Year: 2018

Bayer to retire Monsanto’s name upon completion of merger

Posted on by Max Tomlin

On June 4, German drugmaker Bayer announced it would retire the Monsanto name upon closing its acquisition of the company, taking its products under Bayer’s portfolio. The merger, which received regulatory approval on May 29, is set to close on June 7 and will be the biggest outbound merger by a German company since Daimler-Benz bought Chrysler in 1998.

Retiring Monsanto’s name from Bayer’s portfolio is a prudent public relations move for the German company

Retiring Monsanto’s name from Bayer’s portfolio is, apart from standard M&A practice, a prudent public relations move for the German company. Monsanto has received heavy criticism over the years for a series of controversies, mostly related to its strict control of its genetically modified crops.

The company has been accused of driving farmers into debt by not allowing standard farming practices, like carrying over seeds into the next season and litigating farmers for proprietary seeds that may have blown onto their fields from neighbouring farms. In India in particular, Monsanto’s business practices were widely blamed for being a factor in a spate of farmers’ suicides. Monsanto has disagreed with these accusations, arguing that its patents and tactics are necessary for protecting its business interests and the millions of dollars it has spent on research and product development.

As part of the US Department of Justice’s approval of the merger, Bayer also agreed to divest its business units that were in competition with Monsanto, as well as certain intellectual property and R&D projects that overlap with Monsanto’s portfolio.

“The acquisition of Monsanto is a strategic milestone in strengthening our portfolio of leading businesses in health and nutrition,” said Bayer Chairman Werner Baumann in the statement.

“We will double the size of our agriculture business and create a leading innovation engine in agriculture, positioning us to better serve our customers and unlock the long-term growth potential in the sector.”

Bayer also announced a stock sale to raise capital for the $66bn deal. The company says it will generate a gross revenue of €6bn ($7.03bn) from the sale of 74.6 million new shares. Stockholders will be able to buy two new shares for every 23 shares they currently own.

Recall Capital launches dynamic market trading solution in London

Posted on by World Finance

Recall Capital is a dynamic trading solutions provider, promising listed companies lower volatility, increased trading volume, and a platform for new capital acquisition and internationalisation. Founder and CEO Björn Wallin has been working with SMEs in Sweden for four years, and the company is now expanding its offering through Europe. Björn explains how Recall Capital creates a mini ecosystem for each of its client companies: drawing money from the financial market, creating value within the business, and feeding that value back to the market. The ultimate benefit, he says, is that SMEs can concentrate on developing their business – rather than having to worry about financing themselves.

World Finance: How has market behaviour changed, that companies now need these kinds of services?

Björn Wallin: First of all, investors have become more realistic today than they have ever been before. They are not so blindly optimistic anymore.

As a consequence of that, I think SMEs have to take more responsibility for themselves. It’s not that they can’t count on the financial market to provide it with money or assets as they have done before: they now have to deal with this themselves. No one else is doing it, so it’s more pressure on management and the board of directors that they have to actually handle all this to get the company financed.

World Finance: Now, the New York Stock Exchange has been offering these services itself for many years; what’s been its impact there?

Björn Wallin: Basically they’re doing half of what we are doing. They have what we call the designated market maker, which is a technical solution topped up with a human touch. We’re doing roughly the same – having the same parameters, specialising in SME companies – but we’re also using this trading solution for the capital acquisition side.

So, we’re creating a mini ecosystem for every company that we have in the financial markets. We add on a tap, straight into the market. Open it up a little bit, get the money over to the company so they can use it for their operation; create value, it goes straight back into the financial market. We open up the tap again, and we get the money, close the tap, over to the company so they can create, and loop back to the financial market… so this is like an ecosystem for SMEs.

World Finance: And what effect does that have on trading volumes and volatility?

Björn Wallin: So basically there are strict relations between volumes, values, and volatility. And all algorithms out there in the market are actually trying to handle all those parameters.

What we have done is actually, we have looked at specifically SMEs. We measured 20,000 companies worldwide, just to understand how these relations are combined to each other. And when we found that out, we added other dynamic aspects as well. We’re adding on different patterns from the behaviour in the trading, the likely volatility ahead; and on top of that we also put some human touch.

The result of it is lower volatility, which is super good for all kinds of trading. So I think our trading engine is more appropriate for SME companies.

World Finance: And in this way you’ve adapted this solution specifically for SMEs – and SMEs in Europe, as well?

Björn Wallin: Yes, absolutely. We’re now going into Europe – but we can use it anywhere, because now we’re looking into the SME market globally. There’s the same pattern, the same behaviours, basically the same everywhere.

What we have to consider from country to country is some kinds of legislation, or if there are certain other adjustments we have to make. But basically we can use it anywhere.

So I would say, we’re now entering Europe. The biggest SME markets are Australia, Canada. But, let’s start in Europe.

World Finance: And what’s the ultimate benefit to those SMEs?

Björn Wallin: I think the best benefit is that the customer can actually get more focused on creating and developing their own business, and let us handle the financial issues.

I think that’s good for the company, I think that’s good for their shareholders as well. So it’s a classic win-win solution.

World Finance: Björn, thank you very much.

Björn Wallin: Thank you.

Federal Reserve announces proposed changes to Volcker Rule

Posted on by Max Tomlin

On May 30, the US Federal Reserve unveiled proposed changes to the compliance requirements of the Volcker Rule, one of the foundational pillars of the Dodd-Frank Act that was put in place in the aftermath of the financial crisis.

Critics see the move as a continuation of the Trump administration’s undoing of measures put in place to prevent another financial crisis

Generally speaking, the Volcker Rule puts limits on proprietary trading by banks. Proprietary trading allows banks to make risky bets with the bank’s own funds for the purpose of direct profit, as opposed to the indirect revenue received via commission from the trades they make on behalf of clients. The rule was put in place to limit the losses a bank can suffer from risky trades with customers’ federally insured deposits.

According to the Fed, the changes seek to: simplify the information that needs to be given to agencies on banks’ trading activity; base compliance requirements on the size of a firm’s trading assets; and simplify the criteria banks must meet to be eligible for the Volcker Rule’s hedging exception, among other things.

“The specific elements of this proposal are drawn from experience – the shared experience of all five responsible agencies and of policymakers at those agencies with wide and varied backgrounds during the four years that the Volcker Rule regulations have been in force,” said the Fed board’s vice chairman for supervision, Randal K Quarles, in the statement.

“By focusing the application of the rule on those firms with the highest levels of activity covered by the statue, and by clarifying and simplifying the compliance regime, we can promote safety and soundness, while reducing unnecessary burdens.”

Critics see the move as a continuation of the Trump administration’s undoing of measures put in place to prevent another financial crisis. The Dodd-Frank Act also saw another partial rollback in May, and the consumer Financial Protection Bureau has been largely defanged by its administrator, Mick Mulvaney, who was a vocal critic of the institution’s mission before being appointed to lead it.

Baiduri Bank CEO: Digitisation must pair with personalised, human service

Posted on by World Finance

Brunei’s wealth depends on its oil and gas sector, representing more than 60 percent of the country’s GDP. Decades of diversification efforts have yielded small progress, although in recent months the country has seen significant FDI windfalls from China, with investments now totalling over $4bn. Baiduri Bank is one of the leading banking groups in Brunei, and its CEO, Pierre Imhof, discusses the country’s continuing work to diversify its economy, how Baiduri Bank is participating in those efforts, and digitisation in Brunei’s financial services.

World Finance: Pierre, how urgent is Brunei’s need to diversify its economy?

Pierre Imhof: Oh, definitely it’s very urgent. As you rightly said, for many years the country was relying on the oil and gas income. Definitely it is something which is very important to the country. But it’s time now to move forward.

For example, there are bodies like DARE, Darussalam Enterprise, which is helping SMEs and the private sector to develop and diversify. There is another body, the Brunei economy development board, the role of which is to attract foreign direct investment, and as you mentioned earlier, you see more and more investments from abroad. Especially from China.

It’s good for Brunei that oil and gas prices have increased in the last few months, but I think there is now an awareness by everyone in Brunei that diversification is a must.

World Finance: How is Baiduri Bank participating in these efforts?

Pierre Imhof: We are working to develop products which are designed to help small companies to finance their working capital, to finance their acquisition of premises. But we have also other products which are not strictly related to financing.

For example, we have corporate credit cards – now you know even companies are doing a lot of payments online, so it’s important. For smaller companies which do not have always the means to have a full website, we have developed an app, MerchantSuite, to allow these companies to let their clients pay online.

We have mobile applications, we have internet banking of course; so, a lot of services going beyond pure financing.

World Finance: And on the retail side, how are you helping customers take control of their finances?

Pierre Imhof: It’s very important that for our retail clients we give them not only the expected services from a bank; but also advice, to make sure that our clients are well aware of what they can do and what they should do.

So for clients who have excess liquidity, who have some money to place: to advise them where to go, what to do, depending on their risk appetites. And we make sure that when we talk to our clients that they will not be in a situation of over-indebtedness.

But we go beyond that. We also have what we call a free financial assessment, where we provide to our clients some additional information or additional advice for them to know how to plan their retirement, how to finance the acquisition of a home. So, we are giving a lot of very personalised advice to our clients.

World Finance: And how is Brunei’s financial sector evolving along with the global trends in financial services?

Pierre Imhof: There is a real digital revolution all around the world. Now it affects the financial environment – all banks. And we are working in an environment in Brunei which is techno-savvy. So definitely the country is moving forward to good modernisation of the banking environment.

World Finance: And how is Baiduri Bank positioning itself in this context?

Pierre Imhof: Baiduri Bank wants to offer to its clients what they expect in terms of digital banking.

Definitely when it concerns banking transactions, it is very important that it is easy, fast, and simple. In that respect with the digitalisation that is what we want to achieve.

But we also want our clients to have access to more personalised and human advice: an account officer, a relationship officer, with whom they may talk, from whom they may get advice, either on the phone or physically in our branch network.

Digitalisation is great, but it has to go together with a personalised banking service.

World Finance: Pierre, thank you very much.

Pierre Imhof: You’re welcome, thank you.

IGC unearthing pioneering Alzheimer’s treatment

Posted on by Max Tomlin

A recent breakthrough could put cannabis at the forefront of the treatment for Alzheimer’s, a progressive disease that is the most common cause of dementia worldwide. So far, there are several therapies targeted towards Alzheimer’s disease, but their efficacy is restricted to delaying the onset of symptoms, rather than reversing their effects. This may be about to change, however. Hyalolex is a cannabinoid-based formulation, derived from IGC-AD1, targeting Alzheimer’s, which is being developed based on the research carried out at the University of South Florida (USF) College of Pharmacy. Today, the treatment is swiftly gaining attention thanks to a series of findings that show it reversing some of the effects of Alzheimer’s worst symptoms. Indeed, pre-clinical trails of IGC-AD1, on which Hyalolex is based, have demonstrated promising results in substantially turning back memory loss and restoring learning ability in rodents.

In-vitro trials and some human trials have been a success, and the triumph of preclinical trials bodes well for rolling out IGC-AD1 on a mass scale

Dr Chuanhai Cao, a leading scientist in Alzheimer’s research and Associate Professor of Pharmacy at USF, discovered that in combination with other naturally occurring compounds, Tetrahydrocannabinol, or THC, the principal psychoactive chemical compound found in cannabis, helps slow down the build-up of plaque in the brain – a hallmark of Alzheimer’s disease.

Specifically, the study conducted by Cao and his team investigated the effects of IGC-AD1 on learning and memory using the Morris water maze task. The test, which is commonly employed in behavioural neuroscience research, involves presenting mice with a water navigation task in which the mouse must learn from an assortment of cues to find its way through a pool of water onto a platform.

“Mice with Alzheimer’s that were treated with IGC-AD1 were shown to exhibit significantly decreased learning errors, with a 50 percent improvement when compared with the control group,” said Ram Mukunda, CEO of India Globalisation Capital (IGC), the cannabis-based pharmaceutical company behind Hyalolex. He explained: “Mice with no Alzheimer’s markers completed the maze in two seconds, while mice with Alzheimer’s markers completed the maze in eight seconds. Mice with the Alzheimer’s markers that were treated with IGC-AD1 completed the maze in four seconds, demonstrating potential for efficacy of the candidate.”

The Alzheimer’s curse
While the most known affliction of Alzheimer’s disease is the loss of memory, which can be extreme in many cases, it also involves a host of other unfortunate symptoms. These include anxiety, agitation and sleep disorders. Being a degenerative disease, such end points often worsen as time goes on. In correlation, as the disease progresses, abnormal proteins continue to accumulate in some brain cells. Together with dead brain cells, these then impede the ability of nerve cells to send and receive messages through the brain’s neuron network.

$236bn

Estimated amount Alzheimer’s costs the US annually

$758bn

Predicted amount Alzheimer’s will cost the US annually by 2050

Amyloid plaques, which are dense clusters of protein fragments found in the spaces between nerve cells, and neurofibrillary tangles, involving the twisting of the nerve cells’ tau protein threads, known commonly as plaques and tangles respectively, are the pathological hallmarks of brains affected by Alzheimer’s. According to the Alzheimer’s Association, the reasons behind tissue loss and cell death are unknown, but plaques and tangles are suspected to be the cause.

Out of the world’s top 10 most deadly diseases, Alzheimer’s is the only one to be increasing in prevalence. As cited by the Alzheimer’s Association, the disease has already become the sixth leading cause of death in the US, affecting more than 5.5 million people in the country. It is also estimated to have an annual economic cost to the country of $236bn. Given the rising numbers of those suffering from Alzheimer’s (figures are expected to double over the next two decades), the cost is forecast to swell further to around $758bn by 2050, thus creating an extraordinarily pressing need for effective treatment.
While pharmaceutical companies have spent astronomical amounts trying to cure Alzheimer’s disease, the discovery of a viable treatment remains elusive. This comes back to the fact that researchers remain unsure as to its exact causes. One of the leading theories however, is that the disease is caused by the accumulation of amyloid plaque on neurons in the brain.

“The good news surrounding cannabinoid-based therapy is that it acts on several different hypotheses of disease modalities,” said Mukunda. Essentially, the drug works by targeting the reduction of beta-amyloid build-up in Alzheimer’s patients, as demonstrated by research conducted at USF using an animal model. The research found that cannabis extracts actually reverse beta-amyloid accumulation. The implication, therefore, is that Hyalolex is a potential mechanism for restoring memory function in Alzheimer’s patients.

What’s more, in June 2017 IGC announced that it had acquired the exclusive rights to THC-based treatments for Alzheimer’s disease, a definitive licence agreement it entered into with the USF. “By acquiring this patent filing, we have essentially protected the potential cannabis-based blockbuster treatment for America’s most expensive disease,” said Mukunda.

Two-pronged strategy
IGC is now in the complex process of commercialising Hyalolex for Alzheimer’s disease, which it is approaching through a two-pronged strategy. The first prong involves selling the liquid supplement formulation through licensed medical cannabis dispensaries in the US. “We will begin the initial distribution of Hyalolex in Maryland, Washington DC and California during the first quarter of 2018,” said Mukunda. “We plan to expand into remaining states throughout the country in a second rollout that will take place during the rest of the year. To do so, we must manage sourcing, formula assembly, packaging and distribution utilisation for each state on an individual basis.”

The next step involves attaining FDA approval; a notoriously difficult task for new drugs. To do so, a Phase IIb clinical trial for a pharmaceutical-grade formulation of Hyalolex for Alzheimer’s disease is in the pipeline. This stage looks to test varying dosages on patients in order to determine the ideal dosage, while also assessing efficacy and side effects. “The success of preclinical mice studies is the precursor to patient studies, which ultimately pave the way to FDA trials,” Mukunda noted.

That said, IGC’s ambitions do not rest solely on FDA approval. “Independent of the FDA process, we expect to license Hyalolex for distribution as a complementary and alternative medicine via licensed medical cannabis dispensaries throughout the US and Canada,” Mukunda explained. “These activities can generate nearer-term revenue while clinical trials progress, which in turn creates both short and long-term value for shareholders.”

Naturally, the US is not the only place in which people suffer from Alzheimer’s every day; unfortunately, this disease impacts the lives of millions across the globe. As such, in addition to the US and Canada, IGC has also identified Germany for the commercialisation of Hyalolex. “The German market recently opened for imports of cannabis products that can be sold in licensed pharmacies,” Mukunda told World Finance. “Our initial research indicates that there are about 7.8 million patients with Alzheimer’s in these combined markets [of US, Canada and Germany].”

Harnessing a tech cure
In addition to its revolutionary work in treating Alzheimer’s disease, last December IGC announced plans to utilise blockchain technology in order to address industry issues pertinent in particular to the medical cannabis industry. “We are seeking to address areas such as product identification assurance, inadequate product labelling, transactional difficulties, and product origin assurance,” said Mukunda.

Blockchain technology, which uses cryptography to manage large databases securely, has far more potential than just the financial sector. IGC, for example, is keen to make use of the technology’s ever-expanding ledger. “The company intends to develop a platform for Hyalolex’s go-to-market strategy in the dispensary market, with an aim to leverage the platform for the highly regulated and rapidly evolving cannabis industry,” Mukunda told World Finance.

According to a recent study published in the medical journal JAMA, almost 70 percent of all cannabidiol products that are sold online are either over or under-labelled. “We understand the unique challenges facing the cannabis industry, but we believe that our team has the knowledge and expertise to be the first organisation to create meaningful solutions that address such issues using the distributed ledgers inherent in blockchain technology,” said Mukunda. “As we continue developing blockchain technology in the rollout of Hyalolex, our goal is to establish a universal cannabis platform that is applicable to solving multiple industry challenges facing both dispensaries and consumers alike.”

Until now, the hopes for effective treatment for Alzheimer’s have been as despondent as the symptoms of the disease itself. For too long, individuals have suffered its horrible effects, losing their lives and themselves in the process. Naturally, their families have also been impacted and devastated as a result. But for the very first time in recent history, there is hope – hope that Alzheimer’s is not the end, and that there may in fact now be a way out. While some may view cannabis-based treatments as controversial, their ability to treat a whole variety of ailments has been proven time and time again. Indeed, cannabinoids seem to have a knack of stepping in and filling a gap that chemical compounds and common medicines simply cannot.

With the likes of IGC driving the momentum for an actual cure for Alzheimer’s disease, it could be here closer than we think. As demonstrated by the organisation’s proactivity in terms of trials with world-leading scientists, as well as its adoption of cutting-edge technologies such as blockchain, IGC is on the case to treat Alzheimer’s once and for all.

Unifin delivering first class financial services in Latin America

Posted on by Max Tomlin

For 25 years, Unifin has been providing its clients with high-quality financial services. By offering a broad spectrum of loan and leasing options, the company has established itself as one of the leading independent companies within Mexico’s financial services sector. Unifin’s rise hasn’t always been plain sailing, however.

Unifin supports good governance practices by having an experienced management team, as well as the mechanisms and structures to support its operation

With the company having only been in existence for a year at the time, the Mexican financial crisis of late 1994 threatened to undermine Unifin’s early successes. With debt spiralling, company founder Rodrigo Lebois Mateos refused to let standards slip, prioritising quality service as a way of surviving in a challenging economic landscape.

While many financial services companies in Mexico declared bankruptcy or ceased to exist altogether, Unifin paid back every penny of its debt, turning adversity into a vital lesson for future success. World Finance spoke to Sergio Camacho, CFO at Unifin, about how the company ensures it delivers excellence at all times, especially when the going gets tough.

Can you outline what you do as a company? 

Unifin is the leading independent leasing company in Latin America. It has three main business lines that operate leasing, factoring, automobile loans and other financing solutions. Our main business is operating leasing for different types of machinery and equipment, transportation vehicles (such as cars and trucks) and other assets for a variety of industries. Through our factoring business, we provide financial and liquidity solutions, purchasing or separating out our clients’ receivables or, when necessary, their suppliers’ receivables. Unifin’s auto loan activities involve loans for the acquisition of new or pre-owned vehicles.

Can you describe Unifin’s structure?
Unifin Financiera has two subsidiaries: Unifin Credit and Unifin Autos. Through Unifin Credit we carry out factoring, as well as auto and other loan operations, while asset purchases and sales occur via Unifin Autos. Unifin Financiera has three main management pillars: business, operations, and administration and finance. We pride ourselves on having high standards of corporate governance, fostering a strong feeling of trust among customers and investors alike, and ensuring that we comply with all the necessary regulations that apply to publicly traded corporations. Unifin also possesses a highly experienced management team with best-in-class processes.

Our board of directors is made up of highly experienced independent members who are part of diverse, well-known companies such as Chevez Ruiz Zamarripa, IXE, KUO, Citibanamex, Deutsche Bank and Promecap. Regarding its corporate governance, Unifin has 10 committees that gather periodically throughout the year. Similarly, the board of directors and our audit and corporate practices committee meet quarterly. The finance and planning, systems (IT), communication and control (anti-money laundering), marketing, and corporate credit committees meet monthly, while the portfolio management team meets weekly. Finally, the two committees that meet most frequently are the electronic credit and credit committees, which meet every 24 hours and twice a week respectively.

In what ways does this structure support good governance?
Unifin’s structure supports good governance because it enables each committee to oversee specific issues and report back its concerns so that no problem goes unattended. One of Unifin’s greatest strengths is its solid corporate governance and its adherence to all the relevant regulations, complying with the high standards issued by the Business Coordinating Council in its Best Practice Code. We support good governance practices by having an experienced management team, as well as having the proper mechanisms and structures to support its operation. These include the adherence to a strict code of ethics (grounded in the corporate values of quality, service, commitment and honesty), which, alongside our regular committee meetings, ensure that all of our employees strive for the highest possible standards in their daily interactions.

What is the composition of the Unifin board and what expertise do its members have?
Unifin acknowledges that strong corporate governance has been a key driver of our success. Unifin’s board of directors consists of 50 percent independent members, which brings impartiality and a freshness that far outweighs any constraints. Our board of directors and management team have broad experience in the financial services industry, having previously held positions with banking institutions, as well as with financial factoring, insurance and other lending firms.

Our board is highly specialised, knowledgeable and with diverse experience as C-level officers. The continuing support of our shareholders has also been a significant contributor to our sustained growth. We believe that our management team, board of directors and controlling shareholders are key differentiating factors for the company, particularly with regard to their knowledge, experience and support.

What measures have been taken to analyse risk and create a corporate strategy?
We have historically issued debt and equity securities through public offerings under the supervision of the Comisión Nacional Bancaria y de Valores (CNBV), Mexico’s banking and securities regulator, which requires us to comply with high standards of corporate governance, mandatory reporting guidelines and other regulations as a publicly traded corporation. Indeed, we have employed PWC as our independent audit firm for many years. We believe this distinguishes us from other non-banking and privately held competitors and creates a high degree of trust among our customers and investors. As mentioned previously, our board of directors currently comprises 50 percent independent members, and we have also established an audit and corporate practices committee that is comprised entirely of independent members.

Our audit and corporate practices committee is responsible for the approval, review and amendment of the general guidelines for our internal controls and audit. Our management is responsible for implementing and monitoring our standards of internal control to ensure the integrity, reliability and timeliness of our financial information. Our operations are supported and regulated by an enterprise resource planning system, which monitors and registers our operating income. Our internal control system is based on the segregation of responsibilities, and its processes are in accordance with our internal policies and applicable law. 
We have an internal audit team, which has developed an operating risk management methodology and framework that allows us to identify, analyse, quantify and prioritise possible loss events. This also allows us to establish the proper actions to mitigate, transfer or assume operating risks, and to monitor and control risk in a standardised manner.

Can you give examples of how you keep up a high level of communication with shareholders, investors and analysts?
We are proud to say that Unifin is a very transparent company. We are proactive communicators that are always open to talking to our investors and stakeholders, and we publish public notices whenever necessary. Since we are a publicly traded company, we are in part supervised by the CNBV, which requires us to comply with high standards of corporate governance and the release of relevant information to the market, as well as many other regulations.

How do you ensure transparency with shareholders?
Unifin strives to ensure communication with all its shareholders, either by being available via telephone, through email, arranging face-to-face meetings, deal and non-deal roadshows, conducting annual shareholder meetings, or sending notices to investors. Through these and other mechanisms, the company ensures that minority shareholders are heard and their concerns and opinions are voiced.

Which committees regulate Unifin and how do they work to ensure its prosperous growth and sound financial health?
In a sense, all committees help with regulatory oversight and ensure the company abides by the highest possible standards in everything that we do. Additionally, Unifin’s Audit and Corporate Practices committee is responsible for the approval, review and amendment of the general guidelines for our internal controls and internal audit. Moreover, to avoid and dissuade any form of bribery or corruption, we have implemented several control processes that begin at the hiring stage to ensure all job candidates comply with our stringent code of ethics.

Regarding anti-money laundering and terrorism financing prevention, we are required to comply with all applicable laws and regulations. These require Unifin and its subsidiaries, among others, to adopt and enforce Know Your Customer’ policies and to report suspicious and large transactions to the relevant authorities. Such regulations have become increasingly complex and detailed over time and require effective control systems and highly qualified personnel for the supervision of and compliance with such rules.

What is your strategy to ensure prosperous growth and financial health in the years ahead?
Unifin excels at being extremely prudent in the underwriting process and, as such, each of our clients receive a detailed and in-depth analysis. This process starts at the prospecting stage and continues through a credit analysis based on Unifin’s robust scorecards. We take into consideration the portfolio management platform and access the client’s electronic information, utilising credit bureaus, legal bureaus, banking references, as well as their SAT (Mexico’s tax administration service) history. The company builds all of its contracts on a robust legal framework and strengthens this further through a legal deposit. All of these approaches, in addition to substantial investments in IT, have helped to ensure Unifin’s robust financial health.

Portugal reaping the rewards of the Golden Visa programme

Posted on by Max Tomlin

Portugal is one of the oldest countries in the world, with nearly 900 years of history demonstrating its strong identity and internal cohesion. The country is politically and economically stable and welcomes all nationalities. It is part of the Schengen Area and is one of the safest countries in the world. Its history, culture and beauty, alongside its hospitality, gastronomy and affordable cost of living, are just a few of the country’s main selling points.

The Golden Visa programme has had a huge impact on the Portuguese economy, generating a significant increase in property transactions

Investors are also increasingly keen to explore the benefits that Portugal has to offer. The tourism and start-up scenes are thriving and, as a result, foreign investment is pouring in. The country’s Golden Visa programme has proven particularly attractive to high-end investors, providing the real estate market with a much-needed boost. PTGoldenVisa, winner of the 2017 World Finance award for Best Wealth Management Provider, Portugal, offers a full range of professional services to help its clients during every step of the investment process. World Finance spoke to Tiago Camara, Co-Founder and Partner at PTGoldenVisa about how international investors can take advantage of the many opportunities that Portugal has to offer.

What is the current state of the real estate market in Portugal?
The real estate market in Portugal is providing investors with capital appreciation on their properties of around 10 percent per year. The reasons for this are twofold. First, Portuguese citizens are taking their money out of banks and investing it in real estate, where they are able to generate much more income through rents. Second, foreign investors, driven by programmes like the Golden Visa initiative and the non-habitual residency regime, are also increasing their real estate investments. Portuguese real estate is a safe haven for domestic and foreign investment and there is no evidence to suggest the existence of a property bubble. At the moment, the only issue is that supply can’t keep up with demand.

What impact is the tourism industry having on real estate investments?
Tourism is the main industry in Portugal. In 2016, the Portuguese tourism trade balance was €8.8bn ($10.8bn), having increased by 12.7 percent on the previous year. As a result of this growth, the real estate market is undergoing significant changes, with foreign investment funds buying properties to transform into hotels or apartments. The boom in short-term rentals is bringing new life to historic neighbourhoods, where small investors are buying new properties or renovating old ones. In the major cities, investors are receiving a rental yield above five percent annually.

What effect has the Golden Visa programme had on real estate investments?
The Golden Visa programme has had a huge impact on the Portuguese economy, generating a significant increase in property transactions. So far, €3.5bn ($4.32bn) has been injected through the Golden Visa programme, with 95 percent of this investment in real estate. Last year, around 30 percent of all real estate transactions made by foreign investors were done so with the objective of getting a residence permit card.

Could you explain the typical profile of a Golden Visa investor?
Our clients are high-net-worth individuals, non-European and, more often than not, expat business owners who are currently living in the Middle East or Asia and are not willing to relocate. As investors, they are interested in acquiring secondary citizenship in order to be able to choose where they live and access different business markets without having to apply for visas. Being able to provide a better quality of life for their families and, if necessary, reach a safe haven in times of political instability is also important.

Why is there such a big demand for Portuguese investment funds from overseas investors?
The recent changes to the Portuguese Golden Visa programme allow clients to qualify for a residence permit card by making a minimum investment of €350,000 ($432,124) in a Portuguese investment fund, which is fully regulated by the Portuguese stock exchange market and audited by third-party companies. This option comes free of taxes and is focused on bottom line investment and high returns.

PTGoldenVisa is currently working on the implementation of the first investment fund in Portugal to qualify for the Golden Visa: the Safe Investment Fund (SIF). The SIF Portugal is centred on two strategic focal points: investment in real estate to sell on, and investment for the purpose of renting out. The investment period is seven years, it is custom designed to meet the Golden Visa requirements, and it should generate over six percent return per year. Considering that the overall market has an annual growth rate of more than 10 percent, this fund takes a conservative but reliable approach to investment.

The changing face of trading

Posted on by Max Tomlin

Trading is a profession with a long history, but modern technology has caused it to experience profound changes. This is particularly the case when it comes to day trading, which has seen a significant demographic shift.

Recent has shown that 18-to-34-year-olds now account for 65 percent of all online traders in the UK, a figure that has increased year-on-year since 2015

Recent research from BrokerNotes has shown that 18-to-34-year-olds now account for 65 percent of all online traders in the UK, a figure that has increased year-on-year since 2015. At the same time, the proportion of traders over the age of 45 has dropped, marking a clear shift towards a younger demographic.

Another interesting shift is that women are gradually becoming better represented in the industry, with statistics showing that one in 10 of all traders are female. This change cannot come fast enough, especially considering recent research by behavioural economists, who have found that men’s hyperactive trading makes them statistically inferior traders to women.

To discover more about the transformation, World Finance talked to Ricardo Evangelista, International Desk Manager at ActivTrades, a leading online broker providing trading services in forex, contracts for difference and spread betting.

65%

Percentage of UK online traders aged 18 to 34

75%

Percentage of traders aged 18 to 34 who trade cryptocurrencies

What key factors are driving this change?
For one, some brokers have been actively targeting a younger audience. But analysts have also attributed the age shift to the emergence of cryptocurrencies, which has been a major talking point in recent years. In response to their rising popularity, brokers have introduced a range of new currencies to the market, such as bitcoin and Ethereum. This appeals to a younger audience, especially when you consider that some 75 percent of traders aged between 18 and 34 years old are said to trade cryptocurrencies. There are also technological changes to consider. Advances in digital communications and mobile devices have radically altered the trading landscape, making trading far more accessible and enabling traders to open a position at any time – even when they are on the move. Notably, mobile trading makes up almost 60 percent of all transactions.

What has been your experience of this change at ActivTrades?
ActivTrades offers informative educational resources to clients with varying experience and understanding of the financial industry, from beginners to professionals. This in itself is notable given that, in the past, most traders had advanced knowledge of the industry.

The demographic shift is also something that we have seen clearly at ActivTrades. We have responded to the shift by introducing a wider range of products to match the interests of the new day trader demographic. These are traders who are drawn to investments like cryptocurrencies and cash indices.

ActivTrades has also utilised technological advancements to ensure it offers products and services that complement its clients’ everyday lives. Useful extras such as its mobile and tablet trading app allow clients to place trades on the go.

What does this mean for the industry more generally?
A shift towards younger and less advanced traders has prompted changes in the regulatory landscape, with regulations providing enhanced safeguards to protect retail traders. ActivTrades offers a negative balance policy, which credits client accounts back to a zero balance if their account goes into negative as a result of trading, along with additional insurance up to £1m ($1.4m).

The Financial Services Compensation Scheme is a fund of last resort for customers of UK-authorised financial services firms, which provides protection for when an authorised investment firm is unable to pay claims against it.

These assurances have empowered individuals and made them feel safer while trading. What’s more, demo accounts give clients the opportunity to get accustomed to the platform, products and requirements, without making an investment of their own.

Do you see the demographic continuing to change as time goes on? In 10 years’ time, what changes can we anticipate?
It is difficult to predict exactly how it will play out, but the data mentioned previously would suggest that the shift could continue to some degree.

What is ActivTrades’ stance on the European Securities and Markets Authority changes that are due to come into force?
It is our stance at ActivTrades that any changes that promote customer experience, education and protection are positive. However, our latest research tells us that the majority of our clients are well aware of their actions. Therefore, some of them are starting to consider these decisions as an intrusion or a limitation to their freedom of investing in financial markets. Ultimately, the worst thing would be if the new regulations drove customers away to less-regulated markets.

Some argue that regulatory changes will stem industry growth. Do you share this view?
An increase in regulatory guidelines will improve the reputation of the industry, if anything. ActivTrades expects to see its own growth continue, due to the exceptional support and products we offer globally.

A bespoke vehicle for private banking success

Posted on by Max Tomlin

Established in 1946, Mediobanca has been delivering specialised services in the fields of financial advice and asset management for more than 70 years. Despite its long-established history, the bank has never been afraid of change. In 2003, it underwent a significant evolution programme, transforming from an equity holding company to a diversified banking group, covering corporate and investment banking, consumer banking, wealth management and principal investing. With a business model that focuses on specialised banking businesses and solid capital ratios, the bank continues to go from strength to strength.

A bespoke philosophy
On December 1, 2017, Mediobanca bolstered its suite of wealth management services by launching Mediobanca Private Banking, a new brand that caters for high-net-worth individuals. The launch has put the finishing touches to Mediobanca’s coverage at the top end of the market, which is managed outside of Italy by Compagnie Monégasque de Banque and by Spafid in fiduciary services. Mediobanca Private Banking provides us with the opportunity to develop a unique service in private and investment banking, effectively making our strong corporate expertise available for the benefit of our clients.

Mediobanca Private Banking currently consists of 90 bankers and an extensive geographical footprint across the whole of Italy. Private banking in Italy still has substantial room for growth in terms of potential clients, as well as the quality and range of services offered. The aim of Mediobanca Private Banking is to become the Italian private investment bank of choice, particularly among entrepreneurial clients. In order to achieve this, we are currently developing all possible synergies with the group’s corporate and investment banking division. We can therefore ensure our clients can benefit from Mediobanca’s expertise in M&A advice, alongside its debt and equity capital markets services. Essentially, Mediobanca Private Banking has become the first joint private and investment bank in the Italian market.

Made in Italy
The group’s intention is to apply Mediobanca’s historical founding values in wealth management to the world of private banking. This includes a combination of innovation and tradition, along with a long-term vision and bespoke solutions to meet clients’ specific requirements. With this in mind, Mediobanca Private Banking has developed a unique philosophy, assisting entrepreneurs through the many synergies to be found between the group’s divisions, from managing personal needs to corporate and real estate services. As for the specific private banking business, solutions range from asset management and alternative investments to private equity, real estate products and club dealings.

For the latter in particular, Mediobanca Private Banking recently launched its Equity Partners Investment Club project, a deal in which Mediobanca participates as a sponsor, along with some of the bank’s most prominent clients. The aim of the project is to invest in medium-sized enterprises, primarily those associated with the ‘made in Italy’ brand that are valued between €200m ($244m) and €300m ($367m).

In this first phase, the project involves selecting five or six outstanding Italian companies for investment, all of which harbour the possibility of acquiring either minority or controlling interests. For each deal, a commitment in the region of €80m ($98m) to €100m ($122m) is expected, of which Mediobanca will contribute 20 percent via the Equity Partners Investment Club. Mediobanca’s entrepreneurial clients, who are completely free in terms of which deals they choose to invest in, will cover the remaining 80 percent.

Implementing the club approach
Through this project, Mediobanca Private Banking has embraced the ‘club deal’ approach to investment, not only from a financial point of view, but also from the perspective of sharing knowledge. This should appeal to those investors who find it more interesting to put money into an entrepreneurial story through a sort of private club, rather than investing only in financial products. On the other side of the coin, this platform suits medium-sized ventures that are not often covered by the private equity world, but are looking for capital in order to expand beyond the realm of SMEs.

For the Mediobanca Group, the Equity Partners Investment Club is the first initiative to emerge as a genuine alternative to private equity funds. Over the next few years, the group aims to accelerate its strategic restructuring in order to turn Mediobanca into an institution that creates long-term value. To achieve this goal, we will continue our commitment to responsible investing and sustainable businesses practices.

Jordan Islamic Bank leading the way in sustainable finance

Posted on by Max Tomlin

Some banks have been meeting high standards for many years. Established in 1978, Jordan Islamic Bank (JIB) is recognised to be a pioneer, both locally and globally, as a financial institution that is critically aware of the impact it can have on society.

Over the years, JIB has focused increasingly on incorporating sustainability into its operations, resulting in numerous achievements.

Responsible returns
One such accomplishment transpired last year, when JIB signed an agreement to establish a new renewable power station to provide clean electricity to its branches. The project will see the installation and connection of a solar cell system that will provide 85 percent of the electricity needed to power the bank’s offices in Jordan. Musa Shihadeh, CEO and General Manager at JIB, said this plan embodies the bank’s focus on sustainability. He explained: “JIB will also obtain licences to establish another power generation station to cover the electric power consumption of branches and offices in the northern governorates. Work is in progress to open this station in 2018.”

Jordan Islamic Bank is recognised, both locally and globally, as a financial institution that is critically aware of the impact it can have on society

Somewhat surprisingly, these projects have not come at the cost of profit. JIB recently reported its 2017 financial results, which included a before-tax profit of $114.2m and after-tax profit of $76.4m. The bank’s revenues reached $310m, while profits from joint investment, before distribution of profit to account holders and shareholders, were $270m. The results are a sign that JIB’s way of doing business is paying off both socially and financially.

Shihadeh said JIB’s operations focus on three main commitments: to embody the values of Sharia law in its dealings; to serve the interests of all stakeholders; and to offer the latest innovations in banking products and technologies. The fulfilment of these missions has made JIB a global leader in its field. Shihadeh told World Finance: “JIB has 300 banking arrangements with foreign international banks all over the world that accept our terms, such as including no interest in any transactions. JIB is the third-largest bank in Jordan in terms of total assets, and first in terms of Islamic banks.” The bank has experienced significant success: between 2012 and 2016, it achieved the highest return on shareholders’ equity among all of Jordan’s banks.

Underpinning all of this is the role social responsibility plays in JIB’s products and services. As one of the leading banks in Jordan in terms of social responsibility and Islamic banking, Shihadeh said ensuring JIB is equipped with a thorough corporate governance structure is a high priority: “There is a social responsibility committee formed by the board of directors, and another one at the executive management level. This is in affirmation of our bank’s attention to social affairs.” The bank’s efforts can also be seen in its certifications. JIB recently obtained ISO 26000, which is based on the International Organisation for Standardisation’s guidelines for social responsibility in the Middle East and North Africa. Furthermore, JIB was awarded the Social Responsibility and Environment 2017 award from the General Council for Islamic Banks and Financial Institutions (CIBAFI) at their inaugural awards ceremony.

Small changes, big impact
The bank’s environmental contributions don’t end with the installation of solar panels. For instance, JIB has replaced the lights in its offices with energy-saving LED units, which reduce electricity consumption on a yearly basis by some 35 percent. JIB has also installed a variable refrigerant flow air conditioning system in its offices, which annually uses 25 percent less electricity when compared with other air conditioning systems.

While such changes make a big difference, Shihadeh said JIB is expanding its priorities beyond the environment, as per the bank’s 2017 social responsibility plan. “JIB will continue financing the health and education sectors with low rates, as well as making investments and donations. We are also keen to create new job opportunities through the continued support of small, medium and micro-sized start-ups by providing finance from the bank, or through agreements which are signed with the Central Bank of Jordan.”

Another area in which JIB would like to play a significant role is the alleviation of poverty through financial inclusion. Shihadeh explained that this has become one of the main priorities of the bank’s long-term plans. “JIB’s plan has three goals: providing access to financial services; encouraging the use of financial services; and ensuring that these financial services are of the highest quality.”

Providing easy-to-use, accessible and functional financial products to those that don’t already use them is a goal that JIB sees as attainable, Shihadeh said. “JIB is strongly committed to achieving these goals. This includes strengthening the geographical spread of financial institutions to make them more accessible, and also taking advantage of technological developments to make accessing finance easier. Ensuring that the products developed meet the needs of everyone in society is also a must. While challenging, an environment that supports companies of all sizes is possible through a lot of hard work.”

This goal has informed JIB’s development of new financial products, which must be clearly explained while also ensuring that consumer protection regulations are in place to guarantee the fair and transparent treatment of customers.

Shihadeh said there have been many specific projects JIB has undertaken to further financial accessibility. “JIB arranged a workshop for a group of our customers from the SME sector to explain the special banking services they would find convenient. JIB was also a sponsor for a training course on the requirements people with disabilities have to access banking services.”

JIB has also circulated information to the members of the Jordan Chamber of Industry and Commerce that outlines the latest banking products and the new agreement JIB has with the Central Bank of Jordan, which provides finance on very concessional terms. Shihadeh has also published several articles regarding financial inclusion in ABJ Magazine, a magazine published by the Association of Banks in Jordan, to explain the possibilities available to young people and women who open a bank account.

A leader in products
While social responsibility is commendable, for a bank to be truly successful it needs to focus on its technical capacity as well. Fortunately, JIB is also a leader in this regard and has been able to make significant accomplishments while adopting new systems. “JIB is committed to introducing new technologies and products yearly to achieve the satisfaction of the customers,” Shihadeh said.

The recent services JIB has added reflect the bank’s goal of being equipped for the modern financial landscape. It has launched a new mobile application that allows customers to see the balances of special accounts, the latest transactions of every account, request statements, make transfers between accounts, and see current foreign exchange rates. “We have also issued new cards, which have been equipped with the latest security and anti-fraud features,” Shihadeh told World Finance. “In addition, JIB’s ATMs now feature instant cash deposits and invoice payment capabilities, and we are also deploying new measures to combat money laundering schemes.”

“These are just some of the ways we try to improve the lives of people in Jordan. We are also committed to strengthening Islamic values in business transactions and tying together the themes of social unity, compassion and solidarity. These goals are obvious in all of JIB’s activities,” Shihadeh explained.

There are opportunities for further growth in the renewable energy finance sector too, particularly as more companies and local citizens wish to install renewable energy infrastructure in their buildings and homes. In fact, JIB has already financed many renewable energy projects for local companies, such as the Solar Cell Power Generation Project of the Islamic Charity Centre in the form of Istisna’a. JIB also plans on issuing and trading in Islamic sukuk bonds, while continuing to develop new products for the banking market as they obtain Sharia approval.

The world is continuing to develop and change as a more sustainable future comes to fruition. The gradual development of financial tools to fund this future is ongoing, with JIB set to continue to play an important role in this story thanks to its commitment to a vision of a better future.

CapitaLand inspiring technology-fuelled revolution in Asia’s supermalls

Posted on by Max Tomlin

The US retail sector is licking its wounds from one of the worst years on record, with 2017 marking a series of retail bankruptcies and shop closures, Toys “R” Us and Macy’s among them. Yet, as the rise of e-commerce triggers an existential crisis for the US shopping mall, the fate of the Chinese mall is moving entirely in the opposite direction.

There is a shift in consumer behaviour in China, as well as Asia more broadly, which has seen the retail sector being driven by fast-growing consumption

World Finance spoke to Lim Ming Yan – President and Group CEO of CapitaLand Group, one of Asia’s largest real estate companies. Headquartered and listed in Singapore, the company owns and manages a network of over 80 malls in Singapore, China, India, Japan, and Malaysia, and is continually on the lookout for more retail investment and management opportunities. Last year, CapitaLand opened a record 1 million square metres of retail space across eight developments in Asia – its largest retail space offering in a single year. Of these, six are retail components of large-scale integrated developments in fast-growing Chinese cities, namely Shenzhen, Shanghai, Hangzhou, Suzhou and Wuhan.

Instead of predicting the downfall of the mall, Lim has faith in the idea that this is a key moment for malls to be reinvented in a more modern way.

He said: “Brick and mortar retailers have realised the need to accept the advances of technology and e-commerce in the way they do business. It is not a question of whether it is online or offline, but rather how the online and offline channels complement each other. Malls need to reinvent themselves by offering unique services that cannot be delivered online. Malls in top tier cities have started to evolve to provide a blend of lifestyle and digital experience for shoppers and there is also an increasing trend of adopting omni-channel retail strategies to help retailers to achieve further growth.”

Fuelled by growth
Lim’s confidence is based on a simultaneous shift in consumer behaviour in China, as well as Asia more broadly, which has seen the retail sector being driven by fast-growing consumption. “In the recent update from the China Statistics Bureau, the contribution of consumer spending to economic growth has been increasing; consumption contributed 58.8 percent of the growth in 2017. This bodes well for the retail industry,” he explained.

Asked why this was such an exciting time for malls in China, Lim responded: “Over the past few years, China’s disposable income per capita growth has been on an upwards-trend. The trend in Tier 1 and 2 cities has been stronger than before and personal consumption levels have also risen in these cities. Many global luxury brands have narrowed their price gaps across countries, and overseas brands consider China as one of the top choices in Asia for expansion. These trends coupled with the consistent growth in disposable income will continue to drive retail sales growth in these cities.”

Consumption in China is not only booming, it is also taking on new forms. Lim described how CapitaLand’s strategy is mindful of how malls must react to the key shifts in consumer spending that are taking place. “Chinese consumers are shifting their spending patterns towards more discretionary items like healthcare, travel, education and entertainment. There is also more awareness about healthy living as the population in China ages, with expenditure on healthcare and fitness expected to be on the rise.”

In order to serve this growing market, CapitaLand’s malls in China have been increasing the number of tenants in the lifestyle sectors such as food and drink, education, entertainment, healthcare and health fitness services. “Products such as fashion and electronic gadgets are easily available online, but lifestyle experiences cannot be replicated through the internet. Hence the market for shopping malls will be moving towards providing new and enticing physical experiences for the shoppers,” Lim explained.

Suzhou Center Mall in China is an example of this strategy. Part of a mega integrated development with a retail gross floor area of 300,000 square metres, it is the largest mall in Suzhou city and in CapitaLand’s portfolio. Housing over 600 tenants, including leisure and recreational offerings such as an ice rink and a children’s theme park, and complemented by a wide collection of public spaces and gardens, the mall recorded a shopper traffic that matched the size of Suzhou city’s population of 10 million in just over two months from its opening. This is equivalent to every citizen in Suzhou visiting the mall at least once.

Hot on the heels of its record mall openings, CapitaLand is gearing up for future growth by proactively reconstituting its portfolio. In January 2018, the company announced plans to divest 20 non-core retail assets, mostly in third-tier Chinese cities. Adopting a “core city cluster, dominant assets” strategy, the company plans to continue investing in dominant assets in core Chinese city clusters where it already enjoys a competitive advantage, allowing CapitaLand to better optimise its resource allocation to build meaningful scale in these core city clusters.

Lim added: “Our growing track record has enabled CapitaLand to progressively embark on bigger and more sophisticated projects in prime locations of top-tier cities, which offer higher returns on our investments. CapitaLand’s competitive advantage in integrated developments, which harnesses the group’s multi-sectoral expertise, acts as a key differentiator to enhance the resilience of our shopping mall business.”

Redefining malls in Asia
It is in reaction to such fundamental trends in shoppers’ behaviour that modern Asian malls are being redesigned, with new malls increasingly oriented towards lifestyle and entertainment offerings. One of the most important trends is the way in which malls are merging the offline and online experience for shoppers.

Outlining his vision of where malls are headed, Lim said: “Shoppers will be able to use their mobile devices to navigate, source for deals and pay for their purchases. In addition, interactive touchscreens may do more than just providing general information to shoppers. Instead, they will offer products and services available in the mall that are specific to the individual shopper. Shoppers may also be able to virtually try on certain products online, such as clothes and makeup, before proceeding to the physical stores.”

Malls will also be looking to capture shoppers’ imaginations through experiences, providing a wide variety of unique offerings such as indoor entertainment and lifestyle services. “We have outdoor activities, such as rock climbing, taking place inside malls and we expect this to continue into the future. Shoppers can enjoy outdoor activities in the comfort of a secure indoor environment.” Besides bringing the outdoors inside, another key trend on the rise is the popularity of workshops being conducted by retailers to teach people about their products and services.

Integrating offline and online
Driven by their vision of the future of Asia’s shopping malls, CapitaLand is enhancing the retail experience for the modern shopper. “We introduced the Click-and-Collect concept in our Singapore malls, whereby shoppers can do online shopping at our CapitaLand official store on Lazada.sg, and subsequently try on and collect the products at our Click-and-Collect lounges in the malls across Singapore,” Lim explained. “If they are not satisfied with the products, they can make arrangements for exchange on the spot. We are also encouraging online retailers to open their physical shops in our malls. They can have smaller spaces as they do not need to display all their products, and their online shoppers can come and try their products before finalising the purchases,” Lim explained.

Specific to CapitaLand malls, shoppers can access concierge services on the CapitaStar app, which is a CapitaLand rewards programme. For instance, they can grab a ride, book a restaurant or redeem recommended deals, all through intuitive interfaces on their smartphones. Shoppers are rewarded with ‘STAR$’, the membership points of the CapitaStar programme, when they shop at a CapitaLand mall and after they have scanned their shopping receipts using the CapitaStar app. In Asia, CapitaStar has close to five million members, of whom about four million are in China. “Shoppers like the convenience of accessing the services they need on the go. We have also recently signed a memorandum of understanding with China UnionPay to launch cashless payment in China through CapitaStar. We expect this trend of where shoppers move seamlessly between online and offline to impact how malls in the future are designed and managed,” said Lim.

The integrated mall lifestyle
The change in the nature of the mall towards an experience facilitator is also fuelling a parallel trend. “Shopping malls will increasingly become social spaces where shoppers seek experiences beyond traditional shopping. Shoppers appreciate well-designed public spaces to socialise as their personal living spaces become smaller in many cities. Due to changing demographics, increasing urbanisation and changes in China’s one-child policy, people need more services like healthcare and education. There is also a growing trend for mixed-use developments that enable people to live, work and play in one central location. In other words, malls will increasingly become the physical space for people to congregate,” Lim noted.

This provides an excellent opportunity for CapitaLand, whose real estate expertise stretches across malls, serviced residences, commercial spaces and residential developments. The company has leveraged this experience to create a ‘city within a city’. Being a part of integrated developments enables these malls to tap into ready catchments of residents, working professionals and travellers who live, work and play all in one location.

For instance, CapitaLand’s Raffles City integrated developments are designed to be futuristic urban hubs located within business or cultural districts in global gateway cities. One example is the ‘Raffles City’ of Hangzhou in China, which is directly connected to the subway, and comprises a shopping mall, a Grade A office tower, an Ascott serviced residence, a hotel and numerous apartments. Each Raffles City development varies in composition, but they are consistent in offering quality finishes and facilities. At the forefront of transforming the built environment through their master planning and design capabilities, CapitaLand’s developments create a glimpse into a future where urban life has been reinvented through the smart use of technology and social space.

ProInversión leads Peru’s $10.8bn infrastructure development drive

Posted on by Helen

Although Peru is one of Latin America’s largest and fastest-growing economies, it suffers from a significant infrastructure gap that could hinder its continued development. This was seen just last year, when devastating floods further exacerbated the existing problem, collapsing some 260 bridges and closing more than 3,000km of roadways. To address the situation, the government is now undertaking a major initiative to develop numerous areas of its infrastructure and public services.

Peru’s growth prospects mean that the government-backed projects present international investors with a unique opportunity to gain higher returns than they typically would in mature markets – for example, in Europe.

More than 100 public-private partnership (PPP) projects have already been awarded in Peru over the past decade alone. This is in large part due to Peru being one of the most investment-friendly environments in Latin America; the country is ranked second in the region in the World Bank’s 2018 Ease of Doing Business index. It is the easiest nation in the region in which to register property, and also ranks highly in the protection of minority investors, obtaining credit and enforcing contracts.

Peru’s growth prospects mean that the government-backed projects present international investors with a unique opportunity

Project plans
Over the coming years, projects planned include a $2.05bn road in the capital, which will stretch 33.2km and link two important highways. Another potential project is the much-needed improvement of the iconic 1,000km Longitudinal de la Sierra highway that stretches along the Andes mountain range, which will come at an estimated cost of $464m. Further, three specialised hospitals will be built as part of two projects in Lima, Piura and Chimbote.

The most significant infrastructure developments are in water and sanitation. These include a $600m plan to build and operate major parts of Lima’s potable waterworks, a $304m wastewater treatment system in the Lake Titicaca basin, and a $90m wastewater treatment plant in central Peru. At present, the Titicaca project is estimated to be awarded in the next two years, unless another party decides to bid for the project. If this is the case, ProInversión will activate a bidding process.

Investment types
Most transportation and healthcare projects are co-financed government initiatives, meaning the contractor will not assume the full cost or risk for the development. The concession period for the projects ranges from 25 to 30 years, thus allowing investors ample time to recover their initial investment. And, in addition to the vast improvements they will create for the Peruvian public, planned mining and telecommunications projects are expected to be especially useful to investors as they are all asset transfer projects.

In collaboration with ProInversión, Peru’s private investment promotion agency, the Peruvian ambassadors to China and South Korea have invited investors to attend road show events taking place in Seoul on May 16 and in Beijing on May 18. These events follow the bilateral meetings that took place in Tokyo on May 14. Each of these proceedings will outline the range of investment opportunities in Peru over the coming years, and will feature talks from the respective Peruvian ambassadors, financial leaders and ProInversión representatives.

To find out more about more about ProInversión’s project portfolio, click here

KIB harnessing innovation to improve the customer experience

Posted on by Max Tomlin

As with many nations in the Gulf region, a dramatic push towards economic diversification has remained a key focus for governmental organisations and businesses in Kuwait. The necessity of such an overhaul became all too apparent following the fall in oil prices since 2014 (see Fig 1). Since then, Kuwait’s banking industry, its strongest non-oil sector, has developed and grown to become a frontrunner for the entire region.

To keep up with the market, banks must be dynamic, adapting in real time to meet the demands of their increasingly tech-savvy clientele

In large part, this is due to the sector’s digital transformation – a conscious move on the part of financial institutions to meet the evolving needs of a tech-savvy society. Indeed, given that – according to the UN Development Fund – over 70 percent of Kuwait’s total population is under 35 years of age, acting fast on digital trends is a must. Consequently, the level of digital progress seen in the sector has been nothing short of remarkable. From biometric security systems to efficient e-payment systems and intelligent teller machines, the latest innovations in finance are being utilised to provide a supremely fast, easy and intuitive service to customers across the country.

One bank that has this mission at its core is Kuwait International Bank (KIB). Headquartered in Kuwait City, the country’s capital, KIB is constantly introducing new technologies to its systems and processes in a bid to improve the service given to its customer base. To find out more about the bank’s digital strategy, World Finance spoke to James Eugene Galligan, General Manager of the Retail Banking Department at Kuwait International Bank.

How has KIB introduced alternative banking channels over the years?
Amid the technological changes taking the industry by storm, KIB is striving to position itself at the forefront of banking technology in the region. We have been actively working to remain ahead of the curve by deploying services across digital channels, both online and mobile, which are designed to enhance and streamline the virtual banking experience we offer.

This all comes as part of a comprehensive and long-term programme that is aimed at transforming the way KIB engages with customers across every touch point and communication channel. The goal is to not only offer pioneering solutions with advanced technical capabilities, but to also provide the latest digital solutions that are user-friendly and easily accessible at all times.

Recently, one of the most important milestones under the umbrella of our digital revolution has been the inauguration of the region’s first-of-its-kind multichannel contact centre. This strategic move seeks to completely revolutionise the KIB customer experience and improve service levels. Operating around the clock, the centre includes an interactive voice response (IVR) portal, and offers centralised monitoring, queuing, routing and reporting solutions. Last year also saw us launch our innovative visual IVR service, which provides customers access to most of our services via a visual interface, rather than just a voice-activated self-service interface, thereby enabling us to offer a better self-service call experience.

Technology is being introduced at a rapid pace. How can established banks keep up?
The rapid pace of technological advancement is not unique to the banking industry, as we can see how digitalisation has affected industries and sectors all around the world. Nevertheless, as with any change, this technological shift presents risks, as well as an abundance of opportunities. Most banks have already recognised the rapid growth of mobile technology and the consumer dependence that stems from it, and have therefore shifted their focus to expanding and enhancing digital and mobile channels.

To keep up with the ever-changing state of the market, banks must be dynamic and flexible, adapting in real-time to meet the needs of their sensitive, demanding and increasingly tech-savvy clientele. The reality is that customers are no longer satisfied with a ‘traditional’ banking experience, and banks need to think well beyond the branch when it comes to their customer experience.

Today, we can see banks around the region investing heavily in technology, as many have expanded their presence across all channels – including SMS, mobile websites and mobile banking apps. More integration of online and mobile channels can now be seen throughout the industry, as financial institutions work towards cross-platform solutions and a multichannel customer experience. This integrated approach must also be coupled with a tailored user experience in order to leverage technology to its fullest capability and offer customers a complete virtual banking experience.

How are traditional banks coping with competition from fintech start-ups?
In recent decades, the march of technological progress has significantly impacted many industries. Technological advancements are beginning to undermine, and even disrupt, the nature of traditional banking methods and structures. This is due to depositors, borrowers, investors and businesses being increasingly offered more direct, immediate and cheaper access through fintech services.

On the surface, fintech providers seem to offer consumer services that go beyond traditional banks, bypassing the middleman to offer more attractive services and a better online experience. Their surge in popularity presents banks with a number of challenges, driving traditional players to re-evaluate their strategies and embrace innovation in order to compete.

As consumer preferences move towards more direct channels, traditional banks must adapt by providing customers with a simpler and faster customer experience. Swept up in the fintech momentum, banks are introducing new innovative products, while managing the new digital risks that innovation introduces. This growing competition from fintech companies has propelled traditional banks towards providing more digital banking solutions through a diverse number of channels. Going one step further, traditional banks – although relatively slow to adapt – are making great strides in operations, culture and other facets of the industry, by increasing their total IT spend and investing heavily in digital banking.

How can digital banking channels enhance the customer experience?
As banks move towards employing more and more digital banking channels, many transactional services have now become easily accessible online and through mobile apps. Customers no longer have to wait in long lines, and can now access banking services at their own convenience. Digital banking platforms are currently in place for the majority of banks, thereby enhancing the delivery of key services that suit customers’ busy, fast-paced lifestyles.

Based on segmentation insights, banks can deliver a better digital experience, strengthen their customer relationships, grow their customer base and
even lower costs

Banks can also leverage data from digital banking platforms to build a better customer relationship through data analytics, which help banks identify their diverse financial needs in order to craft tailored solutions for them. Based on segmentation insights, banks can deliver a better digital experience, strengthen their customer relationships, grow their customer base and even lower costs.

Furthermore, banks have now begun to fully utilise social media platforms as a customer service tool, providing customers with the necessary channel to voice their needs and concerns. This improves the overall customer experience by transforming the way in which banks communicate with their customers.

Going forward, we can see several major trends that can create both challenges and new opportunities for banks. There will be a shift from digital quantity to digital quality, which means banks will need to focus on improving the usability of existing digital offerings. Finally, organisations must be fully prepared to deliver an excellent customer experience across new channels to create a seamless multichannel experience.

Do new technologies like mobile and online banking create new regulatory or security challenges?
The advance of new technology has inevitably initiated a rise in security and ethical risks. Banks have also become aware of new regulations associated with digital banking technology, as they store sensitive customer data. Banks must therefore ensure their information security is constantly updated to prevent any compromise and avoid potential legal risks. Accordingly, these security risks have driven banks towards installing secure, high-quality information security systems and methodologies to safeguard customer data.

What is KIB’s strategy concerning innovative new services? How does it choose which banking channels need to be improved?
KIB uses a wide range of techniques to collect, process and analyse data to deliver significant enhancements across all areas of retail banking and focus further on becoming more customer-centric. Ultimately, this means that we can deliver more bespoke products and tools to our customers.

Technological advancements are beginning to undermine, and even disrupt, the nature of traditional banking methods and structures

In today’s world, data reigns supreme, giving banks the opportunity to differentiate themselves from other players in a highly competitive market by introducing targeted, tailored banking products and services. KIB’s strategy is to never remain stagnant amid these technological changes and shifts in consumer preferences. For that reason, the bank is looking to invest more in the latest technology and security features that allow for a better understanding of its customer base.

With more than 40 years of experience, what has changed in the industry and which values have remained important?
The banking industry has changed significantly over the past four decades, to say the least. Today, banks are facing irreversible changes across the areas of technology, customer behaviour and regulations. Technological shifts create new segments of customer utility, which in turn fuels further investment in technology.

Additionally, regulatory changes have driven more service and structural innovations, whereas shifting consumer expectations have pushed for more innovation in the customer experience. Today, banks are also focusing on raising awareness of social issues and concerns, alongside introducing innovative products and services.

However, with all these changes happening in the industry, customers remain at the heart of the business. Banks whose strategies remain customer-centric have proven to be more successful, as they operate in service of their customer base and continuously strive to meet their ever-changing expectations.

In what ways are international partnerships important for KIB to develop its banking services?
KIB is determined to position itself as a regional leader in the Islamic banking industry, and one thing is certain: partnerships are crucial to this. Partnerships have paved the way for the exchange of ideas, expertise and capabilities through collaborative advantage.

In this global economy, well-developed collaborations have proved to be extremely fruitful, and are of the utmost importance in achieving significant competitive advantage. We are therefore able to offer our customers a full range of innovative banking services.

Islamic finance has grown hugely in recent times. How important is technological innovation to keep this going?
The Islamic finance industry’s growth has been spearheaded by innovative product and service developments, transforming the way banking services and financial products are offered. Banks nowadays are required to provide banking services using e-channels – and Sharia-compliant banks are no exception. Technological innovation has enabled Islamic banks – which, by their very nature, are very different from traditional banks in approach and model – to customise their offerings and meet the extremely specific needs of Islamic finance.

For Islamic banking to reach its full potential, it must ensure that it invests in technology in order to keep pace with an increasingly competitive market. In light of this, Islamic banks can leverage the power of technology to address all issues and challenges they face within the banking industry.

Does Kuwait International Bank have any plans for the future in this area?
The ingenuity and creativity that we continue to see from fintech firms – particularly in the area of product development – are starting to have a real impact on how organisations do business. With the surge of new technologies embedded in their day-to-day lives, customer expectations are also increasingly rising in line with the superior customer experiences and products that are currently being offered in the market.

In order to be a sustainable and successful business, our challenge is to continually deliver innovative Sharia-compliant solutions that meet these changing needs, leveraging emerging delivery channels to reaffirm the bank’s relevance in customers’ lives. Our goal is to expand our digital and mobile solutions and channels, but to also remain user-friendly in order to deliver the ultimate customer experience.

In addition, we must partner with fintech firms – a journey we have already started – and utilise both their innovative strategies and digital capabilities to reaffirm our key role in defining the future of the digital banking ecosystem, both locally and regionally.

Moreover, we have developed a strategic plan that aims to deliver a new, customer-centric banking experience. By becoming an insight-driven business, we will be able to use data for all of our decision-making and to ensure pricing strategies meet the needs of individual customers’ needs, while also recognising further
areas for growth.

Another core component of this strategy includes changes to our organisational structure and the pool of skills and talents required from our team. As part of these changes, customer-centric design and innovation, without compromising regulatory requirements, will become critical to our business strategy going forward.

By incorporating more digital solutions, we will drive the bank towards becoming a more customer-centric business, delivering greater value to customers and remaining an indispensable element to their everyday lives.

The insignificance of significance

Posted on by Max Tomlin

Everyone wants to feel that their work has contributed something – that they added some order to a seemingly random world, or that their significance in the scheme of things is more than zero. In economics, and science in general, this measure of success is captured by the idea of statistical significance.

Suppose, for example, that a scientist has a theory that coffee causes a particular type of cancer because some data shows incidences of the disease rising with coffee consumption. Is the finding – and by implication, the scientist’s work – significant, or could the effect be down to chance alone?

Or suppose a pharmaceutical company is developing a new drug for heart disease. Human trials appear to show that the drug reduces mortality. But again, how can you tell whether the improvement is due to the drug, or the particular mix of patients used in the trial?

The trouble with significance
In 1925, Ronald Fisher suggested a standard way of answering this question: establish whether the data could reasonably have happened by chance, a test he called the ‘null hypothesis’. If not, the result is announced to be ‘significant’. The usual threshold for significance is that there is no more than a five percent chance of getting the results observed, or even more extreme results, if it is assumed they are due to random effects.

This sounds reasonable, and has the advantage of being easy to compute, which is perhaps why statistical significance has been adopted as the default test in most fields of science, including economics, to the point where it has become a kind of proxy for relevance or importance. Economists Deirdre McCloskey and Stephen Ziliak addressed this in their book, The Cult of Statistical Significance: “In economics departments, almost all of the teachers of probability, statistics and econometrics claim that statistical significance is the same thing as scientific significance.”

However, there is something a little confusing about this approach; it says that a theory is likely to be true if adopting the opposite of the theory – the null hypothesis – would mean the data is unlikely. (If you had to read that a few times to get it straight, that’s how I felt when I wrote it.) But we are not asking whether the data is unlikely (whatever that means) – we are asking whether a theory is true. And they aren’t the same thing.

For example, suppose you develop some strange symptom, go on the internet and discover that said symptom is associated with a rare but highly virulent disease. Does that mean you only have a week to live? No. For one thing, it may be associated with a number of less worrying things, and because that disease is rare it is probably rather low on the list of possible causes. In other words, probability of the data (i.e. the symptom) given the theory (i.e. that you have the disease) is not the same as probability of the theory given the data.

The approach therefore pushes us to seek out anomalous findings, instead of treating them as anomalous. For example, suppose we have lots of data and, after extensive testing of various theories, we discover one that passes the five percent significance test. Is it really 95 percent likely to be true? Not necessarily, because if we are trying out lots of ideas then it is likely that we will find one that matches purely by chance.

Now, there are ways of working around this within the framework of standard statistics. Unfortunately, the problem gets glossed over in the vast majority of textbooks and articles – especially, it seems, in the social sciences. And the effect is magnified by publication bias. The way to get work published is to find interesting, significant results – there is no mileage in saying that no pattern exists – so there is a tendency to try out multiple theories until one works for the particular data set. This is why, according to a number of studies, much scientific work proves impossible to replicate. The media jumps on exciting results, only to refute them when a new study is published. Given the amount of time and money spent on research, this represents what scientist Robert Matthews calls a “scandal of stunning proportions” in his book Chancing It: The Laws of Chance – And What They Mean For You.

Subjective opinions
Fortunately, there exists an alternative approach, known as ‘Bayesian statistics’, which has been around for some 200 years. Instead of starting with the assumption that data is random and then looking for deviations, Bayesians start with a model, but view it as inherently uncertain and flexible, and adjust it as new data either corroborates or undermines it. They interpret probabilities not as expected frequencies of observations, but as degrees of belief. The Bayesian approach is easy to understand because, instead of weird significance tests on null hypotheses, it just tries to estimate the probability that a model (i.e. the thing we want to know) is right, given the complete context. But it is harder to calculate for two reasons.

One is that, because it sees new data as updating our confidence in a theory, it asks that we supply some prior estimate of that confidence. This may be highly subjective, which is frowned upon in respectable scientific circles – although the problem goes away as more data comes in and the prior becomes more informed.

Another problem is that the approach does not treat the theory as given, which means that we may have to evaluate probabilities over whole families of theories, or at least a range of parameter values. However, this is less of an issue today since simulations can be performed automatically using fast computers and specialised software.

Perhaps the biggest impediment – and the reason the approach is still controversial after two centuries – is that when results are passed through the Bayesian filter, they often just don’t seem all that significant. But while that may be bad for publications and media stories, it is surely good for science.

Fubon Life ensuring happier lives in challenging times

Posted on by Max Tomlin

With many countries in the world facing a future in which a greater percentage of the population is elderly, the life insurance industry is presented with an opportunity to make a significant impact. In 2017, statistics released by Taiwan’s Ministry of the Interior showed that the nation’s Ageing Index, which is the number of people aged over 65 for every 100 young people, surpassed 100 for the first time. This figure is a year-on-year increase of 6.68 percent, a significant growth rate not seen in many other places. This trend is only expected to continue, with estimates indicating that Taiwan’s elderly demographic will grow to 20 percent of the population by the year 2026.

Taiwan’s elderly population will grow to 20 percent by 2026. this will affect every business and service in the nation

Accompanying this significant demographic shift will be a substantial change in demand for the specific services and needs required by the elderly. In some form or another, this will affect every business and service in the nation, necessitating the reassessment of many priorities to overcome the challenges this brings.

As one of Taiwan’s largest and most decorated insurers, Fubon Life is uniquely in touch with the people that will be impacted the most, and is equipped to face these challenges head-on with a positive attitude. Informing its actions will be Fubon Life’s long history of success. The lessons learnt during the recent past will allow Fubon Life to provide an unprecedented level of service.

Reaping the rewards
In 2017, Fubon Life not only continued to scale new heights in profitability with its solid business strategy, but also further fulfilled its commitment to contribute to improving Taiwan’s society. In terms of the demographic changes currently occurring in Taiwan, Fubon Life has been paying special attention to the care of the region’s elderly population. The company has been considering this issue when deciding where to make charity contributions, with the end goal of creating healthier and happier lives for the general public.

Fubon Life’s realisation of sustainable business development and corporate social responsibility programmes has also been recognised by several renowned professional institutions, both at home and abroad. In addition to being recognised as the Best Life Insurance Company in Taiwan by World Finance magazine for the sixth time and winning in the social charity development category in the 2017 Asian CSR Awards, Fubon Life has also been recognised by CommonWealth Magazine as the number one company in the life insurance category of the 2017 Golden Service survey. The company also won the categories of best brand awareness, best tied agents, best claim service and most recommended in the sixth Insurance Quality Awards. Furthermore, for eight years in a row, the company has been the most desired employer for Taiwanese college graduates who majored in finance or insurance.

Preparing for a bright future
Looking ahead to the rest of 2018, Fubon Life will continue to build the organisation and its talent, strengthen its existing distribution channels and develop insurance products that complement the company’s many strengths. Fubon will also explore new target audiences and optimise client services by leveraging digital technology. Fubon Life also intends to offer clients a more comprehensive experience and protection, as well as lead the company’s employees towards new heights for the business.

To maintain its lead in the market, Fubon Life will continue to aggressively recruit talented young individuals to join the company’s sales team. To help them get up to speed as soon as possible, Fubon Life provides training through an online learning platform. The company also provides agents with a comprehensive career blueprint, and encourages them to start developing their own sales organisation. Fubon also facilitates the promotion of executives at all levels to bring momentum to the organisation. The company regularly hosts a variety of training sessions and lectures in order for people to share their successful experiences. This helps guide employees towards a path that allows them to realise their dreams and goals.

In addition, Fubon has launched the No Boundary programme to encourage the company’s agents to return to their hometowns and contribute to local communities. This allows agents to make a positive contribution to where they grew up, while also allowing clients living in rural areas to enjoy the same level of service as those living in cities. Fubon is also continuing its Friendly Good Neighbour programme, which encourages employees to find charitable organisations in their local area, and then provides them with the resources to contribute to them. With Fubon’s coverage extending to remote locations, the business has the capacity to make a multitude of positive differences on a tremendously broad scale.

In 2018, Fubon Life will strengthen existing distribution channels and continue to develop insurance products that complement the characteristics of each. For example, in the area of online insurance policy application, Fubon Life will continue its development of a new e-commerce service model to fulfil client’s demands for a fast and convenient insurance policy application service. The company will also try to partner with third-party e-commerce platforms to increase awareness of the online service.

Online service is not enough, though, and Fubon will also support this online application process with traditional channels of customer service. This will create synergy and improve customer satisfaction throughout the process, while also streamlining many parts of a customer’s application. In terms of offshore insurance units, in addition to strengthening the partnerships that already exist, Fubon Life will further develop overseas distribution channels and explore opportunities to expand into the Chinese market. The company is looking at the best-selling insurance policies abroad to inform the design of its own innovative policies. All of these efforts aim to improve Fubon Life’s competitiveness in the overseas market, with the ultimate goal of becoming the top insurance brand for Chinese customers globally.

Inspiring positive change
Fubon Life aims to offer its clients an efficient, considerate and proactive service by leveraging digital technology. Fubon leads the industry through the introduction of its ‘video survival investigation’ service to accelerate the underwriting process and enhance operational efficiency. The service can also significantly reduce the policyholder’s waiting time while still protecting their rights and benefits. Fubon also recently launched the ‘video claim application service’ to help clients complete the claim application process. This allows a claim to be submitted on a mobile device within just five minutes. Clients can even receive payment on the same day the claim application is submitted, which also reduces the time required for paperwork to be completed.

In addition, Fubon Life will focus on big data and artificial intelligence (AI) as its fintech development targets for 2018. Innovative services in development include a system that will combine and review all insurance policy portfolio information to inform product recommendations, and the application of an AI-powered syntax analysis, image recognition and voice recognition system to a number of services. Fubon Life will incorporate a client’s insurance policy data and analyse demand across a number of different stages to provide clients with a visualised policy review report. The company will then leverage AI technology to provide product recommendations and offer a one-stop shopping experience through its diversified distribution channels.

Adapting to a shifting landscape
Looking at Taiwan’s changing demographics, Fubon Life is aware of the role it can play in supporting the ever-increasing elderly population. As a life insurance provider, Fubon has the expertise and access to provide services to the elderly where they are most needed. This need is most clear among those suffering from dementia, which Fubon has responded to with the Silver Light Service programme. In this project, Fubon Life has partnered with the Federation for the Welfare of the Elderly to train the company’s agents on the best methods and practices required to meet the needs of elderly people with dementia. This has effectively turned the company’s 400 sales offices into service centres for dementia patients, making Fubon the private enterprise with the highest number of dementia service hubs in Taiwan.

This is by no means the end of Fubon’s efforts to promote greater health and inclusion among Taiwan’s elderly population. The company gave out 1,000 smart bracelets in 2017 to help prevent elderly people from getting lost. Fubon Life also actively raised money to support elderly people’s quality of life, with the distribution of LOVE-memory piggy banks. The money raised was presented to the Federation for the Welfare of the Elderly and will assist elderly people who live alone. Fubon Life has also been using its successful financial position and extensive resources to support active lifestyles among the elderly, sponsoring walking events, basketball tournaments and supporting the purchase of healthy lunches for those who cannot provide one for themselves. Based on the success of these programmes, in 2018 Fubon will roll out even more ambitious schemes to further benefit Taiwan’s elderly population.

Building on the achievements of the previous years, Fubon Life is enthusiastic to meet the opportunities and challenges that 2018 will undoubtedly present. The company will build on its history of success to build an even better tomorrow.