Global Banking & Finance Review Issue 27 - Business & Finance Magazine

Issue 27

Mr. Dimantha Seneviratne Director/ Group Chief Executive Officer National Development Bank PLC - Sri Lanka PLUS / With Over a Hundred Years of History, Banco Mercantil Santa Cruz Leads the Way in Investing in Bolivia and its People

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EDITORS LETTER

FROM THE

Chairman and CEO Varun Sash

editor

Editor Wanda Rich email: wrich@gbafmag.com Web Development and Maintenance Anand Giri

Dear Readers’

Head of Distribution & Production Robert Mathew

Project Managers Megan Sash, Amanda Walker

Video Production and Journalist Phil Fothergill Graphic Designer Jessica Weisman-Pitts Client & Accounts Manager Chanel Roberts Business Consultants Rick Saikia, Monika Umakanth, Stefy Abraham,

I am pleased to present Issue 27 of Global Banking & Finance Review. For those of you that are reading us for the first time, welcome.

Featured on the front cover is Mr. Dimantha Seneviratne, Director/ Group Chief Executive Officer of National Development Bank PLC - Sri Lanka. National Development Bank PLC’s vision is to be ‘the driving force for a financially empowered Sri Lanka,’ contributing to the national development with innovative financial solutions and remaining committed to excellence. The first of wave of the COVID-19 pandemic hit Sri Lanka in March 2020, I spoke with Mr. Dimantha Seneviratne about NDB’s swiftness in responding and strong performance despite the challenging conditions. Read the full interview on page 24.

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This issue is filled with exclusive interviews from financial leaders across the globe. Turn to page 12 to find out what Crèdit Andorrà Financial Group has planned for the year ahead in conversation with CEO Xavier Cornella, following the organisation’s awards from Global Banking & Finance Review for the Best CSR Bank and Best Digital Bank in Andorra in 2020.

Odetta Morton the Chief Executive Officer of Deltec Bank and Trust Limited to let’s us know what drives Deltec’s success, beginning with how it has addressed the challenges to the market and the economy over the past year on page 18. You won’t want to miss these and other exciting exclusive interviews. With Over a Hundred Years of History, BMSC Leads the Way in Investing in Bolivia and its People. I met with BMSC’s National Marketing and Planning Manager, Mauricio Porro, to hear about the strides they’ve been taking towards digitisation, their effective plan of action during the pandemic, and how they continue to give back to the population through multiple CSR initiatives. Read the full interview on page 34.

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Issue 27 | 03

CONTENTS

Grand reopening: new opportunities, old risks

Françoise Huang Senior Economist for Asia-Pacific Euler Hermes

BANKING

38

Open banking: Why should retailers care?

Andries Smit, CEO and Founder, Upside Saving

BUSINESS

50 Preparing for the Next

Catastrophe: We’re Not Thinking Close to Big Enough Lloyd W. Howell, Jr., Chief Financial Officer, Booz Allen Hamilton

12 CRÈDIT ANDORRÀ – ANDORRA’S PIONEERS IN DIGITALISATION AND SOCIAL RESPONSIBILITY Xavier Cornella CEO Crèdit Andorrà Financial Group

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8

CONTENTS

18 DELTEC BANK: KEEPING CLIENTS AT THE FOREFRONT AS THE WORLD GOES DIGITAL Odetta Morton Chief Executive Officer Deltec Bank and Trust Limited

42 COMMERCIAL BANK OF CEYLON: SEEING THROUGH ITS CENTENARY YEAR BY TACKLING THE TOUGHEST ERA YET Mr. S Renganathan, Managing Director, Commercial Bank of Ceylon PLC

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CONTENTS

WITH OVER A HUNDRED YEARS OF HISTORY, BMSC LEADS THE WAY IN INVESTING IN BOLIVIA AND ITS PEOPLE

34

Mauricio Porro, National Marketing and Planning Manager, BMSC

46 CELEBRATING A DECADE OF EXCELLENCE ORBEX: BUILDING LONG-LASTING CLIENT RELATIONSHIPS THROUGH COURTESY AND PROFESSIONALISM Mr. Mohammed Yaghi Managing Director Orbex

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CONTENTS

MR. DIMANTHA SENEVIRATNE: FINANCIAL SERVICES GROUP CEO OF THE YEAR, SRI LANKA 2021

Cover Story 24

Mr. Dimantha Seneviratne Director/ Group Chief Executive Officer National Development Bank PLC - Sri Lanka

Issue 27 | 07

Grand reopening:

new opportunities, old risks The global economy is experiencing a multifaceted recovery. We expect global GDP to grow by +5.5% in 2021. Advanced economies are delivering on immunization campaigns and bracing for a grand reopening that could set the stage for a V-shaped recovery. Divergences will still be observed, with the US being a star performer. We estimate pent-up consumption worth 3% of GDP (USD1tn), compared with around 1.5% in most European countries (EUR500bn). We expect European economies to return to pre-crisis levels in Q1 2022, one year later than the US, and the return to the pre-Covid-19 growth path should take an extra four years comparatively (if it happens at all). That being said, vaccine hesitancy and second-generation vaccines remain top priorities, while under-vaccination in Asia and in Emerging Markets may cause desynchronized growth paths.

However, the global supply-demand imbalance could be exacerbated during the summer, given grand reopening in advanced economies and new Covid-19 outbreaks in Asia-Pacific. Their impact on trade volume is likely to be temporary and limited to Q2 (after which the epidemics in Asia-Pacific trade hubs should be controlled), while high prices due to input shortages are likely to remain for most of this year.

Figure 1 – Global trade in goods and services (%y/y) and contributions by region

Global trade is set to rebound strongly in 2021, but bottlenecks will lead to short-term hurdles. We forecast growth of +7.7% in volume terms (after -8.0% in 2020) and +15.9% in value terms (after -9.9% in 2020), supported by favorable base effects, a stronger-than-expected momentum in the first months of the year and expectations of robust exports out of Asia-Pacific, as well as strong imports in the US, Europe and China. Indeed, the global exports rebound has until now clearly been driven by the Asia-Pacific region, with exports from most other regions still below pre-crisis averages.

Sources: IHS Markit, IMF, Euler Hermes, Allianz Research

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Asia-Pacific overall is likely to continue outperforming other regions of the world, though disparities and downside risks have increased over the past quarter. Externally, the environment remains supportive, with Taiwan, South Korea, Singapore and Vietnam in particular well exposed to growth drivers (e.g. China’s earlier recovery, the US stimulus, the electronics sectors, strong intraregional trade etc.). As a result, their economic performances in the first months of 2021 mostly surprised on the upside.

However, they are at risk of stalling in Q2 due to negative drivers on the domestic side: Taiwan, Vietnam, Thailand and Singapore are now seeing rising infections amidst relatively slow vaccine rollouts. The accompanying tightening of containment measures will affect economic activity and we now expect their GDPs to contract in Q2 – although the shock is smaller than that of 2020 and likely to be temporary. This is a negative surprise as these economies had managed the pandemic well in 2020. Conversely, we had identified last year India, Indonesia, Malaysia and the Philippines as most vulnerable to sanitary risk.

Their policy leeway is also relatively more limited, meaning that the medium-term scarring effects of the pandemic could be felt more strongly.

Figure 2 – Sanitary situation vs. Stringency and mobility impact in Asia-Pacific (as of end of May 2021)

Note: the size of the bubbles represents the number of vaccine doses administered as % of the population. Pink bubbles are economies where the stringency of containment measures increased between end of April and end of May 2021.

Sources: Our World in Data, University of Oxford, Google, Euler Hermes, Allianz Research

Overall, after contracting by -1.1% in 2020, we expect Asia-Pacific’s aggregate GDP to grow by +6.3% in 2021 (revised from +6.6%) and +4.8% in 2022 (revised from +4.7%).

Issue 27 | 09

In China, the overall solid recovery still needs to broaden, which means that gradual policy normalization remains the baseline scenario. We maintain our GDP growth forecasts at +8.2% in 2021 (after +2.3% in 2020) and +5.4% in 2022. The post-Covid-19 recovery of the domestic economy can be broken down into three layers. The first layer of public and policy-driven investment (infrastructure and real estate) was behind the quick rebound in 2020. 2021 is likely to be more focused on the second layer of private business investment in the manufacturing sector. Our proprietary credit impulse index is indeed a little more resilient for the private sector than overall. To make the domestic recovery fully broad-based, the third layer that needs to recover is private consumption. Labor market indicators are encouraging, with the unemployment rate at the lowest level since 2019, but household confidence is not yet back to normal.

Short-term pressures related to rising input prices not transmitting to output prices support our expectation that the PBOC is likely to refrain from hiking policy rates this year. These price pressures should ease going forward, giving more room for the PBOC to use liquidity tools and macro-prudential regulation to tighten the overall monetary policy stance, while directing loans to areas most in need.

Figure 3 – China fixed asset investment by sector, 2y CAGR (%)

In such a context, policy normalization carried out in a gradual and flexible manner remains our baseline scenario.

Authorities aim to control structural vulnerabilities (e.g. in the real estate and financial markets) without jeopardizing the economic recovery.

Sources: National Bureau of Statistics of China, Euler Hermes, Allianz Research

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As growth rates normalize in the medium run, risks remain to be watched, particularly regarding corporate credit and global trade.

Massive state interventions helped suppress a significant wave of insolvencies in 2020, with a -12% drop globally rather than a +40% surge (ceteris paribus estimation). We expect a pragmatic and fine-tuned phasing-out of support measures in order to manage the pressure on companies’ liquidity and solvability. De facto, credit risk ratings recorded a stronger hit in sectors that bore the brunt of social and mobility restrictions, such as hotels and restaurants and transportation, with substantial positive performance conversely in chemicals, pharmaceuticals, retail and agrifood. The V-shaped global recovery will lead to a rebalancing in credit ratings from the wave of deteriorations posted in 2020 but the heterogeneity across sectors is likely to prevail until 2023.

Regarding global trade, political risks remain. The US has launched a new wave of global initiatives (e.g. for climate change and tax policies), but such a revival in international engagement does not necessarily mean unselective multilateralism: so far in 2021, the US has been the most active with trade protectionist measures and China and Germany the most targeted (in net terms). While the Asia-Pacific region could see some acceleration in the expansion and implementation of free trade agreements (e.g. RCEP, CPTPP etc.), it is not fully immune to pre-existing geopolitical tensions that have worsened with the Covid-19 crisis (e.g. China and the “Quad”).

Françoise Huang Senior Economist for Asia-Pacific Euler Hermes

With many economies in Asia-Pacific set pace to recover to pre-Covid-19 growth momentum, we have recently launched a Pandemic Recovery Survey to grasp how businesses are adapting to evolving risks and challenges. Take part in our survey here:

Issue 27 | 11

INTERVIEW

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INTERVIEW

Crèdit Andorrà –

Andorra’s Pioneers in Digitalisation and Social Responsibility Crèdit Andorrà is a global financial services group. It is a market leader in Andorra and has a presence in other leading financial centres in Europe and America, such as Spain, Luxembourg and Miami. Internationally, Crèdit Andorrà offers personalised and specialised private banking and asset management services. We talked to Xavier Cornella, the CEO of Crèdit Andorrà Financial Group, following the organisation’s awards from Global Banking & Finance Review for the Best CSR Bank and Best Digital Bank in Andorra in 2020.

“We are currently in the process of unifying our brand internationally. The new brand, Creand, responds to a future strategy for the Group as a whole, focused on consolidating our leadership in Andorra — where we are pioneers in innovation and customer service — and on continuing to grow in the major financial centres in which we operate. This rebranding is a commitment to transformation and innovation, which will allow us to grow and face the challenges of the future, in order to respond to the new needs of our customers and society in general.”

We began by asking Xavier about Crèdit Andorrà’s strategy for the upcoming year.

“Our strategy is based on three broad pillars: one, the development of strategic alliances to continue growing and expanding the value offer; two, the focus on digital transformation and innovation to improve excellence in customer service, and three, the specialisation in products and services that increase our differentiation and added value,” he explained.

“All this, with sustainability at the core of the management model and business strategy, and with the customer always at the heart of our activity."

Meeting customer needs in new ways has certainly been aided by the advances being made in technology. “Crèdit Andorrà is pioneering in financial digitalisation in Andorra. Our strategy encompasses digital services that have enabled us to advance towards a more convenient and agile form of banking that is prepared for the future,” Xavier said.

“In Andorra, we are pioneers in the creation of digital solutions that enhance the customer experience and are rooted in the commitment to sustainability.

In this regard, we have led the implementation of mobile payments and robo-advisors, developing an innovative, 100% digital investment fund advisor.

Our commitment to improving the experience of our customers has been seen in the exponential growth of digital banking."

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INTERVIEW

“In terms of entrepreneurship, we have launched the first business hyperacceleration programme in Andorra. The aim of this programme is to finance innovative technology projects and to position Andorra as a suitable environment for the development of entrepreneurial and international projects.”

Increased digitalisation brings with it other advantages, including the ability to avoid an extensive interruption to services under unprecedented circumstances, such as the impact of COVID-19. “Our principal commitment has been and continues to be to people. In this regard, the priority aim from the outset has been to protect the health of our employees, customers and providers, while ensuring compatibility with the continuity of the banking business,” Xavier told us. “To do this, we offer responsible, specific and coordinated solutions to continue providing the service to customers with the utmost guarantees."

“We have maintained the face-toface service at our branches at all times, adapting our facilities to comply with safety and prevention measures, while also activating remote work for the rest of our employees. The drive to digitalise our services and the use of alternative remote contracting channels, such as telephone banking, has enabled our customers to continue carrying out their banking transactions as normal."

“In addition, we have maintained an open, constant and transparent line of communication with our customers,” he went on. “An example of this was the online sessions in which we offered our vision of the markets, investment strategies and our services adapted to new needs."

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“The bank plays a key role in economic development due to its important role in the generation of value. Our involvement in and commitment to the countries in which we operate - companies, entrepreneurs, families and society as a whole - in the current healthcare, economic and social crisis is evident. One such example is the major role of Crèdit Andorrà in the Andorran government’s extraordinary guarantee programme for companies and businesses, in which we provided 67% of the total amount of soft loans.”

Further to the support offered in times of crisis, Xavier believes that financial institutions perform an essential function in social economic development more broadly, in a way that goes beyond the great resilience and adaptability shown by the sector in the last year. “Banks facilitate the flow of money to the market, helping to encourage the efficient channelling of this money into productive projects that generate economic and social benefits for the country,” he said. “In this respect, the Andorran financial system represents 20% of the country’s GDP and employs 5% of its salaried workers. The financial sector in Andorra also shows great strength in terms of solvency ratios, which were at 17.71% for CET1 (phased-in) last year.”

Crèdit Andorrà’s particular commitment to sustainable development and corporate responsibility is evident in its actions.

“Banks, as drivers of the economy, have the opportunity and the responsibility to be levers for change towards a new economic model, and to respond to what is expected of us: to contribute to the generation of social value through the generation of

INTERVIEW

economic value,” Xavier said. “As such, at Crèdit Andorrà, we have pioneered the incorporation of corporate social responsibility in our management model, and we have just gone one step further by becoming a signatory of the UN Principles for Responsible Banking. This is a single framework for a sustainable banking industry, developed through an innovative partnership between banks worldwide and the United Nations Environment Programme Financial Initiative (UNEP FI)."

“With this signature, we have now reaffirmed our position as a leader in Andorra in terms of CSR, by becoming the first bank to join this programme. It represents another step in our commitment to sustainability, and a key axis in our business and management strategy. Our goals

are to integrate environmental, social and corporate governance (ESG) criteria into the traditional financial criteria of risk, liquidity and profitability."

“We are proud that both our digitalisation strategy and our social commitment have been honoured with awards from Global Banking & Finance Review.”

The desire to drive sustainability in the financial sector is clearly a key influence on how Crèdit Andorrà operates. “It’s in our DNA,” Xavier agreed. “We have collaborated with the UNEP FI since 1998, and in 2016, we were the first bank in Andorra to join the UN Global Compact and to adopt the 2030 Agenda to contribute to the achievement of the sustainable development goals (SDG)."

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INTERVIEW

“Another example of our commitment to leadership in sustainability is our Environmental Management System, certified under the ISO 14001 standard, which encompasses the entire value chain, from the financial activity itself to providers, employees, customers and society. At the same time, it has enabled us to introduce management criteria based on environmental efficiency, on reducing the consumption of raw materials and energy and on combating climate change. This is in addition to awareness-raising and social commitment initiatives.”

Xavier also told us about their foundation, the Fundació Crèdit Andorrà, first created in 1987. “We are the only bank in Andorra with a foundation, with determined and continuous action that has led it to become one of the main private foundations in Andorra, both in terms of the number of programmes it leads and the resources it allocates. The foundation works in the areas of education, social action and culture, with training serving as the backbone of these three fields.”

Crèdit Andorrà also places considerable value in employment development, and Xavier emphasised how its people are the bank’s biggest asset. “We have a multicultural team. Our employees represent over 29 different nationalities, something that characterises us as an inclusive company and allows us to create value through our teams of professionals."

“We have a clear commitment to contribute to their professional development. That is why we foster and reward internal talent,” he continued. “Firstly, we encourage professional mobility within the Group, through internal selection processes that cover the Group’s needs, alignment with the business and the professional development of our people. Secondly, we have a continuous training plan, based on a business model that requires constant innovation and adaptation to the environment. Our training plan, as well as the development of technical skills and abilities to help employees carry out their everyday work, is adapted to a changing environment and generates a positive impact on the quality of customer service.”

Furthermore, the organisation offers a number of social benefits to its employees. “In terms of our policy on work-life balance, we have recently included new criteria for flexibility in the organisation of the working day in order to increase efficiency and strengthen our employees' pride of belonging,” Xavier explained. “In addition, we opened the doors of the bank to young students with the aim of promoting training, creating a link between university and the world of work and identifying young talent.”

Xavier Cornella CEO Crèdit Andorrà Financial Group

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INTERVIEW

We are advancing towards a new approach to banking.

Better prepared for the future.

Based on innovative digital solutions and driven by our commitment to sustainability.

Because of this, we have been named

BEST DIGITAL BANK ANDORRA 2021

BEST CSR BANK ANDORRA 2021

Andorra Luxembourg Spain Switzerland USA Mexico Panama Chile

creditandorragroup.com Issue 27 | 00

INTERVIEW

Deltec Bank:

Keeping Clients at the Forefront as the World Goes Digital Odetta Morton is the Chief Executive Officer of Deltec Bank and Trust Limited, a fully licensed and regulated financial services institution that has been operating for over 70 years.

Odetta was appointed CEO in 2019, and has served as Chief Financial Officer of the bank’s parent, Deltec International Group, since 2015.

She also currently serves as Director of the Deltec Initiatives Foundation and Director of The Bahamas Chamber of Commerce & Employers Confederation, where she co-chairs the Ease of Doing Business Committee.

Global Banking & Finance Review editor, Wanda Rich spoke to Odetta to find out more about what drives Deltec’s success, beginning with how it has addressed the challenges to the market and the economy over the past year. “Over the past year, we launched unique investment products to our clients with the appropriate risk tolerance, which have done extremely well,” she said. “Our investment strategies and decisions are supported by sound research, analysis, prudence and modelling. As thought leaders, our investment team issues articles which are published bi-monthly to outline the rationale for our investment decisions.

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“In May 2020, we released a research article noting that slowing global growth preCOVID-19 had very suddenly turned into a global recession. In an effort to try to stimulate consumption and investment, in order to avoid deflation and promote growth, central banks around the world were printing money and buying assets. Given high unemployment and falling commodity prices, a new aggressive wave of quantitative easing was expected to continue; this would likely undermine the real value of fiat currencies.

“Overall, we have delivered stellar results for clients in 2020 and we are looking forward to offering the same level of service in 2021.”

The bank’s business model has had to keep up with the many ways banking has evolved during its 70 years of operation, but Odetta explained to us the core values that have remained constant in how it continues to do business.

“Our business model is grounded in building long-term, enduring personal relationships with our clients with a clear understanding of their needs, while embracing the novel and exciting possibilities that new technologies provide to continuously improve their experience,” she

INTERVIEW

said. “As a private bank, this remains key to our continued success. The way we see our business model today is that our clients’ safety and security are at the centre of our operation, while creating and delivering tailored products and services effectively and efficiently is essential for delivering an end-to-end experience.”

Digital channels are undoubtedly playing an increased role in private banking, bringing improvements both to the customer experience and to the bottom line as private banks work to move to fully digital. “The private banking and wealth management industry has been faced with major disruption, and is considered to be at a crossroads due to strict regulations, a changing customer base, a focus on client-centricity and a number of emerging digital technologies,” Odetta said. “This shift to all-digital platforms helps to reduce the cost of operations, speed up transactions and ensure regulatory compliance; delivering efficiency and a customer-centric work environment. There are two areas of opportunity and innovation as a result: offering new services to existing clients, and opening to new client segments. The digital channel is more readily available than ever for both channels, helping to improve the bottom line.”

However, Deltec maintains its focus on the importance of balancing the rise of digitalisation with clients’ continued requirements for bespoke services. “Even with the shift to the use of digital channels, we have not underestimated the need of our clients to have even more tailored, personalised, exclusive and innovative financial services.

At Deltec, our model has always

been to bring together tailored client advice with the implementation of new digital platforms, with priority on secure 24/7 wealth management and financial services.”

Understanding the financial needs and goals of its clients is, Odetta reports, one of Deltec Bank’s highest priorities. “Our strategy is to focus on developing an appropriate investment and wealth plan for our clients. This allows our team to leverage Deltec’s in-house financial and investment expertise, to help our clients navigate the unique opportunities and market challenges we're now faced with.

“From an investment perspective, we simplify the process for our clients by offering a selection of discretionary model investment portfolios to match their risk profiles. Our experienced team of investment analysts and portfolio managers make clients’ capital work for them, applying Deltec’s robust investment framework to investment markets.”

Deltec’s partnerships with clients are clearly highly valued, as demonstrated by the broad range of services available that are designed to meet all their possible needs. “The Deltec International Group offers diversified solutions, ranging from traditional financial services such as private and corporate banking, fund administration, corporate advisory and insurance to innovative financial services inclusive of custody, trading and advising of digital assets, and general insurance focused on disruptive and niche businesses.

Therefore, at Deltec Bank, we have been able to create synergies to help our clients navigate an ever-changing financial market.”

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INTERVIEW

We went on to enquire about any new products or services they have in the pipeline for this year. “We have leveraged our team’s profound expertise and experience in finance and digital assets to launch some of the most exclusive product offerings in today’s environment. We are also well-positioned to offer fullyregulated, new frontier solutions, given our knowledge and jurisdiction.”

The bank’s investment team also continues to offer leading investment solutions that are tailored to the client’s risk appetite and generate market-leading returns. “We have recently relaunched the Deltec Global Absolute Return fund, which delivered >33% returns in 2020, net of fees, and have launched a range of innovative products including actively managed equity baskets and a Bitcoin structured product, which was launched when Bitcoin traded below $10,000. An actively managed digital asset offering is planned for 2021, as well as a dedicated emerging market solution.

“In the coming weeks, we will be launching a new debit card portfolio, called the Deltec Signature Black Visa Debit Cards Collection, to cater to the discerning needs of our clients,” she continued. “Our clients will access premium benefits, banking and wealth solutions with unprecedented convenience through this new debit card collection. Our card’s high standards of safety and security include fraud detection and decision intelligence features which rapidly detect, resolve and prevent fraud issues.”

Odetta also emphasised how wellpositioned the products and services offered by Deltec Bank are when it comes to accommodating the needs and interests of international clients.

“We offer our clients custody of assets, multi-currency capabilities, deposit

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accounts, trading and brokerage, investments solutions, along with additional tailored financial solutions,” she explained. “We have even developed a state-of-the-art digital account opening tool, which was built with our global clientele in mind.

This will facilitate a fast and intuitive process when opening an account with us - it takes just minutes to complete.”

Odetta pointed out that these services are not just about allowing international clients to access and manage their money, but also to put their assets to work. “We have built streamlined solutions for clients who want to liquidate their assets, including digital assets, and purchase tangible and investable assets such as real estate, art and other collectible items, all in a safe, well-regulated environment.

Our platform provides access to global markets across asset classes, and our well-regarded investment team guides - or partners with - our international clients to deliver the best possible returns, according to their risk appetite and other unique client requirements. We are active, engaged and innovative, and our success is clearly demonstrated by the returns we have generated for clients.

“Our international clients also have access to our financial ecosystem, Deltec International Group,” she went on. “This is a diversified, independent and global financial services group providing - through its member companies - a range of international financial services including fiduciary expertise, fund administration, digital asset financial services, insurance solutions and corporate and merchant banking capabilities.

“Beyond our many products and solutions, our global clientele values the bank because of our investment in technology, which is designed to not only provide 24/7 financial services, but also to revolutionise how wealth management and financial services

are offered today.”

When we moved on to what she sees as the most current trends emerging in private banking, digitalisation was number one. “Private banks are looking to digital transformation to meet rising customer expectations for speed and convenience, lower operating costs and stay ahead of the competition,” Odetta said. “This continues to be one of the biggest trends taking place as private banks now try to strike a balance between digital adoption and the personalisation of service. Financial institutions are increasingly investing in more digital offerings to maintain their competitiveness. They have been forced to reimagine pricing, branding and organisational models as a result.”

The events of the past year and a half have brought this to the forefront even quicker than anticipated. “The truth is that the COVID-19 pandemic has accelerated the push of digital transformation. There was a time when digital transformation meant online portals and mobile apps, but there’s so much more to it today.

Digital transformation must include a deep knowledge of customers and new emerging technologies to help better connect with new and existing clientele. Additionally, private banks are realising that they can’t do digital transformation alone, therefore tech partnerships and ecosystems are on the rise.

“Deltec Bank and Trust has been in front of these trends and we’ve made amazing strides to develop our digital capabilities and enhance our knowledge of customers in order to better serve them. We have an impressive ecosystem of partners and

INTERVIEW

related companies staying ahead of trends in financial services.”

Finally, Odetta filled us in on what the key priorities will be for investors this year. “Two key considerations for investors are inflation and tax policy,” she told us. “Firstly, with the Biden administration looking to pass large spending bills on infrastructure and other social programmes to support an economic recovery, and the Federal Reserve signalling that it will keep interest rates low, investors are anticipating an uptick in inflation. Secondly, to help fund this agenda, the administration will look to raise taxes. Some of the tax changes proposed are raising the corporate tax rate from 21% to 28%, raising the top individual tax rate from 37% to 39.6%, and more than doubling the capital gains tax rate to 43.4% for incomes over $1 million.”

"She also confirmed that the increasing institutional adoption of Bitcoin, Central Bank Digital Currencies and other digital assets will provide an additional point of focus for investors.“ Once viewed as a marginal investment class, cryptocurrencies are becoming more of an accepted part of the financial world, and institutions are understanding that they must embrace this emerging asset class or risk losing relevance.

“Considering all of these factors and emerging trends, our investment team at Deltec has positioned our clients and investors to benefit from the rebound in activity this year.”

Odetta Morton Chief Executive Officer Deltec Bank and Trust Limited

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Because you motivated us today we are recognized as t

Banco Santander Chile: Infórmese sobre la garantía estatal de los depósitos en su banco o en www.cmfchile.cl. Publicidad valida solo para Chile.

Tu banco

s to grow as a digital bank, the Best Digital Bank in Chile.

SANTANDER, CHILE’S BEST DIGITAL BANK We celebrate to have been chosen by Global Banking & Finance, as the Best Digital Bank and the Fastest Growing Digital Bank in Chile in 2020.

Thank you for inspiring us to improve every day.

COVER STORY

Mr. Dimantha Seneviratne Director/ Group Chief Executive Officer National Development Bank PLC - Sri Lanka

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COVER STORY

Mr. Dimantha Seneviratne:

Financial Services Group CEO of the Year, Sri Lanka 2021

National Development Bank PLC’s vision is to be ‘the driving force for a financially empowered Sri Lanka,’ contributing to the national development with innovative financial solutions and remaining committed to excellence. NDB was recently recognised by Global Banking & Finance Review with five awards - Decade of Excellence in Project and Infrastructure Financing, Best Financial Services Group, Best Bank for Digital Transformation, Best Financial Institution for Empowering Women in Business and Financial Services Group CEO of the Year.

unforeseen, and unplanned for, in every part of the world. It was sort of a test on corporates’ agility and swiftness in responding to an utmost emergency whilst maintaining resilience,” Dimantha said. “At NDB, things adapted to new conditions in a gratifyingly short period. Our team members in support services, who could perform their functions from home, resorted to working from home quite swiftly, owing to the fact that this setup had been tested in the bank way prior to the pandemic, in a bid to improve the work-life balance of our team members.

When our editor Wanda Rich interviewed Director/ Group Chief Executive Officer Dimantha Seneviratne, he expressed his thanks to us for recognising NDB’s efforts.

“External endorsements always attest to the excellence in our performance, and also motivate us to raise the bar and perform even better,” he said.

“With the pandemic now having evolved to a third wave in Sri Lanka, NDB continues to offer undisrupted banking services through the rational deployment of staff on roster and split location and work-from-home methods, to ensure health and safety are at maximum levels.”

Speaking of strong performance, NDB’s response to the current pandemic appears to have been both rapid and effective, despite the obvious challenges. “The effects of the COVID-19 pandemic were

As well as implementing a new working regime for staff, NDB has made many efforts to maintain service levels to the public in a safe and responsible way. “From the first of wave of the pandemic that hit Sri Lanka in March 2020, when a strict

island-wide lockdown was imposed, NDB has been adapting its ways to ensure continuous banking services to our customers,” he explained. “During the first wave, NDB was the first bank to deploy three mobile ATM trucks in a number of localities across the country, helping both NDB and nonNDB customers to meet their urgent cash needs. Our branchless banking proposition, Bank2U, continues to support vulnerable customers by taking banking services to the customers’ doorstep.

“NDB has been at the forefront in supporting customers through a host of other modes. It was the fourth highest-ranked bank in the industry in distributing concessionary rated loans under a scheme funded by the Central Bank of Sri Lanka (CBSL), dubbed as the Saubhagya COVID-19 Renaissance Loan Scheme. The bank also granted moratoria on capital and interest payments for eligible customers, based on CBSL directions and on its own accord. NDB Jayagamu Sri Lanka, which translates to ‘Bringing Victory to Sri Lanka,’ is NDB’s latest financialcum-advisory proposition, dedicated to empowering exporters, entrepreneurs and inventors.

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COVER STORY

“These are some key initiatives showing how NDB has adapted to the new normal, with the primary objective of supporting our customers and the national economy at large to expeditiously emerge stronger from the challenges brought on by the pandemic.”

NDB had made prior investments in digital infrastructure - from 2017 onwards - as part of its strong strategic blueprint to be powered by digitisation. Dimantha described how this facilitated its customers’ banking experience following the outbreak.

“In December 2019, just before the pandemic set in, NDB relaunched its mobile app with new capabilities and fresh branding as NEOS. In April 2020, during the height of the islandwide lockdown, NDB upgraded and integrated its online banking platform for an omni-channel experience with mobile banking. In October 2020, amid the effects of the second wave of the pandemic, NDB launched NEOS Pay in its mobile app, enabling QR codebased payments and making the NEOS app inter-operable, meaning that even a non-NDB bank customer could onboard and access the app. These are a few examples to highlight how NDB’s digital journey has continued

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unabated by the pandemic; this strong digital platform enabled our customers to carry out their banking transactions from the convenience and safety of their homes.

“During 2020, the bank’s digitally active customer base increased to 55% from 35% in 2019. Our digital transactions represented around 80% of total transactions. The mobile app alone recorded a 311% increase in value of transactions and more than a 200% increase in volume of transactions. Certain months saw more than a 500% increase in value of transactions versus the same month in the prior year, reflecting the extent to which our customers embraced the NDB digital channels in the context of the pandemic.”

Dimantha asserts that NDB’s technological and digital innovations take two forms; one, developing a more pleasing customer experience, and two, enhancing efficiencies in its processes.

“In terms of customer experience, NDB’s digital solutions - dubbed as NEOS - is the best example. NEOS comprises NDB’s mobile app, online banking platform, Bank2U branchless banking proposition, ATMs and CRM network of over 150, and two phygital

branches. In totality, these offer our customers the utmost convenience in conducting their banking transactions.

“The NEOS mobile app, as I mentioned previously, can be accessed by a customer of any bank,” he continued.

“Due to this reason, we are also promoting financial inclusivity and penetration into deeper markets with digital solutions. With the introduction of QR code-based payments, NDB is the only mobile banking app to provide merchant payment and mobile banking services on one mobile banking app.

Added features are that users are now empowered to perform speedy and secure cashless payments without divulging account numbers. This also enables merchants to acquire payments without the added cost of investing in POS machines.”

Other innovations include deploying workflow solutions to a large number of support service processes, in order to considerably reduce time and resources to perform routine tasks. Most striking of all is NDB’s use of Robotic Process Automation (RPA) to revolutionise a number of its processes. “The financial benefits of these are reflected in a continually improving cost-to-income ratio for

COVER STORY

NDB Bank, which currently is as low as 31% - one of the best in the banking industry and also other corporates,” Dimantha said. “This ratio was as high as 50% about five years ago. Our fee income has also been enhanced – in 2020, fee income grew by 12%. All of this contributed towards an increase of 8% in post-tax profitability, which was quite commendable given the effects of the pandemic.

“In addition, the bank also invested in state-of-the-art call centre technology.

New customer support features include a chat option with service agents for a speedy turnaround time. NDB is also currently on a core banking system upgrade to R20 of Temenos which, once implemented, will provide exceptional processing capacities and energise the bank’s digital drive.

“Increased digitisation and automation led to a 40% decrease in paper consumption in 2020 with a considerable reduction in energy consumption, benefitting the environment.”

We moved on to the topic of project and infrastructure financing. Back in 1979, NDB was initiated as a Development Financing Institution, and became the apex body to channel funds received by the Asian Development Bank to needy segments in the country with the aim of national development. “NDB’s competence in this area has been perfected over the past four decades, lending to a wide range of infrastructure projects - renewable energy generation, development of roads and highways, utility projects and other mega development projects in the country,” Dimantha explained. “NDB is a financing and advisory partner in a number of major development projects that are currently taking shape in Sri Lanka, which include leisure, tourism, residential and more. Our forte is also in funding renewable energy generation, with the bank having provided funding for around 30% of Sri Lanka’s renewable energy projects

in hydro, wind and solar. Moreover, we have expanded our services beyond the shores of Sri Lanka to the African continent.

“The bank possesses a unique base of domain knowledge garnered through an established track record, deep insights, expertise in a wide range of industries, and competence in handling multiple aspects of complex projects, such as legal and technical aspects,” he went on. “Our project and infrastructure solutions can be catered in accordance to Sharia laws as well, powered by our Islamic Banking proposition.

Given all this, NDB enjoys a strong competitive advantage in the market which the bank often uses for the benefit of customers, and also peer banks in syndication facilities, where NDB takes the lead role in sharing its technical expertise in addition to its financial contribution.

“Currently, the bank’s project and infrastructure financing portfolio contributes to approximately 23% of the loan book and records a very low NPL ratio, affirming the quality of our portfolio.”

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One of NDB’s key strategic items is female empowerment. Dimantha told Wanda about the extensive research conducted by the bank in 2017, exploring the women’s market segment as part of its then mid-term strategy with the professional consultation of the International Finance Corporation (IFC). “The findings of this research laid a strong foundation towards developing a unique financial and advisory proposition for the women’s market segment,” he recounted.

“Branded as NDB Araliya, the proposition caters to three subsegments - namely, homemakers, salaried women and women entrepreneurs. NDB Araliya comprises business loans, current and savings accounts and credit card facilities.

Together with strong advisory, NDB Araliya is supporting aspiring Sri Lankan women in realising their goals.

“In 2020, NDB embarked on a novel initiative dubbed ‘Sri Lanka Vanithabhimana’ (which translates to ‘Pride of Women’) as part of its women empowerment blueprint.

This initiative saw NDB collaborating with the MTV/MBC media partner, a leading media channel in the country, to conduct a national-level contest for women across eight categories: Sports, Entrepreneur (Small Scale), Entrepreneur (Medium Scale), Young Leader, Environmental Management, Social Worker, Education and Upcoming Woman Entrepreneur Business. Sri Lanka Vanithabhimana was an opportunity - unlike any before - for hidden talent amongst Sri Lankan females right across the country to step into the limelight and showcase their talents to the country.”

This initiative, he explained, was NDB’s response to a gap the bank had identified in its aforementioned research of the women’s market segment. “We identified that there was no formal recognition scheme to

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acknowledge women’s contribution and encourage them to perform better.

Sri Lanka Vanithabhimana was also based on learnings from foreign peer banks who had excelled in serving the female market segment.

“Initial competitions under Vanithabhimana were held on a province basis for nine administrative provinces in the country, from which the first-place winners in each category proceeded to the national-level contest to be crowned as the national winners,” Dimantha said. “Winners were selected through the evaluations conducted by an esteemed panel of judges who represented a myriad of fields including entrepreneurship, environmental conservation, gender equality and women empowerment, sports and academia. The panel also saw representation from the bank's senior management. The physical events were affected by the restrictions imposed on the country in response to the pandemic, but our efforts were unabated as we swiftly moved the events to virtual mode. The culmination of the event took place on International Women’s Day in 2021 as an in-person event - as health guidelines had been relaxed by that time - where many high-performing females were recognised.”

Further to NDB's commitment to empowering women, the bank is also a member of the Financial Alliance for Women (FAW), a leading global members’ network of financial organisations dedicated to championing the female economy.

“It’s the world’s largest, fastestgrowing market, and yet one that remains untapped,” he said. “As a unique network with members from over 135 countries, FAW shares our ambition of unlocking the full value of the female economy.

“The bank draws much of its insights, expertise and exposure by participating in FAW's knowledge-sharing sessions and workshops, which feature best practices for empowering the women's market across the globe.

These insights have enabled NDB to augment their own solutions to the Sri Lankan women's market segment. The bank in turn is a frequent knowledge contributor at FAW conferences, publications etc., wherein it shares its success stories and endeavours in this segment with a worldwide audience.”

These endeavours make it no surprise that NDB takes its role as an equal opportunity employer very seriously.

“Gender diversity and equal opportunity for all our staff members are sacred to us,” Dimantha maintained. “In line with this commitment, NDB obtained the global certification standard for gender diversity in the workplace – EDGE certification. EDGE stands for Economic Dividends for Gender Equality and is distinguished by its rigour and focus on business impact.

Further, it is committed to helping organisations to create optimal workplaces for both women and men, and to benefit from it. This certification demonstrates our commitment to promoting gender balance at all levels.

It provides a structured and systematic approach to measure, track and ensure gender equality. NDB is the first - and to date, the only - corporate in Sri Lanka to have this certification.* “In NDB, 39% of our staff are females, whilst 33% of senior managers are females,” he continued. “7 out of the 19 top management personnel are female, leading core and critical functions such as project financing, compliance, risk management, auditing, finance, legal and company secretariat. All of them are ingrown talent of the bank, with most of them

COVER STORY

having initiated their careers with NDB and made it right to the top.

“Equal opportunities for an employer extend beyond gender. We treat all our employees equally through their entire career cycle with NDB, irrespective of their cast, religion, race etc.

The bank also has in place a number of robust policies which ensure every employee is treated with equality and dignity in the workplace.”

Upon being asked about where NDB Group is placed in Sri Lanka’s financial markets, he highlighted its unique position as the only organisation in the country to head a financial services group which combines banking services and capital market services under one brand. “The NDB Group comprises dedicated subsidiaries engaged in a range of capital market services such as full service investment banking, wealth management, securities trading & advisory and private wealth management,” he explained. “This proposition strengthens the product portfolio offered to our customers, where they have a wide choice to select from, whether they’re

enhancing their personal wealth or expanding their business, considering an IPO or raising debt for the business when it is reaching the next big growth milestone. The subsidiary companies of the Group are market leaders in their own right, with NDB Investment Bank Limited being the undisputed market leader, adjudged as the best investment bank in Sri Lanka by EuroMoney for nine consecutive years. NDB Wealth Management Limited is the largest private fund manager in the country with assets under management in the range of LKR 180 Bn. “This Group structure has enabled the Bank to offer a unique product which combines features of a commercial banking product and a wealth management product. Branded as the ‘NDB One Account,’ the product features an asset as well as a liability component.

From the asset perspective, the customer is able to maintain a current account with the bank with a pre-set maximum balance, and have any excess funds automatically invested in the NDB Wealth Money Plus fund

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COVER STORY

at day’s end, which is a lucrative investment option offered by the Group’s wealth management arm, NDB Wealth Management Limited.

If the customer at any point decides that they should invest the funds in the NDB Wealth Money Plus fund - either in full or in part in a Bank Fixed Deposit or any other savings deposit - the customer may do so at the convenience of instructions given to the bank. Conversely, the customer can obtain a loan or an overdraft facility of up to 90% of the investment in the NDB Wealth Money Plus fund, whilst pledging the same as security.

As such, the NDB One Account is a flexible product which allows customers a variety of investment and financing options through a single account.

“The holistic proposition offered by NDB is augmented by technology,” Dimantha added. “The NEOS mobile app is a single point for viewing portfolios held at the bank, NDB Securities - the securities trading arm - and NDB Wealth Management.

The Group structure also leads to large synergies. Considering all this, NDB enjoys a unique competitive advantage over its peers, as a powerhouse in Sri Lanka’s financial services market.”

Dimantha’s description of NDB’s response to the pandemic underscores its role as a responsible corporate, and not just as a financier.

“In addition to promptly deploying our resources towards financially supporting our customers, we also carried out - and still carry out - a host of initiatives to ensure the safety, well-being and betterment of both our own staff and the wider community under the theme of ‘NDB Cares,’ in keeping up the spirit of a responsible and compassionate corporate.

“With regards to employee wellbeing, as I mentioned before, we are reinforcing and adhering to all guidelines issued by the health authorities in creating a safe workplace for all of us. We

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also quite promptly established The Command Center (TCC) to review, implement and monitor all pandemicrelated matters and incidents across the bank in a timely and effective manner, dedicating resources towards this mission. Some ongoing measures include a special transportation service to NDB Bank locations for employees along six travel routes, bank-sponsored asymptomatic screening for COVID-19 through Rapid Antigen testing and PCR testing for employees through private medical service providers, and reserved hospital beds - based on availability - for NDB staff members who have tested positive and may require medical attention in a hospital.”

As we know, the pandemic has not only affected physical health. The mental and psychological struggles many are facing need to be monitored too, and Dimantha talked about some initiatives that are underway to ensure the psychological well-being of NDB’s employees. “We’ve launched the ‘Talk to HR’ feature on the NDB Human Capital Management mobile app, which ensures prompt connectivity with the HR Team from anywhere the employee is. There are constant followups with NDB team members who are placed under self-quarantine by local health authorities for counselling and support. We offer coverage of COVID19-related hospitalisation costs for staff and their families through the insurance service providers. There are also staff engagement initiatives marking key calendar events conducted through virtual modes to keep up the team spirit, fun and comradery – for example, the NDB Virtual Traditional New Year Festival 2021, Christmas carols etc.

“In helping our staff members to adapt to the new normal, we have deployed digital methods to continue training and development for the NDB team through NDB Virtual Learning, and introduced a new staff loan scheme for purchasing personal laptop computers to facilitate work from home,” he went on. “Despite many challenges, there were zero layoffs and no salary or benefit reductions to any employee. Incentives

and increments payable for 2019 and 2020 performance went ahead as planned in April 2020 and April 2021 respectively.”

NDB’s humanitarian endeavours are not limited to in-house initiatives. “The bank also conducted a wide range of activities in supporting the country’s health sector fighting this pandemic in the wider community, which included monetary and essential health equipment donations,” Dimantha said.

“Our efforts continue under the theme of NDB Cares - together with humanity, stronger with positivity. Whilst all this is happening, and amidst the many restrictions imposed in response to the pandemic, NDB continues its corporate sustainability initiatives.

Some key initiatives from recent times include a reforestation project in Himbiliyakada, Matale in Central Sri Lanka, covering 5 hectares with 3,000 trees planted and planned to expand by a further 10 hectares; the removal of invasive plants in Pitawala Pathana, Matale, which is a protected environmental area and home to many endemic and endangered species of Sri Lanka; support extended to an underprivileged school in close proximity to the reforestation site in the form of installation of a water purification system, refurbishment of the school computer lab and donation of computers etc., and the commencement of planting mangroves in Mannar and Puttlam, with an ultimate target of 40,000 plants.”

Wanda asked Dimantha what he believes to be the most important attributes of a CEO. “In today’s VUCA world - of vulnerabilities, uncertainties, complexities and ambiguities - CEOs are required to be visionary, in that they should not just be great at ensuring the world-class execution of a tested and successful business model. They also need to be world-class innovators,” he stated. “CEOs, particularly in the services sector, are required to be customer-centric with a happy customer being the ultimate goal, with their products and processes aligned

COVER STORY

to this ultimatum. A CEO’s vision will be a beacon that guides his or her team in unity and congruence. A CEO must also be agile and know how to pivot, by making substantive changes to the business model while or before they experience a market shift, so as to stay relevant in the new context.

pandemic, when investor sentiments were below optimum levels given the many macro-economic challenges. The success in this capital raising initiative, and also onboarding a European investor, attests to the strong confidence the investment fraternity in Sri Lanka and abroad has placed in NDB’s performance, potential and stability.

“I believe a CEO must also have a passion to perform that is contagious to the rest of the team,” he continued.

“He or she must be ready to roll up the sleeves, move along with the team and lead by example. This will motivate teams to chase their goals and achieve greater heights.

Maintaining constant dialogue with the employee is also key. This creates a sense of togetherness and connectivity, irrespective of where the CEO and the rest of the staff are located. This proves true in particular with an organisation like NDB, which has its operations spread across the country in 113 branches. Constant communications should involve keeping the team apprised of what is happening in the organisation, what wins have been achieved and how they have been a part of it. A knack for learning is also an essential attribute for me. I suppose it is something that applies to any person in any profession. The world is changing at a rapid pace, and the only way to stay relevant in it is by learning and reskilling.”

“With this new capital infusion, NDB is powered to perform and deliver on its five-year strategy ‘Voyage 2025,’ which will take NDB to greater heights in the Sri Lankan banking and financial services sector,” he added. “We are cognizant of the challenges that may evolve with the direction and the intensity of the pandemic. NDB has withstood many economic cycles in its existence for over four decades. With this expertise, NDB remains committed to delivering support to all its customers in maintaining financial resilience and prospering in their ventures. In doing so, the bank is committed to supporting the overall national economy, staying true to its identity.”

Looking ahead to the rest of 2021 and beyond, Dimantha talked about NDB’s current positioning, having just concluded a successful capital raising initiative by announcing a rights issue to raise LKR 8 Bn in 2020. “The bank was successful in completing this rights issue with a 100% subscription rate,” he confirmed.

“The bank raised a further LKR 1.5 Bn via a private placement with Norfund, the Norwegian Investment Fund for developing countries. As such, the fresh equity capital infusion netted LKR 9.5 Bn. We are quite pleased with this achievement as the transactions took place during the height of the

* For more information on EDGE

(Economic Dividends for Gender Equality) certification,

visit www.edge-cert.org

Issue 27 | 31

Call For Entries INVITING BANKS

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2021

Tawuniya appoints Dr. Ammr Kurdi as Chief Financial Officer Riyadh: 23.6.2021 The Company for Cooperative Insurance (Tawuniya) announced the appointment of Dr. Ammr K. Kurdi as Chief Financial Officer (CFO). This step aims to empower the national competencies and hire the best Saudi talents at all administrative levels to achieve the company’s strategic goals and develop its financial and administrative performance.

Dr. Ammr represents an added value for Tawuniya as he has more than 15 years of experience in financial services industry through holding multiple management and executive roles within prestigious organizations.

Prior to joining Tawuniya, Dr. Kurdi held the role of Chief Corporate Services Officer at Saudi Arabian Industrial Investment Company (DUSSUR), which is a join venture between Saudi Arabian Public Investment Fund (PIF), Saudi Aramco and Saudi Basic Industries Corporation (SABIC). Prior to that, he was the Chief Financial Officer at Saudi Arabian Amiantit Company, and the Chief Audit Executive for King Fahd University of Petroleum and Minerals (KFUPM).

Furthermore, Dr. Kurdi is currently an Audit Committee Member at Saudi Telecom Company (STC), Saudi Electricity Company (SEC), National Agricultural Development Company (NADEC) and the General Authority for Military Industries (GAMI).

On this occasion, Tawuniya’s CEO Abdulaziz Al-Boug expressed his pleasure on appointing Dr. Kurdi in this role as he has a long experience in the financial management and high academic qualifications. Dr. Kurdi holds his PhD in Accounting from the University of North Texas, USA, a Master of Accounting Degree from the University of Arizona, and Bachelors’ of Science Degree in Accounting from KFUPM. He is also a Certified Management Accountant (CMA).

“Tawuniya is going forward in increasing its investments to develop the Saudi workforce and improve their skills. The company succeeded in raising the Saudization rate by more than 84% of the total workforce and 95% percent of the leadership role.

Tawuniya still continues in implementing its policies to empower the Saudi women and raised the female employment rate by more than25% of the total workforce. During the recent period, the female employment rate in Tawuniya witnessed a significant growth, from 26% of the total new employees in 2015 to 53% in 2020,” Al-Boug said.

INTERVIEW

With Over a Hundred Years of History, BMSC Leads the Way in Investing in Bolivia and its People Banco Mercantil Santa Cruz was formed in 2006 as a result of the merger between Banco Mercantil and Banco Santa Cruz, which began operating in 1905 and 1966 respectively. Its international prestige is supported by over a century of history and experience, along with its continued commitment to the financial needs of the Bolivian people.

Wanda Rich, editor of Global Banking & Finance Review, met with BMSC’s National Marketing and Planning Manager, Mauricio Porro, to hear about the strides they’ve been taking towards digitisation, their effective plan of action during the pandemic, and how they continue to give back to the population through multiple CSR initiatives.

Wanda first asked Mauricio what he believes to have most contributed to the bank’s success, which has now been operating for over a century. “We believe that acting faithful to our principles and values - integrity, honesty, responsibility, leadership and excellence - is what has marked our trajectory,” he offered.

“In addition, the commitment we have to all the people who trust in our institution, together with our ability to adapt to changes and our vocation for entrepreneurship, has consolidated us as the leading bank and benchmark in the financial sector, which is reflected in the

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preference and trust of all Bolivians. On the other hand, constantly working for the solidity of the institution is especially important, as it allows the bank to last for centuries and not just decades.

“The focus on our clients is fundamental. They are who we owe ourselves to and we seek to satisfy their needs in the best way possible,” Mauricio continued. “Also, innovation and digital transformation play a determining role, and they remain within our management priorities. We seek to provide our clients with the best banking experience, facilitating their lives and supporting them in their daily tasks.

“Finally, our commitment to the country.

Everything we do as a bank and as a group is in Bolivia: betting on the development and growth of the country, generating direct and indirect jobs and business opportunities, and being ambassadors of the fact that in Bolivia there are always opportunities - and there is still a lot to do.”

Given the huge challenges of the past year, it is to BMSC’s advantage that one of the issues it takes most seriously is risk management. “We have a high-level structure that is constantly monitoring the different types of risks in a preventive and

corrective manner, generating alerts that allow us to take action in a timely, agile and effective manner,” Mauricio confirmed. “We are a Bolivian capital institution, and we know our country, which is definitely an advantage.

“We are prudent in our management and we prioritise the strength of the bank, an aspect that directly impacts everything related to risk management.”

With regard to the use of digital channels to improve the customer experience, BMSC’s 24/7 banking facility allows clients to carry out multiple transactions comfortably and safely without having to go to an agency. “In recent months we have strengthened all our customer service channels, by implementing new functionalities, simplifying processes and providing personalised advice,” he explained. “One of the new functionalities that we have implemented is the possibility of opening accounts and making credit applications 100% online. Likewise, our clients can perform all kinds of operations, such as transfers, credit payments, and making purchases online. In addition to that, we have implemented the possibility of performing more than 40 operations using the digital signature.”

INTERVIEW

Customer preference towards digital channels is underscored by the bank’s latest data from this year. “It is worth mentioning that in the first quarter of 2021, more than 27 million transactions were registered in Banco Mercantil Santa Cruz, with a derivation rate of 90.9%,” Mauricio reported. “Among these, mobile banking is the most used channel, with a 73.9% share of all transactions carried out through our digital channels. Overall, compared to the first quarter of 2020, the use of alternative channels grew by 67%.”

Its Online Accounts and Credits platform, Cyco, has also been widely accepted by clients. “By March of this year, more than 20,000 accounts had been opened 100% online, with a card sent to each address at no cost. Likewise, more than 13,000 loan applications were received and more than $ 1.9million was disbursed from the OA&C platform.

“Thanks to the launch of this platform, Fintech Americas recognised us with the Silver Country award in the Channels

category. It is the second consecutive year that we have received an award from Fintech Americas; last year we were awarded in the Social Impact category thanks to our Centavoluntarios programme.”

Mauricio went on to talk in more detail about the products and services launched by BMSC over the last year. “During 2020, we launched new products to satisfy the needs of our clients according to the context we were experiencing. In alliance with Fintech, a modern technological platform was developed in order to make credit requests and account openings without the need to leave home, by using a cell phone or computer.

“Similarly, we consolidated a strategic alliance with two leading companies in their respective industries, a vehicle dealership and a fintech, with the aim of processing vehicle loans online and providing customers with a unique experience that seeks to reduce the time of the credit granting process and eliminate the need to go to the bank.”

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INTERVIEW

They also made moves to assist customers financially in light of the health emergency Bolivia was being confronted with. “COVID-19 insurance was launched with the objective of making insurance available to customers that allowed them to face the situation the country was in.

We also launched our new discount programme through which customers can access discounts on fashion, food, appliances, etc. in the best shops in the country, just by paying with their credit or debit cards. These actions were very well received by the public and by our clients, in addition to being a differentiating factor compared to the competition.

“In 2021 we will continue to develop new digital products, as well as specific comprehensive solutions for certain market segments.”

Mauricio emphasised that the issue of Corporate Social Responsibility (CSR) is a fundamental pillar to the

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management of Banco Mercantil Santa Cruz. “We work in a sustainable and responsible way in social responsibility programmes that benefit the community and the social development of the country,” he told Wanda. “In 2011, a CSR management programme was created, followed by the Santa Cruz Mercantile Foundation in 2013, to reorganise and strengthen our actions in the field of CSR, working under three structural pillars: health, education and sports.

“Through our Scholarship Programme we have given more than 500 young people in vulnerable situations the opportunity to study. 185 of these have already graduated, and 20 have completed a master's degree in Business Administration and Management (MBA) at the IMF Business School and the Camilo José Cela University in Madrid, Spain. Through the Manitos (Little Hands) Programme we have managed to operate on more than 600 children with upper limb

malformations. Then there is the Davosan Programme, whereby we have collaborated with more than 7,800 kidney patients so that they can receive the necessary dialysis treatment.

Finally, with the Program Entrenando Valores in an effort with the Real Madrid Foundation and Alalay, we have trained in values through the practice of sport to more than 20,000 beneficiaries.”

The bank has also allowed clients to get involved with supporting its philanthropic initiatives. “With the objective of allowing our clients and the general population to join these projects, we have created the Centavoluntarios programme, through which donations can be made through the different channels of the bank: ATMs, bank registers, mobile banking, online banking etc. This programme has recently been awarded as one of the most innovative in the country.

The main objective is to be able to provide opportunities and change lives,” Mauricio said.

INTERVIEW

“During the pandemic we have made a contribution exceeding Bs. 1.000.000 to different programmes aimed at providing respirators, medical supplies and biosafety equipment, because we are convinced that the only way to get ahead of this is by being united and supporting each other.

“Thanks to good practices and our commitment to CSR, our rating, which is determined by AESA Ratings, has seen sustained growth. We started with 6.1 out of 10 in 2014, and we currently have a rating of 9.7.”

Job development is another area closely aligned with the bank’s values, as Mauricio explained. “Twelve years ago at Banco Mercantil Santa Cruz, we decided to measure our culture and work environment using the GPTW (Great Place To Work) methodology,” he said. “We have

been applying different actions for more than a decade to improve our day-to-day. From the first moment, we were clear about our goal: to set an example in the country regarding human resources management.

In that sense, year after year, we have implemented different actions aimed at meeting this objective. We work a lot on organisational culture, communication, teamwork, work-life balance etc., all under the premise that ‘the best place to work is built by all of us.’ It is not a goal just for the management of the company or HR, but rather an objective of everyone who makes up the BMSC family, because the day-to-day is the responsibility of all of us.

“We have held GPTW certification for six years now, and find ourselves among the best companies to work for in Bolivia. In 2020 we received

first place in the ranking, so we have shown that with work, confidence and perseverance we can achieve any objective that we set ourselves.”

We concluded by talking about BMSC’s plans for the coming year. “Banco Mercantil Santa Cruz will continue to enhance our strength and solvency, maintaining our leadership and developing the talent of our staff,” Mauricio said. “In addition, we will continue betting on the country with the digitisation process promoted by the bank for many years. For that reason, we will continue to invest in technological platforms that allow us to be closer to our clients, and provide them with greater comfort and efficiency in all processes as we adapt more and more to the new normal. Meeting the needs of our clients and providing them with comprehensive financial solutions will continue to be the focus of our strategy.”

Issue 27 | 37

BANKING

Open banking:

Why should retailers care?

The future of finance is an open one, that much is clear. Already transforming the way we control our finances and pay for products and services, Open Banking shows great potential to disrupt financial services while creating a prominent market opportunity.

Open Banking allows consumers to share their spend data. Everything from individual bank transactions, to regular payments they make and companies they buy from, can be shared with authorised providers. Budgeting apps are one example of Open Banking where consumers share their spending data in exchange for a summary of where they spend their money, gaining value from the data exchange. Open Banking is undoubtedly revolutionising the banking and finance industry, but why should retailers care?

An even better example of using Open Banking to unlock value for consumers would be the voluntary exchange of spending data for cashback as they spend with specific retailers. Insights obtained from this spend data are a game changer for the retail industry.

Access to the spend data insights from individual and collective customers provides numerous opportunities for retailers, such as competitive advantages, prospects for strategic business development and cost savings.

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Another point of relevance for retailers in regards to Open Banking is the increasing awareness among customers of the value it adds to their retail experiences. You would be right in thinking that, up until recently, consumers don’t care about Open Banking, as according to a report from pwc, only 18% of consumers are currently aware of what Open Banking means for them. However, the report suggests this figure is expected to increase exponentially to 64% by 2022.

This suggests that if retailers wanted to remain competitive, retaining and gaining customers, Open Banking is something they can’t afford to ignore.

The rapid development of innovative options for consumers is the main driver behind this anticipated increase in awareness, as the benefits of data sharing increasingly outweigh privacy concerns. While Open Banking continues to evolve so too do the innovations driving it, creating an everprogressive circle of growth. Already, finance applications such as Request to Pay are rising in popularity and Open Banking it is tipped to be on the verge of replacing BACS payments, due to its simpler and more effective payment options. Looking further ahead, realtime payments will be gradually improved to enable instantaneous transactions for e-commerce, an area

where retailers are always looking for new methods to provide frictionless payments and reduce costs created by errors in the cash handling process.

The future of retail looks fast, convenient and increasingly personalised and the demand for more won’t stop there. Growing expectations from consumers and the market mean these innovations will be constantly challenged and pushed for improvement driving ever more rapid advances in the way we manage finances.

The good news is Open Banking, is already providing the basic payments infrastructure needed on which to build this innovation in the future.

Of course, Open Banking can only advance so much before it becomes something else entirely. Some evidence of this is already being seen with the slow emergence of ‘Open Finance’, an idea that is building on the solid framework of open banking that would allow financial services to provide better access and services to consumers and businesses. Recent feedback from The FCA’s Call for Input on Open Finance shows it has the potential to unlock meaningful value for consumers, including increased competition, improved advice and greater access to a wider and more innovative range of financial products and services.

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Increased use of open finance services has the potential to provide vast opportunities for the retail industry, driving innovation forward even further and encouraging growth for the market. Access to an individual’s entire financial footprint, including pensions, mortgages, savings, insurance and credit will provide a great holistic views of consumers, which in turn allows for more tailored and personalised services to add value to customer experience.

Open Banking is still in its youth and has many places in which to develop and growth. Nevertheless, it has arguably kick started the beginning of a total transformation of financial services. Because of this, retailers would be wise to keep one ear to the ground to ensure they remain at the forefront of delivering on shifting consumer demands and meeting their needs. As Open Banking is so broad in it’s scope, retailers must focus on the capabilities that add the most value to their business. Developing integrated and safe ecommerce platforms, being open to partnerships and the opportunities they provide, as well as utilising in-depth customer data analytics as part of a personalised marketing approach are all key characteristics retailers should be strategically adopting in order to make the best of what Open Banking has to offer in the future.

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INTERVIEW

Commercial Bank of Ceylon: Seeing Through its Centenary Year by Tackling the Toughest Era Yet

As Sri Lanka’s largest private bank, Commercial Bank of Ceylon has always been at the forefront as a contributor to the national economy. Their vision is to be ‘the most technologically advanced, innovative and customer friendly financial services organisation in Sri Lanka,’ Global Banking & Finance Review editor, Wanda Rich recently caught up with Mr. S Renganathan, Commercial Bank of Ceylon’s Managing Director to find how they are achieving this.

We of course began by discussing the challenging period of the past year, and the steps ComBank has taken to meet the needs of businesses, customers and community during that time.

“Commercial Bank responded swiftly to the pandemic situation by launching a strategically executed action plan covering all crucial avenues,” Mr. Renganathan said. “Despite many challenges, the teams worked tirelessly to facilitate day-to-day operations of the bank without a pause. Branches and crucial departments continued their work according to new schedules and the others took up the challenge of working from home.

“We ensured that customers had access to their money in curfewimposed areas by deploying mobile ATMs. Commercial Bank was the first bank to launch its own loan facility with an attractive interest rate, especially for export-oriented SMEs and women-

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connected SMEs who were affected by the pandemic, followed by another loan scheme for micro businesses.”

The reality of the impact of COVID-19 also highlighted how seriously ComBank takes its role as a responsible lender. “The bank extended moratoriums on 81,387 loans with a total capital outstanding of Rs 443 billion during the first and second waves,” Mr. Renganathan explained. “The bank also provided new concessionary lending of nearly Rs 30 billion in 2020, its centenary year, to help Sri Lankans weather the impact of the COVID-19 pandemic. We ended the year as the most generous lender among the country’s private banks.

“The bank has also taken steps to reduce lending rates several times since the outbreak of the pandemic, and has reduced as much as 4% from some loan products during 2020.”

The other side of the coin is the management of day-to-day operations post-COVID, which has required some adaptive measures to be put in place.

“Commercial Bank was able to function during the entire duration of the lockdown despite the challenges encountered,” he told us. “I think it’s a testament to the robustness of our Business Continuity Planning (BCP). But a global pandemic of this magnitude teaches you many unique lessons to update, change and create new BCP measures, which the bank was swift to action.

“During the lockdown period, the branch and department network functioned to provide the maximum possible level of service to our customers. Our team ensured that the applications for moratoriums and working capital loans were processed swiftly, so that approvals could be obtained from the Central Bank faster and our borrowers could receive the funds early,” he continued. “We have had to make periodic adjustments to our operations and also, predictably, the operational performance has undergone some changes. The bank has had to incur many expenses which initially were not factored specifically into budgets, so naturally the expenditures are high.

However, the bank managed to record a very robust performance in 2020 due to our strategic planning process and our team’s ability to be more agile.”

With digitalisation at the heart of so much of what ComBank does, Mr. Renganathan described to us some of the initiatives it has taken in the drive towards a cashless society. “Our digital strategy includes committing investments into introducing revolutionary technology-based products and services,” he said. “A few such products and services are ComBank Digital, which is a state-ofthe-art omnichannel online banking platform; ComBank e-Slips; ComBank ePassbook, which was launched for the first time in South Asia, and ComBank Q+, the first QR-code-

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based app certified by LANKAQR, offering options for both retail customers and merchants. Our Flash Digital Bank Account is a revolutionary account that features a complete suite of financial management and financial wellness tools in one seamless application, which is also certified by LANKAQR. All recently launched point-ofsale (POS) machines issued by the bank are also QRcode-compatible.

“Demonstrating its innovative use of new-age communications, the bank also pioneered a groundbreaking product on the world’s most widely-used messaging platform, WhatsApp, to become the first Sri Lankan bank to offer banking services on this platform. Possibly the easiest and fastest form of contactless banking for smartphone users yet, Commercial Bank’s WhatsApp banking offers services to both account holders and non-customers, and importantly, facilitates the opening of accounts for those seeking to become new customers of Commercial Bank.”

Commercial Bank is proving itself a pioneer within the digital payment space, having spearheaded many initiatives and technological innovations for both retail and corporate customers, as Mr. Renganathan reveals.

“For businesses, the bank has effectively covered every segment of our customer base with comprehensive digital solutions for corporates, such as bulk payment platform

Paymaster, where you can make all your corporate payments at the click of a button, and Internet Payment Gateway (IPG) facilities. We are the market leader in providing payment solutions to the corporate sector.

“In addition to a variety of point of sale (POS) machines with many features for businesses, the bank has digital solutions for the micro, small and medium enterprises sector, having launched specialised payment solutions such as Simple Pay and Mini POS. Also, our strong affiliations with internationally-acclaimed service providers such as Visa, Mastercard, UnionPay, WeChat Pay and Alipay allow us to provide the best selection of services, wherever our customers are.

“Cybersecurity is a priority for us. The bank has ensured the security of our digital services with comprehensive security systems that are constantly upgraded. We also focus on building our portfolio of electronic products and services such as ATMs, cash deposit machines, cash recycler machines, automated cheque deposit machines, ABCs and Mini Digital Experience Zones, which mostly promote assisted automation targeted at the late-adapting, rural and less tech-savvy segments. The bank aims to achieve gradual migration of this customer segment into fully digital channels by first popularising these basic electronic channels.”

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Mr. Renganathan went on to explain some of these services in more detail.

“Our Mini Digital Experience Zones at selected branches are just one recent initiative to facilitate the evolving needs of the customers. These zones are strategically set up in the lobby area of a branch to be inviting to customers, and are equipped with smart touch panels carrying ‘how to use’ product demo videos. These units are equipped with smartphones and tablets with wi-fi access so anyone can experience the bank's digital offerings and onboard our digital platform, all under the guidance of digital assistants assigned to help customers familiarise themselves with our digital offerings.

“The Automated Banking Centres (ABCs) are another first introduced by the bank in the electronic space to help customers adopt digital channels.

These are located at our branches and some stand-alone points, and they offer basic digital banking services and allow customers to submit loan enquiries and FD requests.

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“We believe that these initiatives will act as catalysts in the electronic space and, over time, boost digital adoption among our client bases.”

ComBank’s most ground-breaking innovation is the ePassbook app, launched in 2016 as a pioneering product. It revolutionises the concept of the ‘Passbook,’ is free of charge and provides instant access to the customer’s accounts through a smartphone, dispensing with the requirement of holding a physical passbook or obtaining any paid banking facility such as online or mobile banking for enquiry purposes. It has now surpassed 1 million registrations and we asked Mr. Renganathan about what changes can be expected following the recent upgrade.

“The ePassbook app was upgraded recently with features including selfregistration for personal accounts, real-time transaction notifications, and a biometric login feature that enables account holders to use the app via face and fingerprint ID - all of which

significantly improve accessibility, versatility and security, and enhance user autonomy and convenience.

“The newly-introduced self-registration option, which is the main catalyst for the spike in downloads, is especially advantageous as it eliminates the need for account holders to visit their respective branches to activate the app,” he went on. “Another simultaneous upgrade made it possible for users to self-add, remove or group current accounts, savings accounts and credit cards in the ePassbook app.”

Development is continually ongoing and Mr. Renganathan assured us that additional features are in the works.

“Future enhancements to the app will include the possibility of viewing unlimited transaction history including unrealised cheques, account holds and the total overdraft limit for current accounts. The facility to view details of fixed deposit accounts and loans online, to keep track of details and operate the app in all three vernacular languages are also in the pipeline.

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“The app provides access to details of savings, current and personal foreign currency accounts, as well as credit cards on Android with Google Play and iOS-powered mobile devices. It acts as a single repository for multiple accounts enrolled by an account holder, with the capability of viewing each account separately.

“Users of the app may also label different accounts with preferred names or codes such as salary, petty cash, savings, entertainment and such for easy reference.

“At present, the app enables account holders to track account balances and transactions of the past 30 days in real time on their mobile phones or tablets from anywhere. The ComBank ePassbook app updates automatically whenever the user is online.”

one of the toughest and most unique years we’ve faced,” he said. “Despite the unforeseen events that arose from the pandemic and the challenges brought about by the ‘new normal,’ we are proud to have remained stable and profitable, which goes to show the resilience of the bank. 2020 was a very special year for the bank as we celebrated our one hundredth anniversary, so it was fitting that Commercial Bank demonstrated its strength during its centenary year.

2021 will be another challenging year with the third wave of the pandemic sweeping across the world, and especially aggressively in South Asia.

We’ll stay committed to serving our customers and the citizens, despite the challenging conditions.”

Mr. S Renganathan Managing Director Commercial Bank of Ceylon PLC

Finally, we spoke about Mr. Renganathan’s retrospective view of 2020 and how he sees 2021 panning out. “As companies the world over undoubtedly experienced, 2020 was

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Celebrating a Decade of Excellence Orbex:

Building Long-Lasting Client Relationships through Courtesy and Professionalism

Orbex is a forex broker that has been offering innovative trading technology and education for ten years, empowering investors through the responsible development of global online trading services.

Global Banking & Finance Review editor, Wanda Rich recently had a conversation with Mohammed Yaghi, Orbex’s Managing Director, to discuss how it came about, how it has positioned itself as a market leader, and to learn about some of the obstacles and achievements along the way.

“Orbex was created ten years ago because our founder saw a need for a truly ethical and transparent broker in this industry - one that puts the client at the centre of everything they do,” Mohammed said. “Over the last decade, we have built on that solid foundation to become a force within the financial space."

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“Orbex is now a fierce competitor when it comes to trading conditions and financial instruments, a valued source of market research and education and, above all, a global community of informed and responsible traders.”

That period of evolution has not been without difficulty, but Orbex has been up to the challenge. “Expanding into new markets is always a challenge as there are many variables to factor in.

Chief among those variables is how to introduce the company to the new market in a way that resonates with the region and addresses its primary values,” Mohammed explained. “There’s also the regulatory side of expansion.

Orbex cannot fully enter a new market without going through the proper steps to obtain the required licensing, as who you are regulated by is a significant testament to how you run your business. Therefore, while we may be ambitious and eager to enter new markets, timing the transition with all the necessary protocols is, of course, a tough - albeit necessary - challenge.”

And what of the more specific difficulties of the past year? “The pandemic, given its impact on the markets, has also been a challenge - one that has been a pleasure to tackle and overcome,” he said.

“The company immediately saw the importance of supporting our clients through this unprecedented time of increased volatility. To cope with this new normal that brought constant changes in price action and risk appetite, Orbex swiftly updated our technologies in order to ensure that the superior trading experience our clients were used to was not compromised, but rather improved to rise to the challenge of the new state of the markets. We also trained our support staff to be able to handle the complex queries that came along with the COVID-19 situation. As a result, we were successfully able to meet our clients’ needs and support their trading ventures throughout it all, which is always our number one priority, regardless of what is going on in the world.”

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It hasn’t all been about tackling adversity over the past decade, and Mohammed was keen to point out some of the other major highlights during Orbex’s years of operating. “Since our inception ten years ago, we’ve expanded our offices worldwide and now successfully operate across the MENA region, Asia, Africa, LATAM and of course, the EU. We’ve also received numerous awards and accolades over the years, from Best Education Provider to Best Forex Broker, and most recently, the Decade of Excellence Award from Global Banking & Finance Review. We are immensely proud of all these titles, but the latter is particularly significant for us as it truly represents the hard work and dedication we have put in throughout the years.

“Beyond that, perhaps one of the biggest milestones for Orbex was becoming multi-body regulated, in addition to being EU-regulated,” he went on. “To be able to say that you adhere to not one, but several of the industry’s strictest financial regulatory bodies is a badge of honour. It unlocks the potential to serve many more traders in all four corners of the globe, and it’s a true demonstration to clients everywhere that their safety and security come first.”

To distinguish itself from other financial trading companies, Orbex aims to offer a smooth and secure trading experience with highly competitive trading conditions. “We pride ourselves on consistently updating our systems to implement the latest and most sophisticated technologies in order to provide our clients with the superior and secure trading experience they deserve,” Mohammed said. “We offer fast, precise execution, tight spreads on a wide range of financial instruments and negative balance protection on all account types. Our research department is top-tier, publishing a large volume of daily market analysis content that is routinely shared across global financial outlets. That said, what sets us apart the most goes back to the essence of our creation – the ethos we mentioned earlier that values integrity and transparency above all.

“Orbex is a broker that serves you responsibly.

We are corporate and professional, but we are not a faceless conglomerate that treats clients like statistics. We put heart into every interaction with our traders, and that radiates throughout our entire trading community. It is this combination of humanity and professionalism that allows us to build long-lasting relationships with our clients.”

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When it comes to moving into new global market areas, he emphasises that communication with traders is the key. “As previously mentioned, Orbex is a very interactive trading community. Our greatest strength lies in how we communicate with each other,” Mohammed told us. “Therefore, when moving into new markets, the first thing we do is listen. We listen to what traders in the region lack, or crave, the issues they have, the improvements they would like to see, the values they hold most dear. And accordingly, we devise a plan that puts those needs first.

“We listen first, act second - and always with the strictest regulations at the centre of everything we do.”

Research and educational support maintain a foremost position in Orbex’s ethos, since they play such a key role in helping traders to operate successfully. “Indeed, education is everything, which is why we have a renowned research department that regularly contributes to the likes of Bloomberg, CNBC and Refinitiv Eikon,” Mohammed said. “Our team is varied, versatile and highly professional.

They work tirelessly to stay on top of the latest market updates and produce daily content covering all industry-relevant topics, including fundamental analysis, technical analysis, educational articles etc. This content is produced in every format, from videos and articles to eBooks and podcasts, and even voice notes on Telegram, in order to cater to a wide range of traders who consume information in different ways. The content is also localised for specific markets to provide traders in various regions with detailed information that is relevant to them.

“The Orbex research team is also a leading Elliott Wave provider. Most avid traders will know that Elliott Wave analysis is extremely popular, and yet very misunderstood. Therefore, to cater to the high demand for this analysis, we recruited some of the best Elliott Wave experts to join the team and provide daily EW updates on a wide range of financial assets.”

Other developments in the field include the increasing presence of social media, a valuable tool that has opened a direct line of communication between Orbex and its core client base around the world. “Each region is unique, and prefers its own selection of social platforms, financial instruments, trending topics and forms of content.

Therefore, social media has allowed us to us to interact with our clients in a way that is convenient and most useful for them,” Mohammed explained. “It helps us hear their concerns and listen to their suggestions, thus aiding us in the creation of relevant, region-specific content, ultimately enhancing their trading experience with Orbex.”

Ensuring that traders are receiving the best customer experience available is one clear way to remain competitive, and Mohammed filled us in on the ways the team is doing just that. “Orbex provides 24/5 support in a host of languages, across any medium the client prefers – live chat, email, phone call, social media,” he said. “Beyond that, as the demand in supporting our clientele rises, we consistently ensure that we are implementing the latest technologies and tools to provide our clients with the best trading experience possible.

“In fact, soon we will be launching new support centres that include comprehensive FAQs and full howto guides for all our services, as well as an automated chat bot system to streamline everyday queries. Our staff also undergoes frequent training to ensure they are equipped to support any client, regardless of the complexity of their request.

“In addition to all that, the Orbex culture means that we treat each and every individual with the utmost respect, professionalism and transparency, and the result is the world-class customer service experience that we are so proudly known for.”

With a successful ten years of growth already behind them, we asked Mohammed what he envisions for the next ten. “Orbex is already an established name, but in the next decade, our goal is to build on this presence and expand our reach internationally with more offices, more regulatory licenses and more new markets,” he said. “The next ten years will also see us continuing to enhance our trading environment with new technologies and innovations to provide our growing trading community with the consistent top-tier service they deserve.

“And finally, our long-term goal will forever be to continue our legacy of integrity and excellence by nurturing long-lasting relationships with our clients, as it is through them and their success that our purpose of serving traders responsibly is fulfilled.”

Mr. Mohammed Yaghi Managing Director Orbex

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Preparing for the Next Catastrophe: We’re Not Thinking Close to Big Enough Why Finance Organizations Must Ensure A Digital Future

As we enter a second year of living daily with the impacts of Covid, it’s been natural to think back about the enormity of unexpected change resulting just from the virus, aside from overwhelming cultural and political upheaval. Looking at pictures and articles from the first months of 2020 and earlier, it’s startling to contemplate what lay ahead at that time. There may have been hints about what was coming, but ultimately few of us had a clue.

The monumental disruption in the form of a pandemic has caused all business leaders to look at their organizations differently, starting with their workforce and the welfare of employees. But,

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equally important, it’s changed our understanding of what constitutes disruption. A merger, financial crisis, leadership issue or natural calamities all have been known potential disruptors within our crisis preparation.

We’ve now learned that we’re not thinking close to big enough; we realize there are dynamics that happening in the world that can upend an institution in previously unthinkable ways, challenging resiliency, contingency planning, financial strength and other foundational components. Combine that with the rapidly escalating intensity of competition, and we have no choice but to take our planning and resiliency investments to new levels.

As the leader of a corporate finance organization, my focus has now turned to a new urgent priority to enhance my firm’s ability to withstand the unthinkable: develop a clear path to a digital future that will generate more true predictive analysis, better quality data and better policy essential for the highest levels of resilience. We know that artificial intelligence, enhanced modeling, automation and richer analysis can be transformative to business operations. In a fundamentally disrupted environment, that information can be critical to navigating uncertainty with the best possible insight. To achieve this, companies must commit to invest seriously in technology and

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transformation, integrate technology experts into a finance organization to work alongside those with financial knowledge and insight, and commit to an equal investment in change management.

The quest for decision-ready data has been a path in corporate finance for years but there have been obstacles to getting there. In times when the cost of overhead organizations is being constantly questioned, senior leaders can be reluctant to invest the money and time and endure a sometimes painful period of change management to achieve benefits and efficiencies that are not always quantifiable well in advance. The last year, which demanded constant turn-on-a-dime decision making, should serve as fair warning that a commitment to enhanced technology can’t wait. My own company, in two weeks in March 2020, made a decision to repurpose $100 million in existing budget to guarantee all jobs for the first three months of the pandemic and initiate several other support programs, eliminating an enormous stress point for employees and allowing them to focus on serving clients without that worry. It took massive roundthe-clock analysis to support this decision, but we know next time we may not have even two weeks.

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Beyond the investment in actual technology solutions, it’s essential that finance organizations commit to integrate technology experts into their teams. An expert in technologies like Smartsheet or Tableau is not going to replace someone with deep experience in an area like auditing or tax, but that person can become an essential peer. You’ve got to play to people’s inherent competencies, and over time the integration and interaction of skillsets drives education, knowledge and apprenticeships that get you to nirvana. We’re seeing in real time the important impact of skillset diversity: we transferred into corporate finance a person who previously provided tech services to our government clients to advance an internal audit IT strategy performing compliance analytics, which has helped the business identify and mitigate operational risk. We’ve seen similar advances with tech staff who implemented automation to identify improper expenses or duplicate payments to vendors, and this is just the first wave of an advancing tide of improved capabilities.

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And, finally, success is dependent on committing to the people whose work integrates with the technology, people who are naturally going to worry about job security, skills deficits and the complexities of change. Leaders must not just explain but demonstrate the potential advantages of moving from manual tasks to higher level analytical work. Technology can enhance work life balance and flexibility, repurpose dollars to invest in training and education, and generate greater career mobility and greater satisfaction working in a more strategic realm. But with each advance, leaders first must first deliver those actual benefits to each team to create momentum for greater embracement of change. Seeing is believing.

Importantly, the impact of a strong progression toward a digital future goes well beyond internal benefits to a company. As external auditors understand and become confident in the capabilities of financial technology to reduce the

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potential for human error, their own work becomes more efficient with the capability to conduct their own analytics to help identify misstatements or unintentional or even intentional errors. Investors, too, want to see the benefits of removing costs while enhancing capabilities. When working capital management is stronger and talent is more lean in back-end operations and more advanced in the analytical reporting, you’re providing better information for an investor to understand the company's current and future operations.

The experience we’ve been living through for the last year will trigger many changes for companies – a rethinking of workplace flexibility, different benefits, changes in real estate usage, further investments in remote technology. But perhaps the greatest lesson of all is we now know things can get worse than ever imagined, and how fast it can happen.

We can’t let that lesson go to waste: the digital toolkit to manage a more resilient business never has been more essential.

Lloyd W. Howell, Jr. Chief Financial Officer Booz Allen Hamilton