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Finding a funding family

Posted on January 3, 2024 by itsupport

Netflix. Apple. Amazon. How many everyday investors have wondered what the next big thing will be, followed by a thought that says ‘if I’d picked one of those stellar companies to invest in back when they were tiny, I’d be sitting on a gold mine.’ Plenty of companies come and go without ever making the headlines, but still, it’s fun to imagine investing in a start-up that later goes global. Crowdfunding was an early fintech trend that aimed to open up some of this investment potential to regular people, not just so-called angel investors, and over the last 10 to 15 years, there have been almost as many crowdfunding platforms as there are products and businesses to fill them (see Fig 1). Peer-to-peer lending also emerged during this period, as a model that doesn’t have stock-market exposure, but which still offers the potential of some returns to investors while giving SMEs access to finance they need to grow, cutting out the idea of needing angel or institutional investment and ideally expediting growth for start-ups.

For those who are interested in investing in start-up businesses but don’t have the clout of angel investors, these platforms might seem to provide an opportunity to invest or loan money in exchange for a market-beating rate of return. For ordinary savers, current interest rates via traditional banks are not difficult to beat, but the risk is still much higher and so whether this is a viable – let alone sensible – investment strategy when compared to, say, broad-based index trackers, may not be as certain. After the massive business disruption from Covid, successive stock market crashes, and a difficult environment for small and medium enterprises, how does crowdfunding or P2P lending and investment look and feel now? To individual customers and investors, and the people looking to put their product or service on a platform, does it stand up to a broader, objective business analysis?

For retail (individual) investors, there are myriad platforms that enable you to pick a company you like the look of and pledge some money towards it. That said, investment diversification is the wise choice in order to protect yourself from putting all your eggs in one basket, so one immediate difficulty with traditional crowdfunding is that unless you are going to diversify across hundreds of investments with small amounts, you likely won’t see a return. With small companies or kickstarters, people tend to invest because they might like the idea of the business, but realistically the likelihood of any such company becoming the next big thing is slim. Consider venture capital firms that invest in early stage businesses but do so through a fund – in this way they make hundreds of investments to spread the risk, and hope that one of them will pay off the entirety of the fund.

Sowing the seeds of potential
The good news is that it is still possible to invest money in a range of start-ups in exchange for equity, through a diversified fund. The platform Seedrs was launched in 2012 and at the time was the only crowdfunding platform to be authorised by the UK’s Financial Conduct Authority. In 2017 it had its own unicorn success story with the digital challenger bank Revolut raising £4m via Seedrs.

Lending platforms emerged several years ago to connect small businesses to small lenders with the aim of growth for both. The platforms are part of the burgeoning fintech industry, providing the technology, the platforms, the connections, and the marketing to enable their lending model.

The 36H group was founded from the first five such platforms to be approved by the UK’s Financial Conduct Authority, meaning they are themselves regulated and one of their aims was in turn to campaign for more regulation in the emerging sector. Coming together they became a voice for the fledgling industry and engaged directly with government around regulation and strengthened the voice of the industry within the fintech and financial sectors themselves.

During the pandemic, the UK government rushed to create a financial support structure for businesses that were impacted by successive lockdowns at home and abroad. The Coronavirus Business Interruption Loan Scheme, and later bounce back loans, were created to address this need. The 36H group argued on behalf of its industry that fintech lenders were approved more slowly than the traditional bigger banks in being granted the ability to facilitate these supports, but eventually approval was given.

With P2P lending known to some as the wild west of the financial industry, regulation was no doubt needed, but tighter legislation, combined with the global shake-up to business and industries provided by the pandemic, means not many of the original 36H group are still standing in quite the same way.

Funding Circle
One of the ‘Big Three’ lending platforms, Funding Circle was founded in 2010 and offered retail investment for the following 10 years, but stopped in 2023 after already having enacted a two-year pause on this service during the pandemic. The platform underwent a process to return investors’ money as their loans matured but the reality of this didn’t go down well with all investors, who were made to wait for their money to be paid back piecemeal before it could be transferred to another platform and thus protect its ISA status.

Press releases from the time advised that Funding Circle was focused on government-backed schemes during the pandemic, and indeed they were the first such platform to access and be involved with the government’s various bounce back loans and small business supports from that time. Eventually the decision was made not to return to using retail investors to fund their business clients at all, and the P2P arm of the businesses was permanently closed.

RateSetter
Another of the Big Three P2P lending platforms was RateSetter, which ran almost exclusively on its retail investment model and was a pioneer in this field. A press release from 2019 hailed the incoming tighter regulations in the P2P sector that year, claiming these would “raise standards in risk management, governance, disclosure, marketing and wind-down planning – decisively addressing any sense that P2P is lightly regulated.”

Rhydian Lewis, RateSetter CEO, said: “We will look back on this as a watershed moment for our industry – the moment that peer-to peer investing came of age as an asset class, competing against other mainstream investment options and the banks as an attractive way to put money to work.” But ironically, RateSetter essentially became one of the big boy banks they originally sought to take on. The aim of the new regulations was to reduce the P2P lending sector’s ‘wild west’ reputation, but in 2020, RateSetter announced its takeover by Metro Bank and advised that they too would stop crowdfunding loans, with all money for future loans coming from their new parent company.

Zopa
Closing out the original Big Three, Zopa was in fact the first ever P2P lending platform in the UK but it, too, succumbed to the twin pressures of increased regulation and what the CEO Jaidev Janardana cited as negative investor sentiment towards P2P which made continuation of the retail investment arm of the business impossible. Zopa became a bank itself in 2018, but during the pandemic the firm decided that costs were too high to give satisfactory returns to retail investors and meet their obligations to borrowers. The difference is that Zopa, being a bank, bought back the investments of approximately 60,000 RI customers at face value, so anyone with an ISA through them didn’t have to wait for loans to mature or any other wind down before they could take their ISA elsewhere.

Lending Works
In 2021, another consumer lending platform, Lending Works, closed its P2P structure after eight years in the sector. Founded in 2014 and backed by angel investors, the platform was developed to provide personal loans. Fast forward to 2023 and the company is now known as Fluro, and backed by institutional funding lines. Today, not only does it offer personal loans backed by fintech and data to offer the now-standard features of decisions in minutes, pre-approval, and flexible payback schemes, it also has an industry offering of lending-as-a-service, powering UK businesses and household names like Direct Line and GoCompare.

Diversification and moving away from crowdfunding its loans has enabled Lending Works to ride out the storm of Covid and develop new and exciting offerings in the fintech sector. However, it too decided to pay back its P2P loans using a gradual runoff model until all its lenders were repaid.

CrowdProperty
Another firm founded in 2014 was CrowdProperty, and it’s still thriving today, having stuck to its original model and come out the other side of the pandemic. It was originally founded to tackle two problems: that of SME property businesses struggling to access the finance they needed, and that of investors being offered inferior rates for years since the financial crash of 2008. But the platform undoubtedly also benefited from the trend towards, not away from, property that took place in the pandemic.

While other sectors such as leisure, travel, and lifestyle businesses took a hammering, housing prices shot up and demand way outstripped supply. The firm states that one of its aims is to tackle the housing shortfall in the UK, and even with millions of pounds invested via CrowdProperty and elsewhere, the housing crisis shows no signs of easing and so demand will surely soar for some time yet.

Weathering the Covid storm
Four out of the five biggest lending platforms have now scaled back what they are doing or removed their retail investment offering altogether. The coronavirus pandemic can be blamed for many thousands of businesses going under, and it’s ironic in a way that some of the platforms ended up turning into the big banking models that they were originally founded to challenge.

There are two upsides for SMEs: not only do they have more choice in the fintech sector and options other than traditional institutional lending, but with that new size and power comes lending clout and greater stability for their businesses. But the platforms have largely turned away from retail investors.

Looking back to 2020, one of the first things that 36H group did was to win approval to be involved in the government-backed loan scheme for small business Covid recovery. On the surface this achievement sounds wonderful and as though it would be well within the scope of what these platforms were intended to do; namely, help SMEs. But perhaps it turned out that the other aspect of Covid, combined with the relative ease of institutional lending by comparison, was enough to force the platforms to rethink their crowdfunding model.

Most online brokers now have funds for unicorn businesses and start-ups

Indeed, who could forget the overall stock market crash that happened in early 2020, reflecting how investors the world over became more hesitant; no doubt retail investors also had doubts about putting more money into crowdfunding, and many more financially secure people were instead turning to more traditional savings, or even splurges.

This meant the P2P platforms suddenly experienced less interest, and income, from their retail investors and so to fulfil their commitment to SMEs, they had to fund loans through more traditional institutional means.
As for the retail investors themselves, many of them will have moved on to other investment vehicles. CrowdProperty, however, is still going strong. Maybe it’s because it is a little more niche, offering investment only within the property sector, rather than for all SMEs or individuals.

Certainly through coronavirus, its sector was lucky to be boosted rather than stymied. But that is not the only factor at play within the much wider and more complex environment of property and finance in the UK, and – lack of – traditional access to either. By sticking within its niche market, CrowdProperty’s magic formula seems to be that it essentially enables anybody with a few hundred pounds spare to be a property investor. It empowers someone who is interested in property as an investment vehicle to access this and gain comparatively stable, but not guaranteed, returns. It doesn’t offer exposure to the open stock market, and it removes the hassle and expense of taking on a buy-to-let property or other significant financial and energetic burden.

Lending platforms emerged several years ago to connect small businesses to small lenders

Property as an investment class is still incredibly attractive in the UK and abroad, and a quick look at the media flags up many reasons for this, from good old supply and demand to new and exciting property stars on social media influencing ever younger generations.

CrowdProperty allows ordinary people to invest across an entire property portfolio without buying anything directly, and crucially, allowing wide diversification within the ISA wrapper. There is the option to invest large amounts of money into any one project, but equally it has an auto invest function that acts as a protector to over-exposure and diversifies your money across every project that gets approved, if you so wish. Over the past years the platform has also offered rates of return significantly higher than banks and building societies, even now that these traditional institutions have started increasing their own interest rates post-Covid. No wonder this remains an attractive option for many.

Investing in property on the open stock market is of course also an option, and there are index tracker funds dedicated solely to real estate investment trusts (REITs) and the property sector at large across markets worldwide. Indeed, within the UK ISA or the tax-free wrapper in other countries – such as the Roth in the US – you can access funds that are purely or largely focused on property, from development of housing estates to the construction materials used to build them. But it’s not just residential property. Many REITs cover any element of property you can think of; some specialise in storage facilities, some in logistics, others in specific markets like healthcare, real estate or office buildings.

So, someone who wants exposure to property as an asset class has good options for diversification that do carry risk. This is a different approach because you are still investing on the open market, and the usual warning applies – that you can get back less than you put in. CrowdProperty also carries risk, and every page of its website carries the warning to not invest unless you understand this, but the risk is slightly different as it is limited to borrowers who may default on their obligations.

The platform has a rigorous due diligence process in place and several non-negotiable backups to protect RI lenders against this risk, including ‘first charge security,’ which essentially gives CrowdProperty the same rights as a mortgage lender to take back a property if a borrower defaults on their repayments for any reason. The platform seems to have cracked the code by keeping things simple, getting regulated, mitigating the risks, and marketing themselves as a niche investment vehicle for one thing only. It, too, began as a fintech start-up, and continues to raise funding through traditional and non-traditional means. Where did CrowdProperty turn to when it wanted to fundraise in order to expand its businesses in the first half of 2023? Seedrs.

Where the smart money is
Turning back to the possibility of picking the next unicorn through a P2P platform, bear in mind the argument that businesses that choose the crowdfunding route sometimes do so either because they are not confident in getting backing from large investors, or, worse, they have tried and failed to do so. This may be the case with boutique or local businesses that are product-based and don’t have a clearly mapped exit strategy for those who want to put their money in, grow the company, and take it out again. In the US, local bars and hospitality businesses are increasingly trying the crowdfunding model to get their business off the ground in exchange for beer tokens, merchandise, or another type of reward, but not a share in the business itself. This increases engagement but does not represent a true investment. It’s therefore important to understand the difference between the small likelihood of identifying a start-up business with lots of growth potential through a crowdfunding platform and approaching P2P as an investment strategy forming part of a wider diversified portfolio.

Those who want to invest in small and emerging businesses can still do so, but ‘safer’ vehicles exist to do this. Most online brokers now have funds for unicorn businesses and start-ups that make the grade, and it’s possible to invest in these. The old advice stands though, of placing the lion’s share of your investment money into broad based index trackers of stable markets like the FTSE 100, and if you want to invest in something rare like unicorn businesses, to max this out at maybe one percent of your overall investment capital to minimise risk.

With small companies or kickstarters, people tend to invest because they might like the idea of the business

Despite being more accessible than ever before, most crowdfunding in individual start-ups might still be better aimed at sophisticated investors who know how to value a business, understanding the risks and that they might lose the money they invest. We have all heard horror stories of people putting their life savings into things like crypto and whatever new thing we are told is guaranteed to go stratospheric, but although it’s exciting to imagine this, slow and steady still wins the day for average retail investors looking to maximise their savings or pensions. It’s natural to look back and wish you’d invested in companies like Uber or Tesla when they were in their infancy, but for every unicorn success story, there are hundreds more that die a death before getting anywhere near that stage. Better to be realistic, and if you’re going to invest in start-up businesses, ensure you diversify your portfolio and understand the investment.

The original premise of both crowdfunding and P2P lending was to make these opportunities available for a new generation of money-savvy investors who had the means to invest, but not the enormous wealth to tolerate the risks. This premise has arguably succeeded, but education and execution remain key.

How Gen Z is navigating the world of wealth

Posted on January 2, 2024December 20, 2023 by itsupport

More than 50 percent of the world’s population is under the age of 30. But raging global inflation means most of Gen Z, born in the late 1990s to late 2010s, can barely afford to pay rent and food bills. However, Gen Z is starting to harness its increasing buying muscle (see Fig 1) and the way they view their financial choices is different to previous generations. So, who are Gen Z listening to and trusting?

Dr Michael Harrison is a senior lecturer in economics and finance at the Royal Docks School of Business and Law at the University of East London. His expertise spans microeconomics and econometrics. He warns that Gen Z have never known a ‘normal’ financial sector in their entire adult life – so far. “They have seen consistently low real interest rates and consider that to be normal.” However, thanks to a new era of brutal inflation, among other pressures such as the cost of living, the real rate of return on any asset or investment has been negative.

How rational is it for any 20-something to walk into a bank and ask about savings products, let alone more opaque, investment-grade products like pensions? It’s not, says Harrison; Gen Z have had little incentive to explore. In other words, the shop front is in need of a refit, at least as far as bricks and mortar operations go. The asset management industry has often looked out of reach: over-complex, cryptic and reliant on knowledge well outside any educational curriculum. “I think it’s a shop front that many Gen Z will never go into. Even a savings product, much simpler than a pension, is not attractive.”

Quite serious and very different
But Gen Z are digital natives, at ease in a ‘post truth’ world where social media and relevant content is king and the conversation super-public. They have access to information – tons of it – about savings products and the financial industry if they want to look. Do they? Advertising executive Ian Baer has worked with many brands and works closely with companies who want deeper relationships with Gen Z. The collapse of financial institutions since the 2008 financial crash left the field open to new entrants, he says; monolithic institutions are much less trusted now.

The vehicle for engagement of this group is smarter financial education

“Gen Z are sort of running a parallel path,” says Baer. “They are very much living in the moment. They don’t know when life is going to get disrupted. For those who are older, the pandemic is a singular moment or period. Things were never quite the same before or after. But for Gen Z they’ve had three years of it taking up their adolescence and early adulthood. They don’t know it as uncommon. So they have this desire to experience as much of life as they can, as quickly as they can.”

“And they worry about the future. They are a generation struggling with how they’re portrayed in the media as selfie and social media obsessed. The reality is they are a very serious generation and quite principled,” Baer adds. How do you find the right voice, or channel to reach them? It’s especially sensitive, as Gen Z does not like to be told what to do, or what they need.

Tell a real story
While social media is often the default response, it’s not cut and dried, as we shall see. While ‘socials’ is still a relatively new medium for some financial players, for Gen Z themselves it’s not even social media. It’s just the way they connect with the world, Baer goes on. “It just happens to be through those channels.”

Connection with authentic content is valued. More storytelling – a lot more. More outreach, aspiration and education. “That’s what will draw them in,” Baer continues, but he warns Gen Z don’t think in terms of typical brand or consumer investor terms. “They need to be engaged with content that has meaning and value, whether they can experience or learn things vicariously through it.”

Think of a 26-year-old entrepreneur who’s starting to ‘make it’ and learning about some of the financial wisdom they’ve gained. “That’s going to be meaningful – the kind of experience a Gen Zedder wants to step into.” Recently Sooth, a marketing agency, tracked affinity scores – loyalty connection to brands – from 17,000 influencers. Gen Z rarely followed investment advisers or financial professionals online, they found, despite their cohort placing a high priority on saving. “These findings align with our broader insight that this generation doesn’t want to be instructed.”

Dangerous financial bias

“The UK’s tax system is quite regressive,” another financial adviser told World Finance. “There’s a very high tax burden on younger members of society compared to their elders.” Lifetime costs paid in tax or services and university debt from government is higher for recent generations. Someone who’s 30 will have a lifetime average cost of £30,000. But someone who’s now 21 could face around £100,000. National Insurance thresholds don’t tend to move with inflation, so younger people who work in lower-paid jobs will more likely creep into National Insurance bands. A great number of younger people across their lifetime will face more debt-linked costs, which may prevent them from saving. This gives them a stronger ‘now’ bias when confronted with savings products. “There are few products that meet the need for those who have a low ability to save.”

The female lead
“While both men and women care about savings,” Sooth went on, “women are 15 times more likely than men to prioritise saving money and will be much more likely to engage with content about savings advice.”

In contrast, men tend to see savings more in terms as a path to wealth accumulation. This is a major gender attitude divide. Online TikTok videos in this space typically address how to ditch debt or how to save money while travelling, or offer short chats about the power and risks of emotional spending.

Gen Z women tend to look to role models as self-made success stories, Sooth thinks: Kylie and Kendall Jenner hold more influence than any finance ‘expert.’ Think role models too such as US singers and actresses Zendaya and Selena Gomez. Gen Z women are doubly likely to look at content if there’s a music, fashion, or entertainment tilt.

But it needs to be honest or ‘real.’ Last year Zeed, a fintech video investment platform, secured more than £200,000 in early stage funding. Co-founder Rohan Regmi, a UCL economics graduate, had previously worked in private equity. Regmi felt Gen Z was underserved by financial services firms globally.

What Gen Z has picked up the most is when someone is being genuine or not

“We create real-time animations with financial data to help investors build convictions which are data-driven,” explains Regmi. “If someone is looking at a financial product, we help them to make comparisons with other products in terms of fees or what’s held in it.” Zeed also adds CEOs, fund managers and other content contributions into the mix, plus broker connectivity, allowing users to get content insights from holdings they already own. This is quite a potent mix, pairing in-house finance content with trade execution, helped along by AI and video.

“We’re able to deliver them content on their actual portfolio. So perhaps you’re up five percent but you don’t know why.” So it’s big on personalisation. Social media, then, plays a huge ‘content’ part. Yet James Berkeley, a strategy consultant who works with several major financial players, warns that social media isn’t the be-all and end-all – by any stretch.

He recently worked with Glasgow-based fintech company Nude, a goal-setting app helping Gen Z save for a deposit for their first home. “The challenge was: how do we attract, how do we engage this particular Gen Z cohort? But the difference between generations isn’t as big as those differences within generations.”

In other words, there are major differences in education, the health of the ‘bank of mum and dad’ (if there is one) and life chances. What Berkeley needed to do was strip back all preconceptions and treat everyone as individuals. “Then you can engage with them in different ways. So the first learning point is not to default to social media platforms. It’s actually a mix of different mediums, including the workplace.”

Can banks sell the financial future?

Pension saving is way off in the future for many Gen Z. How do you overcome the ‘present, right here, right now’ bias? When the financial goal moves into the future the incentive is less powerful.

One thing no pension advert can say is when you are X years old you will get this amount of money every year until you die. “You can’t spell it out in plain terms in an advert,” one financial adviser told World Finance.

“Trying to get that format across in 20 seconds given the restrictions on what can be said is difficult. There is also more chance of pensions not being accessed till someone is in their mid-70s and there are stringent rules about pension advertising.” In other words, pensions marketing is a very tough area to succeed in.

Pay slip advantage
Recently Berkeley worked with logistics company GXO, which has a younger staff profile in some business areas. One priority was to raise awareness with shop floor staff at a time of their lives when cash was important and saving for the future less so. The insights were obvious and not-so-obvious – the latter more interesting.

“Even posters and fliers that had been mailed through the workplace with pay slips had impact and traction, making decisions in which they would apportion some of their monthly salary,” he says. This is an approach as far away from TikTok influencing as you could think.

“The key point here is not an over-reliance on perceived modes of digital communication. We are all individuals. Communication must be unique, not generic. A multi-channel approach was by far the most effective.”
But much of the Gen Z investment ‘noise’ will inevitably divert to ‘social.’ Sigita Kotlere from fintech investment platform company Nectaro says the asset management industry needs to reiterate critical thinking and the promotion of “a wise lifestyle, moderation and mindful consumption.”

As for the workplace, Gen Z are less interested in working in the tech sector than millennials. Gen Z finds tech too turbulent, says the Graduate Management Admission Council (GMAC), “and is less likely to want to pursue a career within the industry. This is seemingly due to the mass firings that have been seen across tech companies such as Alphabet, Meta and Amazon, exacerbated by the volatile nature of tech company stocks and shares.”

Steady tiller wanted
Another ‘want’ is stability, closely associated with financial independence, a consequence of the Covid pandemic, GMAC adds. Meanwhile, challenger app-based banks are doing their best to disrupt the Gen Z saving space, says Dr Harrison, tending to offer ‘one-stop-shops’ via partnerships with other providers, though Harrison is cautious about ‘robo’ financial advice in principle.

“I’m always a bit cautious when fintech is involved in financial planning. Robo advisers are not, by and large, able to delve into the world of tax,” he says. Pensions can be the right savings vehicle he adds, because for example, UK savers get a 25 percent tax write-down on anything they put into one which you don’t get on a mutual fund – but they’re not right for all. But the app-based business is evolving, as players like Zeed show. Human beings are expensive and app-based tech developed at scale is cheap.

A safer landing
In the UK, Royal Assent for lowering the pension auto-enrolment age from 22 to 18 was passed in September 2023, paving the way for introducing, potentially, better financial resilience for younger workers, especially those in the gig economy, many doing multiple low-paying jobs.

The pensions industry will need to think hard about how they target them. For many, pensions are boring and complex, though quick, short videos on topics – the power of compound interest being one example – can elicit quick-fire questions: How do I find a compound interest investment? Where would I go to do this? So the interest is there.

Young Pham is an investment analyst who works with BizReport, a finance-based media company helping individuals make financial decisions. Pham says investment companies have to lean deeper still into financial education. “Gen Z trusts and resonates with brands that provide value and education. Asset management firms should invest in educational content, such as webinars with Q&A sessions and social media posts.” Also look at micro-investing apps allowing users to invest spare change “from everyday transactions,” he says, where “Gen Z discusses personal finance. Asset managers can participate in these chats as credible sources of information and guidance.”

Check the family support bubble

YouGov researched how Gen Z explores and recommends financial products in 2023. 40 percent said they checked out price comparison websites, which was well down on the average UK consumer. “They are markedly more likely than all Brits to rely on advice from friends and family when it comes to purchasing insurance, 32 percent versus 18 percent,” YouGov says. “Websites of insurers/brokers they know, 16 percent, is also a popular medium of insurance research for Gen Z in Britain.” In other words, the personal element is everywhere and getting more important. Penetrating Gen Z’s ‘friends and family’ bubble isn’t easy for many financial players.

The three pillars of wisdom
The education emphasis resonates strongly with Berkeley. A lack of sound financial education from family or school continues to disadvantage many, frustratingly. “The vehicle for engagement of this group is smarter financial education. I can’t tell you how important it is. The quality of decisions that people make can have a transformative impact and schools are doing a wholly inadequate job,” he said.

Berkeley double downs on the three pillars of capital – cash, credit and investment. All three support everyone through a life: how do we think about them? How are these reliably replenished? How do wealth managers make their importance better understood? While TikTok influencers touch on all three often, myths of financial wisdom can also be created, often handed down via family members. Not all are helpful or relevant. But the point is that everyone’s experience is different – and life is expensive.

When the financial goal moves into the future the incentive is less powerful

Given super-high asset prices and cost of living expense, what savings optimism is there for Gen Z? Dr Michael Harrison thinks a future era of positive interest rates, not so battered by inflation, might nurture a wider, more natural mindset. But that’s a work in progress in many countries. Gen Z also carries rather more debt compared to millennials and Gen X. Right through their working career they will need to service it. Debt management guidance on student loan debt or other loans, including income-driven repayment plans along with a balanced financial plan are important, adds Sigita Kotlere.

A rebalancing of values
Jessica McDonald is a US-based financial adviser and a millennial, generally someone born between 1981 and 1996. She runs her own advisory business, Southern Wealth Builders. McDonald has a bird’s eye view of the pressures through her clients. “I think Gen Z is wildly misunderstood and dismissed for their age,” she says. “This generation is more creative overall and takes much better care of themselves regarding setting boundaries and not letting people take advantage of them.”

Gen Z trusts and resonates with brands that provide value and education

“Stereotypically, millennials, like me,” she goes on, “have not been able to say ‘no’ to appear more valuable, thus resulting in burnout and being overworked.” Gen Z has rapidly understood this and, she claims, stands firm on workplace values to maintain a life separate from work. What works she says, is to be 100 percent transparent. “With social media everywhere, what Gen Z has picked up the most is when someone is being genuine or not. That’s one reason why financial salespeople would not be as successful with Gen Z – Gen Z can’t tolerate being sold something.”

She pushes her clients to focus on the ‘why’ and emphasises financial literacy to fix bad habits and back up good ones. “Self care related to finances is a balance of your present self and your future self. We want to plan to make a better life for ourselves in the future, but not at the expense of making ourselves miserable.”

Meanwhile an intergenerational handover of capital is underway between boomers, millennials and Gen Z. While some of this conversation touches on old age, most current financial planning still swerves the huge cost of old age care long-term. But the asset management industry is trying to re-invent itself to remain relevant and to manage their money with meaning.

There are clearly deep generational divides in how money is made, spent and invested. Can it persuade Gen Z – and fast enough – to buy their story?

Responsibility in the age of AI

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Simplifying a complicated economy

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How global currencies end

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Improving the work-life balance with tailored executive services

Posted on December 20, 2023August 29, 2024 by itsupport

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Lara Westphalen, Founder and CEO, The Life Curators

Procuring a range of services gives elite CEOs the edge. Our job is to ensure that our clients can fully focus on their families and businesses without the burden of everyday tasks. But what is everyday for someone else may not be for you. We provide comprehensive support tailored to your unique needs, making us the indispensable partner you never knew you needed.

Global concierge services: Imagine having your own personal concierge, dedicated to managing every detail of your life. From travel arrangements to event planning, The Life Curators are experts at providing bespoke solutions. Need to book a last-minute flight to a business meeting or plan an unforgettable family vacation? We’ve got it covered. Our global concierge services guarantee you peace of mind, knowing that every aspect of your life is in capable hands.

Personal assistance: Our personal assistance services are designed to give you back precious hours in your day. We handle tasks such as grocery shopping or gift purchasing. This allows you to spend more quality time with your family and focus on the things that truly matter.

Executive assistance: Running a successful business requires unwavering commitment and dedication. With our executive assistance services, we become an extension of your team, ensuring that administrative and operational tasks are efficiently managed. Whether it’s scheduling meetings, handling correspondence, or streamlining processes, our team of experts is here to lighten your workload, allowing you to steer your business to new heights.

Strategic advice: Achieving the perfect work-life balance often requires a strategic approach. The Life Curators offer personalised strategic advisory services that align your life and career goals, ensuring that both aspects flourish. Our experts help you set clear objectives, establish efficient routines, and implement strategies to optimise your daily life.

Wellness and lifestyle enhancement: Life isn’t just about work and tasks; it’s about enjoying every moment to its fullest. Our team includes wellness and lifestyle experts who can guide you in making healthier choices, enhancing your overall wellbeing and ensuring that you experience all that life has to offer. From fitness routines to travel experiences, we curate a life that’s both successful and deeply satisfying.

True assistance makes the difference
Every individual and business is unique, and it’s a smart move to consider how outsourcing services like these can help you regain control of your life. Tailored solutions are a must, ensuring a highly personalised experience that caters to your specific needs and preferences. Global reach is crucial too, so insist on an international network to ensure you’re always connected to a trusted team. The most precious resource we offer is time, and regaining hours in your day means time spent with family or devoted to growing your business. With that comes peace of mind and the knowledge that your life is meticulously managed, allowing you to focus on what truly matters. The Life Curators team offers all of this and more, even down to putting a number on how many hours a week our clients can win back by partnering with us.

Achieving the perfect work-life balance often requires a strategic approach

Peace of mind for meaningful moments
More and more executives are making the choice to have The Life Curators by their side and experience the freedom to concentrate on what truly matters to them. The ultimate goal is to empower you to not only succeed in your career but also flourish in your personal life. Elite-level assistance is no longer simply getting the admin done; it is the key to unlocking a life where both professional and personal aspirations thrive in equal importance. Support from concierge, personal and executive assistants, strategic advisors, and even wellness experts and crisis managers means that now you can redefine what success means and attain it. Everyone wants a more fulfilling, balanced, and prosperous life, and with your time on the line, it’s not just about efficiency; it’s about making every moment count.

A masterclass in minimising environmental impact with a sustainable mindset

Posted on December 19, 2023 by itsupport

Sustainability is a top priority for companies in today’s business landscape. In our pursuit to be as transparent as glass, BA Glass has a well-established sustainability strategy that has been part of its organisational culture for over 20 years. A sustainability strategy that is based on six key pillars – people, social accountability, shareholders, environment, consumers and customers – which strengthen and motivate us daily, to do more and to never stop trying new things, driving us to set and meet ambitious targets.

Our sustainability journey starts with the very essence of what we produce: glass. As glass container producers, we embrace the time-honoured human tradition of glass, driven by its unique properties: non-polluting, non-deforesting, inert, non-contaminating, reusable, and infinitely recyclable. This ambitious strategy has guided us to be the only glass packaging company to reach the highest score – an A – in the Carbon Disclosure Project (CDP), joining a group of only 299 companies in the world. CDP is a not-for-profit organisation that runs the global disclosure system across value chains to manage their environmental impacts.

In 2020, we set an ambitious target of reducing CO2 emissions by 50 percent (scope one and two) until 2035 and received its official approval from the Science Based Targets initiative (SBTi), a prominent organisation that promotes the establishment of ambitious science-based emission reduction targets, in accordance with the Paris Agreement. In just two years, we decreased by 20 percent the CO2 emissions per ton of glass produced, in direct and indirect emissions, scope one and two. With a clear vision for reducing our carbon footprint, we have embraced numerous actions and initiatives, namely the transition from fossil fuels to clean energy sources. This energy shift was notably accelerated by the installation of 80,000 m2 of solar panels, resulting in a significant reduction of more than 4,100 tons of CO2 emissions every year.

The integration of cullet (recycled glass) into our production process represents a significant part of our ongoing efforts to minimise our environmental impact. Thanks to its characteristics, glass is 100 percent recyclable, forever. It can be incorporated into the production of new glass containers without any loss of its original qualities. This not only reduces the need for additional raw materials, but also leads to substantial reductions in CO2 emissions. We embraced numerous initiatives to increase the glass collection in all the countries in which we have production facilities, aiming to reach a 90 percent collection rate, a powerful initiative under the Close the Glass Loop, driven by the European Glass Association where BA has two board seats. Aside from recycled glass, another crucial aspect of our strategy is the reduction in weight of bottles and jars, which directly impacts our carbon footprint. In 2022, our innovative lightweight designs led to an impressive reduction of 2,500 tons of CO2 emissions (scope one and two), significantly minimising our environmental impact. Two years ago, we launched PURE, our sustainable brand.

PURE was created with the aim of making glass more environmentally friendly through conscious design, where nature comes first in every part of the creation process. As a result, we are challenging customers and brand owners to review their options on packaging design, embracing more sustainable options. Although our emissions in scope one and two are higher than in scope three, we are also devoting resources to reduce indirect emissions. Many initiatives with transport companies are being developed, and we are very optimistic concerning the significant CO2 reductions ahead. We are partnering with our suppliers in this common journey, debating their carbon reduction action plans and remain willing to actively participate in their initiatives. All these accomplishments, on our journey to be more sustainable, were possible due to the support of our shareholders.

Over the last three years, they have allocated €22m specifically for the development of technologies aimed at reducing emissions and minimising environmental impact. An example is the development of the ECO Furnace, an innovative new technology that will allow us to reduce the use of gas by green energies. This substantial investment in R&D projects underscores their dedication to driving positive change and securing a sustainable future. Besides the environmental concerns, BA’s sustainability journey goes beyond environmental responsibility. We aim to foster a positive impact on our employees and the communities where we operate. Our top priority is to empower our people by going beyond what we produce, creating career opportunities and promoting the development of their skills, through training programmes and enriching experiences that enable individuals to take on new challenges and expand their thinking. Moreover, we are always seeking to create a positive impact within our communities. Our ‘Glass Seeds’ project aims to promote equal opportunities and meritocracy in our local communities through educational support.

For BA, sustainability goes far beyond the production of glass packaging. It is about having a green and sustainable mindset in every action we undertake. Through our long-term commitment and with an ambitious roadmap, we believe that we are not just envisioning a more sustainable future, we are actively shaping it, aiming to be as resilient and eco-friendly as the material we produce – glass!

Transforming the economy by putting people first

Posted on December 19, 2023 by itsupport

Banco de Reservas de la República Dominicana, known as ‘the bank of all Dominicans,’ is at a pivotal moment in its history. Serving as a catalyst in the Dominican economy, the bank has a strong reputation for participating in activities that promote the sustainable development of the country’s main productive sectors, support its sports and culture, and protect the environment.

As part of the celebrations for our 82 years of service, Banreservas is proud to be opening a third representative office. Located in Miami, close to the Dominican Consulate, it will attract new business opportunities to the country as well as serving the Dominican diaspora. Our existing representative offices located in Madrid and New York, along with the new office in Miami, will allow Dominicans to access banking products and services managed from within the Dominican Republic.

These offices make Banreservas the only Dominican bank to go beyond its borders with an international presence in the US and Europe. They demonstrate our genuine interest in encouraging the economic growth of the nation and promoting the prosperity of all Dominicans, wherever they are.

The bank supports its clients to integrate ESG principles into their operations

Our digital strategy also supports these aims, with the Tu Banco app and website boasting 1.2 million active users as well as a monthly average of 7.2 million digital transactions recorded over the last five months.

We pride ourselves on our inclusivity and accessibility: our dual offices, launched in 2021, provide customers with an innovative combination of traditional and digital banking services, including the MIO electronic wallet. Digital account holders, meanwhile, can open a savings account directly in the app or online without having to visit a branch. This new feature saw 50,000 accounts opened in the first month following launch.

Our customer service chatbot, ‘ALMA,’ helps clients via WhatsApp, and our new Digital Token feature allows account holders to authorise transactions by generating unique and temporary codes to authenticate access. Banking with us is safer than ever as a result. Furthermore, we are the only bank in the country whose app doesn’t consume data – all Dominicans should have access to banking services, no matter their means.

Impressive results
2023 has seen an improvement in our financial performance thanks to strong leadership. The loan portfolio has grown by 15 percent, total deposits are up 18 percent and perceived profits are up 34 percent, from a year previously. Banreservas has achieved results that represent a milestone for the firm, our loan portfolio exceeding DOP$500,000, with a non-performing loan ratio of 0.73 percent (the lowest in our history). As of September 2023 our market share was 32 percent, making us one of the country’s leading financial institutions. The Covid-19 pandemic revealed opportunities for improvement in many aspects of the way we live. Continuing with the same patterns of production, energy and consumption is no longer viable – together we need to transform these habits into ones that will lead us along a path of sustainable, inclusive, long-term development.

Taking this into consideration, and wishing to achieve better risk management, since 2021 Banreservas has implemented an environmental and social risk management system (SARAS) whose purpose is to monitor environmental and social risks within our investment and credit activities. One of its main strategic objectives is to develop environmental and social awareness in the next generation in order to achieve a sustainable future. We do this in-house too: our internal Culture of Sustainability programme includes virtual workshops for raising awareness, training and empowering our employees in institutional sustainability.

We have been keenly aware of the importance of ESG since long before the pandemic, however. Since 2017 Banreservas has been part of the United Nations Global Pact, thereby committing to working towards the Sustainable Development Goals (SDGs), presenting an annual progress report on the adoption of sustainability in the company’s activities. In addition, Banreservas is an active member of the National Business Support Network for Environmental Protection (ECORED), using its online evaluation tool ‘IndicaRSE’ along with other international standards to ensure we are pushing forward with our sustainability agenda.

The bank promotes clean energy by offering loans for sustainable solutions

In 2007, the Dominican Republic passed legislation on renewable energy as part of its commitment to reducing its greenhouse gas emissions by one-third by 2030. The main objective of this law was to increase the contribution of renewable energy sources in electricity generation to 25 percent by 2025. To comply with the legislation we launched ‘Renueva Verde Banreservas,’ a new financial service programme to facilitate families’ and companies’ switch to clean energy solutions. The programme is an invitation to incorporate environmentally friendly solutions at home and at work, offering financing of up to 80 percent of the value of the product, with fixed rates from 6.45 percent for up to three years, payable in installments of up to 84 months. Also available are partnership with businesses, financial education programmes, and special offers on products and services provided by companies in the Reservas family.

Together with its investment banking team, the bank supports its clients to integrate ESG principles into their operations, develop resilience and risk management and unlock new business opportunities in an evolving market landscape. Within its credit offer, the bank promotes clean energy by offering loans for sustainable solutions such as solar panels, hybrid and electric vehicles, scooters and electric bicycles.

We have also signed an agreement with Interenergy Systems Dominicana, a division of the InterEnergy Group and its Evergo technology platform, to install electric charging stations in the parking lots of our offices nationwide. We strive for energy efficiency in our own offices too, achieving power usage effectiveness indexes as low as 1.5 in our data centres.

As a result of all these initiatives, Banco de Reservas de la República Dominicana has been awarded 43 Sustainability 3Rs certifications by the Dominican Republic’s Center for Agricultural and Forestry Development. With most of the awards at gold level, we are the most recognised financial institution in the country in this regard, a sign of how seriously we take our responsibility of contributing to the country’s sustainability goals.

Supporting Dominican society
We contribute to the development of Dominican society through the work of our Sustainability and Social Responsibility Department. This work includes our focus on financial education and inclusion, which promotes a savings culture for sustainable economic wellbeing. Whether Dominicans are right at the beginning of their financial journeys or seeking financial rehabilitation, our financial education and culture workshops can help. The ‘Preserva’ programme, meanwhile, provides access to low-cost banking products aimed at promoting savings and good credit.

We support entrepreneurship through our ‘Cree Banreservas’ programme. It supports the sustainable development of innovative projects by Dominican entrepreneurs through specialised technical mentoring. Development of the productive sector is also key: the Banreservas ‘Coopera’ programme promotes the socio-economic development of national producers. It does so through the promotion of social projects for the production of goods and services located in vulnerable communities. Social inclusion is at the heart of the ‘Banreservas Accesible’ project too, promoting access to job opportunities within the Banreservas’ family for people with disabilities.

The bank carries out even more sustainability activities through ‘Voluntariado Banreservas,’ our solidarity and commitment programme. Plugging into two of the main focuses of the bank – social responsibility and sustainability, and human capital – it carries out community benefit projects covering areas as diverse as the environment, health, education and culture.

Looking to the future
Banreservas is dedicated to improving quality of life in the Dominican Republic through strategies that support the country’s long-term development. This is only possible through a combination of effective management of resources and prioritising the most vulnerable in society.

As a leading government-owned financial institution, we are well placed to compete with private banks to support the needs of our people.

Celebrating success with next-level trading

Posted on December 18, 2023 by itsupport

Mitrade has dedicated its efforts in expanding its contract for difference (CFD) product range, reflecting its strong commitment to providing traders with an even more diverse and comprehensive set of trading products. This will benefit traders by offering them a one-stop trading platform to trade faster and smarter – capitalising on a wider array of market opportunities.

Mitrade is an Australian-based CFD broker that embarked on its journey in 2011 with a vision to revolutionise online trading. Over the years, it has emerged as a prominent global trading platform with over 2.4 million users, licensed by different regulatory bodies such as ASIC, CIMA, and FSC (Mauritius), catering to traders from around the globe. Offering an extensive selection of over 400 markets, Mitrade has become synonymous with unparalleled opportunities for traders to engage with a diverse array of financial instruments, spanning stocks, commodities, currencies, indices, and cryptocurrencies. Recognised as a popular trading app, Mitrade has garnered over a million installations across both Google Play and the iOS App Store. This extensive usage demonstrates the trust and preference traders have for this platform to meet their trading requirements. Currently, the trading platform is accessible through mobile applications, desktop, and web trader platforms.

Award-winning platform
Mitrade has established itself as a prominent global trading platform, continuously receiving acclaim as an award-winning entity from its early days up to the present moment. These accolades underline the platform’s dedication to offering outstanding services and innovative solutions to traders. Earlier this year, Mitrade received an award for ‘Best Multi-Asset Broker’ from World Finance. The award recognises Mitrade as the go-to platform for traders, allowing them to have an impressive selection of over 400 trading products such as forex, shares, commodities, indices and cryptocurrencies. By offering such a wide range of products, Mitrade makes it possible for traders to explore different markets and make investment decisions based on their preferences.

Top-picked trading products
Throughout the year, Mitrade has seen remarkable growth on its trading products. User favourites like NAS100, XAUUSD, AAPL, and EURUSD stand out for their exceptional performance in trading volume. Notably, VinFast Auto (VFS) shares have stood out among the new additions this year, constituting 2.8 percent of the total volume of US shares traded. With this widened scope, Mitrade is determined to elevate its offerings even further – Mitrade ensures traders have access to an extensive portfolio of assets, enabling them to diversify their investments and leverage a broader range of market movements.

We are committed to giving traders the edge they need in the fast-paced financial markets

Hassan Haidar, Head of Dealing at Mitrade, conveys his enthusiasm for the ongoing initiatives in launching new products, saying, “Mitrade is an all-in-one trading platform, crafted for traders of all levels, designed for ease of use and flexibility. We are committed to giving traders the edge they need in the fast-paced financial markets. This broadened range of CFD products, combined with our intuitive trading platform, underscores our steadfast promise to offer our clients diversification and flexibility.”

He goes on to express gratitude, saying, “I want to take this opportunity to extend a heartfelt thank you to all our users who have supported Mitrade on this incredible journey. Your feedback and support have been instrumental in shaping our platform into what it is today. We remain dedicated to continuously improving and innovating to meet your evolving needs. Your trust and loyalty are the driving forces behind our continuous efforts to enhance your trading experience. We look forward to many more milestones together.”

Low spreads and zero commission
In the world of financial markets, traders aim to maximise profits by leveraging advantages. Low spreads and zero commission fees are two critical elements that, when combined, create an environment empowering traders by reducing costs and increasing potential gains. Low spreads are pivotal because they directly influence the trades’ breakeven point and potential profitability. A narrow spread means lower initiation costs and a smaller movement required in the trader’s favour to turn a profit. This is especially vital for day traders and scalpers, for whom even small price movements can significantly impact profitability.

Mitrade’s offering of low spreads enhances the trading experience for their users, making them a competitive choice for traders seeking cost-effective solutions. Zero commissions on trades revolutionise online trading by removing the conventional fee structure associated with buying and selling financial instruments, benefiting traders of all levels. This reduction in trading costs is particularly advantageous for frequent traders and those with smaller capital. It also levels the playing field for beginners or those with limited funds, enabling them to learn and experiment without the worry of excessive expenses. Additionally, the absence of commission fees allows for more calculated risk management and encourages a dynamic trading approach.

This model promotes greater portfolio diversification, spreading risk and potentially enhancing overall success. For traders employing longer-term strategies, it allows them to hold positions without the pressure of ongoing fees. This transparency builds trust between traders and their chosen brokerage, eliminating potential conflicts of interest. In essence, zero commissions on trades provide a substantial advantage, streamlining trading for greater accessibility, efficiency, and transparency, while also giving brokerages a competitive edge in the market.

Revolutionising trading
With a focus on speed and efficiency, Mitrade has seamlessly integrated TradingView, a platform trusted by over 550 million users, into its trading interface. This integration brings a powerful set of tools to traders’ fingertips. They can now easily perform technical analysis, which involves studying historical price charts and patterns to make informed decisions about future price movements. This is a crucial aspect of trading, as it helps traders identify potential entry and exit points for their trades.

In addition, Mitrade’s comprehensive platform is bolstered by a suite of educational resources and analytical tools with an AI feature. One of the product highlights was MitradeGPT; an integrated version of ChatGPT and FXStreet news insights into the platform, making Mitrade the first in the CFD world to have this kind of feature. With MitradeGPT, users are able to access real-time insights, personalised guidance and a quick summary to navigate the complexities of financial markets – filtering out the noise from the bustling news environment. These recent product updates aim to equip traders with the knowledge and insights needed to make informed trading decisions. It encompasses market analysis, live webinars, tutorials, and a range of other resources designed to enhance traders’ skills and understanding of the financial markets.

Effective risk management is a cornerstone of successful trading, particularly in volatile market conditions. In any trading platform, when market fluctuations are swift, there’s a potential for losses to exceed your account balance rapidly, potentially resulting in a negative balance following a forced liquidation. To mitigate this risk, Mitrade offers a valuable feature known as negative balance protection.

This safeguard ensures that even if losses temporarily surpass your account balance, the platform will promptly reset it to zero. This feature provides traders with an extra layer of security and confidence, enabling them to navigate the markets with greater peace of mind. It underscores the platform’s commitment to creating a safe and supportive trading environment for all users.

All-in-one educational resource
This year, Mitrade has also revealed the expansion of Mitrade Academy’s educational resources in 10 languages. This launch shows Mitrade’s dedication to helping traders worldwide by giving them easy-to-understand learning materials in their native languages. By offering an extensive range of educational content, including tutorials and trading guides, in languages such as English, Spanish, Thai, Vietnamese, and more, Mitrade aims to break down language barriers and foster a more inclusive and informed trading community. Mitrade welcomes both existing and new clients to explore our all-in-one trading platform and discover how easy it is to manage multiple investments on a single platform. The company’s steadfast dedication to innovation, user-centricity, and educational empowerment distinguishes it as a leader in the trading industry.

Comprehensive trader support
Mitrade’s 24/5 multilingual local customer service is a testament to their commitment to providing tailored and accessible support to traders worldwide. With a team proficient in various languages, they ensure that assistance is available whenever traders need it, from Monday to Friday.

This localised approach means that traders can communicate in their preferred language, facilitating clearer and more effective resolutions to their queries or concerns. This personalised service not only fosters a stronger sense of trust and reliability but also reflects Mitrade’s dedication to creating a global trading environment that feels truly welcoming and inclusive for all.

Championing a more sustainable aviation future

Posted on December 18, 2023 by itsupport

With COP28 just around the corner, sustainability is undoubtedly front of mind for most organisations. The aviation industry is making extensive efforts to address the current climate challenge, reduce its carbon footprint and create more sustainable air travel options.

But how can airlines realistically reduce their environmental footprint? While we know that a plane will never be more sustainable than a train or an electric vehicle, Wizz Air is on a mission to become a pioneer in sustainable aviation and has already delivered on a number of important milestones in terms of its sustainability strategy.

Pioneering sustainable aviation
Wizz Air proudly holds the title of the most sustainable low-cost airline according to the World Finance Sustainability Awards, with the lowest carbon emissions intensity in Europe, if not the world.

In the fiscal year 2023, we achieved an impressive 53.8 grams of CO2 per passenger per kilometre, marking an 11 percent reduction compared to the previous fiscal year. This achievement is the lowest emissions intensity ever reported by Wizz Air in a single fiscal year. We are not just setting records; we are setting industry standards and leading by example.

One of the key drivers behind our sustainability success is our commitment to continuous fleet renewal and focus on technology and innovation available here and now. The latest Airbus A321neo aircraft we operate is significantly more fuel-efficient than previous generation aircraft. Wizz Air boasts one of the youngest fleets globally, with an average age of four years, well below the average fleet age of its major competitors, which is around 10 years. Not only does this benefit our environmental efforts by reducing emissions intensity, but it also enhances the passenger experience with quieter and more comfortable flights.

We also believe that consumer sentiment is changing – passengers are choosing low-cost airlines over traditional network carriers, who are unable to meet the same efficiencies or achieve the same carbon emission reduction results. Switching to fly with Wizz Air can reduce a passenger’s CO2 emissions by almost 50 percent compared to flying with legacy carriers.

Future fuel
One of the cornerstones of Wizz Air’s sustainability strategy is the integration of sustainable aviation fuel (SAF). While we are working with Airbus on their zero-emissions hydrogen aircraft, which is 20–25 years away from now, we see SAF as a bridge between the present and a more sustainable aviation future, on top of fleet renewal and investments in operational efficiency. Although SAF holds immense potential to reduce carbon emissions by up to 80 percent over the fuel’s life cycle compared to using fossil jet fuel, we acknowledge the challenges it poses. Biofuels and e-fuels, while promising, have a limited supply, making them expensive and difficult to obtain.

Nevertheless, Wizz Air is actively addressing these challenges. We have forged partnerships and invested in SAF, both securing volumes for the mandates that are coming in 2025 in Europe and trying to help new technologies come to life.

We have four agreements in place with the world’s leading SAF producers, including Neste and OMV. We also made our first equity investment of £5m into Firefly, a UK-based biofuel company developing the technology to produce SAF from sewage sludge, and participated in a $50m investment in CleanJoule, a US-based company making biofuel from renewable agricultural residues and other waste biomass. These strategic alliances will not only help us secure a stable supply of SAF, but also drive innovation in this crucial area of sustainable aviation.

A brighter air travel outlook
There has been an upturn in passenger numbers following the challenges posed by the Covid-19 pandemic, the industry is recovering and people are flying again. It is clear, now more than ever, that the path to a more sustainable aviation industry involves investing in new technologies and embracing innovation. While Wizz Air has given the freedom to travel to more and more people, it has also proven that growth and sustainability can be achieved simultaneously.

By investing in the latest technologies, embracing SAF, and working collaboratively with partners, regulators, and stakeholders, we are leading the charge towards more sustainable air travel. We support legislative initiatives that mandate SAF use and encourage governments to invest in its production to ensure appropriate supply for the demand that is foreseen. In that regard, the European Union is a standard setter in terms of global climate policy, and we welcome such regulatory approaches.

With our holistic approach to sustainability and continued focus on resource efficiency, we are confident we can contribute to the communities we serve and the planet whilst also lowering our cost structure, strengthening the trust of our customers, and improving access to capital over the long run.

Boardroom balance: A top down approach to diversity and inclusion

Posted on December 15, 2023 by itsupport

Boardrooms have the innate power to change the future not only of companies but the overall economy. When it comes to fully utilising their power, diversity of opinion is the cornerstone of a successful, powerful board. For a board to have a holistic viewpoint, it is vital that under-represented parties are heard. In fact, the configuration of the board of directors has been a vital research topic in the corporate governance realm for many decades now. During the last few years, the literature in the corporate governance field explicitly stresses the importance of gender diversity in the boardroom.

Several jurisdictions have enacted gender quota legislations to mandate the appointment of female directors on corporate boards. Gender legislation endeavours to address the ethical aspect that female directors have been significantly under-represented despite equal competence. Indeed, the Norwegian government was a pioneer in this field since it was the first to establish a 40 percent female quota in 2003. There now seems to be a widespread recognition among both company boards and stakeholders in relation to the benefits that derive from diversity, especially with respect to gender.

Shockingly, in 1983, based on the 10-year growth rate of the ranks of women directors, Elgart forecast that it could take about 200 years for women to attain equal representation in top corporate boardrooms. While the corporate world grapples with the imperative of fostering gender diversity, one bank emerges as a beacon of progress: the Bank of Cyprus. At our bank, the balanced participation of women and men in the decision-making process is imperative to the fundamental principles of democracy and human rights. Its advanced initiatives in championing board gender diversity set a laudable benchmark in the corporate governance sphere. A closer examination reveals the nuanced strategies and deep-rooted ethos that make the bank a trailblazer.

The historical foundations of the Bank of Cyprus provide a lens though which one can comprehend its unwavering commitment to gender diversity. Founded in 1899, the bank has not just been a silent spectator but an active participant in the socio-economic metamorphoses unfolding within and beyond the borders of the jurisdiction. In tandem with the societal changes, the bank illustrated a proactive consciousness toward the changing dynamics of gender roles. As women in Cyprus and abroad began to carve out spaces in the corporate world gaining visibility and prominence, the Bank of Cyprus acknowledged the imperative to reflect these changes within its organisational structure and leadership. To this end, the bank adopted policies and practices with the aim of promoting gender inclusivity at board level. This was not merely a symbolic nod to the trends of the time but a robust commitment to cultivating an organisation where, not only do women participate, they also lead.

Real data: An exceptional record
Quantitative data provides compelling evidence of the pioneering spirit of the Bank of Cyprus in the field of gender diversity at board level. In fact, official data – released in the 2022 Corporate Governance Report of the Bank of Cyprus – demonstrate that the board is comprised of 40 percent female representation. This progress is a culmination of years of meticulously planned strategies, manifesting the genuine commitment of the bank to gender equality. The empirical data of Bank of Cyprus provided in terms of gender equality tells a tale of unwavering, sustained commitment that has been nurtured and strengthened over time. The 40 percent female representation stands even stronger against the background of official data released on the subject; according to the 2020 OECD Analytical Databases on Individual Multinationals and their Affiliates (ADIMA) women are severely under-represented. Indeed, women in accordance with the ADIMA make up only 16 percent of board members in the top 500 MNEs.

The triumph of the Bank of Cyprus is not coincidental; it is the result of a gamut of calibrated strategies. Through meticulously crafted policies, recruitment strategies, and professional development programmes tailored for women, the bank has actively sought not only to accommodate, but also actively promote and celebrate female leadership within its ranks. In fact the bank sets explicit diversity goals, which strictly adhere to quantifiable targets with the aim to provide clear direction for its diversity mission. Additionally, in the process of candidate selection for board position nominations, the bank official considers in their suitability processes the impact of a nomination of a board member on gender diversity.

Behind the business rationale
The rationale behind the gender diversity commitment of the Bank of Cyprus is supported by a plethora of research and evidence that detail the correlation between gender diversity and business performance. In the aftermath of the financial crisis, one of the key issues of the board composition debate has been board diversity. Extensive research has indicated that gender diversity in the boardroom will lead to innovative ideas, increased competitiveness and performance, as well as better decision-making. Indeed, diverse teams contribute to a richer brainstorming ecosystem, crucial for banking in the current age of constant innovation.

The balanced participation of women and men in the decision-making process is imperative

Board quality and board diversity are interconnected since a diverse board are less prone to ‘groupthink,’ which has been defined as a mode of thinking that people engage in when they are deeply involved in a cohesive in-group, when the members’ striving for unanimity override their motivation to realistically appraise alternative courses of action.

It has also been suggested by bulk literature on the subject that the presence of female directors on corporate boards significantly contributes to the efficiency of corporate governance and increased corporate reputation.

Further to the link between gender diversity at board level and increased governance performance as well as innovation galore, there is evidence to suggest boosted financial returns are linked to gender diversity on the board. The McKinsey research showed that “companies in the top quartile representation of women in executive committees perform significantly better than companies with no women at the top.” In fact, in a 2013 report issued by Ernst and Young it was underlined how gender diversity can aid the improvement in company results in terms of better average growth and a higher return on equity.

The diversity journey
The path of gender diversity on the board is a perpetual one as societal change does not remain stagnant and societal dynamics are fluid. Plans on the horizon include intensified mentorship drives, partnerships with academic entities to sculpt the next generation of female financial leaders, and rigorous training sessions to eliminate unconscious biases in hiring and promotions.

While statistics provide a compelling story, the path of the bank in the journey to gender diversity is more profound. This is just a start. At Bank of Cyprus, we believe that financial institutions should continually search for new ways to use their expertise to further empower investors and promote gender diversity at all levels of leadership around the world.

The 40 percent board gender diversity of the Bank of Cyprus is a testament to the institution’s ability to introspect, evolve, and lead. Gender diversity is not regarded by the bank as a mere box-ticking exercise. On the contrary, it is an intrinsic part of its ethos, a commitment to reflecting the society it serves, and a strategic imperative to ensure sustainable growth.

In the vast landscape of global banking, where institutions grapple with the challenge of genuine gender inclusion, the bank shines brilliantly, offering lessons, inspirations, and a roadmap for others to emulate. As the world continues to champion gender equality, it is institutions like the Bank of Cyprus that will be remembered not just for their business acumen but for their role in reshaping gender inequalities.

Embracing innovation and AI in fund management

Posted on December 15, 2023 by itsupport

Spanning Belgium, Slovakia, Hungary, Bulgaria and the Czech Republic, KBC is a banking and insurance group with some 42,000 employees and 12 million clients. We offer a wide range of products and services such as investment funds and discretionary management for all types of clients: retail, private banking, and wealth clients, and we aim to cater for the varying needs of all. At the core of our day-to-day motivation lies our motto: ‘Everyone invested all the time.’

KBC Asset Management 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.

Digital first with a human touch
We believe that investing is a healthy financial habit for everyone, and innovation allows us to keep clients feeling comfortable when investing and so keep them invested. We do this in a personalised yet efficient way – we are also embracing AI, which helps us to change the way we interact with our clients in all market segments. Our Solution Development team takes solutions from idea to launch and initiates changes and challenges to existing solutions to make sure they match our clients’ needs at all times. A talented team works together to ensure proper asset allocation in managed funds and portfolios. The Solution Support team offers clients direct investor support, providing personal, relevant, and up-to-date information, training, and after sales services, and it does this by putting digital channels first.

Making investing a healthy habit
We take every opportunity to introduce innovative solutions to fit our clients’ needs. Over the last 10 years, KBC Mobile – our award-winning mobile banking app – has evolved into an all-in-one platform that is now the gold standard. Our virtual assistant, ‘Kate,’ has been the logical next step in the digital client experience, helping clients navigate investment options on digital channels, where over half of KBC’s investment plans are now sold.

AI models help in stock picking and optimising fund portfolios

We also added a ‘turbo’ feature on our digital service: investing with your spare change. The principle is simple; each time a client pays with their debit card, KBC rounds up the amount to the nearest Euro and automatically invests it. The client invests their spare change and gains investment experience with no effort whatsoever. The ‘turbo’ can be accelerated by a factor of two or three, enabling the customer to put even more aside if they wish. They can also activate or deactivate the ‘turbo’ at any time in KBC Mobile.

Investment innovation
We have broadened our digital offer both for first time investors and customers who want to respond to the challenges of today and tomorrow. Customers can invest in themes close to their heart via thematic investing in KBC Mobile, either periodically or as a lump sum.

This is done without any human assistance via personal portfolio advice by ‘Kate’ to keep clients feeling comfortable when investing. Our smart advisory engine, based on AI, screens portfolios held by private and wealth clients on a daily basis. It performs a detailed analysis of each portfolio based on different risk and return factors and proactively formulates personalised advice. It is an E2E process that also takes into account clients’ personal investment preferences.

By embracing AI in fund management, KBC can respond faster to market developments. AI models help in stock picking and optimising fund portfolios. This enables us to respond to market developments faster and more efficiently for our clients. Two of our funds are even managed by AI; a balanced fund whose asset allocation and asset classes are determined with the help of AI-controlled models, and an equity fund whose stock picking is done by AI.

Responsible investing for 31 years
Since our first launch in 1992, KBC has systematically strengthened its policy, considering society’s constantly changing expectations and growing insights. Credibility is a core value for us; therefore this is monitored by the Responsible Investing Advisory Board, which is completely independent of KBC and consists of leading academics from several universities.

We work hard every day to get – and keep – everyone invested by providing tools and products that make investing easy, personal, valuable, and reliable. Using the power of data, our key focuses are innovation and employee and client satisfaction. By focusing on digitisation and creating value for our customers in a sustainable way, investing truly is becoming accessible for everyone.

A rich portfolio of innovative financial solutions

Posted on December 14, 2023 by itsupport

For over 30 years Postbank has worked with a clear strategic vision for the future and the sustainable growth of its business. The bank offers innovations for an excellent experience for its customers and employees, and it invests in a green future in line with its ESG strategy. The excellent consumer experience is an immutable part of the bank’s corporate policy.

Through the development and implementation of every high-tech solution and the provision of services with exceptional added value, the bank reaffirms its ambitions to be a key leader in the financial services market and its desire to be the bank that offers its customers innovative concepts and solutions combined with flexibility and efficiency. Postbank provides an excellent experience and personalised financial products and services to its current and future customers, combining the latest technologies with a tailored approach, and professional consultation.

Continued growth
Postbank will continue to grow and the acquisition of the Bulgarian branch of BNP Paribas Personal Finance in 2023 is another step towards expanding its market share and taking an even stronger and more stable position in the ‘big four’ of the banking sector. This acquisition allows Postbank not only to strengthen its position in the consumer lending segment, but also to enter into a promising and fast-growing market that Postbank is eager to further develop by offering many more products to both new and existing clients.

The bank has started replacing the vehicles from the company fleet with hybrid and electric ones

As a result of the deal, Postbank strengthens its leadership position in retail banking and now occupies second place in the consumer lending market, adding a new client base to its portfolio and acquiring a portfolio of over BGN960m (€491m) in consumer loans. It generates significant opportunities for cross-selling as well as implementing innovative digital solutions for client convenience. With the successful finalisation of the deal, a team of exceptional professionals with a proven level of expertise and strategic vision in banking joins the Postbank team.
A new brand revealed

With the first-of-its-kind conference ‘Retail Reload – powered by AI’, in November 2023, Postbank introduced its new brand, ‘PB Personal Finance by Postbank’, which officially became part of the leading financial institution in June 2023. The special event, organised in partnership with Mastercard Bulgaria, brought together over 250 representatives from leading companies. Alongside internationally renowned speakers, they discussed the latest trends and innovations in artificial intelligence in the retail business.

The addition of the new brand, ‘PB Personal Finance’, is not only part of Postbank’s strategic development as a systemically important bank, offering innovations and personalised financial solutions for the convenience of its customers, but also of great importance for Eurobank Group as it expands its operations into significant regional markets. Just a few months later, Postbank reported excellent results and solidified its leading position in the consumer lending market by offering financial products to more than 1.2 million customers and providing BGN6.9bn (€3.5bn) in loans to households. Under the new brand ‘PB Personal Finance by Postbank’, clients will continue to receive a variety of attractive products and fast services in order to fully meet their expectations and high demands. The creative approach and innovative ideas are deeply embedded in the values of both companies and this is the key to a new understanding of banking that is shared and will integrate into a new ‘Beyond Banking’ concept, providing more value and benefits to clients.

On the road to success
In 2023, the financial institution received over 20 prestigious national and international awards for its innovative products, services, and corporate social responsibility. Postbank received the highest global accolade, Top Employer for 2023, from the international independent Top Employers Institute. Following on from these outstanding results, the financial institution won the award for successful digital transformation in the Bank of the Year awards of the Bank of the Year Association.

Postbank has received a Baa3 long-term deposit rating with a positive outlook by the international rating agency Moody’s Investors Service. At the same time, the rating agency has assigned a Baa2 long-term rating for Counterparty Risk Ratings (CRR) to Postbank. The robust capitalisation, strong recurring profitability, and growing deposit base of Postbank have been thoroughly evaluated and reflected in Moody’s report. The agency highlights that the bank’s strong profitability also supports its ability to generate sufficient capital internally.

Such an assessment from a global agency like Moody’s is recognition of the effectiveness of the bank’s work, the high standards it maintains in its operations, and the even higher goals set and achieved together with its team. Postbank are delighted that its efforts have been recognised at the international level, which once again emphasises and supports the progress it is making towards a vision of being a systemic bank in the market, with a strong presence, strictly following a strategy of sustainable development and setting trends in the country’s banking sector.

Green ideas
Traditionally, the banking sector is engaged with the financing of activities, which are directly or indirectly related to the development of other spheres of the economy, with banks being key participants in the ‘green transformation.’ Postbank’s strategy is focused on sustainable financing through priority support for activities with low or net-zero footprints, including credits for renewable energy sources, as well as for energy efficiency. Over the past few years, the bank has taken significant steps and implemented valuable initiatives to demonstrate its readiness to play a key role in the transition to a low-carbon and sustainable economy on the way to achieving long-term national and global goals.

Postbank introduced a special ‘Eco Auto Loan’ for financing fully electric or plug-in hybrid cars under preferential terms for its customers and a green business loan, intended for companies with projects for improving the environment.

Postbank is steadily transitioning towards renewable energy sources

Regulators expect the bank to support the implementation of the Green Deal by introducing various incentives and requirements for its clients. At the same time, prudential requirements for assessing and managing the environmental, social and governance (ESG) risks to which it is exposed are tightening. This calls for flexibility and innovation and new approaches and ways of doing business. The good news is that Postbank is already working on this.

Green light for new opportunities
The bank’s ESG strategy is being developed in two directions – the first relates to the internal processes and everything the organisation does, while the second addresses the clients and what they do with the funds the bank lends them. For 11 years Postbank has been internally tracking three indicators – the carbon footprint of the energy consumed, the amount of water used and the volume of paper used, and thanks to the efforts made, a significant reduction has been achieved in all three indicators. Thanks to the photovoltaic power station in the head office, Postbank is steadily transitioning towards renewable energy sources. This photovoltaic power station has a total installed capacity of 388kWp and its operation could save around 173 tons of coal annually, with close to 205 tons of CO2 emissions avoided.

The introduction of environmentally friendly, recyclable materials in the improved bank premises, the installation of LED lighting, as well as the introduction of the latest generation of more efficient and environmentally friendly air conditioning systems, are just some of the sustainable actions taken by Postbank on the road to a green economy. The bank has started replacing the vehicles from the company fleet with hybrid and electric ones and has also built an installation for the required power supply on the territory of the head office.

Postbank will continue to transform and innovate, demonstrating its modern signature among financial institutions in Bulgaria and a rich portfolio of innovative financial solutions for the exceptional convenience of its customers and over 3,000 satisfied employees.

Innovating and disrupting a complex industry

Posted on December 13, 2023 by itsupport

In August 2019, Greg Webb joined Travelport as Chief Executive Officer. The travel technology company, which powers bookings for hundreds of thousands of travel suppliers worldwide, had recently been taken private and was about to undergo a tremendous digital transformation with the intention of solving some of the biggest problems in travel retailing.

But then, in March 2020, the pandemic hit, and the global travel industry went from all-time highs to a low of only five percent of expected volumes overnight. While travel initially ground to a halt, the pandemic eventually amplified and accelerated the need for the industry to get modern. Webb used this time to streamline Travelport’s operations, doubling down on the company’s investment in technology to ensure its next-generation platform, Travelport+, was ready when travellers were.

A next-generation platform
Travelport+ is the only modern retailing platform built for travel agencies. It connects buyers (traditional travel agencies, online booking apps, corporate travel management companies, and more) and sellers of travel (airlines, hotels, trains, car rental companies, etc) through a single, independent marketplace. Similar to Amazon, Travelport+ eliminates back-end complexities that cause long, mind-numbing searches for the perfect hotel room or make it difficult to shop and compare flights or car rentals.

The company’s global presence brings a variety of cultures, opinions and ideas to the table daily

Consumers expect digital experiences to be intuitive, frictionless, and fast. Other businesses have pushed the boundaries of digital innovation, but the travel industry has lagged. According to research by Travelport, booking travel is often regarded as tedious as evaluating mortgage or car insurance options. In fact, on average, travellers visit 38 websites before they book a trip. The lack of price transparency, difficulty in comparison shopping and the feeling of hidden costs all further erode consumer trust.

Webb is keen to improve upon the lack of transparency in the travel industry and is a longtime advocate for greater industry collaboration. His focus on transparency extends to Travelport’s corporate culture as well, where he regularly prioritises all-company town hall meetings, direct weekly communication, and more.

Investment in technology
Travelport continues to evolve its modern retailing platform with enhanced tools and new solutions that are designed to be intuitive, frictionless and fast. Additionally, the company is always looking for new areas to expand into, and in March 2023, the company announced the acquisition of Deem, a leading corporate travel management platform. Deem shares a similar goal of modernising a complex industry, more specifically offering the corporate travel landscape a more customer-centric booking tool. Just five months after the acquisition, Travelport had fully integrated the Deem and Travelport+ platforms, allowing shared corporate travel customers to book and manage their work trips in the same way they would their personal trips. This means more self-service, intuitive recommendations, real-time updates and changes that can be made on the go.

Supportive and transparent leadership
Webb’s vision and strategic direction have been instrumental in driving Travelport’s growth. His passion for the travel industry and his commitment to excellence have made him an inspirational and respected leader in the sector. It has also made Travelport a company that continues to lead the industry.

The company takes pride in cultivating a diverse and inclusive workplace where employees are encouraged to think differently and try new things. Travelport is committed to equality, prioritising a work environment where all employees can confidently, and comfortably, share their opinions and challenge the norm. The company’s global presence brings a variety of cultures, opinions and ideas to the table daily, something Webb believes is vital to Travelport’s success.

Change is for the brave
Looking to the future, Travelport continues to be committed to simplifying the complexities of the travel industry by inventing new solutions where there currently are none. Webb and the Travelport team work with industry partners who share their passion for delivering exceptional experiences and creating best-in-class technological solutions. The company continues to invest in the latest advancements, such as cloud computing, data-driven intelligence, machine learning and AI capabilities. The result is a more efficient and personalised travel retailing experience, which will continue to drive the industry towards a bold new era.