Author: itsupport

The evolving Phillipine economic landscape

Posted on by itsupport

The year 2021 saw the Philippine government implementing a delicate balance between health and the economy. It rolled out the COVID-19 vaccination programme nationwide, enhancing the capacity of our health system while loosening pandemic restrictions, despite high COVID-19 cases in the National Capital Region. This allowed for intermittent lockdowns, gradually opening the economy, bolstering consumer confidence and domestic demand, and eventually leading to economic recovery.

This augured well for the Philippines, albeit belatedly across some sectors, as our economy grew at 7.8 percent GDP in the fourth quarter of 2021 and posted a 5.7 percent GDP for the whole year, a leap from the previous year’s negative 9.5 percent. Fourth quarter GDP was even more impressive considering that Typhoon Odette, the strongest typhoon to hit the Philippines in 2021, unleashed havoc across many areas of the country in December 2021.

Meanwhile, two of the Philippine economy’s biggest pillars, the inward remittance from overseas Filipino workers and the Business Process Outsourcing (BPO) industry, continued to contribute substantially to the country’s GDP, favourably impacting the country’s balance of payment and foreign exchange reserves. The BPO industry has been the biggest generator of jobs, an advocate of countryside development, and an enabler of support industries such as food, banking, real estate, hospitality and transportation, among other sectors.

The Philippine insurance industry remained resilient, posting 21.5 percent growth in net premiums written at PhP374.7bn ($6.73bn). The life insurance sector accounted for 82.8 percent of the total, the non-life sector 13.7 percent, and the mutual benefit association sector 3.5 percent. Clearly, the industry rode on the growth momentum of the economy, which has gained traction amid improved mobility and public sentiment.

This impressive growth, as our then finance secretary Carlos Dominguez III enthused, “mirrors the efficiency and swift action of the Insurance Commission (IC) in maximising the use of digital tools and other measures to ensure the resilience of this sector amid the pandemic”.

The IC fast-tracked the digitalisation efforts of the industry through the issuance of regulatory measures that encouraged optimisation of digital technology, thus providing the necessary support to enable industry stakeholders to operate effectively despite the lockdowns.

The industry heeded the call and adapted to the evolving business landscape during the continuing ‘new normal’. Some companies used artificial intelligence to enable them to customise their products and systems, allowing them to extend their services. With the collaboration of business ecosystems and initiatives, the insurance industry managed to thrive despite the pandemic-related challenges that continued through 2021, with relevant financial metrics posting positive growth.

Similarly, the non-life insurance sector recovered from the pandemic-induced business contractions, registering Php51.2bn (approximately $918m) net premiums for 3.82 percent growth, as compared to negative 16.7 percent in 2020. Based on total gross premiums written, 12.63 percent growth was registered versus the previous year’s negative 9.37 percent decline in business.

In the absence of a detailed sector breakdown of business, we can surmise that this growth came on the back of business recovery of the sector’s major growth drivers. These included new motorcar sales, which rose to 20 percent, versus the previous year’s negative 39.5 percent dive, and the ‘build, build, build’ infrastructure programme, which acted as a catalyst to the growth in property, construction and engineering insurance segments.

Steadfast and resilient
At Standard Insurance, we ensure that our customers have world-class protection. We remain committed to our vision and our mission, complemented by our corporate values – massive transformative purpose, to attain peace of mind for all mankind. We have ingrained these values in our DNA so that we are led by them through all aspects of our operations. Standard Insurance is resilient, riding on the performance of economic and industry drivers but primarily underpinned by its innovative solutions and its relevant, competitive and sustainable product lines.

As the government intermittently eased mobility restrictions in 2021, insurance drivers of the non-life insurance sector slowly recovered. Motorcar and other property sectors were revitalised and sales numbers spiralled upwards. Our sales teams muscled through the market, surpassing expectations. They have always been resilient, professionally pursuing more business and intermediaries, closing deals fairly but with sustained profitability.

Diversification of market coverage nationwide was key: expanding existing and new markets, intermediaries, dealership tie-ups, relationships and partnerships, among others. We highlighted our promptness, reliability and empathy in claims processing and payments through diverse payment platforms. We met the needs of our customers when they needed us the most.

One of the most important elements that made the company better prepared for this pandemic was having the foresight to explore new ways of creating technological solutions, specifically the decision to industrialise the company’s support centre. To this end, we borrowed the best practices from our BPO subsidiaries of transferring our systems to the cloud, long before the pandemic arrived.

The main objective of this exercise was to prevent an existential threat of complete systems failure at head office, should a devastating catastrophic event occur. That event did not come to pass but our actions prepared us well for the pandemic. We are, in fact, the first domestic insurer to be an Amazon Web Services partner.

This allowed our associates to continue working and accessing systems from anywhere even during the strictest community quarantine. Further, through an internally developed insurance office application (ISSI Office), our agents and branch associates can conveniently perform the whole insurance cycle using only a smartphone. ISSI Office covers our motorcar, travel and personal accident and, most recently, residential and pure office property lines.

To date, our Systems and Technology Group (STG) oversees the smooth operations of our IT infrastructure and ensures that all our systems and infrastructure are contemporary and benchmarked against the best in the world. Our STG systems management team expands and upgrades the functionalities of these systems as the need evolves. We use artificial intelligence and data science to enable a more in-depth analysis of huge databases as well as robotics for automating processes.

All technology efforts are ably supported by our cyber-security team.

These technological advancements are some of our responses to IC commissioner Dennis Funa’s call to “harness the breakthroughs in InsurTech for the local insurance industry.” Of course, planning and preparing is a continuous process, upskilling our associates as well as our intermediaries, and doing whatever it takes to face and withstand any future Black Swans.

Resiliency and human resources
The role and responsibility of each associate is a conscious decision, all working systematically together, forming a well-oiled machine, with the same goals, vision and culture. This is the most important asset that the company values – another key to resilience.

To quote Ernesto T. Echauz, our Group Chairman and Adviser to the Board of Directors: “In whatever we do, it should be to improve the quality of life of our people. We should make sure that they are respected in their communities and are able to pursue their career with the company. As we move along, let us continue to carry out our tasks with the same passion, excellence, competency, integrity and professionalism, both as individuals and as a team.”

He spoke those words many years before the pandemic but they remain relevant now. In line with this, management stood by its commitment at the start of the pandemic. All associates continued to receive their full salaries and bonuses, their benefits and everything they enjoyed pre-pandemic, regardless of the challenges that lay ahead. We continue to empower our associates, even our intermediaries, providing structured training programmes focused on retooling, upskilling and reskilling, as well as developing them to be dynamic and strong leaders now and for the future.

Human resources initiated the ‘You Are Not Alone’ programme, which encourages associates to work through emotional ups and downs by reaching out to trained facilitators or professional psychologists when needed. Corporate sales, meanwhile, initiated a 60-day module that covered both hard and soft skills, culminating in a graduation and awarding ceremony that gave all the sales associates a sense of fulfilment and empowerment. Following this success, the learning and development team is now doing a series of webinars, referred to as ‘Self and Team Empowerment Programme’. Spread across 50 sessions spanning four months, it aims to strengthen the quality of one’s professional and personal life.

Another major programme is the ‘Advanced Management Training Programme’ (AMTP), conducted with top management as both participants and lecturers. AMTP deepens and broadens executives’ technical knowledge and familiarises them with the end-to-end process of insurance and considerations outside their own expertise. Different divisions were grouped into clusters, who then shared their expertise and experiences.

In addition, our human resource team continues to deliver services during this extended health crisis with financial support for those afflicted with COVID-19, as well as facilitating annual physical check-ups, COVID-19 vaccines, medical consultations and shuttle services.

When Typhoon Odette devastated some parts of Visayas and Mindanao, the whole company reached out to our associates in those cities and provinces to help our own recover from this catastrophic event. As President Echauz said, when it comes to caring for each other, everything is personal at Standard Insurance. That is the very essence of our massive transformative purpose – ‘peace of mind for all mankind’ starts with our associates.

Our sustainability and longevity efforts
Standard Insurance actively supports sustainability initiatives in the following areas: education, environment, sports development, music and arts, and hunger and malnutrition. A big part of the company’s sustainability initiative is its lead role in the Philippine operation of the ‘Scaling Up Nutrition’ business network, a global movement whose main objective is to enjoin private companies in a collective effort to eliminate hunger and improve nutrition.

All these initiatives support the United Nation’s 17 sustainable development goals to end poverty, protect the planet and ensure that all people enjoy peace and prosperity by 2030. Beyond and above all these, we are fully committed to doing our share to make this a better world because our past affects our present and our present determines our future.

Innovating to feed the future

Posted on by itsupport

Today, our food production systems are under immense pressure. According to the UN’s Food and Agriculture Organisation, last year, close to 200 million people in over 50 countries experienced acute food insecurity at crisis levels, or worse, caused mainly by economic shocks, extreme weather and conflict.

The war in Ukraine and the lingering impact of COVID-19 on economies around the world are exacerbating inequities in wealth and resources and adding to pressures on global food production. At the same time, wealthy nations need to recognise that food is much more than a mere commodity but an essential building block of our human culture and communities.

Against this backdrop, the world faces an urgent challenge to ensure we can produce enough good-quality food for a global population that’s predicted to reach 10 billion by 2050 – and do it sustainably. We will need to produce 70 percent more food than we do today – a momentous challenge. It will require a fundamental shift in how we think about food consumption and production, as individuals, as communities, as nations and as a global population.

Nutreco has an important role to play, as a research-driven, global leader in animal nutrition. We are passionate about our purpose of ‘Feeding the Future’ by helping customers produce more protein with less negative impact to the environment. To find new and better ways to do this, we invest an average of €34m each year in research and development. We have 65 scientists working across 12 research units, collaborating with over 200 research institutions worldwide. In addition, our NuFrontiers division invests in breakthrough innovation and our recently launched Nutreco Exploration unit (NutEx) explores novel ideas in phytogenics, biotechnologies and physical chemistry and its first innovative products are already in production.

The courage to innovate
We believe we can help farmers sustainably improve productivity by utilising technology and sharing expertise on new farming techniques, but also by exploring genuinely new science that unlocks novel nutritional solutions. Our teams are focused on finding novel and potentially disruptive solutions, while, at the same time, building on our existing capabilities and businesses.

For example, while we remain fully committed to supporting animal farmers, we know that to feed a growing population, our industry must maximise all sources of food protein. These include alternative proteins, which can be a great supplement to animal protein. In our view, it’s more a question of ‘and/and’ than ‘either/or.’

We have responded to this need by committing to long-term investments and partnerships to produce alternative proteins that help meet the growing demand for high-quality food protein and accommodate consumers’ increasingly varied diets. We have invested in plant-based proteins, cultured proteins and fungal fermentation.

Scientific discovery
Another challenge facing our ability to feed the future is the fact that raw material availability and sustainability concerns are driving our industry to source more animal feed ingredients that come from nature but fall outside of an animal’s typical diet, sometimes triggering new physiological challenges. It is crucial that we invest in scientific discovery to find new ways to manage challenges like this that face our entire food system.

We see a golden opportunity to further harness the tech-accelerated ‘big bang’ in biological sciences of the last 15 years

In particular, we want to unleash the potential of two important and complementary areas: phytotechnology and biotechnology. We see a golden opportunity to further harness the tech-accelerated ‘big bang’ in biological sciences of the last 15 years, which has already had a significant impact on the animal nutrition industry. Over the last two decades, phytotechnologies have been successfully exploited for their antimicrobial properties. But, at Nutreco, we are expanding our research to push the boundaries in exploring under-studied possibilities around what medicinal plants can deliver for enhanced animal nutrition.

Recent scientific progress has given us a better understanding of the mechanisms underpinning old, unresolved issues facing farm animals. It has redefined the role of feed and facilitated the creation of specific solutions that can improve production and welfare. Scientific discovery will be an essential part of how we approach innovation going forward, and we believe it can pave the way for a new and transformative approach to the complex issue of food production.

We know there is no single solution to resolving the long-term problems of hunger and food insecurity. It’s a global issue requiring urgent, coordinated action from stakeholders across the food chain and across national boundaries – private industry, governments, NGOs, and trade bodies to name a few. And the stakes are high – ensuring that we have enough nutritious food to feed our growing population in the years and generations to come.

Taxation of ‘super’ profits: Is taxation the answer to everything?

Posted on by itsupport

Because of (or thanks to, depending on one’s point of view) the crisis born from the war between Russia and Ukraine, the companies involved in the energy sector have made higher profits than usual. A growing number of European countries (Greece, Romania, Hungary, Italy, Spain, the UK, Germany and France) have seen fit to introduce ‘exceptional’ taxes or contributions on these profits, curiously described by the French president as ‘undue.’ At the EU level, on October 6, 2022, the European Council adopted Regulation (EU) 2022/1854 on an emergency intervention to address high energy prices, which introduces, among other rules, a Solidarity Levy for the fossil fuel sector on the profits of companies active in the crude oil, natural gas, coal and refining sectors.

This contribution, set at 33 percent, will be calculated on the basis of taxable profits as determined by the domestic legislation of each Member State, made in the fiscal year beginning in 2022 and/or 2023 and exceeding by more than 20 percent the average annual taxable profits since 2018. Alternatively, Member States may apply national measures already in force if they are compatible with the objectives of the regulation and generate at least comparable revenues. The stated aim is to provide Member States with the necessary means to support households and businesses and to mitigate the effects of high retail electricity prices.

It is certainly not the first time that a war has triggered tax initiatives – it will be remembered that it was on the occasion of the First World War that the income tax, as we know it today, was introduced.

The uncertainties and needs created on such an occasion make the moment propitious for ‘change,’ and therefore for the adoption of often unpopular measures, since solidarity prevails over political or ideological differences.

Tax and accounting laws do not distinguish between ‘large’ and ‘small’ profit: profit exists or it does not exist
Currently, in the complicated context that we know, the States are once again facing the same problem encountered during the health crisis: they must, with their ordinary resources, face extraordinary expenses. Between loans and advances to Ukraine in the framework of direct or macro-financial aid, several billions have been and will be borrowed, while at the same time, the rise in energy prices hit households and in general, the European economy hard – as evidenced by the trade deficit of August 2022 which was €65bn, compared to €5bn in August 2021.

In a context similar to that of the health crisis, it is therefore not surprising that proposals similar to those expressed at that time are appearing nowadays (where this time GAFAMs, large-scale distribution companies and even companies having benefited from the post-pandemic economic recovery, were targeted) and tending to introduce ‘exceptional’ taxes or contributions.

Definition of ‘super-profits’
Let’s first look at what is meant by windfall or ‘super’ profits (or surplus profits or additional value), a term of a political rather than economic nature, first mentioned – and this is already a reason to be cautious – by Karl Marx in Das Capital. It is a question of an enrichment considered to be superior to the normal (thus exceeding the average margin of the sector), due to circumstances external to the company and which, according to Professor Chiroleu-Assouline, makes the company earn money “without it having modified anything in its way of operating or its strategic decisions.”

Taxing a politically defined profit is in reality legally and economically complicated. The general idea is therefore that these companies, which would have “earned too much” should, in the words of the French Minister of the Economy, “return a part of their profits” to the citizens. However, today as in the past, the idea of an exceptional tax on super-profits seems questionable, in terms of principles of law and economics. Let us emphasise from the outset that with the concept of super-profit in the sense of excessive or worse, ‘undue,’ is incompatible with the concept of ‘company.’ Tax and accounting laws do not distinguish between ‘large’ and ‘small’ profit: profit exists or it does not exist. Taxing super-profit thus amounts to taxing, furthermore and retrospectively, a profit qualified as ‘super’ in the absence of any legal and previously determined criterion, which raises important legal questions, especially with regard to the risk of arbitrariness when determining the basis on which the tax or contribution will be calculated.

Handful of concerns
In addition, as mentioned above, a contribution on excess profits is likely to raise a number of problems. Firstly, from a legal point of view, we are witnessing a breach of the principle of equality which governs, in all countries, the relationship between taxpayers and the State. For example, today’s super-profits would be taxed, but not yesterday’s. Or, only the super-profits made by companies in the energy industry will be taxed and not those made by any other company active in another field, even if related to the energy sector. On top of the above, the system is disproportionate because if super-profits are taxed, it must be admitted that the States should in turn ‘contribute’ in the event that major losses occur in a specific sector. This is never done, and if, in the past, aid has been granted, it was not commensurate with the real losses.

Firstly, the ‘super’ part of the profit is not necessarily caused by the new economic situation, but may depend, albeit partly but importantly, on other factors. For example, a company may have changed its business strategy, entered into new agreements or, more often, made significant investments. It is therefore not accurate to assume that every extra euro earned comes from the current situation.

Secondly, the first experiences show that this kind of taxes did not bring the expected product, probably because very often the energy companies realise a large part of their turnover abroad.

Companies active in the energy sector have to invest in huge energy transition programmes, given their activities

In addition, it must be taken into consideration that, for the targeted companies, the contribution to be paid will be considered, in fact, as an additional cost, a cost that they will certainly pass on to their customers.

Thirdly, the issue must also be approached in terms of sustainability and ecology. It is now a known fact that companies active in the energy sector have to invest in huge energy transition programmes, given their activities. Depriving them of cash flow and resources will make these projects difficult to implement (unless governments intervene, in which case the money will only go back and forth) and the reduction of their environmental footprint will be delayed.

Moreover, one should not focus only on the ecological and sustainability issues: it is, in general, the investment capacity of companies that will be affected. Of course, the so-called Schmidt theorem (today’s profits are tomorrow’s investments and the jobs of the day after tomorrow) does not always hold true, but it does have the merit of reminding us that profits also serve other purposes than to enrich the shareholders.

Allow the market to balance itself
These are the main criticisms of this system, which, nevertheless, will be adopted by the EU Member States. It should be emphasised that the objections raised are not only based on theoretical principles that one could imagine being sacrificed on the altar of realism, in order to restore a certain economic balance. They are also based on the principles governing the management of economic crises by states, the most important of which is that one should never react ‘on the spot.’ France has done just that by announcing its withdrawal from the Energy Charter Treaty. In economics, it is important to avoid reacting on the basis of very short-term market fluctuations because markets are volatile, unlike the measures announced, which will have definitive effects on companies.

This is all the more the case in this instance, insofar as, at least at the European level, we have not worked on a ‘tax’ on ‘super profits’ but on a ‘contribution’ on ‘windfall profits,’ such as on exceptional and unexpected profits. The European Council is targeting profits made in 2022 ‘and/or’ 2023 but if the conflict continues beyond 2023, there is no doubt that these measures will be extended. In the end, the announced contribution will no longer be exceptional, since at least initially, the circumstances that justify it today will be the same in the future.

In the meantime, it is to be feared that despite the increase in demand, the aforesaid contribution will discourage suppliers since their profit will be significantly reduced, with the consequence of a further increase in prices and the need to obtain even more supplies from suppliers outside the EU, which would lead to the opposite of the expected result.

It would therefore have been wiser not to sacrifice fiscal stability on the altar of the sacrosanct principle of tax fairness and instead create a stable and competitive environment, which would have allowed companies to get by on their own and let the market rebalance by itself, knowing that, as in the case of the aids granted during the health crisis, the new aids will not be sufficient to restore, by themselves, the desired balance.

Taxation is actually not the adequate answer to any problem.

Beyond capital: Empowering 1,000 young entrepreneurs

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Since 2007 Aiducation International has been active in Kenya and the wider continent as an international for-impact organisation focusing on empowering underprivileged young and rising talent by providing merit- and purpose-based high school scholarships. In addition to this it provides access to coaching and mentoring, focusing on employability and entrepreneurship, and fostering corporate careers and start-ups. Altogether it has built a community of purpose-driven leaders to generate sustainable impact, directly contributing to seven of the 17 UN sustainable development goals (SDGs).

Our slogan ‘Building People. Building Nations’ emphasises that education is not limited to basic schooling but also empowerment of future leaders and entrepreneurs. The Start-Up Fund programme was built with this in mind so that entrepreneurs can advance their businesses while receiving continuous business education and professional mentorship.

Impact-driven partnership
To secure the success of our pilot programmes we are grateful to have teamed up with Swiss Re. Scoping the theme together helped to increase employee engagement towards social impact projects.

Even before the pilot, Swiss Re was already involved – COO James Shepherd generously hosted the 2017 start-up academy in Nairobi and continued to participate as a jury member in assessing individual applications. Of the pilot, Shepherd said “this truly is a programme in which all participants gain. As a sponsor, Swiss Re has gained so much from taking many of our mentors and supporters of the programme back to the foundations of business development, when you have to start without the resources of a big international company.”

The Start-Up Fund acts as the pre-seed capital injection into the entrepreneurs’ small-scale start-ups. Concluded in 2021, the lessons learned at this stage were brought into the next level in June 2022. The focus was narrowed to building a business model and scaling the investment for further customer and social value creation. The intention was to hire a core team, focus on product-to-market fit, and achieve market traction. Our approach was to perfect the qualification as well as to ensure the longevity of the business.

It is crucial to convey that the programme is not only about monetary value but also about mentoring and becoming part of our alumni, by providing mentorship from the application to jury pitching day. The Start-Up Fund maintains the business mentorship ensuring that their development is driving growth, as we deeply believe that there is a much higher chance of succeeding in a new environment if mentored continuously. This mentorship is two-fold: local mentors will provide their expertise on their day-to-day businesses, while global mentors provide a helicopter view, giving strategic consultancy to the candidates along with leadership skill development.

Another goal for the fund was to bring transparency to our own reporting by developing an impact reporting draft. We believe that it is important to quantify our value to society not only by fund access given but also the economic and environmental impact we create within society.

A driving purpose
We have chosen to focus on five main drivers of the SDGs and we expect that those chosen will further enable us to assess a start-up’s impact on the economy, environment, and society in the following years of being an active business.

The five winners identified from our pilot competition have had to qualify under a theme such as healthcare and environment with an aim to solve key issues in their communities, from water purification to waste segregation. Beatrice Kihara shared her perspective as a winner: “During the pandemic I was motivated to start my ex-UK bicycle business since everyone was locked in and looking for an outdoor activity. Cycling was the solution – I am passionate about the environment and see it as the future in reducing carbon emissions.

This truly is a programme in which all participants gain. As a sponsor, Swiss Re has gained so much

But it is a challenge to manage my full-time job and source the bikes, plus needing a huge investment. The Start-Up Fund has just made this possible. I applaud Aiducation and Swiss Re for assigning us global mentors from the first step as that has personally been of so much help. So far, the biggest reward is that I’m able to provide employment to two people who would be jobless otherwise. With the fund we are looking at scaling up and creating more employment.”

Ultimately, our goal for the Start-Up Fund is to create not only employment but also mentors for the upcoming generations. This guarantees economic growth coupled with sustainable business practices for their countries, closing the loop and contributing to a circular economy.

Portugal offers exciting opportunities for investors

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The Portugal Golden Visa programme was launched in 2012 as a residency by investment programme to regain economic strength after the financial crisis in 2008 and to encourage direct foreign investors to the country. This programme was a well-made decision that convinced thousands of HNWIs to choose Portugal as a safe destination for their investments while guaranteeing a backup plan for themselves and their loved ones.

The Golden Visa programme provides visa-free access to all 26 Schengen countries and it is the only programme that grants investors and their family members access to European Union Citizenship after five years. With no relocation required and with an investment starting at €280,000, applicants can enjoy easy travel, free education, access to high-quality healthcare and better work opportunities. The benefits of this programme have led to high demand and as a direct consequence there has been steady growth in Portugal’s real estate market.

The instability that we are witnessing all around the world due to recent events such as COVID-19 and the conflict between Ukraine and Russia has prompted many investors to consider the Portugal Golden Visa programme so that they can guarantee their families options for the future. Despite the travel restrictions due to the pandemic, the demand for the Golden Visa programme has only increased, which in turn has endorsed the importance and benefits of this residency by investment (RBI) programme. According to the Foreign Immigration Service (SEF) in Portugal, the country has been receiving more applications from investors than ever especially from countries such as India, US, China, Middle East and UK.

An unmissable opportunity
The real estate market of Portugal has been booming for the past decade. Demand is growing and is now much higher than unit supply. Despite a high appreciation of eight percent a year, Portugal still offers more affordable prices when compared to the rest of the western European countries. Portugal has proved its significant potential in the real estate market and investors are purchasing units due to the high returns they are able to get, both in capital appreciation as well as in rental income.

Portugal is well known for its stunning beaches and endless recreational options, which can also be found on the famous Madeira Island. Madeira is well served by the airports of the main capital cities and is therefore easily accessible. Appreciation of its real estate market is approaching 10 percent and investors from all over the world cannot ignore its potential.

Investors who would like to qualify for Portugal’s Golden Visa programme can either choose to invest in real estate or in a fund investment. Fund investment starts at €500,000 and these funds must have at least 60 percent of shares in Portugal-based companies.

Real estate options
Since the beginning of 2022, the government of Portugal has implemented changes for those investing in the real estate option. These changes are focused on removing the pressure from main areas of Portugal and therefore clients interested in residential units can invest only in the interior of Portugal. Capital district cities of interior regions like Beja and Guarda are enjoying huge demand due to the returns investors are getting. If investors are looking for options for investment in the main areas of coastline such as Lisbon and Porto, they can invest in commercial units with a minimum investment of €350,000.

Clients interested in higher investment can choose from brand new commercial units in the category of €500,000. We highly recommend that clients opt for units that offer title deed and not a share, since the safety of this kind of investment is at a higher stake of risk. Finding a property that is eligible for the Golden Visa programme is not an easy task. Clients should make sure that they are working only with experienced companies focused mainly on Portuguese RBI programmes since those tend to have a comprehensive knowledge of the market as well as an established professional network.

Apart from successful real estate market performance, Portugal offers to investors an attractive tax programme – non habitual resident (NHR), which grants tax optimisation. The NHR programme was introduced in 2009 and, just like the Golden Visa programme, the goal was to regain Portugal’s economic strength after the global financial crisis.

All the above facts are just some of the reasons why Portugal is a safe choice for HNWIs. Clients of the Golden Visa programme can keep on going with their lives without any obligation to relocate. And yet, future generations still have the option to study in the top universities and take advantage of better job opportunities. Portugal has a stable political situation, a high-quality health care system and is ranked as one of the safest countries in the world.

Marketing in an ever-changing fintech environment

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Driven by regulatory developments, rapidly advancing technology, ESG concerns and the continued consolidation of our sector, the financial services industry has undergone a rapid transformation in the last decade. While online trading and investing platforms continue to grow in popularity, marketeers working in the financial services industry are faced with a number of regulatory challenges when it comes to promoting leveraged investment products that carry an inherent level of risk.

Initially, it is important to remember that financial services marketing differs immensely from other product categories; as marketeers in our field are tasked with producing content that not only complies with a range of regulations covering product marketing and consumer rights, but that is also transparent, educational and insightful.

While working on an eye-catching multi-channel campaign in a highly regulated industry can feel restrictive to those who view compliance as ‘a necessary evil,’ successful fintech marketeers understand that compliance is not a hurdle to be overcome, but rather a vital component of financial marketing. Compliance regulations help maintain the integrity of the financial institutions we work for, provide transparency for investors, and ensure the viability of the broader sector.

The importance of ethical branding
The sheer number of participants, both established and new entrants, in the online retail forex arena renders it one of the most fiercely competitive markets to be in. Since most financial service providers put across a similar offering and aim at the same pool of potential clients, being able to stand out against this backdrop requires effective brand differentiation. That being said, brand awareness cannot be solely achieved by individual promotions or advertising efforts. Instead, experienced fintech marketeers understand that achieving ‘top of mind’ status for their brokerages requires a well-thought-out, omnichannel marketing strategy that includes inbound and outbound communications, targeted media-buying opportunities, paid and organic campaigns, product development, PR activities, and the list goes on.

Due to the often complex nature of online investment products, one of the main objectives of your financial marketing plan should be to get clients familiarised with the benefits and risks involved in online trading and how the products and conditions afforded by the broker can give clients a competitive advantage.

Strong, digestible branding paired with free access to financial literacy and education goes a long way toward easing that barrier of entry for new clients. This is an approach we have long championed at Orbex; we don’t just seek to promote a competitive, transparent, and fair trading environment through our marketing efforts, we also educate investors and potential clients by giving them access to essential, high-quality resources, and curated research. This has been a core part of our strategy.

A new generation of investors
While the rapid growth of the financial services sector has resulted in the renaissance of the retail investor, financial marketeers are now inadvertently faced with the task of catering to a younger, more diverse demographic. In fact, the average trader looks very different today compared to 15 years ago. Having led the retail investment revolution, Millennials and Gen Z are now a fast-growing force that embraces new investing services and tools.

These young investors also have access to far more information than any previous generation of investors, constituting a considerably more technologically advanced and demanding audience. Young investors are more likely to engage in their own research and pick their broker carefully, paying attention to commission rates, bid/ask spreads, and maintenance fees, all of which need to be accompanied by strong regulation that can safeguard their invested capital. In short, they expect a greater level of transparency, accountability, security, and performance, especially when it comes to their investments.

While marketing to these younger audiences can be challenging, investing in a positive and reputable brand image, through responsible and transparent marketing practices enables brokers to gain a major competitive advantage and ensures business growth by building brand credibility and maintaining strong client relationships.

Regulatory dexterity
As we’ve already established, the promotion of complex financial products through online distribution and advertising channels is more closely scrutinised by regulators and rightfully so. Compliance is an essential component of any financial team’s underlying operations, and this is especially true for marketing departments. Over the past few years and as regulators raise their standards and adjust regulations to ensure customer protection, the importance of maintaining regulatory dexterity is now more prominent than ever.

As regulations evolve, it is often up to the marketing and PR department to communicate how these changes will affect clients’ trading. A solid marketing strategy plan must therefore be dynamic, anticipating changes, and maintaining clear communication guidelines that can be quickly adapted as the regulatory environment evolves.

Reaching new markets
As industries around the world rise up to the challenge of globalisation, it has become crucial for financial services companies to internationalise their services to keep up with the changing landscape. The need for localisation has become even more pronounced for online brokers as the shift to digital services opened the financial markets to a more diverse set of traders from all around the globe. In a nutshell, localisation helps online financial services providers to grow at scale, reach new markets, and gain ground in previously uncharted territories.

With 75 percent of the world preferring content in languages that are not English, localisation has many tangible gains for financial marketing departments. That being said, localising financial information is a complex process – requiring the highest levels of quality, expertise, and security, while also ensuring compliance with local and global legal standards.

In a client-centric digital world, users have grown accustomed to digital experiences that anticipate their actions and are readily available across platforms and channels. Personalised, prediction-based, hyper-relevant client journeys are now becoming the norm, and while gathering client data is the first important step towards successful personalisation strategies, there are a number of important regulatory issues that marketeers need to be able to navigate.

One of these regulatory concerns became more prevalent in 2018 with the introduction of GDPR (General Data Protection Regulation) privacy rules that sought to give users more control over their data. While consumers have come to expect personalised messaging, they are simultaneously more concerned about their personal privacy. This means that financial marketeers now need to incorporate an ultra-transparent GDPR approach to collecting the information required to deliver these personalised experiences.

Working closely with their compliance departments, marketeers should draft their campaigns and communications in a manner that clearly discloses to the client what data is being collected and how it will be used with their consent. Consent is the key word here as transparent opt-in data collection methods that allow website visitors to authenticate the collection of their data, create a culture of trust between brands and consumers. In turn, businesses establishing trust are more likely to gain the information they seek from current and prospective clients, leading to higher brand value.

Responsible, data-driven growth
In order to make an impact in 2022 and beyond, brands are required to make responsible data-driven decisions, leverage first party insights, and deliver customised experiences. The key to successful personalisation and automation of the client journey is data. Ultimately, more data allows for more data-driven decisions. Recognising an individual’s needs at every touch point and delivering a custom experience to best serve those needs is a top-tier marketing strategy that can unlock more potential lifetime value than any hard-sell advertising.

With one of the most powerful applications of data-driven marketing being targeted advertising, collecting useful and high-quality data in a transparent and compliant manner ultimately enables financial marketeers to deliver propositions tailored to the individual, resulting in improved conversion rates. On their part, consumers tend to engage more often and more meaningfully with personalised marketing communications, making the contextualisation of interactions imperative to remaining competitive in today’s marketing landscape.

‘Data done right’ entails being able to effectively identify client profiles, communication channels and what messages to deliver, eliminating a lot of the guesswork from media planning and buying. What is more, targeted advertising can help generate positive feelings towards a brand, as consumers have grown to appreciate well-timed, non-intrusive content, and advertising that aligns with their personal interests and needs.

In short, ethically and strategically using data to deliver relevant client experiences is one of the key defining digital marketing skills that can determine which financial services brands are able to achieve long-term sustainable growth in the future. In an industry that is becoming increasingly competitive and heavily regulated, digital marketeers must be as inventive as the products and services they seek to promote if they wish to stay ahead of the curve. From consumer education and building trust to creating an advertising and communications plan permeated by transparency and compliance, the road to digital marketing success can be as exhilarating as it is challenging. By remaining vigilant of the changes within a rapidly evolving regulatory landscape and being able to quickly adapt to the latest trends in digital marketing, financial marketeers can build a powerful brand image that inspires long-term loyalty and trust.

About the author

With over a decade of experience in the financial services and fintech sector, Drosoula Hadjisavva has held critical leadership roles across several leading fintech/FX and Telecom firms.

Drosoula Hadjisavva, CMO at Orbex

As a certified Chartered Marketer with a Bachelor of Science degree in Computer Science and an MBA, Drosoula has a rounded experience in heading global marketing organizations, including high-performance digital marketing, corporate, brand, PR/media, as well as product marketing.

Drosoula currently serves as Chief Marketing Officer at Orbex, a multi-regulated financial services firm based in Cyprus since 2011, having previously held the position of Chief Marketing Officer at BDSwiss.

MENA Investment & Development Awards 2022

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Best Retail Bank
Arab National Bank (ANB)

Best Commercial Bank
Qatar National Bank (QNB)

Best Private Bank
Emirates NBD

Best Participative Bank in Morocco
Bank Al Yousr

Best Participative Bank in Customer Service Quality in Morocco
Bank Al Yousr

Best Insurance Company
Gulf Insurance Group (GIG)

Best Alternative Investment Provider
Investcorp

Excellence in Tourism Innovation & Development
Turkey Ministry Of Culture & Tourism (KTB)

Best Convention & Exhibition Center
Doha Exhibition & Convention Center (DECC)

Best Investment Banking and Financial Advisory Company
QINVEST

Best Takaful Insurance
Qatar Islamic Insurance Company (QIIC)

Best Asset Management Company
Riyad Capital

Best Fund Management Company
Wafra International Investment Company

Best Real Estate Investment Company
wasl Asset Management Group

Best ESG Strategy
Rawabi Holding

Best Customer Service Quality in Asset Management
Riyad Capital

CSR Excellence and Dedication to Community in Kuwait
Wafra International Investment Company

CSR Excellence and Dedication to Community in Saudi Arabia
Rawabi Holding

Innovation Awards 2022

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World Finance Innovation Awards 2022

Most Innovative Companies, by industry

3D Printing
Trimaker

Agritech
Agricorp International

Animal Nutrition
Nutreco

B2B Payments
PrimeRevenue

Carbon Offset
NCX

Carbon Removal
Puro. Earth

Coffee Processing
NuZee

Digital Exchange
MetaVerse Green Exchange

Education
Aiducation International

Energy & Chemical
Saudi Aramco

EV Charging
Connected Kerb

Financial Technology
Trovata

Food Technology
Perfect Day

HR
MoBerries

Insurtech
Dacadoo

Investment
KBC Asset Management

IoT – RTLS
Syook

IoT – Satellite Communication
Astrocast

Major Airline
JetBlue

Mobility
RideTandem

Orthopedic Prosthetics
Instalimb

Packaging
RDM Group

Personal Products
Ethosa

Quantum Computing
Oxford Quantum Circuits

Real Estate
Zoned Properties

SaaS
Shoplazza

Software
Robocorp

Textiles
EPEA Switzerland

Utilities
GE

Vegan Pet Food
OMNI

Insurance Awards 2022

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Best General Insurance Companies

Argentina
MetLife

Australia
Insurance Australia Group

Austria
Helvetia Austria

Bahrain
GIG Bahrain

Bangladesh
Nitol Insurance

Belgium
Ethias Insurance

Brazil
Bradesco Saude

Bulgaria
Bulstrad Vienna Insurance

Canada
Intact Group

Caribbean
RBC

Chile
ACE Seguros de Vida

China
Ping An P&C Insurance

Colombia
Mapfre Seguros Generales de Colombia

Costa Rica
ASSA Compañía de Seguros

Cyprus
General Insurance of Cyprus

Czech Republic
Komercní banka

Denmark
Tryg

Egypt
Allianz Egypt

Finland
Fennia Mutual Insurance

France
Groupama

Germany
The Talanx Group

Greece
EuroLife FFH

Honduras
Ficohsa Seguros

Hong Kong
China Taiping Insurance

Hungary
Groupama Biztosító

India
ICICI Lombard

Indonesia
Sinarmas

Italy
UnipolSai

Japan
Mitsui Sumitomo Insurance

Jordan
Middle East Insurance Company

Kazakhstan
Nomad Insurance

Kenya
CIC Insurance Group

Kuwait
Warba Insurance

Lebanon
AXA Middle East

Luxembourg
AXA Luxembourg

Malaysia
Berjaya Sompo Insurance

Malta
GasanMamo Insurance

Mexico
GNP

Netherlands
Aegon the Netherlands

New Zealand
Tower Insurance

Nigeria
Zenith Insurance

Norway
Tryg

Oman
Dhofar Insurance Company

Pakistan
Adamjee Insurance

Peru
Rimac Seguros

Philippines
Standard Insurance

Poland
LINK4 TU

Portugal
Allianz Seguros

Qatar
Qatar General Insurance

Romania
ERGO Group

Saudi Arabia
Al Rajhi Takaful

Serbia
Generali Osiguranje

Singapore
Singlife with Aviva

South Korea
Hanwha General Insurance

Spain
SegurCaixa Adeslas

Sri Lanka
Continental Insurance

Sweden
Tryge

Switzerland
Helvetia

Taiwan
ShinKong Insurance Company

Thailand
Navakij Insurance

Turkey
Zurich Sigorta

United Arab Emirates
Abu Dhabi National Insurance Company

United Kingdom
AXA UK

United States
Mylo

Uzbekistan
Kafil Sug’urta

Vietnam
Bao Viet

 

Best Life Insurance companies

Argentina
Prudential Seguros

Australia
AIA Australia

Austria
Vienna Insurance Group

Bahrain
Al Hilal life

Bangladesh
National Life Insurance Company

Belgium
Ethias Insurance

Brazil
Sulamerica Cia Saude

Bulgaria
UNIQA Life Insurance

Canada
Canada Life

Caribbean
Sagicor

Chile
SURA

China
New China Life

Colombia
Seguros Bolívar

Costa Rica
Pan American Life Insurance

Cyprus
Eurolife

Czech Republic
Allianz pojišt’ovna

Denmark
Nordea Life & Pensions

Egypt
Allianz Egypt

Finland
Nordea

France
CNP Assurances

Germany
The Talanx Group

Greece
NN Hellas

Honduras
Pan-American Life

Hong Kong
Manulife

Hungary
Groupama Biztosító

India
Max Life Insurance

Indonesia
FWD Life Indonesia

Italy
Poste Vita

Japan
Nippon Life Insurance Company

Jordan
Arab Orient Insurance Company

Kazakhstan
Kazkommerts-Life

Kenya
Britam

Kuwait
Warba Insurance

Lebanon
Bancassurance

Luxembourg
Swiss Life

Malaysia
Hong Leong Assurance Berhad

Malta
HSBC Life Assurance Malta

Mexico
Seguros Monterrey New York Life

Netherlands
Aegon the Netherlands

New Zealand
Asteron Life

Nigeria
FBNInsurance

Norway
Nordea Liv

Oman
Dhofar Insurance Company

Pakistan
EFU Life

Peru
Rimac Seguros

Philippines
BPI AIA

Poland
Santander Allianz

Portugal
Grupo Ageas Portugal

Qatar
Q Life and Medical Insurance

Romania
Allianz-Tiria

Saudi Arabia
Al Rajhi Takaful Medgulf

Serbia
Generali Osiguranj

Singapore
Singlife with Aviva

South Korea
BNP Paribas Cardif

Spain
Zurich

Sri Lanka
Ceylinco Life Insurance

Sweden
Folks

Switzerland
Swiss Life

Taiwan
Fubon Life Insurance

Thailand
Thai Life Insurance

Turkey
Anadolu Hayat Emeklilik

United Arab Emirates
Oman Insurance

United Kingdom
Legal & General

United States
Lincoln Financial Group

Uzbekistan
New Life Insurance

Vietnam
Mirae Asset Prevoir

Wealth Management Awards 2022

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World Finance Wealth Management Awards 2022

Best Wealth Management Providers

Argentina
Andes Wealth Management

Armenia
Unibank Prive

Austria
Schoellerbank

Bahamas
RBC Dominion Securities

Bahrain
Ahli United Bank

Belgium
BNP Paribas Fortis

Bermuda
Butterfield Bank

Brazil
BTG Pactual

Bulgaria
Compass Invest

Canada
RBC Wealth Management

Chile
BTG Pactual

China
Credit Ease Wealth Management

Colombia
BTG Pactual

Denmark
Maj Invest

Estonia
Raison Asset Management

Finland
OP Private

France
BNP Paribas Banque Privée

Georgia
TBC Wealth Management

Germany
Deutsche Bank Wealth Management

Greece
Hellenic Asset Management

Hong Kong
Indosuez Wealth Management

Hungary
Hold Asset Management

India
HDFC Bank Wealth

Indonesia
Bank of Singapore

Italy
BNL BNP Paribas

Japan
Sumitomo Mitsui Trust Asset Management

Kuwait
NBK Capital

Liechtenstein (Best Multi-Client Family Office)
Kaiser Partner

Lithuania
INVL

Luxembourg
Banque de Luxembourg

Malaysia
Affin Hwang Capital

Mauritius
Bank One

Netherlands
ABN AMRO MeesPierson

Nigeria
CardinStone

Norway
Northern Trust Norway

Oman
Bank Muscat

Philippines
BPI Asset Management & Trust Corp

Poland
CITI Handlowy

Portugal
PT Golden Visa

Qatar
Commercial Bank of Qatar

Saudi Arabia
SABB

Singapore
OCBC Wealth Management

Spain
Lombard Odier

Sweden
Carnegie

Switzerland
Piguet Galland & Cie

Taiwan
Cathay United Bank

Thailand
Phatra Securities

United Arab Emirates
Intellistocks Investment Advisory

United Kingdom
Schroders

United States
Merrill Lynch Wealth Management

Vietnam
Genesis Fund Management

Investment Management Awards 2022

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Belgium
KBC Asset Management

Brazil
BTG Pactual

Cyprus
Byron Capital Partners

Estonia
Raison Asset Management

Greece
Piraeus Asset Management

Hong Kong
JP Morgan

Kuwait
NBK Capital

Mexico
BBCA Asset Management

Philippines
BDO Unibank

Qatar
Epicure Investment Management

Saudi Arabia
SNB Capital

Singapore
UOB Asset Management

Thailand
UOB Asset Management

Turkey
Ak Asset Management

United Arab Emirates
Emirates NDB Asset Management

Vietnam
Genesis Fund Management

Digital Banking Awards 2022

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World Finance Digital Banking Awards 2022

Best Mobile Banking Apps

Brunei
b.Digital Personal

Bulgaria
m-Postbank

Colombia
Bancolombia Personas

Dominican Republic
Banco Popular Dominicano

Greece
NBG Mobile Banking

Indonesia
OCTO Mobile

Kuwait
NBK Mobile Banking

Malaysia
Maybank2u MY

Mexico
Citibanamex Movil

Nigeria
SC Mobile Banking

Qatar
QIB Mobile

Saudi Arabia
Al Rajhi Bank

Singapore
SC Mobile Banking

Sri Lanka
Peoples Wave

Turkey
Garanti BBVA Mobile

United Arab Emirates
Mashreq NEO

United Kingdom
Barclays Mobile Banking

Zambia
Atlas Mara Mobile Banking

 

Best Consumer Digital Bank

Brunei
Baiduri Bank

Bulgaria
Postbank

Colombia
Bancolombia

Dominican Republic
Banco Popular Dominicano

Greece
National Bank of Greece

Indonesia
PT Bank CIMB Niaga

Kuwait
NBK

Malaysia
Maybank

Mexico
Citibanamex

Nigeria
Standard Chartered

Qatar
QIB

Saudi Arabia
Al Rajhi Bank

Singapore
Standard Chartered

Sri Lanka
People’s Bank

Turkey
Garanti BBVA

United Arab Emirates
Mashreq Bank

United Kingdom
Barclays

Zambia
Atlas Mara Bank

 

Best Digital SME Bank

Greece
National Bank of Greece

Three digital payment methods to adopt today

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Despite growing awareness around the environmental perils of plastic, the payments sector still relies too heavily on the material. Research from Finder has found that six billion new plastic cards are produced and issued each year, with the majority made from PVC. This form of plastic is harmful during its production, use and disposal, as PVC’s chlorine and dioxin components release huge amounts of toxic chemicals into the environment.

On top of this, 5.7 million tonnes of plastic cards end up in landfills every year. Over time, these break down into microplastics that can be inadvertently consumed by humans and wildlife, causing significant health issues. Plastic cards can also end up in the ocean, damaging marine ecosystems and food chains. Because of these problems, moving towards digital payments is imperative. Referring to any kind of electronic payment, these remove the need for physical cards entirely. Here are three digital payment methods for consumers and businesses to begin embracing today.

 

1) Digital wallets
A digital wallet works as a virtual card that sits in your smartphone, enabling you to make purchases out and about by tapping it just as you would for a contactless card payment. Almost every mobile comes with its own wallet that’s ready to be used – for example, the iPhone has Apple Pay, Samsung has Samsung Pay, and other Androids have Google Pay. The great thing about mobile wallets from a business perspective is that they are easy to accept, as most in-person POS systems that allow contactless payments will also accept mobile wallet payments.

The ease of use for consumers and simplicity to set up for businesses has led to a huge rise in the use of digital wallets. According to IT service management company Marqeta, 75 percent of consumers are now embracing digital wallets to pay for their purchases, with 60 percent of people saying that they’d now feel comfortable leaving the house with just their phone and not their wallet.

2) Peer-to-peer payments
Digital peer-to-peer (P2P) payment solutions enable users to search for one another and perform online transactions, with high-profile examples including PayPal and Venmo. These link the payer and payee’s bank accounts and enable you to make a payment without requiring the other person’s bank details, helping to keep them private. All you need is their email address or phone number.

This is not always the most viable option for larger companies, but for those running a market stall or a small business service, for instance, P2P payments is a useful way of accepting payments to start off with.

Research shows that there are just under 150 million P2P mobile payment users in the US, which makes up almost 62 percent of smartphone owners. By 2026, this number is expected to grow to over 180 million. In addition, the value of P2P payments is around $550bn, a figure that is expected to rise by 10.5 percent to $612bn in 2023.

3) Social media payments
Many social media platforms now allow businesses to accept payments from goods and services from within their apps, including the likes of Facebook, Instagram and Pinterest. For example, Facebook Pay is a payment method open to all Facebook users that’s free for both businesses and consumers. All users need to do is add their bank details and they’re able to send and receive money from the click of a button. Such payments are inexpensive with minimal processing fees.

Over 50 percent of consumers have purchased something on a social media platform, with Facebook and Instagram by far the most popular. And, with 88 percent of 18 to 29-year-olds and 78 percent of 30 to 49-year-olds using social media every day, it’s clear that offering social media payments can be incredibly useful for businesses.

Brokers promoting Forex PAMM and copy trading

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Just as the stock market offers its clients a clear and transparent operation reaching back centuries, the new forex market is similarly unique and full of exciting possibilities. Although it is new, it has still managed to emerge as the largest and the most liquid financial market across the globe. Especially with the advent of internet marketing, real-time forex trading has become a very common concept among brokers and people interested in investing money. Millions of investors have shifted stocks from traditional markets to forex. But how the brokers have convinced them to do so is still a pertinent query.

Almost every broker in recent times aims to provide their customers with a variety of investment options. Customers who are unwilling to trade on their own are the key target market for such brokers. These customers need customised services to address their monetary needs. Brokers have found the best customisable trading robots in Forex which allow these customers to fine tune how trades are executed on their accounts while allowing them to make profit with a hassle-free, hands-off approach.

Another method employed is the utilisation of do-call managed accounts which follow a specific strategy while calculating the risks associated. Below we’ll discuss the distinctions between PAMM, and Copy trading systems, and how brokers make them worth a try for investors across the globe. Although there has been a lot of ambiguity associated with the context they are used in, brokers use them widely as the most suitable and futuristic money management options.

So how is Forex PAMM and Copy trading employed for managed investment?

Forex PAMM
PAMM (Percentage Allocation Money Management) is the most suitable and widely accredited method used to carry out the automation and management of your trades and money. The major benefit of PAMM is the distribution of transaction volumes on the basis of the percentage across everyone participating on the platform. The allocations of the transactions are mostly decided and calculated on the basis of the investor’s balances or equity.

It is worth mentioning that the entire balance of the investor is replicated on the account of the Broker or the Money manager. This also includes combined balances of all interconnected accounts. This infers that the master doesn’t possess any money of his own; as an alternative, the master possesses a virtual balance which is equal to the balances of investment accounts.

As soon as any transaction is carried out from the master account, it is quickly and proportionally divided in all the investor accounts at similar pricing to the master account.

Certain PAMMs are nation equipped with features of displaying the individual transactions on investor trading accounts. However, they take care of the own back office where the trade-based P&L is apportioned. This technique is not particularly appreciated by consumers since they prefer to see all of their transactions being carried out on their trading accounts. A few PAMMs also offer leaderboards for master accounts, which grant the investors a chance to evaluate their performance before promising to avail their services.

One of the most important details to know as an investor is that you cannot trade independently on investor accounts linked to PAMM. The major logic behind this restriction is that it would endanger the percentage allocation on all accounts. Normally, you can delink the investor account from the Master any time you want. However, the transparency of this method is what makes it a bit questionable among investors.

Copy trading
Copy trading, sometimes referred to as Social trading, is the most transparent and flawless method of money management. There are specified platforms which grant traders a chance to incorporate a copy trading solution with the brokerage company of the investor. Alongside that, they offer their personal database of established signal providers, with an assortment of other information for each of them. It is a major advantage in comparison to Forex PAMM since the broker does not need to source steadfast money managers on their own. Furthermore, it’s important to highlight that the MT4 and MT5 servers offer their own copy trading service as well. It comes with a substantial number of providers who are reachable through the MQL5 website.

Clients mostly track the signal providers who have a specific presence and following on the social trading platforms. These clients can subscribe to multiple suppliers who work on a single trading account – which is unfeasible for PAMM. Concurrently, clients are permitted to trade on all of these accounts or liquidate positions as provided by the signal providers. In the case of the investor account, the results are not deeply linked with signal providers as the investor manages their own money.

Providers are specifically answerable for the results generated on their own accounts, and granted signals may be utilised and manipulated in many ways by an individual investor and different investors. A few platforms even grant the capital of signal providers’ transactions. Most platforms allow the client to directly get in touch with providers by asking queries based on their operations, or they can even start an online discussion with them. Most online platforms take membership and subscription fees to give customers access to signal provider’s services.

It is quite apparent that there are multiple alternatives which your brokerage can use in order to offer managed account services. The method which is most suitable for your money management is solely dependent on the trading platform that you are using and your personal preferences from the options available. Due to the intensity of the competition in the market, brokers will have a fair opportunity to get the required solution for you at an affordable price. It will undeniably aid your organisation in getting a competitive edge.

Big business must reinvent capitalism to address environmental concerns

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For the past decade, Peter Bakker has led the World Business Council for Sustainable Development (WBCSD) based in Geneva, Switzerland; the premier global, CEO-led community of over 200 of the world’s leading sustainable businesses. WBCSD is a membership organisation that considers business a critically important driver in leading the transformation needed to ensure over nine billion people are living well, within planetary boundaries by 2050 – a net-zero, nature-positive and equitable future. But business alone will not be able to ensure the scale of transformation needed. WBCSD’s list of members includes many of the world’s most famous brands and household names, including some who have been accused in the past of doing harm to the environment. Bakker spoke to World Finance about creating change from within.

Is it for businesses to lead the way on climate change and self-regulate, or is it for governments to take a harsh line and force change via policies? How realistic is either proposition and how does WBCSD see the way forward?
A combination of policy and regulation as well as leadership from business to keep driving forward change is needed. Our member companies come from all business sectors and all major economies, representing a combined revenue of more than $8.5trn and 19 million employees. Together their actions can be truly transformational and we need to start with those value chains where it is most needed and that have the highest impact.

Let’s take energy for example. Energy powers the economy and enables people to live the lives they aspire to. A sustainable energy system will need to provide reliable and affordable net-zero carbon energy for all. The speed at which the energy system will be decarbonised will critically influence our ability to limit the rise in global temperatures to 1.5 degrees Celsius.

Decarbonisation and transition will only happen if forward-thinking companies within the energy space work together to design a net-zero carbon, nature positive and equitable energy transformation as well as scale innovative business models for low-carbon energy solutions. We need to bring new innovative thinking together with the scale and reach needed to drive and implement change.

You talk about ‘reinventing capitalism’ to reward true value creation, not value extraction – what exactly does that look like?
The starting point is rethinking capitalism, and not in an ideological way. In the world today there are three severe crises in sustainability: climate instability, loss of nature, and mounting inequality. In our current model of capitalism, we only measure financial performance; we don’t integrate environmental or social performance. That means that when we do damage, there is no penalty that anyone pays. We need to start integrating the environmental and social impacts that governments and businesses have.

Then we get to a value creation model – if you reduce the environmental impact on people and improve their lives, you create social value and by measuring that as well as ESG disclosures, capital markets will begin to value that performance. Twelve months ago, we published Vision 2050 – Time to transform. The cornerstone of that vision was reinventing capitalism. It has been signed off by 44 companies who helped us create it. WBCSD has transformed its strategy to align with this vision and it was taken to vote in October 2021.

Given the growing propensity towards ‘greenwashing,’ there are those who may feel that they have lost trust in businesses’ self-selected green propositions. Why is it important that businesses in the very sectors known for high-impact carbon emissions (oil and gas, banking, ‘big food’ etc) are on board and taking action?
We are fortunate in that our membership is just that – a membership and entirely voluntary – but there are a number of criteria that members have to adhere to in deciding to be a member. Our philosophy is that it is better for big, impactful companies to be in the tent rather than outside the tent. There are plenty of organisations and individuals who don’t believe that and who judge, but our role is to bring companies into the tent and work with them on how to decarbonise, become nature positive, and be more equitable.

In our current model of capitalism, we only measure financial performance; we don’t integrate environmental or social performance

We still see that business has a trust deficit in the eyes of many – oil and gas companies are in that camp, for example. Only by taking real action and being transparent about what is your target and whether you are making progress can you rebuild the trust; it is a journey. You need to set a target aligned with science, and then through ESG disclosure and reporting, you need to be very transparent on progress.

There is a lot of pressure on companies now because of competition, activism, and consumers asking for a different solution. McDonalds joined us eight or nine months ago, which was after Vision 2050, and after our new membership criteria. They walked in with their eyes open and we wouldn’t have let them join had they not understood the membership criteria. Companies come to us as they get real support on how to decarbonise.

Do you really manage to get 200 CEOs of some of the largest businesses in the world in the same room at the same time?
We have a council meeting once a year and invite CEOs as council members. We have never had all of them at the same time, but there are always more than 100 over one or two days. We host roundtables bringing people together over similar themes and shared knowledge. But more important than that is for the teams of the CEOs and the CFOs to really make progress. It is not a talk shop, it is a bringing together to figure out how to turn decisions into action, identify projects to move forward, then progress reporting for CEOs and mobilise teams to do more.

One of the major challenges you tackle is mounting inequality. How can business leaders approach this meaningfully and avoid failure of sustainability efforts? Why are the two interlinked?
As business leaders we must ask ourselves – are we truly committed to a more sustainable world? And if the answer is yes, we must accept that it cannot be a pick and mix approach to sustainability. Reducing our emissions will not be enough; committing to a circular economy will not be enough. We must take urgent action to create a more equitable world where everyone has access to opportunity, justice, and income regardless of their race, gender, or background. It is only by achieving this that the world has the possibility to transform. Inequality has become a systemic risk – a risk that is threatening not only individual companies or communities, but entire economies and societies.

Wide disparities in income, wealth, and overall wellbeing, underpinned by deep, structural differences in the opportunities people have to achieve those outcomes, are fuelling widespread dissatisfaction and disillusionment. This, in turn, is contributing to a cascade of consequences with dire implications for our societies and for businesses around the world: eroding social cohesion, diminishing trust in key institutions, fuelling civil and political conflict, and undermining our collective capacity to tackle complex challenges. It will not be possible to arrest climate change, for example, without addressing inequality. Meanwhile, a number of major trends and developments are making the situation worse. Climate change, technological disruption, and the COVID-19 pandemic, for example, are all hitting the most vulnerable the hardest.

Do you liaise with direct action groups such as Greenpeace and Extinction Rebellion? How would you describe the interplay between the two types of organisations?
Activism, if applied honestly, has a useful role in moving people’s minds. We have had projects engaging with other players like Greenpeace but structurally our organisations have different roles to play. In terms of our membership, I always describe WBCSD as the ‘challenging friend’ of the business – constantly trying to help them do better, faster. We are there to help them, sharing best practices and redefining value terms. We have now got a network of over 50 Chief Financial Officers to work jointly as well. As a bridge between the corporate world and the capital markets, CFOs are uniquely positioned to set the agenda and trajectory of market transformations as they begin to take shape.

Ultimately, the agenda and end goal of our organisation compared to activist ones is no different, but our messages are. Across the world, corporate sustainability performance is top of mind for investors and consumers alike. Global financial reporting standard-setters are quickly paving the way towards alignment of sustainability disclosure frameworks, with new regulatory requirements for ESG and climate disclosure on the horizon. Business is entering a next phase of ESG performance, transparency and accountability.

To realise a world in which over nine billion people can live well, within planetary boundaries, over the next decade we need to unlock change in a way – and at a rate – that has so far eluded us. It is not enough to know what needs to be done. We need to accept that radical shifts in all parts of society will be required, including business. Leading companies need to prepare now.