Year: 2020

JIB: A model of ‘honest, sincere, and satisfying’ Islamic banking for Jordan

Posted on by World Finance

For 38 years, His Excellency Mr Musa Shihadeh was CEO and General Manager of JIB, one of Jordan’s oldest Islamic banks. But as of May 2019, he has stepped into the role of Chairman of the Board of Directors for the bank. He discusses the bank’s latest financial results, its commitment to financial inclusion and sustainability, and his vision for the future of the bank as a model of applied Sharia.

World Finance: Mr Shihadeh, talk me through the bank’s latest financial performance.

Musa Shihadeh: Our performance last year was good. Profits saw about 10 percent growth, and deposits was 7.5 percent.

This was because of expanding our technological transactions done through ATMs, phone banking, and branching.

This enhanced our business and led to that success.

World Finance: Now JIB has a real commitment to financial inclusion and sustainability; why is this mission so important to the bank, and to you personally?

Musa Shihadeh: We at the bank have a mission and strategy that we should serve every community person. Therefore we stress and concentrate our business on these transactions; try to help people to get under our umbrella of services. This will help to end poverty and unemployment, keep the economy stable and progress.

This stability will be resulted to our success and benefit as a bank.

World Finance: How does that position JIB in the Jordanian banking sector?

Musa Shihadeh: Jordan’s market has 25 banks. Four of them have Sharia application systems. We are the first in Islamic banks, and the third in all banks in Jordan.

World Finance: As I mentioned, although you are now Chairman of the Board of Directors for the bank, you were CEO and General Manager for 38 years, and saw some quite extraordinary changes in financial services during that time; what are you most proud of from your 38 years of leadership?

Musa Shihadeh: I’m proud of having the bank as a prominent bank in Jordan, with good relations with local and international banking systems. Satisfying every customer’s needs. And being a model for Islamic banking, applying Sharia in our products, that enhanced different banks to go and apply the Sharia principles.

World Finance: And what are you looking forward to in your new role on the board?

Musa Shihadeh: I’m looking that this bank will continue as a model for those who want to apply Sharia, and be honest, sincere, and satisfying the stakeholders.

World Finance: Musa Shihadeh, thank you very much.

Musa Shihadeh: Thank you very much.

The Philippines closes financial markets due to the coronavirus

Posted on by Helen

The Philippines became the first major country to shut its financial markets in the wake of the coronavirus crisis, after all stock, bond and currency trading was halted on March 17. Although other markets have closed trading floors or paused trading, the Philippine Stock Exchange (PSE) is the first to order a blanket ban.

“Please be advised that there will be no trading at the Philippine Stock Exchange… and no clearing and settlement at the Securities Clearing Corporation of the Philippines starting tomorrow, March 17, 2020 until further notice to ensure the safety of employees and traders in light of the escalating cases of the coronavirus disease (COVID-19),” read a memo shared by the exchange.

The Philippines has recorded a sharp rise in coronavirus cases of late, with the country’s main island of Luzon placed in quarantine this week in order to stem the tide of infections

The Philippines has recorded a sharp rise in coronavirus cases of late, with the country’s main island of Luzon – home to the capital Manila – placed in quarantine this week in order to stem the tide of infections. Recent figures place the number of confirmed cases in the country at 142, with 12 confirmed deaths.

The spread of the virus has wreaked havoc with financial markets around the world. On March 16, the S&P 500 fell by 12 percent, representing the biggest single-day decline since Black Monday in 1987, while the Dow Jones Industrial Average experienced a similarly chastening day. Meanwhile, the PSE’s circuit breaker, designed to limit market volatility, was triggered for the first time since 2008 last week, after a fall of 10 percent.

As the virus continues to make its impact felt across the globe, all but the most necessary of gatherings are being discouraged or prohibited, leaving trading floors deserted. Although some trading can occur remotely, many stock markets may soon be following the PSE’s lead to reduce the likelihood of mass sell-offs.

Why are cryptocurrencies still so exciting for traders?

Posted on by World Finance

Libertex is a multinational CFD and cryptocurrency broker. Its comprehensive investment platform offers 213 tradable assets to 2.2 million clients across 40 countries, and has won over 30 international awards. Marios Chailis, Chief Marketing Officer for Libertex Group, explains why cryptocurrencies are still such an exciting asset for online traders, their potential future outside of the trading space, and why due diligence is still absolutely vital. You can also watch the other half of this interview, where he discusses Libertex’s more traditional CFD and forex offering.

World Finance: You’ve described crypto as one of the best opportunities for traders in recent years; why is it still so exciting?

Marios Chailis: I think it’s a ground-breaking new technology that has seen tremendous interest worldwide. This has led to excitement among traders that haven’t seen anything like that in their lifetime.

I think we can all agree that it’s something that came out of nowhere, and over a very short period of time was absolutely everywhere – and a very hot topic being discussed among everyday people.

We saw that hype coming into its peak during the crypto hype of a couple of years ago; but since then, the interest has remained very high. That period of time, you know, there was, we need to understand that it’s still in its infancy. And we haven’t seen a lot of the applications that people might have hoped to see in a very short period of time. But we feel over the next few years, as long as technology companies and financial service companies continue to invest into research and development, on blockchain and crypto, very exciting things are going to come, and that’s where we’re going to see the real realisation of this vision of blockchain and cryptocurrencies.

World Finance: The crypto ecosystem is evolving beyond simple trading or peer to peer transfers with more business exploring using crypto as a payment method; tell me more.

Marios Chailis: I mean, 100 percent! We anticipate that eventually – and again, without wanting to put extra hype on this! – once the technology is mature enough, and a lot of companies invest into it, we see this becoming… I wouldn’t say a complete replacement of fiat currency, but definitely a much more advanced and popular payment method.

We see all these kind of companies already developing products that are relevant to this. I think the only remaining barrier is getting peoples’ trust and adoption worldwide. But especially in emerging markets, where you don’t have the traditional financial systems and payment systems and banking systems, cryptocurrencies and blockchain technology’s definitely going to be a differentiator, and something that we are going to see adopted very quickly.

World Finance: You raise a very important point of trust, because during the hype that you mentioned, we saw a number of ICOs that were not exactly… trustworthy at all!

Marios Chailis: 100 percent. So, that’s why I mentioned something that’s going to happen over a long period of time. When something, you know, is buzzed and a lot of people are talking about it, unfortunately scammers or untrustworthy individuals will try and profit from it.

What I would advise traders is to adopt a more cautious approach. Actually not even just traders, every person who’s interested in blockchain or crypto. Just do their due diligence, read up on the companies that they’re considering to partner with or to work with, and make sure that they work with long established, trustworthy companies, with the right people, and the technology that they claim they have.

I think that’s the main thing, and, you know, time will tell which of these companies will change the world!

World Finance: Marios, thank you very much.

Marios Chailis: Thank you.

Libertex strengthens one-stop CFD shop with indices, explores equities

Posted on by World Finance

Libertex is a multinational CFD and cryptocurrency broker. Its comprehensive investment platform offers 213 tradable assets to 2.2 million clients across 40 countries, and has won over 30 international awards. Marios Chailis, Chief Marketing Officer for Libertex Group, introduces the company and platform, and explains how Libertex is working with regulators to ensure it’s offering profitable and trustworthy services to its clients. You can also watch the other half of this interview, where he dives into Libertex’s cryptocurrency offering.

World Finance: Marios, introduce us to the company behind those numbers.

Marios Chailis: Thank you Paul. So, Libertex was established more than two decades ago. We operate in multiple jurisdictions, mainly in Europe, Latin America, and Asia.

The company has been enjoying tremendous growth over the last several years. We’ve invested a lot in our in-house technology, developing our own applications and trading platforms, which is something that enabled us to sort of stand out from a crowded marketplace. And I would like to think offer a better product to the many traders who choose to work with us.

World Finance: As you say, it is an incredibly crowded marketplace; is the platform what really sets you apart?

Marios Chailis: Well it’s definitely one of the main things. Credit is due to our founder – he identified that mobile trading is the way to go. So we invested a tremendous amount of money and research into developing our mobile trading applications. And we were, I would say, one of the pioneers of online mobile trading.

Obviously you can trade any kind of CFD, forex, cryptocurrencies; but we’re really strengthening our indices offering right now. We’re also looking into getting into shares, equities, traditional equities. And we’re discussing multiple joint ventures with some high profile partners that unfortunately I can’t name right now! But: very exciting things are on the way.

World Finance: Now I mentioned that you are available across 40 different countries; how are you working with regulators to make sure that you’re offering profitable and trustworthy services to your clients?

Marios Chailis: Well, the industry has changed quite a bit over the last few years. Starting with Europe, ESMA introduced a lot stricter guidelines about how financial service companies need to operate.

We’ve taken that at heart and we positioned regulation and compliance as one of our number one priorities. So across Europe and all our other entities worldwide, we try to adhere to the strictest regulation – even in the places where the local regulation is more lax.

So, all our KYC checks, all our compliance methods, even our back office teams; they all go through the same level of due diligence as our most regulated entities.

We understand that the industry is going to head in that direction globally, eventually – following the example set by ESMA in Europe. We’re really, really pushing for that, and it’s something that we welcome.

We fell it’s going to clear out some of the outfits that are less trustworthy! And allow companies like ours to shine, and continue providing the service that we strive for.

World Finance: And what would you say is most important among the services and support that you offer to your customers?

Marios Chailis: You know, we put a lot of emphasis on education. It’s one of the things that really sets us apart.  We have a tremendous team that works 24 hours a day to produce amazing content in regards to education, training seminars, webinars, all kinds of material that our traders find very interesting, and really helps them position themselves better before they start trading.

So we like to take care of them from the moment they open their trading account, and making sure that they are as knowledgeable as possible before they place their first trade.

World Finance: Marios, thank you very much.

Marios Chailis: Thank you.

Central banks around the world react to COVID-19 outbreak

Posted on by Helen

Politicians and central bank governors have reacted en masse in an effort to prop up their economies in the face of the coronavirus. On March 11, Iceland became the latest state to take such contingency measures, after the country’s central bank cut interest rates by 50 basis points to 2.25 percent.

Mirroring the move, the Bank of England announced an emergency rate cut from 0.75 percent to 0.25 percent on the same day, just over a week after the US Federal Reserve revealed similar measures of its own. However, while the cuts have proved effective in bolstering stock markets, they will struggle to solve many of the other challenges associated with the virus’ spread, including supply chain disruption and sharp falls in consumer spending.

While rate cuts have proved effective in bolstering stock markets, they will struggle to solve many of the other challenges associated with the virus’ spread

“The European Central Bank is due to report tomorrow and we’re expecting a reduced rate also, but it’s a mistake for central banks to use the coronavirus as an excuse to lower interest rates,” Celine Hartmanshenn, Global Head of Risk at Stenn International, said in a statement.

“It would be more effective for governments to introduce temporary tax breaks, new loan programmes, or other financing to companies hurt by the virus. This is all about raising stock prices and lowering borrowing costs. The measures put forward by the world’s bankers can’t keep workers from getting sick or factories from closing.”

Around the world, however, some governments have imposed additional economic measures to mitigate the impact of COVID-19. In Italy, for example, mortgage payments have been suspended and Prime Minister Giuseppe Conte has committed to a €10bn ($11.3bn) fiscal stimulus package.

As well as potentially causing recessions in any number of affected markets, the coronavirus could ultimately cost the global economy as much as $2.7trn, according to some estimates. Governments are swiftly moving on from policies of containment to ones of mitigation. Measures to assuage damage to public health will, of course, be important, but increasingly finance ministers are scratching their heads as they attempt to limit the disease’s economic impact as well.

By joining forces, traditional banks and fintech firms will bring the best service to customers

Posted on by Ashton Wenborn

Like so many other industries, the world of banking is facing significant upheaval. New technology has disrupted financial institutions, many of which had allowed a state of inertia to develop as a result of market dominance sustained over a number of decades.

Today, new players are challenging that dominance. Regulatory changes and new digital solutions are giving individuals more options than ever before. Now, instead of conducting their finances with established banks, some customers are choosing to partner with fintech firms.

It will be interesting to see how more established banks react to these agile new competitors. They could remain set in their ways, believing their customers will choose history over innovation. At ActivoBank, we know this is a foolhardy approach: we feel that the fintech revolution will bring benefits to new entrants in the financial services market, as well as to established organisations and customers. Rather than fearing the challenges fintech will bring, ActivoBank welcomes them as an opportunity to gather insights about the market as it evolves.

On the same team
Since its foundation, ActivoBank has positioned itself as a digital bank, with the primary goal of giving clients a simpler but more complete offer than other players. This is becoming a bigger challenge every day as the speed and complexity of digitalisation forces us to innovate at an increasingly fast pace, particularly in the banking world.

Even considering the many ways fintech firms are able to outrun traditional banks, we won’t stop viewing them as a growth opportunity

In this context, it’s easy to see why established financial institutions see fintech firms as a threat. They offer solutions that are perceived by clients to be similar to those offered by traditional banks, but at a lower cost. In the majority of cases, fintech companies also demonstrate impressive dexterity, especially during the onboarding process, which may only require a smartphone and a couple of short steps. It’s important to note that fintech firms face different regulations to large organisations within the formal banking sector, meaning they can embrace new developments at a faster rate.

Yet, even considering the many ways fintech firms are able to outrun traditional banks, we won’t stop viewing them as a growth opportunity. By observing their operations and processes, we can learn how to improve our services and take advantage of innovative new approaches to banking. ActivoBank has partnered up with some successful fintech providers, which will allow us to offer our clients the best solutions at a fair price, without losing sight of the values that have always been integral to our corporate mission.

For banking incumbents to adapt to change, it is essential they are able to anticipate change and respond to it in an agile manner. To achieve this, ActivoBank has taken a multidisciplinary approach to the monitoring and evaluation of new solutions. We speak of a multidisciplinary approach because it is important to keep track of the fintech sector in a holistic way, understanding each organisation, its solutions, their impact on the banking sector, their user-friendliness and the advantages and costs for the client.

Designed for convenience
At ActivoBank, we align our objectives with the most secure technological developments available, in keeping with banking best practices. We are currently developing partnerships with fintech companies to further our vision of providing the best user experience to our customers. In 2019, we focused our efforts on international bank transfer technology; for 2020, we are predominantly interested in personal finance management tools.

ActivoBank is currently focused on digitalising all our banking processes in order to provide the most convenient service to our customers

We are also keen to ensure that we have a mobile-first banking solution that appeals to all our customers. Certainly, the Millennial generation values mobile-first banking because they have always known smartphones to play a significant role within their daily lives. However, it would be an oversimplification to suggest that only Millennials are interested in mobile banking: today, smartphones provide all generations with the tools for communication, work, daily organisation and entertainment.

Another social change that has made mobile banking an essential part of any financial institution’s offering is the desire for instant results. Very few people will go to a bank in person to deal with an issue, preferring to complete tasks remotely.

ActivoBank is currently focused on digitalising all our banking processes in order to provide the most convenient service to our customers. However, this is a challenging task. A bank has numerous procedures that must be considered during digitalisation, including opening accounts, providing loans and insurance, and processing payments and transfers. Before any of these processes can be revamped, a bank must carefully consider its customers’ needs.

While banks must tread carefully, they should not be overly cautious – digitalising services is the best way to keep up with changing customer needs. The most important thing is to continue analysing performance and thinking critically about whether new ways of operating are effective or not.

In 2019, we launched our new transactional app, which we redesigned from scratch. Taking into consideration the needs of our clients, the app allows individuals to quickly and easily consult their account balance, withdraw money, start saving and receive an immediate response to a personal loan request. Regarding investments, we have launched another app that allows clients to oversee market developments, conduct transactions and manage their securities portfolio, all with the speed required to find success in the fast-moving world of modern finance.

Close contact
It’s important to remember that being a digital bank doesn’t mean being distant from clients. A client with a digital bank is likely to be more independent when making a decision, but bank employees should remain contactable to ensure they can support customers as soon as they are needed. ActivoBank is able to achieve this thanks to our precise customer relationship management solutions and our commitment to developing products and services that anticipate clients’ needs.

Clients must always feel like there is a human component to a digital bank so they know they can get in contact with staff or even visit a physical branch if necessary

Clients must always feel like there is a human component to a digital bank so they know they can get in contact with staff or even visit a physical branch if necessary. At the same time as being proudly digital, ActivoBank maintains a set of branches – called Pontos Activo – located in easily accessible urban areas and boasting generous opening hours. These branches give our clients the feeling of support that comes with brick-and-mortar outlets. Additionally, our personalised support line means we can always answer our clients’ queries. Of course, social networks have played an integral role in the development of customer service over the past decade: since 2010, we have been active across multiple online channels, answering questions, offering support and sharing information about new developments.

When deciding which functions to digitalise and which should be offered in a more traditional format, banks should remember what customers look for in digital services: autonomy, agility, speed and usability. Sometimes, however, people simply prefer the security that is offered by face-to-face interactions with knowledgeable members of staff.

Looking to the future, ActivoBank will continue to increase its client base, creating value and fostering long-lasting relationships. Digitalisation and innovation will remain the bank’s primary focus and we will continue to embody the values that are a part of our DNA: innovation, accessibility, simplicity, transparency and trust. In the years to come, traditional banking will likely cease to exist. Digital banks will thrive and will operate alongside fintech firms, benefitting from collaborative relationships. Banking will be faster, smarter, safer and more efficient. Institutions that realise this quickly have nothing to fear. If they embrace the change that is set to hit the industry, they can continue to play a major part in its future.

Havas is driving positive social change through creativity – here’s how

Posted on by Max Tomlin

At Havas, we’ve always tried to make a difference to the world around us by embracing innovation and pioneering new business models. When I joined Havas in 2013, we launched our ‘Together’ strategy, which was a game-changer at the time, setting us apart from our competitors. The idea behind the strategy was simple: to serve our clients’ needs by bringing together our most talented employees from all disciplines – creative, media, digital and design.

We also created Havas Villages – unique office environments where teams work collaboratively to deliver great work to our clients. We now have more than 60 Havas Villages across the world, all sharing a common ethos and creative energy. Above all, these villages are designed to be welcoming, healthy and inspiring environments for our most valuable assets: the 20,000 talented individuals who make up the Havas family.

In 2017, we made another transformative move by joining integrated content and media group Vivendi and shifting our focus to become a communications player operating at the core of the creative world, fully investing in culture and content. Our partnership with Vivendi has given us the competitive advantage of privileged access to premium content from other Vivendi assets such as Universal Music, Canal+, Editis and Gameloft. Thanks to our shared culture and global mindset, Havas employees can enjoy an entrepreneurial workplace and broader career development opportunities as a result of the partnership.

Meaning is everything
Throughout its history, Havas Group has demonstrated its ability to rapidly adapt to changes in the communications sector. We have seen our industry transform dramatically in the face of multiple threats, from cuts in marketing budgets and the rise of in-house communications departments to the emergence of new competitors, such as tech giants and consulting firms.

Looking beyond our own industry, more general issues face the world today. According to our The Future of Trust report, the world is seeing a widespread crisis of trust, with 85 percent of respondents considering trust to be a rare value these days. As such, today’s customers are looking for more meaningful and engaging content than ever, changing the way brands and companies operate and how they treat their customers.

Our response to this challenging ecosystem was to put meaningfulness at the core of who we are and what we do. Meaningfulness has always been a solid part of our foundations. Ever since we published our first Meaningful Brands report in 2009, we have understood the importance of measuring the quality of brands’ services and associated business returns.

This ongoing research – covering 350,000 individuals and 1,800 brands in 31 markets – has found that consumers expect brands to provide them with value beyond their products simply addressing the challenges facing society and taking a stand on various issues. Thanks to this precious insight, we know that doing good helps businesses grow, with brands that advocate responsible business outperforming the stock market by more than 134 percent. Meaningfulness is not just a posture – it is a growth driver.

Leading by example
We ‘walk the talk’ with our ambitious corporate social responsibility (CSR) commitments. We focus on three areas: nurturing our people, communicating responsibly and respecting the environment. We are also part of a variety of initiatives that positively contribute to society. One such initiative is the UN’s Common Ground project, which sees industry leaders across the marketing and communications industry collaborating to meet the UN’s Sustainable Development Goals.

In addition, in 2018, our teams dedicated more than 8,000 days to pro bono work for the various causes we support. We have been awarded the Eco-Vadis gold medal for CSR performance two years in a row. We are also advancing our talent programmes and promoting diversity, equity and inclusion across all our agencies.

It is obvious to us that our job at Havas extends beyond supporting brands with their communications: we must use our creative ideas to drive positive change and minimise any negative effect on society. We must share this ethos with the companies we work with by encouraging them to grow sustainably and explore how, beyond their products, they can tangibly improve people’s lives. Our mission is to make a meaningful difference to businesses and people. That is what defines Havas.

Customer satisfaction, employee development and technology behind BPI-Philam’s success

Posted on by Max Tomlin

The Philippine insurance market has undergone steady yet significant growth over the past few years. In 2018, the net profit of the entire sector grew by three percent, or a staggering PHP 37.43bn ($736m). According to GlobalData, gross written premiums are expected to grow a further 25 percent by 2022 (see Fig 1).

The growth of the Philippine insurance sector goes hand in hand with the country’s evolving economy and growing middle class. GlobalData has stated that public infrastructure spending and vulnerability to natural disasters are two of the major drivers behind the rise in demand for insurance in the country. Philippine Insurance Commissioner Dennis B Funa, however, believes that many Filipinos are more likely to invest in insurance today because of the rise of ‘insurtech’. By using technology in the creation of new products and better distribution systems, insurance has become more accessible and more closely aligned with customer needs.

The growth of the Philippine insurance sector goes hand in hand with the country’s evolving economy and its growing middle class

In an article for BusinessMirror, Funa also noted the current trend towards fitness and healthy living. BPI-Philam Life Assurance’s Wellness Series (powered by Philam Vitality) is an example of how insurance has adapted to consumers’ desire for a healthier lifestyle. Philam Vitality provides several health-related benefits for policyholders under BPI-Philam, such as discounted gym memberships.

Insurance has begun to appeal to those who are more wellness-minded, not only those who seek financial security and protection. By attracting new demographics such as these, the Philippine insurance market is expanding its customer base and looking towards a brighter, more robust future.

Incentivising insurance
Despite recent growth, financial literacy remains a hurdle to getting more Filipinos to invest in insurance. According to the World Bank, Filipino adults could, on average, only answer three of seven finance-related questions correctly. The survey, conducted in 2015, included questions on basic numeracy, interest, inflation and investment diversification. It is important for us at BPI-Philam to inform Filipinos about the importance of securing their financial future in order to help them make better financial decisions and decrease their risk of falling into debt.

Every October, BPI-Philam celebrates Bancassurance Month, which is part of our efforts to educate Filipinos on financial wellness, the benefits of insurance and the advantages of getting insured through a bank they trust. We’ve been celebrating Bancassurance Month for four years now, and through this initiative, we have been able to get both existing and prospective clients to visit BPI branches to talk about their financial health.

In 2019, we named the celebration Banca Fiesta and held raffle draws for our customers, giving them the opportunity to win Garmin devices, gym memberships, wellness kits and other prizes. All they had to do was visit a Bank of the Philippine Islands or a BPI Family Savings Bank branch and talk to a bancassurance sales executive (BSE). They were then asked to take the Philam Vitality Age Test, an in-depth quiz that allows individuals to find out how old they are in health terms. BSEs will then educate the customers about the importance of insurance and all the health benefits of getting a Philam-Vitality-integrated policy.

More to come
Aside from the incentives that we offer to potential customers, the hard work of our parent companies is one of the major reasons why we are the number one bancassurance company in the Philippines. BPI-Philam is formed of a strategic alliance between BPI and the Philippine American Life and General Insurance Company (AIA Philam Life). It is also a three-way venture, with BPI owning 51 percent of the company, AIA Philam Life 47 percent and private stakeholders two percent. Our clients and target audience are account holders of BPI.

BPI is a leading commercial bank in the Philippines, with more than 160 years of experience in the local banking industry and an extensive network of 1,000-plus branches and 3,000-plus ATMs nationwide. AIA Philam Life, meanwhile, has been the country’s premier and most trusted life insurer for more than seven decades.

We are also the official bancassurance arm of AIA Group in the Philippines. AIA Group is the second-largest life insurance company in the world and operates in 18 markets across the Asia-Pacific region. This is not to say that everything we’ve achieved is due to the success of our parent companies – it is a great achievement for a company as young as 10 years old to become the country’s number one bancassurance firm. In fact, we became number one at just five years old. We’ve currently only tapped a small portion of BPI’s customer base, yet we remain the market leader for bancassurance; if we can tap into an even larger proportion, the possibilities are huge.

We became the market leader for many reasons, one of which was the people who work for us. BPI-Philam is a relatively young company made up of energetic and technologically adept employees with an average age of just 26. The enthusiasm and dedication of our employees has affected how we do things on an operational level. We are proud of the culture we’ve created within the office, too: BPI-Philam takes good care of its employees by promoting a healthy work-life balance, providing sufficient training, giving free Philam Vitality memberships and encouraging them to participate in health-related activities. We also make sure that while we get the job done, we have fun at the same time.

Despite only being 10 years old, our company has changed markedly over the past decade. In fact, BPI-Philam was called Ayala Life before AIA Philam Life acquired the majority stake in 2009. Just five years after our company began, we became one of the top five life insurers in the Philippines and boasted the highest total premium income. Today, we are the leader in Philippine bancassurance and continue to grow, with an increasing number of BPI branches nationwide. We also work alongside AIA Philam Life to improve our services, both for customers and BSEs. BPI-Philam’s annualised new premiums (ANPs) grew from PHP 659m ($13m) in 2010 to PHP 5.4bn ($106.2m) in 2018. As of June 2019, the company has a year-to-date ANP of PHP 2.8bn ($55.1m).

Purpose over profit
At BPI-Philam, we have a passion for innovation and embrace technology because it means we can greatly improve our customer experience. We’ve adopted and developed new tools to expand our reach and make things easier for both our customers and BSEs. There’s always been a misconception that buying and selling insurance is difficult – even intimidating – due to the amount of paperwork involved in securing a policy, but in this day and age, technology renders that argument invalid. At BPI-Philam, we want to promote digital habits so that buying insurance becomes easier for clients and selling insurance is a breeze for BSEs.

With our customers in mind, we’ve developed a 24/7 online portal called ePlan. Here, clients can easily access their ePolicy, a digital version of their policy contract that can be opened anywhere using a mobile phone, tablet or laptop, provided there’s an internet connection. Through this facility, customers can also manage their policy, monitor policy values, view their payment history, update their contact information and perform policy transactions, including loans, partial redemptions and reinstatements.

For BSEs, we have our Interactive Point of Sale (iPoS) and Interactive Customer Assistance and Requirements eSubmission (iCARE). IPoS was designed to make the application submission process easier for BSEs; iCARE, on the other hand, makes after-sales servicing quick and convenient. These two applications can be accessed through what we call our Bancassurance Portal, which is a suite of tools that BSEs can use for selling insurance and managing their clients’ policies.

We invest a lot in our BSEs – we want to make sure they are equipped with the knowledge, skills and tools to best serve our customers. It’s not just a one-time effort, either: we ensure that we provide continuous support to our BSEs through regular training, effective communications and a nurturing company culture. They are our agents of change, playing a big role in the success of the business. All of our customer service efforts are anchored on customer centricity, which is a value our business fully commits to. Through customer centricity, decisions made within the company are judged upon how they will further improve the customer experience.

We all know that insurance is an important investment. That is why the insurance industry is heavily reliant on how well the business understands and addresses customer needs. Customer service is not just about making a sale – it should also represent the business’ efforts to connect with its clients. Nurturing relationships with customers and putting their needs first are two of the best ways of making them entrust their life savings with you. What’s more, excellent service shows our customers that we are here to help secure their finances and protect what – and who – matters most to them. Our company has a purpose-led promise to help our clients live healthier, longer and better lives.

Psagot Winery breathes new life into Israeli winemaking with specialist technology

Posted on by Max Tomlin

Winemaking in Israel has a long history, but it is far from straightforward. The country, like many others situated along the Mediterranean coast, is blessed with the right climate and soil to create some of the world’s finest wines, but a range of cultural factors meant that production fell out of favour in the country for centuries. However, it has since made an astounding comeback.

Today, Israeli winemakers produce more than 33 million bottles a year, and they are often award winners. The country’s top wineries sell their wares around the world, with exports accounting for 20 percent of Israel’s total wine sales. Although the Jewish diaspora makes up a sizeable portion of these international sales – especially during the Rosh Hashanah and Passover holidays, when kosher products must be consumed – Israel’s wines have a broader appeal, too. Sales of Israeli wine in Asia continue to grow steadily, and many of the country’s winemakers are keen to enter new markets.

Psagot’s wine is produced from grapes grown in the same area where the biblical Abraham grew and made his own wine

One of Israeli wine’s biggest success stories is Psagot Winery. Located just north of Jerusalem in the Binyamin region, the winery has gone from strength to strength since its formation in 2003, receiving numerous awards for the 11 wines it produces, including World Finance’s Best Fine Wine Producer in Israel 2019. We spoke with Yaakov Berg, the company’s founder and CEO, to learn how Psagot Winery is using innovative technology to breathe fresh life into an industry that has deep roots.

What makes Israeli wine – and Psagot in particular – so special?
Psagot’s wine is produced from grapes grown in the same area where the biblical Abraham – father of monotheism – grew and made his own wine. Some 3,000 years later, the region’s modern wines are being recognised by international publications as some of the best in the world.

My co-winemaker, Yaacov Oryah, and I are committed to producing world-class Israeli wines that are true to the terroir they come from; if our wines can’t be great, we simply won’t make them. Our particular focus is on achieving balance, but this can be challenging in a hot, arid climate like Israel’s. As such, we employ all kinds of techniques to achieve the perfect finished product. Ultimately, we make wine for the consumer, not the critic – the fact that critics like our products is simply an added bonus. The many accolades we have achieved over the years indicate that our approach is the right one.

What role does history play in the story of Israeli wine?
Until the end of the 19th century, no wine had been produced in Israel for hundreds of years – a result of the Ottoman Empire’s control of the region and the fact that wine was forbidden in the Islamic community. In the late 1800s, Edmond de Rothschild reintroduced Vitis vinifera (the common grape vine) to the region, prompting the first wave of modern winemaking. More recently, Psagot – alongside Domaine du Castel and other wineries situated in the Judean Hills – has committed itself to championing local winemaking.

Psagot’s appreciation of history is exemplified by its branding. The coin seen on our wine bottles is a replica of one found in an ancient cave located on our land. The cave dates back to the time of the Second Temple, more than 2,000 years ago, while the coin can be traced to the First Jewish-Roman War, which took place between 66 and 73 AD. One face of the coin shows an amphora, a vessel for storing wine, and the other side depicts a grape leaf. The coin symbolises the preservation of the winemaking tradition and our connection to our biblical and agricultural roots. In the cave, we also found the remnants of a winepress.

How has Israeli wine been received by the worldwide market?
France, Italy and Spain are internationally recognised for their wines. However, the Eastern Mediterranean region, where Israel is located, benefits from the same environmental factors that result in such excellent wines in Western Europe. Wine drinkers are always searching for the next great viticultural region, and many are now setting their sights on Israel.

My feeling is that, while European wine drinkers often consume wine primarily from their country of residence, many are looking for something new, fresh and as good as what their home market has to offer. My goal is to say, “If you love Bordeaux, why not try our Edom?” Nordic countries, meanwhile, have always been open to trying wines from other countries. It helps that the Jewish diaspora has connected the country with people around the world.

How has Israeli wine become so relevant?
The development of Israeli wine has been many years in the making. It advanced in the late 1980s when wines from the Golan Heights began to gain recognition from internationally renowned winemakers. A boost came in the 1990s when critic Jancis Robinson wrote about the wines being produced in the Judean Hills. More recently, the Wines of Israel marketing campaign has placed global attention on the quality and value of the country’s wines.

Jay Buchsbaum, Director of Consumer Education at Royal Wine, the company representing Psagot outside of Israel, noted that the focus Israeli wineries place on quality has paid dividends. We’ve achieved this through attention to detail, starting at the source and continuing with multiple tasting sessions. It may appear as though Israel’s wine scene has grown quickly, but a great deal of hard work, effort and skill have been put into the process.

What are the advantages of using modern winegrowing techniques?
Israel is considered to have few natural resources, so its citizens have always used their spirit and intellect to achieve success, leading many to refer to the country as the ‘start-up nation’. This culture of experimentation and innovation is key to developing grape varieties that are not only new but also of a higher quality than previously achieved, which ultimately results in the production of better wines.

Many of the practices used by Psagot and other Israeli wineries are now being employed around the world: drip irrigation was invented and perfected in Israel, and the country has also pioneered vineyard monitoring systems, among other technology-based innovations. Some wineries have transitioned to ecologically balanced vineyard operations, which don’t use pesticides. This has proved to be an effective means of production and brought additional benefits to local wildlife: many species have returned to areas that use this method. It has since been adopted by several Californian wineries.

What makes Israel’s topography ideal for wine production?
Israel boasts diverse topography and geography, which includes volcanic soil in the north, clay-rich terra rossa soil in the Judean Hills and sandy, loamy soil in the valleys of the Negev region. Each distinct soil profile produces a unique grape.

The weather, too, is diverse. Although Israel is thought of as a desert area, snow often covers vineyards in both the Golan Heights and the Judean Hills, giving them full dormancy that brings out a complexity of taste in the grape. Overall, the diversity of vineyards and terroir is pronounced across Israel, allowing the country to build a truly broad range of wines.

Israel is producing award-winning wines – why do you think that is?
A huge number of factors are contributing to the country’s award-winning wines. First and foremost are our excellent grapes, which benefit from the strength and diversity of our terroir. When this is combined with cutting-edge winemaking technology, the latest growing techniques and talented winemakers, it’s easy to see why Psagot Winery and Israeli wines more generally are receiving such widespread acclaim.

W&T Offshore: investment in technology crucial to driving returns in the Gulf of Mexico

Posted on by Max Tomlin

W&T Offshore has been active in the Gulf of Mexico (GOM) for more than 35 years, and knows the basin extremely well as a result of our keen focus in the region. We have always prioritised free cash flow generation and believe the GOM is the premier basin in the US for generating strong, sustainable cash flows. While other energy companies have moved onshore, we have repeatedly increased our position in the region through a series of successful acquisitions and drilling projects.

We have operations in both shallow and deepwater regions in the GOM and intend to remain active in both sectors. We will achieve this through a combination of acquisitions, lease sale participation, and exploration and development drilling on properties we already own or can access via farm-ins. In terms of exploratory drilling, we tend to be more focused on prospects near existing infrastructure so we can put successful wells online quickly. We prioritise projects based on economic returns and cash flow generation, regardless of whether they are in shallow or deepwater regions.

W&T Offshore prioritises projects based on economic returns and cash flow generation, regardless of whether they are in shallow or deepwater regions

Being focused on the GOM for so long makes a big difference. Over this period, we have developed a strong reputation with other operators in the GOM as well as with property sellers. We also work well with all the relevant federal and state regulatory agencies. We are proud of our safety record and have a very strong drilling success record. We believe our positive operational track record, combined with an ongoing successful acquisition strategy, has enabled us to thrive and create value for our shareholders. It’s a reputation that we intend to maintain and bolster over many more years working in the region.

Having a field day
Over nearly four decades operating in the GOM, we have enjoyed a number of successes. In the shallow water sector, a great example is our Mahogany field. Since acquiring the field in 2011, we have substantially expanded its size and depth by drilling or sidetracking 13 new production locations. The field is one of our key assets, and we have a quality inventory of future drilling projects that will enable us to extend the reservoir even further. We have increased production more than 10 times since acquiring the field.

In the deepwater region, a good example is the Gladden Deep well, which we discovered in June 2019. The well was drilled in approximately 3,000ft of water that encountered 201ft of net oil pay. W&T operates the well and owns a 17.25 percent stake in the discovery. The well was completed and placed on production ahead of schedule in Q3 2019, and is currently producing approximately 4,600 gross barrels of oil equivalent per day, with 89 percent of production being oil. We are proud of how quickly and efficiently we were able to get the well drilled and online despite it being a deepwater site, which used to take much longer to drill and start producing.

As well as these successes, we have been granted additional offshore leases, which we have high hopes for. We have been active in federal lease sales for a number of years and participated in two that were held earlier in 2019. We were awarded 15 leases in the first sale in March, when we acquired seven leases in shallow water and eight in deepwater. In August, both leases we acquired were in shallow water. We paid less than $4m for all 17 blocks, covering 83,800 acres. We intend to continue participating in future lease sales, as this is a low-cost way to add new drilling opportunities that complement our existing operations in nearby fields.

Investing in information
We have a pretty simple strategy for acquisitions. We look for properties that meet three criteria: first, they must have positive cash flow and a good reserve base; second, they should have opportunities where drilling can add value; and third, they must allow us to make an impact regarding workovers, recompletions and facility upgrades that can increase near-term cash flow.

ExxonMobil’s Mobile Bay assets met all these criteria, and our purchase of them made us the largest operator in the area. We also understand the Mobile Bay assets very well as we own and operate the Fairway field, which is adjacent to the acquired assets. At the Fairway field, we have more than tripled proven reserves since we acquired it in 2011 by substantially reducing operating costs and enhancing production, without drilling a single well. We believe similar low-risk, high-upside opportunities exist in the Mobile Bay assets.

Currently, one of our priorities is maximising the potential of these new properties. We are looking at how we can improve efficiency and reduce operating costs. W&T Offshore also has an onshore gas plant that is near the one ExxonMobil owned, so we are looking at how to make use of that increased capacity. We have identified several exciting drilling opportunities on those assets and will be seeking drilling permits to potentially begin drilling them in late 2020.

Making the most of our current and future assets also involves exploring any new technological developments that emerge. We are committed to using technology in all facets of our operations, particularly in selecting our prospects and ongoing drilling activities. We have invested heavily in seismic predictors and have developed the expertise in house to fully utilise that technology. Our use of 3D seismic data has significantly reduced our drilling risk and increased our drilling success rate to about 94 percent on all wells since 2011.

Unlike onshore shale plays, where acquiring data over large plays from numerous sources can be beneficial, every offshore field and reservoir is different. Data gathered over a large area in the GOM is not nearly as expensive as it is over a shale play onshore. The processing of 3D seismic data is a major key to our success and we will continue to invest in technology and a team that can best use that technology.

Different from the rest
In recent years, the development of the onshore US shale market has dramatically restructured the global oil and gas market. At W&T, our ability to consistently generate free cash flow helps us differentiate ourselves from competitors. All of the wells we drill in the GOM are conventional wells, compared with unconventional wells in the shale plays. Unconventional wells decline at a much steeper rate, and shale plays require considerably more capital to maintain or grow.

Offshore, we can adjust our capital investments when oil prices fall, while the high porosity and permeability of offshore reservoirs often requires fewer wells to produce large reserves of oil and gas. We have been cash-flow-positive for most of the time, and our strategy is focused on staying that way. We have the luxury of deciding whether to invest our free cash flow in acquisitions, drilling, reducing debt or paying dividends to shareholders. Most onshore exploration and production firms in the shale plays have to keep reinvesting in drilling wells and are trying to become free-cash-flow-positive.

The huge growth in the shale plays has certainly had an impact on the amount of oil and gas the US produces. As an industry, we are exporting more oil and developing liquefied natural gas infrastructure along the Gulf Coast so we can export natural gas as well. For onshore players, this has caused pricing issues when there isn’t sufficient pipeline capacity to move onshore oil and gas production to the right locations. At W&T, we are well positioned to achieve favourable pricing as our crude is needed at Gulf Coast refineries, while our natural gas benefits from good Henry Hub pricing because of our access to a number of pipelines along the Gulf Coast.

As well as competing against onshore shale players, W&T also makes sure to differentiate itself from its offshore peers. To do so, we are primarily focused on acquisitions and staying within the GOM. We believe this approach has served us well in the past, as it has minimised our risk and allowed us to use our expertise to reduce costs, increase cash flow and find additional reserves that were left behind by sellers who have moved onshore and sold their properties to us. We will drill exploratory wells, but our primary focus is on building value through acquisitions. We think our track record in that regard speaks for itself.

The steps you can take to become a great trader

Posted on by Max Tomlin

For a trader to be successful, they need many attributes: research and analytical skills to monitor broad economic factors; concentration to focus in fast-moving environments; self-control to regulate their emotions when things are not going to plan; and accurate record keeping.

Gaining insight from an established broker can also be of great assistance, which is why World Finance spoke to Giles Coghlan, Chief Currency Analyst at HYCM, to learn what it takes to be a successful trader and what practices are best avoided.

Learn your lessons
Common mistakes that traders initially make include over-leveraging their investment, risking too much capital and desperately trying to win back earlier losses. The latter, known as ‘revenge trading’, encourages individuals to increase their risk before jumping in on any trade and often results in losing more money. It is important, therefore, to master the skill of conviction as a trader, because, as Coghlan said, “when you are convinced about your trade you should be able to hold it”.

The biggest lesson Coghlan has learnt from his life of trading is to “never over-leverage”. The Swiss National Bank’s surprise decision to unpeg the Swiss franc from the euro in 2015, for example, provided a great learning experience for any trader, demonstrating the importance of being prepared for all outcomes when trading.

Too much risk can lead traders to cash out profits prematurely, entering and exiting the market out of fear, rather than at the most beneficial moment

“The lesson was that unexpected events can, and do, occur in the markets – there are no ‘certain’ trades and no ‘sure-fire’ winners,” Coghlan explained. “Always expect the unexpected.”

Similarly, Coghlan emphasised that the idea of luck in trading is, in reality, more often the result of being prepared for all scenarios: “The way to manage unexpected price moves is to ensure that you have stop-loss and take-profit orders on every trade you place in the market and are, therefore, prepared for any scenario. I always tell traders to focus on their trading education – this is more integral to their success than Lady Luck.”

Choose wisely
When selecting a broker, individuals need to consider how regulated the broker is. Coghlan used the UK as an example: “Financial-Conduct-Authority-regulated brokers are backed by the UK Government, and so if the company were to ever collapse, the Financial Services Compensation Scheme would remunerate you up to a specific amount.” A trusted broker is not as likely to collapse, of course, but it is important to be aware of what provisions are in place should such an event occur.

More specifically, some individual traders have made an impression on Coghlan, leading him to believe inexperienced traders should heed their advice. “One trader I admire is Jarratt Davis,” Coghlan told World Finance. “I admire his ability to not only trade using fundamentals, but also his ability to explain that concept fully. From dealing with Jarratt, I admire his personality – he’s not only a great trader but also a great guy.”

For traders looking to improve, Coghlan recommends taking fewer risks. Too much risk can lead traders to cash out profits prematurely, entering and exiting the market out of fear, rather than at the most beneficial moment.

Of course, risk is unavoidable when it comes to investing. At HYCM, contract for difference (CFD) trades are always accompanied by a ‘high-risk investment warning’. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage – 67 percent of retail investor accounts lose money when trading CFDs with HYCM. Every investor should consider whether they have a full understanding of CFDs before they start trading.

“For me, a great trader is someone who manages risk and their emotions, and picks their moments carefully,” Coghlan said. “They responsibly manage and use their wealth not only for their own benefit but also for the good of those around them.”

The dangers of fiscal Europe

Posted on by Max Tomlin

Since it was established, the EU has harnessed tax measures to stimulate economic growth among its member states. Through the creation of a single market, it ensured the total abolition of customs duties between member states, as well as the elaboration of a common customs system. This system of free trade has made a significant contribution to the prosperity of European citizens.

But the single market – founded on liberal principles – was accompanied by a common agricultural policy based on opposing ideas. This common agricultural policy led to the subsidisation of loss-making productions and made many self-employed farmers dependent on the state.

The single market also unified rules on the taxable basis for value-added tax (VAT), which helped foster trade between states. What is less well known, however, is that this harmonisation is still incomplete, as it does not concern rates of VAT. Over time, the EU has started to take a position here, setting minimum – but not maximum – VAT rates. Unfortunately, this helps pave the way for a European fiscal policy that prevents tax competition without protecting taxpayers.

A Europe that can collect more taxes will have a larger budget and will more easily acquire additional capabilities

Stifling competition
With the exception of the EU Savings Directive, Europe has done little in the field of personal tax – in principle, its institutions don’t have the power to do so. In the field of corporate tax, though, there is an increasing number of directives that harbour the sole objective of reducing tax competition between countries by preventing states from granting advantages to businesses.

This policy is dictated by the larger, more influential members of the EU – such as France and Germany – and imposed upon the smaller ones. Unlike France and Germany, countries such as Belgium, Luxembourg, the Netherlands and Ireland can’t offer businesses access to a wide net of customers. As a result, they have always felt the need to attract foreign companies through tax advantages. These tax advantages are lawful so long as they are not selective – that is, providing they are equally accessible to all.

Today, the European Commission is trying to erode these advantages by using rules of competition law that have not been designed for this purpose. This is dangerous for small countries with tax systems that provide benefits by reducing their tax base. Without tax advantages to offer, these states could lose their appeal among foreign businesses.

The EU is issuing more directives like this, including anti-abuse measures, bans on granting intellectual rights benefits, limits on deductible corporate interests and, most recently, new reporting obligations in the aggressive tax planning area. These directives are almost exclusively intended to maintain a certain degree of taxation. Fundamental issues such as the establishment of a European ‘fiscal shield’ – which would limit taxation in relation to GDP, or the taxation of each individual in relation to their income – are never discussed, as they’re not of interest to the EU. In fact, only the protection of tax revenues in individual members or the bloc itself seems to justify the EU’s interest.

Certain EU states – principally the smallest – react by keeping tax rates low. This is what Ireland has long done with its 12.5 percent rate for corporations. Bulgaria, Romania and Lithuania also offer low rates, while Hungary has the EU’s lowest corporation tax at just nine percent (see Fig 1). This is a logical move that helps these nations remain competitive, but it is feared that the most federalist or statist Europeans could push for a set minimum corporate tax rate. As a result, the EU could start treating states in the same way it treats companies that operate in violation of EU competition laws.

This is in line with the approach adopted by the European institutions that have never hidden their desire to achieve a uniform tax system. We can see this through the introduction of the Action Plan on VAT and the proposal for a Common Consolidated Corporate Tax Base. The European institutions believe that such measures could lead to the introduction of a single European company tax.

All for one, not one for all
In light of these factors, a question inevitably arises: does Europe actually need taxes? In the EU, the principle of fiscal sovereignty generally prevails. This means that states freely regulate their tax systems and choose whether or not to implement certain types of tax, thereby determining their taxable base. The EU benefits from certain tax resources, such as customs duties or a small part of VAT, but can’t otherwise tax nationals or residents of the union. For this to happen, a treaty must grant it such power.

In this period of European crisis, those who advocate greater European integration are torn between two contradictory feelings. On the one hand, Brexit is a danger to European unity – as one of the most important members of the union, many spectators fear that the UK’s departure could set a precedent among other states. On the other, federalists – those who dream of a United States of Europe – see this as an opportunity. The UK has never been a proponent of strong European integration and has often blocked common policy development. As such, its departure may lead to some European progress on policies that the UK had blocked.

Some of these federalists want to give the EU greater influence over taxation, favouring a union that can levy a tax on the income of individuals or companies. In other words, they seek to implement the US model of taxation, in which there is a corporate and personal tax at the federal level, while states collect income taxes for their own benefit. In the case of indirect taxes, however, integration is most advanced in Europe.

The introduction of additional tax power – on income, for example – at a union level is a key issue in the development of the EU and its possible orientation towards a federal system. Political power always depends on a state’s ability to raise taxes; a Europe that can collect more taxes will have a larger budget and will more easily acquire additional capabilities.

Europe as a federation
We must ask ourselves whether it is desirable to create a European federal body with significant fiscal powers. The EU has made a significant contribution to the prosperity of its inhabitants by increasing freedoms, particularly through the creation of a single market. In doing so, it has somewhat reduced the influence states can impose on their citizens.

But this has also restricted some freedoms. When the EU moved towards becoming a political authority, it began to regulate whole areas of the economy and people’s lives. It has itself become a power that is exercised – directly or indirectly – on businesses and individuals. By granting additional capabilities to the EU, at best, one only shifts the burden from individual states to a higher level. This means that the principle of subsidiarity – according to which, decisions must be taken as close to citizens as possible – will be further eroded.

Worse still, there has been no instance of a government agreeing to reduce its revenues: for example, although the Federal Government of Belgium consistently claims that it is cutting taxes, its revenues are increasing in tandem. It seems certain that if the EU were to be granted fiscal power, individual states would not reduce their revenues and would continue to raise tax as much as they do now. The granting of fiscal power to the EU will, therefore, lead to an increase in taxes for businesses and individuals.

Europe is already the most taxed continent in the world. Granting the EU taxation powers would only exacerbate this situation, making the bloc unappealing to investors and reducing its members’ competitiveness on the global stage.

Fubon eases the pressures of an ageing population by providing professional healthcare education

Posted on by Max Tomlin

Life insurance benefits individuals and stabilises society. At Fubon Life Insurance, we uphold a spirit of serving the common good by bringing positive social influence to Taiwan. We have been awarded the title of Best Life Insurance Company in Taiwan by World Finance on eight occasions and have received numerous other industry awards, including in five categories at the Taiwan Insurance Excellence Awards and being named Best Insurance Company at the 2019 Insurance Faith, Hope and Love Awards.

Fubon has placed great emphasis on tackling the complications that can accompany an ageing population

Fubon maintains a great focus on the sustainable development of the company. By leveraging our business strength, product innovation, digital services and community development projects, we have been able to act on market trends while maintaining stable growth. The company provides timely assistance to the public through considerate and efficient customer service, demonstrating our determination to serve the Taiwanese market.

Community care
Taiwan’s insurance penetration and density rates are among the highest in the world (see Fig 1), but the overall market and social environment still poses risks. Fubon is always introducing innovative new products to meet the insurance needs of customers at every stage of their lives. For example, in response to the needs of our ageing society, we encourage policyholders to engage in health management and disease prevention. Taiwan’s government has launched an ambitious long-term care plan, which offers subsidised nursing, meals and transport to senior citizens. We have responded to this policy by introducing basic insurance protection for older individuals.

Fubon has placed great emphasis on tackling the complications that can accompany an ageing population, such as the increase in dementia cases. A major concern is that individuals may become disorientated and get lost, placing them in danger. To manage this issue, we have introduced a missing patient bracelet that is prescribed by physicians after a definitive diagnosis of dementia. This has assisted in the creation of a dementia patient searching network across more than 100 hospitals in Taiwan. In a short space of time, the adoption rate of this identification bracelet has increased by 33 percent. According to our data, nearly 100 percent of missing dementia patients are found if they are wearing the bracelet.

Fubon organises workshops across the country to improve the lives of dementia patients and their carers. Through professional healthcare education, we work to ensure both groups receive the correct support. We are also involved in projects to raise public awareness of other age-related diseases.

Taking responsibility
We don’t just care for society through our policies, but also in the way our business operates. Through the adoption of digital finance and insurance technology, Fubon promotes paperless services to make the company more environmentally friendly. This doesn’t mean we have forgotten the importance of providing human interaction when delivering services to our policyholders, though. Fubon has optimised its operational efficiency at each stage of the insurance application process and has launched a smart claims system to ensure policyholders receive the best service. For example, applicants can now use video conferencing technology to communicate with our advisors.

Talent is the key to all sustainable business development. As such, Fubon seeks to create a workplace environment that encourages our insurance agents to move up the career ladder. Through our professional training programme, we are able to improve the expertise of our teams. This helps us optimise our existing services and create new business opportunities through innovative insurance technology, which our staff are fully trained in.

Being recognised for our work provides welcome validation, but it also reaffirms our responsibility and commitment to our policyholders. To protect the four million families that make up our customer base in Taiwan, Fubon has been actively embracing digital technology and focusing on talent cultivation to provide meticulous and well-rounded customer service. We are keen to respond to social trends and changing customer expectations, and are actively addressing the uneven distribution of resources between the rural and urban areas of Taiwan by expanding our service locations.

Fubon will continue to shoulder the responsibility of being the guardian of families in Taiwan, pursuing global expansion and striving to become the number one brand in the Asian life insurance market.

Nigeria’s Access Bank continues to put its principles ahead of profit

Posted on by Ashton Wenborn

The UN estimates that achieving its 17 Sustainable Development Goals will require an annual investment of $5-7trn across all sectors. It’s a vast sum, but one the world’s financial markets do have access to. Having recognised the importance of achieving the UN’s goals, many financial institutions are now developing sustainable finance tools with which to mobilise their funds.

Through its Environment Programme Finance Initiative (UNEP FI), the UN supports these forward-thinking institutions. The platform helps banks, insurers and investors scale up their efforts and promote sustainable financing on an international level. It also facilitates collaboration across the sector and promotes adherence to the UNEP FI’s six Principles of Responsible Banking. These principles provide the banking industry with a single framework for its sustainable development, in line with the Paris Agreement.

The private sector represents an influential part of any economy and should therefore play a significant role in its development

A sense of urgency
Of course, public funding is integral to the advancement of sustainability efforts, but governments and non-governmental organisations alone cannot cover the costs of such wide-reaching change. The private sector represents an influential part of any economy and should therefore play a significant role in its development.

Historically, though, banks have not been on the front line of sustainability initiatives. However, the sector cannot continue to finance projects that are at odds with the UN’s goals. Access Bank recognises that sustainable growth is not only urgent, but also brings benefits to its stakeholders. This is why we will continue to contribute to Nigeria’s sustainability efforts.

In 2012, the Central Bank of Nigeria launched the Nigerian Sustainable Banking Principles. The compulsory guidelines require banks to mitigate the environmental and social risks of their business activities.

Even before these principles were launched, though, Access Bank had rooted its corporate identity in sustainability. As key stakeholders in the economic sustainability effort, we believe it is important that the services offered by financial institutions cater to the micro, small and medium-sized enterprises that have long served as drivers of the Nigerian economy.

Sustainable development is so important to Access Bank’s identity that it dedicates one percent of its profits before tax to sustainability projects and partnerships

The bank has exhibited this belief through several laudable initiatives. For example, it hosts a cloud-based applications management platform that provides information on how to acquire grants, helps funding bodies to manage grants and applications, and allows institutions to share information and collaborate. Access Bank also recently held its first Womenpreneur Pitch-A-Ton, which received thousands of applications from highly skilled business owners.

Participating in change
Sustainable development is so important to the bank’s identity that it dedicates one percent of its profits before tax to sustainability projects and partnerships. A trained sustainability unit, headed by top management staff, oversees these initiatives.

Our employees are given many opportunities to participate in environmentally friendly nation-building programmes throughout the year. One of the most engaging ways employees do this is through our Employee Volunteering Scheme, which gives staff the chance to work on impactful social projects from start to finish. Through this scheme, our sustainability unit guides employees in supporting a cause of their choice and partnering with beneficiaries to shape the project.

Alongside the Employee Volunteering Scheme, dedicated members of staff are inducted into the Sustainability Champions Network. There are currently more than 1,700 Sustainability Champions at the bank, working to ensure they have a positive impact on society.

In terms of environmental impact, the bank recently issued Africa’s first Corporate Bonds Initiative-certified green bond – a NGN 15bn ($41.48m) bond that will be used to support climate-friendly projects. It also provides a viable asset class for environmentally friendly investors, helping them reduce their carbon emissions and find opportunities in the fast-developing low-carbon economy.

Access Bank will continue to prioritise environmental, social and governance considerations within all its decision-making processes. Starting at the executive level, commitment to sustainability is expressed throughout the company. It is a value that lies at the heart of every activity and project undertaken by the bank.

Sri Lanka’s life insurance sector is preparing for a significant demographic shift

Posted on by Ashton Wenborn

Sri Lanka’s population is ageing faster than any other in South Asia. According to the most recent Sri Lanka Population and Housing Census, the number of over-60s in the country has more than doubled since 1953, comprising 12.4 percent of the population in 2012. The World Bank estimates that one in four Sri Lankans will be older than 60 by 2041.

According to a 2012 World Bank report on demographic transition, for every 100 working-age people in Sri Lanka in 2001, there were 41 child dependants and 14 elderly dependants. The number of child dependants is predicted to decrease to 25 by 2036, while elderly dependants will increase to 36. As such, there will be fewer people to look after Sri Lanka’s elderly population in the years to come.

The challenges that will emerge as Sri Lanka’s population gets older are vast. World Finance spoke with Rajkumar Renganathan, Chair of Ceylinco Life Insurance, about how the country can adapt to the coming demographic changes.

What is causing Sri Lanka’s current demographic shift?
Declining fertility, falling mortality rates, increasing life expectancy and emigration have become major causes of the country’s growing elderly population. The World Bank reports that the fertility rate in Sri Lanka has steadily decreased over the decades, from 5.54 in 1960 to 2.2 in 2017 (see Fig 1). Life expectancy for Sri Lankans was 76 years in 2019, compared with 59 in 1960. These factors all contribute to a swelling elderly population.

As Sri Lanka’s population gets older, what challenges will arise?
One of the biggest challenges of an ageing population can be quantified by a life cycle deficit, which measures the difference between consumption and labour income for a certain age group. With Sri Lanka’s demographic shift, the proportion of the population that is consuming more than it earns will increase, putting pressure on the working-age population to finance this upward transfer. As the costs of medical care increase, supporting elderly dependants is only going to become more burdensome, especially if there is more than one person to provide for.

Although Sri Lanka is traditionally a culture that cares for its elders, factors such as globalisation, industrialisation, better access to education and emigration have widened the gap between the elderly and the youth populations. The usual family unit has also shifted from extended to nuclear. This could pose a problem to those who become elderly dependants in the future as they have limited access to caregivers.

How should individuals plan for retirement to ensure a good quality of life in their later years?
The alarming statistics already quoted tell us that early retirement planning is of critical importance. Besides the factors outlined, another thing to consider is that the Sri Lankan private sector does not pay pensions after the retirement age of 55. Therefore, it is essential that individuals – especially those working in the private sector – make decisions about their retirement savings early in life. To ensure the whole population has access to advice about their pension, Ceylinco Life has more than 275 branches spread across the country.

What does the company’s La Serena subsidiary offer retirees?
Ceylinco La Serena is a first-of-its-kind retirement resort in Sri Lanka, catering to newly retired or semi-retired individuals who are looking to maintain their independence, be reasonably active and enjoy a hotel-like environment. It comprises 44 self-contained, fully furnished, well-equipped and regularly serviced living units, and is located on beachfront land in the Uswetakeiyawa fishing village, a few kilometres from the capital, Colombo. It is designed to give a sense of community to its elderly residents and bring like-minded people together.

With Sri Lanka’s demographic shift, the proportion of the population that is consuming more than it earns will increase, putting pressure on the working-age population to finance this upward transfer

What makes Ceylinco Life Insurance stand out from other insurance firms in the country?
Ceylinco Life has been in the business of insuring lives in Sri Lanka for more than 30 years. During that time, it was the market leader in the industry for 15 consecutive years. To date, the company has provided cover for nearly one million people and is committed to the principle that life insurance providers should have a relationship with their clients for life.

The company has introduced ‘life insurance week’ and ‘retirement planning month’ to Sri Lanka in order to improve the public’s awareness and understanding of the benefits that preparing for retirement brings. We have consistently focused on the importance of educating people about how they can benefit from doing so. For example, in 2018, the company ran a retirement campaign titled ‘the 30 day plan for 30 years of serenity’. The scheme highlighted how people could prepare for a fruitful retirement in just one month. Some 4,000 members of the Ceylinco Life sales team were deployed in door-to-door visits across Sri Lanka to take this message to the masses.

Ceylinco Life also recently launched an innovative life insurance product, the likes of which had not been seen in Sri Lanka before. Named ‘smart protection’, it offers a payout that is eight times the sum assured and guarantees a refund of the sum assured plus total premiums paid at maturity. Products of this nature help drive penetration of life insurance and retirement planning in the country, setting the company apart from its competition.

Could you go into detail about some of the company’s corporate social responsibility (CSR) programmes?
Ceylinco Life’s CSR projects are mainly focused on education and healthcare. In the area of education, the company has donated 80 purpose-built classrooms to disadvantaged schools over the past 15 years and continues to monitor and maintain each one to this day. Ceylinco Life has invested nearly LKR 50m ($278,500) in this initiative to improve facilities and the learning environment for students.

In the sphere of healthcare, the company is well known for its ‘waidya hamuwa’, or ‘meet the doctor’, programme. In 2018 alone, more than 4,400 Sri Lankans – most of them from rural areas – were provided with access to doctors through the scheme. To date, Ceylinco Life has reached approximately 142,000 people through free medical camps held in 375 locations across the country. These medical camps are overseen by qualified and experienced doctors and nursing staff attached to the state health sector and private laboratories. Medical check-ups and health screenings, including blood sugar, blood pressure, vision, ECG scans and kidney scans, are offered at these medical camps.

The company has also donated high-dependency units (HDUs) to five hospitals since 2012. Clinics that have benefitted are the Kandy Teaching Hospital, Lady Ridgeway Hospital for Children, the National Hospital of Sri Lanka, the Jaffna Teaching Hospital and the Colombo South Teaching Hospital. HDUs are used as a space for patients being upgraded from normal care or as a transition down from intensive care. They can be used for post-surgery care before transferring patients to other wards, or to treat intensive diseases such as dengue fever.

What are Ceylinco Life Insurance’s plans for the next five years?
As the market leader in Sri Lanka, Ceylinco Life Insurance will continue to set the benchmark in the industry by introducing new products and upgrading its existing offering, including attractive retirement plans to suit any client. The company will further drive awareness of life insurance and retirement planning to improve citizens’ later years.