Otaviano Canuto: The Multiple Frontlines of the US-China Technological Rivalry

The United States leads in most fundamental advanced technologies, while China leads in practical implementation. China has reduced its technological reliance on advanced economies, while acquiring key positions in some supply chains. Network installation in countries of the South make them a frontline of technological rivalry between the U.S. and China.

Climb the Ladder to the Top On Your Own

China has so far been one of the successful cases of countries coming from below to upper levels of the income ladder during globalization times (Canuto, 2021). For that to happen, it combined the access to technology made available through globalization with the homework of accumulating local and idiosyncratic technological capabilities (Canuto, 1995). An ascent of local production along value chains was the result.

In turn, when, in 2019, the first Trump administration imposed restrictions on market access and technology for all subsidiaries of the Chinese group Huawei, as well as for the company ZTE, we observed that this would be only the opening salvo of a confrontation destined to endure (Canuto, 2019).

It was as if the US were sending this message to China:

“You have made good use of the opportunities to climb the ladder of technology and income, combining the technological availability provided by globalization with investments in your own capabilities, but you will have to climb the rest of the ladder alone.”

Indeed, since then we have witnessed a Chinese investment effort aimed at reducing dependence on external technological frontiers in various areas. We have addressed  the cases of semiconductors and clean energy, including the refinement of critical minerals and rare earth upstream by China (Canuto, 2023). US export controls on advanced chips and manufacturing tools slowed China down at the technological frontier but did not prevent its progress. In some cases, they accelerated China's effort to develop domestic alternatives.

The possibility of renewed Chinese access to advanced semiconductors, as well as US access to critical minerals and rare earths refined by China, allowed the two countries to holster their trade weapons in October last year (Canuto, 2025)

Technology as the Axis of Rivalry

Technology has become the main stage of strategic competition between the United States and China. Technology is no longer just a driver of productivity and economic growth: it is the "central control panel" that determines military capability, economic influence, data management, and geopolitical influence, even with global supply chains remaining deeply interdependent (Goldman Sachs, 2025).

The technological race between the US and China is now the organizing axis of their broader strategic rivalry, with the US still leading in cutting-edge innovation. However, China is rapidly gaining ground, especially in applied implementation, infrastructure, and control over essential physical inputs such as refined critical minerals and rare earth elements, as well as energy.

What is the Current State of this War?

In an interview for Goldman Sachs (2025), Mark Kennedy highlights four key arenas in this race:

“Technological innovation, practical application of the technology, installation of the digital plumbing or infrastructure underpinning the technology, and technological self-sufficiency.”

While the US remains a leader in most fundamental advanced technologies—such as cutting-edge semiconductors, artificial intelligence (AI) frameworks, cloud computing infrastructure, and quantum computing—China is rapidly closing the gap or leading in other critical dimensions. American companies dominate chip design, key semiconductor manufacturing equipment, and the development of the most advanced AI models. The US also benefits from capital markets that attract resources from the rest of the world and a strong system of research universities capable of attracting global talent (at least until the self-inflicted restrictions on such labor entry in the country since the start of the Trump 2.0 administration).

On the other hand, the US faces some domestic constraints, including shortages of skilled labor for advanced manufacturing, high factory construction costs, fragmented power grids, and regulatory hurdles that slow the implementation of infrastructure projects.

China leads in the practical implementation of technologies, benefiting from scale and coordination. This is seen in the use of robotics in manufacturing on a scale twelve times greater than that of the US (Goldman Sachs, 2025) and in physical applications of AI, such as autonomous vehicles and drones, as well as in large-scale digital infrastructure installations.

Frontlines of the Technological Race (1): Semiconductors and AI

Four main battlefields can be identified in this rivalry. First and foremost, semiconductors and AI. It is always important to remember that there is not a single simple semiconductor supply chain, but rather a network of interconnected chains that extend across the globe (Canuto, 2023). Key bottlenecks include advanced lithography, etching equipment, and cutting-edge manufacturing capacity.

The US and its allies maintain a slight overall advantage, particularly in chip design and manufacturing tools (Figure 1).

[caption id="attachment_28489" align="aligncenter" width="678"] Figure 1. Source: Goldman Sachs (2025)[/caption]

China faces considerable technical challenges in replicating advanced lithography (Garcia-Herrero et al., 2025). It is important to emphasize that leadership in AI will depend not only on access to the most advanced chips, but also on the dissemination and adoption of models. China's adoption of open-source and low-cost AI models has allowed for rapid real-world implementation, even with less advanced hardware and behind-frontier AI systems.

Figure 2 shows how Chinese patent filings in AI, semiconductors, and quantum computing have exhibited high growth, with China emerging as the primary challenger to US technological supremacy. However, while China has acquired significant strengths in specific subfields, it still has to deal with persistent lags in some high-level areas, particularly those targeted by international export controls (Garcia-Herrero et al., 2025). In the case of semiconductors, China's success has been largely confined to the lower value-added parts of the supply chain, such as assembly and packaging (Canuto, 2023).

[caption id="attachment_28490" align="aligncenter" width="873"] Figure 2: Radical Novelties (2019-2023)
Note: Radical novelties defined as breakthrough patents with no prior similar innovations that are subsequently replicated at least five times
Source: Garcia-Herrero et al. (2025)[/caption]

In the case of AI, the edge by US products has been challenged by China’s low-cost “open” models, which are often free to use, modify, and integrate, something helped by government subsidies. Conversely, US tech groups - OpenAI, Google and Anthropic - have instead preserved full control of their most advanced technology, to profit from it through customer subscriptions or enterprise deals (Criddle, 2026).

Frontlines of the Technological Race (2): Applications

As pointed out by Angela Huyue Zhang (2026):

“While debates over the AI race between the United States and China tend to fixate on which country has the most powerful frontier models and the most advanced semiconductors, that framing is becoming outdated. As AI moves from our screens into the physical world, the question is no longer whose models hit technical benchmarks, but who can build and sustain an ecosystem that embeds AI into everyday products and services.”

As remarked by Tej Parikh (2026):

“The technology race encompasses the embodiment of AI into physical environments through sensing, control and decision-making as generating text and images. This includes intelligent manufacturing, humanoid robots and applications in other devices, such as cars, phones and wearables.”

The ecosystem matters, including complementary technologies (like robotics and electric vehicles) and the embodiment of AI.

Take, for instance, robotization of industry. China has become a leader at integrating robots in industry (Figure 3).

[caption id="attachment_28491" align="aligncenter" width="846"] Figure 3: Robots Installed per 10,000 Employees. Source: Parikh (2026)[/caption]

By the same token, one may point out batteries, electric vehicles, and self-driving cars – what Noah Smith (2025) called “the electric tech stack”. Electric vehicles, batteries, drones, robotics, smartphones, AI and related constitute overlapping industries with a mutually reinforcing feedback loop – as in the cases of Chinese firms depicted by Kyle Chan (2025) (Figure 4).

[caption id="attachment_28492" align="aligncenter" width="1189"] Figure 4: China’s overlapping tech-industrial ecosystems. Source: Chen (2025)[/caption]

Frontlines of the Technological Race (3): Clean Energy

The situation with clean-energy technologies appears contrary to that with semiconductors. In clean-energy technologies, China has built a prevalent position (Canuto, 2023).

The transition to clean energy requires both scientific innovation and large-scale expansion of established technologies. The U.S. remains excellent at the former, including scientific work on carbon capture, storage, and removal. The U.S. is also exploring frontiers in geothermal energy, benefiting from hydraulic fracturing expertise in the shale oil and gas industry. On the other hand, in commercial industries that are in the expansion phase, the U.S. lags China in the most critical decarbonization technologies: solar, wind, batteries, and hydrogen. The higher pace of investment in clean energy by China in the last decade has given it an advantage in learning and technology domains.

Chinese dominance is evident in solar energy (Figure 5). The 90% decline in the cost of solar energy generation over the last decade came mainly from there, with Chinese companies being responsible for 75% to 95% of each component of the value chain. Tariffs and import bans have not prevented the situation that, today, U.S. imports of photovoltaic cells come mostly from Chinese manufacturers located in Southeast Asia.

[caption id="attachment_28493" align="aligncenter" width="900"] Figure 5[/caption]

The Chinese are also at the forefront when it comes to electric vehicle batteries, gaining ground even from rival firms in Japan and South Korea that were at the technological forefront. Chinese producers benefited from the explosion in the production of electric cars in China, whose local consumption was subsidized by the government. The results in terms of productivity and competitiveness allowed China to acquire a predominant position in car exports (Canuto and Martins, 2024).

The challenge is more complex in the case of wind energy. China today has the majority of the world’s 10 largest producers of wind turbines, but they mainly serve the domestic market (Figure 5, right side). Turbines, with large towers and blades, require assistance and services at installation sites, and Chinese firms face difficulties abroad in this case (Canuto, 2023).

US President Biden approved in Congress and started to implement the “Inflation Reduction Act” (IRA), which was in fact mired at supporting the country’s position in producing clean energy, but President Trump has unwound the policy. And this is happening at a time in which, due to technological learning, costs of producing renewable energy have fallen enough to compete with fossil fuel-based energy.

Frontlines of the Technological Race (3): Critical Minerals and Rare Earth

Another focal point is the rare earth and critical mineral supply chains. China dominates the mining, refining, and production of magnets, particularly for heavy rare earths used in defense and advanced technologies (Figure 6).

[caption id="attachment_28494" align="aligncenter" width="729"] Figure 6: Critical Minerals Refining and Magnet Production. Source: IES; Goldman Sachs (2025)[/caption]

This gives China significant leverage, even though total US demand for rare earths is relatively small in absolute terms. But it was the vulnerability of the US to the Chinese supply of rare earths that led the former to a compromise with respect to releasing Chinese access to advanced semiconductors, and the trade truce last year (Canuto, 2025).

China’s territory is abundant in mineral resources, many of which are central to the production of clean-tech goods, including 72% of the world’s natural graphite and 66% of rare earth elements (Garcia-Herrero et al, 2023).

However, overall, the extraction of clean-tech minerals is spread across the globe, following the locational dispersion of deposits (Figure 7). Chinese companies have been making acquisitions abroad, purchasing a large part of the cobalt and lithium supply. Minerals are distributed across the globe, but most of the refining is in China. Recent threats by China to restrict exports of gallium and germanium represented an escalation in global competition for critical minerals and metals, i.e. yet another field for ‘proxy wars’.

[caption id="attachment_28495" align="aligncenter" width="814"] Figure 7. Source: Garman, C. (2026).[/caption]

In addition to the domestic extraction of key minerals, China has built up abroad a network of mineral supply agreements to supply its domestic refining industry, including cross-border acquisitions and trade agreements. These are primarily in southern and western Africa, Oceania, Latin America, and regional neighbors. Globally, as illustrated in Figure 6 above, China has a special position in terms of processing of rare earth elements, with a market share above 85%, and of silicon and cobalt, all of which are integral to the production of high-energy-density batteries, wind turbines, and solar panels.

An increase in US resilience will require diversification of sources, selective government support, and cooperation with allies. Even so, rare earth elements will continue to be a persistent vulnerability and a recurring source of geopolitical friction, now and in the near future.

Frontlines of the Technological Race (4): Availability of Energy and Infrastructure

Beyond the three previous battlegrounds, the availability of energy and infrastructure must be highlighted as decisive factors. Advanced AI systems and data centers are extraordinarily energy intensive, and the electricity demand by proliferating data centers will be large. Referring to projections by McKinsey, O’Neill (2026) remarks that: “The new data centers coming online between now and 2030 will need more than 600 terawatt hours of electricity, enough to power nearly 60 million homes.”

The power demand from AI data centers shall quadruple in 10 years (Figure 8). This has not been matched by corresponding building of power plants (Figure 9).

[caption id="attachment_28496" align="aligncenter" width="861"] Figure 8[/caption]

[caption id="attachment_28497" align="aligncenter" width="749"] Figure 9[/caption]

China's abundant and coordinated investment in power generation—especially in renewable and nuclear energy—gives it an advantage. In contrast, US energy constraints and the fragmentation of the US power grid could become a limitation for AI expansion (Figure 10).

[caption id="attachment_28498" align="aligncenter" width="579"] Figure 10: US-China: Electricity Generation Capacity. Source: Parikh (2026).[/caption]

The “New Normal” of Firm-specific Policies

When it comes to government support via “industrial policies”, US and China differ – even if the former has more intensively applied sector- and firm-specific policies and interventions in recent times.

The US approach may be described as “hybrid and fragmented”, combining elements of wartime mobilization and Cold War competition with market-based incentives (Goldman Sachs, 2025). Policies such as President Biden’s CHIPS Act, advanced manufacturing tax credits, government loans or equity stakes, and trade partner investment pledges are designed to encourage domestic production in strategic sectors. At the same time, the US relies heavily on the private sector to lead innovation, with government policy often focused on de-risking investment rather than directing it.

The Trump administration has rolled back Biden’s IRA, while the world is moving towards a decarbonized economy. Trump has also suspended new leases for offshore wind projects and blocked several projects, while offshore wind has large component parts and needs to be built and maintained near installations. On the other hand, the US government has taken stakes in rare earth companies – keep in mind that rare earths and critical minerals matter beyond the provision of inputs to clean-energy production, and includes military and civil uses in industrial sectors.

China’s approach, by contrast, is “holistic and highly coordinated”. Long-term planning through Five-Year Plans, extensive use of government-guided investment funds, subsidized land and energy, talent development, and directed procurement all work together to accelerate progress in priority sectors. This system allows China to mobilize resources quickly and scale production after breakthroughs, though it also tends to generate overcapacity and inefficient investment.

The South as a Ground for Technological Dispute

The technological rivalry between the US and China spills over into other regions, including energy-rich countries of the "New South." China is pursuing an initiative to "digitize countries of the South," offering comprehensive contracts that include infrastructure, services, and data access. This could position it to control networks and data flows across much of the world's landmass and to adapt AI models to these markets.

The Gulf and the Middle East, an energy-rich region, are considered key energy producers in the AI era. Both Washington and Beijing are competing to secure partnerships in data centers and energy in this region, with the US needing security guarantees to prevent sensitive technologies from being shared with China.

Jorge Arbache (2025) has been discussing "powershoring," that is, the possibility of countries like Brazil exploring an industrial relocation strategy driven by the availability of green, secure, and cheap energy, aiming to attract investments from energy-intensive sectors, reduce emissions, and strengthen integration into sustainable global supply chains. It is hoped that the potential for energy production will not be captured solely as a chapter in the US-China rivalry in providing data centers for their AIs.

Final Remark

To conclude, let’s highlight the duality of paths. While the US resorts to high investment, top semiconductors and its proprietary ecosystem, China has strived to integrate good-enough models into physical applications, looking for simultaneously disseminating them around the world.

References

Arbache, J. (2025). Powershoring: a Game-Changer for Climate Action and Sustainable Industry, Green Initiative, February 4.

Canuto, O. (1995). “Competition and Endogenous Technological Change: an Evolutionary Model”, Revista Brasileira de Economia, v. 49 n. 1, p. (1995)

Canuto, O. (2019). The US-China Trade War Is Accelerating China’s Rebalancing. Policy Center for the New South, November 8.

Canuto, O. (2021). Climbing a High Ladder: Development in the Global Economy. Policy Center for the New South.

Canuto, O. (2023). A Tale of Two Technology Wars: Semiconductors and Clean Energy, Policy Center for the New South PB - 41/23, November 2.

Canuto, O. and Martins, A.J. (2024). The Automotive Transition on the Road to Decarbonization, Policy Center for the New South PB - 51/24, October 9.

Canuto, O. (2025). The United States and China holstered their weapons, Center for Macroeconomics and Development, November 1.

Chen, K. (2025). China's Overlapping Tech-Industrial Ecosystems, High Capacity, January 22.

Criddle, C. (2026). Microsoft Warns that China is Winning AI Race Outside the West, Financial Times, January 13.

García-Herrero, A.; Grabbe, H.; and Källenius, A. (2023). De-risking and Decarbonising: a Green Tech Partnership to Reduce Reliance on China, Bruegel, October 26.

García-Herrero, A., M. Krystyanczuk and R. Schindowski. (2025). Radical Movelties in Critical Technologies and Spillovers: How do China, the US and the EU Fare?. Working Paper 07/2025, Bruegel.

Garman, C. (2026). Brazil has Increasingly Valuable Assets in a World of Great Power Conflict, Eurasia Group, January 26.

Goldman Sachs (2025). Top of Mind: The US-China Tech Race, issue 144, December 4.

O’Neill, S. (2026). The AI Bubble Is Getting Closer to Popping, Bloomberg, January 28.

Parikh, T. (2026). China Will Clinch the AI Race, Financial Times, January 18.

Smith, N. (2025). Why every country needs to master the Electric Tech Stack, Noahopinion, September 23.

Zhang, A. H. (2026). Overcapacity is China’s Biggest AI Advantage, Project Syndicate, January 7.

 About the Author

Otaviano Canuto, based in Washington, D.C, is a former vice president and executive director at the World Bank, a former executive director at the International Monetary Fund, and a former vice president at the Inter-American Development Bank. He is also a former deputy minister for international affairs at Brazil’s Ministry of Finance and a former professor of economics at the University of São Paulo and the University of Campinas, Brazil. Currently, he is a senior fellow at the Policy Center for the New South, a professorial lecturer of international affairs at the Elliott School of International Affairs - George Washington University, a nonresident senior fellow at Brookings Institution, a professor affiliate at UM6P, and principal at Center for Macroeconomics and Development.


XM: Trusted Execution and Human Care in Volatile Markets

When markets come under pressure from geopolitical shocks, policy surprises or abrupt liquidity shifts, two capabilities determine whether investors remain resilient: robust execution and informed human judgment. XM’s nominations for Best Gold Broker and Best Customer Service underscore that dual responsibility. A broker is not merely an access point to price feeds, but an operational steward whose systems and people help sustain confidence across the trading ecosystem.

A Legacy of Consistency

For more than 15 years, XM has focused on delivering a stable and efficient trading environment. Its operational model centres on high-speed execution and a policy of no rejections and no re-quotes. With over 11.7 billion trades executed and more than 15 million clients served globally, XM positions execution reliability and consistency as the foundation of client trust. In volatile conditions, the ability to open and close positions without restriction is not simply a feature; it is a structural safeguard.

Flexibility to Support Strategy

XM supplements its core trading infrastructure with year-round promotional incentives, including deposit and no-deposit bonuses (subject to jurisdictional limitations). With over $5.6 billion reportedly awarded, these initiatives aim to provide traders with additional flexibility in managing exposure and navigating reversals. While incentives alone do not determine outcomes, capital flexibility can play a role in supporting disciplined strategy execution.

People at the Core

Technology is central to modern trading, but it is not sufficient on its own. When markets move rapidly, traders often require clarification, explanation and reassurance. XM’s multilingual customer support infrastructure is designed to provide timely and accurate assistance, reinforcing the principle that service quality is integral to market integrity. In private brokerage, responsiveness is not merely a service metric; it is a confidence metric.

Education as Market Stewardship

Access to instruments without understanding creates asymmetry. XM addresses this through structured education, including webinars, seminars and transparent communication regarding leverage and risk. Well-informed participants contribute to more sustainable trading environments, aligning individual objectives with prudent risk management.

Compliance as Operational Discipline

Multi-jurisdictional compliance remains central to client protection. XM treats regulatory engagement not as a cost centre, but as an operational discipline underpinning trust. Through transparent reporting, adherence to local frameworks and structured safeguards, the firm operates within regulated environments designed to protect client interests.

Integrity as Competitive Differentiation

In a competitive brokerage landscape, speed and cost efficiency are expected. Differentiation increasingly rests on demonstrable reliability, fairness and sustained client outcomes. A market structure that rewards these qualities strengthens trust across regulators, institutions and retail participants alike.

Positioned for the Next Cycle

Despite earning more than 60 global awards, XM’s strategic emphasis remains on consistency rather than recognition. Continued investment in infrastructure, personnel and education reflects an acknowledgement that volatility cycles are inevitable. Combining technical precision with human support remains the operational imperative in preserving accessibility and fairness in global markets.

Disclaimer: Promotions and bonuses are not available for accounts registered under XM’s EU-based entity. The XM Group operates globally under various entities; products, services and features may vary by jurisdiction. Please refer to the XM website for further details.

Risk Warning: Trading services involve significant risk and may result in the loss of invested capital. Terms and conditions apply.


EastWest Banking Corporation: Connecting Further in Philippine Consumer Finance

EastWest Banking Corporation has built its position in the Philippine market through a consumer-led strategy, broad physical reach, expanding digital platforms, and the institutional strength of the Filinvest Group. With net income rising to Php9.2bn in 2025 and dividends of Php1.8bn declared in 2026, the bank is reinforcing its role as a steady financial partner for consumers, affluent clients, SMEs, and growth-driven businesses.

East West Banking Corporation, known by its brand name EastWest, has spent three decades building one of the Philippines’ most distinctive universal banking franchises. Established in 1994, the bank has grown from its first store on Senator Gil Puyat Avenue in Makati City into a nationwide institution serving consumers, middle-market corporates, the mass affluent, and small businesses through a broad suite of financial products and services.

Its offering spans peso and foreign currency deposits, consumer and corporate loans, credit cards, payment solutions, bancassurance, non-life insurance brokerage, leasing, and digital banking. The institution’s recent trajectory reflects a clear strategic focus: consumer-led growth, supported by improving digital capability and the backing of a diversified parent group.

EastWest is the universal banking arm of Filinvest Development Corporation, one of the Philippines’ leading conglomerates, with interests across real estate, hospitality, tourism, power generation, infrastructure, sugar, and banking. That connection gives EastWest more than balance-sheet support. It anchors the bank within a broader ecosystem built around long-term Filipino household and enterprise development.

A Young Bank with a Strong Consumer Core

EastWest describes itself as a young bank with a rich history. Its growth has been shaped by a strong consumer base and a proposition that blends “Eastern warmth and prudence” with “Western efficiency and innovation”. The formulation captures a practical business model: personal service, disciplined expansion, and relevant products for customers at different stages of financial life.

That model has translated into a strong position in consumer finance. As of end-2024, EastWest was the ninth-largest privately held domestic bank by assets and the 11th largest universal or commercial bank in the Philippines by asset size. It ranked fifth in total consumer loan portfolio among peer banks as of end-2023, with 82 percent of its loan base serving the consumer market, the highest proportion among its peers. The bank is also among the country’s leading providers of auto loans, salary loans, personal finance, and credit cards.

This consumer orientation matters in a market where household finance, mobility, savings, and small enterprise activity remain central to growth. EastWest’s product range is deliberately organised around customer realities rather than abstract banking categories. Young professionals are supported through mobile banking, credit cards, personal loans, savings products, and round-the-clock chatbot assistance. Family savers are served through joint accounts, home loans, auto loans, foreign currency accounts, and protection products. Upwardly mobile clients gain access to premium cards, salary loans, investment options, and foreign exchange solutions. SME owners and side-hustlers can use EasyBiz, business loans, fleet financing, corporate accounts, and hedging tools. Priority clients are supported through EastWest Priority Banking, wealth management access, advisory services, and premium deposit products.

Performance with Momentum

EastWest’s 2024 performance marked an important milestone, with the bank delivering its highest earnings to date at that point. Net income reached Php7.6bn, up 25 percent, while total loans and receivables stood at Php336.4bn, rising 15 percent. Total assets reached Php524.7bn, up 10 percent, and checking and savings accounts reached Php312.2bn, increasing seven percent.

The momentum continued in 2025. EastWest posted net income of Php9.2bn, a 21 percent year-on-year increase, supported by a well-positioned balance sheet and a loan portfolio oriented towards higher-yielding consumer assets. Total assets grew by 10 percent, while CASA deposits rose by 14 percent, supporting a CASA ratio of 82 percent. Net interest income increased 21 percent to Php40.6bn, return on equity reached 11.9 percent, and the cost-to-income ratio improved to 49.7 percent as revenue growth outpaced cost expansion.

The bank’s board also declared a Php1.8bn cash dividend, equivalent to Php0.82 per share, payable to shareholders on record as of 11 May 2026. The dividend, announced during the Annual Stockholders’ Meeting on 23 April 2026, reflects the bank’s ability to return capital to shareholders while sustaining investment in growth, technology, and customer service.

Chief Executive Officer Jerry G. Ngo framed the performance in terms of steadiness as well as profitability. In an uncertain environment for families and businesses, he said, a bank’s role is “not only to perform, but to remain steady, prepared, and responsive”. The statement captures EastWest’s broader positioning: growth anchored in discipline rather than expansion for its own sake.

Digital Reach, Human Relevance

EastWest’s strategy is not limited to traditional branch banking. Its digital ecosystem has expanded through EasyWay, EasyBiz, EastWest Pay, Komo, and ESTA, the EastWest System Tech Assistant. EasyWay provides everyday mobile banking for transfers, bills payments, and balance checks. EasyBiz supports SMEs and corporates with payroll, supplier payments, and business transactions. EastWest Pay enables secure credit and debit card payments across online and in-store channels. Komo offers a fully digital savings account, while ESTA provides 24/7 AI-powered account support, card servicing, and banking assistance.

The bank’s 2024 data already showed meaningful adoption. EasyWay registered 255,346 users, while 76.5 percent of EastWest Online users migrated to EastWest Online and EasyWay. Registered cards in ESTA increased by 33 percent, and 97 percent of EastWest cardholders enrolled in electronic statements of account. Cash management service enrolments rose 31 percent, reflecting stronger engagement from business clients.

In 2025, EastWest advanced this digital agenda further with the launch of EW Pay with Google Pay integration, making it the first bank in the Philippines to offer NFC tap-to-pay without requiring an e-wallet. The bank also expanded ecosystem partnerships with Unioil, foodpanda, Puregold, and Autodeal, embedding its payment and credit capabilities into everyday customer touchpoints.

The broader direction is clear. EastWest is attempting to combine the reassurance of a nationwide banking network with the convenience of digital access. That hybrid model is particularly relevant in a market where customer segments range from digital-first young professionals to affluent clients seeking personal advice and businesses requiring reliable transaction platforms.

Scale, Affluence, and Customer Proximity

Scale remains an important part of the proposition. As of December 2024, EastWest operated 488 stores, including rural bank branches, and 495 ATMs. Its physical network is distributed across Metro Manila, Luzon, Visayas, and Mindanao, allowing the bank to retain a meaningful on-the-ground presence even as digital adoption accelerates.

The Priority Banking business has also gained momentum. By 2025, Assets Under Management had grown 40 percent to more than Php100bn, supported by 13 Priority Centres across the country. This expansion reflects a broader opportunity in the Philippine market, where rising affluence is creating demand for more sophisticated advisory, wealth, and relationship-led banking services.

EastWest’s corporate structure supports this multi-segment strategy. Filinvest Development Corporation owns 80 percent of the bank, with the public and other shareholders owning 20 percent. EastWest Insurance Brokerage, incorporated in 2015, is wholly owned by the bank and serves as its non-life insurance brokerage arm. EastWest Rural Bank supports consumer-focused lending, particularly to public school teachers and underserved communities. EastWest Ageas, a 50 percent joint venture with Ageas Insurance International, provides life insurance and bancassurance capabilities.

This structure allows the bank to serve customers across banking, insurance, rural finance, and wealth protection, reinforcing its aim to offer integrated solutions across life stages.

Recognition Across Core Segments

EastWest’s awards in 2024 and 2025 underline the breadth of its franchise. The bank received recognition across priority banking, private banking, wealth management, digital experience, credit cards, consumer loans, foreign exchange, governance, human resources, and operations. Honours included Best Private Bank awards from several institutions, Best Priority Banking Experience, Best Credit Card for Cashback, Mobile Banking and Payment Initiative of the Year in the Philippines, Outstanding Digital Customer Experience in Banking App or Platform, and Great Place to Work certification.

These distinctions are not a substitute for execution, but they point to a bank competing across several fronts at once: consumer lending, digital service, affluent banking, and organisational development.

Connecting Further

EastWest’s strategic priorities are now centred on rebalancing the portfolio towards more secured asset classes, deepening operational efficiency through responsible use of technology, sustaining digital platform investments, and continuing to build the capabilities of its people.

Its 30th anniversary year was more than a symbolic milestone. It marked a period of record performance, digital expansion, and renewed clarity around the bank’s consumer-focused identity. The subsequent 2025 results and 2026 dividend declaration suggest that momentum has continued.

For the Philippine banking sector, EastWest represents a distinctive model: a relatively young universal bank with a strong consumer finance orientation, a broad physical footprint, a growing digital ecosystem, and the backing of a diversified domestic conglomerate. Its next phase will depend on maintaining that balance: scale without losing relevance, digitalisation without sacrificing service, and growth without compromising prudence.

In a market where financial needs are increasingly shaped by mobility, family aspiration, entrepreneurship, and digital convenience, EastWest’s proposition is clear. It aims to make banking simpler, faster, and more connected to real life.


EastWest’s Next Chapter: Discipline, Digital Scale, and the Consumer Finance Advantage

EastWest President Jacqueline S Fernandez outlines a strategy built around disciplined consumer growth, phygital banking, stronger risk controls, and a culture of ownership. With net income rising 21 percent to Php9.2bn in 2025, the bank is positioning resilience, customer engagement, and digital capability as the foundations of its next phase.

[caption id="attachment_28511" align="aligncenter" width="2000"] President: Jacqueline S Fernandez[/caption]

For EastWest, growth in 2026 is not a question of expansion alone. It is a question of execution. In an operating environment shaped by geopolitical uncertainty, inflationary pressure, supply chain disruption, and shifting interest rates, the bank’s leadership is focused on building a franchise that can grow without weakening its foundations.

Jacqueline S Fernandez, President of EastWest, frames the challenge plainly. The response to uncertainty, she argues, is not to slow down, but to execute with greater discipline. That means staying close to customers, protecting asset quality, strengthening operational resilience, and ensuring that growth remains sustainable. Fernandez has served as EastWest President since July 2022, following a long career at the bank and prior leadership of its lending business.

Her priorities for the next 12 to 18 months centre on disciplined consumer finance growth, improved customer journeys, and deeper digital capability.

EastWest enters this phase with momentum. In 2025, net income rose 21 percent to Php9.2bn. The loan portfolio expanded 13 percent year-on-year, with credit card receivables up 40 percent and personal and salary loans rising 15 percent. These figures reinforce the bank’s established strength in consumer finance, but Fernandez is careful to define success beyond profit alone. For her, the quality of growth matters: credit outcomes, customer engagement, turnaround times, digital adoption, operating efficiency, and people capability are all central measures of performance.

Consumer finance is a natural growth engine for EastWest, but it is also a discipline business. In a period of higher living costs and evolving rate conditions, the bank is applying closer scrutiny to payment behaviour, utilisation patterns, delinquency flows, roll rates, restructuring requests, vintage performance, and collection trends. Small changes in customer behaviour can provide early warnings before stress appears in headline figures.

Analytics plays an increasingly important role in this process. Machine learning models and robotic process automation support credit evaluation, exception monitoring, and workflow management, reducing manual complexity while improving consistency. Yet EastWest’s position is not that technology replaces judgment. Rather, it enhances the judgment of experienced credit teams. Resilience, in this view, is built before stress becomes visible.

The bank’s digital strategy reflects a similar balance between capability and accountability. For EastWest, “digital-first” does not mean digital-only. It means designing the right journey for the right customer. Komo serves mass-market digital banking needs, particularly through East West Rural Bank. EasyWay supports customers with more sophisticated banking requirements, including credit cards, loans, foreign currency accounts, and wealth management. EasyBiz digitises business banking and cash management activities, while ESTA, the bank’s AI-powered assistant, supports product applications, card controls, inquiries, and service requests. EastWest Pay extends the ecosystem through NFC tap-to-pay convenience via mobile phone.

The adoption metrics are significant. In 2025, digital penetration grew from 46 percent in January to 51 percent by year-end. EasyWay registered users increased from 604,000 to 921,000, while monthly active usage across Komo and EasyWay remained at 73 percent. Customer ratings remained strong, with 4.8 on Google Play and 4.9 on the App Store. The numbers suggest that customers are not merely enrolling in digital channels, but using them regularly.

Komo occupies a particularly important role within the group. As a digital banking product of East West Rural Bank, it acts as a mass-market channel, an acquisition and engagement platform, and a testing ground for simpler digital journeys. In 2025, more than 143,000 EWRB savings accounts were linked to Komo, giving customers digital access to accounts that previously required branch or ATM-based transactions. The platform also received 9,000 Teachers’ Salary Loan applications, with more than Php296m in approved loan amounts. This illustrates how digital banking can support inclusion while expanding the group’s addressable market.

Partnerships are another pillar of the strategy. EastWest’s rule is to build where trust, risk, data, and customer ownership are core to banking, and to partner where others can extend reach and convenience. In 2025, API success rates improved from 95 percent to the 99 percent range, while API uptime reached 99.1 percent. Komo uptime reached 99.95 percent, and EasyWay reached 99.58 percent. Standardised APIs, gateway governance, and security controls allow the bank to integrate more quickly without diluting standards.

Cybersecurity and fraud prevention have become essential to that trust equation. As more customers move to digital channels, risks increasingly involve the customer journey itself: phishing, social engineering, account takeover, mule accounts, and fraudulent use of digital access. EastWest’s approach is to layer controls intelligently while avoiding unnecessary friction. In 2025, it introduced device binding, dual OTP registration, enhanced account recovery authentication, EasyLock, and EasyVault. Its Komo mule detection model, launched in August 2025, achieved 85.19 percent detection accuracy with a 0.34 percent false positive rate, blocking around 2,130 high-risk attempts and preventing an estimated Php3.1m in losses.

Funding discipline remains equally important. CASA deposits grew 14 percent year-on-year in 2025, with the CASA ratio holding at 82 percent. Fernandez sees this as evidence of customer trust rather than pricing alone. While pricing discipline and product innovation matter, the foundation is relationship banking. Many EastWest customers begin with a practical need, such as a credit card, personal loan, salary loan, or digital account. The opportunity is to deepen that relationship across life stages, turning single-product customers into long-term financial partners.

Capital allocation follows the same logic. Investment is directed towards areas that strengthen the franchise, improve customer value, and support sustainable returns. Technology, analytics, cybersecurity, consumer finance, risk management, and people capability are central priorities. Branches are not being treated as obsolete, but as evolving advisory and relationship platforms better integrated with digital channels. Shareholder returns remain important, but must be balanced against reinvestment for growth across cycles.

The cultural thread running through these priorities is ownership. Fernandez describes ownership as the link between speed, accountability, customer focus, and innovation. In 2025, EastWest delivered more than 2,700 learning sessions, achieved a 99.8 percent employee participation rate, and logged more than 340,000 learning hours, equivalent to around 50 hours per employee. Training covered store operations, UITF certification, fraud awareness, Agile, data science, Python, robotic process automation, and AI for senior executives.

This investment in people is reinforced by leadership development and performance management, connecting bank-wide priorities to individual accountability. External recognition in 2025, including Great Place to Work Certification and awards for HR innovation, reflects progress in building a stronger organisational foundation.

EastWest’s next chapter is therefore not defined by a single initiative. It is defined by the integration of consumer finance strength, digital scale, disciplined risk management, partnership capability, cybersecurity, and culture. In a market where uncertainty is likely to persist, the bank’s strategy is to grow through discipline rather than momentum alone.

For Fernandez, the foundation is clear: a capable, accountable workforce; a customer-centred operating model; and technology that strengthens, rather than substitutes for, sound banking judgment. That combination is what EastWest believes will allow it to keep growing while remaining steady, prepared, and responsive.


Italy: Europe’s Overlooked Fintech Opportunity?

[caption id="attachment_28519" align="alignright" width="300"] Author: Alessandro Hatami[/caption]

European fintech is entering a more selective phase. After several years in which capital flowed towards the most visible hubs and fastest-growing companies, investors are now asking a different set of questions. Where is there still room for meaningful growth? And where has the fintech opportunity been overlooked because the narrative has been shaped too narrowly?

Italy rarely sits at the centre of that conversation. For much of my career in fintech, I have focused on markets such as the UK, Germany and France. These ecosystems dominate European fintech debate, because they combine strong capital flows, high startup density and international visibility. Italy, by contrast, sat outside that core narrative, despite being my home market. A closer look suggests that may now be an oversight.

Italy is the Eurozone’s third-largest economy, with around 60 million people, a strong industrial base and a digitally active consumer market. Yet it continues to attract significantly less fintech investment than smaller European economies such as Spain or the Netherlands. That gap between economic weight and fintech capital is becoming increasingly difficult to ignore.

To understand Italy’s position in European fintech, it is useful to separate what is already working from what has held the ecosystem back.

1. Demand is already established

Italy is not starting from zero on digital adoption. In many areas, that shift has already happened.

Across the country, particularly in major urban centres, consumers have embraced digital payments and mobile-first financial services. Contactless payments are now part of everyday life, cash usage has declined, and businesses are steadily digitising across an economy that spans manufacturing, services, tourism and global exports.

User behaviour is a hard barrier for fintech companies to overcome. In Italy, much of that groundwork is already in place. The demand side of the equation is not the primary constraint.

Italy’s opportunity is also anchored in the real economy. Northern Italy, particularly the corridor between Turin, Milan and Venice, is one of Europe’s most affluent and industrially developed regions. This gives fintech companies real opportunities to address, from SME lending and payments to cashflow management, embedded finance and digital wealth.

Italy already has many of the conditions associated with fintech growth: digital adoption, economic scale, consumer readiness and a large base of businesses that need better financial services. What it has lacked is the capital intensity and company-building depth seen in Europe’s more established hubs.

2. Foundations are forming, but scale remains limited

Milan is at the centre of Italy’s fintech development. Its Fintech District now includes more than 300 companies, and the wider ecosystem has produced important players such as Satispay, Scalapay and Nexi. There are also signs of greater collaboration between financial institutions, technology providers and fintech firms as banks modernise their platforms and customers expect better digital services.

Progress is not limited to Milan. Rome, Turin, Bologna and Naples have also developed smaller fintech clusters, giving the ecosystem a broader national base than the Milan story alone suggests.

The foundations are clearly there. But compared with more mature fintech markets, Italy still lacks depth and intensity. It has produced notable success stories, but not yet at the volume or scale seen in the UK or France. Large funding rounds remain relatively limited, and some high-potential businesses still look abroad for capital, talent and expansion.

Italy therefore sits in an unusual place: too developed to be dismissed as early stage, but not yet a mature fintech hub. It is large, digitally ready and still comparatively underpenetrated.

3. So why has Italy been overlooked?

The explanation lies less in demand than in structure. Italy’s banking sector continues to play a significant role in shaping capital flows. Large incumbent institutions control substantial resources and remain central to how financial innovation is funded, partnered and deployed. Banks can be both partners and competitors to fintech firms. In practice, this can create caution, particularly where new entrants challenge core business lines.

Capital is available, but it does not always flow towards more disruptive fintech models. In some cases, innovation is absorbed into existing structures rather than being allowed to develop into standalone platforms.

Perception is also key. International investors have often viewed Italy as complex, fragmented or harder to navigate than other European markets which has contributed to a persistent under-allocation of capital.

The result is a market where innovation exists, demand is proven and the opportunity is real, but the mechanisms for scaling remain constrained.

4. Why Italy matters in the current cycle

This matters because the wider European fintech market has changed. Investment declined sharply in 2025 as macroeconomic uncertainty reshaped capital flows. Investors have become more selective, with greater emphasis on sustainable growth, clearer revenue models and markets where competition is not already saturated. That shift could make Italy more attractive.

The UK, France and Germany have strong ecosystems, but many categories are crowded. Customer acquisition is expensive, valuations have been tested, and the most obvious opportunities have already attracted significant funding.

Italy offers a different profile. It is a major European economy with established demand, but comparatively fewer entrenched fintech challengers. Payments, lending, wealth management, embedded finance and SME financial services all remain less fully developed than in more crowded European markets.

None of this means Italy is about to become the next UK fintech market overnight. The structural barriers are real, and the ecosystem still needs more capital, talent density and visible scale outcomes. But it does suggest that Italy may be undervalued relative to its fundamentals.

5. What could trigger a breakout?

For Italy to realise more of its fintech potential, several things need to happen.

The first is more visible scale. Companies such as Satispay and Scalapay have helped prove that Italian fintech can move beyond early-stage promise. More businesses need to grow, remain anchored in Italy and achieve meaningful exits, listings or international expansion. Markets tend to attract more capital once investors can point to clear precedents.

The second is a more open relationship between fintechs and incumbent banks. Banks will remain central to the Italian financial system, but that does not have to limit fintech growth. As institutions modernise, face regulatory pressure and invest in platform strategies, there is scope for fintechs to scale alongside incumbents rather than simply being absorbed by them.

Third, greater European integration will also help. While Italy is already integrated into Europe’s regulatory and payments framework, further alignment of capital markets and cross-border infrastructure should make it easier for Italian fintechs to access broader markets and capital pools. That reduces some of the friction that has historically limited growth.

The fourth is visibility. Italy's fintech sector has made real progress but remains underrepresented in the European narrative, and that is starting to change as the ecosystem becomes more coordinated. Organisations such as ItaliaFintech, which represents many of the country's leading fintech companies, have helped create dialogue with policymakers, regulators and financial institutions. Public institutions are contributing too: Banca d'Italia has established the Milano Hub to foster collaboration between fintechs, academia and incumbents. Alongside ecosystem builders such as Fintech District, innovation platforms such as Fabrick, and industry bodies including ABI Lab, these initiatives are creating a more connected environment for startups, incumbents, investors and regulators to work together.

Flagship events are reinforcing this. Salone dei Pagamenti, organised by the Italian Banking Association (ABI), has become one of Europe's most important forums for payments innovation. Broader technology events such as Italian Tech Week (WAVE) are also exposing Italian fintech companies to international investors and partners.

If Italy can combine stronger scale-up success stories with this more connected ecosystem and greater international visibility, the ingredients for a genuine fintech breakout will be in place.

Final thought: A market that deserves a second look

Italy’s fintech opportunity is not defined by a lack of demand, talent or economic potential. It’s more  a lag in recognition.

The country has scale, digital adoption, industrial strength, consumer readiness and emerging innovation clusters. What has been missing is the alignment of capital, perception and structure required to unlock that potential fully.

That alignment may now be starting to shift. As investors move away from overfunded and overcrowded markets, Italy warrants more serious attention.

Italy is not the most obvious fintech story in Europe. But it is one of the clearest examples of how the next phase of European fintech may be shaped as much by overlooked markets as by established hubs.

By Alessandro Hatami Managing partner of strategic consultancy Pacemakers


XMTrading: Setting the Benchmark for Transparency, Trust, and Client-Centric Excellence

In an increasingly dynamic financial landscape, traders seek more than access to markets. They require clarity, reliability, and responsive support. As global trading conditions evolve, the role of a broker now extends well beyond execution. It demands a commitment to providing clients with a seamless, transparent, and dependable trading environment.

XMTrading continues to distinguish itself through that commitment, recently recognised by CFI.co with three awards: Outstanding Forex Broker Asia 2026, Most Transparent Broker Global 2026, and Best Customer Support Global 2026.

Transparency at the Core

Transparency remains central to XMTrading’s operating philosophy. In an industry where clarity can materially affect decision-making, the company prioritises open communication, fair trading conditions, and straightforward pricing.

Clients benefit from an environment in which execution standards and costs are clearly defined, allowing them to trade with confidence and focus on strategy. This emphasis on clarity extends across the client journey, from registration to trade execution, reinforcing XMTrading’s reputation as a broker that places integrity at the centre of its service proposition.

A Client-First Approach to Support

Exceptional customer support is no longer a differentiator; it is an expectation. XMTrading has strengthened this standard through a responsive, multilingual support framework designed to meet the needs of a diverse global client base.

The Best Customer Support Global 2026 award reflects the company’s focus on accessibility, efficiency, and personalised assistance. Whether responding to technical queries or guiding clients through the trading process, XMTrading’s Customer Experience team is positioned to provide timely and practical support, helping to build trust and confidence.

Delivering Excellence Across Asia and Beyond

Asia remains one of the most active and fast-growing regions in the global trading ecosystem. XMTrading’s recognition as Outstanding Forex Broker Asia 2026 highlights its strong regional presence and its ability to adapt to the needs of traders across diverse markets.

By combining local market understanding with global operating standards, XMTrading delivers a tailored experience for both new and experienced traders. Clients benefit from relevant tools, competitive trading conditions, and a user experience aligned with regional expectations, while retaining the consistency associated with an international brand.

Performance That Inspires Confidence

At the heart of XMTrading’s proposition is a robust technological infrastructure designed to support efficient and reliable trade execution. Speed, stability, and precision are critical in modern markets, and XMTrading continues to invest in systems that support performance across market conditions.
This focus on technological resilience strengthens execution quality and enhances the overall trading experience, enabling clients to act decisively in real time.

A Vision for Sustainable Growth

As the trading industry continues to evolve, XMTrading remains focused on sustainable growth shaped by innovation, clarity, and client satisfaction. Its recognition by CFI.co is not only a marker of achievement, but also a benchmark for the company’s ongoing mission: to deliver consistent value while adapting to the changing needs of modern traders across an increasingly complex market.


Asian Development Bank: Why the Rule of Law Matters for Private Sector Growth in Asia and the Pacific

Modern commercial laws, effective dispute resolution, and consistent cross-border rules enable businesses to expand, integrate into global markets, and invest with confidence.

Across Asia and the Pacific, developing economies are increasingly turning to the private sector to drive job creation, innovation, and the transition towards greener and more resilient growth. Yet private sector-led development depends fundamentally on the presence of a clear, predictable, and enforceable rule-of-law environment.

[caption id="attachment_28527" align="aligncenter" width="900"] Author: Thomas Michael Clark[/caption]

Global evidence consistently shows that countries with stronger rule-of-law frameworks attract higher levels of investment, command lower risk premiums, and achieve more stable long-term growth. Investors closely monitor rule-of-law indicators when allocating capital, while credit rating agencies incorporate these factors directly into their assessments—ultimately influencing the cost of borrowing.

For developing economies in the region, strengthening the rule of law is no longer a “governance extra”; it is a core economic strategy. Both foreign and domestic investors are significantly more likely to enter new markets, expand operations, and integrate into global value chains when they are confident that contracts will be honoured, property rights protected, and disputes resolved impartially and efficiently.

However, in many countries, uncertainty persists. Challenges range from weak contract enforcement and underdeveloped secured lending and collateral frameworks to insolvency and restructuring regimes that lag behind the needs of modern economies. Legal systems often fail to adequately support micro, small, and medium-sized enterprises (MSMEs), which form the backbone of national economies.

MSMEs account for over 95 percent of all businesses in Asia and the Pacific, employ around 60 percent of the workforce, and generate approximately 40 percent of economic output. Despite their importance, many struggle to formalise operations, access finance, and participate in regional and global markets.

[caption id="attachment_28528" align="alignright" width="300"] Author: Christina Pak[/caption]

Modern legal frameworks can play a transformative role. Company laws should make it faster, simpler, and more cost-effective for small businesses to register and operate. Secured transactions frameworks must evolve beyond reliance on land, enabling movable assets—such as equipment, inventory, and receivables—to be used as collateral. This shift can unlock new financing opportunities for thousands of enterprises.

Insolvency regimes should be streamlined, affordable, and capable of restructuring viable businesses, with cross-border provisions that reflect increasingly interconnected markets. At the same time, the estimated $1 trillion lost annually to unresolved low-value commercial disputes highlights the need to expand online dispute resolution mechanisms, offering businesses faster and more affordable pathways to resolve conflicts and continue growing.

Strengthening the rule of law is therefore not an abstract goal—it is a practical necessity for economic development.

Mobilising private capital is also critical to closing the substantial financing gap for low-carbon and environmentally sustainable development. Beyond foundational commercial laws, countries require modern legal frameworks to participate effectively in emerging environmental markets, particularly carbon markets.

Many economies in Asia and the Pacific still lack clear rules governing carbon-crediting projects, including standards for social and environmental safeguards, as well as robust monitoring and enforcement mechanisms. In numerous jurisdictions, carbon rights and the legal status of verified carbon credits remain undefined. Without clarity, investors face uncertainty, and the development of high-integrity carbon markets is constrained.

To attract private finance for conservation and the sustainable management of natural resources, legal systems must support innovative financing mechanisms such as green banks, forest funds, payments for ecosystem services, and biodiversity credits. Natural capital accounting and nature-related risk disclosures are equally important, helping to guide investment decisions and strengthen transparency for financial institutions and investors.

Effective dispute resolution is another cornerstone of a strong private sector. Businesses are more willing to invest and expand when they trust that disputes will be resolved fairly, efficiently, and at reasonable cost—and that outcomes will be enforceable.

Across the region, alternative dispute resolution—mechanisms that allow disputes to be settled outside traditional court systems—has become increasingly important. These approaches reduce pressure on overburdened courts while providing specialised commercial expertise. International arbitration continues to grow, although many countries still need stronger legislative frameworks aligned with global standards, alongside enhanced judicial capacity to enforce foreign arbitral awards. With the Singapore Convention on Mediation now in force, there is also a clear opportunity to expand the use of international mediation.

As countries adopt and refine dispute resolution frameworks, avoiding legal fragmentation is essential. Consistent implementation of policies and standards strengthens predictability in cross-border transactions, deepens regional integration, and enhances investor confidence—particularly in an increasingly uncertain global environment.

Strong rule-of-law systems are fundamental to private sector-driven development. They reduce risk, build trust, and improve the overall investment climate. For economies across Asia and the Pacific seeking to attract private investment and support long-term growth, strengthening fair and reliable legal systems offers substantial and measurable returns.

ADB’s Law and Policy Reform Programme supports countries in building the legal foundations required for private sector-led growth. The programme facilitates policy dialogue, legal diagnostics, legislative drafting, and capacity building for policymakers, judges, legal professionals, and the private sector. i

About the Authors

Thomas Michael Clark is General Counsel at ADB.

Christina Pak is Assistant General Counsel, Law and Policy Reform, Office of the General Counsel at ADB.

The views expressed are those of the authors and do not necessarily reflect the views of the Asian Development Bank, its management, Board of Directors, or member countries.


Paracelsus Recovery: The Rise of Ultra-Private Mental Healthcare

In an era of heightened scrutiny and reputational volatility, demand is growing for discreet, highly personalised mental health support among ultra-high-net-worth individuals. Facilities such as Paracelsus Recovery in Zurich have emerged at the forefront of this niche, offering a level of privacy and individualised care that traditional institutions cannot match.

Recent developments in the United States, including the unsealing of high-profile legal documents in early 2026, have intensified public attention on the psychological impact of reputational exposure. For individuals operating in the global spotlight, the intersection of public scrutiny and private vulnerability has created a distinct category of mental health need, one defined as much by confidentiality as by clinical care.

A Model Built on Absolute Discretion

Located on the shores of Lake Zurich, with the Swiss Alps providing both physical and symbolic distance from public life, Paracelsus Recovery operates on a singular principle: total privacy. Its “one client at a time” model eliminates shared spaces and group dynamics, ensuring that each individual receives undivided attention in a controlled, confidential environment.

Clients are accommodated in private, fully serviced residences, supported by a dedicated team that may include therapists, physicians, nutritionists, and lifestyle specialists. Treatment is delivered in a flexible, responsive format, allowing interventions to be adapted in real time.

This approach reflects a broader shift in high-end healthcare, where discretion is not an added feature but the central offering.

Personalised Medicine Meets Psychological Care

Founded by Jan Gerber, the clinic specialises in addressing the complex pressures faced by global elites. These range from burnout and addiction to trauma linked to public exposure or prolonged stress.
Treatment programmes integrate multiple disciplines. Biomolecular restoration focuses on analysing and rebalancing neurotransmitters and hormonal systems affected by chronic strain. Psychotherapy, including modalities such as EMDR, is combined with functional medicine and complementary therapies to create a holistic framework.

The objective is not only recovery, but restoration of resilience. In high-pressure environments, the ability to sustain performance often depends on addressing both physiological and psychological factors simultaneously.

Reputation, Exposure, and Psychological Strain

The evolving media landscape has amplified the emotional cost of public scrutiny. Even peripheral association with high-profile controversies can trigger significant stress responses, including anxiety, reputational fear, and elements resembling complex trauma.

While Paracelsus does not position itself around specific cases or events, its model is particularly suited to individuals navigating such pressures. The emphasis on non-judgmental care, combined with strict confidentiality, allows clients to engage in treatment without the risk of further exposure.

Public advocacy has also played a role in normalising access to this level of care. Sarah Ferguson, the Duchess of York, has spoken openly about her experience at the clinic, describing it as a place grounded in compassion and humanity. Her willingness to share aspects of her journey reflects a gradual shift in attitudes toward mental health among high-profile individuals.

The Economics of Privacy

Exclusivity at this level carries a significant cost. Residential programmes typically begin at CHF 95,000 to 120,000 per week, with more specialised interventions priced higher. This positions Paracelsus within a category of healthcare that is less about access and more about precision, discretion, and intensity of service.

Aftercare is an integral component. Ongoing support, whether through in-person assistance or remote engagement, ensures continuity as clients transition back into their professional and social environments.

A New Category of Care

Facilities such as Paracelsus Recovery reflect the emergence of a new healthcare category, one designed for individuals whose personal challenges are inseparable from their public roles. In this context, treatment extends beyond clinical intervention to include the management of privacy, identity, and long-term resilience.

As digital transparency continues to expand, the demand for environments that offer true confidentiality is likely to grow. For those operating at the highest levels of business and public life, the ability to step away, recalibrate, and recover in complete privacy is becoming an essential form of capital.

The Legacy Behind the Name

The clinic’s name draws inspiration from Paracelsus, the Renaissance physician and thinker who challenged the medical orthodoxy of his time. Born in Switzerland in the late fifteenth century, Paracelsus rejected the prevailing reliance on classical authorities and advocated for empirical observation and chemical-based treatments.

He is widely credited with advancing early concepts in toxicology and pharmacology, most notably the principle that dosage determines whether a substance heals or harms. His work bridged alchemy and medicine, viewing the human body as a system influenced by both internal and external forces.

Though controversial in his lifetime, his emphasis on personalised treatment and scientific inquiry laid the groundwork for modern medical practice. The adoption of his name reflects a commitment to innovation, individualised care, and a willingness to challenge established approaches in pursuit of more effective outcomes.


The Hidden Titan: Why the American Rail Network is the Unsung Engine of  Global Commerce

While attention often centres on congested highways and crowded airspace, a quieter system underpins the movement of goods across the United States. The country’s freight rail network, largely out of public view, remains one of the most efficient and high-capacity logistics systems in the world.

To a casual observer, particularly from the air, the US rail system can appear dated. Compared with the high-speed passenger networks of Europe or Asia, it lacks the same visual modernity. Yet this comparison overlooks a fundamental distinction. The American system has been optimised not for passenger velocity, but for freight efficiency at scale.

Passenger rail in the United States continues to face structural challenges, but freight rail has evolved into a highly effective industrial platform. It plays a central role in maintaining supply chains, supporting manufacturing and ensuring the consistent availability of goods across a geographically vast economy.

Two Systems, One Network

Understanding American rail requires recognising the coexistence of two distinct operating models. On one side is Amtrak, the publicly funded passenger service, which operates across long distances and shared infrastructure. On the other are the Class I freight railroads, including Union Pacific, BNSF, CSX and Norfolk Southern.

These privately owned companies control the majority of the approximately 140,000-mile rail network. Unlike highways or air traffic systems, which rely on public funding, freight rail infrastructure is maintained and upgraded through private investment. Annual capital expenditure by these operators is substantial, supporting ongoing improvements in track quality, signalling and rolling stock.

This model reflects a different conception of rail. It is not primarily a public utility, but a core industrial asset, managed with a focus on operational efficiency and long-term returns.

Scale and Economic Impact
The defining strength of the US rail system lies in its capacity. Freight rail accounts for roughly 40 percent of long-distance freight movement by ton-mile. It carries key commodities, including energy resources, agricultural products and industrial inputs, over distances that often exceed 1,000 miles.

The economics of this scale are significant. A single train can replace several hundred trucks, reducing both transport costs and pressure on road infrastructure. For businesses, this translates into lower input costs and greater supply chain reliability.

Rail therefore acts as a stabilising force within the economy. By enabling the efficient movement of bulk goods, it supports price competitiveness across multiple sectors. Attempting to replicate this capacity solely through road transport would place substantial strain on highways and increase overall logistics costs.

The Intermodal Shift

One of the most important developments in recent decades has been the growth of intermodal transport. This system allows shipping containers to move seamlessly between ships, trains and trucks without the need to unload cargo.

At major ports such as Los Angeles, containers arriving from Asia are transferred directly onto double-stack railcars. These trains function as a land bridge, moving goods across the continent to distribution centres in the Midwest and East Coast.

This approach reduces transit times compared with maritime routes that rely on the Panama Canal and enhances supply chain flexibility. Intermodal traffic now represents a significant share of rail revenue, underlining the continued relevance of rail in a globalised economy.

Passenger Rail and Geography

Passenger rail remains a more complex proposition in the United States. The country’s scale presents inherent challenges. Distances between major cities often exceed the range where rail can effectively compete with air travel.

Outside the Northeast Corridor, where distances are shorter and population density higher, rail journeys tend to be significantly longer than equivalent flights. As a result, passenger rail has struggled to capture market share in long-distance travel.

However, there are signs of change. Private initiatives such as Brightline in Florida have demonstrated the viability of higher-speed rail in regional corridors. By focusing on routes with strong demand and manageable distances, these projects suggest a more targeted approach to passenger rail development.

Environmental Considerations

As the United States advances its transition toward lower-carbon transport, freight rail is gaining renewed importance. Rail transport is considerably more fuel-efficient than road haulage, with a single gallon of fuel capable of moving one ton of freight over long distances.

This efficiency translates into lower emissions per unit of cargo. For companies seeking to reduce their environmental footprint, incorporating rail into logistics strategies offers a practical and scalable solution.

In response, major retailers and logistics operators are increasingly integrating rail into their supply chains. Partnerships focused on “green logistics” are becoming more common, reflecting both regulatory pressures and investor expectations.

Technology and Safety

The modern US rail network incorporates advanced technologies to enhance safety and performance. The nationwide implementation of Positive Train Control has introduced automated systems capable of preventing collisions and derailments.

In addition, rail operators are deploying data-driven maintenance systems. Sensors and imaging technologies monitor equipment condition in real time, identifying potential issues before they lead to operational disruptions.

These innovations contribute to a more reliable network, reducing downtime and supporting consistent freight movement across the country.

A Strategic Asset

The American rail system occupies a distinctive position within the global transport landscape. While it may not match the speed of passenger systems elsewhere, its ability to move large volumes of freight efficiently is unmatched.

It functions as a critical component of the national economy, enabling industries to operate at scale and supporting the distribution networks that underpin consumer markets. Its privately funded model also distinguishes it from many international counterparts, aligning infrastructure investment with operational needs.

As supply chains continue to evolve and sustainability considerations become more prominent, the role of freight rail is likely to expand further. It provides both economic and environmental advantages that are difficult to replicate through other modes of transport.

Enduring Relevance

The perception of American rail as outdated reflects a misunderstanding of its purpose. It is not designed to compete with high-speed passenger systems, but to fulfil a different and equally important function.

By focusing on efficiency, capacity and integration with global trade, the US rail network has remained central to economic activity. It continues to support industries, connect markets and facilitate the movement of goods across a vast and diverse geography.

In this context, the system is not a relic of the past, but a foundational element of the present. Its contribution may be less visible than other forms of infrastructure, but it remains essential to the functioning of the American and global economy.


The Mastermind: How Taylor Swift Rewrote the Rules of the Global Economy

She does not just top the charts; she moves the needle on national GDPs. From the $2bn Eras Tour to the unprecedented reclaiming of her intellectual property, Taylor Swift has built a $1.6bn empire on the radical idea that the artist should be the CEO. In 2026, as she enters her third decade of dominance, the “Swift Model” offers valuable lessons for boardrooms across Britain.

In the summer of 2024, a curious phenomenon caught the attention of central bankers from Singapore to Stockholm. It was not a shift in interest rate policy or a spike in oil prices, but the economic impact of a 34-year-old American artist with a 44-song setlist.

The “Swift Lift”, the surge in local economic activity accompanying each stop of the Eras Tour, became a defining case study in the experience economy. In Toronto alone, Swift’s six-night residency generated an estimated $282m in economic impact, equivalent to hosting a Super Bowl multiple times over the course of a single tour cycle.

To view Swift merely as a high-performing product, however, is to overlook the structural sophistication of the enterprise she has built. As of early 2026, her net worth stands at approximately $1.6bn. Unlike peers who diversified into consumer goods, Swift reached this level largely through music, transforming artistic output into a vertically integrated business model.

This is the story of how a performer became a sovereign economic force.

Vertical Integration and the “Taylor’s Version” Strategy

One of the most consequential decisions in the modern music industry came in 2019, when Swift responded to the sale of her master recordings by re-recording her early catalogue. Rather than contest ownership through traditional channels, she effectively rebuilt the asset base.

By releasing “Taylor’s Version” albums, she redirected consumer demand towards assets she fully controlled. The originals, while still technically valuable, became commercially less relevant for licensing and streaming, effectively shifting the centre of economic gravity back into her own portfolio.

The strategy represents a clear example of vertical integration. Swift leveraged brand loyalty to migrate her audience to a product she owned outright. By 2026, her catalogue is estimated to be worth approximately $600m, underscoring the long-term value of intellectual property ownership in the digital economy.

Reinventing Scarcity: The Era Framework

Where many global brands struggle with longevity, Swift has institutionalised reinvention. Each album cycle is positioned as a distinct “Era”, complete with its own aesthetic, narrative, and audience segmentation.

This approach enables continuous renewal while maintaining brand coherence. Strategic shifts, from country to pop to indie-folk, have allowed Swift to capture multiple demographic cohorts simultaneously.

Her marketing strategy further amplifies engagement. The use of embedded clues and narrative continuity transforms passive listeners into active participants, creating a feedback loop of sustained attention and organic promotion.

Swiftonomics: The Power of the Core Audience

Conventional business theory often favours broad customer acquisition. Swift’s model prioritises depth over breadth. By cultivating a highly engaged core audience, she has created a resilient and self-reinforcing ecosystem.

The Eras Tour exceeded $2bn in ticket sales, becoming the highest-grossing tour in history. Ancillary revenues proved equally significant, with merchandise sales averaging approximately $2m per night. Her 2025 album release achieved record-breaking global sales within 24 hours, driven in part by multiple collectible formats.

This model effectively turns consumers into advocates. Fans do not simply purchase products; they amplify them, defend the brand, and extend its reach across digital platforms.

Strategic Partnerships: From Endorsement to Integration

The evolution of brand partnerships is another pillar of the Swift Model. Traditional endorsements have given way to integrated collaborations that deliver measurable value.

Her partnership with Capital One illustrates this shift. Beyond brand visibility, the collaboration provided exclusive ticket access, driving customer acquisition and retention. Reports suggest a 22 percent higher retention rate compared to standard campaigns.

Swift’s approach positions her brand as a controlled gateway. Access is selective and aligned with audience benefit, reinforcing both exclusivity and loyalty.

The 2026 Outlook: A Sovereign Brand

By 2026, Swift’s business model is studied in leading academic institutions for its adaptability and strategic coherence. She has navigated key structural challenges shaping the modern economy, positioning her as a benchmark for intellectual property strategy and brand-led value creation.

In the face of AI-generated content, her emphasis on authenticity and narrative complexity creates defensible differentiation. Control over masters and distribution reduces exposure to streaming platform economics. Meanwhile, the success of live experiences demonstrates resilience in periods of economic uncertainty.

Swift now operates less as an artist and more as a diversified intellectual property enterprise, with a scale comparable to mid-tier listed companies.

For executives, the implications are clear. Competitive advantage increasingly lies in ownership of narrative, depth of community, and control of intellectual property. In a market defined by attention scarcity, those who build enduring ecosystems around their brands will capture long-term value.

The Swift Model suggests a shift away from transactional relationships towards ecosystem building. In a global marketplace defined by trust and attention, those who master this transition will shape the next phase of economic value creation.

The ‘Swift Lift’ by the Numbers

While the “Taylor’s Version” model highlights long-term asset control, the immediate economic impact of the Eras Tour delivered a powerful boost to the UK’s post-pandemic hospitality sector. Analysts at Barclays and UK Music have since quantified the phenomenon, coining the term “Swiftonomics” to capture its scale.

The National Balance Sheet

• £997m: Estimated total contribution to the UK economy from the 1.2 million fans attending 15 tour dates.
• £848: Average spend per attendee per show, more than 12 times the cost of a typical UK night out (£67) and roughly double the average spend of a UK wedding guest.
• 62 percent surge: Year-on-year increase in international music tourism to the UK in 2024, driven largely by North American fans opting for the European leg.
London: The Global Capital of Eras
With eight nights at Wembley Stadium, more than any other city, London became the focal point of the tour’s economic impact.

• £300m: Estimated boost to London’s economy, according to the Greater London Authority.
• 150,000+ daily Tube entries: Wembley Park station recorded its highest footfall since the 2012 Olympics, exceeding pre-pandemic levels.
• 94 percent hotel occupancy: August 2024 saw record occupancy rates, with room prices in Wembley and North West London rising by an average of 27 percent.

The Inflationary ‘Glitch’

The scale of the tour was sufficient to influence macroeconomic indicators. “Swiftflation” emerged as a talking point within the Bank of England, as services inflation held at 5.7 percent in June 2024, partly driven by temporary increases in accommodation and transport costs during peak tour periods.


The Ghost in the Hiring Machine: Is AI About to Make the Recruiter Extinct?

As artificial intelligence promises to match candidates to roles with unprecedented speed and precision, the traditional recruitment consultant faces a structural shift. Yet in a landscape shaped by automation, bias, and synthetic profiles, human judgment may become more valuable, not less.

In a Mayfair office once defined by constant calls and deal-making, the atmosphere has changed. Where recruiters once relied on networks and persistence, today’s environment is quieter, driven by AI-powered systems capable of screening thousands of CVs in seconds.

The recruitment industry, worth approximately £40bn in the UK alone, is entering a new phase. Generative AI is not simply improving efficiency; it is reshaping the economic foundations of hiring.

The central question is no longer whether AI will transform recruitment, but how much of the traditional model will remain.

The Efficiency Proposition

At a structural level, AI addresses long-standing inefficiencies in hiring. Automated Applicant Tracking Systems now use natural language processing to evaluate candidates based on semantic alignment rather than simple keyword matching. These systems can assess career trajectories, skills, and contextual relevance at scale.

"Despite its advantages, AI introduces new risks. Algorithms are inherently dependent on historical data. If past hiring patterns reflect structural biases, those biases may be reinforced rather than eliminated."

For employers, the benefits are clear. Time-to-hire is reduced, costs decline, and screening becomes more consistent. For recruitment agencies, however, the implications are more complex. If companies can identify talent internally using AI, the value proposition of external intermediaries is under pressure.

The Decline of the Traditional CV

The curriculum vitae, once the cornerstone of professional identity, is evolving into a highly optimised digital artefact. Candidates increasingly use AI tools to refine and tailor applications, creating a feedback loop in which algorithms generate content that other algorithms evaluate.

This dynamic risks obscuring authenticity. Profiles appear increasingly polished, making differentiation more difficult. As a result, the recruiter’s role is shifting from sourcing candidates to verifying substance behind the data.

Bias and the Limits of Automation

Despite its advantages, AI introduces new risks. Algorithms are inherently dependent on historical data. If past hiring patterns reflect structural biases, those biases may be reinforced rather than eliminated.

Cases of algorithmic discrimination have already emerged, highlighting the need for oversight. In this environment, recruitment firms may evolve into auditing and advisory partners, ensuring fairness and transparency in automated systems.

The Reinvention of the Recruiter

The traditional agency model is unlikely to disappear entirely, but it will need to evolve. Low-value, high-volume roles are increasingly automated. The remaining opportunity lies in high-value placements where judgment, context, and interpersonal understanding are critical.

Recruitment is therefore becoming a bifurcated market. At one end, AI-driven systems handle routine hiring. At the other, human expertise becomes a premium service.

In this model, recruiters act less as intermediaries and more as strategic advisors. Their role is to interpret data, assess intangible qualities, and guide both clients and candidates through complex decisions.

The Candidate Experience

Automation has also altered the candidate journey. Processes that rely heavily on algorithms can feel impersonal, with limited feedback and minimal human interaction.

This creates an opportunity for differentiation. Firms that combine technological efficiency with meaningful human engagement are likely to gain a competitive edge. In this context, relationship-building becomes a core asset.

The Recruiter of the Future

The skill set required in recruitment is changing. Future professionals will need to combine technical literacy with human insight. Data interpretation, cultural understanding, and long-term career guidance will define the role.

The emphasis is shifting from transactional activity to advisory capability.

Adaptation as Imperative

The recruitment industry is not disappearing, but it is undergoing structural transformation. AI is removing routine tasks and exposing the underlying value of human judgment.

Firms that rely on volume-driven models will face increasing pressure. Those that embrace a hybrid approach, combining AI capabilities with human expertise, are better positioned to adapt.

The future of recruitment will not be defined by automation alone, but by how effectively organisations integrate technology with human insight. Those that strike this balance will not only improve hiring outcomes, but also build more resilient and adaptive workforces.


Kim Jenkins: Building Vistra’s Next Chapter Around Execution

[caption id="attachment_28551" align="alignright" width="300"] CEO: Kim Jenkins[/caption]

Vistra Group CEO Kim Jenkins is focused on three priorities: building a unified digital backbone, empowering market leaders, and developing AI literacy across the organisation. Together, they are intended to improve client experience, strengthen accountability, and unlock sustainable growth.

For Kim Jenkins, Vistra’s next phase is defined by execution.

The strategic direction is already clear. Vistra intends to become a digitally powered professional services leader. Jenkins’ role is to ensure that ambition is delivered consistently across markets.

Her priorities for the next 12 to 18 months are equally direct. Vistra must build a single digital backbone, simplify accountability around market leaders, and make every colleague AI-literate.

The appointment of Damian Leach as Chief AI and Digital Officer supports that agenda. So does the creation of a Digital Subcommittee of the Board. Together, they signal that digital transformation is a core strategic priority.

How Vistra Is Building a Unified Digital Backbone

The first priority is to create one digital backbone across the organisation.

Clients should experience one Vistra, regardless of whether they operate in London, Singapore, Hong Kong, or another market. Systems, workflows, and service standards must support that consistency.

Vistra Digital is central to this model. The platform allows clients to view their entity estate, upload documents, track requests, and communicate across markets.

It also gives clients greater control over how they engage. Some prefer digital self-service. Others want direct human interaction. Vistra is building both options into the same service model.

The company describes this as client choice rather than forced digitisation.

That distinction matters. Corporate and fund services remain complex, regulated, and highly dependent on judgement. Digital tools can improve speed and access, but they cannot replace professional assurance.

Jenkins’ view is that technology should strengthen the client relationship, not weaken it.

The benefits extend beyond the client interface. A unified digital backbone can also reduce internal friction and recover time lost to non-value work.

Vistra estimates that between 30 and 50 percent of employee time can be affected by fragmented processes. These include searching for files, chasing documents, and locating ownership information.

Reducing that burden allows colleagues to spend more time on advice, service quality, and client relationships.

How Market Leaders Improve the Client Experience

The second priority is structural simplification.

Jenkins has reorganised the business around empowered market leaders. These leaders hold responsibility for sales, account management, and service delivery.

The purpose is to create one clear point of accountability for each client relationship.

This structure is important because seamless service begins with people. Technology cannot correct an operating model that is unclear or fragmented.

Market leaders sit closest to clients. They understand local regulation, commercial practice, language, and culture.

The wider organisation is therefore designed to support them.

This model also protects local expertise while improving global consistency. Clients receive the same professional standard across markets, but still benefit from advisers who understand local conditions.

Jenkins sees this as the foundation of a stronger client experience.

A client may need a document while travelling across time zones. Another may require guidance on a complex compliance issue.

Digital access can solve the first problem. Trusted professional judgement remains essential for the second.

Vistra’s structure is intended to bring both together.

How Kim Jenkins Leads Transformation

Jenkins places strong emphasis on simplification and ownership.

Large organisations often struggle because accountability is divided. Decisions slow down, responsibilities overlap, and teams spend too much time coordinating internally.

The market leader model is designed to reduce that friction.

Communication is another priority. Jenkins believes transformation works only when colleagues feel heard, not simply informed.

Employees must be able to question decisions, identify problems, and explain what is happening close to the client. That feedback allows the organisation to adjust more quickly.

Implementation also receives close attention.

Vistra is rolling out change market by market, supported by dedicated local teams. These teams remain in place long enough to embed new processes.

The approach is deliberate. Large-scale programmes often fail because too much attention is given to strategy and too little to delivery.

Jenkins is seeking to correct that imbalance.

How Vistra Is Building AI Literacy

The third priority is to make AI literacy a company-wide capability.

Vistra’s first 250 AI users came from the leadership team. The intention was to ensure that senior leaders understood the tools before asking others to adopt them.

More than 1,100 colleagues later volunteered to become AI champions.

That level of participation suggests that employees see AI as an opportunity rather than simply a threat.

AI is already being used across Vistra’s services. It supports research, regulatory scanning, onboarding, entity management, payroll, and compliance workflows.

Geni, Vistra’s AI assistant, helps clients access information and accelerate service requests. Clients can use self-service tools or work directly with specialists.

Behind the scenes, AI helps advisers process information and monitor regulatory change more efficiently.

The objective is not to remove human judgement. It is to improve the speed and quality of preparation.

Where Human Judgement Remains Essential

Jenkins draws a clear boundary around the role of AI.

Technology can prepare information, identify patterns, and reduce administrative work. It cannot replace professional responsibility.

Clients want confidence that their entities are compliant and in good standing. They also want access to someone who understands the relevant regulations.

This is especially important in high-stakes governance and compliance matters. Errors can lead to financial penalties, reputational damage, and operational disruption.

Vistra’s position is straightforward: technology without expertise creates risk, while expertise without technology creates inefficiency.

Its model combines both.

How Vistra Preserves Entrepreneurial Culture

Vistra has completed 18 acquisitions over 15 years. That growth has created scale, but it also creates integration risk.

Large organisations can lose the speed and ownership that helped them grow.

Jenkins is seeking to preserve those qualities through local accountability. Market leaders retain commercial responsibility while operating within a global framework.

Governance is also being strengthened without creating unnecessary bureaucracy.

The Digital Subcommittee of the Board provides oversight. Execution remains with teams operating in local markets.

Innovation is encouraged from both directions. Strategic priorities come from the top, while ideas also emerge through the AI champions programme.

The result should be a company that is more consistent without becoming rigid.

What Vistra’s Next Phase Means for Stakeholders

For clients, the next phase means a more seamless and accessible service.

For colleagues, it means clearer processes, better tools, and less time spent on fragmented work.

For shareholders, it means stronger retention, operational leverage, and further geographic expansion.

These outcomes are closely connected.

A unified digital platform improves service. Clearer accountability strengthens execution. AI literacy increases productivity and supports better decisions.

Together, they form the operating model Jenkins is seeking to build.

Her ambition is not simply to digitise professional services. It is to create a global organisation that combines scale with local expertise and technology with judgement.

The principle is simple: clients choose how they work, and Vistra’s experts handle the rest.