The race to build a mind

Over 20 years ago, I sat in a lecture hall while a professor talked excitedly about artificial neural networks (ANNs) and their potential to transform computing as we knew it. If we think of a neuron as a basic processing unit, then creating an artificial network of them would be akin to multiplying processing power by several factors and replacing the traditional view of each computer having one central processing unit, or CPU.

I found the concept of modeling the neurons of the human brain compelling, but frustratingly inaccessible. For one thing: how? How exactly do we translate the firing of neurons, a complex electro-chemical event that is not yet fully understood, and apply it to computing? This is before we even get into neural communication, the coordinated activity of neural networks and the even more complex questions surrounding consciousness. How exactly do we get computers to ‘think’ in the same way that we do? Back then, I had a laptop that was an inch thick and capable of a relatively limited number of tasks. It seemed almost unfathomable to think that these ideas could be put into practice alongside the current incarnation of silicon-based chips.

It would take 10 years before a research paper from Google changed everything. In 2017, a team of researchers at Google published a paper with an unassuming title: Attention Is All You Need. Few could have predicted that this work would mark the beginning of a new epoch in artificial intelligence. The paper introduced the ‘transformer’ architecture – a design that allowed machines to learn patterns in language with unprecedented efficiency and scale. Within a few years, this idea would evolve into large language models (LLMs), the type of which was popularised by OpenAI’s ChatGPT. It was the foundation of systems capable of reasoning, translating, coding and conversing with near-human fluency. But this was not the first step.

The cost of developing AI is, by any measure, extraordinary

A year earlier, Google’s Exploring the Limits of Language Modeling had shown that scaling artificial neural networks – in data, parameters and computation – yielded a predictable, steady rise in performance. Together, these two insights – scale and architecture – set the stage for the era of generative AI. Today, these models underpin nearly every frontier of AI research. Yet their emergence has also brought about a deeper question: could systems like these, or others inspired by the human brain, lead us to artificial general intelligence (AGI) – machines that learn and reason across domains as flexibly as we do?

There are now two distinct paths of research for AGI. The first are LLMs – trained on huge amounts of text through self-supervised learning, they display strikingly broad competence in several key areas: reasoning, coding, translation and creative writing. The suggestion here – and a giant leap from lecture hall discussions about ANNs – is that generality can emerge from scale and architecture.

Yet the intelligence of LLMs remains disembodied. They lack grounding in the physical world, persistent memory, and self-directed goals. And this is one of the central philosophical arguments that hampers the legitimacy of this path for AGI. Our ability to learn is arguably grounded in experience, our ability to perceive the world we live in and actively learn from it. If AGI ever arises from this lineage, it may not be through language models alone, but through systems that combine their linguistic fluency with perception, embodiment, and continual learning.

The other path
If LLMs represent the abstraction of intelligence, whole brain emulation (WBE) is its reconstruction. The concept – articulated most clearly by Anders Sandberg and Nick Bostrom in their 2008 paper Whole Brain Emulation, A roadmap – envisions creating a one-to-one computational model of the human brain. The paper describes WBE as “the logical endpoint of computational neuroscience’s attempts to accurately model neurons and brain systems.” The process, in theory, would involve three stages: scanning the brain at nanometre resolution, converting its structure into a neural simulation, and running that model on a powerful computer.

If successful, the result would not merely be artificial intelligence – it would be a continuation of a person, perhaps with all their memories, preferences, and identity intact. WBE, in this sense, aims not to imitate the brain but to instantiate it.

Running from 2013 to 2023, a large-scale European research initiative called the Human Brain Project (HBP) aimed to further our understanding of the brain through computational neuroscience. AI was not part of the initial proposal for the project, but early successes with neural net deep learning inarguably contributed to its inclusion.

A year before the project started, in what is often referred to as the ‘Big Bang’ of AI, the development of an image recognition neural network called AlexNet rewrote the book on deep learning. Leveraging a large image dataset and the parallel processing power of GPUs was what enabled researchers at the University of Toronto to train AlexNet to identify objects from images.

As the 10-year assessment report for the HBP concludes, researchers realised that “deep learning techniques in artificial neural networks could be systematically developed, but they often involve elements that do not mirror biological processes. In the last phase, HBP researchers worked towards bridging this gap.” It is this, the mirroring of biological processes, which the patternist philosophy wrestles with. It is the idea that things such as consciousness and identity are ‘substrate independent,’ and are held in patterns that could successfully be emulated by a computer.

As Sandberg and Bostrom noted, “if electrophysiological models are enough, full human brain emulations should be possible before mid-century.” Whether realistic or not, this remains one of the few truly bottom-up approaches to AGI – one that attempts to build not a model of the mind, but a mind itself.

It is perhaps no surprise that LLMs have taken off when WBE still seems to be in the realm of science fiction. It is undoubtedly a harder sell for investors, no matter how alluring to egocentric billionaire types the idea of being able to copy yourself may be.

The price of intelligence
The cost of developing AI is, by any measure, extraordinary. The Wall Street Journal recently reported that Google will invest $15bn in India for AI infrastructure over the next five years. The Associated Press indicated that Meta has struck a deal with AI company Scale and will invest $14.3bn to satisfy CEO Mark Zuckerberg’s “increasing focus on the abstract idea of ‘superintelligence’” – in other words, a direct pivot towards AGI.

These are big numbers, especially considering that the EU awarded Henry Markram, co-director of the HBP, just €1bn to run his 10-year mission to build a working model of the human brain. Beyond corporate announcements, research institute Epoch AI reports that “spending on training large-scale ML (machine learning) models is growing at a rate of 2.4x per year” and research by market data platform Pitchbook shows that in 2024 investment in generative AI leapt up 92 percent year-on-year, to $56bn.

For investors, the risk profile of AGI research is, to put it mildly, aggressive. The potential ROI depends not only on breakthroughs in model efficiency, but also on entirely new paradigms – memory architectures, neuromorphic chips and multimodal learning systems that bring context and continuity to AI.

Bridging two hemispheres
Large language models and whole brain emulation represent two very different roads towards the same destination: general intelligence. To my mind, it seems that neither one can do it alone. LLMs take a top-down path, abstracting cognition from the patterns of language and behaviour, discovering intelligence through scale and statistical structure. WBE, by contrast, is bottom-up. It seeks to replicate the biological mechanisms from which consciousness arises. One treats intelligence as an emergent property of computation; the other, as a physical process to be copied in full fidelity.

Yet these approaches may ultimately converge, as advances in neuroscience inform machine learning architectures, and synthetic models of reasoning inspire new ways to decode the living brain. The quest for AGI may thus end where both paths meet: in the unification of engineered and embodied mind.

Spending on training large-scale machine learning models is growing at a rate of 2.4x per year

In attempting to answer what makes a mind work, we find that the pursuit of AGI is, at its heart, a form of introspection. If the patternists are right and the mind is substrate-independent, a reproducible pattern rather than a biological phenomenon, then its replication in silicon will profoundly alter how we view the ‘self’ if we ever do replicate the mind in a machine. That said, if the endpoint of humanity is being digitally inserted into a Teslabot to serve out eternity fetching a Diet Coke for the likes of Elon Musk, then it might be more prudent to advise restraint.

Jensen Huang, CEO of Nvidia believes that “artificial intelligence will be the most transformative technology of the 21st century. It will affect every industry and aspect of our lives.” Of course, as the man leading the world’s foremost supplier of AI compute chips, he has a vested interest in making such statements.

Perhaps it is best then, to temper such optimism and leave you with the late Stephen Hawking’s warning: “success in creating AI would be the biggest event in human history. Unfortunately, it might also be the last, unless we learn how to avoid the risks.”

Fintech fortunes

In the mid-2010s, Europe’s fintech sector was booming. A novel band of financial technology companies were rewriting the script on everything consumers thought they knew about banking. Buzzy names with swelling valuations stole the spotlight from traditional lenders – in fact, in the second half of the 2010s, fintechs raised record capital. Venture capital funding grew from $19.4bn in 2015 to $33.3bn in 2020, according to a report by McKinsey & Company.

In recent years, the feverish rush to fintech has cooled slightly. But one company that remains as ambitious today as it was in its exhilarating early years is Revolut, the app-based bank and current holder of the title of Europe’s most valuable fintech. Revolut has successfully made the leap from start-up to unicorn to profit-turning institution. In 2024, its profits more than doubled to £1bn, and more recently customer numbers have surged to 65 million. It is clear that Revolut CEO and co-founder Nikolay Storonsky is doing something right.

Founded in 2015, Revolut started its days as a pre-paid card with free currency exchange. After years of experimentation in new verticals, alongside steady growth of the bank’s main operations, Revolut now offers everything from cryptocurrency trading to in-app eSIMs for travellers. Indeed, Storonsky has stated he wants to create the “Amazon of banking.” While Revolut has taken a ‘jack of all trades’ approach, the caveat is that Storonsky expects to be master of all.

While Revolut’s success so far is undeniable, global banking domination is not a given. Banking licences have not been easy to come by, and, as with many ambitious, fast-growing tech companies, ex-employees have complained of an excessively demanding workplace culture. What’s more, after a secondary share sale bumped the firm’s valuation up to $75bn over the summer from $45bn the year before, some critics are calling Revolut’s price tag into question.

Yet Storonsky continues to set his sights high, targeting continued innovation in new verticals and plans for geographic expansion, too. Does he have what it takes to build the world’s leading financial services provider?

A start-up is born
The collapse of Lehman Brothers in 2008 sent shockwaves across the global financial services sector. For Storonsky, it had a significant, personal impact. Born in Russia, Storonsky moved to the UK in 2004 with a degree in general and applied physics from the Moscow Institute of Physics and Technology and a degree in applied economics and finance from Moscow’s New Economic School. There, he soon began working for the lender as a derivatives trader. When Lehman Brothers filed for bankruptcy, Storonsky was stunned. “It was a big and powerful investment bank, so the announcement came as a shock,” he told CNBC. “We were told without much warning, and it seemed to happen quite quickly.”

Banking has historically avoided disruptions by technology, but that is all about to change on a big scale

Storonsky told the Financial Times in an interview that the crisis not only cost him around half a million pounds, but it also taught him the value of backing every decision with data and logic. After moving to Credit Suisse, where he worked from 2008 to 2013, Storonsky began to hatch an idea to simplify financial services through an easy-to-use app that would reduce fees when spending in different currencies. In 2015, he co-founded Revolut with British-Ukrainian Vladyslav Yatsenko, a software developer who cut his teeth at UBS and Deutsche Bank, and who remains the company’s chief technology officer today.

Outside of Revolut HQ, similar innovations in financial technology were unfolding. The global financial crisis shook consumers’ confidence in the biggest banks, leading to an upswell in support for a new generation of tech-forward digital banks – not only Revolut, but also Germany’s N26 and Fidor, Brazil’s Nubank and America’s Chime. These firms promised convenience, improved user experience and the agility needed to chop and change their services as required. Many of them were founded by the very employees who were left high and dry after the collapse of Lehman Brothers – and who, like Storonsky, dreamt of something better. As he told CNBC, “A number of successful entrepreneurs rose from the ashes who were pretty disillusioned with the financial system.”

Bet on it
Following its launch, Revolut experienced rapid growth. In 2018, Storonsky announced a cash injection of $250m that propelled the fintech’s valuation to more than $1bn, making it Britain’s first digital bank unicorn – and one of the fastest tech companies in Europe to reach unicorn status.

Even then, he hinted that Revolut was nowhere near finished. “Our focus, since we launched, has been to do everything completely opposite to traditional banks,” he said in a statement at the time. “We build world-class tech that puts people back in control of their finances, we speak to our customers like humans and we’re never afraid to challenge old thinking in order to innovate.

“Banking has historically avoided disruptions by technology, but that is all about to change on a big scale,” Storonsky said, taking aim at the banking establishment. His vision for an alternative global banking system – one where, “Anyone in the world can just download the Revolut app and set up a local bank account to access any services they need,” as he told Business Insider in 2017 – is grounded in an approach that ensures the company never stands still. This is most evident in Revolut’s engine for growth in new verticals: its ‘new bets’ division.

‘Move fast and break things’ is the Mark Zuckerberg-coined ethos that tech companies have long lived and breathed, and Revolut is no different. The lender is known for its ability to quickly launch into new revenue streams – everything from mobile phone plans to an air mile points offering.

These have the potential to become quick moneymakers for the business, with cryptocurrency trading being a case in point. The division helped to boost Revolut to its first annual profit in 2021 as retail traders jumped at the chance to join in the crypto boom. “Nikolay Storonsky’s leadership of Revolut highlights how speed and adaptability can really define success in fintech,” Ed Gibbins, co-founder and CEO of ChaseLabs, an AI sales development system, told World Finance. “His approach reflects a deep understanding of tech disruption: launch quickly, scale globally, and then refine using real user feedback. This ability to treat global markets as testing grounds means Revolut can adapt features faster than rivals and align its offerings closely with consumer demand.”

Each ‘new bet’ at Revolut begins with a small team of around 10 people led by an employee with a strong entrepreneurial background, as reported by Sifted earlier this year. With a budget of around £2m to £3m, they work to build experimental products on tight timelines of just 18 months, though many have been launched even more quickly.

By moving faster than traditional banks, and even many challengers, Revolut has built a reputation for agility that resonates with tech-savvy consumers, Gibbins explains. “The strategy of rapid feature deployment and constant iteration allows the company to test ideas across markets and double down on what works. This cycle of innovation and responsiveness has enabled Revolut to outpace competitors and strengthen its position as a leading player in global fintech,” Gibbins said.

If a new bet makes money, it’s scaled up; if it doesn’t, it is either tweaked, scaled down or ditched. To date, 45 ‘new bets’ have been approved, with some of these still in the development pipeline, a Revolut spokesperson told Sifted. They described the unit as operating “on a venture capital-inspired model.” Storonsky is no stranger to VC. In 2022, he started up his own VC firm, QuantumLight, which uses an AI model to fund fintech and related start-ups.

Revolut’s agility and its comprehensive offering are key selling points among customers. “Revolut’s rise has been driven by a clear focus on tech-savvy consumers who expect more than traditional banking can deliver,” Michael Foote, founder of Quote Goat, an insurance comparison tool, told World Finance. “By combining everyday money management with trading and payments inside one app, the company positions itself as a lifestyle tool rather than a conventional bank. This multifunctional approach has given it strong appeal among younger customers who value speed, convenience, and variety without juggling multiple providers.”

As of September 2025, Revolut said it had surpassed 65 million customers worldwide. Its success has driven financial winnings for Storonsky, too, who is thought to own around a 25 percent stake in Revolut. According to Forbes, he has a net worth of $7.9bn.

Growing pains
While Revolut can boast growing customer numbers and profits, the firm’s financial success may disguise challenges that have dented its reputation. For example, Revolut’s aggressive corporate culture has come under intense scrutiny in recent years, with some former employees claiming they were set unachievable targets, forced to do unpaid work and put under enormous pressure.

For many years, the company’s tough culture was an open secret. “We are not about long hours – we are about getting shit done,” Storonsky explained to Business Insider in 2017. “If people have this mentality, they work long hours because they want it.”

The company has thousands of reviews on Glassdoor, an employer review site. Even with an overall rating of 4.0, as of October 2025, reviewers frequently mention a lack of work-life balance and management’s prioritisation of targets above all else. However, many reviewers appear to recognise that while the environment at Revolut is not for everyone, some thrive in its high-pressure conditions.

“No one is sitting there telling them they have to work long hours,” Storonsky continued telling Business Insider. “They are really motivated, really sharing the vision of where we want to go and as a result, they work long hours – they work at least 12 or 13 hours a day. All the key people, all the core team. A lot of people also work on weekends.”

Since that interview, Storonsky has claimed that changes have been made. “We are a different company than we were two to three years ago,” he said in a 2019 interview with Reuters. “We have learned lessons.” But in 2023, still seeking to address the feedback, the firm assembled an internal team to track whether its employees were being ‘inclusive,’ ‘approachable’ and ‘respectful,’ the Guardian reported, encouraging a more ‘human’ approach.

Francesca Cassidy, editor of Raconteur, a business news website, questioned whether change would really be effective if it wasn’t happening from the top. “Storonsky wants Revolut to be the ‘Amazon of banking.’ In pursuing this objective, he works tirelessly and expects much the same from his colleagues. With such a dedicated, driven character at the helm, it is little wonder that Revolut’s culture has developed as it has,” she wrote in an opinion piece.

Yet the company’s plans to revamp performance reviews and launch a recognition and reward programme, “do little to address the high-performance culture that seems to be the source of much of the negative feedback,” Cassidy wrote. “How can employees be expected to pour their energy into being pleasant, collaborative colleagues if they are overworked, under stress and burnt out?”

In addition to a thorny working culture, Revolut has for years battled with a slow approval of its full UK banking licence. In 2018, the company gained its EU banking licence through Lithuania, but after a three-year application process that finally resulted in approval in July 2024, Revolut’s full UK banking licence was still being held up by regulators’ concerns at the time of publishing. The Bank of England has highlighted concerns over the start-up’s ability to maintain its risk management controls in line with its rapid international expansion, the Financial Times revealed.

Storonsky has admitted that not prioritising securing a full UK banking licence in Revolut’s early stages, and instead going all-in on growth, was a rare misstep for the business. A full UK banking licence will allow Revolut to offer a broader range of financial products and services. For example, it will finally be able to enter the UK lending market, allowing it to compete more directly with traditional banks in areas like mortgages and savings accounts.

Equally as importantly, the approval could open the door to further licences in countries including the US, Australia and Japan. It could also be seen as a stepping stone to the company’s stock market flotation, which is likely to be in London or New York.

Storonsky’s side hustles
While Storonsky has global ambitions for Revolut, his focus isn’t narrowed to the digital bank alone. QuantumLight, his venture capital firm, this year announced the close of its inaugural $250m fund. Created with an aim of backing ‘exceptional’ founders across AI, web3, fintech, software as a service (SaaS) and healthtech,

QuantumLight is further evidence of Storonsky’s obsession with data. The VC is described as, “on a mission to bring scientific precision to venture capital.”
“Our ambition is to build the world’s best systematic venture capital and growth equity firm,” Storonsky said in a statement. QuantumLight is also a handy promotional vehicle for Revolut. The business releases public ‘playbooks’ that promote Revolut’s expertise in order to help founders replicate its successes.

Its most recent launch was Hiring Top Talent. Co-authored by Storonsky, the playbook is designed to share the operating principles Revolut developed to ‘systematically scale world-class teams.’ It promises to offer a ‘blueprint’ for implementing the structured recruitment approach behind Revolut’s ‘hiring engine’ that helped the company scale to more than 10,000 employees in just 10 years.

“Our goal is to make the invisible operating systems behind iconic companies like Revolut visible and replicable,” said Ilya Kondrashov, CEO of QuantumLight. “Founders shouldn’t have to reinvent the wheel when it comes to building high-performing teams. By sharing these tools and frameworks, we’re helping scale-ups move faster from day one.”

Beyond venture capital, Storonsky has also shown a penchant for the finer things with Utopia Design, a luxury travel company that Forbes revealed he had quietly set up in 2023. Building on a personal passion for kite surfing, the project includes high-end luxury villas in destinations including the Dominican Republic, Brazil and Barcelona.

While these passion projects have the potential to line Storonsky’s pockets, his main moneymaker continues to be Revolut. In fact, he is said to have set up a multibillion-dollar payout if he can catapult the fintech’s valuation to $150bn, the Financial Times revealed. The deal, similar to one approved by Tesla’s board for Elon Musk, would offer Storonsky shares in Revolut, paid out in stages, that could be equal to a further 10 percent stake.

Next stop: global domination
Back in 2019, Storonsky said Revolut’s success would hinge on whether it could gain enough customers. “The whole idea was we provide the product for free, then we cross-sell other services. So we just need to have large customer numbers,” he said in an interview with CNBC.

This year, he set out his aim to hit 100 million retail customers globally by mid-2027 and to enter more than 30 new markets by 2030, becoming “the world’s leading financial services provider.”

“Our mission has always been to simplify money for our customers, and our vision to become the world’s first truly global bank is the ultimate expression of that,” Storonsky said. Alongside the announcement, Revolut noted that it had earmarked $500m to accelerate its operations in the US. The company’s US CEO confirmed reports that it is looking into whether to apply for its own banking licence in the US or acquire a US bank, which would allow it to expand more quickly.

Overall, Revolut is investing $13bn over the next five years in its global expansion – which continues apace. The firm’s launch in Mexico is expected in early 2026, and an opening in India is also on the cards in the not-distant future. A new global tech hub in the Philippines was set up to support operations in Australia and New Zealand, where Revolut is seeking to obtain banking licences. The company is also beginning to make its first push into Africa, with South Africa in its sights, and it has received an in-principle licence in the UAE to facilitate an expansion into the Middle East. Reports have even surfaced that Revolut is mulling a move into China.

Meanwhile, Revolut’s ‘new bets’ unit is likely to continue cooking up new financial products to explore, but what those will be, exactly, is less clear. In September 2025, a company announcement revealed that the main areas of focus would include AI and private banking. However, if Storonsky’s plans to continue opening in new markets is successful, these new verticals may need to be tailored to the countries in which they are launched, as regulatory requirements could vary region to region. While this could create opportunities for unique products, it also has the potential to take the wind out of the division’s sails as more red tape arises.

“Nikolay Storonsky’s strategy has centred on rapid global expansion and aggressive feature rollout,” Foote said. “The combination of constant innovation and international reach has set the business apart, showing how fintechs can compete with traditional banks by being faster to market and more responsive to customer demand.”

Despite Revolut’s boundless appetite for growth and its achievement of profitability, there are still worries in some corners that the company’s $75bn price tag is too high. However, if Storonsky can pull off his ambitious plans for global expansion and continue to bring to market exciting new products, there is no doubt he will silence the critics.

The great big stablecoin bet

On election night in November 2024, the US crypto industry enjoyed a rare moment of euphoria, with investors celebrating the arrival of the first truly crypto-friendly administration in American history. Bitcoin climbed to a record high of over $75,000. Crypto-linked equities rallied sharply. Donald Trump was hailed as the first American leader who wholeheartedly believed in digital money – and with reason. “If crypto is going to define the future, I want it to be mined, minted and made in the USA,” he had declared on the campaign trail.

Only a few months later, President Trump would deliver on that promise, taking the crypto community to the promised land. Last July, he signed the ‘Guiding and Establishing National Innovation for US Stablecoins Act’ – dubbed the GENIUS Act – which ushered in the first comprehensive federal framework for stablecoins: dollar-pegged digital tokens that underpin the crypto economy. It was a landmark moment for digital money, signalling both opportunity and risk.

Private money, public worries
The Act lays down strict rules for issuers of dollar-backed digital tokens, requiring full, verifiable reserves held in cash or short-term government bonds (Treasurys), monthly attestations of these holdings, clear redemption obligations, and compliance with anti-money-laundering and consumer-protection rules. Crucially, it treats stablecoins as payment instruments rather than securities, putting an end to regulatory strife and removing litigation risk for issuers. “We are witnessing a shift of stablecoins from simply being ‘crypto’ or ‘digital currency’ to being core payments infrastructure,” says Mike Hudack, co-founder of Sling Money, a crypto-enabled money transfer app that leverages stablecoins.

Central bankers warn that a widespread shift to stablecoins could reduce their control over money creation

Underneath the exuberance lies a deeper strategic calculation: a nod to innovation, but also a deliberate alternative to a central bank digital currency (CBDC). One of Trump’s first actions in his second term was banning US authorities from issuing a digital dollar. By rejecting a government-run digital dollar, a project largely seen as a legacy of the Biden administration, Washington effectively outsourced digital money to the private sector – a move that blends ideology, market pragmatism and politics in equal measure. White House officials have argued that a digital dollar would have placed the government too close to citizens’ wallets, risking accusations of financial surveillance. By contrast, stablecoins offer a market-driven model for digital payments while maintaining the global dominance of the dollar and preserving US financial hegemony in a fast-digitising world. Roughly 99 percent of stablecoins are currently denominated in dollars, meaning that every transaction in them reinforces the greenback’s global reach.

The choice also reflects the administration’s ideological aversion to expanding federal control over money – an issue that galvanised both libertarians and the business community during the campaign. “A CBDC would concentrate financial power within the government, something this administration was never likely to endorse,” says Maghnus Mareneck, co-CEO of Cosmos Labs, a US blockchain firm behind a blockchain interoperability protocol used by banks. “The administration recognises that stablecoins can modernise the dollar without replacing it.” The legislation was greeted with enthusiasm by crypto firms, long frustrated by years of regulatory ambiguity. Many argued that the Securities and Exchange Commission (SEC) had crippled the industry with regulatory overreach. During his campaign, Trump had pledged to fire Gary Gensler, the Biden-appointed SEC chairman who had pioneered crypto regulation. Gensler stepped down in January, despite his term being scheduled to end in 2026, paving the way for a shift in the agency’s regulatory mindset. In the months following the Act’s passage, the stablecoin market exploded. Once a niche market, total stablecoin capitalisation surpassed $300bn last October, expanding twice faster than the crypto sector, while Citi analysts estimate that it will reach $4trn by 2030. Tether, the dominant dollar-based stablecoin issuer, is seeking up to $20bn of new capital in its latest funding round, which would bring its valuation close to the $500bn threshold.

Critics, however, have focused on the act’s lenient treatment of the risky aspects of stablecoins. “What the Act does is vastly expand the network effects that make it easier to launder money and operate in the underground economy. It is important for the government to be able to monitor and audit transactions, and the bill is very light on that,” says Professor Kenneth Rogoff, who teaches international economics at Harvard University and has served as Chief Economist of the IMF. “It does not guarantee timely redemption or provide federal insurance, and it lacks clear rules for dispute resolution, unauthorised transfers, or fraud recovery. Oversight is fragmented across state and federal channels, creating space for inconsistent enforcement and charter shopping,” says David Hoppe, founder of the US law firm Gamma Law, which specialises in cases involving digital assets.

Banks on guard
For the banking sector, the rise of state-approved stablecoins poses both opportunity and existential risk, notably through disintermediation. Few stablecoins currently pay interest, yet if issuers begin offering yield and businesses adopt them for payrolls, trade and settlements, deposits could drain from banks, weakening their traditional model of deposit-funded lending and threatening credit creation. Their balance sheets, already squeezed by digital payment platforms, could shrink further. Up to $6.6trn in deposits could leave bank coffers if crypto exchanges are allowed to offer interest payments or similar financial incentives, estimates a recent US Treasury report, a prospect US banks are urging policymakers to prevent.

Banks may look to position themselves as the infrastructure and control layer for stablecoin custody

Legacy lenders are taking a cautious approach, recognising they still retain certain advantages. “If banks issue their own stablecoins directly, they would be safer, because they have direct access to central bank reserves,” says Lucrezia Reichlin, an economist at the London Business School. JPMorgan Chase and Citi are exploring issuance of their own dollar-pegged payment tokens, while nine European financial institutions, including UniCredit and ING, have a euro-denominated stablecoin in the pipeline. “Banks may look to position themselves as the infrastructure and control layer for stablecoin custody, settlement, and on-chain treasury, providing KYC, segregation, and policy controls, so they can capture fee revenue as liquidity and payments migrate on-chain,” says Susana Esteban, Managing Director of the Blockchain and Digital Assets practice at FTI Consulting, a US business consultancy firm. Their end game, she adds, could be tokenised deposits while offering the same ‘24/7, programmable experience’ that stablecoins offer.

At stake is not merely efficiency but sovereignty. The growing role of privately issued dollars could diminish the influence of most central banks, transforming the architecture of international finance. “Stablecoins do not create base currency, so they don’t directly erode the Federal Reserve’s ability to set short-term rates or influence market liquidity,” says Jonathan Church from TransferMate, a fintech payments infrastructure firm. Yet central bankers warn that a widespread shift to stablecoins could reduce their control over money creation and interest-rate transmission, forcing monetary policy to operate through less predictable channels. As more money circulates outside the regulated banking system, interest-rate adjustments might take longer to filter through the economy. The governor of the Bank of England, Andrew Bailey, has recently warned that stablecoins could “separate money from credit provision,” as non-banks assume a greater role in financial intermediation.

Many in Europe appear to be focused on protecting banks rather than embracing technological innovation

International payments group Swift is also racing to adapt, building a shared blockchain ledger with Bank of America, Citi and NatWest to facilitate transactions, notably settlement of tokenised assets, including stablecoins. The rise of stablecoins threatens Swift’s traditional role by allowing instantaneous transfers that bypass intermediaries. Transactions that once took several days and required multiple compliance checks can now occur within seconds, disrupting decades of financial infrastructure building. Swift’s fight for survival serves as a metaphor for the whole financial system. In a world of programmable, borderless money, legacy institutions must evolve or risk irrelevance.

The Trump effect
As with much of the Trump presidency, the boundary between public policy and private interest is blurred. Members of the President’s family have launched crypto ventures, including World Liberty Financial, issuer of the USD1 stablecoin, and American Bitcoin, a mining company co-founded by Donald Trump Jr and Eric Trump. A meme-token, $TRUMP, is named after the President himself. Such interweaving of political and commercial interests is hardly new for the Trump administration, but the stakes are higher in this case. Stablecoins, unlike hotels or golf courses, touch the foundations of the financial system.

For supporters, the symbolism is potent: the self-styled deal-maker who once built skyscrapers now aims to anchor American influence in digital money. Critics argue that this alignment of public policy with private profit risks eroding confidence in the neutrality of US financial regulation. Lawmakers and ethics experts have called for clearer safeguards, including restrictions on digital-asset ownership by politicians and senior officials and stronger blind-trust requirements. “The president directs agencies responsible for implementing the Act, while his family benefits from a company whose success depends on those same regulations,” says Gamma Law’s Hoppe. “Even if lawful, such circumstances create the perception that private gain could influence public policy, which risks undermining confidence in fair enforcement and market integrity.”

Yet for now, the administration appears unfazed. In Washington’s calculus, the digital future of money must be denominated in dollars – even if those are minted by private actors. In that sense, the GENIUS Act is a geopolitical statement. Both officials and Trump family members frame the policy as a response to de-dollarisation efforts led by China. “Crypto is actually going to be the thing that preserves dollar hegemony around the world,” said Donald Trump Jr at a crypto conference in Singapore, adding: “As stablecoins start becoming the markets and treasuries, that’s going to replace China and Japan and some of these places that say, ‘You know what? We don’t want America to have that power anymore.’”

China’s digital yuan gamble
One way China is seeking to undermine the dollar is by rolling out its CBDC, an effort intensified after sanctions against Russia targeted Chinese banks accused of helping Russia secure weapons parts. Beijing has also encouraged the use of its cross-border payments system, Cips, while overseas lending in renminbi has also increased dramatically, with outbound renminbi loans, deposits and bond investments by Chinese banks quadrupling since 2020. China is also a main driver behind m-CBDC Bridge, a multi-CBDC platform that facilitates cross-border payments, controlled by the central banks of China, Hong Kong, Thailand, Saudi Arabia and the UAE.

“China’s ambition is not to replace the dollar or make the yuan an alternative to it. They know that it would be unrealistic,” says Reichlin, the economist from London Business School. “But they want to defend the payment system in their financial ecosystem and one way to do it is to control the rails for cross-border payments via digital solutions.”

China approaches stablecoins with much more caution. Last summer, the Hong Kong Monetary Authority started accepting applications for stablecoin issuers, a move interpreted as China’s response to the US GENIUS Act. Chinese officials argued that China should respond to US promotion of stablecoins with a renminbi-pegged stablecoin that would boost the yuan’s use abroad. Since then, several Chinese regulators, including the country’s central bank, have poured cold water on yuan-based stablecoins, citing concerns that private stablecoins could undermine the CBDC. The regulatory crackdown forced Chinese tech giants such as Ant Group and ecommerce group JD.com, expected to participate in Hong Kong’s pilot programme, to pause their stablecoin issuance plans. “Beijing wants every digital yuan transaction, whether it is domestic or international, to move through systems it can oversee. Stablecoins inherently create alternative payment networks that the state cannot easily legislate, and that introduces risk and potential fragmentation of issuance for this government,” says Mareneck of Cosmos Labs, an expert on Asian stablecoins.

Europe accelerates its de-dollarisation efforts
The US drive for stablecoin supremacy has also unsettled European policymakers and the European Central Bank (ECB), which is pressing ahead with the introduction of the digital euro. Despite being the first major economic power to establish a comprehensive stablecoin regulatory framework with its Markets in Crypto Assets regulation (MiCA), the bloc does not currently prioritise stablecoins. Experts warn that Europe risks repeating past mistakes by over-regulating a nascent market, allowing American platforms to capture it. “MiCa has a number of restrictions and many in Europe appear to be focused on protecting banks rather than embracing technological innovation. Stablecoins enable easy access to US short-term government bonds from all parts of the world, which also diverts capital flows from the EU and the UK to the US,” says Gilles Chemla, who teaches finance at the Imperial Business School and is co-director of the university’s Centre for Financial Technology. Concerns over sovereignty are driving the EU’s CBDC programme, as it seeks to reduce reliance on US payment companies such as Visa and Mastercard.

However, experts question whether this goal is achievable if dollar-denominated stablecoins are widely used in Europe, and whether a digital euro is the most effective tool to address the issue. “The digital euro in its current design is narrowly focused on the euro area as a means of payment only for private households and with holdings limited to €3,000, while stablecoins offer an international payment scheme that can be used by global companies,” says Peter Bofinger, an economist at Würzburg University and former member of the influential German Council of Economic Experts. A better option for the EU, Bofinger adds, would be integration of its existing national payment systems.

If dollar-backed stablecoins are adopted by the public in the Eurozone, the ECB will be faced with stark choices. “There is a risk of dollarisation. Dollar-backed stablecoins could become what the eurodollar market is now: a big offshore dollar-based market,” says Reichlin from the London Business School, a former ECB director general of research, adding: “If Europe doesn’t develop euro-pegged stablecoins, the old payment system could be dollarised, especially large cross-border payments. Europe is complacent about this risk.” Others, however, consider warnings about dollarisation to be exaggerated. “The ECB is raising the risk of dollarisation to justify the need for a digital euro,” says Bofinger. “There’s no such risk, because currencies are like languages: to switch from a domestic currency to a foreign one, the domestic currency has to be in a terrible state, like in some Latin American countries.”

Another concern for the ECB is that dollar-backed stablecoins could erode the euro’s global role, while their widespread adoption in Europe might weaken the ECB’s control over monetary policy. “Every tokenised dollar transaction strengthens the dollar’s global position, even beyond US borders. A euro CBDC cannot match that momentum, and will likely be slower, more limited, and less compatible with global blockchain systems,” says Mareneck of Cosmos Labs. “It was a mistake of the ECB to think of CBDCs as an alternative to private stablecoins. These are two different things,” Reichlin adds. “CBDC is similar and complementary to cash, whereas stablecoin is complementary to deposits. There is no reason why CBDCs and stablecoins could not coexist.”

Bubbly stuff
Almost two decades after the 2008 credit crunch, policymakers are still haunted by its effects. Stablecoins are expected to be backed with safe, liquid assets and users will be able to redeem their stablecoins at par. “Because stablecoins are not lent out the way bank deposits are, you can argue that in some respects they are likely to be at lower risk than bank deposits, though governments are more likely to bail out banks than stablecoin companies,” says Paul Brody, a blockchain expert at professional services firm Ernst & Young. Yet economists warn that stablecoin issuers effectively function as shadow banks, but without the same capital requirements, access to central bank liquidity or oversight from regulators. Should confidence in their reserves falter, the unwinding could spill into bond markets and cause liquidity crises, echoing panic seen in 2008 and 2020, and once again forcing governments into politically unpopular bailouts. “If a major stablecoin issuer is unable to meet redemptions or discloses reserve weaknesses, trust could unravel quickly, prompting mass withdrawals. The impact would extend beyond digital assets, affecting wider financial markets that rely on tokenised instruments for settlement and liquidity,” says Krishna Subramanyan, CEO of Bruc Bond, a cross-border banking and payments provider.

One major concern is that speculation could once again outweigh regulatory caution. Although the GENIUS Act prohibits issuance of interest-bearing stablecoins, it does not explicitly ban third parties from offering interest-bearing financial products that involve stablecoins. Experts warn that the creation of such reward-based products could create a parallel deposit market that competes on yield with only a flimsy guarantee of one-to-one convertibility, making monetary control more difficult. “Because stablecoins are vulnerable to runs, a fire sale of their reserve assets – such as bank deposits and government debt – could spill over into bank deposit markets, government bond markets, and repo markets,” the IMF warned in a recent financial stability report. “A practical safeguard is integration rather than prohibition: preserve monetary control by including stablecoin flows in the liquidity toolkit using facilities such as the Standing Repo Facility and Reverse Repo Facility to absorb shocks while supervisors treat major issuers as systemically important payment institutions subject to stress testing and live disclosure,” says Susana Esteban from FTI Consulting.

Security remains a critical factor. Some experts warn that, like other forms of crypto, several stablecoins could be used for illegal activities such as money laundering and are also vulnerable to cyberattacks and technical glitches. Stablecoin issuers will need insurance to reimburse holders in the event of cyberattacks and to cover operational risks, which would add to their costs. Political uncertainty may also fuel volatility, as a future Democratic administration could impose stricter regulation on stablecoins. “Expect a revisit of the CBDC ban, stricter consumer protections, and tighter perimeter rules for issuers regarding resolution, interoperability and wallet safeguards,” says Maja Vujinovic, CEO of Digital Assets at FG Nexus, a digital assets holding firm.

By the next presidential election, however, America’s financial experiment with stablecoins may be too big to fail. The wager is bold: that the profit motive of dollar-denominated token issuers will align neatly with national interest. In this sense, the GENIUS Act represents a paradox: it enhances dollar supremacy while simultaneously weakening Washington’s control over money creation. Can this hybrid model of monetary sovereignty – one where Wall Street and Silicon Valley pull the strings of global finance, rather than the Federal Reserve – live up to the expectations of crypto enthusiasts, including the Trump administration, or will it sow the seeds of the next financial crisis?

The answer depends on the same forces that have long defined finance: confidence, liquidity, and the belief that the system, whatever its flaws, will hold.

Leadership lessons from building a platform for champions

When Alex Feshchenko, CEO of the iGaming provider GR8 Tech, was named 2025’s CEO of the year in the technology industry by European CEO, it marked more than personal achievement. It signalled how boundaries between niche and mainstream tech are dissolving, and how visionary leaders are building companies that compete far beyond their original markets. Unlike peers recognised only within iGaming, Feshchenko’s award reflects that today’s most successful companies aren’t defined by verticals but by their ability to solve complex problems with scalable, elegant solutions. Here are five lessons from GR8 Tech’s journey for tech leaders aiming to expand beyond traditional boundaries.

Lesson 1) Master the B2B2C chain: While GR8 Tech operates in B2B, its strength lies in mastering the full B2B2C value chain. iGaming operators compete with each other and fight for people’s attention against streaming, social media and mobile entertainment. “Our clients need to captivate users in a world of infinite choices,” says Feshchenko. “To compete with giants, we must offer a stack that matches and beats them.”

That mindset drove GR8 Tech to adopt AI early, enabling real-time personalisation at scale. Competing with recommendation engines like Netflix required sophisticated user segmentation and personalised tools, now key to delivering better player experiences and stronger operator profitability.

Lesson 2) Borrow and contribute across industries: GR8 Tech believes innovation shouldn’t stay confined to one industry. Engaging with other fields brings fresh perspectives and sparks new solutions. This two-way exchange prevents tunnel vision: GR8 Tech adapts outside ideas to strengthen its products, while its own real-time iGaming technologies often find applications in other sectors. Such cross-pollination is a key advantage in the fast-moving tech industry.

Lesson 3) Build cross-industry partnerships: GR8 Tech’s partnership with Ready to Fight – the platform co-created by undisputed heavyweight champion Oleksandr Usyk – shows how tech can transcend industry boundaries by blending boxing, technology and community. Both brands embody resilience and excellence. Ready to Fight integrates Web3, crypto services and community tools – areas where specialised tech often leads mainstream adoption. From this collaboration came GR8 Tech’s Heavyweight Club, an exclusive community for operators who want to lead inspired by Usyk’s discipline.

The Heavyweight Club demonstrates how cross-industry partnerships can create new business opportunities. Operators who join aren’t seeking invitations; they are embracing a mindset that demands heavyweight performance and delivers heavyweight results.

Lesson 4) Maintain relentless ambition:
“What keeps me motivated is the discomfort of knowing how much more we could still achieve,” Feshchenko says. The most dangerous place for any organisation, the CEO argues, is satisfaction with current success. “The toughest competitor you can face is yourself.”

This ambition keeps GR8 Tech pushing past milestones, onboarding 60plus new clients and building tech that rivals any industry. The company treats each success as a foundation for the next. Intending to become the number one sports book provider by 2028, GR8 Tech shows how ambitious targets fuel innovation, prevent complacency and prove specialised tech can achieve mainstream recognition.

Lesson 5) Build technology that delivers results under pressure: Impact comes from tech that performs under business pressure. GR8 Tech focuses on heavyweight performance – scalability, speed, profitability – with geo adaptations. The results prove it: operators often reach breakeven in under 12 months (versus the three-to-four-year average), and one client hit $1m in gross gaming revenue within four months.

Real-world outcomes drive GR8 Tech’s expansion beyond a single industry. “Heavyweight ambitions deserve heavyweight solutions,” the company maintains – and proves this stance with technology that translates directly into business results. GR8 Tech understands that its clients’ success determines its own.

The broader application
Champions aren’t born in comfort zones – they are forged through the relentless pursuit of excellence and the courage to compete beyond traditional boundaries. As tech democratises, the winners will be those who pair deep expertise with broad vision. GR8 Tech’s recognition in the general technology category proves this balance is both possible and essential. For leaders, the champion’s playbook is clear: redefine competition, master value chains, build bold partnerships, stay relentlessly ambitious, and deliver tech that performs under pressure.

For iGaming operators aiming for the heavyweight division, the path is proven. GR8 Tech’s recognition and results come from refusing to settle for less than championship performance. Champions recognise champions. The question isn’t whether you can compete at this level – it is whether you are ready to step into the ring.

Europe’s dirty money problem

Europe has big plans to combat money laundering, but its history of tackling the illicit flow of dirty cash through its financial system is decidedly checkered. Estimates vary wildly about how much money is cleared through the European Union’s (EU) banking and financial services industry every year: figures range from as low as €117bn while others go as far as suggesting closer to €750bn. Whatever the true amount, the fact that the EU is one of the world’s biggest financial markets means it stands to reason that it will be one of the biggest conduits for criminal funds.

Evidence suggests that some 70 percent of criminal networks based within the bloc use the single market’s financial system to launder dirty money, and around 80 percent use legal business structures to freely move cash. That means not only is Europe’s financial services system failing to identify, prevent or report suspected money laundering, but other professions such as accountants, tax advisers and law firms are also taking little preventative action. At the same time, crime agencies’ efforts to clampdown on money laundering are floundering: in fact, according to the EU’s Agency for Criminal Justice Cooperation (EUROJUST), on average only two percent of the assets from organised crime are confiscated by law enforcement annually, despite a 15 percent surge in cases.

The EU wants to turn the situation around and in July this year AMLA, the bloc’s Authority for Anti-Money Laundering and Countering the Financing of Terrorism, formally came into being. Though it will not begin direct supervision until January 1, 2028, the agency’s role is to co-ordinate the efforts of EU member states by ensuring they implement EU anti-money laundering (AML) rules properly, as well as take active steps to improve co-operation between the 27 countries’ financial intelligence units (FIUs).

As part of its remit, AMLA will directly supervise the EU’s highest-risk financial institutions with significant cross-border exposure and will exercise indirect supervision across both the financial and non-financial sectors. So far, AMLA has entered into memorandums of understanding with the EU’s other main supervisory bodies, the European Banking Authority (EBA), the European Securities and Markets Authority (ESMA), and the European Insurance and Occupational Pensions Authority (EIOPA), as well as with the European Central Bank (ECB).

Stemming the flow
Hopes are high for the EU’s new agency, especially as it could finally give the EU a strong, unifying voice in a system that has been plagued by fragmented national oversight and that has allowed several high-profile – and highly damaging – money laundering scandals to go undetected. But AMLA is not without its problems. While its remit is wide-ranging, its budget is not. It currently has funding of €119m set to last from 2024 until the end of 2027. When it is operational, 70 percent of its funding will come from fees (estimated at €65m for 2028) with a further €27m coming from the EU, providing an annual budget of €92m. By then, AMLA is set to have 430 staff. Additionally, the fact that it will not be fully operational for over two years means a lot of dirty cash is still set to flow through the EU’s financial system between now and then. And even when the agency does take effect in 2028, the existing executive board will only be in post for a year, which creates concerns over leadership and continuity.

The European Union’s uneven record

The EU has a mixed reputation regarding its efforts to curb money laundering. Over 34 years, the bloc has implemented six directives to combat money laundering and terrorist financing risks – the last three of which were agreed in the past 10 years as a succession of scandals were uncovered in several of the EU’s biggest financial institutions around 2017 and 2018 (Danske Bank; Latvia’s ABLV Bank; Versobank in Estonia; ABN Amro; and Commerzbank, among others.)

Last year the EU finalised its so-called ‘AML Package’ of new rules to counter ML/CTF risks. The package consists of the Regulation on Money Transfer Information, which covers information accompanying transfers of funds and certain cryptocurrencies; the AML Regulation and latest (sixth) AML Directive, which will both apply from July 2027 (the regulation will be an EU-wide rule, while the directive needs to be implemented into member states’ national frameworks); and legislation enabling the establishment of the EU’s Authority for Anti-Money Laundering and Countering the Financing of Terrorism (AMLA), which began operations this July.

Despite its willingness to beef up rules, the EU can’t seem to get a proper handle on the problem. An estimated $750bn in illicit funds flowed through the EU’s financial system in 2023 alone, according to a study released this March by financial crime tech software firm Nasdaq Verafin. The figure amounts to a quarter of the global total and is equivalent to 2.3 percent of Europe’s GDP.

While AMLA’s creation may be a bold step towards a unified European approach to financial crime, its effectiveness will hinge on execution. While the agency’s priorities of harmonising rules, strengthening cooperation, supervising high-risk cross-border institutions, and tackling emerging threats like crypto address the fragmentation and intelligence gaps that criminals have exploited for years, its objectives face key challenges, and problems are likely to persist.

For instance, non-financial sectors remain largely outside of AMLA’s direct remit, while geopolitical risks like sanctions evasion add complexity. Additionally, harmonising rules across 27 member-states (where differing national approaches are likely to be entrenched), coupled with directly supervising key entities, coordinating the efforts of multiple FIUs, and the buildout of IT and data systems is complex, resource-intensive, and requires skills, manpower and budgets that the agency does not yet have.

Many believe one of AMLA’s biggest challenges is that the agency faces fierce competition for experienced talent in an industry that is already fighting for experienced professionals, while there are also fears that AMLA’s operational start date of 2028 simply gives criminal gangs enough time to shift channelling dirty money through Europe’s financial services system to less-supervised sectors such as real estate, which remain outside the agency’s direct purview. There are also concerns that AMLA’s powers are defined less by laws and more by the level of political will in Brussels.

“AMLA is a powerful deterrent on paper, but its true test will come when it investigates a national champion bank,” says Willem Wellingoff, chief compliance officer at payments platform Ecommpay. “Will member states provide their full support or will national interests lead them to shield their own institutions?”

Ultimately, preventing money laundering in the financial sector is dependent on how capable – or willing – financial services firms are to combat the problem (as opposed to fulfilling box-tick compliance with current rules). According to Wellingoff, present delays in reporting and the separation of fraud and AML functions within financial services firms “still give criminals an advantage.”

Growth over compliance
These concerns are likely to be exacerbated as the fintech, regtech, and crypto sectors continue to grow in an environment where innovation outpaces governance. Europe’s main banking regulator, the European Banking Authority (EBA), fears that money laundering and terrorist financing risks may be going unchecked because of current weak controls and compliance among these new entrants. These fears are not helped by the fact that the risk-based approaches financial regulators take across the EU to police these firms are often inconsistent, lack clarity, and are ‘uneven’ in terms of their effectiveness.

The EBA has been issuing opinions on money laundering and terrorist financing risk (ML/TF) every two years since 2017. In its latest opinion in July, the EBA said the sector’s drive for innovation and growth may be outpacing its ability to manage them. It added that the ‘unthinking’ use of regtech solutions meant to improve anti-money laundering (AML) compliance – combined with the ‘spill-over risks’ from the increased interconnectedness between traditional financial services providers and the influx of emerging, innovative players such as crypto firms – are also a ‘particular concern.’ The EBA found that while fintech products and services are becoming more popular and mainstream, providers are prioritising growth over compliance. According to Alex Clements, global head of AML, CFT and sanctions at payments tech firm TransferMate, many fintech, regtech, and crypto firms prioritise fast onboarding at the expense of robust ‘know your customer’ (KYC) controls, leaving gaps that criminals can exploit. “Once inside the system, criminals leverage digital wallets, virtual IBANs, and instant cross-border payment schemes to layer and move funds in ways that make tracing illicit funds increasingly complex,” says Clements. “At the same time, the rise of privacy coins and decentralised finance platforms make verifying the source of funds even more difficult by providing anonymity that can shield illegal flows of funds,” he adds.

The number of staff meant to oversee ML/TF risks is often insufficient and those staff lack appropriate training. In addition, over half (52 percent) of regulators surveyed believe fintech institutions lack proper understanding of the level of such risks associated with their products and services. The EBA also highlighted as key areas of concern the sector’s over-reliance on third parties; their increased exposure to cybercrime; ineffective customer due diligence; and the high level of risk associated with cross-border transactions. The opinion found other worrying trends. One example is so-called ‘white-labelling’ – where fintechs provide the infrastructure for financial services firms to market the products under their own brand.

That’s an area that may lack proper oversight as regulators have assessed the risk as being low, but without realising how widespread the practice may actually be, the EBA warned. In terms of regtech, the EBA said while the technology “offers significant benefits in the fight against financial crime,” money laundering risks had increased because the solutions were not being adequately tested, nor used or implemented properly (partly due to a lack of in-house expertise.) The EBA also warned that financial institutions have become heavily reliant on a small number of regtech solutions, meaning that if vulnerabilities arise in one of the products, a significant number of firms could be at risk.

London: A problem of too many regulators

The UK has struggled to shed its reputation as one of the world’s biggest conduits for dirty money – despite having appropriate anti-money laundering legislation and a range of sanctions in place to punish corporate and individual offenders. Around 40 percent of the world’s total of dirty cash flows through the UK’s financial system, but experts believe progress to tackle the problem is hampered by the UK’s dependence on a multitude of poorly resourced, ill-equipped regulators and enforcement bodies. AML monitoring is in the hands of 25 different bodies and is co-ordinated by the Office for Professional Body Anti-Money Laundering Supervision (OPBAS), a division within the Financial Conduct Authority (FCA). But since OPBAS’ creation in 2018, the patchwork system of AML oversight and enforcement has been questioned for its ineffectiveness. “If you were designing a system of AML supervision from scratch, you would be unlikely to come up with the current regime,” says Colette Best, director of anti-money laundering in the legal services regulatory team at law firm Kingsley Napley. In September 2024 OPBAS found ‘weaknesses’ in how the 25 supervisors use enforcement powers to supervise members, and that – worryingly – none were ‘fully effective in all areas’ of anti-money laundering measures.

The report also found the number and value of fines issued had declined on the previous year, and that proactive information and intelligence sharing with regulators and law enforcement was ‘inconsistent.’ Following a two-year consultation to reform AML supervision the government announced in October 2025 that it will create a single professional services supervisor (SPSS), which will see the FCA assume responsibility for ensuring accountancy and legal firms comply with anti-money laundering rules rather than their professional bodies. However, the timescale for the changes – and how they will work in practice – are not clear.

Prosecuting AML cases has also historically been chronically slow: in the decade up to December 2021 the FCA opened only 23 criminal cases against individuals and corporates for failing to report suspicious money laundering-related activity. Part of the problem stifling the UK’s efforts to prevent money laundering is that its strategy encourages huge numbers of reports, including lots of false positives. Most of these reports, approx. 900,000 are generated each year, cannot be meaningfully investigated due to resource constraints. AML compliance is also hugely expensive, which pushes larger institutions to rely on automated systems that do not always work as well as they are meant to.

Controlling crypto
Meanwhile, money laundering and terrorist financing risks remain high in the crypto sector, fuelled in part by a surge in transaction volumes and a 2.5-fold increase in the number of authorised crypto assets service providers in the EU between 2022 and 2024.

But it’s also because crypto firms continue to act in much the same way as they always have – namely, that senior management fails to take compliance seriously; internal controls and governance arrangements are not fit for purpose; and firms deliberately try to bypass processes because they think the rules that apply to traditional providers do not/should not apply to themselves.

Experts believe fintech firms’ AML compliance is hampered by a lack of skilled staff

Marit Rødevand, CEO of AML tech company Strise, says that the sector’s failure to address these problems is “partly cultural, partly structural. Growth and speed to market are of greater priority to developers, leaving compliance as an afterthought.

“In crypto, there is an added reluctance to move until regulators force the issues. The result is a cycle of under-resourced compliance, insufficient controls, and firms playing catch-up rather than leading from the front,” Rødevand adds. Such views are backed up by research from UK professional accounting body ACCA. It found that fintech and regtech firms admit that internal mechanisms often fail to translate into meaningful action, which creates a ‘persistent misalignment’ between written policies and actual practices – a situation that is ripe for fraudsters to exploit.

AI is also exacerbating cybercrime, fraud and ML risks. According to a 2024 report by security tech firm Signicat, a staggering 42.5 percent of fraud attempts in financial services are now AI-driven. The report said criminals use AI for money laundering to automate financial schemes, conceal fund sources, and make high-risk transactions harder to detect. In addition, the technology can be used to generate fake documents, simulate legitimate operations and evade customer due diligence measures through deep-fakes.

The recent history of several new entrants, crypto and fintech firms is doing little to alleviate fears that financial crime will continue to grow as regulators across Europe step up monitoring and enforcement efforts. In 2023 Lithuania revoked the licence of banking platform Railsr’s European payments unit, PayRNet, for ‘gross, systematic and multiple violations’ of ML and terrorist financing laws. In May 2024 Germany’s financial regulator BaFin fined online bank N26 €9.2m over its late filing of suspected money laundering reports, and in July 2024 the UK Financial Conduct Authority (FCA) hit CB Payments – part of crypto-asset trading platform Coinbase – with a £3.5m fine for onboarding and/or providing e-money services to 13,416 high-risk customers. The previous year the firm had agreed to a $100m settlement with New York’s Department of Financial Services (DFS) over AML failings. In April 2025 Lithuania’s central bank fined British fintech firm Revolut €3.5m for AML failures.

According to Nick Henderson-Mayo, head of compliance at VinciWorks, a compliance eLearning and software provider, AML compliance is “butting against” the AI-enabled tech revolution. “Fintechs compress onboarding into minutes, regtech tools often operate as ‘checkbox tech’ rather than embedded risk management, and crypto still enables anonymous, borderless value transfer.” He added that nearly 40 percent of illicit crypto transactions are from sanctioned jurisdictions and entities. “Oligarchs use their speed, liquidity and borderless nature to slip past traditional compliance checkpoints. It is like watching a river of money disappear underground. When it resurfaces, you can never be certain whose hands it passed through.”

Some recent offenders

Danske Bank: In 2017 Denmark’s biggest lender found itself at the centre of allegations that have since given the organisation the dubious honour of being responsible for the world’s largest money-laundering scandal. Over the course of eight years, between 2007 and 2015, around €800bn of suspicious transactions flowed through the bank’s Estonian network, with little attempt to stop it. In December 2022 Danske Bank pled guilty and agreed to a $2bn fine with the US Department of Justice. Further fines worth billions of dollars are expected from other financial regulators.

ABN Amro: In April 2021 the Dutch bank reached a €480m settlement with the Netherlands Public Prosecution Service (NPPS) to resolve money laundering charges, two years after the agency said the bank was the subject of a criminal investigation relating to potential violations of the Dutch Anti-Money Laundering and Counter Terrorism Financing Act (AML/CTF Act).

Nordea Bank: In August 2024 the Finnish bank agreed to pay $35m to resolve an investigation by the New York Department of Financial Services (NYDFS) into ‘significant compliance failures’ in its anti-money laundering and Bank Secrecy Act (AML/BSA) programme. Nordea was discovered to be facilitating the creation of off-shore tax havens in the 2016 Panama Papers investigation. A subsequent NYDFS investigation found the bank was engaging in high-risk transactions through its international bank branch in Denmark. Nordea also formed relationships with high-risk correspondent banking partners without conducting adequate due diligence on them, the regulator said.

Multitude of challenges
Experts believe fintech firms’ AML compliance is hampered by a lack of skilled staff, coupled with a lack of specific requirements by regulators of what skills individuals in AML roles should have. Other factors may also make AML monitoring ineffective. For example, many firms are not fully licensed (instead, a licensed entity has agents and/or distributors who are able to conclude contracts and board clients without having a sufficiently skilled money laundering reporting officer) and criminals simply appoint nominees (known as ‘money mules’) to make transactions on their behalf to evade checks. Additionally, while AML detection technologies are useful, they require heavy integration to get sufficient data into the systems and are often outdated by the time they are embedded.

Around 40 percent of the world’s total of dirty cash flows through the UK’s financial system

While the EU may have identified the problem areas in its drive to curb money laundering, it is another matter whether the steps it is putting in place to tackle the issue will pay off: a lot of different factors need to come together. In the absence of better, more effective and more closely joined-up approaches from regulators to monitor activity, putting a stop to the flow of dirty money comes down to how willing and prepared industry players are to shoulder the costs of compliance rather than pursue clients and new opportunities. So far, taking the money has been a bigger inducement than spending it.

Leading Chile’s pension transformation

AFP Capital has been recognised by World Finance magazine for its leadership and excellence in Chile’s pension market. CEO Renzo Vercelli shares insights on what this honour represents, the company’s journey toward achieving it and how AFP Capital is navigating the most significant pension reform since Chile’s system began.

Can you describe what it means for AFP Capital to receive this international recognition?
For us, it is a source of great pride, and this recognition validates the effort and dedication of the entire AFP Capital team, who work tirelessly, with innovation and focus, to build a very comprehensive and unique value proposition in the market, enabling us to advise our more than 1.4 million clients in building their pensions.

Chile is currently undergoing a major shift in its pension system. How did you achieve this recognition amid such significant change?
Indeed, this year saw the launch of a major pension reform, which acknowledges the importance of individual capitalisation, adjusts a universal guaranteed pension from the State, rewards the effort of saving for retirement with benefits, and implements a generational fund regime. Private sector administrators like AFP Capital are working with the utmost diligence and excellence to support this process operationally. In this context, amid all the changes required by the regulator to implement the reforms, we have also continued to develop an innovative value proposition for our clients.

Could you describe the key elements of that value proposition and why it might be so competitive in the local pension market?
Our value proposition is based on advisory services, with simple and accessible information, personalised attention, and clear services that make it tangible for each client throughout their accumulation and decumulation stages, so they can make the best decisions. We have seen that it is a differentiated value proposition, recognised and currently valued by our clients; this is reflected in our NPS, service and brand indicators.

What other factors do you attribute to AFP Capital receiving this award?
It has been recognised for its unique and innovative Interactive Streaming system, which is open and reaches more than four million people, including members, retirees and the market. AFP Capital also stands out for its strong focus on digitalising its services, currently offering advisory services through innovations such as remote video calls from anywhere in the country, appointment scheduling for members and retirees, and a website that will become the most comprehensive branch in the future. Additionally, for the third consecutive year, we have achieved international ISO 9001 and ISO 10002 certifications, which recognise the quality of our customer service model and our ability to resolve complaints and enquiries effectively. This makes us the only pension fund administrator with this double recognition, evidencing our ongoing focus on strengthening service channels to offer a people-centred experience.

It is also relevant to mention our leadership in generating returns for our members’ pension funds, which have consistently outperformed the rest of the industry over the past 60 months, thanks to the management of a highly experienced and specialised team in the various assets of portfolio management.

How does this recognition impact your relationship with members?
This award is not only a reflection of our internal work but also of the trust relationship we have built with our clients, who have chosen us to safeguard their future. It challenges us to keep improving, innovating, and responding to their needs with responsibility and empathy.

What challenges lie ahead for AFP in Chile, and how does AFP Capital plan to address them?
In March of this year, the 2024 Population and Housing Census revealed data confirming an evident reality: Chile is ageing. The percentage of people over 65 years old grew from 6.6 percent in 1992 to 14 percent in 2024. In the same period, the percentage of people under 14 years old fell from 29.4 percent to 17.7 percent. These figures not only represent a change in age composition but also raise fundamental questions about how we organise ourselves as a society, for today and also for the future.

Pensions are perhaps the most visible face of this phenomenon. The reform may help address this challenge to some extent, but further adjustments are needed. The retirement age in our country, currently 65 for men and 60 for women, seems insufficient in this context of greater longevity. We are facing a complex issue, considered politically incorrect to discuss, but inevitable to address. We must continue to tackle the low density of contributions by promoting a strong culture of long-term savings and moving toward a more formal labour market.

What are AFP Capital’s projections following this recognition?
This recognition drives us to redouble our commitment to excellence. We will continue investing in technology, training and service quality. We are part of SURA Asset Management, the largest Latin American manager of pension funds with more than 23 million clients, and from Chile, we want to keep contributing to our shareholder’s leadership with innovation, closeness, and solid results in profitability.

We also believe that being highlighted by World Finance at a global level is an incentive to continue strengthening trust and excellence in the Chilean pension fund industry, building on what we have demonstrated we do well.

A new horizon for Italian wealth management

The Italian wealth management market is undergoing a profound transformation, driven by the rapid expansion of the High Net Worth Individual (HNWI) and Ultra High Net Worth Individual (UHNWI) segments, and by the increasing sophistication of entrepreneurial families’ financial needs. In this evolving landscape, banks must reshape their advisory models towards services that are integrated, innovative, and highly personalised – built on specialised wealth management platforms capable of addressing complex and global needs. At the same time, the rise of artificial intelligence is enabling a hybrid model in which human expertise is increasingly enhanced by advanced technological capabilities.

In recent years, the investable financial wealth of Italian households has shown steady growth, with a sharp acceleration among HNWIs and UHNWIs – a segment that continues to outperform the market average, demonstrating both a stronger ability to generate wealth and a greater appetite for sophisticated investment strategies. The annual growth rate of financial wealth allocated to investments, around three percent in recent years, is expected to remain stable through 2025–2026, supported by positive inflows and resilient market conditions.

Private banking remains a structural growth engine within the Italian financial industry, with assets projected to rise by around six percent by 2026 – well above the national average. The sector’s assets under management (AuM) are expected to exceed €1.4trn in 2026, thanks to the ability to provide an increasingly diversified range of solutions for sophisticated clients, especially UHNWIs.

Italy is now approaching a fundamental turning point in what many call the ‘great wealth transfer’ – the inter-generational handover of hundreds of billions of euros in assets. Today, nearly 75 percent of total wealth is held by individuals over the age of 55. By 2033, it is estimated that approximately €300bn will be passed on to younger generations.

Private banking remains a structural growth engine within the Italian financial industry

This demographic and financial shift, mirrored across Europe, places longevity and generational planning at the very centre of the wealth management agenda. It marks a pivotal moment for how families manage both their personal and their business wealth. Here, the value of global advisory becomes crucial – the ability to transform the complexity of wealth transmission into a strategic opportunity for business growth and long-term value creation.

Managing the wealth of Italian families will increasingly require strategic partners capable of creating value throughout every stage of the client’s life journey – developing together a structured plan of objectives for the individual, the family and the enterprise. Equally essential will be a well-defined family governance structure to ensure the smooth transition of wealth and the continuity of the family business when ownership changes hands. In the coming years, the industry’s key challenge will be to offer goal-based, personalised, and flexible solutions through a truly global wealth management platform that can address the sophisticated and multidimensional needs of its clientele.

Investing in excellence
The transformation of wealth management for HNWI and UHNWI clients requires an integrated and specialised approach that goes far beyond traditional financial management. It demands a holistic and goal-based vision of wealth. At BNL BNP Paribas Private Banking & Wealth Management, the strength of our strategic advisory model lies in our ability to provide HNWIs and UHNWIs with highly skilled professionals who deliver tailored, timely support. Within our advisory model, relationship managers work alongside a team of specialists covering key areas such as global markets, wealth planning, trust services and corporate finance.

Our bankers, together with wealth planners and experts from our fiduciary company Servizio Italia, work closely with entrepreneurs to design succession plans that actively involve the next generation. Including younger family members in the design and implementation of succession strategies has been instrumental in ensuring business continuity and in strengthening the long-term vision of many family-owned enterprises.

We invest heavily and continuously in the advanced training of our professionals

Advisory during this delicate phase is a cornerstone of our way of doing private banking.Through our ‘One Bank’ model, we leverage on the expertise of all BNP Paribas Group business lines – combining the specialised knowledge of wealth management with the vertical capabilities of corporate and investment banking. This allows us to provide truly 360-degree advisory services, supporting entrepreneurs and their family businesses in both extraordinary transactions (such as M&A and ownership transitions) and the daily management of assets – including real estate and global markets advisory.

To consistently maintain the highest standards, we invest heavily and continuously in the advanced training of our professionals. A key initiative, in this regard, is the Excellence Academy of BNL BNP Paribas Private Banking & Wealth Management developed in partnership with the Bocconi University School of Management in Milan. The programme offers specialised, certified training paths for bankers and advisors, ensuring that our professionals remain at the forefront of industry best practices and HNWI and UHNWI client expectations.

An AI-driven future
Looking ahead, our vision is to build an integrated, international and innovation-driven service model – positioning ourselves as the strategic advisor of reference for clients managing wealth over the medium and long term. Innovation and the ability to anticipate shifts in global markets are becoming essential assets for anyone operating in private banking. Collaboration across business lines within the BNP Paribas Group, combined with our agility in developing bespoke solutions, enables us to respond effectively to the challenges posed by market volatility and evolving regulation.

Integration with international platforms is a defining feature of our model, allowing us to serve HNWIs and UHNWIs who are increasingly exposed to cross-border dynamics and global investment opportunities. Our company provides multi-asset, multi-currency solutions and advanced reporting services, ensuring a seamless client experience across all touchpoints.

Our cross-country architecture and specialised service verticals enrich a value proposition that is both comprehensive and personalised. The growing demand for diversification and capital protection is driving interest in sophisticated products such as alternative investments, private assets, and tailor-made financing solutions. Advanced analytics are further enhancing personalisation – allowing us to profile clients in greater depth and anticipate their needs through predictive data models.

Artificial intelligence is rapidly emerging as a transformative force across the industry. By leveraging AI, we can deepen client insight, automate processes, and deliver personalised, omnichannel experiences. Predictive analytics and insight-driven advisory tools will enable a shift from conventional to truly proactive and customised advisory. The challenge for the next decade will be to effectively integrate the human and the technological – creating a hybrid service model powered by Human+AI resources that preserves the relational value of human interaction while fully harnessing the potential of advanced technology.

Today, the industry faces an unprecedented opportunity: to combine the legacy of relationship excellence and local expertise with the new frontiers of internationalisation and innovation. Investing in global platforms, empowering our teams, and embedding AI within advisory processes will allow us to deliver a truly distinctive service – one that meets the expectations of a sophisticated, demanding, and global clientele.

This evolution calls for a new kind of leadership – one capable of orchestrating human and technological capabilities, combining the irreplaceable value of people with the extraordinary potential of AI. It is an intellectually stimulating challenge for the next generation of professionals in our industry – and one in which we intend to play a leading role.

Why central banks are turning to gold

Gold prices continue to break new price records. During the second week of October 2025, gold had surged to $4,000 a troy ounce, and the Financial Times reports that prices have doubled in less than two years because central banks are stockpiling bullion and investors are pouring into gold funds. This is despite central banks’ investments in gold slowing in July 2025.

Central banks’ interest in gold is possibly driven by geopolitical risks. They are subsequently turning away from the US dollar to this particular commodity. Reports also suggest that another factor could be that the bond markets have also had a bumpy ride this year. However, in stark contrast, the FT also reports that Goldman Sachs predicts that gold could hit nearly $5,000 – particularly if US President Donald Trump undermines the Federal Reserve, as critics of his White House policymaking suggest.

Regardless, there is a global ease about budgets and central banks’ ability and willingness to keep inflation under control in the medium term. For example, during a press conference in September 2025, Christine Lagarde, President of the European Central Bank, and Luis de Guindos, Vice-President of the ECB, claimed that higher tariffs, a stronger euro and increased global competition are holding back growth; “However, the effect of these headwinds on growth should fade next year. While recent trade agreements have reduced uncertainty somewhat, the overall impact of the change in the global policy environment will only become clear over time.” The ECB hopes that it will be able to stabilise inflation at its two percent target in the medium term.

When capital stops chasing yield, it runs to permanence – and permanence is gold

Ugo Yatsliach, Founder of Gold Policy Advisor and a professor of economics at Bridgewater State University and of finance at Bunker Hill Community College, claims: “Central banks aren’t just worried about inflation – they are worried about a world where dollar assets can be sanctioned, seized or devalued.

“This is why central banks are paying a premium for gold, as it creates a politically neutral, seizure-resistant reserve portfolio. Dollar dependence is the underlying vulnerability. Treasuries and US funding still anchor reserves, but demand is falling, as competing blocs, parallel payment systems, and supply-chain realignment are eroding FIAT reserves and complicating monetary policy.”

With geopolitical and economic uncertainty being prevalent in their minds, gold is seen as a viable hedge – a strategic bet against geopolitical risk and central bank demand, marking what industry commentators suggest is a structural shift in global capital flows.

The Official Monetary and Financial Institutions Forum (OMFIF) suggests that geopolitical events have laid a solid foundation for gold “to become prominent once again in the reserve portfolios of central banks, and as a way to settle payments for some countries.”

Adding gold for diversification
Earlier in the year, AInvest reported that central banks added “410 tonnes of gold in H1 2025 (24 percent above the five-year average), with emerging markets leading diversification from dollar reserves.” It says investors have therefore been advised to allocate between five and 10 percent to gold via bullion or ETFs “as geopolitical risks persist, though dollar strength and policy shifts pose short-term volatility risks.”

A spokesperson for the European Central Bank told World Finance, “The ECB holds gold as part of its foreign reserves, and we recognise its historical and strategic significance in reserve management.” Beyond this, he said the ECB – just like the Bank of England – could not comment any further as they are unable to remark on specific market forecasts or on other central banks’ policies.

Nevertheless, Hugh Morris, Senior Research Partner at Z/Yen Group, finds the current level of interest in gold quite interesting. He claims that there is a “definite reversal of an historic trend because up until recently central banks have been net sellers rather than net buyers of gold.” However, President Trump has shaken them up a bit, accelerating and sparking concerns that there is too much dependence on the US dollar – making central banks and investors think they shouldn’t be overly dependent on it, even though concerns about this currency predate Trump.

Another driver is the fact that the world has become more insecure with more conflicts and more crises, such as the war between Russia and Ukraine, and in Gaza between Israel and Palestine. So, as gold has always been a hedge on economic and volatility impacts, he emphasises that gold, unlike other asset classes, remains a very certain asset.

He adds: “The last driver is groupthink. I see other central banks being busy buying gold, so that if they are asked by politicians or other central banks; ‘why are you not buying gold?’ They can respond that they have already been buying it. They want to be part of the in-crowd.”

Attractive to developing countries
Michael Bolliger, Chief Investment Officer Emerging Markets UBS Global Wealth Management, finds that gold is especially attractive to central banks in developing countries as they are trying to diversify their holdings while also hedging against economic, geopolitical and policy uncertainties.

“In recent years, emerging market central banks have been the largest buyers of gold, seeking assets that are less correlated with the US dollar and less sensitive to fluctuations in interest rates,” he explains before adding that this ongoing accumulation is expected to persist. This may be because these institutions are less price sensitive; they view gold as a stable store of value.

Emerging market central banks have been the largest buyers of gold

Bolliger suggests that there are also several reasons that have driven the gold price highs since July 2025. The first driver is the anticipation of further Federal Reserve interest rate cuts and persistent inflation. Together they have driven real interest rates lower in the US, making gold more attractive compared to interest-bearing assets. The US dollar has also weakened because the Fed is expected to ease policy, which he says enhances gold’s appeal for non-dollar investors.

To cap this, there is a robust investor demand, which is “evidenced by rising exchange-traded funds (ETF) holdings and strong central bank purchases.” This continues to support prices, and so while there was a very brief slowdown in the summer, “these underlying drivers, along with elevated geopolitical risks and policy uncertainty, have propelled gold to new highs,” he says.

Morris adds: “While Samuel Pepys may have buried some cheese during the Great Fire of London, most people buried gold. It is the go-to asset in times of uncertainty. There is one more interesting side effect of prolonged institutional buying of gold; it has broken the long-term inverse relationship between gold prices and interest rates. When interest rates were higher, traditionally, gold prices were lower. We are currently seeing relatively high interest rates and high prices of gold.”

China: A big gold buyer
Despite this, Eric Strand, Portfolio Manager of the AuAg Funds at AIFM, and their founder, claims that the Bank of England and the European Central Bank have been the least active in buying gold. “China has been a big buyer of gold, as well as other central banks in Asia, and now some European central banks have begun to do so – such as Poland,” he notes.

He claims that while Poland’s central bank sees the troubles in the system and acts accordingly, the Bank of England has historically often sold at the wrong time. In contrast, China and Russia are big gold producers and so they keep all their gold to add to their reserves. He adds: “We thought the US would count the gold they have, but this has still not materialised in the way that Trump wanted. At the same time there are questions about how much gold there is in Fort Knox.

“It is a bit strange because the US had 16,000 tonnes of gold after the Second World War, and now they have about 8,133 tonnes of gold. They started to print a lot of money to finance wars. The deal was that the dollar was as good as gold, allowing for other countries to get paid in gold. The US had to ship half of their gold to Europe, leaving them with today’s unaccounted tonnes of gold. This led to a disconnection with gold in 1971 under President Nixon. That is the timeline for our new world order. Since then, all currencies are connected to the dollar, which has lost 98 percent of its value as measured in gold.”

The problem is that all FIAT currencies have been losing value since then. While central banks can print money to double its volume, such as for quantitative easing (QE), the very act of doing so can halve every unit of any given currency – whether it is the pound sterling or the US dollar. Then there is the need to service Sovereign debt. For example, Strand says the US is running up a seven percent deficit and so it is running on debt all the time. “The cost of servicing debt – including for defence – is the highest of all costs for the US and so this will force us back to much lower rates and probably all the way down to zero,” he argues.

He thinks that Trump needs to get interest rates down and as for the Federal Reserve, he suggests it is normally the first to act before claiming that it is currently behind the curve. Other central banks are ahead when it comes to interest rates. Meanwhile, Switzerland’s central bank is already down to zero percent. He therefore predicts that all central banks will be heading in the same direction. This is because it is the only way for countries to service their debt.

The trouble is that the Fed may return to QE control to get down the long rates, but Strand says this prospect makes the markets nervous as it is another way to print money. To him, that is a strong reason to own gold as QE only works in the short term. He believes that QE is the medicine that could be worse than the cure.

Shift in global capital flows
As to why there is a shift in global capital flows, Nicky Shiels, MKS PAMP’s Head of Research and Metals Strategy, stresses that confidence in historically safe assets, such as fixed income assets, has diminished considerably given the “extraordinary debt levels across most Western countries.” She says this has forced investors to reconsider their options or to re-think the traditional 60:40 portfolio, and to turn to assets such as gold, crypto or real estate. However, she warns that the pool of safe haven assets is shrinking.

Morris argues that the primary catalyst for the shift in capital flows is that the perception of risk is greater than the perception of opportunities in the market. He explains why he thinks this situation has arisen: “Companies that looked for high growth, high value investment opportunities – such as Third World manufacturing companies – are now being impacted by US tariffs.

“Investors are having to re-think where opportunity and risk may lie. The important driver of Trumponomics is that Trump’s view of economics is based on a zero-sum outlook, which is driven by a fundamental belief that the pie of opportunity is limited, and if I have a bigger bit, you have a smaller bit, and vice versa.” This is in contrast with the view of classic economics, which implies that there is no need to worry about the size of your slice of the pie, because it is important to worry more about the size of the pie you are taking your share from. This is because a smaller slice of a larger pie may, he explains, deliver a better outcome compared to a larger slice of a smaller pie. “Trump’s philosophy is based on a win-lose outcome, essentially: if you win, I lose, or I win, you lose, and he does not see a world where we can both win. That world view drives his policymaking,” he adds.

Weaponisation of the US dollar
This might be the case, but not everyone sees it as being about Trump’s policymaking. While he says he is not advocating for or against President Trump, Lobo Tiggre, CEO of Louis James, believes the biggest reason why central banks are turning to gold is the weaponisation of the US dollar by former US President Joe Biden in response to Russia’s second invasion of Ukraine in 2022. He claims this, and the sanctions that followed, were a shot heard around the world – not just by the rivals of the US.

He explains: “Even before Trump 2.0, allies understood that they were at risk entrusting their financial lifeblood to the US. This was a very big deal – the beginning of the end of the Bretton Woods accord. And now that Trump is waging trade wars against friend and foe alike, it has only added to the incentive for central banks around the world to diversify out of the USD and US treasuries.”

Yatsliach says capital is migrating from “yield at any cost” to “resilience at all costs.” He adds: “Falling demand for US Treasuries, dollar devaluation, and geopolitical tensions are making paper assets riskier investments, driving financial institutions to gold for protection.” He finds that gold’s appeal rises when the store-of-value function outranks the means-of-payment function: “Gold is liquid outside any single sovereign, and now a larger, steadier share of official demand than a decade ago. When capital stops chasing yield, it runs to permanence – and permanence is gold.”

As for China, the world’s second-largest US Treasuries holder, he says it has “decreased Treasuries holdings from $1.3trn to $765bn, while simultaneously strengthening their gold reserves” since 2011. The purpose behind this action was to diversify the country’s reserve holdings and to mitigate the risks of the US dollar’s weaponisation.

As for the US Federal Reserve, he remarks: “Fast forward to today, the global community sees the executive branch of the US government is seeking more influence over the Fed. This increases the perception of the dollar being used as a political tool, hence, the flight from dollars to gold – which is politically neutral. Politics is a catalyst, not the cause: it accelerates a diversification already in motion.”

The Trumpian shake-up
Morris agrees that President Trump is trying to change and shake up the current financial and economic system – in the US and globally. He says Trump is doing this by maintaining persistent pressure on the Fed to reduce interest rates to stimulate economic activity. He claims that other central banks are worried about these Trumpian tactics: “If the Fed does cut interest rates, there is already ample evidence that inflationary pressures are building in the US economy, and cutting interest rates aggressively would simply pour petrol on the flames.”

“Social media isn’t wrong, US policy is shifting,” comments Yatsliach. To him what matters is how US moves transmit globally through the US dollar, treasuries, and fund markets. “Any executive attempt by the US government to influence Fed governance and policy (appointments, high-profile clashes, unprecedented bids to remove a sitting Governor) generates uncertainty in the global markets,” he explains. The fear is that the president will have absolute power over the dollar, which is the anchor of the global reserve system. This is because it would become political rather than market driven.

Capital is migrating from yield at any cost to resilience at any cost

He adds: “What most don’t know is that the Gold Reserve Act of 1934 transferred ownership of all gold from the Fed to the US Treasury and created the Exchange Stabilisation Fund (ESF) – a fund designed to control the value of the dollar internationally. Section 10(a-c) gives the President and the Secretary of the Treasury discretionary power to deal in gold and foreign exchange, as well as the operation of a $2bn Exchange Stabilisation Fund (Gold Reserve Act of 1934, Pub. L. No. 73-87, § 10(a)-(c), 48 Stat. 337 (1934).

“The act also states that the President’s and Treasury Secretary’s actions are final and not subject to review by any other officer of the US. So, if a President succeeds in removing the sitting Governor of the Fed, and appoints someone under executive influence, the global monetary system would be subject to unprecedented executive influence from the US.”

Ultimately, this would decrease the independence of the Fed as it would become susceptible to the political agenda of the Trump administration. Consequently, this would raise the premium foreign central banks place on self-insurance. While central banks, he argues, don’t fear presidents, they fear the politicisation of the dollar as more political dollar funding can become more volatile. This is a critical concern for non-US banks such as the Bank of England and the ECB that borrow in dollars. They rely on the Fed’s swap lines, he explains, to backstop their stress.

“If the US loosens oversight and then hits turbulence, contagion can travel via derivatives, repo, and clearing networks into Europe,” he warns before adding: “For the ECB especially, volatility in core rates and the dollar can complicate monetary transmission and re-ignite fragmentation risks inside the euro area. Tariffs can move yields, the dollar, and risk premia, directly affecting the value of other central banks’ dollar reserves. When the anchor currency looks political, every central bank’s insurance policy is gold.”

Gold: Rising out of risk?
Can gold ride out the geopolitical and economic risks better than the US dollar and treasury bonds? Morris argues that they are completely disconnected. That is because gold is an asset in times of uncertainty. Nevertheless, he predicts that bonds and other interest-linked instruments will continue to command premium returns because of the levels of uncertainty and risk in the world. “Currently we are seeing high interest rates and a high price for gold; both driven by the levels of risk and uncertainty in the world, but independently of each other,” he expounds.

Bolliger responds by highlighting that in recent years gold has outperformed many other asset classes, including the US dollar and US Treasury bonds, “and as long as investors remain preoccupied with geopolitical concerns as well as political and policy risks, we think gold can continue to outperform safe haven assets such as the US dollar and US Treasury bonds.” He adds that UBS wishes to stress that gold price can also see fluctuations during “risk-off events as investors liquidate assets and hide them in (US dollar) cash.”

As for the Goldman Sachs prediction that gold could soon hit nearly $5,000, Strand suggests that anything below $4,300 is cheap with regards to the deficit and Sovereign debt situation. While he thinks that $5,000 sounds high, although it’s only 25 percent from $4,000, gold will continue to rise. He is sure that the Fed will need to lower interest rates, allowing gold to fly. He therefore agrees that the Goldman Sachs scenario is realistic. Much depends on how fast the central banks print money or perform QE. Whatever happens, while there is uncertainty, people will continue to invest in gold.

A new hand at the helm of Banreservas

Leonardo Aguilera assumed the executive presidency of Banreservas, the largest financial institution in the Dominican Republic, in August 2025. He holds a PhD in economics, has more than 20 years of university teaching experience, and is the founder of the Cibao Economic Centre. Between 2020 and 2025, he headed the Dominican Petroleum Refinery (Refidomsa). Following his appointment, Dr. Aguilera spoke with World Finance about Banreservas’ fundamental role in the Dominican economy and the bank’s priorities for the future.

Banreservas reported a rapid increase in lending in recent years compared with prior periods. How has this benefited the national economy?
Greater access to credit has enabled both large corporations and SMEs to diversify their offerings, improve operational efficiency, and ultimately boost job creation and incomes. In addition, the availability of bank financing – delivered by executives with deep expertise in tailoring structures to each project – helps attract foreign investment. In tourism, a key pillar of the economy, financing has been essential to developing core infrastructure: hotels and resorts, airlines, cruise ports, transport networks and attractions. Credit has also broadened and strengthened supply chains. By financing suppliers and service providers that support tourism – local food producers, artisans, and transport services – banks reinforce the overall ecosystem.

We currently hold the number one position in the credit card market

Meanwhile, consumer lending has played, and will continue to play, a central role in stimulating domestic tourism by giving people access to affordable financing for travel and leisure.

The ripple effects are positive for retail, hospitality and agriculture. We currently hold the number one position in the credit card market. To date, Banreservas has issued 1.44 million credit cards and 3.77 million debit cards, a combined year-over-year increase of 24.5 percent. We also lead the payment platform for social assistance programmes, serving roughly 855,000 beneficiaries, and we support merchants with a range of annual promotions.

What role is Banreservas playing today in advancing financial inclusion, for example through education?
One of our most significant initiatives is the PUEDO programme – our first large-scale effort, in partnership with the Ministry of Education, to deliver financial education in public schools. Through PUEDO, we have reached 4,300 students in 17 public schools across several provinces, focusing on those in the final years of primary and secondary school. We are now scaling to thousands more institutions, extending financial education to more than 7,800 schools nationwide as well as to teachers. We recently convened with more than 1,000 students from the southern region – mostly in early grades – and were encouraged by their enthusiasm for learning about money management and the importance of saving for emergencies and future needs.

Meanwhile, through our ‘Banking is the Nation’ programme, we have brought more than 900,000 Dominicans – many from vulnerable communities – into the formal financial system by combining digital accounts, government payrolls, and social subsidies. This effort is supported by more than 4,000 financial literacy workshops.
Banreservas is implementing an internationalisation strategy to expand access to financial services for Dominicans living abroad. What has been achieved so far?
We continue to take important steps to connect the Dominican diaspora with the national financial system. Our compatriots in the US and Europe – more than 2.5 million people – send over $10bn in remittances annually, a vital source of support for our economy. The establishment of three representative offices – Madrid, New York and Miami – fulfills a commitment made by President Luis Abinader and makes Banreservas the first Dominican bank with a presence in both Spain and the US. These offices have already served more than 60,000 clients, processed more than 25,000 savings account openings, and handled mortgage applications totalling over RD$3bn.

In the near term, our focus is to strengthen this presence and offer Dominicans abroad more options for dynamic engagement, allowing them to benefit from Banreservas’ footprint in these markets and remain closely connected to their homeland. Through international real-estate fairs held in New York, Lawrence and Madrid in 2024 and 2025, we have showcased a broad range of residential projects to Dominican communities abroad. Working with leading developers and real-estate agents in the Dominican market, we provide personalised advice, preferential financing, and the assurance that comes with Banreservas being present in their community.

Rather than viewing Dominicans abroad simply as remittance senders, we see them as active partners in national growth. Looking ahead, we are developing even more innovative digital solutions that will allow them to manage their entire financial lives remotely, quickly, and securely. These efforts also align with the President’s commitments to Dominican communities abroad – commitments Banreservas embraces as the bank with the strongest ties to our diaspora.

What are Banreservas’ main priorities and objectives through 2030?
We have three priorities. First, deepen our digital transformation. We will continue to expand our digital capabilities to deliver faster, more secure, and more personalised solutions for corporate and retail clients. That includes optimising payment platforms, cash-management, and financing services with a strong focus on user experience and regional interoperability.

Second, optimise capital to fund innovation and expansion. Following the capital increase authorised by Law 13-24, Banreservas now has a significantly stronger capital position. We will leverage this to accelerate technological innovation, expand banking infrastructure, and enhance our suite of transactional products – investing in cybersecurity, process automation, new digital channels, and expansion into key regional markets.

Third, expand financial inclusion. We will drive initiatives in underserved communities by integrating accessible digital solutions and strategic partnerships to broaden the reach of our transactional services. We will continue developing products that help micro and small businesses grow – facilitating access to credit, modern payment methods, and financial tools that improve sustainability and competitiveness.

In September 2025, the bank announced RD$7bn to finance national productive sectors at preferential rates. Which sectors will benefit?
These funds are targeted at the country’s main productive sectors: construction, commerce, manufacturing, exports, health and agriculture.

Banreservas recently reported that its CREE programme – which supports entrepreneurs and innovative projects – has channelled more than RD$72m in equity investments since 2015. What role will this programme play going forward?
CREE will remain Banreservas’ flagship initiative for backing innovation. By combining equity investment with specialised mentorship, it contributes to national socioeconomic development. We expect CREE to broaden its reach, supporting more founders at the early and growth stages while strengthening business models.
The vision is to cement CREE as an engine of innovation – turning ideas into high-impact projects that address social and economic challenges and help build a more prosperous future for all Dominicans.

What else is the bank doing to support entrepreneurs and SMEs?
Fomenta Pymes offers flexible financing, technical advice, and specialised support to strengthen management and competitiveness among SMEs. The programme facilitates access to credit, provides training tools, and connects entrepreneurs with support networks – helping businesses grow sustainably, create jobs, and boost local economies.

How is the digitalisation of banking services progressing, and what are the key objectives in this area for the next five years?
With the launch of the TuBanco Personas platform, we have modernised online banking for individuals, delivering a faster, more intuitive, and more secure experience. Our AI-powered virtual assistant, Alma, has become a key self-service channel. We have also redesigned the Personas app to give customers greater autonomy in managing products such as accounts, time deposits, cards and loans. The Banreservas MIO Digital Account has expanded access for traditionally underserved segments, while digital onboarding allows new customers to join without in-person visits. In addition, Banreservas Wallet complements Apple Pay and Google Pay, offering additional contactless options.

We will continue developing products that help micro and small businesses grow

For business clients, we have implemented solutions that optimise cash-management and digital transactions, including Automated Deposit Vaults and a direct interconnection platform with corporate ERP systems that enables automatic reconciliation of large transaction volumes. We also offer a Digital Token for businesses to modernise authentication across digital channels – replacing physical devices with a more secure, efficient solution aligned with international cybersecurity standards. Together, these solutions reinforce Banreservas’ leadership in the sector.

Over the next five years, our digitalisation strategy centres on four pillars.
1) 100 percent digital onboarding and services: ensuring that both individuals and businesses can open, manage, and close products through digital channels, supported by advanced biometrics and security controls.
2) AI-powered hyper-personalisation: leveraging AI and data analytics to deliver more contextual, proactive financial solutions.
3) Cloud scalability and resilience: consolidating migration to cloud platforms for greater agility in responding to regulatory change, demand spikes, and new product launches.
4) Expansion into digital ecosystems and BaaS: deepening partnerships with fintechs, companies, and government entities through Banking-as-a-Service models that expand innovation and self-service.
With this roadmap, Banreservas seeks not only to modernise its digital channels but also to redefine how customers interact with financial services – placing innovation, accessibility and inclusion at the centre of the bank’s strategy.

Charting the horizon towards sustainability

In today’s world, where social, environmental and economic challenges are increasingly complex, sustainability has moved from being a trend to an urgent necessity. Within this context, Banco Popular Dominicano has assumed a leading role in promoting a business model grounded in sustainability, integrating this vision across all levels of its institutional structure. This article explores in depth the strategic management behind the bank’s sustainable vision, highlighting its pillars, achievements, challenges, and the key role of corporate communication.

Since its opening in 1964, Banco Popular has been guided by a philosophy centred on the economic, social and environmental development of the Dominican Republic. Over time, this philosophy has evolved into a comprehensive approach called ‘Responsible Banking.’ Under the leadership of Don Alejandro Grullón E., followed by Don Manuel A. Grullón and myself, the bank has consolidated an organisational culture that aligns with its founding principles, now focused on sustainable development. The shift in mindset towards sustainability came from the understanding that economic growth cannot come at the expense of collective wellbeing or environmental preservation. Sustainability is not just a strategy – it is a conviction that guides business decisions to ensure progress does not compromise future generations.

Sustainability strategy
Banco Popular has developed an institutional action model based on eight fundamental elements that collectively build its sustainable vision. The first is addressing societal expectations and demands. By actively listening to society, the bank delivers inclusive and equitable solutions. Second, its management philosophy is based on ethical principles, transparency, and responsibility, guided by a long-term vision.

The third element is alignment with the Sustainable Development Goals (SDGs), which serve as a decision-making framework. Fourth is the adherence to the 2019 Principles for Responsible Banking, committing the bank to finance sustainable development, reduce social and environmental risks and promote inclusion.

Sustainability is not just a strategy – it is a conviction that guides business decisions

The fifth element considers business needs, recognising that sustainability enhances competitiveness, efficiency and the creation of shared value. Sixth is the diversity of initiatives that include actions in energy efficiency, financial inclusion, community development and socially impactful products.

The seventh element is institutional positioning, which strengthens the bank’s leadership in sustainability as a differentiating factor in the market.

Finally, the eighth element is leadership in the transformation agenda, with Banco Popular taking a leading role in transitioning to a more just and low-carbon economy. The sustainability model at Banco Popular is strengthened by the Sustainability and Reputation Committee, which ensures that all actions align with stakeholder interests and are measured by impact indicators.

Strategic use of communications
Corporate communication is key to building Banco Popular’s credibility and reputation. It goes beyond informing – it creates meaning, mobilises allies and fosters internal education. Transparent communication strengthens institutional reputation, reduces risks, helps all stakeholders understand the purpose behind sustainable decisions, facilitates and promotes strategic partnerships with NGOs, government and businesses, fosters a culture aligned with sustainable values and ensures the organisation’s social legitimacy – an essential element for operating with societal support. In this way, communication becomes a tool for transformation and leadership.

Banco Popular was the first bank in the insular Caribbean to adhere to the UNEP-FI Principles for Responsible Banking. This involves concrete commitments such as aligning with the SDGs and the Paris Agreement, maximising positive impacts, working responsibly with clients, collaborating with stakeholders, implementing effective governance with measurable goals and ensuring transparency and accountability. These principles strengthen reputation, improve risk management, attract international financing and foster innovation.

Banco Popular has proven that it is possible to generate economic profitability while promoting social and environmental development. Investments in renewable energy, financial education, and green products have not only strengthened client relationships but also opened up new business opportunities.

Key projects and achievements
In the field of renewable energy, the bank has approved over $525m in projects with 780MW of installed capacity. Its portfolio of green products has disbursed more than RD$3,000 million ($47m), benefiting over 800 individuals.

Through its Environmental and Social Risk Management System (SARAS), the bank identifies and mitigates risks in financed operations, aligning with international frameworks. Since 2019, Banco Popular has published annual sustainability reports following Global Reporting Initiative (GRI) standards. Since 2022, these reports have been independently verified by KPMG, ensuring transparency and traceability.

Effective communication fosters a culture aligned with sustainable values

Initiatives such as ‘Emprende Mujer,’ ‘Finanzas con Propósito,’ and ‘Excelencia Popular’ promote education, entrepreneurship and women’s inclusion. In 2024, more than 1,200 women were impacted and 650 scholarships were awarded. Over 75,000 small and medium-sized enterprises have received financial support, boosting local development.

Since 2014, Fundación Popular has led health, education, and environmental projects such as the Yuna Centre, watershed reforestation, and community aqueduct construction. It has also supported postgraduate programmes in CSR and sustainability, benefiting more than 500 professionals.

More than 3,000 Banco Popular volunteers participate in initiatives spanning health, the environment, education, and community development.

This volunteerism reflects a corporate culture aligned with institutional purpose. Leading the shift toward sustainability within a large financial institution has involved overcoming resistance, promoting ongoing education, and exercising empathetic leadership. Sustainability has moved beyond being the task of one department – it is now a shared responsibility across the organisation.

The next generation
The future of sustainability needs ethical, creative, and committed communicators – individuals capable of creating meaning, mobilising people, and driving real transformation through both words and actions. Banco Popular has demonstrated that sustainability can be the central pillar of a corporate strategy without compromising profitability.

With a clear vision, solid governance, high-impact projects, and effective communication, it positions itself as a leader in sustainable banking in the Caribbean. For future generations – especially women – there is both the challenge and an opportunity to lead with ethics, purpose, and the conviction that every action matters.

United no more?

In the summer of 1945, leaders from 50 nations gathered in San Francisco to sign the United Nations Charter, pledging to “save succeeding generations from the scourge of war.” This powerful promise, written as the world was reeling from the horrors of the Second World War, would serve as the guiding principle for the new United Nations – an intergovernmental body established to promote peace and cooperation in the fragile post-war period.

Now, 80 years on from its ratification, the foundational pledge of the UN is coming under increasing strain. This year, devastating conflicts in Gaza, Ukraine and Sudan have made it seem that global peace is moving ever further out of reach. The world is now experiencing its highest level of conflict since the Second World War, with 59 active conflicts and an estimated 233,000 associated deaths in 2024. Each ongoing conflict brings with it untold suffering, while the economic impact of this violence now stands at $19.97trn, representing 11.6 percent of global GDP. According to the Global Peace Index, nations spent $15trn on military and internal security costs – a figure that dwarfs the $47bn spent on peacekeeping and peacebuilding.

With so much at stake, the UN is coming under increasing pressure to deliver on its foundational pledge and reaffirm its position as a powerful peacekeeper. As the organisation marks a landmark anniversary, can it find a way to reassert itself on the fragmented global stage?

A force for good
Since its creation, the United Nations has demonstrated its ability to deliver on its peacekeeping pledge and has played a vital humanitarian role in some of the world’s most dangerous and devastating conflicts. Over the last 80 years, the UN has helped to end conflicts and support mediation efforts in dozens of countries, from the Middle East to Central America. In 1988, the United Nations Peacekeeping Forces were awarded the Nobel Peace Prize for ‘preventing armed clashes and creating conditions for negotiations,’ highlighting the UN’s central role in fostering collaboration and lasting peace.

When accepting the award, the then Secretary-General, Javier Pérez de Cuéllar, told the Oslo audience that the essence of peacekeeping “uses soldiers as the servants of peace, rather than the instruments of war.”

By providing basic security guarantees in crisis situations, the UN’s peacekeeping forces have been able to stabilise fragile regions and support peaceful political transitions in regions blighted by conflict. In Mozambique, the organisation played a significant role in facilitating the transition from civil war to peace after a devastating 16-year conflict. After the signing of the 1992 Rome General Peace Accords, the UN deployed the United Nations Operation in Mozambique (ONUMOZ), to monitor the ceasefire, oversee the demobilisation of troops and support peaceful post-conflict elections. Backed by some 6,500 UN troops and military observers, the ONUMOZ operation helped to transition Mozambique to a multi-party democracy and establish the vital foundations for long-lasting peace.

Similarly, the United Nations Transition Assistance Group (UNTAG) played a crucial role in supporting Namibia’s transition to independence in 1989 and 1990. Namibia, then known as South West Africa, had been illegally administered by South Africa for decades, with years of armed insurgency displacing thousands of civilians and causing widespread violence. After establishing a ceasefire between warring parties, the UN began to deploy peacemakers to the region, to monitor the withdrawal of South African forces and ensure that safe and fair elections could be held. Despite the complexities of the mission, UNTAG was able to successfully establish a peace plan that emphasised local ownership of the nation’s transition to independence. Today, the operation is regarded as one of the most successful peacekeeping missions in UN history and serves to illustrate how the organisation can positively change the trajectory of a nation – when it is operating at its best.

The pressures of peacekeeping
The UN’s historic peacekeeping missions show that when properly resourced, adequately funded and politically supported, the organisation can achieve real success in regions blighted by conflict. This success, however, is by no means guaranteed. Without sufficient powers or legitimacy, peacekeeping missions can falter, leaving civilians vulnerable to a resumption of violence. In the 1990s, atrocities in Rwanda and Bosnia illustrated the limits of international interventions.

The United Nations Assistance Mission for Rwanda (UNAMIR) entered Rwanda in 1993, with a mandate to enforce the Arusha Accords peace agreement, which was meant to bring an end to the nation’s bitter civil war. With just 2,500 troops and a limited budget, the mission was hampered from the very outset. Despite a growing awareness of the violent intentions of armed militia groups in the country, the UN Department of Peacekeeping operations did not permit mission troops to disarm or demilitarise these groups, with peacekeepers unable to act proactively to prevent the mass killings that followed.

With many UN member states unwilling to commit to a larger, more robust intervention in the region, the ill-equipped and outnumbered UNAMIR troops were insufficient to address the unfolding humanitarian crisis. Between April and July 1994, militia groups are estimated to have killed between 800,000 and one million people, marking one of the darkest moments in the history of international peacekeeping. A little over a year later, Dutch peacekeeping troops were unable to stop the massacre of 8,000 Muslim men in Srebrenica, a town that was supposed to be a UN-protected ‘safe area’ for Bosnian civilians. The lightly armed Dutch unit were easily overrun by Bosnian Serb forces, in what was the largest massacre on European soil since the UN’s founding. In the years since, the organisation has recognised “the failure of the United Nations and the international community to prevent this tragedy.” Thirty years on from these atrocities, the UN says that important lessons have been learned from the failures of the 1990s. Adequate resources are essential to any peacebuilding mission, as is effective leadership and a clear, robust mandate. Heeding early warnings and acting preventatively is vital to addressing violence before it escalates. And for peacekeeping to be more than immediate crisis response, missions should be locally grounded, with local leaders taking ownership of the long-term peace process. These are lessons learned at a painful price. But despite the UN’s vows to avoid the mistakes of the past, its current paralysis in the face of widespread violence and war is once more prompting concern over its ability to fulfil its peacekeeping mandate.

Fit for purpose?
As conflicts rage around the world, the need for peacekeeping and peacebuilding is high. Despite providing vital humanitarian support in crisis-ridden regions, the UN has been seemingly powerless to intervene in some of the world’s bloodiest conflicts. The veto powers of the Security Council’s five permanent members – China, France, Russia, the UK and the US – have stymied the organisation’s ability to respond to major crises, including the Russian invasion of Ukraine and Israel’s war in Gaza.

Since launching its full-scale invasion of Ukraine in February 2022, Russia has continued to use its veto power to block action by the Security Council, stirring debate about the body’s effectiveness and ability to defend international peace. These discussions have been further amplified by the repeated US vetoes on resolutions on Gaza. Amid a worsening humanitarian crisis in the Gaza strip, the US voted against ceasefire resolutions on six separate occasions, leaving UN peacekeeping at a standstill in the war-torn region. Sidestepping any UN-led efforts, President Trump has instead forged ahead with his own 20-point plan for peace in Gaza, undermining the organisation’s long-running endeavour to secure collective agreement on conflict resolution in the region. With the UN seemingly unable to intervene in high-stakes scenarios, many are now questioning whether the Security Council may be ripe for reform.

The body – which is primarily responsible for maintaining international peace through resolutions, peacekeeping missions and sanctions – has remained largely unchanged since its founding in 1946. Increasingly, its make-up is thought to be unrepresentative of the international community and the evolving geopolitical environment. Since its formation, the council’s elected membership has grown modestly from six elected members to 10, while its permanent membership remains the same as in 1946. Regional powers and member states from the developing world have been calling for a stronger voice at the council, with some seeking to secure permanent seats of their own. Greater representation may well give the body enhanced legitimacy in the eyes of the international community, with the council better able to reflect the current geopolitical landscape, rather than the post-Second World War political order.

Critics also argue that the increasing use of veto powers is limiting the council’s functionality. While France and the UK have not used their veto since 1989, China, Russia and the US have been using their veto powers more frequently in recent years. Since the outbreak of the Syrian civil war in 2011, Russia – often joined by China – has used its veto power close to 20 times to block resolutions that would protect Syrian civilians suffering under the Bashar al-Assad regime. Since the 1970s, the US has used the veto far more than any other permanent member of the council, with the majority of its most recent vetoes relating to resolutions on Israel’s war in Gaza. The recent uptick in vetoes by the permanent five is reflective of the fractured times we are living through.

With members increasingly at odds with each other, last year the Security Council passed just 41 resolutions – the lowest number since 1991. As differences and disagreements hold the UN back, how can the organisation make good on its basic principles of peace, security and cooperation?

The United Nations Interim Peace Forces (UNIFIL) stand guard by the border between Lebanon and Israel

Future-proofing operations
As the UN celebrates its 80th anniversary, it feels right to reflect on its role on the global stage. The world of today is very different to that of 1945, and the UN needs to ensure that it can adapt to an era of rising political tensions and budgetary pressures.

“This is a good time to take a look at ourselves and see how fit for purpose we are in a set of circumstances which, let’s be honest, are quite challenging for multilateralism and the UN,” said Guy Ryder, Under-Secretary-General for Policy for the UN, at the launch of the ambitious UN80 Initiative.

The system-wide reform programme seeks to modernise the UN and improve its efficiency across the board, enabling the organisation to remain effective, cost-efficient and responsive to today’s global challenges. Taking a three-pronged approach to reform, the initiative will look at improving internal efficiencies by cutting red tape, as well as reviewing the organisation’s 40,000 mandate documents to see what can be prioritised and deprioritised. The last and arguably most ambitious workstream looks at whether “structural and programme realignment are needed across the UN system,” in order to simplify operations going forward.

“Eventually, we might want to look at the architecture of the United Nations system, which has become quite elaborate and complicated,” said Ryder.

This bold, far-reaching initiative is a clear statement of intent for the UN, signaling its aspirations to transform itself into the peacekeeping power that the world needs today. Shrinking budgets and growing geopolitical divides are placing ever-increasing strain on the organisation, and the UN will need to adapt to these pressures if it is to stay relevant in today’s fragmented world. Long-standing criticisms of the organisation’s structure – including its limited Security Council membership – may need to be addressed if the reform process is to be fully inclusive and transparent. These are not simple changes for an organisation as complex as the United Nations to make, but the need to revitalise and reinvigorate the UN is more pressing than ever before. As the organisation is increasingly sidelined in primary peacemaking, and faces repeated attacks on its legitimacy from US President Donald Trump, the UN must strengthen its resolve and reaffirm its commitments to its core values, while responding to the demands of today.

“We will come out of this with a stronger, fit-for-purpose UN, ready for the challenges the future will undoubtedly bring us,” Ryder said of the initiative.

Feeling the strain
Of the many challenges facing the UN, its funding shortfalls may be the most acute. The organisation will need to cut an estimated $500m from its 2026 budget and lose up to 20 percent of its staff as it looks to cope with a huge reduction in funding from the Trump administration. Against this worrisome backdrop, it is hard not to conclude that the UN80 Initiative may be driven by a need to dramatically cut costs.

When properly resourced and politically supported, the UN can achieve real success

The UN’s liquidity issues primarily stem from member states failing to fulfil their financial obligations, leaving a substantial budget shortfall and cash deficit. While the US is the largest debtor, owing approximately $1.5bn in withheld funds, it is far from the only member state to miss its regular payments.

Last year, 152 nations out of 193 member states paid their full UN contributions by the deadline of December 31, while in 2023, that number was just 142. Delayed and missed payments to the UN regular budget – which covers core administrative and operational costs – are placing ever-increasing strain on the organisation, while many countries are also slashing their foreign aid budgets, with devastating effects on humanitarian and peacekeeping operations.

The impact of funding cuts on important, life-saving programmes is already becoming apparent. The UN Refugee Agency (UNHCR) has warned that it may need to cut or suspend essential services in crisis-afflicted regions such as the Democratic Republic of the Congo and Bangladesh, putting the health of 13 million displaced people at risk. The UNHCR health budget has been cut by 87 percent compared to 2024, with devastating consequences for some of the world’s most vulnerable people.

The UN’s Nobel Prize-winning World Food Programme (WFP) may also be forced to scale back or halt its life-saving operations, even as hunger crises around the world deepen. With its budget falling 34 percent in 2025, the WFP has said that it will be forced to reduce emergency food assistance, affecting up to 16.7 million people facing food insecurity and famine. Yemen faces the most severe cuts to its food aid system, with 4.8 million people at risk of losing life-saving support. In Cameroon, WFP resources are already at critically low levels, placing half a million refugees at risk of hunger and malnutrition. Elsewhere, HIV and AIDs support programmes in Tajikistan are suffering from shrinking support, as are protections for women and girls in crisis zones across Africa and the Middle East.

“Budgets at the United Nations are not just numbers on a balance sheet – they are a matter of life and death for millions around the world,” UN Secretary-General António Guterres told reporters at the UN80 Initiative launch. While the proposed structural changes of the UN80 Initiative will not ease the pain of budget cuts on the UN’s life-saving humanitarian work, they may well help the organisation to make some valuable savings through increasing effectiveness and efficiency. In this new era of dramatically reduced foreign aid funding, every penny counts.

United Nations building, New York, US

A changing world
There is no doubt that international diplomacy is in a very difficult place. Decades-long relations are fraying, as major powers are increasingly pursuing their own interests. If the old order of Pax Americana is truly dead, then President Trump’s speech at the 80th United Nations General Assembly might have been the final nail in its coffin. The theme for the 80th session was ‘better together,’ but Trump’s speech spoke of a deeply divided world. Over the course of an hour, the US president took aim at his opponents, saving his most scathing criticisms for his hosts. Repeating his much-disputed claim that he has personally ended seven wars in the last seven months, Trump accused the UN of inaction and “empty words.”

“What is the purpose of the United Nations?” he asked in his wide-ranging speech. “It has such tremendous potential but it is not even coming close to living up to that.”

By its own admission, the UN could indeed stand to strengthen its position and improve its ability to respond to today’s challenges. But what Trump’s speech failed to acknowledge was how repeated attacks on the UN are contributing to a wider erosion of trust in global institutions. For decades, multilateral bodies such as the UN have been able to bring parties around the table to work out collective solutions to the most complex global problems. Even in the most testing times, the organisation has served as a platform for dialogue, collaboration and collective action, encouraging unity over isolationism.

The UN must strengthen its resolve and reaffirm its commitment to its core values

In today’s fragmented and militarised global landscape, trust in the multilateral system is faltering. The UN’s legitimacy and effectiveness is under ever-increasing scrutiny – and this scrutiny is curtailing the UN’s ability to act. Without strong political support from its member states, the UN’s role on the global stage will be inevitably diminished.

“Multilateralism is under fire precisely when we need it most,” said Guterres in his first year as UN Secretary-General. “We need stronger commitment to a rules-based order, with the United Nations at its centre.”

Simply put, the world needs more collaboration, not less. History has taught us that isolationism often leads to insecurity and instability, with civilians left to pay the price of these political decisions. For all its flaws, the United Nations remains the most important forum for collective action on the complex challenges facing the world today. As it celebrates its 80th birthday, renewed political will may be the greatest gift the UN can ask for.

Geneva’s deliberate evolution in a shifting insurance landscape

For Geneva International Insurance, 2025 was a year of intentional progress, not a sprint for change, but a deliberate strengthening of the foundations that sustain long-term trust. In an environment marked by regulatory tightening, shifting asset allocations, and accelerating digital transformation, our focus remained clear: to evolve with purpose, and to ensure that every advancement aligns with our core commitments to governance, solvency and client confidence.

Our digital transformation agenda took centre stage this year, built on a simple premise: to make it easier for the right people to do the right things. We expanded digital tools that empower introducers (agents) with seamless access to client data and portfolio information, enabling quicker decision-making and transparent communication.

This wasn’t just about technology; it was about creating an ecosystem of efficiency. The new portals and data-sharing frameworks introduced in 2025 reduced friction between policy administration, compliance and relationship management, all while reinforcing data integrity and security. For Geneva, digitisation is not an operational convenience but a strategic enabler, turning information into insight and partnerships into progress.

Building frameworks
Regulation continues to evolve, and so must we. Over the past year, Geneva strengthened its internal frameworks designed to identify, interpret and integrate regulatory changes before they arrive. This proactive stance ensures that compliance remains a culture, not a checkbox. As the global investment landscape grows more complex, Geneva has placed even greater emphasis on valuation governance and documentation. Our ongoing enhancements in this area ensure that the information supporting private and alternative asset positions is both comprehensive and regulator ready. It is an extension of our philosophy: that structures built with clarity today will withstand scrutiny tomorrow.

The global insurance landscape in 2025 revealed a clear trend, a strategic pivot toward private markets. According to S&P’s 2025 Insurance Investments Report, insurers across jurisdictions increased allocations to private credit, infrastructure and other alternative assets in search of diversification and yield.

For PPLI structures, this shift makes the asset side of the equation more compelling than ever. The ability to access and manage bespoke portfolios within compliant insurance wrappers remains one of PPLI’s greatest strengths, and Geneva has positioned itself to meet that moment. Our investment governance frameworks have been enhanced to match opportunity with oversight, ensuring that as exposure to private markets expands, so too does our commitment to transparency, diversification, and client protection. We see this evolution not as a trend, but as a trajectory; one that aligns perfectly with our philosophy of long-term value creation through disciplined flexibility.

Navigating regulations
The broader regulatory landscape this year has underscored themes that have always been central to Geneva’s DNA: solvency discipline, client-centric governance, and responsible innovation. The 2025 Deloitte and PwC outlooks on the global insurance sector both emphasised the growing intersection between technology, transparency and trust, an alignment we have long anticipated.

Structures built with clarity today will withstand scrutiny tomorrow

While some view regulation as an external pressure, we see it as an internal compass. It guides how we design products, manage risk and communicate with clients. Each new standard, whether in data management, solvency reporting, or consumer protection represents an opportunity to refine how we operate. At Geneva, governance is not a compliance function; it is a value proposition.

As we look toward 2026, our focus remains on building relevance through resilience. We will continue expanding our access to private-market opportunities, including digital and alternative asset classes, in ways that preserve the integrity of our policy structures and meet the sophisticated needs of our clients.

Digitally, the next phase of transformation will go beyond portals and dashboards, integrating intelligent analytics, policy-performance monitoring, and tailored client insights into every aspect of our service delivery. Our goal is to give both introducers and policyholders the visibility they need, supported by the governance they trust. Product and policy innovation will also remain a strategic priority. Whether through new policy design, enhanced liquidity features, or improved integration of alternative investments, our objective is constant: to ensure Geneva’s offerings remain as dynamic as the markets in which we operate.

The Geneva Standard
If 2025 was the year of refinement, 2026 will be the year of resonance, where every initiative connects back to what defines us. In every shift, there is signal and there is noise. Our focus remains on the signal: disciplined innovation, regulatory foresight, and the quiet confidence that comes from getting the fundamentals right. At Geneva, we continue to evolve, not for the sake of keeping up, but for the sake of keeping true. That is, and will always be, the Geneva Standard.

Building Nigeria’s future

On October 1, Nigeria celebrated 65 years of independence. President Bola Ahmed Tinubu, who has presided over a period of remarkable economic recovery anchored on fundamental reforms in recent times, acknowledged the country is making progress in the right direction. Though out of the woods, Nigeria is “racing against time” in guaranteeing long-term economic transformation, the President observed. He went on to cite the need to invest in roads, rail, energy, schools, hospitals and other critical infrastructures for sustainable development.

Tinubu’s clarion call echoes the very existence of Coronation Merchant Bank (Coronation MB). In operation for more than three decades, Coronation MB is driven by a vision of wanting to see a continent transformed and a mission of providing transformational solutions for Africa’s challenges. In pursuit of these goals, the bank has grown to become one of Nigeria’s leading financial institutions offering services across investment banking, corporate finance and wealth management, among others.

In 2024, Coronation MB’s shareholder funds stood at ₦45bn ($30.6m) with gross earnings of ₦70bn ($47.5m) and ₦12.2bn ($8.2m) in profit after tax. With assets in excess of ₦558.6bn ($380.2m), the bank’s growth has come by owing to strong governance, disciplined risk management, unlocking value for clients, deepening stakeholder trust and delivering sustainable returns. Besides, Coronation MB is one of the most highly rated financial institutions in Nigeria. This includes a ‘BBB’ rating from Agusto & Co and a Fitch rating of B- with a ‘stable outlook,’ all of which reflect the bank’s consistent asset quality and strong capitalisation.

Banking’s beating heart
For Coronation MB, the investment banking division is the heartbeat of the bank’s central role in Nigeria’s socio-economic development journey. This it does through its full suite of services cutting across capital raising, mergers & acquisitions, advisory to project and structured finance. The services, coupled with strong principles of strategic transformation, governance and professionalism, and a culture that blends innovation with execution discipline, have catapulted the bank to becoming a trusted partner for both private and public sector clients.

Nigeria prides itself on being one of the most vibrant and liquid capital markets in Africa

Granted, Nigeria is witnessing an economic renaissance. In the second quarter of this year, the country recorded an impressive 4.2 percent gross domestic product (GDP) growth rate, the highest in four years. Inflation is on a downward trajectory, declining to 18 percent in September from over 30 percent in 2024. Foreign reserves are booming, surpassing $42bn, while the public debt is projected to decline from 42.9 percent in 2024 to 39.8 percent this year.

The improving macroeconomic fundamentals are giving Nigeria ample headroom to be creative and innovative on strategies that will see one of Africa’s biggest economies realise its infrastructure sovereignty through domestic capital mobilisation. This is critical. Nigeria’s infrastructure deficit, estimated at over $100bn annually, remains one of the biggest constraints to economic growth and competitiveness. National Integrated Infrastructure Master Plan and African Development Bank data show the country’s infrastructure stock currently stands at only about 35 percent of GDP compared to an international benchmark of 70 percent. The gap cuts across energy, transport, housing, utilities and social infrastructure.

One primary cause of the huge gap is the fact that public funding alone cannot meet the scale of the investments required. Also, reliance on short-term, foreign-currency denominated loans from commercial banks as well as multilateral partners have proved to be largely unsustainable, often due to pains that come with maturity and exchange-rate mismatches. For this reason, mobilising long-term domestic capital becomes the ideal strategy for financing infrastructure projects.

Evidently, resources are available domestically. Currently, capital markets and institutional investors such as pension funds, insurance companies, high-net-worth investors and the Nigeria Sovereign Investment Authority collectively manage over ₦42trn ($28bn) in long-term assets. This, in essence, is a significant financial pool, which, if properly harnessed, can easily finance infrastructure needs sustainably.

For this to happen, developing transparent, well-structured instruments like infrastructure debt funds, project bonds and unit trust structures among others is critical. To make them attractive, the instruments must not only be long-term but should also be local currency denominated.

At the forefront
Coronation MB is at the forefront of mobilising domestic capital for infrastructure financing through the structuring of innovative equity and debt instruments. One such instrument is the Coronation Infrastructure Fund (Coronation IF) that is specifically designed to address one of Nigeria’s most critical challenges – lack of long-tenor, local currency financing for infrastructure. Through the ₦200bn ($133.3m) close-ended, naira-denominated fund, the bank, through its affiliate, Coronation Asset Management, is facilitating the channelling of domestic savings into viable infrastructure projects in sectors such as telecoms, real estate, utilities, social, transport, and energy. Notably, the focus is on projects that provide essential services including power generation and distribution, housing, waste management, data centres, and social amenities such as hospitals and education facilities.

Going by the success of the fund, there is no doubt investors covet instruments that generate predictable returns. Under Series I, the fund issued about 88 million units at ₦100 per unit, successfully raising ₦8.8bn ($5.9m). This was the largest amount ever raised for a maiden infrastructure fund in Nigeria. Coronation MB intends to ensure the fund continues to be a catalyst for economic growth by improving investor confidence and creating a consistent pipeline of bankable infrastructure projects.

Coronation IF is among the many solutions the bank has provided in the infrastructure financing space. Others include hedging arrangements, financial modelling, trade finance, private markets, public private partnerships (PPPs), and many more. Boasting a rich basket of clients cutting across governments (both federal and states), corporate, financial institutions and ultra-high net worth individuals, the bank has been involved in a growing list of landmark infrastructure financing deals.

In one such deal over the past 12 months, Coronation MB was the joint issuing house and bookrunner on the ₦32.5bn ($21.6m) 20-year Craneburg EKSG Motorway infrastructure bond. Backed by InfraCredit’s AAA guarantee, the transaction was initiated for financing the construction of a 17.84-kilometre phase of the Ado-Ekiti toll road. The bank was also involved in the ₦35bn ($23.8m) seven-year fixed rate bond for Cross River State the proceeds of which are earmarked for the acquisition of aircrafts and the dualisation of highways in the state. In both transactions, Coronation MB showcased its expertise in mobilising domestic capital for financing infrastructure projects that are critical for economic development.

While Coronation MB has become a powerhouse in bond issuances, the bank is also actively involved in PPPs. With governments being under pressure due to squeezed resources, PPPs are powerful mechanisms that are unlocking private investments for public good. By deploying its financial advisory expertise, structuring capabilities, capital markets access and private market, Coronation MB can bridge the gap between governments, project sponsors and institutional investors, thus making PPPs bankable and investable. In one facet, the bank seeks to collaborate with development finance institutions and specialised financial institutions to provide credit enhancements and blended finance solutions for PPP transactions. The strategy makes transactions more attractive to private capital, thereby enabling projects to achieve investment-grade status.

Closing the gap
Nigeria understands that having many tributaries makes it possible to mobilise domestic resources to close the infrastructure financing gap. Islamic finance is another stream, one that is particularly popular for the federal government. In recent years, the federal government has cumulatively raised ₦1.3trn ($928m) through eight Sukuk issuances. The most recent was in May when the government raised ₦300bn ($200m). The proceeds have financed over 4,000 kilometres of roads and bridges across the country, directly linking Islamic finance to tangible national development.

Coronation MB is at the forefront of mobilising domestic capital for infrastructure financing

Coronation MB considers Islamic finance an increasingly vital pillar of Nigeria’s capital market and infrastructure financing ecosystem. In this space, the bank played a pioneering role as the first arranger of TrustBanc’s NICP programme under FMDQ’s revised wakalah framework, enabling corporates to issue Shariah-compliant short-term instruments. The innovation underscored the bank’s commitment to supporting both public and private sector entities in accessing non-interest capital. The ultimate goal is not only supporting the country’s sustainable economic development but also deepening the capital markets and expanding financial inclusion. Nigeria prides itself on being one of the most vibrant and liquid capital markets in Africa. However, the market is still developing with a focus on increasing depth, structure, and the range of instruments available for long-term infrastructure financing.

As a leading investment bank, sustainability is at the core of Coronation MB’s operations. The bank is cognisant of the fact that long-term projects have deep environmental and social footprints. For that reason, environmental, social and governance (ESG) integration is not just a compliance requirement for the bank. Rather, ESG is a strategic imperative for delivering lasting value to clients, investors, and the communities. This understanding has ensured that sustainability is embedded throughout its advisory and arrangement processes for infrastructure financing, including environmental feasibility studies for projects.

Coronation MB is also a leading house in facilitating the issuance of green bonds and other sustainability-linked instruments for its clients. One such transaction was the Craneburg EKSG Motorway infrastructure bond in which the bank acted as joint issuing house. The ₦32.5bn ($22m) bond is a classic indication of the bank’s strong commitment to ESG integration in infrastructure financing. Apart from environmental studies, the project promoted local content participation, job creation, and community engagement throughout its execution.

Grupo Financiero Banorte: Supporting Mexico for 125 years

After receiving the World Finance awards for Best Retail Bank, Mexico, and Best Corporate Governance, Mexico, for 2025, Grupo Financiero Banorte’s chairman, Carlos Hank González, reflects on the bank’s 125 years of supporting Mexico’s growth, and why it will remain committed to building a thriving Mexico in the years to come.

Carlos Hank González: Banorte has been supporting families and businesses in our country for 125 years.

We were born in Mexico, grew up with Mexico, and remain convinced of Mexico’s great potential.

When World Finance announced that Banorte was both recognised as Best Consumer Bank and as Best Corporate Governance in Mexico, we confirmed that we are on the right path. Because we are precisely focused on being the best bank for our customers, and keep the best corporate governance and practices.

Being the best implies offering the best experience in the market, with the best customer satisfaction rates. Being the best means getting to know each customer in depth, anticipating their needs, and offering tailor-made services – what we at Banorte call hyper-personalisation.

It also means having the best business operation, to be more efficient and faster. We are convinced that the ordinary, made with passion for our customers, becomes extraordinary.

Mexico deserves a strong, sound and committed bank, that always grows with its people. That bank is Banorte.