KBC is an international banking and insurance group with 42,000 employees and 12 million clients across Belgium, Slovakia, Hungary, Bulgaria and the Czech Republic. KBC Asset Management NV (KBC AM) acts as the group’s investment arm, working with 2.8 million retail and institutional investors, developing products for intra-group distribution and providing investment fund sales and advisory support. At the core of our day-to-day motivation lies our motto ‘Everyone invested all the time’ and our mission remains clear: make investing a healthy financial habit for everyone, keep clients feeling comfortable when investing and so keep them invested, and do this in a personalised, though efficient way.
Sustainability is key
It is clear that the world has shifted towards sustainability. This trend can’t be stopped because it is driven by ethical concerns, financial incentives, protecting the environment, and making sure workers are healthy and happy. It has become a crucial focus for businesses and investors across the world.
At KBC Asset Management, we integrated sustainability into our overall corporate strategy. The basic condition for sustainability is financial resilience and vice versa. Only by focusing on long-term sustained financial performance and strict risk management are we able to honour all our commitments.
Our customers also want to contribute in this area. Responsible Investing (RI) is a way of allowing clients to combine their financial goals with their concerns for the environment, society and corporate governance. The impact of global warming is one of the greatest challenges the world faces and will have a significant and lasting impact on economic growth and prosperity. As a large financial institution, we want to play a leading role and be a significant lever in the process of transition to a more sustainable society and a low carbon economy, by working together with all stakeholders.
Since 1992, KBC has adapted its sustainability policies to reflect changing insights. It is also the year we launched the first Responsible Investing fund in Belgium. We regularly bring new solutions to the market and our methodology has become increasingly stringent. KBC Asset Management was also the first financial institution in Belgium to have its own Responsible Investing research unit.
Fully in line with our sustainability strategy, all Responsible Investing funds have been fossil fuel-free since November 2017. And in May 2018 KBC launched Pricos SRI, the first SRI pension savings fund on the Belgian market. In 2019, all our Responsible Investing funds in Belgium obtained the ‘Towards Sustainability’ label, an initiative of Febelfin (the Belgian Financial Sector Federation).
Remaining on top of things
We are, and remain, a pioneer regarding Responsible Investing. That said, it is a strategic choice to keep on top of the developments in our industry. That includes being future proof in a lot of areas: up-to-date methodology, investment solutions that take the current sustainable challenges into account and providing state-of-the-art reporting. In fact we recently updated our Responsible Investing methodology with a much bigger role for biodiversity due to the impact of global warming. A new biodiversity policy is being added whereby companies with serious controversies over land use and biodiversity will now be excluded, as well as companies with activities that have a negative impact on biodiversity and that do not take sufficient measures to reduce their impact.
Keep evolving
The world of Responsible Investing is evolving rapidly. Not only are our clients’ expectations changing, the regulator has also published clarifications on the various legislative initiatives and the quality standard of the Towards Sustainability label has also been tightened. This is why KBC Asset Management screens its Responsible Investment methodology annually to comply with the most recent developments.
Responsible Investing stands or falls by its credibility. Therefore the sustainability policy and criteria are monitored by the Responsible Investing Advisory Board, which is fully independent of KBC. The body consists of leading academics from several universities, who are experts in fields like human rights, business ethics, biology and ecology. We give our clients a transparent view of their investments.
For example, a Responsible Investing dashboard was set up in the clients’ mobile application, where they can track the goals of their Responsible Investing funds. This report is accessible to every investor. We want to be the reference and stay one step ahead of the competition. KBC Asset Management will continue to move alongside the markets and the preferences of its clients to keep its services up to date. We will continue to work towards a sustainable and responsible future, that keeps everyone invested, all of the time.
The world is undergoing an unparalleled evolution, unlike any witnessed in human history. Never before have we witnessed such remarkable advancements in manufacturing, renewable energy, infrastructure development and artificial intelligence, among others. What sets this apart is not just the magnitude of dynamic progress, but also the global distribution of its impacts. This needs action that is both purposeful and that facilitates nation building. With this shift comes the necessity for businesses to accelerate their approach to sustainable, inclusive, and enduring growth for all stakeholders. The United Nations defines sustainable development as development which meets the needs of the present without compromising the ability of future generations to meet the same. By ensuring sustainable and inclusive growth, India aims to leapfrog to a developed economy.
Indian corporates must actively seek to ingrain sustainability and inclusive growth principles in their organisational culture. It is also equally crucial that businesses establish partnerships with entities that share similar dedication and enthusiasm for generating a positive impact on society. Further, instilling an innovation-centric mindset capable of going beyond conventional boundaries and devising ingenious approaches to accomplish overarching goals is paramount for a country like India. While each industry contributes in its own way, the natural resources sector which provides essential raw materials for various industries and holds a significant potential for sustainable development would play a critical role. From minerals used in renewable energy to metals essential for modern infrastructure, the natural resources sector underpins the foundation of sustainable and inclusive growth.
The role of natural resources
India’s ascent as an economic powerhouse is characterised by its dynamic population and demographic dividend. Central to the country’s economic surge lies the indispensable contribution of natural resources. With the advent of transition in the area of energy and industry, the demand for minerals and raw materials is poised to skyrocket, positioning sectors like mining as fundamental blocks of the India growth story.
India’s mining sector is experiencing healthy growth, driven by the nation’s pursuit of self-reliance and economic prosperity. Today, India is the second largest steel and aluminium producer, fourth largest iron ore and zinc producer and sixth largest bauxite producer in the world. Being a leading group in this sector, Vedanta, with its diverse portfolio encompassing zinc, lead, silver, iron ore, steel, copper, aluminium, nickel, and oil and gas, is uniquely equipped to meet the escalating demand for primary materials, both domestically and internationally. Vedanta’s strategic assets across the globe amplify its capabilities, enabling it to significantly contribute to ensuring resource sufficiency. Central to Vedanta’s vision is the role it plays in supporting India’s quest for self-reliance in minerals, metals, and energy. A vision that encompasses more than just financial growth – one that aspires to uplift communities, safeguard the environment, and cultivate a culture of broad-based prosperity – is essential for businesses aiming to contribute to the broader agenda of nation-building.
Aerial view of zinc smelting plant
Vedanta’s leadership as a natural resources conglomerate transcends mere scale, embodying a commitment to sustainability and responsible business practices. Vedanta’s zinc business holds around 75 percent market share in India’s primary zinc industry while its aluminium business has about 50 percent market share.
Vedanta is the largest private sector oil and gas in India, contributing nearly 25 percent of India’s oil production. As frontrunners in various segments of the natural resources industry, Vedanta’s operations are guided by a holistic value creation process that places equal emphasis on business, social, and environmental sustainability. Vedanta’s contribution to India’s economic success extends beyond its commercial pursuits and includes efforts to empower marginalised communities through its social impact programmes. By uplifting marginalised communities and enabling inclusive growth, Vedanta is contributing towards India’s economic progress. Moreover, Vedanta’s constant efforts are visible in adapting greener mining practices to ensure environmental sustainability.
Leading the charge
Through strategic investments in technology and innovation, Vedanta is spearheading the transition towards sustainable mining while prioritising inclusive and responsible practices. By aligning every business unit with the shared vision of ‘Transforming for Good,’ Vedanta has set the stage for integrated growth and long-term sustainability. For this, Vedanta has embraced a holistic approach towards growth with industry-leading ESG practices, ensuring that economic progress goes hand in hand with social development and environmental stewardship.
The commitment to excellence with the below mentioned nine ESG aims is leading the path for Vedanta to carve its niche in leadership:
Transforming communities Aim 1: Keeping community welfare at the core of business decisions
Aim 2: Empowering over 2.5 million families with enhanced skillsets
Aim 3: Uplifting over 100 million women and children through education, nutrition, healthcare and welfare Transforming the planet Aim 4: Net-carbon neutrality by 2050 or sooner
Aim 5: Achieving net water positivity by 2030
Aim 6: Innovations for a greener business model Transforming workplaces Aim 7: Prioritising health and safety of all employees
Aim 8: Promote gender parity, diversity and inclusivity
Aim 9: Adhere to global business standards of corporate governance
As India charts a course towards achieving net zero emissions by 2070, Vedanta has emerged as a key enabler, leveraging its diverse portfolio of metals and minerals to drive indigenous manufacturing and bolster supply chains. This contributes to India’s energy security and mineral independence. Vedanta has committed towards achieving net zero carbon by 2050 or sooner with a planned $5bn investment over the next decade and reducing absolute emissions by 25 percent by 2030 from the 2021 baseline. Over the past year, concrete measures have been undertaken in this direction to reduce GHG intensity, use renewable energy, and implement innovative technologies for minimising environmental impact. Vedanta has also invested in community development programmes to help build the resilience of communities and enhance its social license to operate.
Vedanta also places a strong emphasis on innovation and greener product portfolios. By driving innovation in products with lower carbon footprints and embracing renewable energy solutions, Vedanta is consistently aligning its business objectives with environmental imperatives. The company’s commitment to reducing its carbon footprint extends beyond operational efficiencies to encompass initiatives like renewable energy adoption and decarbonisation of vehicle fleets.
Transcending operational boundaries
Vedanta’s journey towards sustainable growth exemplifies the power of responsible corporate citizenship with its initiatives serving as a catalyst for positive changes at the community level and beyond. As the company continues to forge ahead, it remains poised to shape a future characterised by prosperity, equity, and sustainability.
By weaving sustainability into its core business processes and governance mechanisms, Vedanta has aligned with global best practices while driving value creation for its stakeholders. It has upheld accountability and transparency, setting a precedent for responsible corporate citizenship through transparent reporting and comprehensive sustainability frameworks.
Vedanta’s sustainability focus also transcends operational boundaries, empowering communities and supporting inclusive growth. Vedanta’s philanthropic initiatives positively impact over 50 million lives annually, focusing on childcare, nutrition, women’s empowerment, healthcare, skilling, sports and animal welfare.
Through programmes like Nand Ghar – an initiative for enhancing pre-primary learning, health and women’s empowerment – Vedanta is helping uplift millions by providing access to education, healthcare, and nutrition. In the last six years, Vedanta spent over Rs2,200 Crore on CSR. By focusing on the wellbeing of women and children and striving to combat hunger and malnutrition, Vedanta is consistently focused on social upliftment and inclusive growth.
The pivotal focus on inclusive growth permeates every facet of the organisation, shaping its internal processes, governance structures, and business administration mechanisms. Underpinning this vision is the commitment to upholding good governance practices, supported by rigorous policies and frameworks that drive accountability and transparency.
Driven by its focus on building a strong foundation, Vedanta’s resilience and adaptability helped the group navigate unprecedented geopolitical and operational challenges in recent years. Despite the unpredictable macroeconomic environment caused by global conflicts and supply chain disruptions, Vedanta achieved commendable operating performance while navigating external shocks and realigning supply chains.
As Vedanta charts its course for the future, the company remains committed to elevating its ESG journey. By setting a horizon for certain ESG plans at 2030, Vedanta aims to set broader targets and programmes with a greater impact. This includes plans to have 2.5GW of continuously operating renewable energy (RE RTC) capacity and completely decarbonising its fleet of light motor vehicles by 2030.
As India grapples with the intricacies of economic expansion and environmental preservation, Vedanta remains at the vanguard of driving sustainable transformation. Vedanta’s vision extends beyond mere profitability, underscored by its emphasis on shared value creation and stakeholder engagement. Championing diversity, supporting marginalised communities, and promoting equality are actions that not only enrich lives and contribute to the strengthening of societal fabric but also improve productivity and resilience of businesses.
By setting ambitious ESG targets and collaboration with stakeholders, Vedanta aims to unlock value while safeguarding the interests of all stakeholders. As the company embarks on its transformative journey, it remains committed to creating a sustainable and inclusive future for India and beyond.
Ingraining sustainability
In the case of Vedanta, its corporate strategy is devised to address and act upon the fundamental expectations of key stakeholders concerning critical issues such as climate change, human rights, occupational safety, environmental conservation, diversity, inclusion and governance. This strategy is underpinned by a three-pillar framework which serves as the driving force behind the company’s efforts to promote sustainability outcomes across our communities, workforce, and the environment. Leveraging its leadership position and innovative technologies, Vedanta is not only catalysing India’s economic resurgence but also shaping a future where economic prosperity is intrinsically linked with environmental stewardship.
In order to contribute in this direction, Vedanta continues to serve as a leading responsible business, driving sustainable development and prosperity for generations to come.
What is your analysis of Crédit Mutuel’s performance in 2023?
In 2023, the Crédit Mutuel group achieved a record performance, with net revenue of €4.6bn, which was an increase of 8.4 percent, demonstrating strong sales capacity and its operational efficiency as well as financial stability.
In a complex economic environment marked by persistent inflation and changing monetary policy, these results attest to the effectiveness of Crédit Mutuel’s diversified universal banking and insurance model and the relevance of its strategic choices in serving the collective interest.
We are allocating more than 90 percent of revenue to reserves for development in order to offer the best possible quality of service to our customers and members through innovative, useful and solidarity-based offers and, more generally, through actions that benefit society as a whole.
Our group relies on the efforts of its 84,600 employees and 20,000 elected members via its local networks to serve its 37.8 million individual, professional and corporate customers in France and Europe.
We can see that the crisis is accelerating transformations, in particular awareness of the environmental and climate emergency. How does the group integrate this challenge and step up efforts in its strategy?
In view of the issues of global warming, loss of biodiversity and damages caused by exposure to climate hazards, we are stepping up our eco-responsible initiatives and offerings to support our customers with their ecological and energy transition projects.
Strongly committed to the decarbonisation of the economy and the protection of biodiversity, the group continues to implement sectoral policies with the objective of contributing to carbon neutrality in accordance with the Paris Climate Agreement. This is reflected in particular in the publication of decarbonisation targets in the context of the group’s membership of the Net-Zero Banking Alliance (NZBA).
In addition to strong strategic ambitions, in 2023 the Crédit Mutuel group continued to integrate climate and environmental risks into its overall risk management and developed a methodology for assessing its customers’ geographic exposure to climate hazards.
The group is reducing its exposure to activities with high social and environmental impacts: by moving away from unconventional fossil fuels; by ceasing to finance coal-fired power plants and mining operations; by strengthening its climate commitments and sector policies in sectors with high carbon intensity; and by continuing its commitments in key sectors given its business model, such as the agricultural and wine-growing sectors, as well as in the agri-food and residential sectors.
How is your engagement in the regions concretely reflected?
The group continues to fully play its role in financing the economy by supporting the needs and projects of all its customers and members, particularly the most vulnerable, both in bancassurance and through its many other services. The purpose of a bank, particularly a cooperative bank such as Crédit Mutuel, is to stay as close as possible to its customers and give them support at every stage in their lives.
The mutualist model enables us to respond to the expectations of the current era
Our decentralised organisation facilitates short decision times, enabling us to be highly responsive to all our customers’ needs. This regional proximity enables us to make quick decisions based on our insight into local realities. This support for economic development in the regions is part of our approach as a financial partner over the long term. It includes support also through our private equity structures (more than €4.8bn in equity in 600 innovative or high-growth companies).
The quality of our customer relationships is also a priority – in 2024, the group has again been ranked number one by BearingPoint-Kantar for customer relations in the banking sector. The commitment of our employees and elected directors and investment in new technologies are the strengths of our group in addressing the challenges of today’s world. Within the Crédit Mutuel group, we build success day by day in each of our local co-operative banks and network branches, serving everyone.
More generally, how does the mutualist approach serve as a response to the challenges ahead?
The mutualist model enables us to respond to the expectations of the current era. Our values are based on proximity, with a regionally rooted organisation serving development in general and that of economic players, enabling us to provide the best possible service to our customers.
The solidity afforded by this model gives the group the means to act in support of the economy and also to engage in social and environmental initiatives. Because the group is a co-operative bank with no shareholders, it only has its customers to satisfy. This is a guarantee of its independence and freedom of action. It is also a differentiating factor and underpins the strength of its commitment.
Our aim is to remain profoundly mutualist, useful and supportive, at the service of members, customers and society. Our founding aims were mutualist and this approach remains central to everything we do. We want to remain efficient and supportive – always enhancing our performance so that we can also enhance our support.
As walls rise in the Arizona sun, a group of buildings are quickly coming together that will provide necessary infrastructure for our modern economy to operate. Usually unknown to outsiders, the four walls of the large nondescript buildings enclose some of the most valuable resources on the planet: data. Glendale will soon be home to one of QTS Data Centers’ largest campuses that support mission-critical technology applications for our customers. Thanks to our innovative QTS Freedom standard design, QTS’ data centres will use no water for cooling, saving hundreds of millions of gallons of water per year.
As part of the company’s stewardship of local resources, QTS continues to strive for strong sustainability measures that drive efficiencies and limit environmental impact. Where our locations call home is also home to our employees, customers, and data centre users. We are passionate about environmentally preserving our operational regions and doing our part to enhance those communities.
Globally, QTS has worked diligently to maintain power efficiency standards, replanted hundreds of thousands of trees, and supported the development of new solar projects via long-term power purchase agreements. In addition to our commitment to procure 100 percent of our electricity from carbon-free sources by 2025, QTS has made water conservation a key pillar of our sustainability strategy. Areas like Glendale and Phoenix, situated in the American desert landscape, are rightfully cautious with resources like water. Data centre equipment produces intense heat that requires cooling mechanisms that keep the IT infrastructure load from overheating. This is critical to systems our community relies on, such as emergency doctors accessing hospital records, e-911 centres transmitting life-saving information, or commuters using ride-share apps. To ensure systems like these are uninterrupted, data centres must keep customers’ IT load efficiently cooled. Traditional data centres often use millions of gallons of water each year to cool their systems. But it doesn’t have to be this way.
A water strategy
The QTS Freedom standard design, which was developed to sustainably manage resources while efficiently managing energy, water, and waste, is incorporated into all new QTS builds, including developments underway. Efficiency is core to this standardised building design, allowing QTS to pinpoint power and cooling to specific spaces to increase efficiency. These closed-loop systems do not consume water. Instead they use a low-pressure pumped refrigerant system that can use outside air to remove heat without using water. The system also employs an economisation mode when outdoor temperatures are below the return air temperature to further increase efficiency. In closed-loop systems like these, the system is initially ‘charged’ with water, refrigerant or both. The system will only need more water if maintenance requires a recharge.
In one Georgia-based data centre alone, by eliminating the use of water to cool Freedom data centres, QTS’ water-free cooling system saves more than 248 million gallons of water annually – the equivalent of water used in more than 2,200 US homes per year.
Philanthropy and partnerships
As part of the success-based giving programme, QTS has partnered with World Vision, a world leader in humanitarian efforts, to sponsor programmes that provide clean water to individuals and communities in need across the globe. Since the start of this partnership, QTS has provided over 37,000 individuals clean water through 13 global water points. QTS’ commitment to sustainable practices also strengthens its water-efficiency efforts. By committing to sourcing renewable energy, QTS strengthens its water-reduction strategy as wind and solar energy sources do not utilise water to produce electricity. QTS has signed long-term contracts for solar- and wind-generated energy in multiple states, sourcing and increasing the amount of its power from renewable energy sources.
Supporting communities
When choosing locations for new facilities, QTS engages in a comprehensive due diligence process and risk analysis. Access to renewable energy and water scarcity within an area are two major considerations. Many regions that offer solar- and wind-generated power are water stressed, with water demand exceeding supply. Unlike other data centres that need to pull water resources from these already strained areas to cool their facilities, the QTS Freedom design requires no water for cooling. This can save considerable amounts of water given the scale and magnitude of its facilities. The cooling systems QTS uses in water-free systems are also more energy efficient, using close to half the amount of power that water-based systems need.
These practices are transformative in communities like Glendale. As the campus comes together, water usage on this plot will be reduced by hundreds of millions of gallons versus the prior use. QTS is creating a water-positive scenario to support this water-stressed community. QTS is continuing to innovate and lead best practices in the data centre industry. Ongoing commitment to sustainability is paramount to building a strong relationship with communities while providing critical services for customers across the world.
Zenith Bank has always demonstrated the agility and resilience of a powerhouse financial institution with a special pedigree. Today, this tenacity and grit are being tested more than ever due to persistent macroeconomic headwinds in the home market. Despite these challenges, the bank is defying the odds and soaring to greater heights.
In 2022, Nigeria was Africa’s largest economy, boasting a gross domestic product (GDP) of $472.6bn. However, the devaluation of the Naira in 2023, prompted by the floating exchange rate policy, resulted in the country relinquishing its top spot. However, Nigeria has demonstrated astuteness in navigating through turbulent economic waters, intensifying efforts to reclaim its status as Africa’s leading economy.
The government is proactively addressing key issues such as inflation and the complexity of multiple exchange rates. Notably, these efforts have started to bear fruit, with the Naira appreciating significantly against the dollar – from NGN1,525 in early February to NGN1,136 in mid-April, marking a significant recovery.
This resurgence underscores a growing confidence among investors, buoyed by the Central Bank of Nigeria’s (CBN) adept handling of the foreign exchange market.
Recent policy changes, such as the elimination of fuel subsidies and the unification of exchange rates, complement these efforts. These measures have allowed market forces to play a more decisive role in determining the exchange rate, enhancing transparency and addressing previous market distortions. The appreciating value of the Naira is clear evidence of the positive impact of granting greater autonomy to market mechanisms within the foreign exchange sector.
Zenith Bank recognises the importance of SMEs and their significant untapped growth potential
Additionally, recognising the need for comprehensive economic recovery, the government is tackling deeply rooted challenges, particularly in revenue generation. President Bola Tinubu has established a panel to reform Nigeria’s tax laws and fiscal policies to enhance revenue generation while curbing excessive borrowing. The committee’s objective aligns with the administration’s Renewed Hope Agenda, striving to foster sustainable development and achieve a minimum tax-to-GDP ratio of 18 percent within the next three years without impeding investment or economic growth. This vision is pivotal in Nigeria’s journey towards building a trillion-dollar economy within the coming decade.
The recent recapitalisation programme of the banking sector by the CBN further complements these efforts, ensuring that the financial services sector is robust enough to support the nation’s economic ambitions. This initiative will strengthen the banking infrastructure, providing a solid foundation for Nigeria’s aspirations to become a trillion-dollar economy.
A challenging environment
Nigeria’s economic challenges in recent years have significantly impacted the banking sector. Rating agencies, including S&P Global, have raised concerns that high inflation and interest rate hikes could exert pressure on asset quality and operations. Furthermore, the depreciation of the Naira has necessitated an increase in gross loans, potentially elevating the risk of non-performing loans, especially for smaller banks.
Zenith Bank remains unshaken in its pursuit of growth
For Zenith Bank, the challenging macroeconomic environment has been a test of resilience. The bank has excelled, maintaining and strengthening its position as the most profitable bank in the Nigerian banking industry in 2023. This achievement is reflected in the bank’s 2023 financial results, which highlight Zenith Bank reaching new heights as Nigeria’s most profitable financial institution with triple-digit growth in profitability. This impressive performance came after the bank sustained its net interest margin at 7.3 percent.
Over the year, Zenith Bank achieved a 180 percent increase in pre-tax profits, reaching NGN796bn ($693m), up from NGN284.7bn ($248m) in 2022. This feat marks a record-breaking growth in profits, realised under challenging conditions. Importantly, it has solidified its leadership in Nigeria’s highly competitive banking sector, with a robust balance sheet that expanded by 66 percent to NGN20.4trn ($17.7bn).
Bucking the trend
The remarkable feat was achieved through precise implementation and execution of strategies that saw Zenith Bank post 112 percent growth in interest income and a 141 percent increase in non-interest income. During the year, interest income stood at NGN1.1trn ($957.7m) compared to NGN540bn ($470.2m) in 2022. Non-interest income, on the other hand, stood at NGN918.9bn ($800m) compared to NGN381bn ($331.7m) in the same period in 2022.
There is no doubt that Zenith Bank has thrived and achieved astronomic growth over a generation through bespoke financial products and services, superior customer service, digital transformation, innovation, and unparalleled investment in technology. The past months have proven the bank’s supremacy in strategy execution and its ability to navigate challenges and turn them into opportunities.
Two scenarios stand out. First is the bank’s exposure to the public sector. Given that Nigeria’s economy is heavily dependent on oil revenues, low crude oil production coupled with volatile crude prices in the international markets has led to a slump in earnings.
Nigeria has made tangible progress in driving financial inclusion
The impact has been a painful squeeze on state coffers. The public sector exposure, together with significant impairments from Ghana’s $13bn Eurobond restructuring, had a material negative impact on Zenith Bank’s bottom line. In 2022, the segment posted a loss of NGN11.8bn ($10.2m). Last year, however, it was the standout performer, posting an astounding 884 percent increase in pre-tax profit to NGN92.6bn ($80.5m).
Another highlight is the stellar performance and rapid growth of the retail market segment. Although individuals and households may have experienced reduced disposable income due to inflation, this has not shaken the confidence of customers in the Zenith brand. As part of its strategic objectives, Zenith Bank aims to become the leading retail bank in Nigeria. Last year, it made a significant leap, with retail customer numbers increasing to 36.4 million from 29.5 million in 2022. Retail deposits have also risen, now constituting 46 percent of total deposits compared to 44 percent in 2022, having increased by 77 percent to NGN7.04trn ($6bn) from NGN3.97trn ($3.3bn) in 2022.
Placing the retail segment at the centre of long-term growth, Zenith Bank prioritises customer engagement and value innovation. The bank understands that due to intense competition, attracting and retaining retail clients demands creative thinking. Part of Zenith Bank’s strategy includes developing customer value propositions unique to each customer sub-segment. For effective delivery, the bank has built an extensive network of over 500 branches and deployed an ever-expanding array of digital channels driven by cutting-edge technology.
Finance for all
Zenith Bank is also aware that it is imprudent to think of retail customers without considering the unbanked and underbanked. Nigeria has made tangible progress in driving financial inclusion. Nevertheless, the percentage of adults with formal financial services only stands at 65 percent, according to EFInA, a financial sector deepening organisation. Of this, only 52 percent have a bank account. This falls significantly below the CBN target of 95 percent. To integrate the 28.8 million Nigerians excluded from the formal banking system, Zenith Bank has deployed extensive agency banking services. Currently, the bank boasts over 94,000 agents spread across 36 states and 774 local government areas. This vast reach ensures that the bank has a touchpoint in every location.
Physical touchpoints characterised by human interactions remain a fundamental aspect of banking today and even into the future. However, digitalisation has brought about inevitable disruptions. Zenith Bank was the first to acknowledge the transformative power of digitalisation in the Nigerian market. This explains why technology remains one of the bank’s major pillars, alongside ‘people’ and ‘service.’
For Zenith Bank, investing in information and communication technology (ICT) infrastructure to create innovative products and solutions has been essential. Becoming a trailblazer in digital banking has been central to transforming customer experiences and building a solid brand. The bank leverages different channels, including Mobile App, Unstructured Supplementary Service Data (USSD), WhatsApp (ZIVA – Zenith Intelligent Virtual Assistant), internet banking, automated teller machines, and points of sale. Throughout its operations, the bank continually re-engineers its digital platforms to effectively meet the needs of its numerous customers in terms of ease of use, safety, and convenience, thereby making transactions more seamless.
Today, the bank is reaping the benefits of its ICT investments. Digital onboarding, robotics, and enhanced cybersecurity measures have played key roles in facilitating growth in new accounts from 1.2 million in 2018 to the current 36.4 million. Apart from facilitating increased customer acquisition and loyalty, the bank is respected as an industry leader in customer experience. Internally, processes are characterised by speed and efficiency. The bank’s uninterrupted operation during the Covid-19 lockdowns is a testament to its prevailing digital culture.
Driving digital
Embracing and embedding an unrivalled digital culture means that Zenith Bank is always ahead of its peers in terms of innovation. In an industry with about 30 banks, Zenith Bank has demonstrated a strong track record of versatility in launching new products to cater to an ever-evolving market. Z-Woman, a product specifically targeted at women-led businesses across all sectors, is a clear example. This unique loan product offers the most competitive interest rates in the market and is available to businesses that are majority-owned by women. Through this product, Zenith Bank has extended about NGN50bn ($43.5m) in loans to five million Z-Woman customers. Tabul is another innovative solution designed to transform the customer experience at restaurants with simplified ordering and payment processing.
Dr. Adaora Umeoji, Group Managing Director/CEO, Zenith Bank
While Zenith Bank is responsive to changing market needs and ready to innovate, it has not lost focus on two other key market segments – small and medium enterprises (SMEs) and corporates. SMEs, in particular, are critical. Data shows that in Nigeria, there are over 36.9 million SMEs, constituting approximately 97 percent of businesses and contributing 48 percent of the GDP. Despite their large numbers and importance to the economy, particularly in terms of job creation, SMEs have not received the desired attention. Studies show that approximately 80 percent of SMEs in Nigeria face significant challenges that hinder their survival and progress. Limited access to capital and poor business practices have been identified as key causes of mortality before reaching their fifth anniversary.
Zenith Bank recognises the importance of SMEs and their significant untapped growth potential. For this reason, the bank has been at the forefront of providing them with the necessary support. This includes bespoke offerings, access to loans, and sector-based training. A standout product specifically designed for the needs of SMEs is SME-Grow My Business.
Zenith Bank believes in shared growth with SMEs. The bank has built partnerships that enable it to provide low-interest rate loans to SMEs. These partnerships also help build capacity and deepen knowledge. A case in point is the bank’s partnership with Google, which helps expose SMEs to the digital world via free Google listings. It also helps improve their management capabilities through quarterly capacity-building training.
Restoring confidence
To restore full confidence in the economy, reforms are expedient. Policies are required to enhance forex inflows by diversifying and promoting non-oil exports. This should run concurrently with efforts to revitalise crude and refined oil production. More importantly, addressing systemic challenges and improving governance is imperative for fostering long-term stability and sustainable prosperity. By taking bold and decisive actions, Nigeria can navigate through turbulent economic times and pave the way for a brighter future.
As Nigeria’s leading bank, Zenith Bank aims to be the heartbeat of the country’s long-term sustainable development. By tradition, the bank has been a pioneer in sustainability since beginning its journey a decade and a half ago. Zenith Bank continues to show leadership in addressing society’s challenges in line with the United Nations Sustainable Development Goals (SDGs) and the Paris Agreement. In line with these global pacts, operations and investment decisions are anchored on environmental, social, and governance (ESG) values.
The bank has been a pioneer in sustainability since beginning its journey a decade and a half ago
Last year, about 96 percent of total credit transactions valued at over $22.6bn were screened and assessed for environmental and social risks. By the end of next year, the bank envisages covering up to 100 percent of its credit transactions. Apart from sustainable-linked lending, the bank is also proactive in delivering positive impacts in the communities where it operates. Total social investments that stood at NGN5.673bn ($4.9m) last year speak to this commitment. The amount represented an increase of 240 percent from the previous year.
For Zenith Bank, becoming an acclaimed, responsible corporate entity is closely intertwined with a strong governance culture. Accountability and ethical conduct are cardinal principles of the bank. Corporate governance also extends to fostering a gender-inclusive environment. The bank stands tall among the few that have achieved gender inclusivity in its workforce. The bank’s total active force stood at 10,014 as of December 2023, of which 5,628 (56.2 percent) were female, while 4,386 (43.8 percent) were male.
Failsafe finance
Strong governance is the hallmark of Zenith Bank, which is deeply rooted in all its operations. It sets the tone for risk management and building safe systems. Evidently, the Nigerian banking industry remains vulnerable to infrastructure deficit. Early this year, banking operations were among many that were impacted by a widespread broadband internet connectivity disruption caused by damage to an undersea submarine cable. Services on electronic and digital platforms were the worst hit.
However, this cut had little to no negative impact on Zenith Bank’s services. This was because the bank has invested in robust systems and established strategic partnerships with leading internet service providers who helped reroute traffic via alternative internet circuits. This ensured that services remained available even at the peak of the disruption.
Retrospectively, the cable cut was a red alert reinforcing the bank’s approach to investing in reliable and scalable IT infrastructure that can handle a high volume of transactions and withstand technological failures. A clear example is the ongoing IT overhaul programme dubbed ‘Project Tiger,’ designed to deepen the overall digital payments suite and offerings, creating multiple channels for digital service delivery.
Zenith Bank has made risk management the bedrock of its operations. A culture of risk awareness permeates the entire organisation, underpinned by impeccable leadership and strong governance structures. This has resulted in comprehensive risk management mechanisms. These include a risk appetite statement that serves as the cornerstone tool to align overall corporate strategy, capital allocation, and risk. Part of the tool’s watchlist includes the nature of the threat, controls/mitigants, residual impact, and early warning mechanisms for each risk. Ultimately, the bank deploys a hybrid and holistic approach to protect the safety of customers’ assets and the integrity of its systems.
As a responsible corporate citizen, Zenith Bank remains committed to improving the social, economic, and environmental well-being of its stakeholders. This commitment is demonstrated through an elaborate corporate social responsibility strategy focused predominantly on healthcare, education, skill development, and other initiatives with maximum positive impacts.
After the Covid-19 pandemic health emergency, the global balance has been deeply marked by the outbreak of conflicts in Ukraine and the Middle East and rising tensions between China and Taiwan. All this has made the overall scenario more precarious, opening a period of geopolitical instability and uncertainty. It has been referred to – several times – as a ‘polycrisis.’
Today, in order to survive global competition, radical change programmes must be implemented by adopting strategies that ensure, on the one hand, effective economies of scale to increase productivity and improve the economic performance and, on the other, a real positive impact on communities while at the same time fostering a structured energy transition.
We are experiencing a phase where significant phenomena influence our sector. In a similar scenario, knowing how to adapt quickly to change and to understand the new needs rapidly and effectively is fundamental in order to offer ‘added value’ to the customer. Here is an example (but we could make many others). We think of the accelerative effect that artificial intelligence has had and how it will continue to shake up many fields across the most varied sectors, obviously including the financial industry. This means changing production and distribution processes. This means disrupting business models that have worked so far but which risk becoming inefficient if they do not exploit new technologies, processing in real time huge amounts of data to generate useful insights to customise client needs, working deeply on people’s reskilling. It is certainly a complex scenario but at the same time intellectually very stimulating.
Within BNP Paribas, the ‘technology’ component is one of the three pillars of our business plan, together with ‘growth’ and ‘sustainability.’
And with reference to artificial intelligence, today we already have in use more than 700 use cases for applying artificial intelligence in the BNP Paribas group in various departments of the company. The main challenges in our industry are: mindset, people, skills and technology. We firmly believe that to make the difference it is necessary to invest in the continuous training and excellence of our bankers and our team of specialists. In addition to this training activity certified by the best Italian and foreign universities, it is necessary to invest in generational turnover through the inclusion of young collaborators alongside expert colleagues with greater skills.
At least four different generations of professionals operate in the private banking and wealth management industry
This allows new expertise and new skills to proliferate throughout the company, which is indispensable for easier conversations with the new generations (new generations that will also be our new customers in the very near future). The ability to observe and understand the evolving contexts within our industry is a necessary requirement to effectively manage the assets of our customers, especially in a complex and dynamic world that changes rapidly. The role of our bankers on the territory is crucial.
The bankers of BNL BNP Paribas Private Banking & Wealth Management need not only a deep understanding of the financial markets, but specific expertise on our entire range of investment services and solutions. They require above all a strong ability to listen to the needs, requirements and objectives of our customers so that they can develop a real strategic plan that integrates all the components, even the very complex, of the medium and long-term prospects of the company and of the family. This is an activity that requires skills and teamwork and this is why several specialists in various fields and geographies (including credit, real estate, wealth planning, legal and tax advice, asset management, real estate advisory, investment banking and trustee services advice) support our bankers.
We also worked to create specific meetings dedicated to understanding evolving contexts, to interpreting the main elements of changing geopolitical scenarios, to reading emerging trends and characteristics.
It is a series of meetings and debates on the territory that includes, in addition to the presence of our bankers and our clients, the participation of experts in the sector, university teachers and entrepreneurs. Their points of view and their experiences allow us to bring to the debate an effective reading of the main challenges brought about by the new context.
The distinctive elements of our model
More generally, the speed with which new behavioural and social dynamics take root, especially following the pandemic, and the rapid development of new technologies, especially those related to artificial intelligence, require an acceleration in the process of adapting the banking sector.
At BNL BNP Paribas, programmes to ensure this acceleration are structured as part of our Growth Technology Sustainability (GTS) business plan and have already made it possible to take important steps to transform the company, making it leaner, enabling faster decision-making capabilities, and allowing it to stay in step with the times. This activity certainly touches the entire area of technological infrastructure development, allowing for the digitisation of most products and services in order to simplify the customer journey of our clients. It also affects other aspects that aren’t just related to technology.
For example, we recently launched an important ‘social plan’ dedicated to generational turnover, targeting roughly 900 voluntary redundancies with incentives for over 750 hires. This plan therefore provides for a turnover rate in line with others in our industry, with roughly 85 percent of colleagues leaving us being replaced (for the network, the replacement rate will be 100 percent) and enriching the company with new skills and expertise needed to meet the new industry challenges.
The generational transition also concerns the professionals of Private Banking and Wealth Management and is one of the strategic pillars of our department, representing an important factor in our growth plan in Italy. Over the next 10 years this will become a major challenge in the country, since almost one out of every three bankers is over 50. Now, at least four different generations of professionals operate in the Private Banking and Wealth Management industry: from baby boomers to GenZ, through GenX and Millennials.
Our strength, the international reach and leadership position of BNP Paribas in Wealth Management in Europe are excellent drivers to attract the best professionals who work in this field and want to invest in the growth of their skills.
Nurturing talent
Moreover, to be recognised as a point of reference and a place at which to achieve career goals, it is necessary to continue dedicating great energy to create a stimulating and attractive working environment, able to offer a structured career path that guarantees respect for diversity and inclusion, where the work/life balance is a constituent element of a sense of belonging and pride, together with the values of our brand.
The main challenges in our industry are: mindset, people, skills and technology
If I had to summarise the essential elements that distinguish our team, I would certainly say the ability to listen to the needs of our customers, the specialisation of our bankers to build ‘tailor-made solutions’ able to handle even very complex needs, and a clear and shared vision on our development plan in private banking and wealth management in Italy. We surround ourselves with professionals who, coupled with ambition and entrepreneurship, have intellectual curiosity, are able to navigate new ideas and concepts in their field and who are open to new technologies.
The new generation of bankers must have a strong sensitivity to impact investing and sustainability-orientated investment solutions. We believe that our customers have the extraordinary power to have a positive impact on our planet and on communities and our ambition is to support them in their projects to make this happen.
We are part of an international group that provides an integrated and structured platform of transversal and vertical expertise. Globally, BNP Paribas’ Wealth Management combines excellence in wealth management with more than 6,700 professionals and €430bn of assets under management (data as of March 31, 2024).
Our ‘One Bank’ model provides our customers with cutting-edge solutions allowing the wealth management and corporate & investment banking teams to work synergistically to bring ‘the entire bank to the customer’ in a single moment. This mindset to work in a transversal and integrated way is part of the DNA of our group and is based on trust, collaboration and the sharing of knowhow and skills. The ultimate goal remains to bring our customers high value-added proposals, supporting them in all phases of the life cycle and ensuring a very deep level of customisation of financial solutions (including co-investment activities with us on exclusive deals).
The new generation of bankers must be able to move in this ecosystem using expertise, leadership and kindness.
Turkish Airlines’ remarkable journey began in 1933, marked by humble beginnings with five aircraft and fewer than 30 employees. Today, it stands as a global aviation powerhouse, flying to more countries than any other airline worldwide. With an average age of 9.3 years across its fleet of 400 aircraft by the end of 2023, we proudly operate one of the youngest fleets in the industry. Anchored by our flexible structure, dedicated workforce, Istanbul hub, modern fleet, and expansive network, Turkish Airlines continues to soar to new heights in the aviation industry.
2023 marked the 90-year anniversary of Turkish Airlines. As the national flag carrier, we have been growing at a rapid pace throughout, which is undoubtedly the result of successful sustainability management. Turkish Airlines announced its ‘Sustainability Vision’ back in 2009, and we further committed and highlighted our sustainability efforts with the motto ‘Tomorrow On-Board’ in order to ensure that sustainability management processes are managed with a common corporate understanding. ‘Tomorrow On-Board’ represents the path followed, the point reached, and future sustainability practices in light of our ‘Sustainability Vision.’
Commitment to climate action
Turkish Airlines’ sustainability efforts are guided by the United Nations Sustainable Development Goals (UN SDGs), ensuring a focus on environmental stewardship, social responsibility, and economic resilience. With our agility and sensitivity in an ever-evolving environment shaped by regulatory changes and emerging global and sectoral trends, the sustainability agenda and targets are constantly evaluated and developed to stay ahead of the curve.
Sustainability is not a one-time goal – it is a journey of continuous improvement, collaboration, and collective impact
At Turkish Airlines, sustainability is not a one-time goal – it is a journey of continuous improvement, collaboration, and collective impact. With Turkey’s ratification of the Paris Agreement and its commitment to net zero carbon emissions by 2053, we have reviewed our strategies, also in line with global requirements and stakeholders’ expectations. Demonstrating our support for the global fight against climate change, we have set our target to become a Carbon Neutral Airline by 2050, and we are determined in our pursuit of a more sustainable future for aviation. This long-term emission reduction target has taken its place as the cornerstone of Turkish Airlines’ growth strategy, involving a multifaceted approach that covers fleet modernisation, the continued use of sustainable aviation fuel, increasing collaborations on this issue, sourcing energy from renewable sources, and reducing and offsetting emissions.
Sustainable aviation practices
Turkish Airlines carries out its operations by adopting a comprehensive sustainability strategy aimed at reducing carbon emissions and minimising environmental impacts. Fuel efficiency studies focusing on reducing emissions are at the core of this strategy. We improve our fleet by investing in fuel-efficient aircraft, engine upgrades and utilising the latest technology. Since 2008, more than 100 operational optimisation projects and aircraft configuration projects have been successfully implemented to reduce the carbon footprint. In 2023 alone, these efforts saved 75,148 tons of fuel and prevented 236,751 tons of carbon emissions from being released into the atmosphere. The total fuel savings achieved since 2008 amount to 748,496 tons, with prevented carbon emissions reaching 2,357,764 tons.
Recognising the key role of sustainable aviation fuel (SAF) in reducing emissions, we have integrated SAF into our operations and carried out our first flight using aviation fuel obtained from sustainable sources in February 2022. Since then, use of SAF has been expanded to additional routes and frequencies.
In addition to using SAF, we are seeking collaborations to increase the production and use of SAF, which is currently produced in limited volumes globally. By signing the Global SAF Declaration, which signifies a joint commitment by stakeholders in the aviation, space, and fuel sectors to decarbonise aviation, we have reaffirmed our commitment to fighting climate change. In 2023, together with Boeing and Istanbul Technical University, we established Turkey’s first sustainable aviation platform and became a founding member of this initiative.
Moreover, we provide travellers with the opportunity to participate in the fight against climate change through its CO2mission Programme. This programme offers a platform where passengers can easily and practically offset their flight-related emissions. The projects, available in three different portfolios for passengers’ preferences, consist of globally certified, carbon credit-generating climate change combat and social development projects that serve nine separate SDGs. Within the scope of our CO2 mission, emissions resulting from all duty flights of employees are balanced by Turkish Airlines.
Beyond aircraft operations, we have introduced sustainable practices in passenger services, such as adopting digital boarding passes and providing digital reading materials to reduce paper consumption. These initiatives, coupled with the use of biodegradable packaging and eco-friendly amenities onboard, underscore our commitment to sustainability. Additionally, investments in renewable energy sources and collaborations with stakeholders highlight our holistic approach to sustainability. By harnessing the power of the sun, we aim to further reduce our carbon footprint and promote sustainable energy practices.
Turkish Airlines remains steadfast in its commitment to sustainable growth, innovation, and stakeholder value creation
In 2023, we participated in the Carbon Disclosure Project (CDP) Climate Change Programme, the world’s most respected reporting platform for climate change and environmental degradation. We achieved an ‘A-’ score in CDP evaluations, which is above the average of the air transportation industry and in the leadership band. We have been continuously increasing our score since joining the CDP. At the beginning of 2023, we became a supporting member of the Task Force on Climate-related Financial Disclosures (TCFD) and reinforced our support for the SDGs. Aware of the importance of TCFD recommendations in increasing transparency regarding climate-related risks and opportunities, we aim to publish our Climate Transition Plan in 2024.
Analysing the current situation in the industry, we participated again in the performance evaluations of national and international indices and sustainability rating agencies, meeting stakeholder expectations by providing a transparent communication network with relevant parties. We aim to increase performance by ensuring continued participation with these indices and rating agencies, which include: DJSI, FTSE4Good, MSCI, EcoVadis, Sustainalytics, TPI, and Borsa Istanbul Sustainability Index. The evaluations made by the world’s leading rating agencies and the scores obtained from all ESG performance evaluations of 2023, both on a company basis and on an industry average basis, increased compared to the scores in 2022. As a result of the evaluations made by Ecovadis, Turkish Airlines was deemed worthy of an award in the ‘Silver’ category in 2023.
Achieving competitive success
In navigating the complex interplay of market dynamics, technological advancements, and regulatory landscapes, Turkish Airlines remains steadfast in its commitment to sustainable growth, innovation, and stakeholder value creation. As we embark on this journey towards a more sustainable future, we do so with the conviction that our actions today will shape the aviation landscape of tomorrow, ensuring that Turkish Airlines remains a beacon of excellence, resilience, and foresight in the years to come.
Turkish Airlines has adeptly responded to recent market shifts, aiming to bolster its position as a leading global airline. Despite challenges like geopolitical tensions and fuel price hikes, we maintained a focus on our key values. By effectively managing cash and expenses, the airline navigated through turbulent times and emerged with robust financials, outperforming peers in the European network carrier segment.
Turkish Airlines’ wide destination network and operational flexibility have been instrumental in setting us apart from the competition. Swift adaptation to changing conditions has enabled us to maintain leadership in daily flight operations, while our air cargo brand, Turkish Cargo, has risen to become one of the top global air cargo carriers through strategic investments and expansions. Strategic investments in fuel-efficient aircraft and subsidiary companies are key to maintaining a competitive edge.
In 2024, we seek to solidify our position through operational and financial success despite pandemic-related challenges, laying the groundwork for future growth. With clear targets set for passenger revenues, fleet expansion, and international market reach, we are poised for accelerated expansion, supported by strategic investments in fuel-efficient aircraft and subsidiary companies. In an increasingly competitive landscape, we prioritise understanding customer demands, cost control, and rapid adaptation to market changes. With a clear vision outlined for the next decade, we planned out strategic goals focusing on passenger experience, digitalisation, and sustainability. Looking beyond 2033, we aim to double aircraft and passenger numbers, targeting revenues exceeding $50bn, while also demonstrating a commitment to social responsibility through various initiatives.
Leveraging our extensive flight network and modern fleet, we aim to emerge as a global airline group, delivering value to stakeholders and contributing to sustainable development goals. Our journey towards sustainable excellence exemplifies our commitment to environmental stewardship, innovation, and leadership in the aviation industry. Through strategic initiatives and partnerships, we are setting new standards for environmentally conscious aviation operations, aiming to shape a sustainable future for air travel.
The international expansion of Banco de Reservas became a reality with the opening of a representative office in Madrid in January 2023, which was consolidated with the installation of two more offices, located in New York and Miami, in the last four months of that year. With the implementation of this initiative, the financial institution placed itself in a strategic position to attract better investment and business opportunities to the Dominican Republic. With capital produced by Dominicans living abroad and their offspring, in addition to boosting the country’s international trade, the opening of these branches has contributed to the economic, social, and cultural development of its communities.
Highlighting the impact of the bank’s international expansion, these new representative offices have received a large number of requests for services from the Dominican diaspora in those cities. The task of the financial institution is to manage and expedite these requests for banking procedures that are finally completed in the Dominican Republic.
In Miami, for example, the office of the Junta Central Electoral Dominicana (Dominican Central Electoral Board) has reported an increase in the number of Dominicans requesting credentials and national identity documents. The increase is related to the interest in acquiring personal or corporate banking products or services with Banreservas. The origin of 60 percent of imports to the Dominican Republic comes from the US, especially from Florida, and particularly from Miami, where Banreservas’ representative office maintains the focus on businesses with responsible companies, promoting direct transactions through Banreservas.
An attractive portfolio
With these actions, Banreservas has positioned itself in other markets to offer a broad and attractive portfolio of international solutions for its clients, such as mortgage programmes for the acquisition of homes in their country. To date, these offices have served more than 17,000 customers with requests for information on products and services, data update procedures, among others. Likewise, more than 5,000 new clients have been enrolled, more than 7,000 savings accounts have been opened, and 307 mortgage loan applications have been processed for more than DOP1.4bn ($24.3m).
Innovations, both for internal improvements and value propositions to customers, originate from digital thinking
It is evident that the products and services are related to the bank’s goal of reaching out to Dominicans and satisfying their banking needs, regardless of where in the world they reside. In March 2024, Banreservas held its first real estate fair in New York (Washington Heights) and Massachusetts (Lawrence), which generated much interest from Dominicans residing in the US to acquire homes in the Dominican Republic, managing a value of more than DOP8.5bn ($146.6m), equivalent to some 1,800 properties. Some 4,000 people were in attendance at these events, of which 3,000 went to New York, and the rest to Lawrence.
In addition to the business derived from this internationalisation, Banreservas has launched two apps to facilitate the sending of remittances from Europe and the US, as well as the constant promotion of foreign investment, especially with the recent celebration of its first mortgage fair in the US.
Importance of remittances
Remittances have a great impact on the Dominican economy. It was for this reason that Banreservas launched its remittances app in Europe in January of this year, and two months later in the US. This allows hundreds of thousands of people to send remittances to their families and relatives in their country of origin.
At the end of the first quarter of this year, data showed an increase in the bank’s share of the domestic remittance market. Already in 2023, it exceeded 38.54 percent of participation among multiple banks and held 8.91 percent of the total market.
Between 2020 and the end of February 2024, more than 8.4 million remittance transactions were received through Banreservas and its extensive network of allies, representing $2.568bn.
These achievements can be attributed to the fact that Dominicans living abroad – based on the product of their work and sacrifice – contribute to the development and balance of the Dominican economy and the welfare of their families through their remittances.
Digitalisation strategy
Banreservas is immersed in achieving one of its main strategic focuses, which is its digital transformation, creating the basis for a transversal adoption in the organisation, and generating a revolution in the organisational culture. This is a process to manage the paradigm shifts required by this type of challenge.
The bank is focused on providing people – the central character of the success of this change – with the necessary tools to shape their mindset (design thinking, digital first). To achieve this, it implements new ways of working (agile methodologies) and creates collaborative spaces so that these new formats can be exercised and refined (innovation lab, immersive innovation programmes).
Undoubtedly this organisational change is accompanied by technological implementations that allow us to support, scale the digital transformation and increase our ability to adapt, such as: robotisation, big data, cloud, DevSecOps and artificial intelligence. The bank has invested great efforts in the definition of a robust architecture, and in the modernisation of the application park, to be able to adopt emerging technologies and provide work teams with an ecosystem that enables them to implement disruptive ideas in a short time.
We have teams dedicated to the digitalisation of internal processes
With this strategy, innovations, both for internal improvements and value propositions to customers, originate from digital thinking, with an interactive roadmap that enables recurring adjustments to achieve better results and add increased value. We have teams dedicated to the digitalisation of internal processes, focused on generating operational efficiencies and improving productivity.
All this dynamism requires work teams focused on expanding the offer of 100 percent digital products and services of the largest Dominican bank in assets, which results in the constant improvement of the user experience, in all non-face-to-face channels, such as: mobile app, web, chatbot and ATMs, among others. This combination of operational efficiency and customer value creation has allowed us to evolve from a process automation strategy to a strategic innovation model.
Boosting speed
Banreservas is interested in boosting the speed of digital transformation to continue impacting financial transactions. As part of that process, since August 2020, the bank has promoted digital development, seeking agile, secure, and user-friendly services that manage self-service, and of course, offer a memorable experience for customers.
This process involves concrete initiatives such as the implementation of:
Dual branches: They provide customers with a unique service experience, combining the best of face-to-face and digital, so they can conduct their banking transactions at the speed they need. Open in Santo Domingo (2021) and Punta Cana (2023).
Banreservas MIO electronic payment account: 100 percent digital account that is requested only with the customer’s ID card from a cell phone, and through which it is possible to make transactions through a mobile application, streamlining payment channels.
Banreservas virtual assistant, Alma: Digital customer service channel, to make service inquiries, complaints, and product requests in a self-assisted manner, through automated conversations via WhatsApp.
Digital token: Digital authentication mechanism, using a code generator to authenticate transactions easily and securely.
Banreservas digital account: Savings account in Dominican pesos that can be easily requested from the Banreservas app without the need to go to a commercial office, supporting banking penetration.
Pre-approved credit card by app: Customer-centric and digital service that generates credit card pre-approvals for customers through the Banreservas app.
Sponsored data: Banreservas is the only Dominican Bank that includes free data consumption, thus promoting financial inclusion and facilitating the insertion into the financial system of all Dominicans.
Internationalisation, the development of transformational projects aimed at digitalisation, and the support to the main Dominican productive sectors, keep the oldest bank in the country as the leader of multiple banking in the Dominican Republic. Banreservas remains the main support of the economy and of foreign investments currently generated for the Caribbean nation.
AI and ML have the potential to modernise and transform the fund management industry, enabling, among other things, the processing and analysis of vast amounts of stock data and counteracting human bias. UOBAM, a Singapore-headquartered company with around $23bn of assets under management, saw the potential in these techniques at a relatively early stage and has built up five years of experience in this area. The decision to go down this path and to invest in the people and systems needed to make the vision a reality was a bold one, but the strategy has started to reap rewards. Notably, two of the company’s flagship funds that use AI and ML tools more than doubled returns versus their respective benchmarks in 2023. World Finance spoke with fund manager Paul Ho, Head of Investment Technology at UOB Asset Management, about the company’s development and adoption of AI and ML, its experiences so far, and how the application of these tools might be extended in future.
UOBAM began exploring AI and ML in 2019, before many in the Asian asset management industry were doing so. What thought processes were driving this move?
UOBAM has for some years shown a commitment to technology-driven customer services and business initiatives. In 2019, for example, the firm started development work on UOBAM Invest for Corporates and UOBAM Invest for Individuals. These are highly innovative robo-advisory platforms designed to offer new and easier ways to invest digitally. The platforms were subsequently launched in 2020 and 2021, respectively. Around the same time, UOBAM watched with much interest when big data, AI and ML started to be discussed to supplement human analyses. Consequently, a project was initiated within the company to test whether such tools could be used to help generate above-benchmark portfolio returns in a reliable way. The tests proved positive, and as a result we started to use them formally within our asset management process in 2020.
What were the key challenges associated with adopting an AI model, for example, in recruiting the right people?
Innovation naturally means change, so the key challenge to adopting any form of innovation is the ability to institute a shared objective of future-readiness and a culture of experimentation across the entire organisation. At UOBAM, one way this was achieved was to implement the T-shaped team structure as recommended by the CFA Institute.
This structure is based on the understanding that investment teams and technology teams can find it difficult to work together, given their different skill sets. By establishing an Invest Tech team that comprised both functions, UOBAM has been able to align all stakeholders and bridge the gap between traditional and modern approaches to investment management.
And what were the main risks that you perceived?
The risk is of course that the AI model and AI-Augmentation process does not deliver the desired results. But part of experimentation is the acceptance of failure and uncertainties. And the key to overcoming such risks is patience and rigour. After going live with our framework, we waited for three years to establish a consistent track record before marketing our AI capabilities. During that time, we closely tracked our performance and made refinements along the way.
How do funds managed by UOBAM benefit from application of the AI-ML model?
UOBAM’s AI-ML model helps to enhance our Asia Equity portfolio returns in four key ways: coverage, predictability, neutrality and scalability. There are over 25,000 stocks listed in Asia Pacific, and it is impossible for a team of analysts, however diligent, to adequately research even a small percentage of them. UOBAM uses AI-ML tools to ingest billions of data points and analyse thousands of variables related to the Asia equities universe. In this way, patterns are detected that can help predict a stock’s return potential.
The model also helps to offer an alternative to preconceived strategies such as style, geographic or technical investing. By offering an unbiased perspective, UOBAM’s model helps to prevent unfamiliar market events from being disregarded or overlooked. Finally, UOBAM’s AI-ML model can be adapted to fulfil different investment tasks. The reliance on empirical data means that it is possible to improve not just stock selection using these techniques, but also asset allocation, hedging and risk management.
How do you successfully combine and balance the input of people and machines when creating an investment portfolio?
UOBAM’s AI-Augmentation framework is different from other asset managers; it combines human expertise and AI-generated insights in a disciplined and structured way. All stock picks generated by either the manager or the machine are scored according to their ability to outperform the benchmark. Risk constraints are included to ensure that portfolio risks are managed at all times. Portfolio performance is then closely tracked to enable models to be refined as part of a human-and-machine learning process.
Two of UOBAM’s flagship funds – the United Asia Fund and the United Greater China Fund – use AI and ML tools to enhance investment performance. How have these funds performed in recent years and to what extent can their performance be attributed to AI?
AI-Augmentation was introduced into the Asia Equities fund management process in the third quarter of 2020. Both the United Asia Fund and the United Greater China Fund slightly underperformed their respective benchmarks in 2022, but strongly outperformed in 2021, 2023 and in the current year to date.
In both cases, our investigations found that the weaker 2022 performance was due to inconsistencies between the model and manager input. These inconsistencies have since been corrected, leading to stellar performances in 2023 and so far in 2024. Both funds are currently in the top quartile versus peers on a year-to-date, one-year and three-year basis, and are rated five stars by Morningstar. The United Greater China Fund won the Refinitiv Lipper award for Best Fund over Three Years in the Equity Greater China category in 2023.
Risk constraints are included to ensure that portfolio risks are managed at all times
What measures have you put in place to ensure strong governance of your AI-Augmentation framework?
At UOBAM, the Data and Digitalisation team looks at implementing group-wide AI and Data Analytics (AIDA) procedures. These are to be adopted by all AIDA project teams in the firm, including those from the investment technology teams. These procedures prescribe the necessary steps, gates and related documentation across all stages of the machine learning model lifecycle that the project team needs to adopt. This includes having an independent peer review step during the model development stage. The governance of our AI-Augmentation framework is undertaken by a region-wide Investment Technology Committee. This committee oversees the launch, development and ongoing performance of all AI-Augmentation funds.
What external factors, such as an evolving regulatory environment, do you need to be aware of when employing AI-ML tools?
As we operate in the regulated financial industry and embed AI in our products and processes, we need to be aware of developments in this fast-evolving technology and related tools. We closely monitor updates from our regulator, the Monetary Authority of Singapore, and adhere to its Fairness, Ethics, Accountability and Transparency (FEAT) principles in the responsible use of AIDA.
What potential do you see for extending the AI-Augmentation framework into other areas of investment management going forward?
We have started to apply the framework to asset allocation decision-making. The United Singapore Dynamic Income Fund (USDIF), launched late last year, uses AI techniques to allocate across multiple Singapore asset classes including real estate, fixed income and equities. Similar techniques can eventually help with regional and sector-based allocation decisions. AI-Augmentation is also being tested for applicability in our Asia Fixed Income portfolios.
UOBAM has been working with Google on advanced hedging models. What have you achieved from this collaboration to date?
Last year, we collaborated with Google on a proof of concept to investigate how more advanced algorithms could be used to improve hedging decisions. The results were encouraging, and we are planning further collaborations with Google and other technology firms to continue to build out UOBAM’s AI-Augmentation capabilities. Our AI journey is really still in its early days.
In the realm of business and politics, one promise currently trumps all – namely the ‘net zero goal.’ This ambition is as well-meaning as it is promising, but it’s becoming acutely evident that the majority of those in leadership positions – across both governments and the commercial sector – lack the know-how needed to implement measures that will make a real difference, such as meeting this all-important milestone.
A general consensus of perhaps justified cynicism currently suggests that some players hide behind the fanfare of announcing lofty goals as a smokescreen for lack of action. And, despite grabbing the attention of the world’s media at the announcement stage, there is often very little by way of tangible plans or strategies to deliver what they have just trumpeted.
As the CEO of DevvStream, a Canada-based technology-led ESG company, I have personally discussed the issue with UN representatives, and it’s clear that the UN’s sustainable development goals (SDGs) are nowhere close to being met. So what specific challenges must be tackled to change course, steering more companies and governments towards a greener future – and what is needed to enlighten company leadership teams and governments?
First of all, we all need to establish where the problem lies. Secondly, we need to harness the tools already given to us by nature, alongside the tools that we can invent ourselves through technology. It is also important to be realistic about human nature: we can’t depend on altruistic and charitable behaviour to drive change. Rather, we need to make this issue economically viable and even profitable. And this is why carefully targeted carbon credits are so important. To give an example, we have developed nature-based projects in developing nations to prevent rainforests from being destroyed by oil and mining developers. This is achieved by showing local tribes that they are able to generate more revenue by keeping the trees – and the ecosystems that depend upon them – alive through carbon credits, rather than simply allowing irreplaceable swathes of pristine nature to be obliterated for the sake of, say, swanky furniture.
The technologies needed for us to fight global climate change already exist
As we all know, knowledge is power, and this very much applies in this context – companies and private individuals need to educate themselves so as to take informed decisions tailored to their specific needs and circumstances. This will hopefully contribute to a few myths being busted – such as the belief that nature-based solutions are at the centre of the net zero pursuit. While these types of initiatives – like the one I just referred to regarding the protection of forests – are vital, they won’t contribute anywhere near enough to anyone’s net zero target. A study conducted by American University School of International Service established that nature-based solutions will only contribute up to 20 percent of the reductions necessary to meet the world’s climate change goals. The other 80 percent needs to come from technology – and that’s why we at DevvStream put so much focus on technological solutions.
Technology’s vital role
The benefits of technology are undeniable and plentiful. Perhaps most importantly, technological solutions are much more scalable than nature-based alternatives. For example, we have a wastewater treatment solution that reduces the energy consumption over current methods by up to 83 percent. For a small plant, this equates to over 1GWh of electricity savings per year.
You will find wastewater treatment plants in just about every city in the world; so even if a small portion went about switching to this technology, the impact would be significant. Our building efficiency programme packs an equally powerful punch, encouraging reduced energy consumption through activities such as better HVAC systems or LED lighting; and as for the huge source of emissions that is transportation, our carbon credits help promote and pay for electrifying cars and buses, for instance.
Another technology solution benefit is the speed with which it brings about said impact, particularly in comparison to most nature-based solutions. Take reforestation, for instance – it can take a decade for trees to reach maturity and start creating an impact. In contrast, their technological counterparts can be implemented within months – if not weeks – delivering immediate results.
To continue the comparative count, many nature-based solutions merely keep us at the status quo in terms of environmental impact. You might argue this can’t be a bad thing, and while it’s important not to make matters worse, we still need to reduce our emissions further – and this is where technology comes in. The main source of emissions comes from technology – including infrastructure, transportation, and fossil fuel energy – and it only makes sense to target this very source. On a positive note, we believe that the technologies needed for us to fight global climate change already exist. We just need to accelerate their adoption and make them economically viable – and carbon credits actively help achieve this.
The benefits of carbon credits
I sometimes get asked the question: are the type of carbon credit projects we develop designed with any particular end-user in mind? I would say they have universal appeal, though the credit structure does vary slightly from case to case. As we all know, global warming is a massive problem, with the main culprit being greenhouse gas emissions such as carbon dioxide. To address this, the United Nations and countries throughout the globe have created emissions reduction goals and have signed agreements to meet them. When an organisation or country takes steps to eliminate, avoid or sequester carbon from the air, they will receive one carbon credit for every metric tonne. Meanwhile, companies and countries responsible for excessive emissions will need to buy one carbon credit for every tonne they’re exceeding – either according to a regulatory threshold or a voluntary goal. These goals are by no means small – it is estimated that we will need to reduce our annual CO2 emissions by 23 billion tonnes by 2030, and roughly half of this will be driven by carbon credits. This is why the carbon credit market is already massive and continuing to grow. The market was estimated to be worth $1.16trn in 2023 and is predicted to grow to $2.68trn by 2028.
We need to make this issue economically viable and even profitable
At DevvStream, we approach carbon credit investment in a way that adheres to the principles I have highlighted above – we develop programmes that generate environmental assets such as carbon credits with a focus on technology. We use carbon credits to generate streams of revenue for other companies, organisations or even cities and states. In other words, if a company has developed an eco-friendly technology or has set in motion an activity that helps reduce energy consumption or greenhouse gas emissions, we come in and provide a full turnkey service where we generate carbon credits, turning them into revenue at no additional cost. The additional stream of revenue makes their technology more viable. In turn, we get paid via a portion of the credits we generate. So there is no risk on our clients’ part and it is a win-win for all parties.
The carbon credit future
As for the future prospects of this sector and our role within it, it will no doubt continue to grow as more companies and countries will be making net zero goals, thereby needing to invest in more carbon credits. At the same time, there will be a higher demand for ‘high quality’ credits that offer transparency around the carbon impact. We will be seeing increasing demand for precision in the measurement of this impact, along with pressure to disclose further details around the environmental benefits and so on. The process of registering, validating, issuing and certifying credits will also need to be improved, with heightened efficiency. It can currently take up to 36 months to complete these processes for some projects.
By relying on our expertise and menu of technologies – blockchain and AI included – we will help address and simplify these issues. It has been an honour and is also a testament to our achievements in this sector that groups such as the United Nations consider DevvStream a leading expert in the carbon credit space. I was recently invited to the UN’s African headquarters in Nairobi to speak at the UN Environment Programme Science Policy Business Forum. My speech centred on how to tackle some of the problems associated with the carbon credit market today. In addition, we have provided guidance to multiple governments and their compliance programmes. I like to think that we don’t just participate in the carbon market – we are helping to shape it and make it better.
Technology, data and talent are the most important production factors for providing enormous momentum especially, for the development and innovation of financial business. With a small local market, Macao’s banking industry is facing intense and homogeneous competition, and it is hard to benefit from economies of scale. In order to mitigate this, ICBC (Macau) fully utilised its fintech advantage under the auspices of the ICBC Group, and achieved an innovation-driven and digitalised transformation.
A tech-leading strategy
We established the fintech transformation as a corporate strategy, to help deepen the integration of technology, data and financial business, setting up the financial technology and digital development committee to promote the application of new technology and ideas, and to build an innovative, leading and environmentally friendly brand image. We also assembled adaptive teams consisting of members from IT, business and product departments to facilitate the implementation of fintech to banking business, and evaluated the outcomes through a practical, retrospective and participative method.
Through the application of technology including big data and AI, we upgraded our risk management
Riding the wave of fintech development and Macao’s smart city strategy, we aimed to accelerate fintech innovation and iteration by expediting a digital reform on customer service and business channels, and especially on our mobile banking service. We also strived to promote innovation and optimisation of financial business, working processes and internal management. As a field test of the group’s overseas business, we took the lead to build a best customer service bank, and fostered our competitive advantage through the application of fintech.
Under this tech-leading strategy, we continuously enhanced our service ability and succeeded in winning customers. Our e-banking service accounts for over 80 percent of the whole business, and the online channel played an important role in attracting and maintaining customers. As a result, we continued to stay ahead of our peers in financial products and services.
Digitalised operations
With a view to deepening our innovative technology-driven capabilities and upholding the philosophy of technology self-reliance, we focused on developing technology in support of business development, and upgraded the ECOS technology ecosystem to provide powerful engines for business development. To transform our operation and develop a tech-driven and innovation-orientated mode, we utilised data and technology, and this proved to be the impetus to construct platforms and user scenarios, advance products and services, build a user ecosystem, and integrate our online and offline business layouts.
From there, we continued to promote the optimisation of outlets and expanded our customer service channels. Focusing on customers and driven by data, the bank improved the layout of a digital operation system, and rapidly created a new model of full-journey services for customers. As the first bank in Macao to build a smart bank network, and provide services for cross-border e-commerce, intelligent card-issuing and cross-border mortgage data connection, we have become a fintech leader in Macao’s banking industry. We have also reformed the overall systematic layout of retail outlets, and promoted the upgrading of Macao’s financial service towards a higher level aimed at convenience and efficiency for our customers.
With this in mind, we created a ubiquitous collaborative online and offline service channel system, advanced the integration of mobile banking into the marketing services of outlets, and stepped up integrated online and offline operations. Through the versatile application of different financial technologies, we enhanced customer experience in acquisitions, remittance, wealth management and online bill payments, and covered one-third of Macao residents using our e-payment service. We also took the lead to launch the ‘Greater Bay Area Transit QR code,’ allowing people to ride buses in Guangdong, Hong Kong and Macao with one code, and therefore formed a competitive advantage as the leading bank in Macao’s payment market.
We have continued to enrich financial products by accelerating the construction of the corporate digital finance service platform and building new avenues of the digital operation. As part of the group’s global layout, we fully utilised our advantage of online corporate banking services to develop cross-border and cross-currency fund pool products, and constructed a global cash management system covering 104 countries/regions and 61 currencies, with an annual settlement amount of more than MOP1trn ($124bn). We are also the first bank in Macao to hold a fintech competition for university students, aiming to cultivate more financial and technological talents for the region.
Securing innovation
We improved our cyber-security capabilities by pooling efforts in asset management, testing and assessment of our systems, cyber-security protection and improving data security. We have followed a systematic approach in enhancing our comprehensive cyber-security protection capability. Further, through the application of technology including big data and AI, we upgraded our risk management with a comprehensive system that covers risk monitoring, early warning and intervention, with automatic interception of suspicious transactions. We also introduced the latest technology in identity authentication, data processing and made our offices paperless to enhance work efficiency and cut down on waste.
Digitalisation serves as the critical momentum of future development in the banking industry. It is also the key for ICBC (Macau) to foster innovation and stride ahead in the market. Therefore, we will stay committed to seizing future opportunities for digital reform, and continue to come up with bold strategies and groundbreaking ideas for future development.
We regard the digital culture as an important part of our corporate culture
Our mission remains clear. We aim to build a ‘digitalised ICBC,’ one that will adhere to improving the capacity to serve our users with comprehensive digital operations, remote service and intelligent risk control. In addition to this, we will continue to digitalise our service platform, operation mechanism and risk control system, with the aim of upgrading customer service, empowering our workforce and enhancing work efficiency and effectiveness. We regard the digital culture as an important part of our corporate culture, and we aim to continue promoting staff training for digital reform, nurturing the talented professionals in our industry. We want to provide staff training for the entire front-to-back office by inviting in experts and visiting professional institutions, in order to cultivate a ‘digital thinking mode’ within the organisation, and in doing so, securing the reputation of being a tech leader in all respects.
The final tenet of our mission is to deepen our application of fintech. We will strive to set up new working processes for online and offline operation, build a new service model for information sharing, integrate clear steps in our workflow, and effectively combine resources to provide timely responses to customer demands.
We have also been paying attention to the breakthrough of generative AI, and will continue to explore the application of large language models (LLM) in marketing, risk prevention and management. Looking to the future, we will stay committed to building a flourishing digital ecosystem combining unparalleled financial services with the real economy, to further promote the upgrading of traditional industries and the development of emerging industries.
Decarbonisation remains at the forefront of the air transport sector, pivotal for both its development and survival. Sustainable finance plays a key role in aligning the industry’s strategies with environmental and social responsibilities. Aeroporti di Roma (ADR) is championing sustainability initiatives, setting ambitious goals for higher levels of environmental responsibility. The company is leveraging cutting-edge financial instruments like sustainability-linked bonds to drive its decarbonisation targets and advance innovative solutions for low-emission aviation.
Sustainable finance at ADR
ADR’s commitment to environmental and social responsibility is reflected in its innovative financial approaches, including the issuance of sustainability-linked bonds, which connect the cost of debt to its environmental performance, incentivising the company to achieve its decarbonisation goals. ADR was the first airport operator in the world to issue a sustainability-linked bond in 2021. Unlike a green bond, which is used to finance specific sustainable projects (and which ADR used in 2020), the interest rates paid to investors are linked to the company’s sustainability goals.
For example, in July 2023, ADR issued another 10-year bond (€400m, 4.875 percent coupon) tied to its targets for cutting Scope 1 and 2 emissions to net-zero by 2030 through initiatives such as new photovoltaic plants, electrifying its vehicle fleet, and using biofuels. For Scope 3, the goal is a 30 percent reduction by 2030 (from 2019) in CO2 emissions per passenger transiting through the airport.
Up until April 2024, ADR’s financing structure is composed of 65 percent sustainability-linked financing instruments of different natures, spanning from a green bond, two sustainability-linked bonds and a sustainability-linked revolving credit line. All financing instruments initiated since November 2020 have been structured in ‘green’ or ‘sustainability-linked’ formats. The goal is to continue on this path.
Furthermore, ADR has established itself as a leader in sustainable finance and plays a pivotal role in the World Economic Forum’s (WEF) ‘Airports of Tomorrow’ initiative. As a corporate champion in this initiative, ADR, together with its parent company Mundys, is leading the finance pillar to advance low-carbon aviation. This initiative, co-led by the WEF and Airports Council International (ACI), aims to address the energy, infrastructure, and financing needs of the aviation industry as it transitions to net-zero carbon emissions by 2050.
The EU taxonomy
ADR’s sustainability performance is also reflected in its alignment with the European taxonomy. ADR welcomes the introduction of the EU taxonomy, a science-based classification system to identify economic activities on the basis of their contribution to environmental sustainability objectives. By channelling private investment into the transition to a climate-neutral, climate-resilient, resource-efficient and fair economy, this system sits at the core of the EU’s world-leading sustainable finance agenda, with the additional goal of avoiding greenwashing practices.
Aeroporti di Roma has established itself as a leader in sustainable finance
ADR has always actively participated in institutional dialogue with the EU Commission and its technical bodies to promote and develop the EU taxonomy and its applicability to transport infrastructure, in order to facilitate its enabling role to the net zero 2050 transition. ADR also collaborated intensively with ACI Europe, in shaping guidelines for the airport sector to apply the EU taxonomy.
In 2023, with 75 percent of its revenues, 81 percent of its investments, and 65 percent of its operating expenses aligned with the EU taxonomy, ADR stood out among its peers for its adherence to this scheme. The EU taxonomy serves as a beacon for ADR’s sustainability strategy, guiding its references and best practices, and influencing its role in financial markets. Such KPIs were possible for a variety of reasons, all linked to ADR’s sustainability efforts. Some examples are:
The energy efficiency of our buildings and terminal. Apart from being certified to the highest standards in sustainability, such as LEED and BREEAM certifications, the terminal of Rome Fiumicino sits among the top 15 percent of the most energy-efficient buildings in Italy.
The provisions of electrical power and preconditioned air to airplanes. Thanks to this equipment, which is present in almost all parking stands in Rome Fiumicino, airplanes can avoid using their APUs, avoiding harmful emissions.
The installation of electrical charging points for vehicles. In fact, ADR has a plan to install more than 5,000 recharging points throughout its airports.
EU taxonomy is not only a ‘reporting tool,’ but it is also a way to drive change inside an organisation. Taxonomy has been and will be more and more helpful in driving sustainable change in ADR, especially regarding actions to foster climate change mitigation and adaptation. In this regard, to tackle climate change risks and opportunities, Aeroporti di Roma has developed a sophisticated ‘climate change risk analysis’ aligned with international standards and methodologies, such as ICAO guidelines and ISO 14091.
Aeroporti di Roma integrates this comprehensive analysis into its enterprise risk model (ERM), enabling it to manage climate risks with a long-term perspective. This approach includes advanced climate modelling, resilience assessment, and strategic adaptation planning, aligned with the European taxonomy for sustainable investments.
The pursuit of sustainable finance in the aviation sector is crucial for building a green future. ADR, through its pioneering initiatives and alignment with international sustainability standards, demonstrates how airports can lead in environmental and social responsibility. ADR’s innovative use of sustainability-linked bonds and alignment with the European taxonomy showcase its commitment to decarbonisation and sustainable development, setting a benchmark for the industry.
We take immense pride and joy that our commitment to advancing mobile trading technology and our continuous efforts to deliver superior services to our clients has earned Just2Trade the 2024 ‘Best Mobile Trading Platform’ and the ‘Most Trusted Crypto Broker’ awards from World Finance. These prestigious recognitions celebrate the very best in mobile trading and excellence in delivering cryptocurrency brokerage services, and are an acknowledgement of Just2Trade’s commitment to our clients.
Since our launch in 2016, Just2Trade has seen uninterrupted growth, establishing itself as one of the leading European online discount brokers, offering its services to clients in over 80 countries. The Just2Trade brand is owned and operated by Lime Trading (CY) Ltd. We operate under the oversight of the European Securities and Markets Authority (ESMA) and are authorised and regulated by the Cyprus Securities and Exchange Commission (CySEC) under licence number 281/15. Cryptocurrency trading services are provided by our affiliate broker J2TX Ltd, which is registered as Crypto Asset Services Provider (CASP) with CySEC under registration number 006/22 and which also operates under the Just2Trade brand.
Today, mobile trading apps have become an integral part of the trading ecosystem. They continue to evolve, incorporating new features, improving user experiences, and offering advanced tools to meet the demands of modern traders. Just2Trade offers clients mobile apps that provide real-time market data, advanced charting tools, and the ability to execute trades directly from their mobile devices. The availability of these features has empowered traders to stay connected to the market and take advantage of trading opportunities on the go.
A wealth of options
Just2Trade allows clients to trade a wide range of asset classes, including forex, precious metals, stocks, indices, energies, futures, options, bonds and cryptocurrencies through a range of powerful mobile trading platforms. These include the well-known MetaTrader 4 and MetaTrader 5 platforms, the CQG Trading Platform (often used for futures and options trading), ROX Premium, Sterling Trader Pro and Lightspeed Trader.
Mobile trading apps have become an integral part of the trading ecosystem
MetaTrader 4 is designed for trading operations and technical analysis in real-time across forex, CFD and futures markets. It is known for its extensive charting tools and support for algorithmic trading. MetaTrader 4 is offered with Just2Trade’s Standard, Forex ECN, and Forex ECN Pro accounts and can be used as a desktop, mobile or web app.
MetaTrader 5 is a multi-asset trading platform supporting stocks, futures, forex and CFDs. It offers single-window trading, advanced charting tools, and a depth of market feature. MetaTrader 5 is offered with Just2Trade’s MT5 Global account and can be used as a desktop, mobile or web app.
CQG offers access to over 40 global exchanges, providing market data and order routing for futures, options, and their combinations. CQG has been in operation for over 35 years. While the basic desktop CQG platform is free, there are charges for upgraded features and data packages. Just2Trade requires a $3,000 account minimum for trading with this platform. ROX Premium provides access to major US stock and options exchanges (NYSE, NASDAQ, CBOE) for market data and order routing. It also offers connectivity to key exchanges in Canada, Mexico, and Europe. Note that ROX Premium has monthly data fees.
Sterling Trader Pro is a professional-grade trading platform designed for active traders. It offers high-speed execution, customisable interfaces, and a wide range of order routing options (including DMA, dark pools, and market makers) and it is common among proprietary trading firms. Lightspeed Trader is designed for professional traders who prioritise real-time market data, low latency execution, and advanced order types.
Trade anywhere
Mobile trading platforms have revolutionised the way people invest and trade in the financial markets. The rise of mobile trading platforms has been driven by the growing demand for easy access to the markets, and the need for investors to stay connected to their portfolios at all times. With advancements in mobile technology and the rapid expansion of high-speed internet, mobile trading platforms have evolved to offer robust features and seamless user experiences. This, coupled with the development of more powerful mobile devices, has allowed for enhanced functionality and improved user interfaces. With mobile trading platforms, investors can easily access their portfolios and track their investments from anywhere, at any time. This allows investors to stay connected to their investments and make informed decisions on the go.
Just2Trade’s mobile trading platforms offer real-time access to market data, price quotes and financial news, allowing traders to stay informed about market movements, prices and make informed trading decisions promptly. Additionally, they are complemented with advanced trading tools and analysis features such as live charts, technical indicators that can help investors identify trends, support and resistance levels, and customisable watchlists that allow investors to analyse market trends and patterns to make better informed decisions.
Our trading platforms are designed to be user-friendly, easy to navigate and enable seamless trade execution, allowing traders to execute trades instantly with a few taps on their screens, ensuring that traders can capitalise on favourable market conditions promptly and avoid missing out on lucrative opportunities.
As all serious traders understand, the existence of robust security measures is critical to build trust and enable unrestricted trading. Our mobile trading platforms implement encryption techniques and secure protocols to ensure secure data transmission. Additionally, traders can take advantage of features like two-factor authentication and biometric authentication available on mobile devices to enhance the security of their trading accounts. Traders choose Just2Trade because we take security seriously and we have a strong track record of protecting user data.
Future finance
We believe that emerging technologies like artificial intelligence (AI) and blockchain are also shaping the future of mobile trading. Our mobile trading apps are increasingly integrating AI-powered analytics and algorithmic trading features. As technology evolves, we believe that the key trends that shape the future of mobile trading are AI-powered tools and algorithms that can analyse vast amounts of data, identify patterns, and generate trade signals and recommendations.
Integrating AI into mobile trading platforms will provide traders with advanced analytics and decision-making capabilities, potentially enhancing trading performance and allowing traders to gain a competitive edge. Finding a solid crypto broker is key for anyone looking to join or keep up their current involvement in cryptocurrency investments. By trading cryptocurrencies through Just2Trade, clients are stepping into a secure zone where their investments have extra protection because we follow strict rules set by European financial authorities.
Mobile trading platforms have evolved to offer robust features and seamless user experiences
Just2Trade allows its clients to get creative with their investments, by offering exciting options like derivative products such as options, futures and contracts for difference tied directly to cryptocurrencies. Additionally, we also offer margin trading with leverage. With these tools at hand from our powerful mobile trading platforms, traders can bet on future price changes without needing to own any actual cryptocurrency themselves – it is all about predicting and strategising. We should emphasise here that Just2Trade, as a regulated broker, has to meet key requirements such as executing trades efficiently, setting fair prices based on market rates and providing liquidity, which means there is always enough volume for transactions to happen smoothly.
When it comes down to safety, which is extremely important in trading digital currencies, we offer secure wallet solutions for the assets bought through our platforms, ensuring peace of mind while dealing with virtual currencies. Our mobile trading platforms are not just secure but also user-friendly, ensuring even those new to digital currencies can engage with ease.
Lastly, when choosing a crypto broker, good customer support and user experience are key factors traders should consider. They should feel confident that if they have any issues or questions, then help is available anytime, since the crypto market never sleeps. The support team should answer quickly because timing can be everything in trading. It is also crucial that they are knowledgeable about both the platform and the wider market conditions to show they can genuinely assist you.
As we embrace this mobile-driven future, it is clear that the way we approach mobile trading and cryptocurrency trading will continue to evolve, reshaping the financial world in profound ways. Mobile trading apps have ushered in a new era for online trading, making it more accessible, convenient, and flexible than ever before. While the future of mobile trading platforms promises even more innovation and integration of technology, traders should remain cautious and informed as they navigate this dynamic landscape. Whether a casual trader or a dedicated professional, mobile trading apps have the potential to enhance your trading experience and open up new opportunities.
The year 2023 will be remembered as a period of great transformation for Sri Lanka as the nation embarked on the arduous journey of rebuilding from the ground up following its worst-ever economic crisis in 2022. Well-timed macro prudential measures implemented by the authorities, including the normalisation of monetary policy and the relaxation of import restrictions, saw the resurgence of all major economic sectors in the latter part of the year. Other key indicators, such as the progressive easing of inflationary conditions, strengthening foreign reserves and stability of the exchange rate in 2023, also provided further assurances regarding the improving health of the Sri Lankan economy.
Skillfully manoeuvring to the cyclical shifts in the broader economic landscape, the local banking sector remained at the forefront of the country’s economic expansion. However, having been subjected to prolonged economic shocks in recent years, it became increasingly clear that the banking sector was strained to the limit and unable to withstand further pressures.
Against this backdrop, the foresight exhibited by the government, the regulator and the International Monetary Fund in shielding the banking sector during the Domestic Debt Optimisation (DDO) programme is indeed commendable. Excluding the banking sector from the domestic debt restructure has helped to preserve the capital adequacy of banks, and been instrumental in empowering the sector to drive credit expansion in order to fuel post-crisis rejuvenation.
Drawing from past experiences, Sampath Bank opted for a cautious approach to credit expansion, with lending activities undertaken mainly on high-priority and systemically important sectors outlined in the national development agenda. Significant accomplishments in this regard include the funding of a 15 MW wind power project and the involvement in a syndication to finance Sri Lanka’s largest ground-mounted solar project to date – a 100 MW endeavour slated to begin in the first quarter of 2026.
Targeted campaign
Considering that the SME segment remains the backbone of the Sri Lankan economy and its resurgence is vital for sustained GDP growth, a targeted campaign was initiated to cautiously support SMEs operating in the tourism and export-orientated manufacturing sectors via the concessionary credit lines issued by the Central Bank, the Ministry of Industries as well as the special Asian Development Bank (ADB) credit line. To complement these efforts, the bank unveiled ‘Sampath Export Partners,’ a dedicated unit to assist export-orientated SMEs and start-ups with export-related documentation as well as to enable them to access market information and business networking opportunities. Meanwhile, recognising the lack of financial maturity within the SME sector, specialised advisory services were further enhanced with the bank’s Credit Nursing Unit (CNU), entrusted with the responsibility of instilling greater financial discipline among SME customers.
Sampath Bank’s trade facilitation services were significantly expanded in 2023
At the same time, responding proactively to the country’s need to boost trade, Sampath Bank’s trade facilitation services were significantly expanded in 2023, while ties with global partner networks were further strengthened to aid in Sri Lanka’s push to rebuild global trade links that were compromised during 2022.
Sampath Bank further reinforced its digital superiority in 2023, with the launch of several industry firsts, among them the groundbreaking new interface to enable remote accounts opening via QR for the first time in Sri Lanka. Another major development that proves Sampath Bank’s desire to leverage technology to benefit the nation and its people was the historic partnership with UNICEF – Sri Lanka, wherein Sampath Bank was appointed as the ‘Facilitating Bank’ for the distribution of funds to mothers from low-income families and caretakers with young children facing challenges in accessing proper nutrition and healthcare services amid the prevailing economic crisis in Sri Lanka.
Flagship initiative
The bank continued to demonstrate its concern for the underserved community through its flagship community initiative – the ‘Wewata Jeewayak’ tank restoration programme. The year 2023, which marked the 23rd year of operation for the Wewata Jeewayak programme saw the bank deepening its investment with a total of five new projects being undertaken – the highest number in a single year. Hand in hand with these efforts, the bank’s long-standing oceanic ecosystem restoration campaign – ‘A Breath to the Ocean’ – was further expanded to focus specifically on turtle conservation and coral restoration.
In 2023, Sampath Bank garnered several prestigious awards, solidifying its position as a leader in the banking sector. Internationally, it was recognised as the ‘Best Bank in Sri Lanka’ at the Euromoney Awards for the fifth time, and at the Asiamoney Best Bank Awards, it secured honours for ‘Best Bank for CSR, Sri Lanka’ and ‘Best Bank for ESG, Sri Lanka.’ Domestically, Sampath Bank was lauded as the ‘Most Loved Banking Brand’ and ranked in the top 10 ‘Most Loved Brands’ at the LMD’s Brand Annual Awards 2023.
In 2023, Sampath Bank became a signatory to the United Nations Global Compact
The bank’s prowess in banking technology was acknowledged at the LankaPay Technnovation Awards, where it received a Gold Award for Financial Institution of the Year for the ‘Best Digital Payment Strategy’ and several Silver and Bronze accolades for its digital payment strategies and customer convenience initiatives. At the Infosys Finacle Innovation Awards, Sampath Bank shone, winning Platinum for innovative solutions like the ‘Tourist Fuel Pass,’ ‘Export Repatriation Process’ and ‘Touchless Cash Withdrawal,’ and Gold for its ‘Moratorium Process.’ These awards underscore Sampath Bank’s commitment to excellence and innovation across various banking domains, both nationally and internationally.
In 2023, Sampath Bank became a signatory to the United Nations Global Compact (UNGC), thereby formalising its commitment to support the UNGC’s 10 universally accepted principles in areas such as governance, human rights, labour, environment, and anti-corruption, by undertaking to integrate them into the bank’s policies and practices, and in doing so contributing towards the UNGC vision to promote responsible business conduct and address pressing global challenges.
Structures strengthened
Meanwhile, faced with the risk of employee attrition in 2023 as the economic crisis-induced pressures gave rise to skilled migration out of the country, Sampath Bank moved swiftly to retain key personnel. Remuneration structures were further strengthened and the succession-planning programme revamped to focus on targeted talent development for middle management and executive grades, supported by extensive training and knowledge-sharing workshops to address persistent skill gaps. Coaching and mentoring initiatives were further intensified, enabling identified high performers to be offered promotions and job rotation assignments to inspire them to advance their career journeys within the bank.
Despite internal and external challenges, Sampath Bank delivered a strong financial performance for FY 2023, recording a total operating income of Rs91bn ($281m) for the year. A key achievement in the current financial year was the 68 percent reduction in impairment charges attributed to the combined impact of improving economic conditions as well as the buildup of additional provision coverage. This was the result of prudent provisioning strategies adopted in 2022 to account for risk elevated exposures within the bank’s loan and advances portfolio.
Buoyed by the substantial reduction in collective impairment charges, Sampath Bank’s net operating income shot up to Rs70.8bn ($219m) in the year under review, substantially higher than the Rs48.2bn ($132m) recorded in the previous financial year. And despite inflation-induced high operating costs, the bank’s profit before taxes (PBT) expanded by 98 percent year-on-year. Sampath Bank’s balance sheet position further strengthened in FY 2023, marked by 16.4 percent improvement in the asset base. The bank closed the current financial year recording strong improvements across all capital ratios, while improved profitability during the current financial year helped to bolster the bank’s total equity to Rs148bn ($456m) as of December 31, 2023.
Through the commitment to prioritise the wellbeing of stakeholders, while consistently delivering strong financial results, Sampath Bank has yet again proven its unending commitment to support Sri Lanka and its people in their path to economic empowerment.
“In a world with plenty of good solutions, what makes you truly stand out? What makes your technology great? This was the question we asked when we entered the B2B market,” says Evgen Belousov, CEO at GR8 Tech, an iGaming platform provider that offers products and services to operators in the industry – from an all-encompassing sportsbook and casino platform to various other standalone products.
“Our answer was to offer tailored solutions that cater to industry players’ personalised needs,” he says. “We provide everything needed to launch and run a successful iGaming business, positioning ourselves as a lifetime partner for our clients. We support their successful development and scaling up, with flexible technology that can adjust to the operator’s needs as they grow.”
Sportsbook success
At the core of GR8 Tech’s products is its GR8 Sportsbook – a long-standing and well-known platform with a stellar reputation, designed to provide operators with the chance to tailor their offerings to local audiences.
“One of our strengths lies in offering a strong selection of regional favourites, such as cricket, kabaddi, American football, basketball, hockey, volleyball, and others,” says Belousov. “Depending on where they are located, operators can offer exactly what their local audiences like, gathering more engagement and support from them.”
“The platform can also manage heavy user loads with real-time anti-fraud processing, balancing the need for attractive player odds with profitability for operators,” Belousov continues. “Its modular nature means operators can flexibly customise their offering as business requirements change.”
Changing perceptions
The success of the platform to date has seen the company recognised with several accolades – including Best Online Sportsbook Provider 2024 at the SiGMA Eurasia Awards – and it isn’t just benefitting GR8 Tech’s clients and their users; it is also helping to change perceptions around the profitability of sportsbooks more generally, according to Belousov.
“One of the interesting challenges we have seen has come from the idea that sportsbooks aren’t that lucrative,” he says. “Typically, sportsbooks are seen more as an engagement tool, while operators rely more on casinos to make money. We have tried to change this stereotype with a high-performance sportsbook platform that is designed to bring tangible financial results for its operators within their first 12 months,” he says.
“Transforming the industry’s conventional view of sportsbooks isn’t a trivial thing, but we are confident in our ability to deliver and change the norm.”
Addressing the challenges
Shifting perceptions around sportsbook platforms isn’t the only challenge the company is taking on. Belousov says the fast-paced, forever-changing nature of the wider iGaming market can be one of the biggest hurdles for platform providers in the industry, but that the company has been able to “navigate the environment and enjoy the ride” through its expertise.
“The global iGaming industry is incredibly dynamic and constantly changing, so the main thing is keeping up with the pace,” he says. “Providers need to factor in emerging technologies, updates in regulations, the evolving preferences of end users, and shifting priorities of the operators, to name just a few of the considerations.”
We believe that open data sharing is fundamental to the advancement of the industry
He believes another key issue lies around the availability of data. “The limited willingness among providers to share data is a critical challenge,” he explains. “This restraint limits the ability of operators to make informed decisions and stifles the industry’s collective capacity to innovate and enhance player experiences,” he says. “As we progress into 2024 and beyond, this will become increasingly pronounced, as operators demand more transparency and data access to drive their strategic initiatives.”
To help tackle the data issue, GR8 Tech aims to “lead by example,” providing data to its clients to help them enhance their offerings. “We believe that open data sharing is fundamental to the advancement of the industry,” says Belousov. “This approach not only benefits our clients but also catalyses broader industry growth by fostering a culture of transparency and co-operation.”
Finding opportunities
Beyond data sharing, another challenge lies around regulation, according to Belousov. “Keeping up with the many jurisdictions around the world and ensuring products are flexible enough to adapt to various regulatory requirements can be tricky,” he says.
But the company knows how to turn a challenge into an opportunity. “We see these challenges as a positive,” he continues. “While it means there are additional considerations when developing new products and improving existing ones, it also pushes us to explore new things, be more creative, and ultimately design more robust solutions.”
That nimble approach appears to be working. With a goal to become the “go-to provider for iGaming operators,” GR8 Tech has lofty ambitions – but if its rapid growth over the past year is anything to go by, the company looks set for a promising future.
