivities to light, sound, touch, or other environmental stimuli. Certain workplace environments, such as open-plan offices, may feel overwhelming and distracting. Likewise, sudden changes in the workplace routine or unexpected events can be challenging for autistic individuals, as they often prefer predictable and structured environments.

Conclusion

Let me be very clear – everyone is an individual, including autistic people.

Not all the points I have discussed will apply to every autistic person. Some will, and some won’t. However, these are the attributes that are more likely to apply to those with autism.

If you have an autistic colleague, you may well recognise some of the points I have raised, whether they are the positive or negative ones. However, one thing is for sure – autistic people bring many strengths to the workplace and offer a huge amount to their teams.

Their ability to see things differently and to work within intricate levels of detail are relied upon right across the globe, day in and day out. By leveraging their strengths and providing supportive environments, autistic individuals will continue contributing significantly to the workplace across multiple industries, especially finance, economics and programming, long into the future.

About the Auhor

Craig Murphy, Managing Director, ALT Agency.

Craig Murphy Formed ALT Agency, a Birmingham based digital agency, in 2006.

Right from the start, Craig’s focus was to create a digital agency which delivers all-in-one profit boosting solutions to large businesses which expect high-end results, an ambition which remains equally relevant now.

Today, ALT Agency is an award-winning web design agency, with clients located across the globe. Its team of web designers, web developers and digital marketers are specialists in creating multiple digital solutions including website design, WordPress development, and marketing campaigns, including full SEO, CRO and website maintenance services. These are all infused with creativity and focused solely on delivering measurable results.


Impact Investing in Africa: The Vital Catalyst for Sustainable Development

 In a world beset by social and environmental challenges, one area is emerging as a vehicle to bring positive change — and financial gains…

While impact investing is acquiring global traction, it has special relevance for Africa, a continent teeming with untapped potential — and unique developmental challenges.

The investment concept combines demonstrable social and environmental benefits with financial gains, and it has the ability to reshape Africa's development landscape and future.

This is a continent of great contrasts, enormous difficulties, and extraordinary prospects. Some 400 million people live below the international poverty line. Widespread inequality doesn’t help, and there are added issues of drought, flooding, and other extreme weather events. Problems such as these jeopardise Africa's progress, and the wellbeing of its citizens.

On the plus side, the continent has a young and energetic population: more than 60 percent are under the age of 25. This means a lot for a continent so blessed with natural resources — minerals, oil, and gas — and can fuel economic development. Add to that the fact that Africa is going through a technological revolution, with fast-expanding mobile phone penetration and internet access.

"In Nigeria, Babban Gona addresses food insecurity and rural poverty via an agricultural franchise concept. It works with smallholder farmers, offering them training, inputs, and market access."

Traditional international assistance and charity have played valid roles, but they have been insufficient. Aid has been fragmented, short-term, and often driven by donor countries' political interests. Philanthropy has limited reach, but impact investing — which focuses on market-based solutions and sustainable business models — can bridge the funding gap and have an enduring impact.

By aligning financial returns with social and environmental effect, there will be more funds for development, and to establish a sustainable paradigm for addressing continent-wide concerns.

Impact-Investing Case Studies

Komaza is a Kenyan forestry company that exemplifies the potential of impact investing. It combats deforestation and simultaneously supports local communities by developing sustainable and scalable commercial forestry.

Komaza works with an "out-grower” model, providing smallholder farmers with seedlings, training, and a guaranteed market for the trees they cultivate. This provides revenue for the farmers, and encourages reforestation and carbon sequestration initiatives. The innovative approach has attracted significant investment, allowing the company to expand its operations — and the positive impacts for environment and communities.

Kenyan firm M-Kopa is revolutionising electricity access in East Africa. The company offers off-grid families affordable solar home-systems using mobile technology and a pay-as-you-go finance strategy. This improves quality-of-life by providing safe and dependable electricity. It also has a positive impact on health, education, and economic prospects. M-Kopa's solar systems enable children to study at night, give families to access healthcare services, and allows companies to prosper. The company's success proves that market-based solutions may yet solve energy poverty.

Off-Grid Electric, also known as Zola Electric, is another pioneer. It offers solar generators and microgrids to communities by establishing a network of local entrepreneurs who sell and service the systems: two birds, one stone. Zola's innovative financing strategy has made clean energy available to millions, changing lives and driving sustainable development.

In Nigeria, Babban Gona addresses food insecurity and rural poverty via an agricultural franchise concept. It works with smallholder farmers, offering them training, inputs, and market access. Babban Gona also helps them to achieve economies-of-scale and negotiates higher prices for their produce by grouping them into co-operatives. The company's method has resulted in considerable gains in crop yields and incomes.

Impact investors are demonstrating that it’s feasible to earn financial returns and generate beneficial social impacts by backing creative firms and organisations.

Key Sectors

The potential for investment is enormous, encompassing several sectors. Agriculture, the backbone of many African economies, holds tremendous promise. Sustainable farming methods, irrigation systems, and post-harvest storage investments can boost productivity, minimise food waste, and improve livelihoods.

Renewable energy is another ideal target. Africa is not short of sunshine or wind, and has the potential to become a global leader in the field. Investing in solar, wind, and geothermal projects creates clean and affordable energy — while simultaneously creating jobs and stimulating the economy.

Better health outcomes are needed for true human development, and impact investments can be directed towards mother-and-child health, infectious disease-prevention, and access to affordable medications. Mobile health clinics and telemedicine are already changing lives in remote and underprivileged regions.

Education is another worthy sector for impact investing. It provides the skills and information required for countries to prosper in the 21st Century. This goes all the way from early childhood through primary, secondary, vocational and post-secondary levels. Supporting innovative tech and techniques can improve learning results and increase access for marginalised groups.

Financial inclusion is another major issue for Africa, and again, impact investment can help. Individuals and businesses can be given a leg-up via access to savings accounts, credit, and insurance. This can stimulate entrepreneurship, job creation, and overall economic growth.

Policy and Regulation

The success of impact investing in Africa is strongly dependent on a supportive legislative and regulatory framework. Governments play an important role in fostering a favourable climate with clear guidelines, tax breaks, and risk-mitigation measures.

Streamlining investment processes and increasing transparency can attract new investment and bolster market confidence. Governments can develop and implement policies that promote sustainable development, from encouraging investment in renewable energy to backing sustainable agriculture. The potential for symbiotic relationships is always there.

Challenges and Risks

While there is great potential in Africa, there are certain hurdles and concerns to consider. Political instability in some nations can create a level of uncertainty, and currency volatility can be a problem. A lack of infrastructure can impede corporate operations and drive up the cost of getting established. Investors seeking liquidity may be concerned about their limited exit opportunities.

These problems can be minimised by thorough research, diversification, and collaboration with local organisations. Investors can collaborate with governments and stakeholders to address broader concerns, such as infrastructure development and policy reform.

Impact investing is an effective instrument for unlocking Africa's potential. By investing in enterprises and organisations that have a positive social and environmental effect, a more prosperous, egalitarian, and sustainable future can be generated. Obstacles continue, but opportunities are abundant. With the right support and collaboration, impact investing has the potential to transform a continent — and make the world a better place for everyone.


Asia Pacific’s Innovation Boom: Technological Titans are Emerging

Go east, young entrepreneur…

The Asia Pacific region is a driving force in global innovation. Comprising a mix of established tech powerhouses and rapidly expanding economies, it is shaping the global start-up scene with its blend of ambition, government support, and thriving megacities. This region is a hub for innovation beyond traditional Western centers, with unique start-up ecosystems in countries like Singapore, South Korea, Australia, and India that are pushing the boundaries of entrepreneurship.

Singapore: A Start-up Haven

Singapore's start-up ecosystem is strategically located in Southeast Asia and stands out as a beacon of innovation. With its pro-business policies, world-class infrastructure, and strong financial sector, the city-state provides an ideal environment for start-ups. Companies like Grab illustrate this success. Initially a ride-hailing service, Grab has evolved into a "super app" offering a diverse range of services, from transport to food delivery and mobile payments. Its expansion demonstrates a keen ability to detect market gaps and scale regionally.

Razer, founded in Singapore, exemplifies niche market dominance. As a global leader in gaming gear, Razer’s focus on understanding gamers’ needs has fueled its growth. Another standout, Carousell, has capitalized on increasing consumer demand for sustainable buying, establishing itself as a leading marketplace for second-hand products in Southeast Asia. By swiftly responding to market trends, Carousell demonstrates how agile strategies can drive success.

Singapore’s story shows how a small nation can become a global innovation engine through clear strategy, supportive policies, and a robust ecosystem. Its start-up environment not only attracts entrepreneurs but also fosters growth for companies that transcend local markets.

Hong Kong: The Bridge Between East and West

As the gateway between East and West, Hong Kong offers a unique business environment shaped by its strong banking system, proximity to mainland China, and access to the region’s massive market. This strategic positioning provides ample opportunities for start-ups to thrive.

WeLab is a pioneer in virtual banking that has used technology to make financial services more accessible, catering to a broad spectrum of consumers. GOGOX (formerly GoGoVan) addressed logistics challenges in Asia's congested cities by creating a platform that connects drivers, businesses, and individuals for on-demand deliveries. This innovation aligns with global trends in the sharing economy and urbanization.

Prenetics, a leader in health and genetic testing, identified an under-served need for affordable preventative care across Asia. By tapping into these gaps, Prenetics has become a significant player in the health tech space. Hong Kong’s success as an innovation hub is built on adaptability, responsiveness to global trends, and the strategic advantages of its geographical and economic landscape.

Australia and New Zealand: Innovation with a Human Touch

In Australia and New Zealand, robust economies and quality infrastructure combine with a lifestyle that attracts entrepreneurs, fostering an innovative culture focused on creating globally competitive businesses with a human element.

Canva, founded in Perth, Western Australia, has revolutionized graphic design with its drag-and-drop platform, reaching a global audience by addressing the need for simple, accessible tools. Sydney-based Atlassian, known for collaboration tools like Jira and Confluence, develops scalable software solutions that have become essential for global teams. These platforms highlight the emphasis on crafting products with international appeal.

New Zealand's Xero transformed small business accounting with its cloud-based software, simplifying a traditionally complex process. By streamlining accounting, Xero shows the benefits of addressing common business pain points. The innovation coming out of Australia and New Zealand reflects a culture that values work-life balance and creativity, which in turn drives sustainable growth.

South Korea: A Tech Powerhouse

South Korea's commitment to innovation has led to a thriving start-up ecosystem, driven by government-backed R&D and a highly educated workforce. This environment fosters cutting-edge ideas and disruptive technologies.

Coupang, often called the "Amazon of South Korea," has revolutionized e-commerce with its rapid delivery and customer-centric approach, setting new standards in online retail. The gaming industry also flourishes in South Korea, with companies like Krafton, the creator of the popular game PlayerUnknown's Battlegrounds, leading the way. Additionally, Woowa Brothers, creators of the Baedal Minjok app, have filled gaps in the meal delivery marketplace and catered to evolving consumer preferences.

South Korea's model of continuous innovation, investment in technology, and emphasis on education sets the bar for other countries seeking to elevate their start-up ecosystems.

India and Southeast Asia: Emerging Start-up Hotspots

India’s large population, expanding tech talent pool, and focus on economic development make it a powerhouse for entrepreneurship. Leading companies such as Flipkart have adapted global e-commerce models to meet local needs, while BYJU's, an online learning platform, personalizes education for millions of students across the country. Paytm has furthered financial inclusion by offering mobile payment solutions, enabling millions to engage in the digital economy.

Southeast Asian countries like Indonesia, Vietnam, Cambodia, and the Philippines are rapidly emerging as start-up hubs. Their young, tech-savvy populations and increasing smartphone penetration drive growth in these markets. The rise of start-ups in these countries demonstrates how technological adoption can transform economies and improve quality of life.

Conclusion

The Asia Pacific region is redefining the global innovation landscape. From Singapore's "super apps" to South Korea's gaming industry, the area is at the forefront of tech-driven entrepreneurship. Through government support, cutting-edge technology, and a diverse talent pool, countries in the Asia Pacific continue to shape global start-up trends, driving economic growth and setting the pace for the future.


Which European Countries are the Most Active Online?

 The Netherlands leads the field with a score of 9.01 – or 99.27 percent of residents – regularly using the Internet.

SEO agency Digital Climax analysed data from Eurostat to compare the percentages of individuals engaged in six categories of online activity.

The data were then used to create an overall “Online Activity Score” out of 10 for each European country. The categories included the percentage of individuals using the internet, those that use the internet weekly or more, those using it for e-commerce, finance or calls, and the percentage of households with internet access.

The Netherlands is switched-on in more ways than one, with over 84 percent of residents using the Internet for ecommerce, and 27.57 percent turning to the net for financial activity.

Bosnia and Herzegovina – a country with two autonomous entities – was found to have the lowest online activity score of 1.44, or just 84 percent of residents.

In the Netherlands, 99.27 percent of the population go online, with 98.92 percent doing so weekly or more often. The country also scored highly for ecommerce (84.2 percent) and making calls (84.7 percent). Its lowest score was for financial use, with just 27.57 percent of users – but that was still high compared with other countries.

Iceland ranks second with a score of 8.82; it also scored highest for the percentage of individuals using ecommerce – 84.35 percent – and came second for weekly Internet use with 99.45 percent. Its lowest percentage score was again for finance: just 20.52 percent.

Ireland comes in third, with a score of 8.74 out of 10. It had the second-highest score for financial use: 30.29 percent. The Emerald Isle scored 98.99 percent for the percentage of households with internet access, and ranked in the top five for ecommerce, with 82.84 percent of the population active.

Norway ranks fourth, scoring 8.45 out of 10. It has the highest percentage of individuals using the internet, with 99.81 percent, and ranked in the top five for internet access, at 99.01 percent of households connected. It fared worse for the Internet calls: 79.10 percent.

The UK found itself in fifth spot, with a score of 8.42 out of 10. It has the highest percentage of individuals using the internet weekly or more: 99.53 percent. The UK also came second for the total percentage of individuals using the internet, 99.55 percent.

Other countries in the top 10 include Switzerland, Denmark, Sweden, Luxembourg, and Finland. Bosnia and Herzegovina was least active online, with a score of just 1.44 out of 10. It had the lowest score for the percentage of individuals using the internet – 84.01 –and the second-lowest overall rate for weekly individual use: 82.46 percent.

SEO specialist and founder of Digital Climax, Axl Van Steenacker, said that with so many essential services available online, it was “no surprise to see such high percentages for internet access across most European countries”.

Many of the top-ranking countries surpass the EU average of 90 percent for fast broadband (NGA) coverage; the Netherlands boasts 99 percent. “This makes it easier for their populations to get online and access these platforms,” he said.

The EU has Open Internet Access Regulation in place to ensure availability of online content and services without discrimination or interference. “It would be good to see these accessibility figures continue to increase over the next few years,” said Steenacker, “so users can take advantage of this worldwide connectivity and use services like online banking and global communication.”

Rank
Country
1
2
3
4
5
6
7

1
Netherlands
99.27
98.86
98.92
84.2
27.57
84.7
9.01

2
Iceland
99
98.44
99.45
84.35
20.52
89.67
8.82

3
Ireland
97.53
98.99
97
82.84
30.29
83.73
8.74

4
Norway
99.81
99.01
98.79
78.81
22.39
79.1
8.45

5
United Kingdom
99.55
99
99.53
83.05
28.52
66.56
8.42

6
Switzerland
99.32
99.66
98.2
71.24
18.41
74.73
7.84

7
Denmark
98.99
96.09
97.47
79.78
16.1
78.92
7.68

8
Sweden
98.07
94.87
96.87
80.16
13.05
75.57
7.14

9
Luxembourg
99.4
99.06
96.87
70.27
8.66
72.67
7.08

10
Finland
97.83
96.78
95.45
64.39
19.8
73.93
7.06

11
Kosovo
99
99
99
35.39
0.43
99
6.94

12
Estonia
93.69
93.22
92.29
62.04
32.51
65.77
6.32

13
Spain
95.96
96.45
94.48
55.85
11.09
76.1
6.18

14
Latvia
92.81
93.07
91.5
46.28
31.55
74.68
6.04

15
Cyprus
91.37
92.3
91.19
50.57
21.08
87.03
5.84

16
Malta
92.44
93.54
91.51
59.67
14.07
80.72
5.72

17
Belgium
95.26
94.48
93.57
64.97
6.39
72.72
5.7

18
Austria
95.72
94.98
91.99
62.41
6.96
70.19
5.53

19
Czechia
92.75
92.8
89.91
69.07
16.29
65.28
5.3

20
Hungary
91.8
92.73
90.63
58.98
9.68
79.97
5.23

21
France
93.79
93.34
92.17
65.78
7.37
67.38
5.19

22
Germany
93.42
91.66
90.98
67.52
7.84
63.83
4.83

23
Lithuania
89.01
88.59
87.59
48.32
22.01
74.96
4.48

24
Albania
90.54
99.62
88.3
17.55
1.6
88.87
4.42

25
Slovenia
90.78
93.72
89.41
53.18
13.03
57.29
4.26

26
North Macedonia
91.67
88.29
90.65
39.76
0.11
85.35
4.05

27
Slovakia
89.1
90.6
86.06
65.84
11.27
61.51
3.9

28
Türkiye
86.48
95.54
85.2
38.02
5.38
79.55
3.71

29
Romania
91.56
92
88.05
31.72
4.09
70.34
3.58

30
Italy
87.71
91.89
85.45
39.19
10.76
68.31
3.39

31
Serbia
89.97
85.39
85.15
45.88
3.99
80.2
3.3

32
Poland
88.11
93.3
85.32
49.87
5.1
56.07
3.05

33
Portugal
86.38
89.01
84.18
43.95
8.6
70.68
2.99

34
Greece
86.23
86.9
84.23
48.3
9
71.52
2.94

35
Montenegro
89.44
81.28
88.26
18.57
4.44
86.19
2.71

36
Croatia
84.35
89.56
82.46
49.93
5.38
57.34
2.14

37
Bulgaria
83.97
88.5
79.83
26.94
3.89
69.04
1.59

38
Bosnia and Herzegovina
84.01
81.55
82.46
25.52
2.19
78.68
1.44

Table: European countries ranked by percentage of their population online.

Legend:
1 % of individuals using internet
2 % of households with internet access
3 % of individuals using internet weekly or more
4 % of individuals using ecommerce
5 % of individuals using internet for finances
6 % of individuals using internet for calls
7 Online Activity Score /10


The Future of North America: Navigating Knowns and Unknowns

Identifying problems is easy, but finding solutions requires creativity — and more individual participation.

North America is at a crossroads, facing significant issues like political polarisation, economic inequality, and the existential threat of climate change. However, a new era is emerging, driven by technological breakthroughs, shifting demographics, and transformational ideals. The continent's future will be shaped by these forces, presenting both exciting opportunities and complex challenges.

The Double-edged Sword of Technology

Artificial Intelligence (AI) is revolutionising industries. In healthcare, AI enhances diagnostic accuracy, drives drug discovery, and even assists in surgeries. For example, AI-driven machine learning algorithms can analyse medical images to detect diseases early, offering a leap forward in preventative care.

In manufacturing, robots have been improving assembly lines for years, resulting in higher-quality goods at reduced costs. In finance, AI is transforming fraud detection and delivering personalised investment advice.

However, concerns remain. As AI continues to advance, it could displace human labour in industries ranging from truck driving to customer service, exacerbating economic inequality. In military contexts, the use of autonomous systems raises ethical issues about decision-making algorithms making life-and-death choices.

Biotechnology and Ethical Dilemmas

Another key innovation path is biotechnology. Gene-editing technologies like CRISPR-Cas9 offer revolutionary potential, from eliminating hereditary disorders to developing climate-resilient crops. Recent breakthroughs have enabled the repair of disease-causing mutations in human cells, which could lead to treatments for conditions like sickle-cell anaemia and cystic fibrosis.

While the potential benefits are vast, ethical concerns abound. Should we be editing the human genome? The risk of "designer babies" and unforeseen genetic consequences adds a layer of complexity to these advancements.

Renewable Energy: A Critical Shift

The transition to renewable energy sources like solar, wind, and hydro is a promising way to combat climate change and reduce dependence on fossil fuels. Advances in battery technology are making renewable energy more accessible and affordable. However, the shift will require massive infrastructure investments, particularly in building transmission lines and overcoming political opposition from fossil fuel interests.

Demographic Shifts and Social Security

North America's ageing population places increasing pressure on healthcare and social security systems. With more baby boomers retiring and fewer younger workers entering the workforce, the sustainability of these programmes is in jeopardy.

Immigration can offset some of these challenges, helping to alleviate labour shortages and stimulate economic growth. However, the integration of immigrants raises concerns about cultural assimilation and access to social services, especially when language and educational disparities are present.

Urbanisation and Environmental Concerns

The trend of urbanisation continues to reshape the North American landscape. While cities foster innovation, they also present challenges like housing shortages, traffic congestion, and environmental stress. Investment in public transport, green infrastructure, and sustainable housing solutions will be crucial to addressing these challenges.

At the same time, climate change remains the most pressing environmental issue. Rising sea levels and extreme weather events threaten both coastal communities and agricultural production. Recent hurricanes, like Harvey and Maria, have caused billions in damage, and wildfires in the western United States are becoming more frequent and severe. Efforts to combat these challenges are growing, with carbon capture and sustainable practices leading the charge.

Social Justice and Political Polarisation

The fight for social justice is far from over. The Black Lives Matter movement has brought renewed attention to racial inequality, while LGBT communities continue to advocate for equality. Women, too, still face challenges in achieving equal pay and leadership opportunities.

Political polarisation in North America complicates these efforts. Issues such as immigration, healthcare, and gun control have become divisive, making it difficult to achieve consensus on policies that could drive progress.

A Shifting Paradigm

The pandemic has magnified trends in the workforce, such as the rise of the gig economy and the shift toward remote work. However, the gig economy lacks the stability and benefits of full-time employment, raising questions about economic security.

At the same time, there is a growing movement towards localism and community building. People are increasingly seeking meaningful connections and a sense of belonging, with an emphasis on supporting local businesses and initiatives.

Looking Ahead

The future of North America is filled with uncertainties but also tremendous possibilities. By embracing technological advancements, adapting to demographic changes, and addressing environmental and social justice issues, the continent can create a more inclusive, sustainable, and prosperous society. This will require visionary leadership, bold strategies, and the active participation of all citizens in shaping a better tomorrow.


The Economics of AI: Talent Before Technology

Transforming Today’s Organisations with Tomorrow’s Leaders

Organisations are spending more than ever on AI, but true value lies not just in technology, but in talent and leadership that can guide its transformation.

[caption id="attachment_27206" align="alignright" width="300"] Author: Bashar Kilani[/caption]

Organisations are investing heavily in AI, with adoption rates soaring, yet skeptics still question AI’s return on investment. Creating value from AI requires more than just technological implementation—it demands a shift in working processes, operating models, and, most crucially, human capital. As AI technologies and data structures form the foundation of AI-native organisations, the focus must turn to leadership and talent that can drive sustainable and responsible growth.

According to Bain & Co., generative AI initiatives could add up to 20% to EBITDA, and as AI matures, it is no longer just a tool for technical teams. AI is now a strategic driver of business transformation, embedded in operations, fostering a data-driven culture, and promoting responsible business practices. The transition to AI-native organisations is not just about technology—it’s about talent.a

The McKinsey Global Institute projects potential productivity gains for all workers through generative AI (genAI) to rise between 35-70% in the coming years. The software industry provides a glimpse into this transformation. Over the last 18 months, genAI tools have boosted developer productivity by 50%, with similar gains expected in the near future. This productivity surge is set to redefine industries and reshape how businesses approach software solutions—whether to build or buy.

As AI continues to boost human productivity, it is reshaping the future of work, heralding a new era of efficiency and value creation. Visionary nations, like the UAE, have already embraced this shift. With oil revenues projected to peak by 2029, the UAE has positioned AI as a cornerstone of its future economic strategy, crucial for driving growth in a post-oil economy. In both public and private sectors, AI is no longer optional but essential for driving productivity.

Governments are increasingly mandating the appointment of Chief AI Officers (CAIOs)—leaders tasked with steering organisations toward an AI-driven future. These leaders don’t just implement technology; they transform business models, organisational strategies, and human capital. The CAIO’s role is pivotal in ensuring the C-Suite and board are equipped to navigate the AI economy, and their leadership profile requires a distinct set of skills for this new era.

Traditional leadership, often characterised by MBAs or consultants with effective communication and broad general knowledge, is being reshaped. Today, tools like ChatGPT or Gemini can perform many of these tasks more efficiently. In an AI-first world, creativity, technical acumen, and the ability to lead AI-powered innovation will be the hallmarks of successful leaders.

Every member of the C-Suite must contribute to this transformation, ensuring that the organisation’s talent evolves alongside AI’s capabilities. Chief Human Resources Officers (CHROs) will play a pivotal role in shaping the workforce of the AI economy. Traditional skills are rapidly giving way to AI proficiency, creativity, and leadership. A recent Gartner study found that only 15% of Chief Information Officers and IT leaders believe their workforce is equipped for the future. This is an urgent call to action.

The Chief Financial Officer’s (CFO) role is also evolving. AI-native organisations’ balance sheets will increasingly reflect investments in cloud infrastructure, AI models, data monetisation, and more. This shift will require CFOs to understand the new economic landscape, ushering in a new breed of finance leaders attuned to the AI economy. This transformation will impact the entire leadership team.

Leading in the AI economy requires more than just new skills; it demands a deep understanding of the emerging economic models and the ability to mitigate risks. AI’s growing presence in business operations introduces increased risks of regulatory breaches and ethical missteps. By 2030, Gartner projects that decisions made by AI agents without human oversight could result in $100 billion in losses due to asset damage. Responsible AI must become integral to enterprise risk management and governance structures.

The transformation driven by AI is not just technological—it’s about leadership, people, and culture. Organisations that succeed will blend technical prowess with visionary leadership, capable of reimagining business in a digital-first world. By 2025, Gartner predicts that 35% of large organisations will have appointed a CAIO reporting directly to the CEO or COO, reflecting AI’s growing strategic importance.

The AI economy is not a distant concept—it is unfolding today. To capitalise on this transformation, organisations must act with agility and foresight. Whether through innovative services, new business models, or cost reduction strategies, AI presents boundless opportunities, but it is the human element that will ultimately determine success.

About the Author

Bashar Kilani is a Digital Economy Advocate and Managing Partner at Boyden. He is also the Founder of AI360 Innovations at Dubai AI Campus. Bashar has held senior leadership roles at Accenture and IBM and serves on the boards of prestigious organisations in industry, entrepreneurship, and academia.


Canada’s Spirit of Innovation: A Tradition of Entrepreneurship

Canadians have long pushed boundaries, earning a reputation for innovation and entrepreneurship. That spirit is still alive...

A pioneering tradition is ingrained in Canadian culture, education — and even government policy.

[caption id="attachment_27210" align="aligncenter" width="900"] Canada: Vancouver[/caption]

Canadians are known for ingenuity, perseverance, and a willingness to take chances. From the fur traders and explorers who first traversed the land to the craftsmen and technicians who installed the country’s modern infrastructure, entrepreneurial spirit has been well nourished.

It has permeated every facet of Canadian life, from the arts to science, technology, and business. The school system focuses on developing creativity and critical thinking. The aim is to provide students with the tools they need to solve complex challenges and generate game-changing solutions. The growing number of STEM (science, technology, engineering, and maths) programmes at Canadian universities and colleges bring extra focus to entrepreneurial skills.

The government understands that creativity drives economic growth and social advancement. It has policies and programmes to encourage innovation, from R&D tax breaks to start-up funding and inducements for academia-industry collaboration. These policies have helped to nourish a thriving ecosystem.

Some Canadian businesses have prompted change in various sectors around the world. From communication pioneer BlackBerry to e-commerce platform Shopify, Canada has kicked up its fair share of leaders able to foresee and meet developing market demands.

BlackBerry (originally Research In Motion, or RIM) revolutionised the mobile phone industry. Its gadgets, distinguished by their QWERTY keyboards and secure email capabilities, became a business must-have.

Shopify revolutionised online sales by democratising the space and making it simple for entrepreneurs to set up and operate on their own. A user-friendly platform, a complete set of tools and global reach have propelled it to the forefront of the market.

Guy Laliberté, founder of the world-renowned Cirque du Soleil, revitalised the entertainment industry with acrobatics, music, and visual extravaganzas. Jim Pattison, chairman of the group that bears his name, made shrewd investments in retail, food, real estate, and media. He amassed a fortune.

Salesforce, a cloud-based customer-relationship management (CRM) software company, was co-founded by Marc Benioff, who changed an industry by changing the way it managed client interactions. Michèle Romanow, co-founder and CEO of financial services platform Clearbanc, pioneered a new path to entrepreneurship lending.

There are more: Shahrzad Rafati, co-founder and CEO of Wattpad; Susan Niczowski, founder of food-waste management company Freshlogics; and Leonard Lee, founder of the Altitude Trampoline Parks chain. Hamid Arabzadeh created online grocery shopping platform Instacart, changing the way people “do their shopping”.

Government Support for Entrepreneurs

The Canadian government offers inducements and assistance to foster a vibrant business environment and stimulate the economy. Start-Up Canada offers grants, mentorship, and networking opportunities to early-stage companies. It helps to validate concepts, develop business plans, and obtain funding. Each province and territory has a Regional Development Agency (RDA) that provides tailored funding and assistance programmes based on individual requirements and goals.

Tax credits from scientific research and experimental development (SR&ED) encourage enterprises to invest in the field. The Business Investment Incentive programme offers tax credits for investments in SMEs.

The New Entrant Tax Credit aims to attract and promote enterprise with breaks during the first few years of operation. CanCode promotes digital skills-training and supports youth entrepreneurship.

Entrepreneurship Education Grants help universities, colleges, and other organisations give students the skills and information they need to succeed. There are also government-funded accelerator and incubator programmes providing early-stage entrepreneurs with mentorship, workspace, and access to resources.

Local chapters of Start-Up Canada connect entrepreneurs with mentors, peer-support groups, and industry networks. Entrepreneurship Centres offer business development, market research, and legal and financial counsel. The government maintains online information and resource portals to help at various stages of the entrepreneurial journey.

The enduring grit of Canadian business leaders, and the support and education from their government, are defining the economic future of a region. As long as Canada embraces innovation, it will remain at the vanguard of global economic development.