Author: World Finance

Baiduri Bank launches new online services for Brunei’s businesses

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Bruneians demand sophisticated banking products, says Baiduri Bank CEO Pierre Imhof. They are wealthy, they travel the world, and they expect the same quality and ease of banking at home as overseas. Pierre explains how Baiduri steps up to this challenge: from a series of technological firsts in the retail space, to online merchant services with the highest security available for SMEs and larger corporates.

Click through to the second part of our interview with Pierre, where he discusses Baiduri’s soon-to-open stock exchange.

World Finance: Brunei’s stock exchange is scheduled to open later this year, sparking renewed international interest in the small – but wealthy – island nation. The initiative should help the government’s ongoing efforts to diversify the economy. Joining me is Baiduri Bank’s Pierre Imhof.

How are the diversification efforts going?

Pierre Imhof: The diversification process for the last two years, with the change in oil and gas prices, has become an absolute priority. So the government has intensified their effort for diversification, and banks are playing a major role in this process: mainly targeting SMEs, and secondly the foreign direct investments.

These initiatives are an absolute priority within the Wawasan 2035, which is the government’s long-term development plan to create a nation which is healthy and financially sustainable.

World Finance: How is Baiduri Bank playing a role in that?

Pierre Imhof: We are very eager to finance the short-term needs of companies; we are also very eager to finance some of their long-term needs, to develop their business, to finance a new project, etc.

We know our clients well, the relationship is very personalised. We understand their needs, we are able to proffer solutions which correspond to their needs.

For example, for very small enterprises we have launched a product called MerchantSuite, which is offering to our small clients the possibility to transact online, to receive payments online without having to create their own website.

World Finance: Attracting foreign direct investment, another important role that banks need to play in the diversification efforts; how are you achieving that?

Pierre Imhof: The whole banking system in Brunei is very strong, and Baiduri Bank is no exception. Baiduri Bank has a very strong capital, and this definitely assures foreign direct investors when they come that they will find in Brunei a bank which is able to support them, a range of services which is of good quality, and in which they may put their confidence.

Another element is, banking with the highest level of security is very important for all clients. Baiduri Bank has been the first bank in Brunei to have developed PCI-DSS standard, which is a very high level of security for protecting data.

World Finance: You mentioned the trend towards digital services earlier; what other kinds of additional services are businesses – whether home-grown or coming from overseas – demanding from banks?

Pierre Imhof: We see, as I mentioned, more demand from companies to make their transactions, their transfers, through internet banking.

When they have retail clients, they like to offer services online. And banks behind the scenes are offering the technology to allow these companies to process their payments online.

What I think we’ll see more and more is development of new methods of payments, and we are working in order to offer in the future to our clients these new methods of payment.

World Finance: And what are the latest trends in the retail banking environment in Brunei?

Pierre Imhof: The Brunei retail market is, for banks, quite sophisticated. Bruneians are wealthy. They travel. They know what’s happening all around the world. So we have to be always very advanced in terms of our offer of products in the retail segment.

We are the first bank, many years ago, to offer internet banking services; and mobile banking is an area where we move fast, and where we are developing strongly our presence.

And in Brunei we have been also the first bank to launch PayWave, this new technology: our clients like to tap, pay, and go.

These are technologies that we are using more and more in Brunei for our retail clients.

World Finance: Pierre, thank you very much.

Pierre Imhof: Thank you.

Brunei’s stock exchange signals more global approach to diversification

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Brunei’s stock exchange is scheduled to open later this year, sparking renewed international interest in the small – but wealthy – island nation. The initiative should help the government’s ongoing efforts to diversify the economy. Baiduri Bank’s Pierre Imhof explains the progress that authorities have made towards launch, and what the stock exchange represents for the future of Brunei.

Watch the rest of our interview with Pierre Imhof here.

World Finance: I’m with Pierre Imhof, CEO of Baiduri Bank, and we’re discussing Bruneian industry.

What’s the latest on the development of the stock exchange?

Pierre Imhof: The authorities are making significant progress, from what I understand, on the technical and the infrastructure aspect of developing a stock exchange. It’s a part of a more global approach that the country has to develop its capital markets activities. There is of course another aspect: if you have a stock exchange you need to have clients, so it’s important also that in parallel it attracts interest by companies to be listed.

World Finance: Brunei is the last ASEAN country to create its own stock exchange; what does it represent for the future of the economy?

Pierre Imhof: Brunei has the means to develop further its capital markets activities. There is already an Islamic product – sukuk, the equivalent of bonds – in Brunei. And I think that the objective is to create a bigger, more developed, and more diversified capital market environment. Which we, of course, support.

World Finance: Pierre, thank you.

Pierre Imhof: Thank you.

Afore XXI Banorte: we must set the path for the future of Mexico pensions

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2017 marks 20 years since Mexico reformed its pension system in line with World Bank recommendations. Twenty years ago there were no institutional investors; no asset managers. Today the country’s largest Afore is XXI Banorte, with assets under management worth $35bn. The business has worked hard to ensure its investors are focused on long-term targets, and embedded transparency in its investment process. CEO Juan Manuel Valle Pereña and CIO Sergio Mendez Centeno discuss the ambitions and philosophy of the company, and how Afore XXI Banorte became the first pensions provider to pass the Mexican regulator’s new benchmarking process.

World Finance: You’ve been leading Mexico’s pensions industry since 2014; how have you been maintaining your lead?

Juan Manuel Valle Pereña: It is important to put in context that before the pension system reform, there were no institutional investors in Mexico. There were no asset managers. So in the work we have been doing, it’s not only something that we have to do, because we are the largest – we have to be the ones setting the path towards the future.

One of the first challenges is to be able to put together a team that understands the long-term strategy behind asset management. We have to educate the people saving that the long-term strategy is what they should expect to look after. And that there’s no better alternative for them in the longer term than investing their resources through the pension system.

World Finance: You were the first Afore to gain approval from the pension regulator’s new benchmarking process. Can you talk me through this idea? What was the motivation behind it?

Sergio Mendez Centeno: Having a benchmark, the funds have a guideline. Let me put it that way, you know: a target, from which you cannot be distracted, and you can put your goals in the long-term.

The benchmark comes from an exercise; in the case of Afore XXI Banorte, we hired external advisors in order to create this benchmark, that comes from an optimisation process. Utilising the full investment regime, which allows us to invest from fixed-income locally, to alternatives abroad and locally. And we used capital market assumptions in order to find the right portfolio, the right benchmark, the right guideline.

So right now we have this guideline, that includes also our investment philosophy, and includes the way that we assess risk. And it’s key to be transparent. The benchmark helps you in order to do that, because you don’t have to lose your long-term target because of short-term risk.

So we are always in touch with the people who want to have information, in order to give them transparency. And to explain how the portfolio’s working.

World Finance: On the subject of transparency, as you expanded your alternative investments portfolio, you really embedded transparency into that process. Tell me more.

Sergio Mendez Centeno: Our targets are well known. We explain to everyone in the market, we’re saying: what are we looking for? And what are the strategies that we are trying to build in order to create the alternative portfolios.

So, the manager goes onto the internet, and then they file all the information there. All the things that are required, in order to be accepted.

Then the analyst starts the process. And they start discussions with the manager, doing background checks, how the manager’s doing, how much money, what is the pipeline?

Then, we have legal, we have compliance, we have CEO, CIO. We have analysts discussing if that is the right manager to give money to in order to create the alternative strategies that we are looking for.

So at the end, what we do is, we obtain the authorisation from the investment community to say, yes: this is the right strategy, this is the right manager, this is the right amount of money that we want to give to the manager. So now we can proceed to invest with them.

World Finance: So tell me more about your investment philosophy.

Sergio Mendez Centeno: First we need to fully use the investment regime. That is important. Because it you utilise the investment regime that goes from fixed-income to alternatives, you will have a very good long-term diversification.

After that is to assess which part of the investment cycle we are in. Internationally, because we have a portfolio that allows international investments. Then, finding the right vehicle, in order to better capitalise.

So, the investment philosophy at the end is very macro-oriented. And it’s something that will be exactly the same in an expansionary cycle, as in down cycles.

World Finance: And looking ahead, what challenges do you need to overcome?

Juan Manuel Valle Pereña: The first one is the consolidation of the team. In the structure, in the way we work, and in the people, in the individuals – although they have a lot of experience, they have not been working together for a long time. So, you need to consolidate that team for everything to work perfectly.

Second: we need to take full advantage of what the investment regime allows us. Particularly in our investments abroad, and in alternatives. So we are undertaking now a new mandate on US equities, and also commodities. So during the year we should go out and look for the best managers, in both cases.

I think voluntary savings is a key element. Today we mostly deal with mandatory contributions. And that’s a challenge. People in many countries are not having enough resources for their retirement: we have to make them understand that they need to save. So, voluntary savings is a key element for everyone.

World Finance: Juan Manuel, Sergio: thank you.

Juan Manuel Valle Pereña: Thank you very much, Paul.

Sergio Mendez Centeno: Thank you.

Bancomext’s extra $700m to support Mexico’s IoT and creative industries

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In August 2016, Bancomext issued $700m in tier two subordinated preferred capital notes, to shore up its business of helping Mexico’s exporters improve the country’s foreign trade prospects. CEO Francisco González and CFO Miguel Siliceo explain foreign trade’s significance as the engine of Mexico’s economy and Bancomext’s five goals to develop it – and discuss the bank’s innovative bond issuance.

World Finance: How important is foreign trade to Mexico’s economy?

Francisco González: Foreign trade is really the engine that moves the country. It’s 60 percent of the GDP. Mexico is double the size of all the manufacturing of central and south America together. It’s a huge manufacturing factory.

As a development bank we have very good collaboration with the financial institutions of Mexico. We work with SMEs via these institutions. And what we offer is guarantees, for example, to help banks give loans to those companies, with a better interest rate, lowering the risk, helping to perform in a better way.

World Finance: Bancomext’s mission is to expand and develop Mexico’s foreign trade, and you’ve broken that mission down into five goals?

Francisco González: That’s right. The first one is to promote exports; to promote Mexican companies selling goods and services abroad.

The second one is internationalisation of Mexican companies. The footprint of Mexican companies worldwide is increasing. We are, for example, the number one investor in Ecuador. Number one in Spain, after the European Union. One of the three top investors in the Philippines.

The third one is increasing the value chain and competitive possibilities for Mexican companies: improving the capital expenditures, for example.

Then, Mexico’s really moving also in foreign direct investment, so we can bring more and more anchors to Mexico, like the automotive industry.

The last one is also to increase the possibilities of services like tourism, like IT, and others, so we can have a healthy economy; not only in manufacturing, but also in the service arena.

World Finance: Miguel, turning to your recent issuance: what drove Bancomext to expand your capital in this way?

Miguel Siliceo: When a government institution like ourselves requires capital, the injection of capital that’s the most straightforward mechanism is to have an injection from the owner: from the government, in pesos.

In our case, we were talking to our authorities, analysing different alternatives.

We were able to launch a transaction, a tier two transaction of subordinated debt, that according to our records is the first time that a public bank accessed this particular kind of transaction.

The positive effect for our bank was basically twofold. On one hand, we were able to increase our capital from 11.4 percent to 19 percent. On the other side, considering that 70 percent of our assets are in dollars, when we have the injection of capital in dollar terms, we offset any devaluation, or any movement, from the exchange rate.

World Finance: It was highly successful; what made the issuance such a success?

Miguel Siliceo: First was innovation: it has never been done before. Second was a strong support from the Mexican authorities, from the National Banking Commission of Mexico, from the central bank, and investor banks who helped us launch the transaction.

What we did, in coordination with our banks, was launch the transaction in a one-day roadshow. Five different teams in London, New York, LA, Boston and Mexico.

Fortunately the markets opened very strong for our favour. We initially offered $500m. We had a demand of almost $3.8bn – eight times the demand for that particular bond. We had participation of about 220 different investors. And we were able to increase from $500m to $700m, because that was particularly the number that we were looking for.

World Finance: So Francisco: what’s next for Bancomext?

Francisco González: We’re looking in this troubling worldwide economy to fulfil all the requirements of the Mexican companies. We have to support them, for example, with factoring and letters of credit, to all the countries in which they have trade.

The idea is not to stay only in the area of manufacturing, in services and tourism, but to go beyond. We’re looking for example for medical tourism. For the telecom area. We are really really interested in developing the industry 4.0, with all the IoT, internet of things. This has to do also with software, it has to do also with creative industries.

And we have to continue developing these areas, but not leaving the actual manufacturing companies alone. We have to be with them in new trades, new experiences, new countries. And in this sense we are very happy to be behind Mexican exporters.

World Finance: Francisco, Miguel: thank you very much.

Miguel Siliceo: Thank you very much, Paul.

Francisco González: Paul, thank you very much.

Maybank Ageas CEO: Etiqa well positioned in ASEAN insurance industry

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With a footing in nine of the 10 ASEAN nations, Maybank and its insurance and takaful arm Etiqa are well positioned to benefit from the AEC’s standardised financial framework. Kamaludin Ahmad, CEO of Maybank Ageas Holdings, explains the challenges that Etiqa currently faces expanding overseas, and how ASEAN integration ought to improve matters – if it ever actually happens. He also discusses Maybank’s mission to humanise financial services across Asia, and the advantages to Etiqa of being part of such a sizeable banking group.

World Finance: Kamaludin, what challenges does Etiqa currently face expanding overseas?

Kamaludin Ahmad: The challenges that we are facing are mainly finding the right partner.

For the most part, all the countries’ regulators won’t allow you to come in and have a 100 percent stake in local operations. And most of the countries are not issuing new licences.

But really when you talk about ASEAN, there are five countries that are the most significant, which is Singapore, Malaysia, Thailand, Indonesia and the Philippines. Vietnam is there, but there’s still some challenges.

There’s a bit of challenge going into Indonesia. The Philippines is relatively open. Thailand is quite open, but you cannot have a majority stake.

World Finance: How will the ASEAN Economic Community’s simplification of financial services improve things, and what’s the timeline?

Kamaludin Ahmad: That will definitely improve things, but the only set back that I’m seeing is, it has not been progressing as fast as we had hoped for. Especially in the financial services industry.

All the countries are pretty cautious about opening up. And when that happens it will make things a lot easier. In terms of timeline, I’m not seeing that happening in the next two years, at least. Maybe three to five years.

World Finance: Your parent company Maybank already operates across the ASEAN region – what advantage does this give you over competitors?

Kamaludin Ahmad: I think the main advantage of being part of this pretty sizeable banking group is that they have a lot of presence everywhere, and we always have the first right of refusal.

But that doesn’t mean that everything’s to our advantage, in the sense that we get everything inexpensively. It’s more: having the access to discussion, access to distribution, and so on.

In Malaysia we believe insurance and takaful is about helping people. We try to inculcate that in every employee in the organisation.

And by having that message, the staff start to do things that they see – if I do this, will it be helpful to the public? An example is, in our claims department, they look on social media and media feeds to check for accident cases. And if they find out there are casualties, they start checking if these are our customers or not. And if they’re our customers, they reach out to the family members and deliver the compensation. We make sure that we’re as proactive as possible.

World Finance: What challenges and what growth can we expect in the Asian insurance industry in 2017?

Kamaludin Ahmad: The growth in demand has really been in medical and retirement. But the challenge has always been, how do you price this side? How do you cope with inflation – medical inflation – and so on. But the demand is going to be there, and you don’t see that slowing down.

On the general, property and casualty side, there’s a lot of infrastructure-driven demand. So we see that will continue for at least the next two years. Interest in Malaysia, Indonesia, the Philippines, even Vietnam, they’re building infrastructure. So we see a lot of growth on the general side because of that.

On the life side the challenge is more the return that we can give back to the customer. So that’s been the challenge, and we foresee that to be even more challenging in the coming years.

World Finance: Kamaludin, thank you very much.

 

Financial inclusion and CSR are central to Sharia – Jordan Islamic Bank

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“Inclusive growth is the world’s best hope.” This was a key message coming out of Davos, with financial inclusion continuing at the top of the World Economic Forum’s agenda. HE Mr Musa Shihadeh, CEO and General Manager of Jordan Islamic Bank, discusses how his bank is furthering this mission in the country. Improving the lives for all people is central to Sharia principles, he explains, which his bank is proud to promote. One particularly forward-looking aspect of Jordan Islamic Bank’s work is providing finance for solar energy – both to help businesses grow and for individuals.

World Finance: “Inclusive growth is the world’s best hope.” This was a key message coming out of Davos, with financial inclusion continuing at the top of the World Economic Forum’s agenda. Joining me is HE Mr Musa Shihadeh.

How important is improving financial inclusion for Jordan, and what is Jordan Islamic Bank doing around this?

HE Mr Musa Shihadeh: Financial inclusion in Jordan is considered a pillar, as it is in the international agenda. It improves poverty, improves unemployment, and increases productivity. And it leads to stable financials in the country.

Jordan Islamic Bank is doing this in the literacy of the people – SMEs and individuals – by offering services and products that meet their needs and help their businesses.

We try in our bank to be very near to those people who need our activities, through our branches and cash offices and ATMs.

World Finance: Jordan as you say does need to work to improve its employment figures; supporting employment means supporting businesses – which particular industries are you supporting through finance?

HE Mr Musa Shihadeh: We do finance SMEs. Giving financing easy and transparent, and low income sometimes, in financing special persons who have their practices and need financing. We finance SMEs, we finance goods, we finance the jobs of the people who make some personal activities that improve their income. And we go to finance, you know, solar systems…

World Finance: Tell me more about the work you’re doing in the renewable energy sector; why is this important?

HE Mr Musa Shihadeh: Yeah: energy sector, we put a plan for in our bank, a five year plan, in order to enhance the solar system. Jordan has 300 sunny days, and the problem of Jordan is importing oil – it’s not an oil country.

We at the bank, for example, started our 18 branches now out of 70 branches on solar system. We have two stations, in order to furnish our branches. We offer to our customers financing for the solar system for their machinery in order to help them. And this will help the environment as well as help the government in not importing oil, which is a burden on our budget in Jordan.

World Finance: Jordan Islamic Bank is a pioneer in corporate social responsibility in the country; what are you doing in this area?

HE Mr Musa Shihadeh: Jordan Islamic Bank you know, applies Sharia. And Sharia takes care of not only Jordanian people – Muslims or non-Muslims – it takes care of every human being. Part of our mission is to help those people who need it.

For example, we give free loans for people who want to marry, or pay tuitions, or even to go to hospital.

We have our own collective scheme for people who deal with our bank, in case they have insolvency, or in case of death or disability. This fund which we raised through those people and through the bank help them pay their debt and not to destroy their family.

That’s what we do on social responsibility.

World Finance: Jordan of course is in quite a difficult neighbourhood – how is that impacting the economy, and your bank?

HE Mr Musa Shihadeh: The economy now is troubled, with the Syrian problem, Iraqi problem, Yemeni problem – which surrounds Jordan. And it gives us in Jordan volatility in enhancing our business.

Therefore the government, the banking system, as well as our bank, try always to stop the effects that could happen in the country, as well as the Jordan Islamic banking sector. And of course trying by our governance and the rules we apply. The regulations the government help in furthering their business to comply with this volatility we are living in.

World Finance: Finally, what are your aspirations for Jordan Islamic Bank’s future?

HE Mr Musa Shihadeh: We look onward, always, for our customers. We hope that we render them that facilities and services, that meet their aspiration. And high technological application, in order to let them feel that they are working in the western countries or another place. That’s part of our mission. Relying on our staff, our people, and our management as well.

World Finance: Musa Shihadeh, thank you very much.

HE Mr Musa Shihadeh: Thank you very much.

Zurich Turkey launches first retail cyber protection insurance product

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In 2016 there were a number of huge leaks of personal data of Turkish citizens online. It’s created a massive demand for products to insure individuals and businesses from losses caused by cyber crime. Yılmaz Yıldız, CEO of Zurich Turkey, outlines the first product they’ve brought to market to address this demand. Combining anti-virus software, an active web radar that searches for criminals using customers’ data, and compensation for losses, it’s been highly successful so far. If you’re starting here, you can view the other parts of our conversation with Yılmaz Yıldız, which cover the global trends likely to affect Turkey’s economy, and the Turkish insurance sector’s potential for even stronger growth.

World Finance: In 2016, there were a number of huge leaks of personal data of Turkish citizens online. I’m with Yılmaz Yıldız, CEO of Zurich Turkey.

What are the biggest cyber-risk concerns for consumers, and how are you addressing these?

Yılmaz Yıldız: We have launched the first retail cyber protection products. And what that does in fact is, first, we have to prevent cyber attack from happening in the first place. So we provide the customer an anti-virus program; and secondly what we call a web radar.

When you register, you also input the data that you want protected. Let’s assume that you ask it to check your ID information. Once it’s input and activated, it checks the entire cyber world. And if anybody’s trying to use your ID number for any purpose, anywhere in the entire cyberspace, it will let you know.

On top of that, your passwords. If anybody steals your passwords and does a transaction, you will be compensated if you have our product. And then if your physical IDs are lost for any reason, that is covered too. Whether your identity is on your ID card or in cyberspace, it has to be protected.

So we launched that a couple of months ago, and there’s just incredible demand for it, because clearly individuals feel vulnerable. SMEs even more so. In fact, Zurich Insurance group does SME surveys each year to understand what concerns SMEs have. And 85 percent say cybersecurity is one of their top concerns.

World Finance: What security risks are SMEs seeing, specifically?

Yılmaz Yıldız: The most common one is ransomware. What it does is, you have your data stored somewhere. Ransomware basically prevents you from accessing your company information; and they ask for a ransom.

If you can prevent that through anti-virus programs, that’s a big one. So it’s first a preventative tool, and secondly it compensates you for any of the losses that will happen, within the limits.

And there are other reasons – ransomware is one, loss of data, passwords, customer data loss. So these are the things that we know now. But surely cyber attackers will be more creative, and we’ll need to be even more creative to protect our customers from such attacks.

World Finance: Yılmaz Yıldız; thank you very much.

Yılmaz Yıldız: Thank you.

Turkey’s insurance industry has $150bn potential – Zurich Turkey CEO

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Yılmaz Yıldız, CEO of Zurich Turkey, breaks down the country’s $30bn insurance industry. Turkey has quite low insurance penetration compared with EU nations, so its potential is huge – which is why it’s been attracting so much investment from Europe, Asia, and the US, and grown roughly 10-15 percent per annum over the last decade. He also explains how the number of young people in Turkey is putting the industry ahead of the digital transformation curve. If you’re starting here, you should go back to find out how global economic trends will be affecting Turkey’s overall economy – and hence the P&C insurance segment. And watch the rest of our conversation with Yılmaz Yıldız, on insuring against cyber-risks.

World Finance: Let’s move on to Turkey’s insurance industry. Currently worth $30bn; how does that break down?

Yılmaz Yıldız: Yes, it’s a $30bn market that has grown roughly 10-15 percent per annum in the last decade. And it has three segments: life, pensions, and non-life – property and casualty.

The life part is mostly credit life, and it’s relatively small, about $1.5bn. Private pension part is the big part: more than six million citizens are in, and the funds under management is around $17bn now, and it’s growing around 30-35 percent per annum.

The third big segment is the non-life property and casualty. Again, very high growth rates; but that part is very much related to what happens on the economy, investments, exports, imports. So as the economy grows, the P&C part is very much sensitive to that. And when the growth slows down – again, it is impacted.

World Finance: So where in that breakdown is Zurich operating, and what’s been your strategy so far?

Yılmaz Yıldız: Zurich is mainly a non-life property and casualty player in Turkey; entered Turkey in 2008 through an acquisition, and since then we have invested over $500m to the Turkish non-life property and casualty market.

Our focus is on personal lines and SMEs. Those two make up roughly 80 percent of our base.

We’re one of the leaders in bancassurance and also on the commercial corporate side; and one of the most profitable as well.

World Finance: Turkey has quite low insurance penetration compared with EU nations, for example. How much more potential is there?

Yılmaz Yıldız: If you take Turkey’s average – one, 1.5 percent of GDP – in terms of premiums. If you look at EU averages, it could increase five-fold. It’s huge. So we’re talking about from $30bn to $150bn. That’s just to reach the average. And that’s one of the reasons why there’s been so much investment in the Turkish insurance sector from Europe, Asia, and the US.

World Finance: Let’s skip back to the number of young people in Turkey. Is that putting you ahead of the curve on the digital transformation journey?

Yılmaz Yıldız: Absolutely. There are 45 million internet banking users, 20 million mobile banking users, three million SMEs conducting their business online. So it’s a huge market: the physical and the digital – you cannot separate it anymore, it is one.

So you have to kind of reinvent how your company operates. We have to make it work seamlessly and completely integrated. That requires omni-channel approach, in terms of how you sell your products. It requires omni-channel customer services.

So it’s a big opportunity. It’s happening everywhere. The speed may be faster or slower, depending on what your customers and distribution channel demands. We talk about Turkey – the demand is there! So we have to move very fast, and that’s exactly what we’re doing.

Yılmaz Yıldız: What Trump’s wall means for emerging economies

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It’s the bridge between Europe and Asia, enjoying one of the highest average growth rates in the OECD over the last few years. Despite domestic and international political issues, Turkey’s economic performance is still promising. Yılmaz Yıldız, CEO of Zurich Turkey, discusses the big global developments that may disrupt Turkey’s growth – and the growth of other emerging economies. Politics in the US and EU, US interest rates, and rising commodity prices are the key issues to look out for. Click through to watch the rest of our conversation with Yılmaz Yıldız, where we dive deeper into Turkey’s insurance industry, and find out how Zurich Turkey is tackling cyber risks for consumers and businesses alike.

World Finance: It’s the bridge between Europe and Asia, enjoying one of the highest average growth rates in the OECD over the last few years. Despite domestic and international political issues, Turkey’s economic performance is still promising. Joining me to explore Turkey further: Yılmaz Yıldız.

Let’s talk about some of those big, global developments that you’re seeing.

Yılmaz Yıldız: Many things! 2016 has been a very difficult year, and 2017 seems that it will be a very, very difficult year.

Especially important and relevant for the emerging markets are three major trends. That’s one: politics. And interestingly, politics in the developed world, more than the emerging world.

Secondly: Fed and what will happen in the US. And third: oil and commodity prices.

Politics will determine what will happen on the economic front. What Trump will do, especially vis a vis Russia, China, Iran, NATO, all of the global institutions; will have major impact. And on the other side, which is very, very important for emerging markets, is what Trump will do on the economics. Now what we hear is fiscal stimulus: basically heavy investment in infrastructure to generate employment. That will create roughly $4tr of new investments, which will mean the budget deficit will increase, Fed will need to take action, interest rates in the US will go up.

What that means is higher dollars, the currencies in emerging markets will depreciate. And it’s a major negative development for all of the emerging markets, including Turkey.

World Finance: What’s the outlook for Turkey specifically?

Yılmaz Yıldız: Turkey has a lot of advantages. The difficulty about Turkey is being in a rough neighbourhood. So what happens in Syria, what happens with the refugee problems, will have an impact. And that will kind of determine the context.

On the economic front, Turkey has a lot of strengths. It’s a very resilient economy, first of all. Demographics: very healthy. Very strong, very diversified economy. And if you look at the past decade, income per head quadrupled.

The biggest strength I think is the fiscal strength. Debt to GDP is around 30, 35 percent; and budget deficit is around one percent. One of the lowest within Europe and emerging markets. That gives the government room to manoeuvre for fiscal stimulus, and to increase investments if and when necessary.

On the negative side, the main point is the current account deficit. Turkey has a sizeable current account deficit, being a net oil and commodity importer. And when the interest rates in the US go up, and dollar strengthens; plus the increase in oil and natural gas prices, creates problems for current account deficit.

And EU developments – what happens with Brexit, and what happens with all those elections – will have a major impact. Because Turkey’s biggest trading partner is the EU. And related to that, the foreign direct investment will be very much shaped by the global environment.

So, Turkey overall has a very resilient, very strong position. The current account deficit and foreign direct investment to finance the growth is something that will need to be watched very carefully, very closely.

Kuwait International Bank remains “dedicated to serving the greater good”

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In 2017, Kuwait International Bank will be celebrating 10 years since it transformed into a fully Sharia-compliant bank. Nawaf Najia, Head of Corporate Communications for the bank, explains how important giving back to the community is to KIB’s vision of Islamic finance. He expands on the bank’s initiatives around financial literacy, religious education, and supporting local champions. If you’re starting here, do go back and watch the first half of our interview with Nawaf, where he addresses the importance of investing in local talent to ensure the banking industry in Kuwait – and across the GCC – is sustainable and innovative.

World Finance: This year Kuwait International Bank will be celebrating 10 years since it transformed into a fully Sharia-compliant bank: how important is giving back to the community to KIB’s vision of Islamic finance?

Nawaf Najia: Well, this is a key element that makes Islamic banking such a unique and successful model: we have a responsibility not only to provide the best financial solutions, but also the best social initiatives and community programmes that truly serve all segments of our community.

We remain dedicated to serving the greater good of the community, and we are also committed to creating a sustainable model that strives to achieve not only profitability but social development as well.

World Finance: Central to your CSR programme is developing financial literacy.

Nawaf Najia: Yes, financial literacy is the flagship component of our social responsibility programme. We seek to draw upon long and extensive industry expertise in order to spread financial awareness and economic education, starting at an early age.

Over the past few years, we have developed a number of financial literacy initiatives, including an ongoing calendar of educational school visits and interactive workshops. We are currently working on developing and implementing a number of new initiatives and platforms in 2017. Our goal is to ultimately spread financial literacy to every segment of the community.

World Finance: Promoting spirituality is another core part of your CSR activity – including encouraging charitable giving during Ramadan.

Nawaf Najia: I believe as an Islamic financial institution, it is only natural that we devote special attention to the area of religious education.

Throughout the year, we have organised and supported numerous religious programmes and humanitarian initiatives, targeting different segments of the community.

Through these programmes, KIB seeks to strengthen Islamic values and principles across society, encouraging greater spirituality in everyday life.

The Holy Month of Ramadan occupies a huge part of our religious programme, and we seek to promote a culture of generosity and giving during the month.

World Finance: You’re also committed to supporting local champions and talents in Kuwait – how are you achieving this?

Nawaf Najia: Yes: we believe that there is a wealth of talent and creativity in Kuwait, which simply requires appropriate support and encouragement in order to prosper.

We are committed to investing in these talented professionals, gifted athletes, and creative individuals; and offering them full support when they take part in various local and international events.

Not just that; throughout the year, we participate in sponsoring countless youth-focused events, lending our financial and moral support to this key segment of the population.

World Finance: Nawaf, thank you very much.

Nawaf Najia: Thank you.

Investing in home-grown talent is crucial for Islamic finance in GCC – KIB

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Kuwait International Bank posted profits of $44m in Q3 2016 – 15 percent up year on year. Combined with an upgrade from Fitch Ratings, it’s testament to the success of the bank’s strategy over recent years. Nawaf Najia, Head of Corporate Communications for KIB, explains how despite the extremely competitive market, instability in the energy sector, and a volatile economic landscape, the bank has continued to thrive. Please click through to watch the second half of our conversation with Nawaf, where he discusses Kuwait International Bank’s corporate social responsibility programme.

World Finance: Kuwait International Bank posted profits of $44m in Q3 2016 – 15 percent up year on year. Combined with an upgrade from Fitch Ratings, it’s testament to the success of the bank’s strategy over recent years. Joining me is Nawaf Najia.

How competitive is the Islamic finance industry in the GCC today?

Nawaf Najia: Well, the Islamic finance sector is simply put more competitive today than ever before.

In spite of a number of challenges – including the ongoing instability in the energy sector and the changing global economic landscape – the banking sector in Kuwait and the GCC is continuing to thrive.

The Islamic banking sector in particular continues to grow and develop at a break-neck pace around the region and in Kuwait especially. The demand for sharia compliant banking solutions has reached a new high, and we are seeing a definite increase in the number of Islamic banking institutions across the whole region.

World Finance: How has this shaped the strategy of the bank?

Nawaf Najia: The intense competition, coupled with the ever-increasing demand of Islamic banking solutions, necessitated that we adopt a more aggressive approach with a focused strategic outlook, in order to elevate our presence within the industry and augment our competitive standing.

We are very proud of this position that we have reached in the regional Islamic banking sector, during the years as a real estate -dedicated bank in Kuwait, and then as a full-service Islamic bank.

We are determined today more than ever before to push even further, to further solidify our position as a leading Islamic financial institution.

World Finance: And you’ve certainly achieved that with your latest quarterly results.

Nawaf Najia: Yes: to be honest, 2016 proved to be a very successful year for KIB on all fronts.

We were honoured to have received many prestigious regional and international awards, which have reflected our continuing success and achievements across all areas of our operations.

Over the past few years in particular, KIB has been delivering a consistently solid performance and has continuously proven to be one of the most stable financial institutions in the region.

Much of our continued success can be attributed to our forward-thinking strategy and visionary outlook. This has been a key driving force pushing us to continuously develop our offerings, in order to provide customers with innovative, contemporary, and market-leading Islamic banking solutions.

The guidance of our Chairman, Sheikh Mohamed Al-Jarrah Al Sabah, along with our board of directors, has been a crucial factor in achieving this continued success, as well as the ongoing support and guidance provided by the Central Bank of Kuwait.

World Finance: I want to talk specifically about one area where Kuwait International Bank is excelling in the GCC, which is labour nationalisation. Why is this important to the bank?

Nawaf Najia: Well, as a leading financial national institution, we do firmly believe that we have a duty and responsibility to support the national workforce.

Investing in home-grown talent and building local capacity is crucial to ensure a sustainable, healthy future for this industry. This is especially important in light of the fact that the banking sector remains one of the main pillars of the Kuwaiti economy.

Our goal is to continuously attract aspiring young Kuwaiti professionals – of both genders – to pursue careers in the banking sector in an effort to drive innovation and development within this industry.

From 65th to 4th: how Access Bank climbed the ranks of Nigeria’s banks

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In 2002, two Nigerian entrepreneurs acquired a small commercial bank, ranked 65th out of the 89 banks in the country. Today that bank is the fourth largest commercial bank in Nigeria. Herbert Wigwe, group managing director and CEO of Access Bank, tells his story. From assembling a management team that would help foster the institution’s credibility, to establishing targets on sustainability, financial inclusion, and female empowerment, he explains the strategy that has helped transform the bank. His aspiration? To make Access Bank the world’s most respected African bank, and to help the people of Nigeria expand and diversify their economy.

World Finance: In 2002, two Nigerian entrepreneurs acquired a small commercial bank, ranked 65th out of the 89 banks in the country. Today that bank is the fourth largest commercial bank in Nigeria. With me to tell his story: Herbert Wigwe, group managing director and CEO of Access Bank.

Take me back to day one. What’s your first priority when you begin a transformational project like this?

Herbert Wigwe: The first and most important thing for us was to put together a strong, credible, and competent management team. You need to have people who first of all, have the same value system. You also need to find those who are somewhat entrepreneurial. But most importantly, you need to have those who have the ingredients to understand the aspirations of the enterprise, and the vision of the business.

We had to build up the brand, we had to look for institutions to partner with, to give more credibility to the institution. And we realised that the pace of growth was such that we had to pay specific attention to issues around risk management and compliance. So that was another aspect that we had to look at.

The great thing was that, given our background as professionals, and where we had worked, and what we had done before: we had large institutions like the IFC come and rally behind us, to support us in creating what I can only refer to as another oasis of sanity, because they saw young people coming out of Africa, out of Nigeria, who would build world class institutions.

World Finance: So you have the partnerships, you have the grand strategy for the bank. But how do you get your workforce united behind your vision?

Herbert Wigwe: The first thing is to share it with them. It’s not a vision that comes from the top down; you have to get everybody to believe in it, and to feel it, and to live it. People must share the vision of the bank. People must share the values of the bank. That’s where you get everybody energised, to believe in what we’re truly trying to do.

Initially it may appear to be just routine, but the more they do it, the more they share the values – before any presentation – it sticks to their brain. Anything they’re doing, they’re asking themselves: how does this contribute to becoming the world’s most respected African bank?

Once you have people thinking in the same direction, it makes it very easy for you to determine where the institution is going, and to align all the forces in one direction.

World Finance: As you say, your current target is to become the world’s most respected African bank. Tied into that you have targets on sustainability, on empowering women in your workforce. Tell me more about the work you’re doing there.

Herbert Wigwe: A lot of work is being done, and particularly with respect to issues of sustainability and gender empowerment. And this started in 2005. At that time most people were not paying attention to issues around sustainability in the continent, not to talk of Nigeria.

First of all we started the gender empowerment programme, where we worked with the IFC to provide loans to women. And the idea was to help support the girl-child, as well as female entrepreneurs.

In 2012 we took it to a totally different level, and we set up what we refer to as the women banking group, to support all aspects of female businesses. So whether it’s the female professional, or it’s an aspiring female entrepreneur, we started supporting them all through.

Now, most of the SMEs in Africa are owned and run by women. And by excluding them, it’s affecting the overall size of the economy. You’d be amazed at how much impact it has. And those things are so important, because you get a woman to understand: you’ve trained an entire family.

We are determined to ensure that we lead the aspects of financial inclusion, as far as women are concerned. We are determined to ensure greater gender balance and equality between women and men. And we’re determined to increase the amount of support we give to female entrepreneurs.

World Finance: This seems to be really core to your personal values: helping the people of your country.

Herbert Wigwe: Absolutely. When we started our careers, we had people who built us, who supported us, who trained us. One of the things we realised is that as we have a large number of educated Nigerians, they don’t have the opportunity to create the businesses that they want to create.

In sub-saharan Africa about 50 percent of the economy is outside of the formal sector. What this serves to do is to bring most of this into the formal sector. The more you support SMEs, the more you support a growth in your economy. So it sits pretty well with some of the things the central bank is doing, but as market participants, we need to actually take the charge, teaming up with all of our colleagues to help drive financial inclusion across the entire system.

World Finance: We’re filming this in December 2016, a time of reflection and review of the year. But we’re just weeks away from 2017, so: what’s your agenda, what are you hoping to achieve next year?

Herbert Wigwe: I think it’s going to be a very interesting year. The Nigerian economy is going through its own challenges, but I believe that in 2017, given the various efforts the government is coming up with, the economy should begin to turn around.

Now, for us as an institution, we need to identify the opportunities in 2017 for us to achieve our own aspirations. But in all of that we need to support the government in terms of diversifying the economy, to ensure that in the future Nigeria does not suffer from the same kind of problem that has gotten us the way it is, which is over-reliance on oil.

So identifying opportunities in exports. Identifying opportunities that can lead to local creation of some of the items that we need to import on a sustainable basis, are areas that we basically need to focus on. We need to work together to create the much more diversified economy that will basically continue to maintain us as the pride of Africa, the largest economy in the continent.

World Finance: Herbert Wigwe, thank you very much.

Herbert Wigwe: Thank you very much Paul.

BIDV Securities: Reform still needed in Vietnam’s state-owned enterprises

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Vietnam may be the biggest winner from the TPP trade deal, but necessary reforms of its state-owned enterprises have been, to be diplomatic, gradual. Đỗ Huy Hoài, CEO of one of Vietnams oldest securities firms, BIDV Securities, explains the history of Vietnam’s state-owned enterprises, and what still needs to be achieved. He also discusses the challenges that still need to be eased for foreign investors, and points towards the areas of Vietnam’s economy that are attracting the most interest – such as hi-tech, finance and post-harvest technology. This video is in Vietnamese with English subtitles.

World Finance: Vietnam may be the biggest winner from the TPP trade deal, but necessary reforms of it state owned enterprises have been, to be diplomatic, gradual. Joining me is Đỗ Huy Hoài from one of Vietnams oldest securities firms, BIDV Securities.

Mr Hoài – explain to me the history of Vietnam’s state-owned enterprises and what still needs to be achieved.

Đỗ Huy Hoài: Firstly, as to how it developed, until 1986, Vietnam had been a centrally-planned economy. Therefore, all Vietnamese enterprises were state-owned. From 1986 on, because this model exhibited a number of limitations, the Vietnamese government decided to transition to a market-orientated economy.

In this transformation, 6,000 state-owned enterprises have undergone equitisation and been transformed into joint-stock companies. Up to now, 4,500 out of 6,000 such enterprises have completed their equitisation processes. Equitisation needs to be sped up and implemented continuously.

In addition, while some state-owned enterprises, which are successful in certain industries attract the market’s attention, others investing in undeveloped industries fail to do so. Moreover, in spite of the government’s decision, state-owned enterprises are not mentally ready for equitisation. This reluctance is an obstacle to adopting equitisation.

World Finance: What barriers or challenges are there for international investors? I understand there is some dissatisfaction with customs and tax authorities for example.

Đỗ Huy Hoài: Before 2015, customs duties and taxes were a problem; however, the Vietnamese government recognised this problem and implemented administrative reforms of customs duties and taxes. Following the reformation, Vietnamese procedures relating to customs duties and taxes started to comply with the common practices of ASEAN Six, and Vietnam is striving to bring customs and taxes into line with ASEAN Four in the near future.

We believe that with all of these achievements and with the progress yet to come, customs and tax procedures in Vietnam will be transformed from barriers into favourable conditions for promoting investment.

World Finance: What areas of the economy are seeing the most FDI activity?

Đỗ Huy Hoài: We have identified two trends during our activities. Regarding short-term investment, consumer goods and the retail industry are currently among the most attractive industries in the market.

With regard to long-term investment, however, industries such as hi-tech, finance and post harvest technology demonstrate tremendous potential. Recently, two ‘Silicon Valleys’ have been established in Ho Chi Minh City and Hanoi.

In Ho Chi Minh City, Intel has also been making investments in Vietnam for a number of years. In Hanoi, Samsung and Ricoh have also invested in large-scale projects and moved production to Vietnam.

World Finance: Finally, what changes can we expect to see in Vietnam’s markets in the coming year?

Đỗ Huy Hoài: The first change will relate to market structure; financial institutions will be founded. Vietnam must have financial institutions suitable for the modern economy, such as investment banks and refinance mortgage companies.

Secondly, in terms of market products, derivative products and bond markets must be put into practice. Thirdly, with regard to the market’s legal framework,

to come into line with the TPP and FTP agreements, Vietnam will have to make appropriate adjustments to its laws and regulations.

We expect that when the law on investment banking is enacted, it will promote the development of the stock market. We also hope that BSC will be one of the first companies to shift to this model under the law on investment banking in Vietnam.

World Finance: Đỗ Huy Hoài, thank you.

Adrienne Penta: Wealth managers must listen first to serve women better

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Today, more than 51 percent of US wealth is controlled by women. But of women with financial advisors, more than half feel their advisor doesn’t listen to them, or doesn’t understand them. Adrienne Penta, Executive Director of the Brown Brothers Harriman Centre for Women and Wealth, doesn’t think that the wealth management industry is failing at feminism – but wealth managers do sometimes forget the real value they bring to the table. She explains where things have gone wrong, and how wealth managers need to learn to listen again. She also explains the conversations the Centre for Women and Wealth is facilitating: at the intersection of wealth, family, philanthropy and legacy.

World Finance: Today, more than 51 percent of US wealth is controlled by women. But of women with financial advisors, more than half feel their advisor doesn’t listen to them, or doesn’t understand them. Joining me down the line is Adrienne Penta from Brown Brothers Harriman.

Adrienne – what’s going wrong? Is the wealth management industry failing at feminism?

Adrienne Penta: Paul, you’re right with the data. Women are controlling more wealth than ever before in the US. We know that they’re controlling 39 percent of investible assets in the US. But we know that they’re still not quite satisfied with what the wealth management industry is providing to them. And in particular they don’t think that their advisors understand their needs or are listening to them in the right ways.

Oftentimes – especially with younger advisors in our industry – sometimes we think that the value we bring to the table is the really smart information we have. Whether it’s market commentary or sophisticated tax planning. It’s not.

The value that we bring to a client’s situation is the ability to solve their hardest problems. And in our case those hardest problems are usually about wealth and family and how their achieve their values and their legacy. And so in order to do that, we have to start with listening and really understanding our clients’ perspectives, and what their issues are, and what keeps them up and night. And only then can we apply what we know to actually help our clients.

So it really starts with a client focus, and understanding their perspective.

World Finance: Rather than simply mansplain to them. It feels like it shouldn’t be revolutionary to say that wealth managers should listen to their clients – what’s gone wrong?

Adrienne Penta: I think you’re right, I hope you’re right, I think that listening is the foundation of our business, for sure.

And I think that this comes out of a very honest place actually. Because in the US and in the world, in fact, it’s only really within the last several decades that women have become substantial creators and decision-makers with respect to family wealth. So sometimes as human beings, we make assumptions when we’re sitting in front of clients about actually who makes the decisions, or who controls the wealth in a family.

And instead of jumping to conclusions, we need to be really intentional, and really thoughtful, about how we engage women, about how we serve them, about how we include them in conversations, and how we create an environment where all of our clients – and specifically women in this case – feel included and well served.

World Finance: BBH has established the centre for women and wealth to address these issues – what do you offer?

Adrienne Penta: So there’s two real offerings I think that come out of the centre for women and wealth. And the first is, we really want to create a community of women, a place where our female clients can find a group, a network, a tribe of likeminded women, so that they can have a community in which they can consult and discuss and think about the issues that matter most to them.

So we carry on a number of events throughout the year in a whole bunch of different places. And they are focused on content that we think is at the intersection of wealth and family and values. Because we find that our female clients – and many of our clients! – don’t want to focus on those issues in isolation. They want to have a more robust conversation about how all those things work together for them.

And the second is that we’re creating content insights, through women and wealth magazine, through what we’re publishing online, about women who are CEOs, who are founding companies, who are philanthropists, who are leading the way. Who are thinking really in-depth about family planning and philanthropy and legacy and engaging the next generation.

And I think what underlies the centre for women and wealth is a real commitment to make sure that we’re managing relationships with our clients in an effective way, that engages all of the stakeholders within the client family, because we believe that if we don’t have all stakeholders represented, then we actually don’t create as good solutions for families as we possibly could.

World Finance: As you say, women are taking a more holistic approach to managing their wealth: how does that change your work?

Adrienne Penta: So an example that I could give you here is that, we do a lot of estate planning. We work with our clients on making sure that their trusts and their estate planning and their tax planning is all very consistent. That their plan, when it comes to their estate and wealth transfer and philanthropy is in good shape, and is consistent with what we’re doing on the investment side.

One of the things that we’re focused on now is, how do we engage the next generation in those conversations? And how do we integrate values? How do I create a successful next generation in the presence of wealth? And how do I use my wealth to actually empower and to engage my children and my grandchildren, rather than make them feel isolated and burdened by that wealth.

Families that we work with want to have those conversations with their children about what does wealth mean, and how should it be used, and what is the intention behind it. But they don’t always have the tools to do that.

As advisors we see thousands of families, we see hundreds of wealth transfers. So through our experience we often have the tools, we have the best practices. We understand what in many cases makes families successful. So we are actually in the process of sharing and giving that information in a way that’s tangible and useable to the families that we work with, so they won’t feel that they don’t have the skillset, or they don’t have the tools to engage children, even adult children, in these conversations as stewards of family wealth.

World Finance: Adrienne, thank you very much.

Adrienne Penta: Thank you Paul, it’s been a pleasure.

Insurance liberalisation must strike delicate balance in Myanmar

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Insurance is normally a highly competitive industry, but in Myanmar – only recently opened to the international market – that competition is highly controlled. Nyo Myint, Vice Chairman of IKBZ Insurance, explains that although the monopoly of the state-owned Myanma Insurance has ended, the country’s 12 insurance companies are still relative novices. Myanmar’s insurance industry needs foreign insurers bringing in capital, expertise, and capacity – but instant liberalisation would demolish the domestic industry. He outlines the transition so far and suggests the next steps that Myanmar’s finance services regulator needs to take.

World Finance: Insurance is normally a highly competitive industry, but in Myanmar – only recently opened to the international market – that competition is highly controlled. Joining me is Nyo Myint, Vice Chairman of IKBZ Insurance.

Myanmar’s insurance sector is transitioning from a state controlled one – what’s the story so far?

Nyo Myint: The five decades -long monopoly of state-owned Myanma Insurance was ended, with the establishment of 12 insurance companies: six life insurers and six composite insurers; in 2013.

Myanmar’s insurance market still remains imbalanced and highly controlled, with state-owned Myanma Insurance as the dominant player.

However, there are now 24 foreign insurance companies and brokerage companies that have representative offices in Myanmar; among them are three companies that are allowed to provide insurance business within Myanmar’s Thilawa Special Economic Zones.

In terms of liberalisations, the initial crucial steps have been taken, and the existing conditions seem to be right for the accelerated development of Myanmar’s insurance sector.

World Finance: What are the challenges on the path to full liberalisation of the insurance industry?

Nyo Myint: At this point of time, the local insurance companies are novice, and need time to develop so that they can withstand competition.

Therefore, the whole process of liberalisation has to balance opening up the market enough to bring in capital, expertise, and capacity of foreign companies, without letting the local insurers feel threatened with the entry of the foreign companies in near future. It must be a step by step approach.

The regulatory body needs to exercise more freedom in terms of premium insurance products, the policy design, and premium pricing, in such a way in order to avoid price wars and substandard coverage when the market opens up.

World Finance: What legislation or regulation is needed to promote a healthy insurance industry?

Nyo Myint: The current regulatory body has agreed to make necessary amendments to existing policies.

For example, the existing co-insurance model shares all the risks among the local insurers. It is important for the local insurers to have a way of measuring their risks and mitigate them by having the umbrella protection of reinsurance.

Currently we are a tariff-based industry where price cannot be varied, leading to a uniform trend in pricing. The price needs to be determined with a focus on long-term sustainability.

A coordinated approach will not only help to price a product better, but also in maintaining adequate financial reserves of a company.

World Finance: What are Myanmar’s demographics, and what do they represent for the insurance industry?

Nyo Myint: Out of a 51.5 million population, more than 30 percent comprises the urban class, and the remaining 70 percent is a large rural population.

More than half of the population comes under the productive population age bracket, from 15 to 64 years. Having such a productive population, and with more insurance penetration as expected in the near future, it gives an opportunity to domestic players like us to explore and take advantage of the vast potential of this growing industry.

World Finance: Of course the big challenge for all industries in the country is ensuring a successful peace process?

Nyo Myint: The government is expected to urgently address a number of key challenges; and one of these is moving the peace process forward.

The signing of the Nationwide Ceasefire Agreement by all ethnic groups is a must to grab this opportunity.

This peace conference renders national development and human security a priority before anything else.

This will definitely benefit our industries in a way, since we operate through the length and breadth of the country.

World Finance: Nyo Myint, thank you very much.

Nyo Myint: Thank you very much.