Pioneering Spirit, Boldness, and a Deep Understanding of ‘Unity’

Nordic firm United Bankers has history and success behind it — and a great future ahead.

Helsinki-based United Bankers set out to be a pioneer in real-asset investing for Nordic countries — and to expand its activities across Europe.

[caption id="attachment_26887" align="aligncenter" width="1000"] Helsinki[/caption]

Over the past four decades, the firm has built an impressive amount of know-how, which, points out CEO Patrick Anderson, “is great to export to the European market”.

The expertise accumulated in the forestry industry and renewable energy fields has served it well — as has its deep understanding of real-asset investment.

“We seek to build on the success of our fund portfolio, built around real asset investments,” says Anderson, “and on our expertise in forest management and the forestry sector.

“Even in volatile market conditions, real-asset-focused solutions, as well as our newer funds investing in private equity and renewable energy provide stable performance.”

This is a company which knows how to adapt, as well. “What used to cover 100 percent of the company's revenue and profits 25 years ago, now covers one percent. The company started as a pure brokerage house and has undergone significant structural and strategic changes to become a real asset-focused wealth manager.”

A sustained focus on sustainability is driving United Bankers into the future — and responsible investment is at the core of all its activities. “That’s reflected in the company’s product range, which aims to find profitable investments that also take into account the environment and society,” the chief exec says.

United Bankers was among the first financial institutions in Finland to commit to setting short- and long-term climate targets under the Science Based Targets (SBT) initiative. The aim is for the carbon sequestration of investment portfolios to exceed the greenhouse gas emissions of investments by 2030. The firm’s goal is to achieve net-zero emissions by the end of 2050.

Times have been tough for just about everyone, over recent years, but resilience is built-in at United Bankers. “At the moment, geopolitical risks are elevated,” says Anderson, “but otherwise we are in a normal economic environment. Changes in market conditions are a reality. We have the courage to take advantage of tough situations, and the ability to adapt.”

United Bankers is a pioneer of Nordic forestry investments. The significant role of forestry in the business differentiates the corporate set-up from other financial players

“The competition in Finland is constant, creating new opportunities as United Bankers changes to meet challenges and opportunities, for example in M&A,” notes Anderson.

“Finland and the Nordic countries are a relatively small market, but we are expanding internationally. Private equity funds will be our spearhead products; we’re growing business organically, and through acquisitions.”

United Bankers is majority-owned by its staff, management, and the board of directors. Management and staff are committed and connected via an ownership stake of nearly 60 percent.

“And management is committed to increasing shareholder value through its holdings,” says Anderson. “United Bankers is in many ways like a family business, united in name and nature.” The largely unchanged management structure, and low staff turnover, reflect that.


Big Issue Invest Restaurant Project Brings Hope and Employment to People Sleeping Rough in London

Major financial boost for world’s first fine-dining restaurant to be staffed by homeless people.

A six-figure investment from Big Issue Invest is helping to kick-start a social initiative giving homeless people employment at a fine-dining restaurant.

The staff at Home Kitchen, a new restaurant in Primrose Hill, north-west London, are all struggling with the scourge of homelessness — sleeping rough, sofa-surfing, or living in unstable accommodation. The scheme is a bid to tackle homelessness and hospitality staffing shortages in one dramatic swoop.

Big Issue Invest, the social investment arm of the Big Issue Group, has put £210,000 into the project, which will see the recruits working side-by-side with Michelin-starred executive chef Adam Simmonds.

The restaurant will open its doors in September, says Big Issue Invest CEO Danyal Sattar. The venture would “bring change through enterprise”, he said, and give underprivileged people a route into the hospitality industry.

Big Issue’s Blueprint To End Poverty is calling on the UK government to implement a range of policies, including investment in education and skills training, to support a back-to-work drive with “confidence-building approaches”. The overriding aim is to end rough sleeping by 2030.

“The solution that Home Kitchen has cooked up certainly has the ingredients to help achieve those goals,” quipped Simmonds, adding: “It will be an accelerant out of poverty for our recruits, and an incubator of untapped talent for the catering industry.

“The restaurant business is an ideal vehicle for our social impact. If you can change perceptions in this world, then you can do it in any other walk of life.”

Home Kitchen’s recruits will receive full-time contracts at London Living Wage, travel expenses, and two tranches of training. After a 90-day probationary period at Home Kitchen, they will go on to Westminster Kingsway College. There, they will study for professional culinary skills certification in addition to the on-the-job training under the watchful eye of Simmonds.

The initial brigade will be 16 strong, supported by a head chef, general manager, assistant general manager, and a hands-on leadership team with wide experience in the “third sector” — the charities, social enterprises and community groups delivering essential services, improving individual wellbeing, and contributing to economic growth. The recruits will also learn about fine and casual dining, marketing and advertising, catering, hospitality, and event management.

Big Issue Invest, founded in 2005, offers loans and investments — ranging in size from £20,000 to £4m — to social enterprises and charities across Britain. A full 90 percent of that goes to organisations creating core solutions to end poverty.

More information: bigissue.com/invest


Natrium: Taking a Nuclear Leap Towards a Low-Carbon Future

In June 2024, a silent revolution was taking place in the windswept plains of Kemmerer, Wyoming…

A groundbreaking ceremony took place among the ghosts of America’s coal-mining past in June, a watershed moment in the global drive for sustainable energy.

[caption id="attachment_26896" align="aligncenter" width="622"] Rendering credit TerraPower[/caption]

Kemmerer, Wyoming, was the unexpected venue to debut the Natrium reactor — a nuclear powerplant poised to transform the energy landscape.

The project was about more than replacing coal with nuclear; it was a paradigm shift for energy generation. The reactor's revolutionary design vaulted two barriers to the universal adoption of renewable energy: safety concerns about nuclear power, and the unpredictable nature of wind and sunshine.

At the heart of the Natrium concept is liquid sodium, a stable coolant even at high temperatures, which negates the need for the high-pressure systems used in nuclear plants of old. This improves safety and has streamlined reactor design to become more efficient and cost-effective.

Natrium uses molten salt for energy storage, something of a game-changer in the field of renewables. This "thermal battery" collects heat from the reactor and transforms it into energy, bridging the supply-demand gap. Wind and solar farms, reliant on weather conditions, could now be linked to the grid, with their intermittent generation smoothed out by a dependable energy reserve.

The Natrium launch attracted a throng of scientists, engineers, policymakers, environmentalists, as well as interested Wyoming residents. While some remain sceptical about nuclear risks, TerraPower — a Bill Gates invention — has put Natrium's innovative safety features in the spotlight.

Emily Carter, TerraPower's CTO, describes the Natrium reactor as more than just another nuclear plant. “It’s the result of decades of research and creativity,” she says. “This technology has the potential to offer dependable, carbon-free energy that complements renewables while maintaining a stable power grid."

Natrium could pave the way for a new generation of nuclear plants capable of rapidly decarbonising the power industry. Countries struggling to meet their climate targets might find solutions in the advanced reactor design, hastening the move away from fossil fuels.

But the Natrium reactor has its detractors and critics. Some environmental groups have raised concerns about the perennial problem of nuclear waste disposal — and the possibility of accidents, no matter how remote. Others questioned nuclear power's economic viability in light of the growing affordability of renewable energy.

TerraPower has acknowledged the perceived problems, and promises to participate in open communication with stakeholders. It emphasises the need for stringent safety measures, transparency, and continual innovation.

As the sun sank over the Kemmerer construction site on ground-breaking day, a cautious optimism permeated the atmosphere. The Natrium reactor is a daring experiment — and one that could create a direct path to a more sustainable future. That path may be strewn with uncertainties, but the stakes are high and the possibilities grand.

The initiative may yet shape global efforts to address climate change — and ensure a reliable energy source for the future.


EY Argentina: New Tax Bill for Argentina’s Congress to ‘Incentivise FDI’

Milei’s new administration considers the realities of reforming a troubled economy.

When Right-wing economist Javier Milei took over Argentina's presidency, he also took on the challenge of transforming a country in the grip of severe economic challenges.

The international business community has taken a keen interest. Milei's presidency pledges to redefine the established norms of his country’s economic landscape, emphasising radical tax reform and macro-economic stabilisation.

Argentina had been in economic turmoil, with high inflation, rising public debt, stagnant wages, and a raging unemployment rate. This was the picture of a nation in distress, with an unfavourable business environment, erratic economic policies, and steep tax obligations. These challenges resulted in a 200 percent annual inflation rate in 2023 and a poverty index of over 45 percent.

Early Actions

Milei's administration wasted no time introducing reforms aimed at corporations and individuals. The first, a tax reform bill, was rejected by Congress. Milei said that ruined an opportunity to stimulate economic recovery and attract foreign investment. He remains committed to his vision of tax reduction and simplification.

Taking on Inflation

Inflation is the most pressing issue to be addressed. From December 2023 to March 2024, it dropped from 25 percent a month to 11, and at the time of writing it is still falling. Market expects a single-digit inflation rate for the second quarter of 2024.

Investment Climate

Improving the investment environment is a key goal of Milei's administration. The proposed transformations intend to make Argentina a lucrative investment hub for oil and gas, mining, agribusiness, technology, and infrastructure.

One significant measure is the Incentive Regime for Large Investments (Regimen de Incentivo para Grandes Inversiones, or RIGI, in Spanish). Although this was withdrawn by the executive branch in January 2024, in early April a new bill, including such a regime, was sent back to Congress for consideration.

The purpose is to give those who commit to investments of over $200m with predictability, stability, legal certainty and protection of acquired rights in tax, customs, and foreign-exchange matters.

The RIGI focuses on all sectors of the economy, across the country. It aims to encourage national and foreign investment, develop and strengthen the competitiveness of various sectors, increase exports, promote job creation, and generate welcoming conditions for investors.

The regime will be available for two or four years after it comes into force and will apply to sole-purpose vehicles (SPVs, or VPUs in Spanish) for large investment. The bill defines “large” investments as those involving the acquisition, production, construction and/or development of assets to be used for activities of the sectors included in the RIGI. The investment amount in computable assets is determined by regulations, and will, for the first and second years, be subject to a minimum.

Acquisition of companies may also be computed as “large investment” under certain conditions.

In order to obtain tax stability, investments must be long-term and have a ratio of no more than 30 percent between the current value of expected net cashflow — excluding investments — and the net present value of the investments during the first three years.

Tax and customs incentives:

SPVs will be subject to a 25 percent income tax rate (as opposed to the general rate of 35 percent).

An accelerated amortisation mechanism may be applied.

Net operating losses (NOLs) that cannot be absorbed by taxable profits from the same period may be carried forward indefinitely, and deducted from taxable profits in subsequent years. After five years, any remaining losses may be transferred to third parties.

NOLs can be adjusted for inflation.

Dividends distributed more than three years from the closing of the fiscal year in which the profits were realised are subject to a zero percent withholding tax. This applies only for profits realised in fiscal years that close more than four years from the date of adhesion to the RIGI.

When the SPVs receive invoices for the purchase, construction, manufacture, elaboration or definitive importation of fixed assets or for investments in infrastructure and/or services necessary for their development, they may pay the VAT with tax-credit certificates. The regulations establish the requirements, procedures and conditions for the issuance, delivery and/or transfer of the certificates.

This particular mechanism would enhance working capital because no cash disbursement would be needed to fund VAT upon purchases of goods and services.

SPVs may claim an income tax credit for the entire amount paid and/or collected for the tax on debits and credits in bank accounts.

Imports of capital goods, spare parts and components made by the SPVs are exempt from import duties, statistics and destination verification, and from any regime of reverse withholding, prepayment or withholding of national or provincial taxes.

Exports made by the SPVs will be exempted from export duties after three years from the date of adhesion to the RIGI.

Thin cap rules included in the income tax law should not apply to SPVs in the first five years following the adhesion to the RIGI.

Import and export restrictions cannot be imposed.

SPVs may choose to keep their accounting records and financial statements in US dollars, following NIIF standards.

Simpler procedure for reorganisations carried out for the purpose of establishing an SPV.

Foreign Exchange Incentives

The export collections made by the SPVs are exempt from being entered and settled in the local Official Foreign Exchange Market in the following percentages:

20 percent of the collections from the first year as from the date of adhesion to the RIGI

40 percent of the collections from the second year as from the date of adhesion to RIGI

100 percent of the collections from the third year as from the date of adhesion to RIGI.

These funds in the referred percentages are to be freely available.

SPVs will not be obliged to enter and/or settle the foreign currency of other concepts related to the project (capital contributions, loans, etc) in the official foreign exchange market.

Exchange regulations that establish, or may establish, restrictions or prior authorisations for access to the official foreign exchange market for (i) the payment of a loan principal and other financial indebtedness with foreign countries, or (ii) the payment of profits, dividends or interest to non-residents, among others, will not be applicable under certain conditions.

Stability

SPVs that adhered to the RIGI will benefit from a 30-year stability period in tax, customs and foreign exchange matters. The incentives may not be affected either by the revocation of the current regime or by the creation of tax, customs or foreign exchange regulations more burdensome or restrictive than those contemplated in the RIGI.

New taxes created on or after the adhesion date, and increases in existing taxes, will not be applicable to the SPVs.

The foreign exchange regime in force at the date of adhesion to the RIGI may not be affected by exchange regulations that may be issued establishing more burdensome conditions.

A special procedure is provided for contesting infringed stability.

Looking Forward
These proposed economic reforms bring a sense of cautious optimism to Argentina's economic outlook.

The new Tax Bill recently sent to congress includes an incentive regime for foreign and local investments. A 30-year stability period would provide security for investors’ projects. If this bill is passed by Congress, it is expected that the country will receive FDI in many competitive sectors, with a particular boost for the economy.

About the Author

[caption id="attachment_15880" align="aligncenter" width="269"] Author: Sergio Caveggia[/caption]

Sergio Caveggia is a tax partner currently in charge of Transaction Tax area in Argentina. He joined EY Argentina in 1994 and has developed expertise over 26 years in international taxation and merger and acquisition matters. Sergio is also focus on servicing clients in the Private Client Services (PCS) area. He is highly experienced in inbound and outbound investments, buy side, sell side and restructuring services within the Transaction Tax area.

Sergio has served in a variety of industries and has also been involved in many due diligence procedures performed in the past over 20 years. He has given lectures in national universities and is a frequent speaker in tax seminars. He has also written several articles dealing with Argentina tax issues.

He is a Certified Public Accountant who graduated from University of Belgrano in Argentina. He obtained his Tax Specialist’s Degree at the University of Belgrano and has a postgraduate certificate in Business and Management from Universidad Catolica Argentina (UCA). He is also member of the Professional Council of Economic Sciences of Buenos Aires and the Argentina Fiscal Association.


BAWAG Forging Ahead and Staying at the Forefront of Banking Strategy by Maintaining a Long-Term Focus

People, patience, and profits are all allied for Austria’s burgeoning BAWAG banking group.

Austria’s BAWAG has emerged as one of Europe’s most profitable and efficient banking groups, with a straightforward goal: to provide transparent and affordable financial products and services. The strategic pillars it has defined at the beginning of the transformation in 2012 have remained consistent since then. Anas Abuzaakouk, CEO of BAWAG Group, explains, "We are a multi-brand and multi-channel banking group focused on developed and mature markets in the DACH/NL region, Western Europe, and the US, with a strong emphasis on retail and SME banking. We aim to provide our customers with simple, transparent, and affordable financial products and services they need and that promote their financial health.  Our unwavering commitment has always been, and will continue to be, delivering consistent and reliable results for all our stakeholders."

[caption id="attachment_26873" align="aligncenter" width="900"] BAWAG Group: Headquarters at Wiedner Gürtel 11, 1100 Vienna, Austria. Photographer: Henning Kreft[/caption]

Disciplined Capital Allocation

Disciplined capital allocation is a cornerstone of BAWAG’s strategy. “Our robust profitability underpins our capital distribution plans,” states Abuzaakouk. “We strategically deploy this capital to invest in our business and teams, provide credit to our customers, grow our business through acquisitions, and return value to our shareholders. Being good stewards of capital means being prudent in our distribution strategies, maintaining a strong and resilient balance sheet, and always being prepared to capitalize on great opportunities for the franchise.”

Impressive Growth and Acquisitions

Since its IPO in 2017 thru year-end 2023, BAWAG has extended €47 billion in credit to its customers, supporting their needs, while expanding the franchise. “We have also self-funded nine acquisitions and signed two further acquisitions in 2024,” adds Abuzaakouk. The bank has consistently increased its dividend, starting at €0.60 per share for 2017 and reaching €5.00 per share for 2023, distributing €19.70 per share in dividends (€1.7 billion in total dividends). Additionally, BAWAG has completed 3 share buybacks, equal to €900 million, reducing its overall share capital by over 21 percent since the IPO.

In February 2024, BAWAG Group signed a transaction to acquire digital bank Knab from ASR Nederland NV. Knab, founded in 2012, has developed a strong brand and loyal customer base by addressing the Dutch self-employed market. “This deal will expand our DACH/NL footprint,” says Abuzaakouk, “building out our customer franchise, and allowing us to grow the business and earnings.” In July 2024, BAWAG Group announced to acquire Hamburg-based Barclays Consumer Bank Europe from Barclays Bank Ireland PLC. “This acquisition provides us with a German consumer lending platform focused on credit cards, personal loans, and savings products across a large and diverse customer base. The two acquisitions signed will expand BAWAG Group's footprint in the DACH/NL region as well as its share of the Retail & SME business “, comments Abuzaakouk.

Commitment to its environmental and social footprint and Managing Non-Financial Risks

BAWAG remains committed to its 2025 ESG targets, laid out in 2021. When setting those goals, the aim was to set a positive example for peers and customers to reduce our environmental footprint and to promote female leadership. . “The targets support our customers in their own green transition, capturing environmental risks in our underwriting and limit-setting, maintaining a meritocratic culture as well as increasing female representation across the senior leadership team.”

Being safe and secure is not limited to balance sheet numbers or regulatory KPIs for BAWAG. It’s also about embedding a strong governance framework to minimize non-financial risks, whether AML- or ESG-related. “We continuously enhance our governance structure as well as risk management frameworks to address these risks, with climate risk having gained importance for all stakeholders. We will continue to integrate environmental factors, as we enhance our data collection and underwriting to account for emerging climate risks.” BAWAG Group's business model is focused on retail banking and therefore BAWAG has very limited exposure to high-emitting GHG sectors. We are committed to further reduce our environmental footprint as a joint effort with our clients.

Social Engagement and Community Support

BAWAG recognizes the importance of tackling environmental threats and socio-economic inequalities. “The team’s efforts around social engagement resulted in a record year of both financial support and volunteerism,” says Abuzaakouk. In 2023, BAWAG surpassed 3,700 hours of corporate volunteering, with efforts focused on partnering with various organizations to support under-served communities and promote financial literacy.

These partnerships have been rewarding for all involved — and BAWAG has committed to providing financial and volunteer support in the coming years. It also supported disaster-relief efforts in 2023, helping communities across 19 municipalities in Austria which suffered from floods. “To further develop our community outreach programs, the management board and extended management board collectively donated €1 million, matched in full by the bank, to fund the various social programs.”

Unique Culture and Leadership

BAWAG’s strength stems from its unique culture, blending its heritage with a spirit of entrepreneurship, accountability, meritocracy, and inclusion. “Our senior leadership team, 98-strong, has led our transformation over the past decade,” says Abuzaakouk. The bank promotes a simple and flat organizational structure, encouraging team members to challenge the status quo for the betterment of the team.

Accountability, meritocracy, and inclusion are integral to BAWAG’s corporate identity. The team represents 53 nationalities, with a female representation of 32 percent in senior leadership and 55 percent across the entire organization. BAWAG fosters an environment where the best and brightest individuals thrive, embracing change as the only constant.

BAWAG helps its employees develop professionally, promoting diversity, meritocracy, and a sense of ownership. The bank embraces a culture of continuous learning and improvement, actively seeking feedback and striving to enhance skills and processes over time. This ownership mentality is bolstered by employee stock grants and matching programs, with a focus on retaining and attracting top talent. BAWAG’s consistent strategy, dedication to disciplined and profitable long-term growth,  and strong corporate culture ensures it remains at the forefront of the banking industry.

Outlook

BAWAG is competing in a European banking industry that is undergoing transformational changes. “The coming years will see rapid shifts as the traditional model is disrupted by advancing technologies, shifting customer behaviors, new engagement methods, and the widespread adoption of AI across all facets of our business,” says Abuzaakouk. To stay competitive, BAWAG focuses on operational excellence, embracing user-friendly technology, and optimizing processes. “We consistently invest in growth and efficiency to expand our advisor focused branch network and remain competitive as the banking landscape evolves,” he adds. “One thing is certain about the future: it promises continuous change. Commercial banking is increasingly becoming a business where financial institutions can leverage technology to create seamless processes across various platforms. While the focus of the first years of our transformation was right sizing the business, we pivoted to international expansion and acquiring complimentary businesses in 2015. With the two acquisitions signed in 2024, we have planted the seeds for the continued profitable future growth of BAWAG Group and I am convinced that our best years lie ahead of us.“


Accenture: Embracing Cloud Based Operating Models

Five Actions for Organisations in the Kingdom of Saudi Arabia

The Kingdom of Saudi Arabia (KSA)—the Middle East’s largest economy—has embarked on the cloud adoption journey later in comparison to other economies in the region. However, they have a historic opportunity at hand that they must not ignore. The KSA can establish unique benchmarks in cost competitiveness and innovation, building cloud-based operating models helping it achieve its goals enshrined under its Saudi Vision 2030 on time and with fiscal prudence.

[caption id="attachment_26914" align="aligncenter" width="900"] Author: Omar Boulos, Accenture’s Market Unit Lead in the Middle East[/caption]

What might a “digital first” country look like? The Kingdom of Saudi Arabia (KSA) envisions a future where its people—especially for the young—can live and thrive. One where transactions will be both seamless and secure, with an ecosystem of service providers offering everything from entertainment to education.

These and other goals have been laid out in the Saudi Vision 2030, an ambitious $3.3 trillion-plan to pivot away from a dependence on oil and remake society in the process. Spanning major infrastructural projects and socioeconomic reforms, achieving the aims of Saudi Vision 2030 will require continuous innovation and prudent financial management, involving stakeholders across the globe collaborating and co-creating value.

A Centerpiece Strategy: Cloud Technology

Cloud-driven operating models will be a key enabler. Recognising this, the KSA has been strategically positioning itself as a cloud-friendly nation in the region over the last five years. In 2019, it launched the Saudi Cloud Strategy to promote the use of cloud computing, following up with the Cloud Computing Special Economic Zone in April 2023.

Moreover, forward-thinking regulatory policies—such as the Cloud Computing Regulatory Framework, the Cloud First Policy and the National Cybersecurity Authority’s Cloud Cybersecurity Controls—are paving the way for more widespread cloud adoption.

These policy changes have been backed up with government investments in key infrastructure. In 2021, the Saudi Ministry of Communications and Information Technology (MCIT) launched a US$18 billion plan to build a network of large-scale data centers across the Kingdom.

The growing commitment of the KSA to cloud computing is attracting investments from the world majors in this space. For example, in November 2023, the Google Cloud Region has been launched in Dammam. Research commissioned by Google Cloud and conducted by Access Partnership estimates that this could potentially boost the country’s gross domestic product by $109 billion and generate 148,600 jobs between 2024 and 2030.

Not Just Any Cloud Technology

Although the KSA may have embarked on its journey of cloud adoption later than other nations in the region, it now has a massive opportunity to set the benchmarks for efficient and responsible cloud operating models that drive innovation and cost-competitiveness.

The Cloud Continuum will provide organisations of all sizes involved in such mega infrastructure projects with an optimised, scalable, and agile platform, accelerating their digital transformation by integrating technologies such as AI, Big Data and analytics, and Internet of Things. These can only be built responsibly with a strong digital core bringing together applications, services and data via the cloud powered by green software and programming.

Done right, it will create a technology foundation providing workers a flexible way of accessing and creating value with their data at anytime, anywhere. Most importantly, it will do so without the cost burden that a physical function would require.

How can organisations in the KSA go about building operating models on the Cloud Continuum?

Five Actions Towards Building Cloud Based Operating Models

Recent research from Accenture, titled The Race to the Cloud, has five actions to offer organisations—both public and private—in the KSA:

To begin with organisations must strategically pursue the full power of cloud as a force to drive total enterprise reinvention. They must prioritise use cases according to time-to-value and align investments with emerging business strategies.

Next, they must embrace cloud as a strategic enabler and adopt the right mix of capabilities and services across the Cloud Continuum.

They must recognise that a cloud operating model can only succeed with transforming people and processes in tandem—from ways of working to organisational cultures—to thrive in the Cloud Continuum.

Most importantly, to unleash value of your cloud investments they must incur equal or more spend on data and AI. With data excellence, cloud investments help carve out an important competitive edge. And with right insights across the enterprise, organisations innovate value with speed.

Mastering and optimising cloud economics is essential. This requires not only transparency and oversight, but also shifting the conversation from cloud-cost to cloud-value.

Leading companies across key industries such as banking are already putting these lessons and actions into practice and reaping benefits. Take Minna Bank, for example, which was not only Japan’s first digital bank but the world’s first full cloud banking system.

From the outset, it was designed as a “digital first” company that provides financial services to everyone, including digital natives—individuals that the KSA looks to attract in terms of talent pools and residents in its cities of the future.

Specifically, in the context of their “Zero Bank Core Solution”, Minna Bank’s digital core was built on Google Cloud using a cloud-first approach, connected technology and cloud-native core solution. Thus, empowered by the right combination of technologies, it took less than 18 months to launch a transformational bank amid strict regulations governing financial institutions during the COVID-19 pandemic.

Executives at Minna Bank agree that if it was not for cloud driven operating model, they would have been six months late in opening. Cloud gave them scalability, enhanced speed of deployment and made them efficient in fixing bugs.

Remember…

Cloud operating models are like a muscle; building them with the appropriate capabilities, data-driven insights and ecosystem partnerships requires constant nourishment. With strong government and corporate support, the time is right for organisations in the KSA to build and flex their cloud muscle now.

Setting Global Benchmarks: KSA All Set to Boost Status

In Saudi Arabia, an ambitious vision is taking shape — a future in which its people can thrive in a seamlessly connected digital landscape.

It's a world supported by layers of impenetrable security, with an ecosystem of service-providers ready to fulfil every need, from leisure and entertainment to education.

This relentless pursuit of digitalisation lies at the core of Saudi Vision 2030, a $3.3tn blueprint aimed at propelling the nation beyond its historical reliance on oil, and revolutionising society along the way.

Such ambition needs powerful and adaptable technology to deliver on its goals.

Saudi Arabia stands at a crossroads, with an opportunity it cannot overlook – entering Cloud computing. By adopting these models, the KSA can set new standards for cost competitiveness and innovation.

Historically, Saudi Arabia embarked on its cloud journey a bit later than its regional counterparts. But what it lacked in timing, it made up for with strategic vision. The past five years have seen a concerted effort to position the Kingdom as a Cloud powerhouse.

The government has been pouring resources into building the necessary infrastructure. A testament to this is the Ministry of Communications and Information Technology’s (MCIT) 2021 initiative, an $18bn investment to establish a network of data centres across the kingdom.

This is about more than establishing infrastructure; it’s about setting global benchmarks. It isn’t just about technological integration, either: it’s about building a sustainable digital core.


Barış Öney is a Man of Many Talents — and Apparently Endless Energy

The founder of Globalturk Capital, Barış Öney, has many strings to his bow — and many successes to his name.

Barış Öney, founder and managing partner of Globalturk Capital, has over 30 years of experience in pre- and post-investment management, private equity, private credit, venture capital, mergers and acquisitions, and IPOs.

[caption id="attachment_26911" align="aligncenter" width="900"] Founder and Managing Partner: Barış Öney[/caption]

He is a GPCA CEE Leadership Council member and Türkiye’s country representative. Öney has managed more than 300 cross-border M&A and private capital transactions and IPOs, project finance, privatisation, due-diligence and valuation projects — on sell- and buy side — for clients including large conglomerates and SMEs.

The volume of transactions he has managed amounts to more than $5bn. In his 13-plus years at the head of Globalturk Capital, which has offices in London and Istanbul, he has been “hands-on” as an M&A transaction advisor (sell- and buy side) for corporates, private equity and venture capital funds.

Globalturk Capital takes co-investment minority positions selectively with private-equity investors. It has been active in Türkiye and surrounding regions, the UK, Europe, the US, China and emerging markets.

Prior to establishing Globalturk Capital, the founder was involved in setting up and managing investment banking and corporate finance advisory practices. He has worked in three of the most renowned financial institutions in Türkiye: Deloitte (where he was a partner), Yapi Kredi Yatirim (acting deputy general manager) and TSKB (senior director). He has also managed strategic international business development function in the M&A department of the Turkcell Group, as group head.

He ran landmark IPOs out of Türkiye as project manager for Turkcell, Sabancı Holding, Sasa, Vestel, Baticim, Penguen,  Tekfen Holding. He has overseen privatisation projects, such as that of Turkish Airlines, Tupras Refineries and other institutions. as lead manager/advisor or global co-ordinator in the institutions he worked for.

For over a decade, Öney acted as a project manager, project engineer, and advisor in the oil and gas and chemicals sectors with clients including P&G, Fluor Daniel, Turkish Petroleum, and Genel Energy.

Barış Öney holds a MSc degree from the University of Texas, Austin, as a Fulbright scholar. He has also earned a BSc degree from the Middle East Technical University and a Corporate Finance Diploma from the Institute of Chartered Accountants in England & Wales (ICAEW).

Öney has served as a board or an executive committee member in leading business organisations, such as DEİK/TAIK, TUSİAD, TUBİSAD, Endeavor and KİD. He continues to be in the relevant working committees and ad hoc brainstorming groups of these organisations. From time-to-time, he steps in as the nominee director for EBRD in its portfolio of companies, as well as sitting on the executive and advisory boards and investment committees of numerous companies and private equity funds — in Türkiye and abroad.

Öney is also GPCA’s CEE Leadership Council member and the Türkiye Country Representative. He is the founding and advisory board member of the Women in Technology Association.


Hands-on, Dedicated to Excellence, Driven by Inclusion and Diversity: Meet the Head of Scottish Friendly

This CEO is fulfilling the aspiration for his mutual to become a leader in the UK insurance sector.

[caption id="attachment_26920" align="aligncenter" width="900"] CEO: Stephen McGee[/caption]

Scottish Friendly chief executive Stephen McGee’s ambition is “to create a world-class working environment” — one which is open, inclusive, collegiate, and productive.

“Scottish Friendly can serve its purpose by helping individuals and families achieve financial wellbeing through friendly products and customer care,” he says.

He was appointed to the Scottish Friendly Board in September 2021. Under his direction, Scottish Friendly has invested in its people, as well as optimising the customer experience. It targets growth and drives efficiencies that will add value for members. Its key mottos tell a story in themselves:

“We’re in this together”, “We care about our customers”, “We keep moving forward”.

The mutual’s unwavering commitment to its customers is the driving force, going the extra mile to exceed even the highest expectations. For McGee, it’s about more than that. “Scottish Friendly is dedicated to creating a workplace where every individual is valued for their unique strengths and perspectives,” he says, “whether that’s in their current functions or venturing into new roles across the organisation.”

McGee is dedicated to creating a culture of continual learning, and believes the best way ahead is to listen to colleagues, take on feedback, and implement improvements. He helped to introduce the UK’s Best 100 Companies survey as part of this strategy.

Stephen McGee is an advocate for inclusion and diversity, and supports a number of local charitable initiatives. He is a member of the risk, nomination, and investment committees. He is also director of Scottish Friendly Assurance Society Ltd’s subsidiaries: Scottish Friendly Asset Managers Ltd, Scottish Friendly Insurance Services Ltd, SFIS (Nominees) Ltd, M&GM Assurance (Trustees) Ltd, and SF Pension Managers & Trustees Ltd in April 2022. He was appointed CEO of Scottish Friendly in April 2022.

Stephen McGee is a fellow of the Institute and Faculty of Actuaries and has previously held CFO, chief actuary, and board roles in the sector. i


Samarkand: History, Culture, and the Jewel of the ‘New Uzbekistan’

CFI.co in conversation with Uzbekistan entrepreneur and philanthropist Bakhtiyor Fazilov, who sees rich promise in tourism.

A fresh and progressive government, led by President Shavkat Mirziyoyev, is forging ahead with the development of a “new Uzbekistan”.

[caption id="attachment_26923" align="aligncenter" width="900"] Bakhtiyor Fazilov[/caption]

Just eight years after the country's new administration came to power, five-star tourist facilities, 21st Century infrastructure, and sparkling new business developments have begun to emerge. More state-of-the-art construction is under way, as is the development of yet more modern facilities. Since 2022, some $1bn has been invested in new infrastructure projects in Samarkand.

Uzbekistan entrepreneur, investor, and philanthropist Bakhtiyor Fazilov is heading major investments, domestically and internationally. He began his career with an import-export business for leather and food products. His focus now extends to include the International Oil Field Services group and Uzbekistan’s largest construction company, Enter Engineering.

Also benefiting from Fazilov’s expertise are Silk Road Samarkand, a world-class, multi-purpose resort, and the state-of-the-art Samarkand International Airport. And that’s not all: he is also involved with the agriculture and farming sectors, aviation, banking, construction and engineering, digital services and technology, hospitality, leisure, logistics terminals, mining, oil and gas, renewable energy, and steel production.

In his home city of Samarkand, an ancient and mythical metropolis on the famed Silk Road, a major tourism drive is under way. Here Fazilov talks to CFI Magazine about the city’s transformation — and the investment opportunities being unlocked.

CFI.co: You made your money in the energy sector. Why now tourism?

Bakhtiyor Fazilov: As you say, I’ve been involved in energy projects, as well as construction, via Enter Engineering, which is one of the largest EPC contractors in Central Asia. Our construction skills have been at the core of our push to develop tourism, especially in Samarkand.

I’ve been investing in the construction of some of the largest facilities in Uzbekistan: Samarkand International Airport, a first-ever joint public-private investment initiative in this region, and the Silk Road Samarkand tourist complex. It’s the country’s first multi-function centre, covering 260 hectares, with eight hotels, an international congress centre, expo centre, parks, sports arenas and more.

Our city of historical sites has become a city of forums, too, from economic to environmental. Major investors in the UAE, Saudi Arabia, and Türkiye are following this path, diversifying their activities in tourism. For investors, I believe we offer a better opportunity. We’re surrounded by large nations with aspirational middle-class populations keen to welcome the outside world.

And Samarkand is a hub, relatively easy to reach by air from China, Türkiye, Western Europe, the UAE, and the rest of the Middle East. It’s attractive not only as a world-famous tourist city, but also as a transport crossroads with enormous potential. The modern infrastructure here provides every opportunity for the development of tourism in various directions, from historical to business.

I have a personal reason for supporting this magical city: I was born and raised here, and I’ve always wanted to share its wonders with the rest of the world.

Tell us more about that…

Samarkand has always been my home, so it’s very special to me. It’s where I my character developed, and my parents still live there. I’m happy that the time has come —with the support from the state — to implement large-scale tourism projects.

Our government has made this possible by introducing policies that encourage tourism, such as visa-free travel for up to 30 days for visitors from 120 countries. Aviation is a centrepiece, with domestic and international airlines now operating within, to, and from Uzbekistan.

Among those international visitors is a growing band of investors, representatives and advisors, attracted by opportunities and tax incentives. What we’ve found is that investors need professional advice as well as financial incentives. This new Uzbekistan of ours is entering into a kind of renaissance, with foreign investment and tertiary education facilities.

Part of this trend has been the founding of Samarkand International University of Technology (SIUT). It’s the city’s first private university and just recently started classes — but 200 first-year students are already enrolled. Once again, there’s a state policy behind this: a presidential decree signed two years ago. We expect the university to move to its new campus — which can cater for 1,200 students — late this year.

This has no direct implication for local tourism, obviously. But it’s a further sign of our openness to the outside world. With 30 faculty members from 15 countries, our students are seeing the world in a different way.

I’m sure that we’re only at the start of the journey, at an early inflection point, from which we expect the tourism sector to grow exponentially. Silk Road Samarkand and the new airport contribute to this.

But more needed to be done — much more — and that is now in hand. Not just hotels, but highly trained, multilingual management and staff to run them, as well as more restaurants, tour guides, better infrastructure, and retail development. Some international multiples are doing well here. Other globally-known retail brands, whether owned or franchised, would be welcome.

This is also part of the tourism boom, although my business initially had no plans for this type of investment. But, as the saying goes, “Never say never.” Analyses of the market, its needs and promising areas, are part of sustainable business. Sustainability makes it possible to implement large-scale projects that expand the country’s capabilities, create jobs for our youth, and provide an opportunity for the whole world to visit our beautiful country and its pearls — like Samarkand.

What I’m suggesting is that over the next five to six years, there will be a growing influx of capital from direct and institutional international investors. They are catching on to Samarkand’s and Uzbekistan’s growth potential.

Won’t this drive up costs for the newcomers… and for you?

These are the market laws, but when calculating costs, I always remember that any project also means jobs, new opportunities for the people of Uzbekistan — especially for the younger generation. My companies employ over 70,000 people. I want all of them to earn more, and live comfortably. This, in turn, is an incentive for the growth of domestic tourism, where people have a chance to relax and make the most of the infrastructure that we’ve already built.

Samarkand was visited by 1.2 million foreign tourists in 2022 — that almost doubled in 2023 — and domestic tourism is growing fast. Samarkand is increasingly visited by our own citizens, from across the country. Taking that into account, there were more than four million visitors to the city last year.

The construction of Silk Road Samarkand features world-class facilities at various price-points. The complex is used by foreign tourists, our compatriots, representatives of global business, and individual travellers.

Developing tourism to meet the most demanding requirements can improve the wellbeing of all. Samarkand has great potential for its residents, which has always been important to me.

What will help it grow further?

I can judge the potential of this ancient city from personal experience. Since opening at the start of 2023 to the present day, Silk Road Samarkand has received tens of thousands of guests from Kazakhstan, Kyrgyzstan, Turkmenistan, Tajikistan, the UAE, Iran, Turkey, Azerbaijan, and more. There’s also been growing interest from Europe, the US, and China.

As we open new air routes, and continue to promote Samarkand, the opportunities are vast. We’re very much at the start of the journey, and many businesses recognise this. Hilton is the first hotel group to put a stake down in our country, and others will soon follow.

We’ve seen tourism-led cities develop around the world over the past two decades — Dubai, Abu Dhabi, Doha. They have demonstrated that with the right infrastructure, accommodation, and associated facilities, success will follow.

With the unique offering of cultural heritage and hospitality that only Samarkand and Uzbekistan can offer, I’m confident that tourism here can, and will, grow  and flourish. Foreign investments will follow.


Biden Exits 2024 Presidential Race, Endorses Kamala Harris

In a surprising turn of events, President Joe Biden has announced that he is dropping out of the 2024 presidential race. This decision comes after mounting pressure from within the Democratic Party and a widely criticised debate performance. Biden has officially endorsed Vice President Kamala Harris as his successor, expressing confidence in her ability to lead the nation.

[caption id="attachment_26926" align="aligncenter" width="900"] President Biden and VP Harris[/caption]

The announcement marks a significant shift in the Democratic landscape. Biden's decision to step down was influenced by growing concerns about his age and recent performance on the campaign trail. Many prominent Democrats had been urging him to reconsider his candidacy to ensure the party's success in the upcoming election.

Kamala Harris, now the presumptive Democratic nominee, has vowed to carry forward the administration's policies while addressing the unique challenges of her campaign. Harris expressed gratitude for Biden's endorsement and emphasised her commitment to earning the trust and support of the American people.

The reaction to Biden's withdrawal has been mixed. Some Democrats believe this move revitalises the party and enhances their chances against the Republican nominee, while others are concerned about Harris's lower polling numbers in key battleground states. Nonetheless, the focus now shifts to Harris as she prepares to lead the Democratic charge in the 2024 election.

Biden's endorsement of Harris underscores his faith in her leadership capabilities and aims to unify the party around a single candidate. This strategic move is expected to consolidate Democratic efforts and resources as they head into a crucial election season.

For more detailed information, you can read the sources here and here.


Solidarity by Name, and by Nature: Shari’ah-Compliant Insurance Group that is Aiming to be Top of the Tree

Solidarity Group Holding, a prominent entity in the Islamic insurance landscape, has continually demonstrated its commitment to enhancing and innovating within the industry, through its operating subsidiaries (together, the “Group”). As a key player headquartered in Bahrain, the Group has expanded its influence across the region, solidifying its reputation through strategic leadership and robust governance. With a business model that seamlessly integrates Islamic principles with modern insurance practices, the Group has carved a niche for itself by offering products that not only comply with Shariah laws but also meet the diverse needs of clients. Its approach to insurance is comprehensive, involving meticulous risk management, ethical investing, and community-focused services which resonate deeply with Solidarity’s target markets. The Group’s strategic proactive initiatives, such as partnerships with technology firms to improve client service and operational efficiency, underscore its forward-thinking ethos. Furthermore, Solidarity’s dedication to corporate social responsibility is evident in its numerous outreach programmes that support various social causes, enhancing corporate image and stakeholder trust. The Group is financially robust, showing resilience and growth in competitive markets. Solidarity’s adept handling of market challenges and its continuous pursuit of excellence in service and product offerings are hallmarks that distinguish it in a complex industry landscape. Effective leadership strategies are evident as is the positive customer feedback. All aligns with its mission to lead and innovate responsibly in Islamic insurance. The CFI.co Judging Panel congratulates Solidarity Group Holding on the 2024 award for Best Strategic Leadership in Islamic Insurance (MENA).


Norvestor: Leading the Charge in Sustainable Private Equity Transformation

The Green Transition is unstoppable and unavoidable; this Nordic company embraces the challenges.

Private equity firms are crucial to future-proofing SMEs and developing sustainable business models for the worthy Green Transition movement.

[caption id="attachment_26933" align="aligncenter" width="900"] Head of Sustainability: Fredrik Franke[/caption]

Nordic firm Norvestor has proven the worth of its innovative business model, and is turning its full attention to the planet’s urgent needs. Confronted by climate change, biodiversity loss, pollution, and social inequalities, businesses worldwide are increasingly driven to adopt responsible practices.

Private equity firms have an impressive position of influence and play a pivotal role in steering SMEs to greener pastures. Norvestor stands out in this landscape by emphasising sustainability as well as profitability via its partnerships with portfolio companies.

Norvestor has earned an enviable reputation over the past three decades, becoming a trusted partner in the quest for sustainable growth. The firm typically invests in medium-sized companies that leverage digitalisation and technology to enhance efficiency and societal value. With a strategic focus on buy-and-build, digital leadership, and ESG integration, the firm helps companies to scale in the right way.

Financial performance bears out the success of this model. Norvestor Funds have made 93 platform buyouts and some 450 add-on acquisitions, achieving 61 successful exits — including 16 IPOs. The operating profits of portfolio companies have grown by an annual average of around 30 percent. Recent funds have shown strong internal rates of return. The most recent, Norvestor IX, closed at €1.5bn last October, reflecting robust investor confidence.

Sustainability in Action

Norvestor’s 2023 sustainability report highlights how the firm is driving positive environmental impacts.

It invested in Pinja, a digital transformation partner, in 2022. Pinja helps businesses to reduce energy use, minimize raw material demands and waste, and optimize transport options. These industry-specific solutions help clients meet reporting requirements and reduce their carbon footprints.

Bio-energy pioneer company Helen uses Pinja's AI-powered solutions to meet the EU's Renewable Energy Directive III standards. Another company, Fresh Servant, employs AI to enhance material and energy efficiency in food production. Pinja's impact underscores the critical role of digitalisation in the field of sustainability.

Colmec, a tyre service provider for the transport industry, joined Norvestor's portfolio in 2023. Facing up to environmental challenges with ingenuity, Colmec aims to have a leading position in the circular economy by 2027.
The company focuses on retreading tyres, significantly reducing the use of natural resources and cutting CO2 emissions. It sells new tyres and extends their life via retreading — and ultimately recycling end-of-life tyres.

Another Norvestor portfolio company, 4Service, boosts social sustainability by providing meaningful work for people with disabilities. Working via a Norwegian state-run programme, tasks are tailored to individual abilities, enhancing personal growth as well as operational efficiency. Twelve part-time employees have fostered a diverse and inclusive workplace. 4Service is integrating this initiative into broader service offerings.

These efforts substantiate the positive correlation between ESG efforts and financial performance. A PwC survey found that 70 percent of private equity firms place value-creation as a top driver of their ESG activities. Benefits include brand enhancement, risk mitigation, competitive differentiation, and client attraction. Bain & Company research, in partnership with EcoVadis, shows that robust ESG practices lead to improved revenue growth and EBITDA margins. Sustainability measures significantly enhance business outcomes, according to Bain.

Generalist Yet Impactful

Norvestor has proved that innovative generalist private equity can drive substantial positive impact — without the need to become a niche impact fund. Norvestor’s success under a regular fund mandate (Article 8) demonstrates that such gains can be achieved across a broad investment portfolio.

This does not preclude Norvestor from setting up impact funds in the future but highlights the firm’s ability to effectively harness ESG for the greater good. As Fredrik Franke, Norvestor’s head of sustainability, states, "As we prepare our portfolio companies for upcoming ESG regulations, our focus is on future-proofing business models for a low-carbon and equitable economy."

“We support our portfolio companies in navigating ESG challenges and seizing opportunities. By doing so, we not only enhance their resilience but also create long-term value for stakeholders.”

The vital role sustainability leaders play in private equity is more evident than ever in 2024. Companies that embrace this path are better positioned to thrive in a rapidly evolving regulatory landscape and meet the growing demands of conscious consumers and investors. Norvestor's strategic investments and partnerships prove that private companies can be at the forefront of the move to a greener future.

Norvestor's success stories nicely illustrate how targeted investments and strategic guidance can transform companies. Private equity firms like Norvestor will continue to be pivotal in shaping an equitable business environment.

Norvestor's commitment to sustainability — along with its innovative partnership model — serves as a blueprint for private equity as a driver of the green transition. By future-proofing SMEs and fostering sustainable business practices, Norvestor makes a significant contribution to the global sustainability agenda.


Paris-based Powerhouse Île-de-France: Leading the Way for Local Authorities

The region’s president, Valérie Pécresse, is gunning for nothing less than 100 percent when it comes to sustainable debt.

Île-de-France Region is one of Europe's leading local authorities, powered by economic dynamism and innovation.

[caption id="attachment_26952" align="aligncenter" width="900"] President: Valérie Pécresse[/caption]

With a GDP of €764bn in 2023, the Parisien region is a major economic and financial centre, boasting Europe’s highest concentration of head offices of the world's 500 largest companies.

For the past 12 years, the region has been focused on developing green and responsible finance for the benefit of its 12 million inhabitants. That comes via transport infrastructure, education facilities, and vocational training. The regional council, with a total of 10,300 staff members, is structured around 209 elected representatives, presided over since 2015 by Valérie Pécresse.

[caption id="attachment_26955" align="aligncenter" width="900"] Team: Manuel Thomas, Loanah Derue, Paul Berard, Franck Lavergne.[/caption]

Since 2012, green financing has enabled the development of around 150 projects worth €6.5bn. Île-de-France is a leading presence in the field, committed to environmentally and socially responsible investment.

This focus is reinforced by the pursuit of innovative, responsible finance solutions. Île-de-France Region plays a central role in promoting and harmonising sustainable practices across Europe, and is lead partner of the European Interreg GreenGov programme.

The overriding goal is to do no harm, and the programme aims to better that by improving the governance and financing of socially responsible investments.

A four-year inter-regional consultation will enable European regions to share knowledge on supranational regulations and, ultimately, ensure their local implementation. Two main systems are concerned: the DNSH of the European green taxonomy, already integrated into the region’s transport sector, and climate-proofing, which promotes and enhances infrastructure resilience.

[caption id="attachment_26953" align="aligncenter" width="900"] High school project funded by regional sustainable issuance – Louise Michel and Langevin-Wallon (Champigny-sur-Marne).[/caption]

“I am convinced that Île-de-France’s extraordinary success is due to the solid green, social and sustainable bond framework,” says Pécresse, “and our clear annual reports detailing the allocation and impacts of our socially responsible investments.”

The region’s strong financial ratios, with a projected debt-repayment ratio of six years and a gross savings forecast of 26 percent, reflect prudent financial management.

In January 2024, Île-de-France Region carried out its largest-ever bond issue, for €800m – under its green, social and sustainable framework, bien sur. With a yield of 3.2 percent over a 10-year maturity, this transaction underscores the region financial strength.

In 2023, 91 percent of the region's outstanding debt was sustainable. “The objective, before the end of my mandate,” says Pécresse, “is a 100 percent sustainable debt.”

As the next step, Île-de-France Region, in collaboration with an auditing firm, produced an ex-post impact report to assess the medium- and long-term effects of regional investments. The report enabled a new practice to be adopted by all issuers in the interests of transparency – and deliver positive results in the fight against climate change.

“Now, more than ever, is the time to evaluate public policies,” says Pécresse. “The region has a large scope of sustainable development responsibilities, as you can see in our bond issuance reporting.”

The allocation of the 2022 sustainable issue (most recent report - illustration below).

[caption id="attachment_26954" align="aligncenter" width="900"] Development of the Île-de-France region's outstanding green and responsible debt.[/caption]

The 2023 sustainable bond reporting will be published before the end of this year.

This high school project (bottom left illustration) aims to improve the quality of existing infrastructure and equipment for secondary education. It adheres to the highest standards of energy efficiency, reducing the environmental footprint, improving water-management, landscaping, and interior air quality.

The visual and acoustic comfort of users was improved by modelling of lighting and noise levels based on the materials used.

See for more information on how loans are used.


Friendly by Name, Supportive and Creative by Nature: This Mutual is True to its Mission and Core Values

Scottish Friendly’s commitment remains firmly on helping its customers achieve optimal financial outcomes.

Scottish Friendly remains resolute in its commitment to serving and supporting its customers and their families, whatever the future holds. The organisations status as a mutual means that it is not driven by the needs of shareholders. Instead, they are focused on distributing profits to enhance the investment return of With-Profits policies, or to invest in generating future profits for their members. They firmly understand that their customers live busy lives, and they are doing the very best they can for their families. As a mutual, Scottish Friendly are here for them, delivering its purpose to help individuals and their families achieve financial wellbeing through friendly products and customer care.

During 2022, Scottish Friendly colleagues developed and launched a refreshed purpose statement. Scottish Friendly prides itself on providing products and services that cater for everyone, regardless of age, income, or of any previous financial experience. The purpose reflects the important role Scottish Friendly recognises it can play in the lives of UK households and encapsulates the passion and energy that colleagues bring to their work on a daily basis.

As a mutual, they care about helping local communities. They have increased their support for Action for Children and are providing vital funding for two Wellbeing Practitioner roles. These roles help improve the mental health and wellbeing of children in secondary schools in some of the most deprived areas in Glasgow. This targeted support aims to help young people manage and improve their mental health and wellbeing, as well as provide them with coping strategies and resilience for the future. In supporting the funding of the Wellbeing Practitioner roles, Scottish Friendly hope that they can improve the lives and outlook of young people in need, which can benefit the family unit and, in turn, help the wider community prosper.

[caption id="attachment_26960" align="aligncenter" width="900"] Scottish Friendly Children's Book Tour March 2024[/caption]

The mutual is also delighted to continue to support the Scottish Friendly Children’s Book Tour in partnership with Scottish Book Trust. For over 25 years, the Scottish Friendly Children’s Book Tour has supported Scottish Book Trust on their mission to help improve children’s literacy. Touring throughout Scotland, both face to face in primary and secondary schools, as well as virtually, the programme visits a vast range of communities, including remote areas with top authors and illustrators to help encourage a love for reading, writing and illustration.

Scottish Friendly has an ambition to be an excellent place to work and have again taken part in the ‘UK’s Best 100 Companies’ 2024 Survey. Scottish Friendly is proud to have been awarded ‘Very Good Company to Work For’ status. They now also hold position 31 in the ‘Top 50 Best Companies to Work for in Scotland’ and are ranked one of the ‘Top 50 Best Companies to Work For In the Financial Services Sector’. Their people work tirelessly to drive Scottish Friendly forward. In turn, Scottish Friendly is working tirelessly to continue to improve and become an excellent place to work.

[caption id="attachment_26961" align="aligncenter" width="900"] 2022-23 Apprentices[/caption]

Scottish Friendly has continued the development of its very successful early careers programme, which began in 2022 and recruits interns, apprentices, and graduates. The 2022 apprentices completed their programme in 2023, each gaining permanent roles within Scottish Friendly. This has a particular focus on trying to recruit young people from backgrounds that would not typically be drawn to financial services and has been supported by the Robertson Trust in filling placements that have turned into permanent roles. Through this partnership with ‘Developing The Young Workforce’, Scottish Friendly has been supporting Bannerman High School in Glasgow and has supported development initiatives with their students, including visits to the Scottish Friendly head office. In 2024, they continue to further support the students with mentoring, CV writing and will hire a new cohort of apprentices to continue this vitally important initiative.

Scottish Friendly reviewed its corporate strategy which confirmed the Boards confidence in its existing strategy. Additionally, this review helped to sharpen its focus going forward and helped identify where to build on existing strengths as they seek to further support its customers with a more comprehensive range of savings, investments, protection, and retirement solutions. Key to this is continuing to invest in improving the customer experience, providing career development opportunities for colleagues, and targeting further growth in new customers and the products and services they offer.

[caption id="attachment_26962" align="aligncenter" width="683"] Scottish Friendly Children's Book Tour 2023[/caption]

The encouraging headlines pointing to cost-of-living pressures finally starting to ease should not obscure the fact that persistent economic headwinds have taken a toll on many UK household budgets and their ability to save, invest and protect themselves and their loved ones.

Looking ahead Scottish Friendly is confident that they will be resilient in the face of continued economic uncertainty and that the mutual model will continue to serve its customers’ interests well. Scottish Friendly’s commitment remains firmly on helping customers achieve the best possible financial outcomes. Scottish Friendly has an exciting future ahead thanks to the refreshed strategy and the unwavering commitment of colleagues to deliver for customers and the communities that they serve.


Sustainable Development A Legacy of Innovation: CZFS's 50-Year Milestone

Under the dynamic leadership of Miguel Lama, a visionary entrepreneur, Santiago is poised to become an international investment destination.

The Latin American firm, known as the Santiago Free Trade Zone Corporation (referred to as CZFS by its Spanish acronym), has refined its business model to coincide with a significant milestone: celebrating its 50th year of operations.

Throughout its first half-century, CZFS has cultivated a business and industrial ecosystem in Santiago de los Caballeros, Dominican Republic, emphasizing competitiveness, profitability, and a people-centric approach.

Managing an industrial park at full capacity is possible thanks to outstanding infrastructure focused on environmental sustainability. The corporation functions via a productive system of innovative production methods and industry specialization. Every development initiative in the city of Santiago – and the surrounding region – has been boosted by the economic and social programs promoted by the corporation.

It offers employment and recruitment-service units through CEGESTA, quality health care through MÉDICA, specialized education for the industry via CAPEX, and promotes a solidary economy with Cooperativa La Aurora; providing its members with financial services and education on how to manage their finances. It also boasts one of the largest solar panel farms in the region and has provided a firefighting substation and other public services.

The robust RSC plan features programs in health and wellness, environment, education, and entrepreneurship. “Progressive education has been a genuine commitment by our staff,” says founder and president Miguel Lama. “This allows us to move on to a second step: fostering a culture of ongoing progress and constant change to meet and adapt to increasingly sophisticated production styles."

The CZFS was founded in 1974, as a successful pioneer of public-private management, whose mission is to create and attract investments that generate jobs and potential economic and social development for the city of Santiago and the Northern Region.

The CZFS owns and manages the Víctor Espaillat Mera Industrial Park (PIVEM), one of the pioneers in the country and vastest free zone park in the country. Most of the origin of these investments corresponds to the United States, with a share of 65 percent over more than 80 companies installed, with a current population that already exceeds 22,000 people.

All this has provided the company with a sound and solid base to comfortably continue its expansion over the next 50 years.

CZFS highlights the specific benefits of Santiago as a Lat-Am investment hub, from the design of the first Smart City in the Dominican Republic to the free-trade zones model developed locally.

“We’re shaping the integration process of issues such as attracting talent and high-level professionals,” says Lama.

“The design of an urban system is in line with the expectations of professionals and investors for the next three decades. This new design harmonizes housing, environmental and recreational quality, with a modern offer of health, multilingual, technical, and specialised education.”

All this aligns with the introduction of electronics, robotics, digitalization, chemical research, and industry investments.

Santiago Business Model

Evolving from traditional low-cost, light manufacturing to advanced assembly and development processes is seen as the way ahead for the next decade.

The Corporation is placing Santiago on the radar of new international investors and turning the city into the business hub for the Americas. The aim is to become the primary destination for manufacturing advanced technical goods such as microchips.

Economic Trends

Over the years, CZFS has shown flexibility while maintaining its mission and core values. Innovation has become part of its corporate DNA, allowing it to adjust to economic and global shifts with agility and efficiency.

“Our 50 years of experience and adaptation are tested by our firm decision to take a quantum leap,” says Lama, “taking professionals, companies, and the city to an unprecedented level. This is not a simple process of organic growth. Santiago and the country must accelerate, to seize this great moment provided by a national and international favourable political and economic environment.”

Entrepreneurs, professionals, workers, politicians, and citizens “must play their part in upholding this commitment,” he says, “especially when they compare us with other economies that in recent years have been diminished due to threats to their democracies, and political, social and economic difficulties that have impoverished their countries”.

Lama, president of the Board of Directors of the CZFS, says there are plans to create an investment centre “of international reference in competitiveness, profitability, and technology transfer”. This, he adds, is based on “a culture of innovation and the respect for human values".
The Víctor Espaillat Mera Industrial Park has developed flexible, environmentally friendly buildings to meet the demands of an evolving and technologically demanding industry.

[caption id="attachment_26969" align="aligncenter" width="900"] President: Miguel Lama[/caption]

The Man at the Top

Miguel Lama has an extensive record of community involvement, participating in social, educational, and environmental support organizations and in development and business institutions such as the American Chamber of Commerce of the Dominican Republic.

He is a member of the Board of Directors of the ISA University, the Association for Development (APEDI), Banfondesa, Grupo M (CODEVI), UNO Call Center, the National Free Zone Council (CNZFE), and Plan Sierra, Metropolitan Hospital of Santiago (HOMS).

He was the founder and the first president of the Strategic Development Council of the City of Santiago (CDES), preparing the Strategic Plan of Santiago. He was appointed as president of the Chamber of Commerce and Production of Santiago. Since 2010 he has been president of CZFS.


Banco Azteca: Pillar of Financial Inclusion and Innovation in Mexico

A bank that’s about people, as well as profit…

Banco Azteca, a key component of Grupo Salinas, has established itself as a major player in Mexico's financial sector.

[caption id="attachment_26973" align="aligncenter" width="900"] Banco Azteca[/caption]

Formed in 2002 with a mission to provide financial services to underserved populations, the bank has played a pivotal role in promoting financial inclusion and economic development across the country.

Banco Azteca's strategy revolves around accessibility, offering financial products that meet the needs of low-income individuals and small businesses. This approach has resulted in a customer base millions-strong.

A 2009 World Bank study noted the economic impact of Banco Azteca's rapid expansion. The simultaneous opening of some 800 branches in 2002 led to a 7.6 percent increase in the number of informal business owners. Total employment rose by 1.4 percent, and average income by about seven percent. This immediate access to financial services fostered entrepreneurial activity and boosted local economies.

Digital Expansion

Banco Azteca boasts largest private branch network in Mexico — more than 2,000 nationwide. This is complemented by a robust digital strategy. The bank’s mobile app, launched in 2018 has a user-friendly interface and features include applications for loans and investment options.

Banco Azteca offers financial products aimed at specific segments of the population, such as women and migrants. These include savings accounts, personal loans, and microcredits. The focus on accessible services has been a significant factor in its ability to serve low-income individuals and small businesses.

Financial Education

Financial inclusion is linked to financial education. Banco Azteca runs workshops and seminars on financial management, savings, and investment. These programmes have proven crucial in helping customers make informed financial decisions.

Social Responsibility

Banco Azteca supports various social initiatives focused on health, education, and environmental sustainability. One example is its sponsorship of the Mexican Olympic Committee. It’s also involved in cultural initiatives under the Art for Everyone (Arte para Todos) banner, sponsoring events like the BADA Art Fair and Design Week Mexico, promoting the arts and supporting local artists.

The bank has invested in IT and cybersecurity measures and is exploring emerging technologies such as AI for product offerings and operational processes.

Financial Performance

Banco Azteca has a strong market position thanks to its efficient business model, with a focus on cost management and revenue diversification. It has achieved significant growth in its loan portfolio, customer deposits, and overall market share.

The bank plans to expand its digital offerings to enhance customer experience and operational efficiency. Its commitment to financial inclusion aims to reach more underserved communities and introduce products that address emerging customer needs.

With its extensive branch network, innovative product offerings and digital strategy, Banco Azteca has a crucial role to play for SMEs and individuals.

Banco Azteca continues to evolve, but remains steadfast in its mission to provide financial inclusion.


ARTICO Equity Team at Serafin Asset Management: Sustainable Investing Will Work — If the Performance is Right

Sustainability and ESG criteria have taken on new importance in the world of finance — but the ARTICO Equity Team at Serafin Asset Management has been ahead of that curve for some time.

[caption id="attachment_26985" align="aligncenter" width="900"] Dr Gabriel Herrera: Senior Partner of the ARTICO Equity Team at Serafin Asset Management[/caption]

Its corporate philosophy is that investments should do more than achieve financial ambitions. They should be designed in such a way that they will have a demonstrable, positive impact on society.

The Equity Team makes that happen with the systematic combination of traditional investment criteria and sustainability and decarbonisation objectives.

CFI.co: Could you start by explaining what Paris-aligned investment products are?

Gabriel Herrera: Certainly. They feature an approach in-line with the goals of the Paris Climate Agreement. Investments are selected using environmental criteria: current CO2 emissions, and their targeted reduction, contribute to limiting global warming. The portfolio will be continuously decarbonised over coming years.

What made you decide to integrate ESG and decarbonisation?

The ARTICO Equity Team started in 2011. At that time, we had made no connection to decarbonisation. We were convinced that systematically investing in fundamentally “good” companies — that is, companies that were not over-valued, showed rapid growth and profitability, with healthy balance sheets — would probably perform well.

And that has proved to be true over the past 13 years. We added sustainability criteria in 2017, and supplemented that with an explicit decarbonisation strategy in 2021. It was important to us not to lose sight of the fundamental quality of the companies we invest in in the pursuit of sustainability and decarbonisation.

Does your investment strategy have direct positive impacts? Does it effect positive change?

Our investments are exclusively in listed companies, so the direct impact there is limited. Nevertheless, we daily see impacts triggered by the trend towards sustainability and decarbonisation. Hardly any listed company in 2024 can afford to ignore these issues; it would be penalised by the stock market. With our investment approach, we are doing our part to ensure that the economy is continuously decarbonised and made more sustainable — while remaining successful.

Good companies are characterised not only by their fundamental qualities, but also by their efforts as pioneers in the areas of sustainability and decarbonisation. We believe that’s a good indication of whether a company is in good hands. It optimally complements our fundamental stock selection, and it’s central to all ARTICO strategies.

What sets ARTICO funds apart from other investment-product providers with a sustainable background?

Many focus too strongly on the so-called "ESG leaders", or on certain niche strategies. We believe that a one-dimensional approach is dangerous from an investment perspective.

Firstly, the sustainability and decarbonisation data themselves involve assumptions and uncertainties, making them unsuitable as sole investment criteria. Secondly, such approaches tend to neglect other fundamental factors important for performance. We’re the first active manager to combine all three objectives in one portfolio: classic, fundamental investment criteria applied as they should be by competent financial analysts. We complement that with clear sustainability and climate targets.

How do you see the interplay between responsible investing and performance?

Sustainable investing can only work if the financial returns are right. Why would an investor interested in achieving sustainability choose to sacrifice performance? Investors, first and foremost, want to achieve an attractive target return. Our approach allows us to do that while consistently pursuing sustainability and decarbonisation goals.

Do sustainable investments really matter in the fight against climate change and the battle for social justice?

It’s very important, and it’s already having a major impact. Major companies have been paying attention to these issues in recent years so as not to lose favour with investors. It's not the individual investment that makes a difference or saves the world — it’s the change in behaviour at listed companies. Every investor, large or small, can make their own contribution.

How do you see the future for ESG integration and impact investing?

The world is constantly changing, but regulatory requirements, databases and political discussions will remain dynamic. In some American states, pension funds that make sustainable investments at the expense of investment performance are banned. I have a lot of sympathy for that.

But sustainability and decarbonisation are long-term trends; they’re here to stay. Investors need to find a way to achieve their goals and contribute to environmental and social protection. ARTICO funds offer a solution. i

About Serafin Asset Management

The family-owned company Serafin Asset Management Holding GmbH was founded in 2021 by Philipp Haindl and Silvio Halsig. The Serafin Asset Management Group, with offices in Germany and Switzerland, manages assets of around 800 million euros (as at March 31, 2024).

Serafin Asset Management GmbH is headquartered in Frankfurt am Main/Germany and brings together experts from the financial and tech sectors. The BaFin-regulated securities company offers specialized investment solutions for different market cycles that enable additional resilience and growth.

Serafin Asset Management AG, headquartered in Zug/Switzerland, has been managing investment funds since 2004. The investment focus of the funds is on the investment themes "Equity", "Equity Alternatives" and "Macro". Serafin Asset Management AG has 21 employees, including 11 portfolio managers and analysts, is licensed by FINMA as a "manager of collective assets" and has branches in Lugano, Nyon, and Zurich.


It’s Not All in the Mind — but Is It About the Sex and Gender, too?

Group upgrades its efforts to study the role that gender plays in women’s mental and physical health.

When the Women’s Brain Project transformed into the Women’s Brain Foundation in March, it morphed from its seven-year provisional status into the permanent structure it was always meant to be.

[caption id="attachment_27001" align="aligncenter" width="900"] WBF CEO & Co-Founder: Dr Antonella Santuccione Chadha[/caption]

The WBF has expanded its outreach by creating new programmes, spreading its message via mixed media and conferences and publishing in a host of peer-reviewed journals.

The foundation’s mission is to advance research that focuses on how sex and gender factors into women's health. It provides an opportunity to redesign research, medicine and the healthcare system — with women in mind. The goal is to grow into a  research institute that will nurture  sex- and gender-based personalised therapies for all while incubating start up and innovation creating a dedicated fund for women’s health and brain health.

With fewer than 40 people — virtually all volunteers — the WBF has taken great strides recently.

In May, it launched a global fund-raising effort, the Women's Quota Campaign. The WBF is bringing attention to the unfortunate majority status of women with regard to neurologic and mental disease. The tag line is “Women don’t deserve this majority”; it highlights conditions, such as Alzheimer’s, MS, depression, anxiety, and migraine, that affect women more than men.

The funds will help into continuing  their independent research . The public awareness initiative was created, pro bono, by Ogilvy Switzerland, and launched in Zurich.

Immediate goals are to shed light on women's unmet medical needs and close the brain-research gender gap. The campaign has been translated into English, German, French, Italian, and Spanish, and the results will be discussed at the World Economic Forum 2025.

The WBF continues to spread its message in peer-reviewed journals. In March, WBF contributed an opinion article in Frontiers Global Women's Health  on the impact of informant-related characteristics on assessment of Alzheimer's symptoms and severity. Experts recommend a multifaceted approach that integrates patient performance, caregiver information and self-reported data to properly assess patients with neurodegenerative diseases.

In April, the WBF and its fellow members of the advocacy consortium OneNeurology published national awareness campaigns for achieving global brain health in The Lancet Global Health. OneNeurology stresses urgent acceleration of the World Health Organisation’s plan to unite governmental policies and programmes that address epilepsy and other neurologic disorders.

In May, as part of the 16th ACM Web Science Conference, the WBF and others published Abortion and Miscarriage on Twitter: Sentiment and Polarity Analysis from a gendered perspective.

The WBF contributed editing support to a book, Innovating Health Against Future Pandemics (Elsevier 2024). It covers the key aspects which drive heterogeneity in an individual's response to Covid-19, including age, sex, genetic make-up, immune responses, comorbidities, and viral strains/loads.

WBF cofounder Antonella Santuccione Chadha received an Empowering Women Award for 2024. Of the 300 nominees, the league recognized Chadha’s pioneering efforts in gender medicine.

Chadha spoke in Amsterdam at HLTH Europe on redesigning healthcare with women in mind. The all-female panel included the gynaecologist Dame Lesley Regan, DBE, Imperial College London, and Paula Bellostas, from the global management consulting firm Kearney.


Raiffeisen Certificates: Investing in Capital Markets — with Protection

No one wants unnecessary risk — least of all Austrians, who traditionally display caution when investing in capital markets…

Raiffeisen Certificates is the Austrian certificate provider of Raiffeisen Bank International, which has been at home in German-speaking countries as well as in many Central and Eastern European markets for decades.

The product range comprises 7,000 investment and leverage products for investors with different approaches to investment horizon, payment rhythm, investment amount, and risk tolerance — meaning that almost every target group can find a suitable investment product.

Conservative private investors in particular will find what they are looking for. Capital and partial-protection certificates are popular in Austria, and make it possible to invest securely in capital markets — and benefit from rising and sideways-moving markets. Certificates minimise risks for investors perspective by diversifying underlying assets and the payout profiles.

Security and risk minimisation are important for Austrian investors. Surveys have shown that a large proportion of the population avoids risk. But, as they say, you have to be in it to win it. If someone does not invest in capital markets at all, they are forgoing an opportunity.

Statistical data collected by Raiffeisen Research showed that the performance from the investment of private household assets in the period from 2013 to 2022 amounted to just 1.7 percent annually. Taking inflation rates into account, the real value is negative (- 0.6 percent). Austria performs poorly in an international comparison. In a ranking of 11 Western European countries, the "country of savers" is in last place in terms of investment results.

A survey conducted by market research institute Appinio provide similar insights. Six of 10 respondents expressed concerns about possible financial losses on the capital markets. When asked what characteristics investment products should have, "low risk" was mentioned most frequently (43 percent). More than one in five respondents (22 percent) want products with capital protection.

This is precisely where Raiffeisen Certificates come in. Heike Arbter, Head of Raiffeisen Certificates, says customers expect solid returns with simultaneous protection. “And that’s exactly what we offer them. Capital protection and partial protection certificates make it possible.”

Private investors are increasingly recognising these advantages, as demonstrated by growing volumes. The certificate market in Austria is experiencing an all-time high with a volume of 15.3 billion (April 2024). Growth compared to the previous year is 6.3 percent. The volume of Raiffeisen Certificates has even risen by an impressive 25.6 percent over the past 12 months.

Clear communication with customers is another vital issue. Only those who feel competent and confident are prepared to invest in capital markets. “This is why the Raiffeisen Certificates team is constantly implementing initiatives to improve financial education,” says Arbter. “These include live webinars, training courses for sales partners.”

The future looks bright for Raiffeisen Bank International. Interest in the certificate market is likely to increase, and volumes should grow in tandem. Certificates are increasingly popular as an interesting alternative, or supplement, to direct equity investments.

More information: https://www.raiffeisenzertifikate.at/en/what-are-certificates/know-how/


Heike Arbter: Finding the Right Talent — and Retaining It

CFI.co in conversation with Heike Arbter, head of Raiffeisen Certificates.

Raiffeisen Certificates is a leading Austrian certificates provider in the DACH region, as well as in Central and Eastern European markets.

[caption id="attachment_27010" align="aligncenter" width="900"] Head of Raiffeisen Certificates: Heike Arbter[/caption]

It has been around for more than a quarter of a century, with a product range that comprises 7,000 investment and leverage products.

CFI.co: What excites you about the business world in general?

Heike Arbter: I have been working for Raiffeisen Certificates (formerly Raiffeisen Centrobank) for more than 25 years now. I contribute my enthusiasm for capital markets and structured products. It’s important to me to familiarise people with the advantages and opportunities of the capital markets. We offer customers the opportunity to invest in underlying assets, such as share indices, with capital protection. This is interesting for newcomers as well as for conservative investors — who are very present in Austria.

What lessons did you learn from your earlier professional experience?

You could sum it up with the motto "lifelong learning". Above all, we learn from our customers' feedback. In recent years, we have seen how important our products with protection mechanisms are for investors. During the many volatile phases on the stock markets, certificate investors with capital protection products have always been able to sleep well. It’s a pleasure for me to see how our products and information service are welcomed by our customers.

What motivates you about the company you now lead?

The successes of our Raiffeisen Certificates team are impressive. We were recently voted the best provider in Austria by an independent jury at the Certificates Awards — for the 18th consecutive time. We’re pleased about the growing interest in us by customers, and by our continuous growth. Another point of satisfaction is our strong positioning in Central and Eastern Europe, where we are able to respond to the needs of local markets in a targeted manner.

What is special about your organisation's management style?

It’s important to me that I can rely on a great team. We work hard to equate market developments with customer needs, and respond with innovation and suitable products. I think it makes sense for the whole team to set realistic, but ambitious, goals, and work to achieve them.

What are the key strengths of the team you lead? How important is your support team?

In Austria, there is a common saying: "Success has many fathers." Our diverse team has many different skills, specialisations and deep expertise. Certainly a “father” of our successes.

What are the key traits of a good manager in a company?

Our people are our most important asset. A manager must always realise this. Those who listen to employees, respond to them, and allocate tasks that allow them to grow, will be successful. An important goal is to retain talent for the long term.

Do these criteria change when applied to your specific industry?

The requirements for managers are similar in all sectors. However, there are differences when it comes to products, product development, and dealing with customers. For financial service providers, it’s important to build trust with customers and other stakeholders.

Expertise, consistency, reliability, and a clear vision are always an advantage. To realise this long-term approach and reliability, we enter into long-term partnerships with our employees. We don’t believe in a "hire and fire" policy.