Nanopool: NP Liquid Glass Coating - A Game Changer

Dieter Schwindt: Coatings That Help Humanity

The world is filled with wonder. However, it often lacks people who recognise the potential hidden in ordinary phenomena that to most observers seem rather unremarkable. When such a crucial event meets the eye of a visionary, a big story may develop.

This is what happened in 2001 when Dieter Schwindt noted how water droplets rolled over porous stone without penetrating its surface – and started wondering. Schwindt not only asked the right question; he also realised that the answer held the key to great opportunity.

Pondering the question and turning to research for the answer, Schwindt’s observation provided the foundation for a company that has gained global recognition for its ultra-thin coatings. Based on silicon dioxide (SiO2) extracted from quartz sands, these surface finishing products are environmentally friendly and repel both dirt and microorganisms such as bacteria, viruses, and algae, amongst others.

[caption id="attachment_16609" align="aligncenter" width="1000"] Photo by Raphael Maas[/caption]

To this day, Nanopool, the company founded by Dieter Schwindt, is run as an independent family business. The second generation now in charge adheres to the founder’s philosophy: quality above all.

Managing Director Sascha Schwindt brims with energy as he explains that the company seeks to do its bit – and more – towards tackling contemporary societal challenges such as reducing greenhouse gas emissions, saving scarce water, and helping protect against viruses – and pandemics. “The lines of communication between management and employees are short as can be expected in a family setting. This allows us to respond quickly, flexibly, and decisively to any demand or change in market dynamics.”

"Decentralised and with low manufacturing costs, any bespoke solution can be easily implemented to meet any of mankind’s challenges."

Sascha Schwindt adds that speed and flexibility do not detract from quality. The Schwindt family has invested considerably in interdisciplinary research, and initiated numerous clinical studies, to ensure the safety of the company’s products. After twenty years in the business, founder Dieter Schwindt still gets excited when given a chance to explain his personal drive: “For us, the focus is on people and the environment. This is what inspires the Nanopool team to come up with innovations.”

Dieter Schwindt is particularly vexed about the wastage of fresh water: “Just look what happens each and every day when we fill buckets with precious drinking water and then proceed to add detergents, instantly transforming the content into wastewater. Considering what some people in some places need to do in order to access drinking water, our treatment of it constitutes no less than an absurdity.”

Dieter Schwindt has a most remarkable solution: Nanopool’s SiO2 coating which then leads to a state where a damp cloth is enough to clean the surface.

Innovative coatings can also help reduce the accumulation of plastic waste. The company developed a cheap and environmentally harmless coating that gives paper and cardboard strong repellent properties, allowing for a much more widespread use of these biodegradable packaging materials.

To prove his point, Schwindt points to an egg carton coated with the protective NP Liquid Glass his company developed. The ultra-thin layer, invisible to the naked eye, prevents the material from absorbing liquids and odours. Nevertheless, the carton remains fully biodegradable. “Our coating is based on sand which is simply returned to its natural cycle. Now, isn’t that a fantastic innovation?” Dieter Schwindt is, however, quick to attribute Nanopool’s remarkable breakthroughs to the passion and visionary thinking that permeates the family business and its interdisciplinary team of professionals and scientists.

Why are some innovations more relevant than others?

In 2007, at the launch of the first iPhone, Steve Jobs unveiled more than just a new mobile phone: He confronted the industry with a paradigm shift in technology. Until then, the standard of mobile hardware had been miniscule keyboards and tiny mechanical buttons that controlled the functionality of the device’s applications.

The arrival of the touchscreen revolutionised the business. Suddenly, the hardware was unshackled and could now be easily adapted to every conceivable need. Users quickly discovered that their mobile device could help overcome almost any problem, meet any challenge, and answer any question – whatever the issue: there’s an app for that.

Thus, hardware and software became seamlessly integrated to offer users precise functions tailored to their individual requirements, even as those needs change over time – or overnight.

Applying the same technological – and philosophical – flexibility outside the digital realm was long considered a (pipe) dream. But even those dreams sometimes come true as was proved in 2001 by a German family-owned company which developed ‘NP Liquid Glass’, an ultra-thin protective coating that prevents dirt and microorganisms from adhering to a treated surface.

The technology pioneered by this company is based on silicon dioxide SiO2, found in quartz sand. Silicon dioxide-based coatings are not only cost-effective, they are also completely harmless to humans, animals, and the environment.

So, what does all of this have to do with smartphones?

Nanopool Managing Director Sascha Schwindt explains: “Our basic product, or product matrix, is comparable to a smartphone which can, in its default factory state, perform many basic functions such as placing calls, sending text messages, taking pictures, and surf the internet. It is no different with our product matrix which imparts repellent properties to a wide variety of surfaces and protects them naturally against the adhesion of undesirable substances and organisms. This protective layer is 500 times thinner than a single human hair. It may be applied to both organic and inorganic surfaces and does not change their appearance, feel, or breathability.”

Schwindt emphasises that just this basic product matrix can solve an ‘unbelievable’ number of problems with contamination by dirt or microorganisms. To return to the original smartphone analogy: Nanopool’s Liquid Glass can be customised to meet the specific requirements of any industry or sector just as easily as an app can change the functionality of a mobile device. “The possibilities are almost infinite. Decentralised and with low manufacturing costs, any bespoke solution can be easily implemented to meet any of mankind’s challenges,” says Sascha Schwindt.

To combat drug-resistant germs, NP Liquid Glass offers simple and effective protection, even without add-on ingredients. Both the UK’s National Health Service (NHS) and the German ‘Land of Ideas’ initiative have recognised Nanopool’s Liquid Glass as a valuable tool to prevent hospital-acquired infections. Given the acute shortage of antibiotics, the effective prevention of infections has become a top priority for healthcare professionals.

Likewise, NP Liquid Glass offers protection against airborne viruses. Sprayed on surfaces of daily use, like clothing, facemasks, or hands, the solution significantly lowers the adherence of viruses such as the novel coronavirus. With the addition of an active virus-fighting agent – an ‘antiviral app’ – NP Liquid Glass has an even more targeted effect. Inexpensive, easy to apply, and effective, such a coating offers a solution when and where personal protective equipment and disinfectants are unavailable in the quantities required. As such, NP Liquid Glass can easily and cheaply upgrade casual garments to protective clothing.

In places where resources are scarce, the advantages of NP Liquid Glass are high and plentiful. The product may be used to protect crops in an environmentally friendly way. Even without additional active ingredients, the product is already being used to shield crops such as potatoes, tomatoes, cereals, hemp, and grapes. An ultra-thin NP Liquid Glass coating repels fungi, mould, and pests such as mites and lice so that the plant may concentrate all its energy on growing.

By embedding active ‘apps’ such as UV-protection, specific regional challenges may easily be addressed. “The natural protection offered by NP Liquid Glass means that the environment and people benefit equally from improved yields and bountiful harvests.” Sascha Schwindt explains that even larger pests such as termites lose their appetite as was demonstrated during a field experiment in India.

Two pieces of wood, identical in size, were buried near a termite colony in an area southeast of Mumbai. After nine months, a period that included a drought and a monsoon, the pieces were recovered. The one coated with NP Liquid Glass had been completely ignored by the termites and emerged in pristine condition, whilst the untreated piece of wood had been three-quarters devoured. Without employing toxic compounds or altering its natural characteristics, NP Liquid Glass was able to preserve the wood, offering a long-awaited, and highly effective, solution to every region plagued by termites. Just in the United States, termites cause well over $5 billion in property damage annually. Worldwide, the economic losses attributed to termites exceed $40 billion per year.

NP Liquid Glass: Too good to be true?

A resounding ‘no’ is Sascha Schwindt’s answer: “It is true that we sometimes find it hard to believe the amazing properties of our innovative coatings. However, any and all doubts are dispelled in all the studies, reports, and tests that were conducted. These unfailingly confirm both the effectiveness of the product and its harmless nature.”

Nanopool’s innovative product matrix is not only eco-friendly, it actually helps protect the environment as well: “That’s a bit like the cherry on the cake. Wherever dirt, microorganisms, and pests are kept at bay without the use of toxic substances, potentially harmful chemicals need not be employed. There is no more need to use cleaners at all: after coating the surface, a damp cloth is enough to keep it clean. Our coatings are highly repellent so that tiny particles merely sit on treated surfaces, without adhering to them. Thus, they may be swept away almost effortlessly,” concludes Sascha Schwindt.

Nanopool’s future plans include reaching out to yet more people and communities that may not be able – or willing – to implement other complex, toxic, and/or expensive solutions. Mr Schwindt is pleased that a number of entities have already recognised the value of innovative NP Liquid Glass as a driver of sustainability. He is particularly delighted of securing a win for Nanopool in this year’s CFI.co Sustainability Awards Programme. The company is the recipient of the 2020 Best Green Alternative Innovation Europe Award.


Richard Teng: Propelling ADGM’s Status as Leader in Progressive Technologies

[caption id="attachment_16613" align="alignright" width="300"] CEO: Richard Teng[/caption]

The Chief Executive of the Abu Dhabi Global Market (ADGM) Financial Services Regulatory Authority, Richard Teng, began his career with the international financial centre in 2015.

He was instrumental in the launch of ADGM that same year, and prior to joining the ADGM management team he held senior positions in leading financial organisations in Asia. He was the Chief Regulatory Officer of the Singapore Exchange, as well as Director of Corporate Finance at the Monetary Authority of Singapore.

As the CEO of the Financial Services Regulatory Authority (FSRA), Teng oversees ADGM’s banking, insurance and capital market sectors with integrated prudential and conduct supervisory responsibilities.

The FSRA, one of ADGM’s independent authorities, advocates a progressive financial services environment, while maintaining financial stability and upholding trust.

The FSRA has advanced the global positioning of ADGM and Abu Dhabi through a growing number of cross-border partnerships to strengthen co-operation. The financial centre has signed agreements with 45 like-minded regulators and 32 Fintech entities across the globe, in addition to Multilateral Memorandum of Understanding (MMOU) signatories with the International Organisation of Securities Commissions and International Association of Insurance Supervisors.

Spearheading numerous initiatives in digital and financial services, Teng has led the ADGM FSRA to introduce several first-of-their-kind, state-of-the-art frameworks and offerings to develop the region’s financial landscape and promote sustainability across all sectors of the economy.

In 2018, the FSRA launched the MENA’s first framework to effectively regulate virtual asset activities, including those undertaken by exchanges, custodians and other intermediaries in ADGM.

In 2019, the FSRA introduced the ADGM Digital Lab, the region’s first digital sandbox, allowing financial institutions and FinTech innovators to come together to experiment on products and solutions in a digital platform environment. The Digital Lab builds and improves on the hugely successful regulatory sandbox launched in 2016. FSRA also issued guidances to facilitate licensing of digital banks and promoting standards for safe and robust application programme interfaces to accelerate the adoption of financial innovations.

Teng has played a significant role in propelling ADGM’s stature as a leading facilitator to support innovative business models, which is made increasingly evident through the FSRA’s various achievements in the FinTech landscape.

In 2017, the FSRA launched FinTech AD, a flagship initiative and largest Fintech event in MENA that provides a collaborative platform for global thought leaders, policy makers, founders, innovators, financial institutions and investors to deep dive into issues that shape the digital economy of the UAE.

As part of ADGM’s ongoing endeavours to promote an international marketplace, Teng has been instrumental to the progression of the IFC’s Belt and Road efforts. ADGM has established close cooperation with top Chinese financial institutions and enterprises and is the only regulator from the MENA region to be approved by the People’s Bank of China to operate in the world’s second largest economy.

The FSRA aims to continue on a path of greater innovation and collaboration. With digital innovation, it is reshaping the local, regional and global regulatory landscape to create a vibrant and robust environment that constantly attracts new investment, talent and opportunity to Abu Dhabi.


Building a Thriving Business Ecosystem at the Intersection of Global Growth Markets

[caption id="attachment_16616" align="alignright" width="300"] ADGM[/caption]

Abu Dhabi Global Market (ADGM) is a leading International Financial Centre sitting at the intersection of Middle Eastern, African, South-East Asian and Chinese markets — a region brimming with investment opportunities.

Established in 2015, ADGM comprises three authorities: the Registration Authority (RA), the Financial Services Authority (FSRA), and the ADGM Courts. It facilitates the growth and development of Abu Dhabi’s economy and sustainability.

Since its inception, ADGM has provided a progressive platform to financial and non-financial entities looking to operate, pursue and expand their business in Abu Dhabi and the wider MENA region.

"Anchored by a robust commitment to Abu Dhabi’s position as a preferred investment destination, ADGM aligns its endeavours with international standards and best practices while catering to market demand."

Anchored by a robust commitment to Abu Dhabi’s position as a preferred investment destination, ADGM aligns its endeavours with international standards and best practices while catering to market demand.

With its global connections, ADGM is an internationally recognised business hub that continuously attracts international investors and pioneering entities, champions leading initiatives, and facilitates local and global financial collaborations.

ADGM Courts

ADGM Courts has been fully operational since May 2016 as part of Abu Dhabi’s vision to create and develop a common law court unlike any before it. Its regulations and supporting rules enshrine ADGM's legal framework of the direct application of English common law — a first for the region — comprised of a Court of First Instance and a Court of Appeal that handle civil and commercial disputes.

ADGM Courts was the first in the MENA region to enact a comprehensive framework for third-party litigation funding. The funding rules provide parties and funders with greater certainty on the enforceability of funding arrangements. ADGM’s legislative framework directly applies the English common law, allowing ADGM Courts to draw on a well-established set of precedents.

With innovation embedded at the core of its business formulation, ADGM Courts has introduced several global firsts in its short period of operations, including the launch of world’s first fully digital courtroom and the introduction of the eCourts platform, transforming the delivery of legal solutions.

ADGM Registration Authority

The ADGM RA is an independent authority responsible for the registration and administration of legal entities, real property interests, data protection and charges created over companies’ assets.

As one of the core pillars of ADGM, the registrar's main functions under companies and commercial licensing regulations include:

Registration of ADGM establishments, business names and maintenance of register, post-incorporation documentation; changes in business name particulars, and changes in directors, officers, shareholders and share capital. It is responsible for the enforcement of ADGM company regulations, the cancellation of commercial licenses, prosecution and the strike-off, dissolution or restoration of ADGM establishments.

The ADGM RA is a leader in customer service efficiency, offering a digital-by-default one-stop-shop for more than 340 online solutions for applicants and licensees through its dedicated Online Registry Solution Portal.

ADGM Financial Services Regulatory Authority

The ADGM FSRA advocates for a progressive, robust, and thriving financial services environment. Its primary function is to maintain the integrity of the financial hub, placing ADGM’S registered entities at the forefront of financial protection and stability.
The FSRA’s fundamental beliefs focus on fair, efficient, and transparent practices that meet the dynamic and growing needs of the Abu Dhabi economy, and benchmark against global markets and international best-practice.

Offering the highest level of regulatory transparency and engagement, the FSRA practices an open and progressive approach in its regulatory operations, through public consultations, engagement on introduction, and the amendment of rules and policies.

ADGM’s concerted focus on fostering growth and entrepreneurship turned the FSRA into a leader for a robust regulatory framework, recognised as best-in-class globally.

FSRA is a recognised leader in innovative regulatory work. Its 2018 comprehensive framework to regulate its virtual asset activities, including those by exchanges, custodians and other intermediaries, was a regional first. Licensing of digital banks, work on bank recovery and resolution rules, as well as introduction of the region’s first digital sandbox in 2019 set a high watermark for regulators across the MENA region and beyond.

ADGM Arbitration Centre

The ADGM Arbitration Centre (ADGMAC) is a state-of-the-art hearing facility established to effectively reshape the regional dispute resolution landscape through alternative solutions. The ADGMAC is open to all who seek a modern and business-friendly venue with exceptional support facilities for arbitration hearings or mediations, regardless of which institution parties choose to administer their arbitration.

ADGM Academy

Delivering world-class financial education and literacy, the ADGM Academy was established to reinforce talent within the financial sector and drive the establishment of a knowledge-based economy in the UAE and beyond.

ADGM Academy provides world-class financial research and training services to equip future generations with the necessary skills to navigate the ever-changing financial sector, as well as aid organisations looking for bespoke courses tailored to develop their workforce. The courses and certificates available include qualifications in banking, finance, leadership and sustainability.

Sustainable Finance

ADGM has been pioneering sustainable finance efforts in the MENA region for the last two years. In November 2018, it unveiled its plan to strengthen Abu Dhabi as a global centre for sustainable finance at the IIF MENA Financial Summit. The ambition first took shape during Abu Dhabi Sustainability Week in January 2019, when ADGM successfully hosted the inaugural Abu Dhabi Sustainable Finance Forum (ADSFF).

The forum served as a platform to launch the Abu Dhabi Sustainable Finance Declaration and the Abu Dhabi Sustainable Finance Agenda promoting the UN Agenda for Sustainable Development.

The second edition of ADSFF witnessed the publishing of the UAE’s first set of Guiding Principles on Sustainable Finance, which serves as a catalyst in the implementation of the UAE’s sustainability priorities. In addition, the number of signatories on the declaration reached 36 public and private-sector entities, with an additional 11 entities signing the declaration, pledging greater transparency and accountability in their operations to support sustainable development and climate change objectives.

The signatories include Central Bank of the UAE, Mubadala Group, the Ministry of Energy and Industry, the Ministry of Climate Change and Environment, the Abu Dhabi Exchange, Dubai Financial Market, Nasdaq Dubai, and some of the nation’s biggest banks such as First Abu Dhabi Bank, Abu Dhabi Commercial Bank, and Abu Dhabi Financial Group.

Belt and Road initiative

ADGM is uniquely positioned as a gateway into the multi-billion-dollar Belt and Road initiative thanks to partnership agreements signed with state-owned Chinese entities and the opening of the first ADGM international representative office in Beijing.

In 2019, ADGM has announced collaborations and ties with the Beijing Municipal Bureau of Local Financial Regulation, the National Development and Reform Commission (NDRC) of China, the China National Nuclear Corporation (CNNC), the Everbright Group, the Hainan Free-Trade Zone, OneConnect Financial Technology, the Jiangsu government, the Hong Kong Monetary Authority, the UAE-China Industrial Co-operation Demonstration Zone, the Shanghai Stock Exchange, the Asian Financial Co-operation Association and Guo-Tai Jun-An Securities.


How Will the Pandemic Impact Pay Equity Within the Finance Industry?

The financial services industry is at a turning point. Though there is evidence to suggest that the global coronavirus pandemic could set back several years’ worth of hard-earned progress in closing the gender pay-gap in the sector, it has provided an opportunity to improve flexible working practices and opportunities.

With the suspension of gender pay-gap reporting in 2020, the recent equal pay claim against Asda in the UK Supreme Court — the largest ever in the private sector — has put a welcome spotlight on pay disparity. Diversity more generally is also front and centre in the FCA’s mind, with the newly appointed chief executive indicating that if there is not progress in the sector it may eventually become a supervisory matter.

Women in all sectors are already losing out as families are forced to juggle childcare and work and, while many employers have offered flexibility, it remains unclear as to when these challenges will end. For the financial services sector — notorious for having the worst average pay gap in the UK — the full impact of the pandemic may only be felt when pay rises and bonuses are considered next year.

Tackling the pay gap

While many firms may have been relieved that gender pay-gap reporting had been suspended for the year, it brings with it a danger that efforts towards parity will slide.

Reuters reported last year that, despite publicised initiatives to try to improve the issue, including implementing the recommendations from the Government’s Women in Finance Charter, mandatory mixed gender shortlists and flexible working initiatives, there had been a distinct lack of progress.

A large pay gap does not automatically mean that female executives in financial services are not receiving equal pay. However, it does confirm what is already well known: that the City has fewer women than men in higher-paid executive roles. If firms want to make a concerted effort to drive meaningful change when they come to report in 2021, this can only be achieved through improving gender equity at senior levels.

Although the challenges in addressing gender equity remain unchanged from those that existed pre-Covid, certain issues warrant renewed attention given the impact of the lockdown period and remote working, including:

When promotion and bonus decisions come around, ensuring a sufficiently long look-back period to ensure performance is judged fairly and taking into account childcare-related challenges that may have impacted recent performance

Ensuring clients and opportunities are distributed evenly — with remote working there is a greater danger of siloed working, so managers should be reminded to spread work across the team

Recognising and addressing structural issues which may have a greater impact on women and the value attributed to their role, including the impact of prioritising financials when making promotion and bonus decisions, rather than looking at other measurable contributions

Adapting mentorship and peer support opportunities for a remote workforce

Adjusting internal processes and initiatives which help women who are remotely re-entering the workforce after maternity leave

Being doubly mindful of unconscious bias, including well-meaning biases that might lead a manager to assume that an executive with children at home might not be able to take on a new client or transaction

A golden opportunity

The lack of ability to work flexibly in such high-pressured environments is often cited as a significant reason for women leaving the financial services industry as they climb the ladder. This in mind, firms should take advantage of the lessons learned during the pandemic to shift the gender dial. If firms are truly committed to closing the gender pay-gap, cementing new working practices into future plans to return to the office, while also factoring-in the disproportionate impact on their female workforce into remuneration and promotion decisions, will be vital.

With the pandemic said to have the potential to set women’s economic progress back half a century, the Asda case is a timely reminder, if we needed one, of the importance of addressing the issue. While financial services firms may be able to point to non-discriminatory material factors, such as senior executives focusing on different product areas or markets, often remuneration will be driven by previous financial performance.

As such, the risk of sex discrimination cases for firms which do not actively address the underlying reasons for any gender disparity remains very real, and firms must take note.

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By Anna Birtwistle, partner, and Hannah Taylor, associate, at Farrer & Co


CEO of McKinsey Spain and Portugal: Alejandro Beltrán — Pandemic Accelerates Changes Already Underway

[caption id="attachment_16639" align="alignright" width="300"] CEO of McKinsey Spain and Portugal: Alejandro Beltrán[/caption]

He spends his days on the phone with executives of corporations from across the economic spectrum: listening more than talking. Alejandro Beltrán, CEO of McKinsey Iberia, has an insatiable appetite for information. He keeps his finger on the pulse of business in Spain and Portugal – and notes it is weakening. “The pandemic has changed everything. Prior to the viral outbreak, the dynamics of business were already in flux with the ever more pressing need to address environmental concerns and, in parallel, successive waves of digitisation.” Most executives tell Beltrán that all their plans have now been put on hold to deal with the pandemic and its aftermath.

McKinsey – aka The Firm – is well known for tying together political, economic, and social trends to produce a broad global outlook – and spot the unexpected early. In late February, McKinsey was first amongst its peers to recognise the disruptive potential of the corona outbreak in Wuhan, China, and to issue a clear warning about its possible effects. Internally, the company promptly issued a ‘state of telecommute’ decree to keep as many of its more than 31,000 employees worldwide out of the office, but in work.

For Beltrán it is still too early to conclude that a paradigm shift has occurred in the delivery of white-collar work: “It all depends on how long the virus can rage unchecked and, crucially, if a second and successive outbreaks again lead to strict home confinement. What we can conclude is that a number of orthodoxies have been relegated to the dustbin. Corporations are revisiting the way their operations are organised. I also venture to predict that management hierarchies will tilt away from the vertical, entrusting individual employees with more responsibilities as they gain access to more information.”

Beltrán also noted that his clients have gained a new appreciation for agile decision-making processes. The pandemic has shown that the ability to react quickly to a new reality that no risk analyst could have foreseen is of paramount importance to the survival of corporations.

According to the McKinsey Iberia CEO, most businesses in Spain are still in a ‘certain’ state of shock: “The first order of business was to ensure the health, safety, and wellbeing of staff. The pandemic has reminded executives that we are all human and need to care for each other.”

As the day after slowly dawns, corporations need to prepare for the new normal. Some have seen revenues plummet by 60 percent or more whilst others watched online sales skyrocket as locked-down customers turned to the internet for their daily shopping. “The economy has undergone a major shift and it will take some time for businesses and consumers to adapt.”

Alejandro Beltrán is convinced that the pandemic will also accelerate the digitisation of production processes as heralded by the Fourth Industrial Revolution. The haphazard approach to IT and the Internet-of-Things (IoT) will ‘undoubtedly’ be replaced by more a structural vision on how to leverage artificial intelligence and machine learning. Beltrán emphasises that the human dimension will not be lost during this transition: “As happened many times before in history, automation actually leads to a growth in job opportunities and employment numbers. This retooling goes hand-in-hand with human skills development. Take my job: We estimate that about a quarter of the workload of the average CEO can easily be entrusted to a smart machine.”


European Investment Bank: A United Europe Can Emerge Stronger From the Pandemic

[caption id="attachment_16676" align="alignright" width="300"] EIB Vice President: Andrew McDowell[/caption]

The most marked economic impact of the COVID-19 crisis is on small businesses, which find themselves with insufficient resources to fight for survival.

They need co-ordinated relief, and a collaborative international effort is the obvious way to face the problem. Each EU member state faces a similar problem. None can face coronavirus alone. Only a pan-European plan, which complements national initiaitives, can put economies on the path to recovery.

This is why the EU Council endorsed the European Investment Bank Group plan for EU member states to create a €25bn guarantee fund that enables us to mobilise up to €200bn in funding for distressed sectors, as part of the wider €520bn package of EU crisis response measures agreed in April. The €25bn guarantee fund will be financed by EU member states according to the size of their shareholding in the European Investment Bank.

"By pooling credit risk all across the European Union, the overall average cost of the fund could be reduced, compared to national schemes."

It is limited to addressing the Covid-19 shock, but forms a bridge between the periods of crisis and recovery. With the benefit of a counter-guarantee from this fund, the EIB Group — the European Investment Bank and its specialist small business subsidiary, the European Investment Fund — will unlock financing to the real economy by ramping-up guarantees to local lenders, national promotional institutions and other financial intermediaries. These guarantees will allow liquidity to be passed on to small businesses, which have seen their markets dry up.

The products to be rolled out under the guarantee fund will probably be dominated by guarantees on portfolios of SME loans originated by local lenders, as well as other forms of risk-sharing on new and existing corporate loan portolios. Some of these will provide regulatory capital relief. Other products will also be considered, including participations in asset-backed securitisations to free lending capacity, as well as equity investments in venture capital and private equity funds supporting innovative firms.

This fund should also allow the European Investment Bank to counter-guarantee some national guarantee schemes already in place, sharing across the EU the risk of these schemes and increasing their impact.

It is expected that the fund’s supported financing will be split as follows:

At least 65 percent: loans and guarantees for SMEs (companies with up to 249 employees).

Up to 28 percent: loans and guarantees for non-SME companies, of which up to five percent can be used for public sector companies and entities active in the area of health or health-research or providing essential services related to the health crisis. Some additional restrictions will apply to companies above 3000 employees, to make sure that we focus our efforts mainly on SMEs.

Up to seven percent can be allocated to venture and growth capital (through the EIF) and venture debt for SMEs and mid-caps (companies with up to 2999 employees).

The European Investment Bank Group has years of experience in the products involved in this guarantee fund, and through existing network of hundreds of counterparts can quickly channel financing to the markets and sectors most in need.

I see four key advantages to supplementing — at the EU level — the many national guarantee schemes that have been rolled out.

Firstly, as with the Covid-19 health crisis, we need a co-ordinated approach to managing the economic crisis. No country will recover alone. Even the largest is influenced by what happens in terms of overall EU demand, intra-EU trade, intra-EU value chains, overall EU market confidence and financial market loops.

Austria, for example, has contained the spread of COVID-19 well and economic shutdowns are gradually easing there, but aftershocks to the otherwise healthy economy continue to reverberate. Austrian GDP is set contract by six percent and unemployment is already at 12. Small businesses make up 99.6 percent of Austrian companies, and they find themselves with limited resources to fight for survival, despite Austria’s forceful national response. Imagine what the situation is in countries where resources to respond to the crisis have been more limited and where the spread of the virus has been more intense. Everyone needs help.

We need a co-ordinated approach to managing the economic crisis. Even the largest European economies are influenced by what happens in terms of overall EU demand, intra-EU trade, intra-EU value chains, overall EU market confidence and financial market loops. A study by the European Central Bank shows that a one percent symmetrical decline in the GDP of each member state brings, after the initial mechanical effect, an additional 0.6-0.8 percent decline in euro-area GDP growth, due to the direct and indirect spillovers in trade. The European Investment Bank’s own data shows that 40 percent of economic growth and growth in jobs from the operations we finance comes from cross-border spill-overs.

Secondly, by pooling credit risk all across the European Union, the overall average cost of the fund could be reduced, compared to national schemes.

Thirdly, the use of the European Investment Bank also means that guarantee schemes — and their SME and corporate beneficiaries — benefit from the bank’s AAA rating, even in financially weaker member states which lack fiscal space and a top credit rating. This can help to level the playing field for businesses across Europe during the crisis and recovery.

Finally, Europe’s venture capital and innovation ecosystems are trans-national by nature. No individual member state has adequate incentives to fully protect them. Therefore, there’s a need for a pan-European perspective and policy instrument. The broad product mix being proposed will ensure that in every country we will find a way to complement national schemes to best effect.

The economic and financial dynamics immediately ahead of us are approaching a tipping point. We have little time to put in place measures to safeguard the European economy from this unprecedented shock. By responding to this crisis with a spirit of solidarity and enlightened self-interest, we can start to strengthen confidence among markets and citizens in Europe’s capacity to weather the storm.

Together, Europe can emerge from this crisis even stronger.

About the Author

Andrew McDowell is one of the eight Vice Presidents of the EIB who, together with President Werner Hoyer, form the Management Committee that runs the bank on a day-to-day basis.

Vice President McDowell has oversight of the Bank’s treasury, economics and evaluation functions, as well as lending operations in energy and the bioeconomy. He was the Vice President responsible for the development of the EIB’s new Energy Lending Policy that has committed the EIB to become the first major multilateral financing institution to end support for unabated fossil-fuel energy projects. He has also been an active participant in the European Battery Alliance, helping to align EIB’s financing activities with the goal of building a sustainable battery value chain in Europe.

He is also responsible for institutional relations with 10 European and 14 Asian countries.

Prior to joining the EIB in 2016, Andrew was Chief Economic Adviser to Irish Prime Minister Enda Kenny from 2011, co-ordinating the policies that supported Ireland’s recovery from the economic crisis and sovereign bail-out, and Chief Economist of Forfas (from 2000), Ireland’s industrial policy advisory body. He took undergraduate and post-graduate studies in business, economics, finance and international relations from University College Dublin and John Hopkins University.


Gulf Insurance Group-Kuwait: A History of Firsts and a Booming ‘GIG’ Economy for Leader in Insurance

[caption id="attachment_16682" align="alignright" width="300"] Gulf Insurance Group - Kuwait[/caption]

Gulf Insurance Group-Kuwait (GIG-Kuwait) is the country’s largest insurance company in terms of gross written premiums and retained premiums in the life, health and auto insurance sectors, with a paid-up capital of KD18m ($58.4).

The group aims always to be the market leader and innovator in terms of innovation, technological services, and key strengths. Its flexible infrastructure has enabled 80 percent of its staff to operate remotely during the COVID-19 pandemic.

GIG-Kuwait is the first insurance company in the region to issue various insurance policies online, and to provide online health claims approval systems and services for the sale and renewal of policies through smartphone apps (iOS and Android).

It has a 24/7 Contact Centre and mobile apps to serve the biggest market share in Kuwait, focusing on advanced technology platforms. The company has been certified for BS 7799 / ISO 27001 in IT security since 2005, and upgraded to become the first company in the country to get ISO 27001:2013.

"GIG-Kuwait uses an advanced customer relationship system connected with social media and messaging platforms."

GIG-Kuwait uses an advanced customer relationship system connected with social media and messaging platforms. It was the first insurance company in Kuwait to implement motor claim process using WhatsApp by having the customers send photos of damage. The company is currently implementing of the state-of-the-art core insurance application Beyontech and was the first insurance company in Kuwait to implement use of the Omnichannel digital form.

The Gulf Life Insurance Company was established at the end of 2007 as a subsidiary of Gulf Insurance Group. In 2014, Gulf Life Insurance Company changed its name to Gulf Insurance and Reinsurance Company. The licence was modified to practise health / life insurance and general insurance business.

"GIG-Kuwait offers a variety of products and services for various types of conventional insurance: automotive, marine, property, medical, life, travel and casualty."

In 2017, GIRI transformed the brand name to Gulf Insurance Group-Kuwait. This change was in collaboration with all Gulf Insurance Group subsidiaries, for a unified and streamlined identity. As of December 2017, the company operates with paid-up capital of KD18m ($58.4), up from KD15m ($48.7) in 2016.

GIG-Kuwait offers a variety of products and services for various types of conventional insurance: automotive, marine, property, medical, life, travel and casualty.


Pavilion Global Markets Ltd. - Transition Management and the Pandemic: When to Act in Periods of Higher Market Volatility

[caption id="attachment_16685" align="alignright" width="300"] Canada: Montreal[/caption]

While it’s understandable to be squeamish about transitioning assets during periods of high volatility, it can be an ideal environment in which to engage a transition management provider.

To provide the necessary transparency to help asset owners become more comfortable, transition management (TM) providers will require an effective technology platform giving access to liquidity, and providing the ability to monitor execution/venue quality (best ex) and customisation to stay relevant and competitive.

A frequently asked question from asset owners, regardless of the market environment: “When is the best time to effect a portfolio rebalance, or deal with changes to my asset manager line-up?” The increased volatility in global markets brought on by the Covid-19 pandemic has highlighted the need to ask more questions of TM providers and focus on specific criteria when selecting which one may be best-suited to navigate this turbulent environment. For example, there is increased opportunity cost in delaying moving to the desired structure or new higher performing manager, thus how does the opportunity cost compare to the higher transaction cost? How does the TM provider demonstrate in a transparent fashion best execution? What are all the fees captured by the TM provider including but not limited to rebates over and above client disclosed and negotiated commissions?

"We continue to see a greater focus on venue analysis and selection, as well as customisation of trading algorithms in order to mitigate the higher spread / increased vol environment on clients’ executions."

Both empirical evidence and market data have confirmed the volatile nature of global markets since March 2020, relative to preceding months.

Aside from what is clearly evident to the casual observer, there has been a dramatic downturn in median quote size and a striking uptick in spreads and volatility in all regions, particularly in EMEA and APAC. These factors have led to an increase in trading costs, which can take years of investment performance to overcome.

It is important to note that an increase in volatility generally goes hand-in-hand with an increase in volumes. When the VIX peaked at 80, volumes nearly doubled in the US, Europe and Asia.

In the US, average daily volumes rose 69 percent to 15 billion, far surpassing the previous monthly record of 12 billion. In a global cost review for Q1 performed by Virtu, trading costs in all regions increased due to the volatility associated with the pandemic, reaching levels not seen since the Global Financial Crisis of 2008. Even with the VIX subsiding a little in April, when compared to the previous year, intraday volatility remains multiples higher. The lower quote size, higher spread, and higher intraday volatility all led to higher execution costs. Compounding this is the myriad of venue options, trying to understand where the volumes are going, and where the best sources of liquidity are to effectively manage execution costs.

[caption id="attachment_16686" align="aligncenter" width="1000"] Pavilion Global Markets: Buyback blackout periods and vol. spikes. Shaded areas = US recessions. Data via Bloomberg.[/caption]

In the public equity market, there has been a proliferation of new trading venues leading to a fragmentation of the market. High frequency trading (HFT) has the ability to exploit this — to the detriment of client orders, if one’s execution capabilities and technology do not keep pace. Given that spreads more than tripled for S&P 500 symbols in March 2020 against the same period last year, technology is critical in sourcing the various venues to find liquidity via smart order routing.

In addition, one must consider the fact that many brokers and/or TM providers operate their own, or have a financial stake in, certain dark pools that may be dominated by HFT. It is incumbent on these providers to demonstrate that any preferential routing of orders to these venues is to the client’s benefit, and not motivated by other financial considerations. While this has always been important, the increased volatility of the moment exacerbates it.

As a result of all these factors, we continue to see a greater focus on venue analysis and selection, as well as customisation of trading algorithms in order to mitigate the higher spread / increased vol environment on clients’ executions, to bridge the liquidity gap caused by market fragmentation, as well as to help manage risk.

As more and more clients are expressing concern about transitioning / rebalancing in the current market environment, Pavilion Global Markets is seeing a demand for transparency across the entire trading process to help clients better understand the liquidity sourcing preferences, and gain greater insight into how brokers / TM providers are managing their orders and controlling risk.

One way of providing this transparency is the use of venue analysis tools to help shed light on whether a provider’s liquidity venue is being given undue preference, or if a venue is causing too much information leakage.

Customisation of trading algorithms via venue selection, and even real-time venue-monitoring, will become key. Firms such as Clearpool in the US allow for customisation of algorithms “on the fly” to direct orders to achieve best execution. Information leakage is avoided by better venue prioritisation and avoidance of any undesirable venues. To keep pace, technology needs to be customisable, and flexible enough to handle the increasing granularity of the data (from milli- to micro-second, or even finer executions). Without such technology, providers will be unable to compete on a best-execution basis in the future.

Bottom line: with news of rising Covid-19 cases, and the economic implications of such news changing intra-day, volatility will likely remain elevated, with markets seeing spikes for a period of time to come. That said, this period of greater volatility can also be an effective environment in which to transition.

Asset owners should choose a TM provider that has an effective technology platform providing them access to liquidity, and allowing them to monitor execution/venue quality. The platform must also be easily customised to stay relevant and competitive. This will assist in navigating markets, managing risk and minimising execution costs. Transparency remains key.

Pavilion Global Markets - Best Transition Management Team North America 2019

Pavilion Global Markets is an established player in international capital markets, offering securities trading, global macro research and transition management services to institutional investors.

For over half a century, Pavilion Global Markets has provided expertise in execution and advice to institutional clients worldwide. We bring industry-recognized capabilities to the table – including specialized investment research and analysis, a top-ranking global trading desk and state-of-the-art technology – to help our institutional clients worldwide excel in the capital markets.


Trade Finance at Euro Exim Bank: Knowing What the Customer Wants and Delivering

Euro Exim Bank Ltd (EEB) is one of the fastest growing international financial institutions. Established in 2015, the bank is headquartered in St. Lucia, West Indies. It also has a representative office in London, along with a network of highly qualified agents, affiliates, and partners in 23 countries serving import and export businesses across the globe.

EEB deals exclusively with registered corporates and clients based in active markets such as UAE, Malaysia, Indonesia, Vietnam, Thailand, China, Africa and India. It assists importers of sourced frozen food, garments, sewing machines, plastic piping, ceramics, plumbing accessories, pulses, raw metals, automobiles, among other products to trade with these markets.

The bank is now establishing offices in Singapore, Dubai and Chennai. The idea is to take maximum advantage of the rise in trade between the Middle East and Far East. This initiative will also help build sales and provide vital services in Africa and the Indian subcontinent.

"The bank is now establishing offices in Singapore, Dubai and Chennai. The idea is to take maximum advantage of the rise in trade between the Middle East and Far East."

EEB’s international team has immense knowledge and experience in trade finance and SWIFT messaging for transmission of complex instruments, courtesy of its extensive network of contacts and counterparties with renewed concentration in emerging markets.

EEB provides letters of credit and standby letters of credit, along with performance bonds and bank guarantees, from St. Lucia. The bank is also planning to expand its platforms based on foreign exchange service, the introduction of tradeable digital assets and merchant accounts.

This is one of the first regulated banks to have implemented the latest payment technology, following collaboration with RippleNet and xCurrent. Through the latter, EEB tracks real-time payments accurately and effectively, without the hassle of multiple routing. On-demand liquidity services (ODL) bring clients unlimited, low-cost access to liquidity with the help of the XRP digital asset. This digital asset provides guaranteed exchange rates and immutability with frictionless transfer and settlement.

The bank provides thought leadership articles for international publications, participates in global conferences including GTR, TXF, Caribbean Association of Banks, Ripple and other key financial gatherings, and more recently, has extended its video, digital and social media output.

Internationally recognised for trade finance activity, EEB is confident of retaining its esteemed position for many years to come. The bank’s regional experience, innovative trade platform, superior account services, international expansion, and trade digitalisation (with blockchain & AI capabilities) are key to positioning itself as a leading trade finance facilitator.

According to CEO, Kaushik Punjani, “Building a business takes years, and relies on solid foundations. In the current uncertain economic climate, firms must be realistic in profit and investment outlook, exercise pragmatic management, hire professionals, release the unproductive, listen and learn constantly from peers and competition, understand value and contribution (not just expenditure) and ultimately work out what customers want and keep delivering it.

By Graham Bright Head of Operations and Compliance at Euro Exim Bank


Royal Brunei: A Royal Experience from the Abode of Peace, Gateway to a Magical Kingdom

The Sultanate of Brunei is located in the green heart of Borneo and is known as The Abode of Peace, a place of tranquility, hospitality and embodies uniquely Bruneian values.

Royal Brunei Airlines embodies the same values, in every flight and to every destination, a gateway to Borneo and beyond. It was established in 1974 as an independent corporation, wholly owned by the government of Brunei Darussalam. Its mission was to connect the nation to the world from its Bandar Seri Begawan hub.

The maiden flight of Royal Brunei Airlines took off, bound for Singapore, on May 14, 1975. Since then, the national flag carrier has grown in leaps and bounds, gathering awards and accolades and achieving a four-star airline ranking.

Flying Royal Brunei (RB) is a long way from the dreaded economy class of many airlines. The full-service carrier offering affordable fares year-round, with free meals, baggage allowance and entertainment included. RB is constantly transforming to make sure it is well positioned for the future. A general rise in disposable income has opened up new opportunities for the company — and Brunei’s fast-growing tourism industry.

[gallery size="medium" link="none" ids="16696,16697,16698,16699,16700,16701"]

Royal Brunei Fleet

The modern, fuel-efficient fleet features 787 Dreamliner and A320 Neo aircraft, all with in-flight entertainment. Traditional Bruneian warmth shines through with onboard care and hospitality for passengers.

A one-stop service centre in Brunei International Airport provides travel-related services such as reservations, ticketing and booking of tour packages. An RB loyalty programme, Royal Skies, offers warm service, a personal touch and attractive rewards for frequent travelers. Membership is free and members are able to enjoy their rewards quickly, as redemption begins from just 5,000 air miles.

Members may earn miles on every Royal Brunei Airlines' flight and put themselves in line for a host of benefits and privileges, including free flights and seat upgrades. Miles can also be awarded by Royal Skies partners.

RB Upgrades

Passengers can upgrade to Business Class and experience top-notch features, services and entertainment. Those with eligible tickets can make a request for an upgrade.

Travel Insurance

A sense of security for those boarding its aircraft is of utmost importance to Royal Brunei Airlines. Travel insurance can be purchased at the time of purchasing flights. The policy provides coverage for instances such as (but not limited to) emergency medical treatment, cancellation or shortening a trip, as well as coverage for the loss or delay of baggage.

Extra Baggage Allowance

RB allows passengers to “travel smart” — online, and at Royal Brunei's ticketing offices, up to four hours before departure.

Royal Brunei Holidays Online

With a few clicks, RB's online guests can get their holiday products — flights, accommodation, tours and transport in Brunei and RB destinations — with instant confirmation, eliminating the hassle of ploughing through disparate websites.

CEO Karam Chand has Learned the Ropes, from Graduate Trainee to Top Job

[caption id="attachment_16694" align="alignright" width="295"] Royal Brunei Airlines CEO Karam Chand[/caption]

Royal Brunei Airlines CEO Karam Chand has close to 30 years' experience in international and domestic airlines in full service, hybrid and low-cost models.

He has expertise in corporate strategy, network and fleet planning, revenue management, airline operations and risk management. Before his appointment as chief executive in 2016, he held the role of chief commercial and planning officer at Royal Brunei.

Chand started his career with Fiji Airways as a graduate trainee in 1988. He held roles in government affairs, scheduling, market planning and strategic planning, reporting to the CEO. He then joined Virgin Australia as a founding member in 2000, and has held various executive roles in the commercial division.

His career at Virgin Australia culminated with the post of head of the Commercial-International division, a position he held from 2005 to 2009. He was tasked with looking after the airline’s short-haul international business for a fleet of fourteen aircraft.

Prior to joining RB, Karam Chand was the chief executive of Our Airline, the National Carrier for the Republic of Nauru, based in Brisbane and operating under an Australian Air Operators certificate.

Karam Chand is a fellow of the Institute of Travel & Tourism UK and Fellow of the Australian Institute of Management. He holds a Masters degree in Air Transport Management from Cranfield University, and has honed his skills with programmes at IATA, the Australian Institute of Management, Virgin Australia, and an executive programme in Strategy from Stanford University.


KwaZulu-Natal Joint Municipal Pension/Provident Funds: Challenges and Transformation for South African Fund as it Navigates the Future for All its Stakeholders

South Africa’s most awarded Retirement Fund, the KwaZulu-Natal Joint Municipal Pension/Provident Funds (NJMPF) proudly announced on the 1st of July 2019 that former Chief Financial Officer (CFO) of the NJMPF,  Bonginkosi Mkhize is the Fund’s first black Chief Executive Officer/Principal Officer.

Most African countries are developing countries, and South Africa, with its history of challenges and triumphs has needed to transform. The NJMPF has taken a historic move of transformation which has marked change in the organisation’s culture and future. This was a positive announcement and the organisation needed to reassure its stakeholders that their retirement benefit monies remain in good hands and the handover was without incident. The Fund has undergone many changes over the years including the composition of its Board of Trustees (BoT). Some of the changes were due to the evolving political environment in the country with the introduction of a democratic South Africa in 1994. The Trustees did not represent the members they represented fairly. The demographics have gradually changed over time and now the BoT is fully integrated from a racial and gender point of view.

The NJMPF has been providing retirement benefits for municipal employees in the Province of KwaZulu-Natal, South Africa for over 70 years. The former CFO Bonginkosi Mkhize took the helm as CEO last year in 2019, managing assets of U$D 1.2bn with a membership of 31,000 which includes current members, pensioners and dependents or beneficiaries. The beneficiaries consist of widows, widowers, and children. The Fund’s active membership base is spread throughout the Province of KwaZulu-Natal (KZN), South Africa and incorporates members in urban cities as well as semi-rural areas. The insights Bonginkosi Mkhize gained in his previous role made for a smooth leadership transition — one underpinned by an implicit commitment to strong corporate governance. His vision for the NJMPF under the converging economy and rapid development of technologies - is advanced technology facilities, lower administration fees and speedier conduction of business. Just as information technology and systems allow for the optimal performance in administration operating platforms.

"Recognition is growing about the urgent need to make a ‘just transition’ to a lower carbon economy as well as achieve the Sustainable Development Goals (SDGs) to improve the lives of growing populations."

The NJMPF values are entrenched in assisting members and providing support where it is possible – which makes it vital for the Fund to have a healthy relationship with its membership. The robust Financial Literacy Programme is evidence of this and it continues as an ongoing project. The NJMPF understands that providing timely and succinct communication is key in upholding the Fund’s mission of providing superior retirement services. The other exciting venture the Fund is embarking on in 2020 is the Going Green project. The Going Green project forms part of a bigger project of sustainable investing. Sustainable investing is about investing in progress and recognising that companies solving the world’s biggest challenges can be best positioned to grow. It is about pioneering better ways of doing business and creating the momentum to encourage more and more people to opt into the future we are working to create. Through the combination of traditional investment approaches with Environmental, Social and Governance (ESG) insights, investors ranging from global institutions to individuals are taking a sustainable approach to pursuing their investment goals. Climate change is already a measurable global reality and along with other developing countries, South Africa is especially vulnerable to its impacts.

Globally, climate change is recognised as a real and potentially destabilising threat to economies and the well-being of people, particularly the most vulnerable. Recognition is growing about the urgent need to make a ‘just transition’ to a lower carbon economy as well as achieve the Sustainable Development Goals (SDGs) to improve the lives of growing populations. The Going Green project acts as an introduction to getting members actively involved in sustainable living which includes growing vegetables from home or getting involved in recycling projects. The NJMPF imagines that if 30,000 of its members and families are active participants in sustainability projects, it will help to make a difference in alleviating some of the problems we have in the world. The Board of Trustees have also put the task of finding alternative and sustainable ways of investing to the NJMPF Management and Fund asset managers.

[caption id="attachment_16705" align="aligncenter" width="1000"] Audio newsletters have been made available to accommodate not only the members with disabilities but rather those who are unable or don’t like to read[/caption]

In the past the NJMPF has provided its members with financial education by working with organisations such as South African Revenue Services (SARS), National Credit Regulator (NCR), Will section of attorney practice, the Pension Fund Adjudicator (PFA) and Financial Sector Conduct Authority (FSCA) to name a few.

To accommodate those who cannot or are hard of hearing the NJMPF has introduced sign language enhancements in most of the visual video communication.

Audio newsletters have been made available to accommodate not only the members with disabilities but rather those who are unable or don’t like to read - especially financial jargon that might be a challenge to understand. The newsletters are voiced by a household name in KZN South Africa - Vicky Masuku - a retired radio personality from the Ukhozi FM radio station. Ukhozi FM is one of the biggest radio stations on the planet and the largest in Africa with its listenership in constant excess of 7.7 million over the past decade. Ukhozi FM broadcasts mainly in IsiZulu and targets IsiZulu speaking and understanding audiences in South Africa. The station broadcasts nationwide and streams to the world.

[caption id="attachment_16706" align="alignright" width="300"] CEO/Principal Officer: Bonginkosi Mkhize[/caption]

Over the years the NJMPF has evolved methods used to communicate, inform, educate, and increase participation and access to knowledge for its membership. The NJMPF, has been addressing issues of Communication, Stakeholder Engagement and Education – not all at once – but rather as the landscape allowed. The focus of the NJMPF’s communication strategy is to assign information to all stakeholders about the Fund and the benefits that derive, in an efficient and timely manner, in a language the stakeholder understands. KwaZulu-Natal is populated by Zulu speaking people of about 78% compared to 13% English speaking people. The audio option is made available in both English and isiZulu, the Funds videos are also in both languages as are newsletters and some circulars.

As the membership of the NJMPF continues to grow and change, it creates a demand for different types of communication mediums to be used. This demand is based on diversity in demographics within the municipal sector which includes Age, Education, Location, and Income. Based on the demographics, appropriate ways of communicating have been introduced to meet the needs of different types of stakeholders with whom the Fund engages - this includes the NJMPF Mobile Application, website which we piloted the introduction of an audio section to it, newsletter (sent electronically and via post), factsheets, brochures, booklets and our presence on Facebook and Twitter. A new project in 2019/2020 revolves around voice recognition software, voice recording of all incoming and outgoing calls, online surveys, barcoded forms, and web chat.


Jabra: Good Sounds, Sound Ethics and Fine Design

Communications and sound solutions leader Jabra, proudly part of the GN Group, has been bringing sound to people’s lives for over 150 years.

It is in the business of helping you to hear what you want to hear — from letting the “right” sound in to filtering disruptive noise out. But its products are packed with intuitive features which do much more than that.

They’re the result of thousands of hours of research and meticulous engineering, from the only company in the world with consumer, professional and medical grade sound, all under one roof.

Jabra creates intelligent headsets and communications software that allow professionals to work more productively, and produces wireless headphones and earbuds for increased enjoyment of calls, music, and media. Jabra also pioneers video conferencing solutions for more inclusive meetings, and which let you keep up with meetings while working from wherever.

Jabra Starts With Great Sound

Proudly part of GN Group, Jabra has been bringing sound to people’s lives for over 150 years; from the very first telegraph cables linking the West to East to the first Bluetooth headsets. Products are designed and engineered with the customer in mind, using intelligent technology and finished with premium materials.

Great sound isn’t the only reason people buy Jabra headsets, but it’s a good place to start: thoughtfully designed, purposefully engineered, and expertly built.

Sustainability is a consideration in everything Jabra does. Through its products, it aims to help you connect with the world — without the need for polluting and unsustainable air travel. The company takes responsibility for actively addressing environmental and social issues in all operations and across its value chain. It builds on a long history of innovation, and a strong culture of compliance and business ethics.

Jabra strictly follows the UN Guiding Principles of Responsible Business, and GN has been a signatory to the UN Global Compact since 2010. Jabra was ranked in the top 77th percentile by EcoVadis, scoring above average in all categories: environment, labor and human rights, business ethics and sustainable procurement.

Several Jabra headsets are TCO-certified, the most comprehensive sustainability endorsement for IT products. As part of GN Store Nord, Jabra has implemented policies covering all key sustainability and ESG areas. The company continuously adds and updates policies in line with legislative or strategic changes.


Bermuda Stock Exchange (BSX):  Electronic Exchange Takes an Island to Leading Status for Global Listings

Launched in 1971 as a purely domestic exchange, the Bermuda Stock Exchange (BSX) is now the world’s pre-eminent fully-electronic offshore securities exchange.

It made steady progress after its launch; by 1993 it had transitioned to an electronic platform and opened to international listings. As of Q2 2020, BSX had over 1000 listed securities, including investment funds, debt- and insurance-related securities, and SMEs.

The BSX’s recent growth is due in large part to its innovative and commercial approach, which includes offering listed issuers speed to market, often in as little as two weeks.

The firm also operates a mezzanine listing facility, which provides development-stage companies with an opportunity to list — and subsequently raise capital — on an internationally recognised exchange at an earlier stage than a traditional IPO.

The majority of issuers are Bermuda-based, but there are others from North America, the UK, Europe and Asia. The BSX has also seen increased interest from global capital markets as an exchange platform for the listing of international debt instruments, especially from Latin and South America.

While the BSX has focused on organic growth and development, it has also pursued its electronic exchange environment and the development of its domestic capital market. This has earned international recognition to ensure appropriate regulation and recognition in support of future development.

The BSX is a full member and sits on the Board of the World Federation of Exchanges. It is an affiliate member of the International Organisation of Securities Commissions, a US Securities and Exchange Commission-designated Offshore Securities Market, and a UK Financial Conduct Authority designated Investment Exchange.

In 2009, the Bermuda Monetary Authority introduced the Special Purpose Insurance (SPI) class which enabled the collateralisation of insurance products — catastrophe bonds and Insurance Linked Securities (ILS). The BSX is the world’s leading ILS exchange: 470 listings with combined nominal value of $38.1bn, or 85 percent of global issuance at the end of Q2 2020.

Recent market volatility has proven ILS to be a non-correlated asset class which continues to grow in scope and geographic diversity. It is increasingly viewed as an attractive investment for institutional investor portfolios. ILS has been deemed a sustainable investment in accordance with the United Nations’ Sustainable Development Goals (SDGs) as it helps private and public organisations to build resistance to natural disasters and climate change.

At year end 2019, Miami International Holdings (MIH), owner and operator of three fully-electronic US securities exchanges, obtained a controlling interest in the Bermuda Stock Exchange. Since its founding in 2012, MIH and its Exchange Group have been generating technological innovation. Electronic exchanges have challenged legacy trading platforms, and this partnership will provide additional support to the evolving global re-insurance risk market through innovative products on a global scale, with a view to the futures market.

A pragmatic commercial approach has created an operational, technical, and regulatory infrastructure focused on clients’ needs. This is the result of a collaborative effort between the island’s private and public sectors. The model ensures jurisdictional policies remain in-line with — or ahead of — market developments. It keeps Bermuda’s regulatory oversight at prudent levels, while maintaining support and appreciation for the entrepreneurial spirit that drives innovation.


EQDOM, subsidiary of SOCIETE GENERALE GROUP: Inclusivity, Fintech Power and Agility Provides Competitive Edge to Moroccan Consumer Credit Provider

[caption id="attachment_16717" align="alignright" width="300"] EQDOM Team[/caption]

Consumer credit, carefully designed and fairly implemented, has the power to transform lives, promote financial inclusion, boost social mobility, and increase the resilience of households. In Morocco, home to one of Africa’s most buoyant and vibrant economies, the rise of a of a strong middle class is widely considered key to the country’s future.

It is at this junction, where business acumen meets social expediency, that consumer finance powerhouse Eqdom proves its value. A pioneer and leader of the sector, Eqdom’s corporate trajectory spans 45 years. The company has been a disruptor long before the term became fashionable. As such, Eqdom has received CFI.co’s 2020 award for Best Inclusive Consumer Finance North Africa, which recognised its 45-year history as a pioneer of inclusivity, and its financial partnership with Moroccans from all walks of life, and acknowledged the company’s bold moves to fill the gaps created by the credit requirements of traditional banks. In a sector with good liquidity and high growth, empowering clients remains a cornerstone of the company ethos.

With innovation as a core value of the company, Eqdom has established a reputation, both solid and well-earned, for detecting and leveraging new industry trends and dynamically adapting its suite of products to match shifts in consumer demand. By erecting its business around the needs – and aspirations – of its customers, Eqdom inspires levels of client loyalty and trust that have become industry benchmarks.

"Now available everywhere in the country 24/7, Eqdom’s new digital platform gives the company a truly nationwide footprint, reaching out to new customers whilst offering added convenience to existing ones."

The recently concluded rebranding exercise is but the outward sign of a much deeper corporate transformation that addressed all aspects – human, technological, and organisational – of the business. Whilst keeping its celebrated customer centricity, including the human touch to all front office operations, Eqdom has completed its offer by a new customer digital channel, designed with the best standards in terms of customer experience, that marks a turn in the way of addressing customer needs. Customer relations have been streamlined with the implementation of a fully digitised management platform that significantly speeds up decision-making processes, thus reducing response times – adding to the overall efficiency of internal as well as customer-facing operations.

This data-driven approach to consumer finance not only benefits all stakeholders, but also reaffirms Eqdom’s corporate mission statement which emphasises the company’s dedication to the well-being of its customers. Not just a set of hollow phrases or a generic set of good intentions, the mission is enshrined in the company’s DNA and explains its corporate longevity and health: “To accompany and support customers in achieving their goals, moving their projects forward, and manage unforeseen events.”

Thanks to a corporate structure that features built-in flexibility, Eqdom was able to adapt with remarkable nimbleness to the market upheavals caused by the corona pandemic. The company kept its network of branches open throughout the lockdown in order to stand by its customers throughout the emergency – and provide relief. The company’s agility immediately proved its worth by allowing back office staff to telecommute, thus reducing health risks whilst ensuring the continuity of operations. Front office processes were swiftly strengthened in order to provide quick, accurate, and prompt answers to queries from concerned customers. Moreover, Eqdom arranged hassle-free payment holidays to distressed clients.

In a sense, the pandemic has served as a massive stress test for the company – one that it passed with flying colours. In fact, the distinguished leader of Morocco’s non-banking financial services sector offers solid and incontestable proof that continuous corporate transformation is not only possible, necessary, and feasible but adds to institutional resilience as well. The company’s multichannel digital platform was designed around the core concept of remote interaction. The philosophy employed effectively detaches corporate operations from any physical infrastructure and thereby allows customers to connect instantly to a fully featured online service centre by means of any internet-enabled computer or mobile device.

Now available everywhere in the country 24/7, Eqdom’s new digital platform gives the company a truly nationwide footprint, reaching out to new customers whilst offering added convenience to existing ones. Users of the system may apply for credit with just a few clicks, taps, or swipes and can expect an immediate response. Nonetheless, Eqdom customers are not ‘talking’ to a machine and can at all times and stages request human assistance to clarify doubts, receive guidance, or supply additional information. By embracing technological progress without letting go of the human dimension, or losing sight of its corporate mission, Eqdom proves that transformation can promote financial inclusiveness when implemented thoughtfully – and with the customers’ best interests at its core.

Last but not least, it is interesting to highlight that Eqdom extends inclusion to its board of executives, which consists of a young and dynamic team from diverse professional backgrounds in perfect gender parity. This enhances Eqdom’s distinction as a looking-forward company that values competence, commitment and diversity. Also reflected in its overall staff headcount, 50-50 male-female ratio: the company sees this positive position as leverage for more effective and inclusive performance.


C2FO: Cash Flow During Times of Crisis — or Expansion

C2FO, whose stated mission is to deliver a future where every company, anywhere in the world, has the capital it needs to grow.

In these turbulent times it is concentrating on helping businesses to survive — but in some cases, managing surprising spikes in demand.

There are plenty of obvious reasons why businesses, small or large, need regular cash flow: to pay salaries and bills, to buy inventory, to drive growth. For many SMEs, though, the economic meltdown caused by the coronavirus pandemic has been a time of enormous stress in terms of liquidity.

In a recent C2FO survey, 75 percent of SMEs in the US stated that they lacked sufficient cash for the next six months. In Europe, 40 percent of SMEs report a liquidity shortage, especially in sectors such as hospitality, retail and construction.

"Thanks to quick and close collaboration, many C2FO buyers have introduced or retained invoice discounting programmes available to suppliers, sometimes tapping into third-party funding."

Fortunately, many governments and central banks have launched job-protection schemes and lending programmes directed to businesses. But these won’t last forever, nor reach all the SMEs in time. Even for companies with a healthy flow of orders, there is still the challenge of long payment terms of 60, 90, or 120 days — and of late payments. With liquidity scarce and precious, many companies have rushed to ask their customers for faster payment of outstanding invoices. Early payment discounts have been around for decades but online, on-demand and easy-to-use platforms have made them an attractive alternative to traditional funding sources, including borrowing.

C2FO runs more than 250 early payment programmes for large corporates (including 25 of the world’s 100 largest companies) which spend trillions with suppliers — many of them SMEs — every year. The strain on supply chains and the increased need for cash mirror the spread of Covid-19 across the globe. Demand from suppliers in China exploded in the run-up to the Chinese New Year. As the virus spread to to EMEA and the Americas, SME demands for accelerated payment increased more than tenfold.

Thanks to quick and close collaboration, many C2FO buyers have introduced or retained invoice discounting programmes available to suppliers, sometimes tapping into third-party funding. By accelerating receivables through the C2FO platform, thousands of SMEs providing goods and services to supermarkets have been able to keep up with increased demand and hire more personnel.

Pulling forward existing invoices has allowed other SMEs to cover fixed costs during the temporary shutdown. With new liquidity, a few companies were able to rapidly switch their production line: from cleaning supplies to disinfectant products, from children’s clothing to personal protective equipment.

With the flexibility to use early payment as needed, at discounts that they determine, SMEs can take control of their cash flow. And there are advantages for their customers. Buyers can increase EBITDA, gross margin, and earn a better return on short-term cash. However, the main modern drivers are supply chain health and continuity. As everyone knows, good suppliers are hard to find — and harder to replace.

C2FO believes that working capital is as important to commerce as water is to life. Freeing cash trapped between receivables and payables benefits everyone, ensuring greater liquidity for companies around the world.


Lord Waverley: Making the Case for Emerging Markets

The world awaits what emerges from post-Covid traumas. States will be required to consider how to balance budgets, how to derive income from which aspects of the economy to pay for essential services. There will be those who will dig in their heels and advocate an insular approach, others who will wish to kickstart economies by driving advantage of what remains of globalisation. This centre ground will become sought-after, as supply chain sources will be challenged by the option to secure non-historic marketplaces or to entrench nationally. Both are plausible.

Covid-19 has been a Litmus test for the strength of many frontier and emerging markets, with economic struggles highlighting structural frailty. Many developed-status nations tentatively believe they are approaching a recovery stage, while others urge caution over a second spike. Economies such as China and Europe are beginning the process of starting economic recovery. However, many of the emerging markets will suffer, disproportionately affected by their negative import and export marketplaces due to commodity-based economies.

A lack of international investments, caused by a lack of economic surplus, will lead to a system of increased borrowing against national debt, which will in turn affect emerging markets due to large contract-based employment systems and a lack of international stimulus. This does not bode well, and will haunt all nations in whichever economic category they find themselves, with the potential effect of the redrawing also of geo-strategic and geo-political relationships.

The impact on import and export markets cannot be understated, highlighting a greater issue within the current international system. A large proportion of those nations do not currently raise enough foreign currency through trade and exports or raise sufficient funds internally through taxation to pay off their debts. Debts that have usually been incurred by Tier-1 nations “supporting” massive infrastructure projects but outsourcing the construction to foreign organisations.

This will be exacerbated due to many not having the banking systems to issue enough bonds in their local currency in order to pay off borrowing. While there are exceptions to this for nations such as South Korea and the BRIC countries that have deep international ties with Tier-1 nations, states such as Peru or Kenya will be challenged by not having the strength of currency to support internal economic development. This will lead to borrowing against their own currencies which will lead to a cycle of circulating debt.

A complicating factor for those markets might also be increased resentment towards globalisation. Already international organisations are facing coercion from governments to exit foreign manufacturing markets to support their own struggling economies, resulting in the international system becoming more introspective.

The growing trade hostilities between China and the United States, and the impact this is having on foreign relations, is evidence of this. Both are fuelling hostilities and threatening sanctions while emerging market economies are suffering. Bluster from the West will not keep the world order as it was with more of an alignment to the East.

Many of the larger consulting and money firms are already reacting to how the impacts of tensions are dramatically reducing share values on Wall Street. The potential for a breakdown of relations will have an adverse impact on trading value, threatening the economies of many emerging, markets such as Pakistan and central African nations, that rely heavily on American and Chinese infrastructure investment.

While the potential for the economic growth of emerging markets has been foremost in our minds over the past decade, the idea that nations such as Turkey, Azerbaijan and others can engage with Tier-1 nations on an mutually beneficial and equal footing is at risk of fading. Historically it has been assumed that, with the growth of manufacturing capabilities of Tier-2 nations, their economies will naturally strengthen and grow in-line with an increasingly global consumer base.

This analysis has been conducted in the past based upon GDP purchasing parity due to financial crashes that increased isolationist tendencies of developed economies. It was anticipated that China, India and Brazil would be responsible for over 50 percent of the world’s economic growth, whereas the Eurozone was predicted to contribute less than one percent. Emphasis was being made on proposed significant advances that they would be making — but those advances have been eroded over the past two years, which have in turn damaged this modelling.

While manufacturing is often outsourced from Tier-1 nations that benefit emerging markets, any potential stagnation in the international economy will disproportionately affect Tier-2 nations, and severely limit their ability to develop sustainably, leading to boom-or-bust economic policies. Sustainable investment in these nations is crucial, not only for generating rewards for conglomerates, but with the added benefit for a more integrated global economy.

With the right support, emerging markets should be able to adapt more quickly to the pandemic as they can benefit from the experience and scientific resources of Tier-1 nations. Access to this knowledge can help arm developing organisations with the best business practise to assist full recovery. While such co-operation is preferable, with the concentration of expertise centred within western Europe and the US, addressing this imbalance is crucial.

While this is beneficial for Tier-1 economies, many organisations have now learned that to function in an increasingly volatile international market, diversity of supply — and not concentrating the sourcing or manufacturing of a product from within a single geographical location — is preferable. Companies have learned to “atomise” their supply chains and so drive-down manufacturing costs and increase efficiency resulting from multi-tier supply change re-configurations.

Diversification of global supply will however carry the risks of increased logistics costs. An increasingly volatile international system and the problems of concentration outweigh the logistical challenges of atomisation. A take-away from 2020 is that diversification in supply chain management and the implementation of a more global approach to business will not only assist recovery, but have the effect of better protecting future business interests. Modern advances in technology will significantly reduce the frictional distance between nations, thus providing the platform to bridge the gap between developed and developing nations.

This new-found sustainably will also allow for local development through increased regional wages and the development of a stronger local consumer-based economy. Supporting Tier-2 consumers through investment will also be beneficial for the consumer in Tier-1 nations as increased competitiveness in the global system encourages innovation and drives down prices for commodities and services. Emerging markets will grow at a rapid rate. Ethiopia, for example, recently shared the view that the country has colossal potential for export — but requires investment to increase the value-added possibilities. This is good for all parties concerned.

Investment in the technology sector is particularly viable as developing nations will be able to capitalise on the benefits of current trends without being associated with heavy research and development costs. With increased support from businesses working internationally, governments will become more connected, and develop their capacity for closer co-operation centred around development and trade. That can only be a good thing.

Support for emerging and frontier markets with their low production costs, flexible working practices and the opportunity to establish in a rapidly growing consumer market that is currently undersaturated have the potential to reap rewards. Any organisations that are internationally minded, but adhere to the saturated established markets, will miss out on the next generation-defining investment opportunities. Exceptional times require innovative change, which requires unorthodox solutions to challenges.

What is lacking is the pragmatic co-operation of governments and multipliers to provide access to the requisite information. The potential for reward is high. The effective bridging of the gap between knowledge and action will have the power to unlock the potential. I wish decision makers well as they grapple with the challenge ahead.

About the Author

[caption id="attachment_13312" align="aligncenter" width="500"] Author: Lord Waverley[/caption]

Lord (JD) Waverley
Member
House of Lords, London

Founder
SupplyFinder.com

Strategic Advisor
SmarterContracts.co.uk

jd@lordwaverley.com


Chairman and CEO of JPMorgan Chase Jamie Dimon: Outspoken, Ambitious, and Smart

[caption id="attachment_16730" align="alignright" width="300"] Chairman and CEO of JPMorgan Chase: Jamie Dimon[/caption]

He is the archetypal Davos Man and, as such, no stranger to controversy – or grand visions. What makes Jamie Dimon endearing is his eagerness to go out on the proverbial limb with bold statements that, at times, bespeak of a rather selective memory or a mind on overdrive.

In January, whilst at Davos for the annual World Economic Forum summit, the CEO of JPMorgan Chase suffered a bee in his bonnet and spontaneously embarked on a twelve-minute rant against socialism and all other forms of state interference with private enterprise. His conclusion: Governments are very bad at allocating capital.

That was a tiny bit rich for a banker who in 2012 admitted to getting the math horribly wrong on a series of singularly poky hedges – collectively known as the London Whale – which ended up in a pre-tax $2bn trading loss. A few years later, JPMorgan Chase needed $25 billion in Treasury support to keep its business afloat in the wake of the 2008 banking crisis.

Other than his slightly flippant thinking about politics and macroeconomic management, Dimon is a cautious banker, albeit one with a progressive streak, who recognises that in order to stay ahead a degree of boldness is called for.

Next year, JPMorgan Chase will try to shake up UK retail banking with the launch of an online challenger bank. In the US, an attempt at mobile banking was abandoned after only 18 months. After attracting only about 47,000 customers, Chase shuttered its Finn brand, funnelling some of the online bank’s most innovative features to the Chase mobile app.

Dimon ascribed the Finn failure to bad timing and gaps in customer care. In the UK, he hopes to cash in on the corona-inspired crash of branch-based banking. However, challengers linked to legacy banks have not been overly successful in the UK either with Natwest closing down its Bo mobile bank just six months after its introduction. Goldman Sachs has done a bit better with Marcus which managed to amass over 500,000 clients and accumulate some £21 billion in deposits. These numbers pale in comparison to domestic digital disruptors such as Starling, Revolut, and Monzo which jointly serve more than 17 million customers.

Fifteen years into his rein at JPMorgan Chase, Dimon is an industry veteran who has watched presidents, central bankers, and economic downturns come and go whilst navigating his financial behemoth. With over a quarter of a million employees and total assets of $2.7 trillion, JPMorgan Chase is ranked the largest bank in the US by S&P Global and the seventh largest in the world.

Exceptionally susceptible to market volatility and brusque swings in consumer confidence, the JPMorgan Chase CEO seems a bit unsettled by the pandemic and the prevailing lack of certainty. The bank is substantially adding to its already solid loan-loss provisions. During a recent conference call with investors, Dimon held out hope that the US economy may be more buoyant than previously thought and that he may have erred on the side of caution. The bank’s share price promptly spiked.

An avid commenter on current affairs, just as fellow New York business tycoon Mike Bloomberg, Dimon spent the better part of 2018 mulling a presidential run, ultimately deciding against it out of a justifiable conviction that no mainstream party would want a banker on the ticket. From his Park Avenue office, he did take a few swipes at the current occupant of the White House and assured that he could beat him in an election: “I’m as tough as he is, I’m smarter than he is.”

Instead of running for office, Dimon decided to share his thoughts with JPMorgan Chase shareholders, outlining his solutions – and, rather surprisingly, setting a good example. Dimon was the initiator of a $350 million job training programme targeted at underserved communities and seeking to equip people with the skills necessary to climb the corporate ladder. Last year, he also unveiled a $500 million bank-sponsored initiative to revitalise neglected inner cities. In his 51-page letter, Dimon expressed disappointment in party politics and in its inability to meet the social needs of many US citizens, before suggesting a Marshall Plan-like federal programme to fix US society: “If we don’t tackle the issues, America’s moral, economic, and military dominance may cease to exist.”

A banker with more than just pecuniary concerns: It may help explain why Dimon survives at the top and – uniquely – fails to make many enemies. Given the age cohort of the present crop of US political heavyweights, Jamie Dimon has ample time to consider a career change yet: He’s just 64.