The View From Belgium: Top Banker Pleads for Caution

Ernest Hemingway’s maxim that bankruptcy arrives gradually “and then suddenly” applies to banks as well: “The proliferation of social media and the ubiquity of online banking imply that when things are perceived to go wrong, bankers may almost instantly lose control of the narrative. There is no coming back from that,” says KBC Group CEO and Banker of the Year (2016, 2017) Johan Thijs.

Thijs does not attribute the abrupt demise of Silicon Valley Bank (SVB) in early March to a spike in frantic Twitter traffic regarding the bank and its prospects. “Skewed fundamentals and inadequate regulatory oversight are the root causes of the failure. Even without an incendiary flurry of tweets, SVB would have buckled under the weight of a lopsided balance sheet with volatile deposits on the liability side set off against stable but devalued bonds on the asset side.”

[caption id="attachment_26133" align="aligncenter" width="900"] KBC CEO Johan Thijs[/caption]

The CEO points out that SVB was allowed to operate without sufficient liquid reserves after the administration of former President Donald Trump tweaked the rules for non-systemic US banks considering that any failures would sustain a negligible economic impact which could be absorbed by the public authorities. “What the regulator failed to take into consideration was the psychological fallout of a bank failure; the undermining of public trust in the financial system already thoroughly shaken by the events of 2008.”

Firm Framework

Thijs emphasises that European banks face a much firmer regulatory framework imposed and maintained by both the European Central Bank (ECB) and the national central banks. “Here, banks are required to keep a level of liquidity reserves greater or equal to thirty days of stressed cash outflows after which they must still have adequate liquidity. At the time of the SVB collapse, KBC boasted liquidity reserves in such a way that we could easily withstand a multiple of the requested regulatory stressed liquidity outflows.”

Another difference between most European banks and SVB concerns balance sheet management. “If a bank is flush with volatile corporate deposits, it is unwise to invest those funds in long-term instruments such as government bonds. At KBC we park such deposits overnight with the ECB. We may not get a particularly good return on that parked capital but can access it instantly which, of course, adds to the bank’s liquidity.”

"Skewed fundamentals and inadequate regulatory oversight are the root causes of the failure."

Following the crash of SVB, the contagion seemed to spread to Europe nonetheless with the failure of erstwhile venerable Credit Suisse which quickly sank into ignominy, accumulating unsustainable losses. “Perhaps remarkably, at the time of the SVB crisis, Credit Suisse had sufficient capital and reserves. More than anything, it was the parallels drawn with SVB that sparked trouble. That and a few statements by pundits caused the pressure on Credit Suisse to increase significantly. After stockholders refused to come to the rescue, the Swiss National Bank was forced to intervene and broker the deal with UBS.”

Borderless World

To Johan Thijs this again offered proof that borders have dissipated in the financial world. “As soon as a crisis erupts somewhere, everyone begins wondering if such a thing could happen closer to home as well. Another difference now is the speed at which information is disseminated. Not everything reported on social media is necessarily true but, that said, there is little time, if any, to counter and set the record straight. At the slightest sign of trouble, real or imagined, clients can move their money elsewhere in a matter of seconds. It is good to remember that, today, a bank run is only one click away.”

The good news is that at present few, if any, European banks are in trouble. But Thijs also notes that a banker doesn’t prepare for non-existent problems but for those that could possibly arise.

Thijs continues: “I am convinced that regulators are looking into the underlying causes of the recent spate of bank failures. It still baffles me that US regulatory agencies apparently bought into the self-regulation myth. They now have their work cut out. European regulators will do likewise even though their system worked quite well. Stricter rules will likely follow, also here in Europe where part of the Basel IV banking supervision framework may be implemented ahead of time in an anticipatory way. Another expected change could involve different sets of rules for different banks.”

The KBC Group CEO does see an issue: “Without regulation the market cannot survive. So, we are happy to be regulated. However, too much regulation may stifle the market and hinder banks in the proper execution of their job which essentially boils down to transforming deposits into credits. This involves a delicate balance that, in turn, requires a stable regulatory system that allows the job to be done profitably but in a normal and orderly fashion.”

KBC is one of the largest bank-insurance groups headquartered in Belgium and is focused on retail banking and small- and medium-sized businesses in Belgium, Bulgaria, Slovakia, Hungary, and the Czech Republic. It maintains a network of over 1,200 branches in Belgium and Central and Eastern Europe.

CEO Johan Thijs was ranked among the “ten best CEOs” in the world by Harvard Business Review between 2017 and 2019. The publication has since stopped ranking chief executives.


When Wheels Fall Off a Gender-Balance Bid by a Wall St Hedge Fund, It Turns to Woman vs Man

Fair Play, screening on streaming service Netflix, shows that entrenched, society-imposed values can be hard for individuals to shake off...

Businesses are paying more attention to diversity in their senior teams, and things are gradually moving into positive territory. The percentage of board seats filled by directors from diverse ethnic backgrounds has risen to 22 percent. When it comes to gender balance, 54 percent of new board seats have been taken by women.

But could there be a price to be paid for this workplace diversity? On paper, and at the bottom line, almost certainly not. In reality... perhaps. Because we’re a weak and fallible species, and our inner demons can flare to life at the least provocation.

And that’s what happens to Luke (Alden Ehrenreich) and Emily (Phoebe Dynevor) in Fair Play, now screening on Netflix. The precious insights brought to diversity come, in this case at least, with caveats. A simple promotion can be laden with toxic barbs for “traditional” power couples, i.e. one where the man has higher earnings and status.

Luke and Emily are just such a power couple, working at a swish New York hedge fund. Or are they? They want for little, they are beautiful, talented, respectful, grounded, modern. Their ability to transcend the situation, whatever progressive views they seem to hold, is soon put to the test.

Spicing up what would otherwise be a banal tale of internal promotion is the fact that these charming colleagues are secret lovers. Relationships with co-workers are an HR no-no — so no one knows, right? Luke seems set for promotion, and things are going from great to simply wonderful. But then — body shot, plot change — Emily leapfrogs her lover to land a coveted project manager’s position.

At first, it’s all hunky-dory for the beautiful young go-getters. They’re in love, to the point of audience cringe. With more modest acting skills, less professional cinematography, actors with knitting-catalogue handsomeness, and cheesier music, the early part of Fair Play could have come across as made-for-TV drivel, where murderous babysitters or wicked home invaders swoop in to hijack the plot to some grim and unlikely finale.

Not here, though; writer-director Chloe Domont’s light, human touch gives the leads room to showcase their talents. That lovey-dovey saccharine vibe isn’t irritating, partly because we know it’s a springboard. It’s easy to engage in a bit of soapy swooning when we know chaos is coming. Schadenfreude is a powerful thing.

The crash-and-burn of Luke and Emily’s relationship —we silently will them to overcome the challenges, but somehow know they won’t — may not tally with expectations for modern HR policies. Effectively implemented diversity initiatives can enhance a business’s operations, and its bottom line.

But along with the advantages come challenges; if not for the enterprise, then for the individuals concerned. Because we’re all fallible, we all suffer from a lack of self-confidence, we — in spite of ourselves — seek to maintain ingrained traditions and perceptions: men should earn more than their partners, for example. And they do; stats reported in The Guardian show that women earn 84 cents in the male-dominated workplace dollar. That is changing — hooray! — but, um, are we men ready to accept that perceived shifting of status that comes with that?

Luke isn’t, though he gives it his best shot. He smiles warmly, says he’s happy for her, says he’s proud. Kudos to Ehrenreich’s acting chops, here, because the transition from loving partner to neurotic, jealous, increasingly (literally and metaphorically) impotence is an almost unscripted process, conveyed by facial expressions and faltering denials.

Emily is suitably contrite, sympathetic, supportive; but she, too, finds her inner self eroded and altered by her elevation to the C-suite. She has the eye, and the ear, of the hedge fund’s inscrutable CEO, Campbell (Eddie Marsan). Previously, she had just been a woman keeping the corporate diversity ratio sweet; then, one day to the next, she’s living in rarified air.

Luke must watch through glass office partitions as his secret lover is cossetted, fluffed, flirted with, and groomed for the corporate eyrie. His life as a grunt, a simple analyst, grinds on, while she is feted, wined, dined, taken out for nights “with the boys” (only to return, drunk, in the early hours). Switch the gender roles, and — surprise — nothing to see here. That’s just the way it is.

It’s not all roses for Emily at the professional level — she is called a stupid bitch by Campbell when one of her financial hunches nosedives — but the real hell awaits her at home.

By Hal Williams


Trade: Engine Room of the United Kingdom

‘While economic issues might not be centre stage by many, there is a real need for there to be a bridge-building exercise to build on trust with the European Union’, declares Lord Waverley.

Pragmatism should dictate at least listening to any outreach that the EU offers on single market access, rather than dismissing it out of hand. This might become increasingly relevant for the UK, given also the implementation plans of the EU’s strategic autonomy agenda, published in July. To put things into perspective generally, and to have an understanding of the challenges being faced by UK exporters to the EU, it would be helpful to have a relevant comparison provided by the Government to confirm, first, the trading figures for the latest calendar year of 2022 and to compare them with 2019; and, secondly, the calculated projected figures for exports to the EU for 2022 if the UK had remained in the EU. That might focus minds.

[caption id="attachment_26140" align="aligncenter" width="900"] Aerial view of colorful containers on cargo ships at the port of Southampton, which is one of the Leading Port Terminal Operators in the UK. [/caption]

For UK business to fully succeed with the large near neighbour already requires navigating the labyrinth of regulations and EU support programmes, so the EU’s economic security strategy is not good news for UK businesses wishing to deepen their relationship with the EU. This is compounded by the EU focus on single market integration and shift towards economic security and industrial policy, advancing with an industrial policy emerging with investment and deal-making decisions taking place in an increasingly politicised environment.

The strategy provides a comprehensive picture of the economic risks that the EU deems it faces from an increasingly challenging geopolitical environment, from supply chain resilience to economic coercion, and building on how to de-risk international supply chains in the context of rising tensions with China.

On the flip side are UK border issues, but challenges remain with UK customs border policies between the UK and EU not being aligned. Ensuring a future-ready customs infrastructure that streamlines and modernises trade and customs procedures that foster economic growth, enhances our global trade position and ensures swift and compliant cross-border trade, is paramount. Effective customs systems alignment would lead to more accurate and timely revenue collections, with streamlined and transparent processes building on stakeholder trust among traders and foreign investors.

This requires fully digitising and modernising our customs and trade procedures. Are the Government satisfied with the necessary improvement strategies in infrastructure that will enhance and facilitate transit procedures and reduce internal bottlenecks? The Government’s Ecosystem of Trust evaluation contained in the 2025 border strategy is planned to combine data and technology to move processes, where possible, away from the border. What progress is being made with the digital transformation and implementation of electronic data interchange systems to replace the outdated manual processes and development of single trade window systems, thus enabling traders to submit all documents at a single point? This would significantly improve the import process for traders and improve their border experience.

HMRC is currently engaged in two consultations with trade, one on the future of customs declarations and the other on a voluntary code of conduct for customs intermediaries, which many in the trade would like to see become mandatory. Many are questioning why HMRC is not using the existing authorised economic operator framework, which already requires applicants to demonstrate standards of competency and security. Delay to implementation of sanitary and phytosanitary checks outlined in the border target operating model is a cause of frustration and prolongs the imbalance between the regulations faced by UK food exporters. EU exporters have no such controls on sending their goods to the UK.

Many questions remain. What of the establishment of risk assessment frameworks to prioritise inspections and the development of compliance benchmarks and monitoring tools? Where are the Government on their review and recommendation for policy reforms aligned with international best practices and harmonisation with standards to boost international trade relations? Do border capacity building and training remain a challenge? Are the Government engaging with trade associations and businesses to understand and cater to their needs and, if so, what are the take- aways from such discussion?

By Lord JD Waverley

Chairman of Capital Finance International

jd@goglobal.trade


When Environmental Considerations Are a Driving Force, Banking Needs a Keen Eye — and Unfailing Dedication

MBH Bank and its risk assessor have taken that message to heart.

MBH Bank management firmly believes it has a responsibility towards sustainability — as a financial institution, in lending and investment practices, and in day-to-day operations. It has taken great strides, under the watchful eye of deputy CEO and CSO, András Puskás. As the deputy CEO for municipal services, churches, ESG and sustainability, communications, and government relations at MBH Bank, he has a full plate.

[caption id="attachment_26143" align="alignright" width="500"] Deputy CEO and Head of Risk-assessment: András Puskás[/caption]

One of the bank’s main goals is to be the market leader in sustainable finance — and it nailed its colours to the mast when it established a dedicated ESG and sustainability division last year. The bank has embedded ESG assessment into the entire loan-approval process.

“I am often asked what I think is most challenging on that path,” says Puskás. “It’s probably the management of the immense amount of data that is necessary for all the disclosures we have on our hands.

“That’s why one of our key projects — which MBH Bank has just launched — is to create a company-wide data pool that will enable us to meet these obligations more easily, and at the same time provide our own top management with better-quality data for decision-making.”

In practice, this means that MBH Bank will assess ESG risks for most loan transactions, providing a complete picture of sustainability risks over a three-year horizon.

Puskás is an old hand in this field. He graduated from the Budapest University of Economics and Public Administration with a degree in economics in 2000. He worked for the Ministry of Finance as chief of cabinet in the Cabinet of Ministers.

He then served as deputy mayor of the City of Budapest, where he was responsible for urban development. Since 2014, he has worked as deputy CEO and member of the board of directors of the Hungarian Export-Import Bank and the Hungarian Exporthitel Biztosító.

He was deputy CEO for risk and operations at Budapest Bank, and a member of the bank's senior management and board of directors since 2018. He headed risk management, operations, IT and the project-management office (PMO).

“I came across this quote from Alan Kay which says, ‘The best way to predict the future is to create it’,” András Puskás says. “I think it fits well in this context. In that spirit, to create the future we aspire to, we will continue to invest in our people — in their skills, training, and development.”

There would also be investment in clients and customers, he said, via product- and service development and innovation. “And, of course, in Nature and the planet, through our biodiversity initiative, which will soon be launched.” His general advice is a rallying and optimistic cry: “Let's all continue to invest in the future.”


Gimme an E! Gimme an S! Gimme a G! What Does that Spell? Future Prosperity — and a Healthy Planet

Society has always demanded that companies serve a social purpose — and Hungary’s MBH Bank has consistently stepped up to that mark…

Leading Hungarian financial institution MBH Bank has lofty aims — and an ambitious strategy to match.

It wants nothing less than the enduring economic and social development of the country. That means knowing how to precisely map environmental and socio-economic impacts.

In May, MBH Bank finalised the one of the biggest deals in Hungarian history: a triple merger that created the country’s second-largest banking group. MBH is a market leader in several areas, including corporate lending, SME lending, the leasing market, and the agri-food sector. It is engaged in a wide range of financial, capital market, and investment activities.

The aim is to serve retail, corporate and institutional clients with modern financial services, and an ever-expanding range of accessible products. The bank takes sustainability to heart — in its lending and investment practices, and in all its operations, under the leadership of deputy CEO András Puskás.

MBH Bank believes that ESG should be integral to business transformation, something it has borne in mind in the years leading up to the merger. The three member banks have provided MBH with an impressive collective legacy to build from. They sought to preserve and develop best practices in the corporate social responsibility and sustainability. To capitalise on the momentum of the merger — and mindful of the responsibilities that came with it — MBH Bank has made major advances in ESG.

The Journey

Some important boxes needed ticking last year. MBH set up an ESG and Sustainability Department to manage projects and processes in an integrated and cross-functional way. It formulated its own ESG strategy, integrating existing operational initiatives from that shared heritage into a strategic framework.

It was necessary to quantify various aspects of sustainability, and to rate loan purposes and clients on that basis. The gradual extension of this, and its increasing inclusion in pricing, is aimed at bringing about real, relevant change. The bank learned about the ESG-readiness of its clients by data processing. This has boosted lending for responsible and effective products and services.

By the end of 2022, MBH Bank had strengthened its ESG commitment and become a signatory to the UN Principles for Responsible Banking. The bank says the move was “inspiring”, and opened new horizons and perspectives. It guides signatories towards an impact-based approach to their business portfolio, to closely scrutinise activities, and to commit to achievable targets with the most significant impact.

MBH Bank is at an early stage of the journey — but passing those first milestones has assured management that it has in place the tools needed to make noticeable improvements.

The E in ESG

MBH Bank has found that the social elements of ESG — once considered secondary to environmental factors — are increasingly important. They are entrenched in decision-making across functions and processes, how a firm manages its workplace relationships, and factors-in characteristics of the societies in which it operates.

Social elements run across multiple business areas, from HR to finance and product design. It is crucial, the bank says, for social considerations to be embedded in the formulation of business strategy.

MBH places great emphasis on the “E” of ESG, moving towards paperless offices and energy-efficiency to reduce its environmental footprint; it seeks smart, science-based ways to offset any emissions. Paper consumption has reduced year-on-year. Hundreds of square metres of solar panels have been installed on office buildings — and new sustainable avenues are being investigated, and discovered.

MBH Bank launched a Net Zero Banking project this year to calculate its corporate footprint. As a next step, it plans to work with an international environmental organisation to make the most innovative and accurate decisions to reduce cut emissions — and offset those that can be reduced no further.

The vision is to achieve resilience through responsibility in March, the bank and 100 or so colleagues planted the first 10,000 trees of the MBH Forest — with the next 10,000 planned for next Spring.

MBH Bank has set the goal of establishing transparent external and internal operations to incorporate sustainability-related policies and rules into corporate governance. It believes that companies that remain focused on social purpose and corporate responsibility are more resilient in times of challenge or change.

In-house, MBH has policies and programmes in place that support diversity, equity, and inclusion. In the wider world, it develops products and services that will encourage — and enable — customers to adopt more sustainable consumption patterns.


PwC: ‘When it Comes to Securing the Future, There’s No Time Like the Present’

ESG and sustainability priorities are increasingly important business considerations; PwC Luxembourg is on the case…

Goodbye theory, hello action — PwC Luxembourg is empowering company leaders to execute successful ESG transformations.

ESG is proving to be a bigger disruptor than digitalisation, and it’s driving a wedge between the leaders and laggards of tomorrow. Accounting multinational PwC has a steady hand on the tiller, supported by a passionate community of experts working towards a common goal.

The PwC focus is on performance, long-term value creation, risk exposure and volatility, and stakeholder benefits. That ties in perfectly with ESG: companies with higher ratings statistically generate higher returns, lower risk, and less volatility. Stakeholder benefits are many, from improved customer experience and retention to a lower cost of capital, boosted productivity, and talent retention.

Transparent reporting has brought PwC Luxembourg recognition, trust, and credibility in the eyes of governing bodies, clients, as well as international recognition. These are the spoils of the battle to help companies get ESG transformation right.

With the increasing need to think and act sustainably, PwC Luxembourg’s goal is to ease the path to ESG transformation. It involves bringing together problem-solvers to tackle strategy, deals, people, tax, legal, assurance, reporting data, and technology. Businesses are assisted to integrate ESG at every level of operation. Whatever the starting point, PwC is ready to help. It provides solutions across the value chain of asset managers in public and private markets, from strategy and reporting to data management and assurance.

“We support the global development of sustainability goals and contributions by publishing thought-leadership papers and fostering exchange around sustainability topics sponsoring communities, platforms and client events,” says deputy managing partner Olivier Carré, technology & transformation leader at PwC Luxembourg.

Sustainability is core to the business and one of three key success factors, he says, along with the PwC team’s professional judgment and the technological transformation of internal and client services. “These factors are interrelated,” says Carré. “The positive impact on our clients, staff, and community is measured not only in monetary turnover, but in non-monetary outputs: wellbeing, greater social and governance equality, and improved living standards.”

Frédéric Vonner, sustainability and sustainable finance leader at PwC Luxembourg, said recognition in the form of international awards was gratifying and encouraging. “We’ve helped our team members to grow the right skill sets to assist clients in their ESG transformation,” he says, “from designing and operating a strategy to reporting on the key outputs.”

Leveraging on the strong investment fund sector of Luxembourg, PwC has been helping asset managers in public and private markets. “We developed strong knowledge of the various international reporting standards,” says Vonner. “We’ve accompanied international public organisations to design and deploy ESG strategies and policies.”

PwC Luxembourg believes the business community has a key role to play in the fight against climate change. The company is committed to a central role, and the reason for the firm making a global, science-based commitment to reach net-zero greenhouse emissions by 2030.

The aim is to deliver on the firm’s purpose by having a strong corporate responsibility and sustainability strategy in place.

As PwC so succinctly puts it, there’s no time like the present to secure the future.


Embracing ESG Transformation: Turning Ambitions Into Action

Two PwC Luxembourg partners giving support and guidance to companies in their transformation journeys.

This year brought with it the urgent need to dive deeper into the evolution of ESG and sustainability priorities.

At PwC Luxembourg, two partners have been leading a 60-strong team of professionals with expertise in multiple areas. Together, they have been helping to re-define business models, product strategies, and sustainability engagement.

Olivier Carré is deputy managing partner and technology and transformation leader of the Country Leadership Team (CLT). He previously served on the CLT from 2019-2023 in the capacity of financial services leader for markets and strategy.

[caption id="attachment_26222" align="aligncenter" width="900"] Deputy managing partner and technology and transformation leader of the Country Leadership Team (CLT): Olivier Carré[/caption]

Carré joined the firm in 2003, and became partner in 2009. He has led the Regulatory Advisory Team from 2013 and served as the banking industry leader from 2014 to 2017. He holds the role of client-service sponsor of sustainable finance (CSDR, SFDR, taxonomy) and MiFID services at PwC Luxembourg.

Carré shares a vision for the firm to leverage its pivotal role in addressing the issue of sustainability from various angles: (i) client services providing trust and business model enhancements, (ii) investment product re-design and investment due diligence services, and (iii) corporate sustainability strategies and disclosures.

PwC Luxembourg contributes to the Grand Duchy's socio-economic development and provides a sustainable work environment for its staff. This continual striving for excellence has established the firm’s status as an impactful, influential, dynamic and trusted partner. The PwC values of integrity, care, teamwork, and innovative thinking remain a priority.

Carré gained a broad experience in the financial services industry, especially in investment fund and asset-servicing industries. He led international engagements for mutual and alternative asset managers, wealth managers, and financial institutions focusing on operational change. He provides strategic advice as well as ensuring regulatory compliance.

Olivier Carré holds two Master’s degrees from HEC-University of Liège: Finance and Tax Law and Management and Economics Sciences.

Frédéric Vonner is sustainability and sustainable finance leader at PwC Luxembourg, providing clients from the financial services sector with strategy advice, and guidance on regulatory compliance and practical implementation. He also co-ordinates the practice of targeting clients outside of the financial services industry.

[caption id="attachment_26221" align="aligncenter" width="900"] Sustainability and sustainable finance leader: Frédéric Vonner[/caption]

Since joining PwC Luxembourg in 2003, Vonner has cultivated a wealth of expertise across various industry segments. His expertise ranges from deep knowledge of regulations pertaining to UCITS, AIFMD, and depositary matters, to private equity and real estate vehicles, banking, the GDPR, and data privacy.

His clients include global asset managers, fund service providers and banks, within and outside the Grand Duchy of Luxembourg. Since 2022, he has been acting people leader for the Advisory Line of Service. He is also a member of the asset and wealth-management leadership team.

In addition to his work with PwC, Vonner designs and provides technical and soft skills training sessions. He has also served as associate lecturer on investment funds at the University of Luxembourg. Since June 2022, he has been on the board of Inspiring More Sustainability (IMS), a non-profit promoting sustainability in the private sector to "make Luxembourg the reference point for a prosperous and sustainable society”.

Frédéric Vonner holds a Master's degree in Finance and Insurance from the University of Nancy, in France.


Poland Votes: PiS Stranglehold on Power in the Balance

Clutching at straws. With the slimmest of margins, voters in Poland opened a narrow path for the pro-EU opposition to reclaim power after eight years in the proverbial wilderness. With fear and ill-disguised loathing, the European Union watched as the national-conservative Law and Justice party (PiS) of deputy prime minister Jaroslaw Kaczyński (74) prepared to claim its third consecutive victory at the polls.

Whilst PiS did not disappoint in Sunday’s parliamentary election, securing 36.8 percent of the vote (43.6% in 2019) according to an exit poll by Ipsos, the party is unlikely to cement a coalition that represents a parliamentary majority. Its only possible partner, the far-right Confederation Liberty and Independence, has already discarded joining PiS in government and returns with a much lower-than-expected twelve seats in the 460-strong Sejm, Poland’s lower house.

The Civic Coalition headed by former prime minister and EU Council president Donald Tusk (66) received 31.6 percent of the vote. A possible coalition with Third Way (13%) and The Left (8.6%) would enable Mr Tusk to form a government. The three parties indicated that they are ready to govern the country. However, as the largest party, PiS will get the first shot at finding a parliamentary majority.

PiS chairperson Kaczyńsky remained hopeful and speculated that the exit poll may underestimate the party’s performance: “some voters would rather not admit voting for us.” The official result is expected this evening or Tuesday morning. At 73 percent, voter turnout was the highest since the fall of communism in 1991. At some polling stations, people had to wait for up to six hours before being able to cast their vote.

Younger male voters, frustrated with the PiS high-handedness and largely ignored by the more progressive parties failed to come through on their intention to vote far right. The 18-to-24-year-olds, who make up just seven percent of the electorate, Younger female voters tended towards the left-over issues as abortion and women rights.

The Confederation Liberty and Independence was expected to come in third but ended behind Third Way and The Left barely scraping together enough votes to meet the five percent required for a representation in parliament. According to Ipsos, turnout amongst young voters was particularly high.

The election pitted the conservative rural vote against the more progressive urban one in an exceptionally divisive campaign. If returned to power, Mr Tusk promises to reinsert the country into the heart of Europe by undoing the judicial reforms that undermine the independence of courts - a long-standing bone of contention with Brussels.

The Civic Coalition also wants to re-legalise abortion, end discrimination of LGBTQ+ people, remove the institutional bias at state media outlets, and mend relations with Ukraine after the unilateral imposition of a ban on grain imports from the war-torn country. In early morning trading, the Polish zloty was up by about 1.3 percent against the euro, expressing the market’s relief at the outcome.

Back From the Brink

Under PiS rule, Poland drifted towards the political fringes of the EU, becoming an outlier much like Viktor Orbán’s Hungary. Last year, the European Commission withheld €35.4 billion in coronavirus recovery funds over rule-of-law concerns. The commission also fined the country €1 million (£870,000) per day for ignoring a ruling of the European Court of Justice, halving the penalty after the country’s parliament approved two key pieces of legislation that sought to address EU concerns.

Since PiS has been in power, Poland has repeatedly run afoul of EU legislation. In 2021, the country’s constitutional tribunal - stuffed with judges appointed by the party - ruled that some provisions of the consolidated treaties that were signed upon EU accession clashed with the constitution. The ruling effectively rejected the well-established and -accepted principle of EU law primacy over domestic law.

At the time, speculation about an impending ‘Polexit’ ran rife although opinion polls invariably showed that an overwhelming majority of Polish voters (averaging 88%) wished for the country to remain a member of the bloc.

The return to power of a coalition presided over by Donald Tusk would be warmly welcomed in Brussels and take the wind out of the sails of eurosceptics such as prime minister Orbán of Hungary. Mr Tusk has also indicated he will stop Poland’s opposition to institutional reforms currently being debated in Brussels such as the extension of qualified majority voting to foreign policy issues.

That change would not only facilitate the decision-making process in an enlarged union but would also stop smaller member states from blocking legislation aimed at strengthening political cohesion. Moreover, the move would counter attempts by Russia to sow discord in the EU via proxies, such as Hungary and possibly Slovakia.

The election was far from perfect with one-sided reporting on state media and entities such as state-owned oil company Orlen reducing fuel prices in districts where the opposition was seen to have an edge. A simultaneous referendum on four topics central to government policies was boycotted by the opposition and failed to attain the fifty percent voter turnout required to be validated.


Committed to the Future, Driven by Passion, Dedicated to Clients, and Steadfast on Sustainability

Swiss asset management firm keeps a tight focus on its core values, customer needs, and the drive for responsible investment

[caption id="attachment_26317" align="alignright" width="400"] Daniele Mallozzi, CIO of Taurus Asset Management SA Lugano[/caption]

Taurus Asset Management SA Lugano is committed to a prosperous future, emphasising growth and the diversification of its service offerings.

A dedication to innovation and development propels the business, ensuring the ability to cater to evolving client needs. The company advocates a shift in the sector towards sustainable and responsible investing, which have always been its core values.

Taurus Asset Management SA Lugano backs industry calls for clearer and more consistent regulation across jurisdictions to empower informed decision-making and comparison. It recognises the vital importance of ESG parameters and sustainability principles. As investors increasingly seek alignment with those values, the company responds with targeted funds — and remains steadfast in its own commitment.

“My aspiration is to leave a legacy of responsible and sustainable financial management,” says chief investment officer Daniele Mallozzi. “I hope to inspire the next generation of leaders to prioritise ESG principles, ethical investing, innovation, adaptability, and a client-centric approach."

In asset management, a thorough understanding of the sector’s intricacies and competitiveness is paramount. Profound market knowledge, a proven track record, and the cultivation of trust-based client relationships are indispensable. That has become the cornerstone of asset management — and it matures over time.

A striking feature of the company's evolution has been the growth in AUM and its steadily expanding network of clients and partners. This reflects strong performance, and the trust the firm has earned.

Mid- to long-term challenges involve increased competition and a continuously evolving regulatory landscape. Taurus Asset Management SA Lugano distinguishes itself through its products and services, rapidly adapting to new regulations and guidelines.

For a global enterprise, a robust presence in every market of operation is essential. This requires a deep understanding of local markets, culture, and regulations. The company is committed to bolstering its international footprint, while maintaining a strong presence in Switzerland.

The short- to mid-term outlook for asset management is promising, believes Mallozzi. But escalating competition demands ongoing innovation.

The company is driven by passion, and the dynamic nature of the business world is a perpetual source of excitement. A steady stream of opportunities motivates the Swiss firm to build an enterprise capable of generating value for clients and shareholders.

Lessons learned by the company over the years underscore the importance of relationship-building — and of unwavering hard work. A network of support and dedicated effort are indispensable factors.

Taurus Asset Management SA Lugano boasts an entrepreneurial management style with a focus on innovation and customers, and a commitment to staying at the forefront. It prioritises proactive risk management with a dedicated, expert team, diversification strategies, and continuous monitoring.

The investment strategy centres on research, economic and market analysis, and that steadfast commitment to ESG principles. This enables the company to create diversified portfolios aligned with client objectives.

Asset management is evolving in-step with emerging technology for data analysis and portfolio optimisation. AI and machine learning enhance investment decisions, while digital platforms provide clients with accessible and efficient services.

The company contributes to the communities it serves via philanthropic activities and ESG-aligned investments. These factors, and a dedication to innovation, distinguish Taurus Asset Management SA Lugano from its competitors.

The wealth management sector is poised to embrace increased personalisation and technology integration. Clients expect tailored solutions that match their goals and values, supported by tech that enables accessible and efficient services, including digital advisory platforms and advanced data analytics.

“Taurus Asset Management SA Lugano stays true to its mission and values through open communication, training, and a sense of shared purpose,” says Mallozzi. “Our transparent corporate culture encourages employees to embrace our values, with ongoing training programmes to keep our team informed of industry trends and best practice.”


The Changing Face of Business Travel (and How Best to Reap the Benefits)

Some major changes are impacting business travel — and one of the most noteworthy is the new digital ID system.

The move was recently proposed as a way to close the technological gap between the UK and other countries. The British Department for Science, Innovation and Technology is legislating on the issue, and a bill on digital IDs has had its first reading in Parliament.

Experts believe this technology will soon be used at passport controls. Air passengers should be able to check-in remotely, with their identities instantly verified via facial recognition software. Digital ID could allow frictionless transition between check-in, bag drop-off, security, passport control and the boarding gate, removing the need for a physical ticket — or a passport.

Business travel is on track to rise by more than 40 percent — the largest increase since the 1980s — and hotel prices are up 54 percent as travel returns to pre-pandemic levels. Industry conferences have made a parallel comeback — with prices also on the rise, and per-capita attendee costs up by as much as 25 percent.

Rising prices will always be a challenge for businesses, but several factors can help. Advance planning is essential to managing expenses, negotiating rates, and making use of reward schemes offered by most airlines, hotels, and car rental companies. Make sure your company is collecting points — and employees are using them.

Scammers are taking advantage of lengthy wait times, increased passport application fees, delays and strikes by offering “fast-tracked” services. These con artists offer rapid passport renewals via email, and those who fall victim could find themselves unwittingly handing over their personal data— and their cash. It’s important to be vigilant and look for warning signs. Always check website URLs, read independent reviews, and pay for trips using a business credit card or PayPal's buyer-protection service.

London authorities are keen to encourage passengers to return to public transport in pre-pandemic numbers, and have reclassified off-peak travel to include Fridays. The Transport Secretary is said to be investigating how national rail network ticketing can improve, with return fares set to be eliminated. Cheaper off-peak fares and flexi-season tickets for rail commuters could give business travellers a better deal. Making any travel fare less expensive will always be useful — and companies may start to organise meetings or travel for the end of the week.

Expedia has launched a trip-planning app, powered by ChatGPT; the inclusion of AI could soon be combined with other travel datasets to strengthen results. The quality of the output remains untested, but the pace of adoption is remarkable — and ChatGPT4 does give reasonable itinerary suggestions. Fears have been raised that travel management companies could be rendered redundant, but most commentators believe AI won’t disrupt everything.

AI can only create content from existing information or data; it has no authority or ability to correct itself or identify new concepts. But travel businesses might consider whether such tools can help us to perform better at basic tasks, such as research or presentation planning.

By Kevin Harrison Managing Director at Good Travel Management


Compelling Case for Making Guinea the Destination for Your Next Investment

When you consider the appeals and advantages of the West African country, think beyond extractives...

World renowned as the home of the largest bauxite and untapped high-grade iron ore reserves, the West African nation of Guinea is open for business — and welcoming investors from outside the extractives industry.

The country was recently in the spotlight following the relaunch of the Simandou iron ore project. One of the largest mining projects in global development, the Simandou mine is estimated to hold over four billion tons of ore. The mega project, valued at $15bn, is a joint venture between Rio Tinto, the Aluminium Corporation of China, China Baowu Steel, Winning Consortium and the Guinean company United Mining Suppliers International. As well as iron ore extraction, the Simandou project involves the construction of a port and a cross-country railway.

Guinea’s resource riches are not limited to iron. The country is known as the second-largest producer of bauxite in the world (after Australia). The ore remains the country’s largest export, but refineries backed by government incentives are developing the capacity to locally transform bauxite into aluminium.

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While mining continues to be the driving engine of the Guinea economy, other sectors are attracting FDI. Over the past decade, close to $2bn has been invested in the construction of major hydroelectric dams, ensuring energy access to the capital, Conakry, and the major bauxite exploitation zones in the north-west.

With less than 10 percent of its 6,200 MW of hydropower currently exploited, and high potential for wind and solar energy, Guinea is set to become a major exporter of sustainable energy.

The deep-water port and trans-Guinean railroad being built in association with the Simandou mining project typify the national infrastructure boom. Roads and bridges are shooting up, in the seaside city of Conakry and throughout the country, making the transport of people and goods easier than ever.

Housing remains a challenge for the country’s 14 million inhabitants. In the capital alone, there is a shortage of some 500,000 units. This prompted the government to introduce major tax incentives for social housing construction, and create an agency dedicated to financing and constructing decent, affordable housing.

With 59 percent of the population working in the agricultural sector, it has been designated a development priority by Guinean authorities and their partners. The World Bank Group is injecting over $140m to develop agri-business, helping the country take advantage of its 13.9 million hectares of arable land, and over a thousand waterways.

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Another sector seeing a sharp rise in interest is tourism. With sandy beaches, lush forests, trekking-friendly terrain and unique fauna and flora, Guinea a sure-fire destination for a boom. Major hotel chains and airlines such as Sheraton, Air France/KLM, Brussels Airlines, Emirates and dozens of others have recently extended their reach in the country. Work has just begun on a $200m public-private partnership in the modernisation and extension of Conakry's Ahmed Sékou Touré International Airport. Capacity will increase from 500,000 daily passengers to three million by 2025.

With six bordering nations and maritime access, the country’s geographical location is a major plus —particularly for opportunities coming from the African Free Trade Agreement. Also advantageous is Guinea’s generous investment code which offers fiscal and tax incentives. The code guarantees investment security by allowing sole ownership of businesses by foreigners and easing the international repatriation of company profits.

For those considering exploring Guinea as an investment destination, there’s a partner ready to help. The Private Investment Promotion Agency (APIP-Guinée) is nicknamed “the Investor’s One-Stop Shop” for a reason. It gathers all the services an investor might need in one place. From business registration to accessing the incentives of the Investment Code — without forgetting aftercare — the agency helps investors to navigate the Guinean business climate.

APIP will showcase the country’s appeal when it hosts the third edition of its Guinea Investment Forum in early March 2024. The first hybrid expo gathered over 1,600 participants in Conakry in 2021, and the second, in Dubai, brought in 1,400. Conakry is braced to welcome thousands more for the third edition.

From infrastructures to agri-business to green energy and eco-tourism, Guinea offers many alternatives to the extractives industry. When you think of Guinea, think beyond mining.


The Oyster’s Gift to the World: Gods’ Tears, Symbols of Purity, and Mourning Wear for Royalty

Passion, beauty, wisdom and wealth — these natural wonders are as rich in meaning as they are in lustre.

The opalescent orbs have been a go-to accessory for style icons past and present: Coco Chanel, Princess Diana, Madonna, Anna Wintour, Sarah Jessica Parker, Rihanna, and, of course, Audrey Hepburn, all wide eyes and chiselled cheekbones in Breakfast at Tiffany’s.

The understated beauty and elegance of the pearl, the queen of gems, has enchanted us through the ages.

American poet and wit Dorothy Parker once said, “When I’m cold I just put another rope of pearls on.” Jackie Kennedy, who captivated the world with her timeless style, summed it up in characteristic form when she noted that “pearls are always appropriate”. The cool and unforgettable beauty Grace Kelly also had something to say on the subject: “I favour pearls on screen, and in my private life.” As Princess of Monaco, her love affair with pearls gained a new dimension.

And it’s not only women. Tormented genius Vincent van Gogh said: “The heart of man is very much like the sea. It has its storms, it has its tides, and, in its depths, it has its pearls, too.” Scarlett Johansson played the titular role in The Girl With The Pearl Earring, a film based on the famous Dutch artwork.

Ever since someone shucked an oyster and found the luminous treasure nestling within, pearls have been objects of desire. It’s difficult to pinpoint when they were first worn, but we do know that they were presented as gifts to Chinese royalty as early as 2300 BC. They were also considered the ultimate status symbol in ancient Rome. Julius Caesar went so far as to pass a law limiting their use to the ruling classes.

So entrancing are they that their mysterious beauty has been woven into mythology, royalty, and religion. In the Arab world, pearls were considered the earthly form of tears from the gods. The ancient Greeks agreed, and believed that Aphrodite, the goddess of love, shed pearl tears. Christians pay reverence to the Pearly Gates at the entrance to heaven. In Hindu culture, pearls are historically associated with the moon, symbolising purity. The English idiom refers to wise words as “pearls of wisdom”. Pearl aficionados can tell the difference between natural and cultivated pearls at a glance, but to the uneducated eye they can be tricky to differentiate.

Queen Elizabeth I, aka the Virgin Queen, proudly wore her pearls as a symbol of purity and chastity — and as a display of her immense wealth. The much-loved and recently deceased Queen Elizabeth II was seldom seen without her pearl necklace as she went about her public duties.

During the reign of Queen Victoria, pearls came to be associated with mourning in the Royal Family. After the death of Prince Albert, Victoria chose to wear only “colourless” jewellery to accessorise her widow’s weeds. She developed a strict etiquette around widows’ mourning rites, including wearing black for a year and a day after the death of their husbands and wearing subtle jewellery.

Pearls, with their soft glow, sometimes tear-drop shape and association with purity, were accepted as suitable mourning jewellery — and the tradition continues. Queen Elizabeth II wore pearls to her parents’ funerals, and that of her husband Philip, Duke of Edinburgh. Catherine Middleton, Princess of Wales, continued the tradition by wearing the late Queen’s four-string pearl set and diamond choker to the monarch's funeral.

During the nation’s days of mourning, she also wore the late Queen’s pearl-and-diamond brooch to a service at Westminster Hall — paired with her late mother-in-law's pearl and diamond earrings.

Our relationship with pearls is deep and ancient, and to paraphrase the classic parable — the truth itself is a pearl of the greatest value.

By Naomi Snelling


A Passion for Inclusivity and the Arts: Meet the Chief Exec of an Islamic Bank

Mufaddal Idris Khumri, CEO and managing director of the Maldives Islamic Bank, has deep expertise in the sector...

Mufaddal Idris Khumri is an expert in the Islamic banking system, with more than a quarter century of experience under his belt.

[caption id="attachment_26293" align="alignright" width="500"] CEO: Mufaddal Idris Khumri[/caption]

His career history includes all fields of commercial banking: business strategy, digital and technology, corporate and retail banking, wealth management, payments, treasury, and risk functions. He established, and headed, two Islamic banking windows in United Arab Emirates. Those provide services based on Islamic principles through conventional banks — in this case, the Abu Dhabi Commercial Bank (the UAE’s third-largest) and for National Bank of Ras Al Khaimah (the country’s leading SME and payments institution).

He started his career with ICICI Bank, India’s second-largest private sector bank, as a management trainee. Prior to this, he had been a columnist for Business Standard, an Indian financial newspaper.

During his tenure in UAE, he launched two Islamic finance companies there with a combined capital base of $162m. He served as managing director of Abu Dhabi Commercial Islamic Finance (ADCIF). At ADCB, he has handled the $1bn India Millennium Deposit portfolio. Mufaddal Idris Khumri has handled more than 20 large IPOs, and the Islamic business at ADCB amounted to more than $6bn.

Prior to joining Maldives Islamic Bank, Khumri was the head of retail business in UAE for Saudi National Bank, Saudi Arabia’s largest, based out of Dubai. At the National Bank of Ras Al Khaimah, he served as director of retail banking and payments — in addition to his role as head of Islamic banking, which included the SME and corporate banking portfolio. The retail business in National Bank of Ras Al Khaimah had a gross revenue of more than $700m.

While at ICICI, he played a key role in furthering the non-resident Indian business. He was deputised to the Middle East in early 2000, where he worked with banking partners across all GCC countries for remittances, payments, and investments. He was instrumental in setting up the money2india remittance portal, and creating alliances with banks and exchange houses across the GCC to facilitate staff deputation and strategic alliances.

Mufaddal Idris Khumri has a Master’s in Management Studies and a Bachelor of Commerce from the University of Mumbai. He completed a fintech course from the University of Oxford, and regularly attends seminars and fora as a speaker.

He has held representations in the UAE Banking Federation’s Islamic & Retail Banking Committee. He has held membership status in the Islamic Finance Advisory Council at Dubai International Finance Centre. Khumri writes for Islamic finance publications, and has co-authored a book, Assassinations That Altered the Course of History.

He is a fan of Urdu poetry and classical music, a people-person in the purest sense, and a team player to his core. He is a strong proponent for inclusivity in the workplace, and welcomes the strengths that various ethnicities, nationalities, and skill sets provide.


Pioneering Shari’ah Finance Philosophy with a Go-Ahead, Client-Centric Stance

Collaboration and consideration of diversity has taken MIB to the forefront of banking in Maldives

The story of the Maldives Islamic Bank, the first and only fully Shari’ah-compliant bank in the South Asian country, is one of collaboration.

The Islamic Corporation for the Development of the Private Sector (ICD), the private arm of the Islamic Development Bank Group (IsDB), and the Government of Maldives, represented by the Ministry of Finance, entered into an agreement on October 4, 2009.

[caption id="attachment_26294" align="aligncenter" width="1000"] Malé, Maldives. Photo: Shahee Ilyas, CC BY 3.0, via Wikimedia Commons[/caption]

Their aim was the development and launch of Islamic banking services in the Maldives, fully in-line with principles of Shari’ah. It opened its doors to the public on March 7, 2011, with the inauguration of the main branch in the capital, Malé. Expansion to all major population centres of the nation swiftly followed.

There are now six branches in five atolls across the island nation. MIB has been listed on Maldives Stock Exchange — as the only full-fledged Islamic bank in Maldives — since November 2019. Today, 20 percent of its share capital is owned by the general public, in line with the principle of increasing public participation.

Incorporated as a PLC, MIB came into being with the intention of providing an alternative for those dedicated to compliance with the principles of Islamic banking. The primary goal was to provide an opportunity to be a part of a fast-growing global community. “We are an active participant in the development and promotion of a viable Islamic economics and financial system in the Maldives,” says CEO Mufaddal Idris Khumri.

“We provide a full range of Shari’ah-compliant deposit products and financing solutions catering to the general public, both individuals and businesses. We provide services through a branch network in nine island locations to meet the growing demand.”

The bank has a strong ATM network, with point-of-sale terminals at merchant outlets and available via its online services, FaisaNet and FaisaMobile. The aim is to exceed customer expectations of modern banking services.

Pioneer in Banking

Until MIB started its operation, Islamic banking was not available in the country. The launch brought to reality a long and cherished pursuit of the service.

Since its inception, MIB has implemented unique business models and contributed to the development of a financial system that runs in parallel to conventional ones.

Fully-fledged Products

MIB’s extensive range of compliant financing products has enabled the bank to get a firm foothold in the market. Its comprehensive portfolio, and its deployment of funds to financing individuals, benefit local SMEs and corporates. They have also allowed Maldives Islamic Bank to meet customer needs in the areas of retail, corporate, and SME banking, as well as trade and project financing, and general asset financing. The bank strives to regularly diversify and enhance its portfolio. It has opened its doors and launched non-resident foreign accounts, expanding its services to a broader audience.

Customer service is central to operations, delivering a holistic experience to its clients. All aspects are carefully monitored and fine-tuned. Value-added services are linked to secure and reliable technology. Long-term relationships are favoured over one-off transactions, and referrals by existing customers show the proof of concept.

The bank has 24/7 helpline and ticketing systems, constantly monitored by customer service teams. MIB has introduced convenient and flexible modes of communication, including chat, social media, and email.

Reliable Infrastructure

The bank and its operations are complemented by a network of state-of-the-art digital infrastructure. Special attention has been paid to establishing safe, secure, innovative and resilient systems which give customers confidence. MIB continues to offer a range of secure platforms for internet and mobile banking, and trustworthy distribution channels including ECRMs, ATMs, POS machines and cards, in addition to payment gateways and customer application portals.

MIB's service application portal "ApplyNow" has been integrated with the National Digital Identity system "efaas," enabling customers to complete the full customer journey digitally without having to be physically present for verification. This makes it convenient for the customer, allowing them to apply for any service anytime, anywhere. With efaas integration, the customer's bank account can be opened instantly, and they can apply for the card simultaneously.

Human Capital

MIB’s success is largely thanks to the strength of its workforce, whose experience and specialised knowledge allow clients to meet multiple challenges in a dynamic business environment. Continuous development and retention of the diverse staff is ensured via advanced recruitment procedures, as well as training and promotion. Dedicated human resources continue to drive MIB’s operations and performance and is one of its primary pillars. MIB proudly stands as the only Islamic bank in the world with a majority female workforce, showcasing diversity and inclusivity. It takes pride in its youthful workforce, with an average employee age of 31, reflecting the dynamism and innovation of a millennial-driven bank.

The positive, results-orientated and friendly culture is warmly embraced by its 250 employees. While more than 97 percent of staff are Maldivian, the cadre is supplemented with foreign employees. This has allowed the bank to identify and adhere to best practices and bring a fresh outlook. Maldives Islamic Bank adopts performance-driven rewards systems to ensure fair compensation. MIB empowers its team with autonomy and accountability, and celebrates individual differences by supporting the development of each employee.


SteadyPay Embedded Microfinance Fintech: Safety Net for the Gig Worker

SteadyPay, the award winning FinTech, is at the forefront of delivering accessible and innovative financial solutions for independent workers in the UK's gig economy. In an industry where income fluctuations are commonplace, SteadyPay stands out as an ethical financial provider, eschewing interest charges in favor of a simple transparent subscription fee.

[caption id="attachment_26313" align="aligncenter" width="900"] John Downie CEO & Viktor Muhhin CRO[/caption]

"Our commitment to transparency means no hidden fees or accruing interest," says John Downie, CEO of SteadyPay. "While conventional loans pile on interest, SteadyPay offers a clear and straightforward financial solution," adds Downie.

SteadyPay's mission is to enhance the financial security of those often overlooked by traditional credit systems. Founded and led by John Downie, also known as JD, the CEO brings a wealth of experience in the financial services sector. JD's background provided the insights to identify what traditional banks frequently overlook. With extensive experience in credit risk solutions for major banks and successful entrepreneurship in the consulting industry, JD's journey led to the creation of SteadyPay, addressing an unmet market need. SteadyPay ensures stability and consistent earnings when income falls below the monthly average, making it a vital resource for modern workers.

“While traditional loans mount interest, with SteadyPay, what you see is what you get.”

John Downie CEO

According to JD, "SteadyPay is not just another financial service; it's a lifeline for many in today's evolving work environment."

The distinction between SteadyPay and payday loans is stark. While payday loans often come with exorbitant interest rates, SteadyPay only requires repayment of the principal amount, with interest replaced by a transparent platform subscription fee. JD emphasizes, "Our transparent structure ensures no hidden charges or accumulating interest."

In summary, SteadyPay stands out by offering a clear and ethical financial alternative to the gig economy, bringing financial stability and peace of mind to independent workers across the UK.

This interest-free micro-lending initiative is funded through a lending syndicate comprising High Net Worth (HNW) individuals and UK institutions. In return, this debt funding yields an attractive annual interest rate of 15%-18%. SteadyPay operates under the regulatory oversight of the Financial Conduct Authority (FCA).

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SteadyPay has garnered substantial investment support from a number of VCs including Ascension Ventures, Digital Horizon and many notable European fintech angel investors like Henry de Zoete, the founder of Look After My Bills which was acquired by GoCo Group PLC (owners of GoCompare) in July 2019. After raising global investment Henry also secured the best deal in the history of BBC’s Dragons’ Den.

SteadyPay disrupts traditional credit scoring methods by harnessing open banking data to focus on an individual's current financial status. The platform's subscription model includes a credit-building service, helping users improve their traditional credit scores and attain financial freedom.

Viktor Muhhin, Chief Revenue Officer at SteadyPay, or "Vik," is an accomplished entrepreneur with extensive experience in scaling businesses fast. Vik underscores the company's mission: "We are dedicated to improving the quality of life for those underserved by traditional financial institutions by offering accessible and user-friendly lending solutions. Throughout our journey, we've identified strong demand for our technology and the desire of partners to leverage our expertise, technology, and liquidity to enhance their financial performance, customer loyalty, and overall customer value."

The need for lending solutions tailored to individuals with irregular incomes is on the rise, prompting the development of a specialised solution. There is a considerable appetite for seamless integration of SteadyPay's lending platform into the offerings of neobanks and marketplaces, customised under their own branding, to meet the demands of customers actively seeking financing solutions.

"We are dedicated to improving the quality of life for those underserved by traditional financial institutions by offering accessible and user-friendly lending solutions. Throughout our journey, we've identified strong demand for our technology and the desire of partners to leverage our expertise, technology, and liquidity to enhance their financial performance, customer loyalty, and overall customer value."

Viktor Muhhin CRO

Statistics reveal that nearly two in five workers (40%) face 'persistent income volatility,' experiencing significant fluctuations in their monthly earnings at least six times a year. This income instability places considerable pressure on households, making it challenging to cover routine expenses and save for the future.

Vik emphasises, "At SteadyPay, we proudly consider ourselves both advocates and experts for gig workers. It's essential to note that the gig economy encompasses a diverse group beyond well-known platforms like Uber and Deliveroo, including individuals without a fixed income, such as hourly or project-based workers in hospitality, retail, healthcare, construction, and civil service sectors."

The gig sector's growth is not only ongoing but also a primary driver of economic expansion. In the United States, between 2010 and 2020, the overall economy expanded by a mere 1.1%, whereas the gig economy saw a remarkable growth of 15%. While the gig economy provides unmatched flexibility, enabling individuals to work on their terms, it comes with downsides, including the absence of paid holidays, sick leave, pensions, and erratic income. These challenges contribute to financial stress, resulting in a short-term financial outlook characterised by living paycheck to paycheck.

JD will be speaking on stage at the upcoming WebSummit in Lisbon, where he will speak about how fintech can help solve the cost of living crisis. As part of this they will be unveiling ExtraCash, which assists low income or low credit score workers in obtaining credit for a fixed monthly fee of only GBP £14. The product is already experiencing explosive growth, signing up thousands of new customers in the UK, with the country's cost-of-living crisis contributing to this surge.

“SteadyPay is the safety net the modern worker deserves.”

Growth is driven both by B2C and B2B business development. B2C expansion is powered by word of mouth, marketing activities, and social media outreach. The B2B strategy involves forming equitable partnerships with neobanks and other financial institutions. These partnerships provide partners with access to innovative technology for fee generation within their customer base, with the financing off-balance sheet as SteadyPay manages the liquidity. One such partner, Pockit, which offers credit to its customers, has achieved a remarkable conversion rate of over 20% among its non-prime segment. The success can be attributed to an embedded approach and proprietary open banking technology enabling preapprovals.

For many young adults grappling with financial challenges due to irregular income patterns and traditional banking obstacles, SteadyPay offers a new lifeline and a pathway to financial independence. Says JD: "SteadyPay serves as the safety net that today's workforce truly deserves".

You can meet JD and Vik at the Web Sumit 2023 in Lisbon, November 13-16.


Crypto Had a Brutal Year. What Comes Next?

An increase in caution might not be a bad thing, believes the Kellogg School’s Sarit Markovich...

The year since the collapse of cryptocurrency exchange FTX has seen US regulators, including the SEC, bring charges against the industry’s two biggest exchanges, Binance and Coinbase.

The industry is calling this new climate a “crypto winter”, and authorities have indeed taken a frosty view of digital currencies. “What we’re seeing now, after years of ambiguity and delay, is some clarity from the SEC,” says Sarit Markovich, clinical professor of strategy at the Kellogg School. “And what’s clear is that they’re not at all happy with the state of crypto.”

[caption id="attachment_26329" align="aligncenter" width="900"] Sam Bankman-Fried[/caption]

So, what might emerge from this latest moment of reckoning? For Markovich, the collapse of FTX and other exchanges was a wake-up call for an industry that lacked consumer awareness and transparency. And while she thinks crypto is here to stay, she expects to see a strong push toward defi, or decentralised finance. It means less risk that a single actor, or group of actors, can crash an exchange. In the meantime, retail investors and fintech entrepreneurs will probably move at a more deliberate pace, given the risks and the prospect of more regulatory enforcement.

“There’s definitely more caution now, which might not be a bad thing,” says Markovich. “Before the fall of FTX, people weren’t very careful in terms of the risk involved in projects they were investing in, or the level of transparency the project offered. Many of them are now entering back into the market, but they’re doing so with a little more awareness and caution.”

A Win for DeFi?

Caution is certainly justified. The trial of Sam Bankman-Fried has shown how dangerous the hype machine can be. FTX used customer deposits to invest in other companies, sponsor political ad campaigns, and purchase deluxe real estate.

FTX was a centralised exchange, which some view as its primary flaw. These exchanges tend to produce the same problems that the earliest crypto advocates were trying to solve in the first place.

The whole idea behind Bitcoin and the blockchain it ran on was to circumvent unreliable centralised institutions, such as governments and banks, which could charge onerous fees, misappropriate funds, or simply fail.

Ethereum tried to expand on this, using a network of “smart” contracts to execute transactions. With decentralised exchanges — at least theoretically — you remove the need to trust a central authority with your money, whether it’s JP Morgan, Bernie Madof, or Sam Bankman-Fried. “When you give a small group too much control over other people’s money, that’s when things are going to fail,” Markovich says. “Fans of defi are actually saying, ‘Hey, we told you so’.”

The Future of Crypto?

“Given all the uncertainty, it’s not exactly a bull market,” she says, “but there’s definitely more trust now in decentralised exchanges.” One of the most popular is Uniswap. Launched in 2018, it allows users to directly swap cryptocurrencies using Ethereum-based smart contracts.

It might not be for everyone. For those accustomed to centralised exchanges such as Binance or FTX, a defi exchange, or DEX, takes some getting used to. The typical interface is less user-friendly. There’s also the harrowing prospect of forgetting the password to unlock a digital wallet. Lose that, and you lose access to your crypto assets — forever.

The final adoption barrier has to do with the nature of trading itself — or swapping, as the users of a defi exchange would call it. Because you’re swapping tokens instead of buying them, and because the value of tokens fluctuates with each transaction, there’s an element of uncertainty when executing a swap.

Effectively, the price you get depends on whether others were able to execute transactions ahead of you. It would be like swapping dollars for yen at the airport, only much murkier, and with the possibility that you might end up with fewer yen if someone “front-runs” your swap.

And while Markovich has done research that suggests this slippage — the difference between the expected price and the actual price — is pretty close to the “spread” in centralised exchanges. It’s still a potential barrier. “Psychologically,” she says, “it’s a concern. It would take some time for people to get comfortable with that.”

Yet it does appear that the industry’s energy and innovation are moving toward decentralised exchanges. This momentum is tempered by the need for fintech entrepreneurs to avoid the mistakes that brought down Luna, one of the major defi crypto projects that went bust last year, while finding a way to offer products and services that are user-friendly and transparent.

Luna, the native blockchain token of Terra, crashed due to its connection to TerraUSD (UST), the network’s algorithmic stablecoin. Unlike fiat-backed stablecoins, special cryptocurrencies backed by established national currencies such as the dollar, UST’s stability was derived from algorithms that linked its value to Luna. While some in the defi community were sceptical that an algorithm achieve that, the hike in Luna’s price attracted many to buy the token.

“I really do see this push toward more decentralisation,” says Markovich, “and I think these projects will be more careful now with their algorithms. The fact that exchanges like Uniswap and MakeDao are still around and doing well builds a lot of confidence.”

Drop in VC Investment

At the same time, there’s been a sharp decline in venture-capital funds for crypto firms, and for blockchain technology generally.

“A lot of these start-ups know it will be hard for them to raise funds, so they’ll only spend on bets that they feel very strongly about,” she predicts. “Which means that innovation might slow down, but that could be a good thing, since some of the innovation was bad.”

It was certainly destructive. After last year’s dramatic losses across the industry, the overall crypto market is now valued at roughly a third of what it was in 2021.

The innovation that is moving forward is more focused on integrating crypto-based technologies into mainstream finance. Over the Summer, Paypal launched a stablecoin backed by the US dollar. “I think you’ll see more and more of this kind of integration,” Markovich says. “Things are still progressing, just at a slower, more careful pace.”

Showdown with the SEC

These firms have reason to play it safe. The SEC has filed a number of lawsuits as part of its effort to regulate the industry. It calls Coinbase and others “unregistered securities”. What’s interesting to Markovich is that firms are winning these cases.

In August, Grayscale received the right to create a Bitcoin exchange-traded fund. In September, Uniswap won a potentially precedent-setting case over fraud on defi exchanges. That was good news for Coinbase, because it showed there might be a limit to applying existing securities laws to crypto products and services.

But Markovich says the industry still has work to do in clarifying their platforms and protocols, so that more crypto assets can be given the stamp of legitimacy.

Following the fall of FTX, Binance started to provide what it calls “proof of reserve” to boost users’ confidence that it held the funds to back its assets. Coinbase is a public company, with all the regulation and transparency that comes with it. Still, there is a lot of discussion about the best way to prove that the required reserves are indeed held.

“I think that what Coinbase is trying to do is great,” Markovich says. “They’ve been working with the regulators and educating the market. Which is ironic, because that’s what Bankman-Fried was trying to do. It can only work if the companies are honest and transparent.

“But I think that that’s the best thing that can happen to the crypto market.”

This story first appeared in Kellogg Insight.


Collaboration, Fintech and Crypto Dominate Italian Summit, and New VC Fund Announced by Generali

Why Italy is bucking a downward trend, and some take-aways from the 2023 Milan Fintech Summit...

Italian insurance giant Generali Assicurazioni has announced a specialised insurtech and fintech venture capital fund within its larger Generali Ventures fund.

It will dedicate €250m to early-stage investments. The objective is to focus on long-term opportunities in the global innovation ecosystem. That includes project development seeking areas for collaboration. The fund will target start-ups at pre-seed and late stages, with a view to giving a boost to the insurance sector.

The news came too late for discussion at the fourth Milan FinTech Summit (MFS), but is clearly good news for the insurtech and fintech sectors. It is also a vote of confidence in Italy’s ability at financial innovation.

Fintech investment there has slowed only slightly since 2022. The overall mood in Milan was upbeat, despite geopolitical tensions and the threat of global recession. Some key themes emerged.

One is that the Italian public has embraced digital banking. The sector is seen as increasingly sophisticated, and consumers and businesses are keen to engage.

According to Statista, online banking penetration in Italy has grown twice as fast as in the rest of Europe. That brings it closer to the online banking reach of Germany. This surge helped to create the first two Italian fintech unicorns, Satispay and Scalapay.

A notable presence at the event was that of non-Italian unicorns, including Spotify, Qonto, Alipay and eToro. Representatives from global players including Visa, Mastercard, Intesa Sanpaolo and Oracle also attended, some taking to the stage. Topics included the complexity of accessing the Italian market and difficulties around regulation and customer access.

These concerns were addressed by the Italian and EU regulators present, with financial institutions and associations confirming Italy’s change of attitude and emphasising the need to attract foreign expertise — and capital.

The Italian regulators' change of perspective was echoed on a separate panel, whose members also noted the tangible change in the acceptance and support of fintech.

This shift was underlined by those in Italian fintech innovation. Another panel discussed similarities and differences in innovation between Italy, France, Spain and the UK. Miguel Santo Amaro, of VC firm Coverflex, Manuel Silva Martinez, of Mouro Capital, and Jacopo Lambri, from the European Investment Bank, provided a pan-European perspective. They described the Italian market as still trailing some European countries in terms of digital banking.

Leda Glyptis, author of Bankers Like Us was the keynote speaker; she has held senior roles at 10X Banking, 11FS, and Sapient. She said big banks were embracing digital transformation — but not making a great job of it. The title of her address, Great Ideas, Mediocre Outcomes, says a lot.

The global crunch in investment has changed the fintech ecosystem, which needs investment beyond VC money. Big banks are working with challengers and innovators to accelerate their own transformation. These trends have led to a number of partnerships around the globe.

One panel discussed how such collaborations come to fruition. The innovator and the incumbent must start to think like one another “without losing what makes them distinctive”. Fear of change, operational legacy and culture mismatch were discussed, and action points explored. Many panellists agreed that the most important thing was to “listen to what the other side needs, and don't just think about what you want”.

The panel also discussed three prominent partnerships. Christian Miccoli, of wallet provider Conio, and Emanuele Cacciatore, of Banco Desio, explained how they are working together to offer cryptocurrency services to bank customers. Vittorio Carlei, of tech firm Qi4M, and Edoardo Del Bosco, of Generali Investments, talked about adding AI-powered research to investment capabilities.

Marco Tricarico, of Switcho, and Gian Battista Baà, of Intesa Sanpaolo, explained collaboration is helping people to source better energy and utility offers.

There was much talk of the growing role of AI, the changes open banking is bringing about, and how embedded finance can make banking omnipresent.

A panel with Matteo Rizzi, of advisory firm FTS Group, Paolo Zaccardi, of Fabrick, André Gardella, of Treezor, and Laura Verguts, of Booking.com, discussed how non-financial players are seamlessly embedding financial products in their existing customer flows.

Treezor’s experience in supporting Lydia and Qonto, Booking.com’s strategy in embedding payments and offers for travellers, and Fabrick’s experience with Illimity, are some examples of embedded finance services.

A session that attracted a good deal of interest involved Silvia Attanasio of the ABI (Italian Banking Association) and Lisa Loud of FLUIDEFI, discussing cryptocurrency opportunities. They said established players and innovators could see how well-regulated cryptocurrency, issued by a central bank, could remove inefficiencies and weaknesses in the payments ecosystem. Even after FTX’s collapse, the imminent “eEuro” has promise.

This year’s Milan Fintech Summit underscored Italy’s emergence as a significant European digital financial services hub. It will be interesting to see if the country’s fintech scene will continue its current positive trajectory.

About the Author

Alessandro Hatami is MD of consultancy firm Pacemakers, and co-author of Reinventing Banking and Finance.


In a Barbie World, Why Do Women Still Seem to Be on the Losing End of the Deal?

The Summer of Barbie has been impossible to avoid as the doll’s popularity reached new heights.

A heavily marketed lead-up to the eponymous movie, starring Margot Robbie, was designed to break the cultural zeitgeist — and it did. Barbie was everywhere, and not just on the silver screen. Suddenly she was creeping onto our social media accounts and into shops, her image splashed on buses and bus stops in London and Los Angeles.

Barbie was referenced in other shows, and started taking over our conversations. You could rent a real-life Malibu Barbie Dreamhouse on Airbnb. Her signature Pantone 219 pink became so ubiquitous that it led to a global shortage of pink paint. Screens turned hot pink and exploded with sparkles when keystrokes conjured up the search for “Barbie movie”.

Cinemas reported the largest opening weekend of 2023, and the film surpassed the billion-dollar milestone at the box office. Mattel seems to have been in the pink ever since. Hollywood names like Tom Hanks, JJ Abrams and Vin Diesel have been linked to follow-up or adjacently themed films. There are 45 in development, featuring brands from purple dinosaur Barney to ‘90s toy icons Polly Pocket and He-Man

Barbie — the movie — could be seen as a two-hour ad for the Mattel doll of the same name, but it’s a brilliant one. Equal parts touching and cheerful, it’s also a meditation on what it means to be human. While Barbie tackles brand history, pokes gentle fun at consumerism and fights toxic masculinity, our heroine learns to take agency over her life. She embraces the flaws and absurdities of the human condition — even the inevitability of death — in exchange for the chance to experience a full spectrum of joy, creativity, and independence.

The most-accepted origin story starts in 1956, when Mattel co-founder Ruth Handler was inspired by a German doll called Lilli during a trip to Europe.
Handler saw potential for the US. She hired 1950s marketing expert and Freudian psychologist Ernest Dichter to observe the reaction of mothers and daughters while playing with the doll. Dichter espoused emotional messaging in advertising. Barbie was marketed as a teenage fashion model who would teach young girls the benefits of “good grooming”.

The first TV ad was aired in 1959, and by the time the next school year began orders were flooding in.

But things haven’t always been so rosy. Sales declined by 30 percent from 2011-2015, with customer feedback depicting the doll as “vapid, one-dimensional, and uninspiring”. By 2015, the end of the Barbieverse seemed nigh.

When Mattel CEO Ynon Kriez took the reins in 2018, he was the fourth company leader in four years. His predecessor resigned after a loss of more than $300m, and the bankruptcy of Toys ‘R’ Us dragged things into a downward spiral.

Barbie’s biggest challenge has been her emerging image as a reductive female stereotype.

In 1963, one infamous Barbie doll was sold with a diet book entitled Don’t Eat. This unhealthy advice came as no surprise. One famous study showed that if Barbie was a real person, she would be so thin that she would be unable to lift her head or support her body. Her ankles are so small she would be forced to walk on all fours. Her waist is so tiny she would only be able to accommodate one liver and a few inches of intestines.

Studies in the early 2000s showed that girls played with Barbies had less confidence in the way they looked. They also expressed a desire to be thinner.

This was confirmed almost a decade later by a 2016 study which found the same effect. Other research shows that even a more realistically portioned doll couldn’t undo the damage.
By the 2010s, Barbie sales were sliding and customer feedback was poor. In a bid for variety, Barbie began being sold in “petite”, “tall” and “curvy” incarnations.

Not everyone was impressed. Far-right blogger Ben Shapiro once set fire to Barbie dolls on YouTube, denounced them as “anti-men”, and gave the film a scathing 43-minute review.

Mattel can pride itself on its ability to adapt the brand to changing times. But how far can Barbie’s reinvention go?

The “curvy” Barbies released in 2016 translate to a miniature US size six, and while they might exist alongside the traditional Barbie... kids didn’t want them. In one study, girls as young as six were shown ridiculing curvy Barbie, giggling “Hello, I’m a fat person, fat, fat, fat”.

Were you to ask someone to identify Barbie, which incarnation would they pick? In the study, most pointed to the thin, blonde doll.

When the “diverse” Barbies didn’t sell, they were taken off the shelves. And other things weren’t always well thought-out. Share-a-Smile Becky, Barbie’s first friend in a wheelchair, couldn’t visit Barbie at home. The chair wouldn’t fit in the dream house. Mattel promised to look into accessibility, but Becky was swiftly removed from sale.

Barbie has “held” over 250 jobs; a modern woman with a modern world needs money to spend, after all. Barbie is a shopper, and consumerism is built into the brand.

The Barbie movie does a masterful job of circumventing criticism. Confronted with the idea she makes girls feel less good about themselves, Barbie bursts into tears. It’s so hard to be a woman!

The real question is how long the bubble will last. Is Mattel looking down the barrel of a Hasbro-level embarrassment? The figures don’t look great.

Despite all the buzz, Mattel reported a 12 percent fall in doll sales for the second quarter of 2023. Even at the height of summer, that failed to improve. The company has not generated a stock spike since the lead-up to the movie launch, and figures remain unremarkable in its wake.

But don’t expect these failures to spell the end of Barbie. The bimbo girl in a fantasy world has endured. She isn’t going anywhere, whether you view her as a reborn Venus of Willendorf or the embodiment of everything that holds women back. The movie version of Barbie may have taken control of her story, but in the real world she seems doomed to remain a tiny-waisted Rorschach test that reflects whatever the viewer is looking for — much like the real women she so desperately wants to represent.

By Kitty Wenham


Saudi’s Bid to Bring Art and Cultural Talent to the Fore

Ithra means ‘enrichment’ — and the centre in Dammam more than lives up to its name.

Global cultural and creative industries have generated a staggering $2.2tn in annual revenues and created 30 million jobs, according to a 2017 UNESCO study.

In the MENA region, creative industry growth is at more than 10 percent per year — and consumers, especially younger generations, are increasingly seeking out cultural experiences.

The King Abdulaziz Centre for World Culture — also known as Ithra — is based in Dammam, Saudi Arabia. It offers something unique: a world-class cultural, artistic and creative offering that tells a Saudi story. Ithra means “enrichment”, and this is a place for people of all ages to enjoy and explore human potential through a variety of programmes that live up to the centre’s title.

[caption id="attachment_26383" align="aligncenter" width="1000"] Saudi National Day[/caption]

Policymakers in this part of the world recognise what a vital role culture plays — not just in intellectual or elite sectors, but for society at large. Culture has become an economic engine, with significant ESG impacts — it is more than a mere channel of communication and exchange of ideas.

Culture shapes identity. And identity has important implications for international diplomacy, influence, and soft power. Saudi Arabia has integrated this awareness into its national development strategy. Saudi Vision 2030 describes culture as “essential to our quality of life”. Along with funding, Saudi Arabia has passed specific legislation aimed at facilitating cultural engagement, including lifting bans on cinema and granting tourist visas.

Flagship projects such as Ithra are Arab-focused; they go beyond the replication of Western cultural models and focus more on Saudi creatives and communities. Ithra finds itself at the unique intersection of policy, funding, training, public platforms, networking, opportunities and support for grassroots efforts.

Ithra’s initiatives, programmes and activities are based on five pillars: creativity, culture, knowledge, art and community. These pillars move in parallel to achieve three specific strategic goals: the development of creative skills, nurturing and promoting national talent, and supporting content production.

This positions Ithra as a major platform for fostering creativity and cultural exchange in the Kingdom and the rest of the world. The aim is to uncover talent, encourage and inspire creativity, and provide minds of all ages with the tools to be innovative, transforming ideas into marketable products via the latest in world-class technologies.

The desire to build a world-class library in Dhahran was the inception of what has become a much larger cultural hub housing museums, galleries, a theatre, an arthouse cinema, a great hall, offices, workshop spaces, a technology and design “ideas lab”, youth programmes, cafes, and restaurants. The building was constructed using sustainable and environmentally friendly materials and methods — a certified LEED (Leadership in Energy and Environmental Design) Gold structure.

The space has become a haven for artists and art consumers, with broad and multi-dimensional offerings.

Tanween, Ithra’s design conference, is the first and largest creative platform in Saudi Arabia, exploring technology and innovation in design, architecture, and the arts. It hosts a programme of seminars, talks, exhibitions, masterclasses, and training workshops.

Ithra’s mission revolves around the core concepts of knowledge, creativity, and innovation, as well as tolerance and diversity. These principles weave together to form a “knowledge society”, aiming to cultivate citizens and encourage originality without fear of failure. Ithra offers artists of all disciplines an environment where they can explore, work, and hone their skills.

The approach to programming is a cross-cultural one. This is evident in the building itself, where rammed earth was used to represent traditional Saudi construction methods, then combined with a complex system of steel pipes to produce a design that had never been done before. A collaboration with 40 countries led to the machinery that enabled the creation of the building — another gleam of its global, value-adding, and innovative aspects.

The building opened its doors at the end of 2018; since then, it has been instrumental in developing Saudi Arabia's arts and creative infrastructure. The Ithra Academy, launched in 2021, provides resources to every level of creative professionals, from rising talents to seasoned professionals.

The Ithra Content Initiative funds Arabic content every year — films, songs, podcasts, TV shows, books, translations, platforms and websites. Over the next five years, the Cultural Centre aims to champion the Arabic language for its beauty and relevance for generations to come.

Several programmes focus on the creation of a knowledge-based society. At the Ithra Cultural Majlis, intellectuals, thinkers and writers gather during Ramadan to discuss a diverse selection of cultural and philosophical topics.

The iRead programme was developed to inspire a new generation of readers and to promote Arabic publications and literature. By continuously creating new ways to bring diverse talents together to spark new ideas, Ithra strives to instil a passion for art — in all its forms, for everyone. The annual Ithra Art Prize awards $100,000 for a single work of contemporary art that will join the permanent collection.

Developing Saudi filmmaking is another Ithra priority. Cinema has only recently started to emerge, but is already positioning the kingdom in the local, regional, and international film scene. The programme aims to nurture and promote Saudi talent by producing films, hosting events, and training aspiring filmmakers.

At the heart of Ithra is the community. The curated programmes seek to engage the public and build a knowledge-based society. By volunteering at Ithra, community members can develop skills and gain professional experience to help them to succeed in today’s competitive workplaces.

As a cultural institution, Ithra takes an active role in fostering academic research, pioneering technology, and presenting programmes that develop the creative arts. Under the leadership of Director Abdullah Alrashid, it has become known as an incubator for talent in the community, as well as attracting artists from all over the world.

By tackling complex, long-term problems to make a real impact, Ithra plays a crucial role in initiating intellectual and cultural debate.


Ithra Director Who Followed His Passion to Ignite Saudi's Creative Economy

As comfortable in traditional Saudi attire as he is sporting a modern suit, Abdullah Alrashid is a global citizen with a distinct Saudi identity.

[caption id="attachment_26379" align="alignright" width="500"] Director: Abdullah Alrashid[/caption]

Embodying balance and purpose, Abdullah Alrashid strongly identifies with the institution he leads — the King Abdulaziz Centre for World Culture, or Ithra.

Starting out as an electrical engineer, Alrashid felt a strong desire to shift gears and escape the corporate world. He had a passion for social development and the advancement of humanity. He began to explore that dedication as a volunteer and, then in 2012, joined Ithra as a programme curator.

His professional growth within the organisation has been impressive. He rose to senior positions, including head of youth programmes, head of learning, director of programmes, and finally Ithra director — all over a period of 10 years.

“The context changed,” he recalls. “Saudi Arabia was a very different place back then. The aspirations were different, and the world was different. It has taken constant self-reflection, awareness, and adaptability to stay abreast.

“The scale of things has shifted as well. The dangers of this field are that it can — in the name of culture — erase culture. You need to be very locally rooted. You need to have immense pride in your heritage, culture, language, ideals, morals, and values. Because that's what adds to the world.”

Leading alongside people, Abdullah Alrashid is known to be approachable and inclusive. "At Ithra, we thrive on collaborative conversations. Primarily, leadership is having clarity about where you want to go, then putting the necessary resources, processes and structures in place that enable that to happen.”

What excites him? “Potential. I'm extremely excited by the impact that we have and the potential of what we can achieve. The local community is young, receptive, and not very exposed to arts and culture.

“This provides us with a great opportunity. A lot of what's told about this part of the world is expressed from an outside perspective. We can, for the first time, hear Saudi stories from Saudi creatives, and understand their point of view in a global context.”

He is motivated by the impact that Ithra programmes have on people. “I’m inspired when I feel like I'm making a positive difference through my work.”

What about his metrics for success? “There are things that can be measured and things that cannot,” he says. “We can measure how we're moving the needle on the cultural and creative industries in Saudi Arabia through financial, social and visitation metrics.

“On the other hand, it’s impossible to quantify the long-term impact of inspiring a child who visits one of our exhibitions.” He is certain, however, that Ithra serves as an incubator for the Saudi cultural sphere; many of the leaders of the kingdom’s new cultural institutions are Ithra alumni.

And what does the future hold? “It's been several years of growth for me as a leader,” says Abdullah Alrashid. “Hopefully, the next five years will lead to further growth in our reach and impact."