Bringing EQ-driven leadership into companies.

Interview by Valeria Camia, journalist, web director Corriere dell'Italianità, to Manuela Andaloro Senior Advisor and Board Member, for Corriere degli Italiani

A successful entrepreneur, an ambassador of gender equality, and a mother, Manuela Andaloro tells her story. 

Business woman Manuela Andaloro has been the CEO of SmartBizHub since 2017. Together with her team, she does management consulting, especially in the field of new technologies and sustainability, working with multinationals and government agencies throughout Europe. Manuela travels often and is active in advocating and raising awareness on diversity, gender equality and on the balance between family and work. She was recently nominated for a major award on gender diversity. For many years, she has been advocating “diversity and inclusion” in companies. Could Manuela picture her current reality when, just a twenty-year-old student at IULM University in Milan, she got her first corporate role as an analyst at ACNielsen, working hard to keep up with her studies?

Manuela has been not only a successful entrepreneur in recent years, for over 17 years she has had important roles in leading financial companies in Europe, since 2012, she’s also a mother. A mother of two small children (4 and 6 years old), in Switzerland, a country in which achieving a balance between family and work is particularly complicated. Maternity leave is granted for only 3 months and fathers are excluded, as opposed to a European average of 6 to 12 months (or even 3 years in Germany) of leave, which in many cases can be shared equally between both parents. If wage parity remains a dream, the same goes for career opportunities, respect for diversity and promotion of social inclusion.

“Finding a balance between career and family is one of the hardest challenges that my husband and I – along with hundreds of parents with careers, I have met over the years – are facing in Swiss society, which in most cases still gives women the role of housekeepers and child carers. This concept is deeply rooted in the culture of this country. I still remember this chat I had with a doctor I had consulted because I felt tired after the birth of my first child and my return to work 5 months later. I remember the doctor asking me why I kept on working. It was shocking. And that was just the beginning. I was shocked again when I went back to work, first part time, then full time. Society in many cases expected me to be mainly a mother”, says Manuela, who considers herself lucky, because “there was still a job for me when my maternity leave was over if you consider that one in seven women in Switzerland loses her job when she becomes a mother.” Not to mention the economic situation, as private nurseries and kindergartens, that can provide more flexible times to allow parents to work, are very expensive and so precluded to many.

To be honest, Manuela actually had some thoughts about giving up her career, or taking a break. It was never easy to leave my children with the babysitter or at the nursery until late, to work and travel even on weekends, and being under the critical eye of society. But Manuela did not give up. She was courageous and aware of the need to break up with an obsolete, individualistic and non-empathic mindset, which does not leave enough space for women and is unable to cope with the new global picture of society and its stakeholders.

— Images, left to right: Manuela Andaloro moderating a FinTech international event in January 2019 in Zurich (credits: British Embassy Bern); speaking about adapting our working cultures to reflect a more modern world and diverse society, June 2019, Amsterdam. (Credits: EWPN, Money 2020); on stage speaking about new role models and leadership, October 2018, London (Credits: PayExpo); Balancing private life and work on a weekend. —

The trump card that can reconcile career and family, says Manuela, is a new type of EQ-driven leadership. “The best leaders of today invest their time and energy in understanding the people they work with and their teams. It’s the EIQ, or emotional intelligence quotient, which experts say has become today more important than IQ and is a better index of success for people, companies and society. This is why we must work to change the old mindset: a new approach will not only favour women but will also foster a type of leadership based on empathic soft skills. In the digital age and its new challenges, women should not be fighting to integrate themselves into a system that has proved to be disastrous as it supports only one model, the alpha personality, mostly very dominant figures. I met women that had old-fashioned leadership styles, not very cooperative and participatory, and men who lead in an inclusive way and pay attention to the social fabric outside and inside the company. Adopting a leadership based on arrogance, blind self-confidence and lack of empathy does not work today, in the face of the probable failure of liberal democracies, the negative influence of social platforms, the climate crisis, artificial intelligence and the associated risks. Both women and men should all work together to transform the mindset of companies (and politics), making room for the new facts on the ground”.

For women, it means they have to learn to believe more in themselves, to not settle for less and to act, without always waiting for the right moment in decisions concerning private and working life – to have a child or to accept a new role of great responsibility that involves changes. “Sacrificing one’s ambitions even before trying is harmful to oneself, to other women, to new generations and to the men that are witnessing this behaviour”.

On 14 June, over half a million women and men across Switzerland joined the demonstrations following the strike, plus all those who participated in a “digital” way. What do you wish for, Manuela? “I wish for strong governmental reforms and independent inspections of companies to assess corporate culture, and diversity within them. And I also expect each of us to raise awareness of issues of vital importance, in each of our daily roles, as mothers, fathers, teachers, workers, leaders. Starting from making our children aware of the importance of equality, inclusion and an open mind-set to face today’s new challenges”.

Valeria Camia with Manuela Andaloro

Manuela Andaloro is a senior professional with over 19 years of executive experience in global roles in financial services, business strategy and digital transformation, having lived in Milan, London and Zurich and worked for firms such as Nielsen, Financial News and UBS. Since 2017, she is the Founder of Swiss-based SmartBizHub, a management consultancy specialising in marketing, positioning, communications, sustainability, future tech and future work. Manuela is a professional speaker, a published author, and an editorial consultant for various leading publications on the topics of finance, social shifts, impact, culture and leadership. She serves as advisory board member of various Swiss and international organizations, and as a board member of the Weizmann Institute of Science in Europe. Manuela is a D&I champion and advocate for EQ- driven leadership, speaks English, Italian, German and Spanish and lives in Zurich with her husband and two children. 

As published in Corriere dell’ Italianita’ cover story, 30 July 2019 view original article in Italian here.

Brexit, a pause for breath?

Article by Manuela Andaloro, contribution by Laura Prina Cerai, Senior Investment Advisor, Altrafin AG

It’s an autumn afternoon in 2008, in London. I am sitting in a car next to Jeff, the CFO of the company I work for. I am part of the management team of an international financial services company with offices in London and Singapore. We are going to a meeting not far from London. We are near Maidenhead, a thriving residential town near the more industrial Slough, or the more well-known Windsor, north-west of the capital of the United Kingdom. Jeff is British, fair, calm, competent and empathic. We have a good working relationship. We talk about life in the city centre, Bayswater and Notting Hill, the area I live in, an Italian in her thirties with a ten-year career under her belt. We also talk about life outside London, where Jeff resides with his family; he’s a middle-aged man with almost teenage children.

London, cosmopolitan city. Over 300 languages are currently spoken in London schools.

“London is a truly cosmopolitan city, there is a great social integration, something to be proud of”, I comment at some point. “True that, but I think this is something people rarely see in us. Brits are not often recognised the merits of being open and welcoming towards immigration. I mean, there are different kinds of migrants. All this welcoming and open attitude…. I am afraid that at some point it may come back to haunt us”, answers Jeff with an emphasis that makes me now understand some of Brexit’s roots. I ask what he means by that. “You see, we don’t all really feel European, for starters, we drive on the right side of the road!”. Jeff is laughing but I catch some frustration in his tone. I have many thoughts in my mind, but we suddenly change the subject and go back talking about the client we’re about to visit.

This conversation came back to my mind the day after the referendum on Brexit, on 24th of June, 2016, in a moment of surprise for an unexpected result. I am reading one of the most precise reports ever written about the “unseen” London, “the stories you never hear, the people you never see” (ed. “This is London” by Ben Judah). “This is London in the eyes of its beggars, bankers, coppers, gangsters, carers, witch-doctors and sex workers. This is London in the voices of Arabs, Afghans, Nigerians, Poles, Romanians and Russians”. A work that sheds light upon a reality that I have not fully grasped during my 5 years in London. I have been caught up in my business life, or private life in the picturesque Notting Hill, between conferences and client meetings in the City, awards dinner in Park Lane and business trips. Like me, millions and millions of people are not fully aware of this reality.

The Eastern Europe immigration policies allowed by Cameron come back to my mind, along with the stories, the lives that we hardly notice, but actually have a vital impact on the culture and politics of a country.

Immigration has been leveraged as a hot topic and a sore point in “Leave” campaigns; the ONS (the Office of National Statistics), ranked it as the main concern of the British people in the spring of 2016.

Leave campaigns have encouraged that vision, by declaring that staying in the EU would mean 5.23 million more immigrants entering the country. This allegation was later found to be false.

In the weeks leading up to the referendum, politicians in favour of Brexit, such as Penny Mordaunt and Michael Gove, claimed (once again, falsely) that Britain would be exposed to a Muslim wave of immigration from Turkey should this latter become part of the EU.

The Committee on the Elimination of Racial Discrimination, a UN body, accused British politicians of fuelling racial hatred and a sharp increase in racist crimes during and after the referendum campaign.

In the 2018 book “Ctrl Alt Delete: How Politics and the Media Crashed Our Democracy”, Gove told the author, Tom Baldwin, that if it had been just up to him, the referendum campaign would have been different. Really?

In 2017, Theresa May promised to drastically reduce immigrants by “tens of thousands” and to suspend the freedom of movement – the right of European citizens living in the EU to move to other member states. Eventually, any such intention was abandoned during the negotiations.

But in the middle of 2018, the sore point was no longer immigration. With Brexit around the corner, more serious problems were drawing all the attention. According to the ONS statistics of the spring of 2018, the new concerns of the British were housing, the cost of living, health and social security.

Every medal has two sides.

The “Remain” party was no less mistaken in terms of predictions. When the “Leave” campaign prevailed, Prime Minister David Cameron resigned, after having stated for months that he would remain.

Former Chancellor George Osborne said a victory of the “Leave” coalition would have lead to an “immediate and profound shock to our economy”. That shock would have caused an immediate recession and led to the loss of half a million jobs. Eventually, the economy did not fall sharply and the level of unemployment remained unchanged.

Other predictions, such as those of the Bank of England, the International Monetary Fund, the Organisation for Economic Cooperation and Development and the Institute for Fiscal Studies, accurately predicted slower growth, in line with the other rich G7 countries.

Around the end of 2018, the British economy reached the decade’s record low, and by then the pound had lost over 14% of the value it had before the referendum.

To date, many multinational companies have moved abroad or are in the process of doing so and various businesses and sectors are beginning to struggle.

Maybe not exactly an apocalypse, yet not even a signal that Britain is experiencing what Boris Johnson predicted it would be a “titanic success” with Brexit. (“Titanic success”, by Boris Johnson).

Between predictions and confusion, one thing is beyond doubt: if Brexit does happen, it will be all but the vision that was originally sold to the electorate who had requested it.

The state of affairs shows that, as in many other countries, the “Remainers” and “Leavers” represent different elements of the same country, two sides of the same medal. Sometimes war is fought within one’s self.

The major public debate of the last two years has separated families and broken friendships, but it has also brought to light the bonds that create and rule a country.

The use of history

“Brexiteers” have often referred to the concept – and the dream – of “Independence”. It is a noble, commendable dream, indeed. It is founded on Britain’s historic role as a proud nation that has repeatedly fought for its freedom. In the 18th century Britain resisted the Bourbon dream of European hegemony. At the beginning of the 19th century, the British people helped liberate Europe from the Napoleonic domination, they confronted Nazism in Germany in 1940.

But this is not 1939 or the Battle of Waterloo in 1815. History is always in the making.

The European Union is not a dictatorship, as was that of Napoleonic France. Nor can it be compared to Nazism, an irresponsible, superficial analogy that has become a bad cliché and shows an unforgivable lack of understanding of the true horror of recent European history.

Is such a language acceptable today, when all European partners are democracies and none of them represents the least threat to take up arms against Great Britain?

The political class and the global order

Where are today personalities like Churchill and Thatcher? Where are the statesmen and stateswomen who made the United Kingdom great? The British political class of today is offering a disheartening scenario: we are witnessing the decline of the elite of a nation that once dominated a vast empire from Canada to Australia. And the consequences can involve all of Europe.

The Brexit agreement reached between Theresa May and the EU in Westminster was rejected three times, and so did all the suggestions and hypotheses of an alternative. It was a No to a soft Brexit, No to its revocation, No to a second referendum, but also a No to the no deal option (leaving without any agreement).

At the beginning of the negotiations, Theresa May laid out some guidelines she later could not comply with and ended up trapped into them. Brexit means the end of the single market, the customs union, freedom of movement, European jurisdiction, she said: but she did not explain to the country the necessary trade-off between sovereignty and prosperity.

The more one gains in terms of political independence, the more one loses in terms of economic integration.

Jeremy Corbyn’s labourists struggled and failed to present any credible alternatives in the last two and a half years. Corbyn’s contradictions on Brexit are due to an electorate so vast and diverse that it ranges from liberal metropolitan voters who eat an avocado toast in London cafes to workers in the north who live with frowned-upon immigrants, often less educated. Unfortunately, from the point of view of the Remainer labourists, nothing was accomplished.

The problem is perhaps wider and has its roots in the changes of the ruling classes. In the past, in Britain, as in many first world countries, the most brilliant members of the wealthiest families embraced the political career, something that was considered very prestigious up to a few years ago. But in recent decades those who had a choice clearly preferred to dedicate themselves to finance, large companies, the corporate world and entrepreneurship.

The lesson that Britain has learnt over the last two years is that the country works much better inside the EU than outside. Within the Union, the UK is highly respected – it was British politicians, for example, the ones who set the rules of the single market – and has a say in any reform, certainly more than as a hostile neighbour.

This is perhaps one of the most important virtues of the EU, in an age in which we regard with concern the new forces that lead towards the frightening collapse of the global order that was reached after the devastating world wars. The emergency before the eyes of everyone is that of an aggressive system of protectionist sectors.

Under these new alarming circumstance, it is very dangerous to rely solely on the World Trade Organization (WTO). Yet the WTO is fundamental to the economic model advocated by the Brexiteers. The WTO is losing its ability to ensure a free market for goods and services finding itself under the attack of Trump’s America and Xi Jinping’s China.

In the age of Trump and Xi, relying on the WTO to ensure free trade is comparable to relying solely on the United Nations to protect human rights: they both can provide well-intentioned resolutions but, alone, they are powerless.

The promoters of the “Leave” campaign said that Brexit would be “quick and easy”. They said trade agreements with all EU countries would be ready before leaving the Union. As Liam Fox put it, “the free trade agreement that we will have to do with the European Union should be one of the easiest in human history”.

Nothing seems to be easy today.

They made exaggerated and false declarations about Britain’s post-Brexit finances, using methods that were later proven illegal, using obscure funding.

Perhaps we should go back to a simple, quiet and humble proposal, as common sense often is. Perhaps we should pause Brexit and take a break for reflection.

We are talking about one of the most important decisions ever made, with the biggest long-term consequences that the British government has ever experienced since the Second World War.

A decision that will affect the lives of future generations in a profound way.

Any psychologist would agree on what the worst time to make important decisions is: the one in which one suffers from an emotional collapse or a breakdown, that is exactly the state in which many British politicians are at the moment.

The decision on Brexit, now that all the cards were laid on the table, must be made with absolute and thoughtful calm.

Brexit in a snapshot.

The roots of Brexit are to be found in the traditional British resentment towards Europe. Not surprisingly, one of the most famous quotations of the legendary Prime Minister Winston Churchill is: “Every time we have to decide between Europe and the open sea, it is always the open sea we shall choose”. Recently, the reasons for Brexit lie in a general dissatisfaction that’s spreading throughout the majority of the population, along with a good dose of new nationalism, flanked by unscrupulous populists with demonstrably false recriminations and manipulation of the social media and local press, which is more than a business for journalists.

In the United Kingdom, the deep disagreements between the population and the parliament have led to a political stalemate, precisely when England and the rest of Europe need courageous reforms in many areas. Economists have long warned about the social and political effects of the “new economy”, low interest rates and globalisation. But until now, European politics has lagged behind without adapting to change, trapped by populist propaganda looking back to bygone times. But the world does not wait, while Europe withdraws on itself. The consequences are dramatic: the old continent is lagging behind the US economy and emerging markets because of its archaic economic structures.

At present, June 2019, conservative candidate Boris Johnson seems to be the favourite for the top job, even after his recent domestic drama, but world investors are being forced to ask what this means for the only form of Brexit that could quickly disrupt the economy and frighten the markets — a disorderly Brexit on October 31, Halloween.

Mr Johnson has failed to give a categorical guarantee that the UK will leave on that date, saying only that it is “eminently feasible”. However, he has said unequivocally: “If it comes to a choice between no deal, and no Brexit, I would have to back no deal”. (BORIS JOHNSON, BBC WEBSITE, JUNE 19, 2019).

His rival Jeremy Hunt, who might become prime minister by default if Mr Johnson were to drop out, has been more nuanced. Like Mr Johnson, he prefers no deal to no Brexit, but has emphasised the importance of achieving Brexit through a “good deal”, adding: “I would not pursue no deal, with all the risks it involves, if there was the chance of a good deal.” (JEREMY HUNT, BBC WEBSITE, JUNE 19, 2019).

The risks of political miscalculation before October 31 certainly seem larger than they were in the run-up to the initial Brexit date of March 29. Then, parliament was ready and able to exert its natural majority to prevent a no-deal Brexit. Furthermore, both prime minister Theresa May and the EU were willing to accept a long postponement of Brexit. None of these safety valves seems to be in place this time. The markets are reluctant to accept that the next deadline on October 31 might be the real one.

Manuela Andaloro

(info@smartbizhub.com)

 As published in Focus ON’s “on deep” story, May 2019, download original article in Italian here.

Do not wait for leaders. Become them.

“In terms of promoting diversity in the industry, there are some easy steps that could be taken to try and break the image of financial services as a realm of male domination. Increasing the number of women speakers at major industry events sounds like a no-brainer, but it’s still something event-coordinators struggle to do. Organisations like EWPN are playing such a vital role in breaking these patterns, not only by empowering women, but also by promoting women in the payments industry who deserve recognition, who would be overlooked, in many cases, by their male counterparts.”

— Angela Yore, MD, Advisory Board EWPN

Left to right, Chloe Templeton, Megan Caywood, Manuela Andaloro, panel moderated by Angela Yore

The world is in desperate need of great leaders—whether in business or in politics. Yet, many leadership opportunities are withheld from half of the workforce.

Even with all the progress we’ve made for equality in so many important ways, women are still severely underrepresented in business leadership positions. Women-led companies make up only 4% of Fortune 500 companies, a trend that holds steady throughout most business sectors.

According to the latest World Economic Forum’s Global Gender Gap Report, “Female talent remains one of the most underutilized business resources.” In some industries, like finance, this is especially clear.

In finance, as career level rises, female representation declines. Although 46 percent of financial services employees are women, at the executive level, it’s only 15 percent. (WEF 2017 data)

The outlook looks better than when I started my career 19 years ago, or even since my banking days 2 years ago, yet, much remains to be done, starting from raising awareness on role models who lead leveraging their high EQ.

New role models are crucial to break the cycles of outdated cultures, inspiring women and men to a new identity of leadership, one that leverages skills such as collaboration, empathy and trust, helping younger generations of women and men to rise to a new identity of leadership, one that doesn’t take only one form.

But how are we all driving steadily this very much needed change? What new real models for women and men are we raising awareness on? Men are as much trapped in most of this “alpha-male” world as women are. Times are changing, a clear reflection of this is the increasing number of millennials (women and men) who are less than fascinated by old corporate working models and by old and outdated environments.

The lure that many large corporations once had in attracting and retaining talents is long gone, replaced by new working models, attractive start-ups, high impact lean companies that favour calm competence over loud arrogant behaviours.

Millennials are not alone on their quest. It’s enough to think of how many people we know above 40, men and women, who are daily trying to change the way they work, to find more meaning in what they do, to leave behind the old ‘work life balance’ to find sustainable ways to create a winning synergy between their work and their life.

It was a great honour to join last year one of the leading events in the payments and Fintech sector for their first ever all-women panel.

Beyond the now well-known benefits of gender balance, our goal was to share learnings, experiences and stories from diverse female role models,  raising awareness on new, different types of female leadership and successes.

As the two thousand guests gathered, it became apparent that women represent still a stark minority  in the sector, and at the same time,  that interest in the topic of gender balance and of leverage of the female brains is ever so relevant for men and women alike. 

The payments industry is not unique in gender inequality: traditional payments companies have been technology and finance driven, both mostly male-dominated industries that have somehow landed in a fairly versatile space.

The panel I was invited to sit on was expertly moderated by Angela Yore, Founder of SkyParlour, EWPN board member and leading advocate for women empowerment in the FinTech space. Fellow panellists were Megan Caywood, then Chief Platform Officer at Starling Bank, now Global Head of Digital Strategy at Barclays Bank, and Chloe Templeton,  Head of Mutuals and Women in Finance at HM Tresurey, now International Policy Lead for Women's Economic Empowerment at the Department for International Development (DFID).

We spoke about the importance of empowering women and men to achieve diversity and close the gender gap, and of how to frame and invest in our own personal brand.

What follows is a snapshot of our panel discussion with key take-aways.

Question: “What to do about the fact that confident women leaders are often seen negatively?”

Megan: “Be confident anyway. We need confident women leaders. The world doesn’t benefit by us shrinking so that others aren’t intimidated.”

Question: “Can you tell us more about the Women in Finance Charter?”

Chloe: “In 2016 HM Treasury launched the Women in Finance Charter which commits signatory firms to make significant progress on improving the representation of women at the most senior levels of their organisation. Over 270 firms have signed the Charter, who together employ more than 750,000 staff.”

Question: “Why is the number of women on boards still so low?”

Angela: “When I say to the Fintech leaders I work with, ‘why is your board so lacking in diversity?’, the tame response I often get is that women are simply not applying! And it’s true that women only represent 29% of staff in the sector and white men dominate the boardroom. Men still make up the majority of high paid jobs in financial services but good things are beginning to happen and . California is leading the way as the first US state to require women on corporate boards and PwC is the first of the big four to ban all-male job shortlists.”

Question: “How can women’s voices be heard more?”

Manuela: “A famous statement of Christine Lagarde post financial crisis quotes `If Lehman Brothers had been a bit more Lehman Sisters ... we would not have had the degree of tragedy that we had as a result of what happened.` Beyond the obvious what this highlights is that women are normally naturally more risk-averse than men. Which is very good for most businesses but can be backfiring when it comes to promoting ourselves in the workplace and our role in society. Our own personal brand should be the best representation of our values across our personal and professional lives, and should be out there.”

M.

(info@smartbizhub.com)

———-

For more information:

Women in Finance Charter materials here.

Analysis of the Charter’s impact here 

Firms who want to sign the Charter can do so here

Payexpo 2019

When Innovation and Angels speak Italian

“A partnership of entrepreneurs and managers willing to give back to the next generation of innovators.”

— iStarter

 iStarter, Italian angel-led start-up accelerator, supports Italian champions to scale globally. Established in 2012, they quickly reached a million-dollar capitalisation thanks to a network of 100 investors or Equity Partners.

Ahead of the upcoming istarter Made in Italy 2020 event taking place in New York on April 4th, I reflect back on my impressions of the previous successful London edition of MII2020.

What happens at iStarter events?  

The location is the prestigious Burlington House on Piccadilly, I am attending the 3rd London edition of “made in Italy 2020” by istarter, the leading accelerator of Italian start-ups led by Simone Cimminelli.  

As I enter the elegant room the first thing that strikes me is the energy. Enthusiasm. Passion. Optimism. Trust. Impossible not to notice. 

We are talking success today, steady innovation to solve today’s global challenges. We are talking impact. The focus is on tech and digital successful startups launched by Italian entrepreneurs that have achieved outstanding metrics.  

The goal is to showcase the best innovators and present them to an audience of international investors across the globe and specifically in London, Beijing and NYC, all known for the increasing number of VCs.

iStarter leverages the reach and expertise of 100 equity partners and increasingly attracts leading institutional investors as well as angel investors. An impressive 55 investors are attending today.

We discuss impact, portray the energy, and bring some home to Switzerland, and to the world.  

What is clear is that Italians remain steadily at the top of the European charts by wealth pro-capita and the start-up landscape has been booming year on year.

“A strong sign that Italian creativity, already well known for food, fashion and design, has for a while now been shining in innovation and tech” says Simone Cimminelli. How does an accelerator make money is the first question that comes to mind. “There is surely less risk in investing in Apple but the returns on investments on start-ups can be significantly higher.”

So much for tired stereotypes, populism sweeping across the world and economic challenges, there are no talks of any of that here today.

The Investors

Andrea Conte

I exchange a few thoughts with Andrea Conte, technology entrepreneur, investor in more than 20 companies and  mind behind the success of Fastweb, under his guidance the well established telco provider achieved revenues of 1,7B€.

“MII2020 is a beneficial display of our still extraordinarily alive, creative and inspired entrepreneurial panorama. Italian innovators represent an unexploited opportunity to invest in, with excellent evaluation, if compared to the rest of Europe, my company will invest in at least one scale up today”.

Q. Andrea, what does impact mean for you?

A. A business can impact society in two ways: creating better tools to satisfy needs,  or creating new opportunities to improve the socio-economic environment. What characterises my approach is the development and application of cutting-edge technologies, with specific reference to AI,  to create new business models. It's a vision that includes, integrates and enhances the human layer, rather than replace it. My Companies employ over 500 people and most of them are in direct contact with clients: their expertise and their empathy skills are the added value in which I invest in every day, augmenting their relationship capabilities with Artificial Intelligence. We aim for quality and innovation instead of cutting labor costs with creative offshore.”  

Gender gap?

Right to left: Fausta Pavesio, Riccarda Zezza, Antonio Chiarello, Manuela Andaloro attending the annual iStarter event in London

Women’s representation among the start-ups was 25%,  slightly lower on the investor side, so I was very interested to discuss the topic of gender in business with Fausta Pavesio, an Angel Investor in breakthrough ventures, named by EU Startups among the 50 most influential European women in Startup and VC.

In June 2018 Fausta was named “Woman Business Angel of the Year” by EUWBA/EBAN. In other words, a force of nature who recalls her early days in tech when she followed her husband in the US in the early nineties and was the only woman in the field on many occasions.

Q. Fausta, what do you think of MII2020?

A.Made in Italy 2020 in London has been a great event: 16 scale-ups of great value in different verticals are the evidence of Italian entrepreneurship. Despite the political current turmoil, today’s event and the current successful status shows the world that Italy has incredible excellences  and resources.

Q. What impact does your business have on society?

A.I am one of the early investors in MAAM: for me impact means dealing with the everyday life of the people, and improving it.

Q. As a senior executive, where do the synergies between your professional and personal goals lead you daily?  

A.Very difficult question: I love my job as a mentor and investor, I love young entrepreneurs. I always say that tracing the line between my professional and personal life is almost impossible: I am leaving tomorrow for a study trip in Berlin with 15 female entrepreneurs: is this work or fun? I really can't say!!!

The Scale-Ups

So what are the most striking ventures and start-ups that achieve systematic impact? I have caught up with a few of the impact-makers attending and exchanged ideas and impressions over (many) coffees.

Foorban

An interesting and very successful concept is Foorban’s, a exchange with its CEO, Federico Samuelly, reveals their core mission: boost the everyday quality of life of the modern urban citizens.

“High quality healthy food is key for everyone, and our aim is to provide high quality meals and a great food experience to the ‘urban’ citizen: workplace, home, business trips, commute, we are there.” says Federico.

Life Based Value

Riccarda Zezza speaking to investors

Another very successful company I have been following for many years now is Life Based Value, founded by social entrepreneur and Ashoka fellow Riccarda Zezza. MAAM, their core product has led a successful mission to unlock people’s potential by empowering life based learning.

Q. Riccarda, what do you think about today’s event?

A. It’s meaningful and motivating to see that Italian scale ups attract so much interest.

Q. What does impact mean for you?

A. Impact for me means updating old definitions that frame the reality in a way that generates waste of resources and unhappiness. This is what we do with MAAM: we change the frame, giving space to skills and energies of mothers and fathers that normally are considered as useful only at home, and that can have a huge positive impact in the workplace.

Q. As CEO, where do the synergies between your professional and personal goals lead you daily?  

A. To the capacity of being human in everything I do, as every evening I can hug my children and be reminded about the meaning behind my company and my role in it.

D-Orbit

From soft skills to hard science in the space of a few minutes, I sit with Luca Rossettini, CEO of D-Orbit. His company’s mission is to provide end-to-end solutions to “improve new and traditional space businesses by streamlining in-space and on-ground operations with unique, innovative and proprietary technologies”. Their vision, in-space servicing and transportation to enable profitable business and human expansion in a sustainable space.

Q .Luca, what is impact for your and your firm?

A. D-Orbit aims to become the leader in space logistics and waste management. Working for a more sustainable and usable space, we ultimately serve society.

Transforming near-fatal episodes into opportunities

D-Heart

Suffering of a severe heart failure episode at 16 changes your life. Niccolo’ Maurizi decided to turn events to help save lives, creating D-Heart, a portable hospital-grade ECG device.

Q. Niccolo’, how does D-heart work?

A. D-Heart is the first smartphone-based electrocardiograph that is simple to use, clinically reliable, portable and affordable. It allows anyone to perform a hospital-level ECG in total autonomy and to send the results to the 24/7 tele-cardiology service or to your trusted doctor.

Q. How did you start?

A.D-Heart is a biomedical start-up founded in 2015 by myself, a doctor researcher in cardiology at the University of Florence and Nicolò Briante, my co-founder. I suffered a severe myocardial infection at the age of 16 and this changed my life, I decided to become a doctor and transform my problem into an opportunity. D-Heart is the first smartphone ECG device that combines the usability required by the patient and reliability of the ECG wanted by doctors. With the rise of non-communicable diseases there is an urgent call to promote effective and accessible low-cost prevention campaigns in low-income settings. D-Heart is active worldwide in more than 10 countries from 4 different continents in the development of affordable and operator-oriented cardiovascular screening campaigns, partnering with NGOs such as AMREF, private foundations as well as benefit corporation.

The air you breathe

U-Earth

I caught up with U-Earth’s CEO and Founder Betta Maggio and found out that when we think of air pollution we automatically think of big cities, traffic, fumes of cars, trucks, industries and heating systems, but that actually, the closed environments we spend most of our lives in (offices, homes, restaurants) can be as much or in some cases even more polluted. U-Earth leverages innovation and develops biotechnology for air decontamination, aiming at improving the quality of the air we breathe every day.

Q. Betta, what brings you here? 

Betta Maggio

A.Made in Italy 2020 is a great vehicle for Italian entrepreneurs to get out of their “ comfort zone” and get challenged on the international scene, well supported from an Italian origin team with competences and deep experience on the local scene. A great advantage where companies can focus on their pitch while all the rest is efficiently taken care of.

Q. What impact would you say your business has on society?

A. We create Pure Air Zones eliminating air pollution from people’s life therefore impact is all we are after ! What does impact mean for me personally? The execution of a  true mission which will make the world a better place.

Q. As CEO, where do the synergies between your professional and personal goals lead you daily? 

A.They lead me towards a more health-oriented life. I try to adopt a problem solving mentality in everything I do, trying my best to take into account the consequences of my actions and the impact they could have on future generations.

Data Science meets the Real Estate business: A new era of trading

Casavo

A very successful venture seems to be supported by the marriage of real estate and tech: Casavo. The team is young, passionate and expert about technology.  Only 17 months after launching, Casavo has raised €7 million in Series A funding. This brings the total raised by Casavo to €21 million in equity and debt funding.

I have discussed with Giorgio Tinacci, Casavo’s CEO the base of their success. “Our team. An international team whose heart beats in Milan. We are supported by investors and experts with decades of experience in Real Estate to achieve our goal of making the Real Estate market simple, fast, and safe.”

Q. Why MII2020?

Casavo team

A. MII 2020 was a great opportunity to connect with entrepreneurs and investors. For around a decade, Italy has been lagging behind other European countries in terms of dynamism of the startup ecosystem and, therefore, in terms of investments. Finally, things seem to be changing: during the first half of 2018, the amount of investments obtained by Italian startups overcame the sum of the investments received in 12 months in 2017. Numbers matter, but opinions are important too, and we’ve been told by international VC funds that their feeling is clear: something is happening in Italy. MII 2020 reflected this trend: cutting-edge technologies, clear visions for the future, real innovation and the ambition to become leaders in Europe in their own field.

Q. As CEO, where do the synergies between your professional and personal goals lead you daily? 

A. As a young entrepreneur, I believe in offering our employees the best career paths and opportunities to grow their skills in a fast-growing and innovative context. Casavo’s management team is young, but we want younger people to see they can make their dreams true, while inspiring other young wanna-be entrepreneurs. I am doing my best to reach this goal while offering people a way to get control over house-selling.

The bigger picture

The 55 Investors involved @iStarter MII2020 London

Italy has a long history of innovation, from the technological achievements of the Roman Empire to the development of the radio by one Guglielmo Marconi. Of late, however, Italy has had something of a reputation for being bureaucracy-heavy and risk-averse, both of which are never good from the point of view of an entrepreneur. Yet this is beginning to change, with new initiatives from the Italian government and private parties that have made it easier for startups to, well, start up.

The Italian startup scene has had a few notable success stories. Talent Garden, a co-working network based in Milan, recently raised €12 million in funding, and now has 17 locations across Europe.

The biggest challenge that Italian startups face, in addition to having to navigate bureaucratic red tape, is funding. Because startups are a relatively recent concept, many institutions are reluctant to lend them the money they need. As Antonio Chiarello, Vice President of iStarter notes, "The challenge startups face in Italy is the availability of capital and local financial resources to support their creativity and innovation," adding that Italy's "startup ecosystem is widespread, early stage and vast, making it ripe to invest in its digital market."

iStarter aims to bridge that gap, using the expertise of its investors as entrepreneurs and managers to mentor local companies and support their growth, connecting Italian companies and other international markets, including the US, UK, and China. (Inc.)

M.

(info@smartbizhub.com)

Post-liberal: order and value

Article by Manuela Andaloro , published in Focus ON’s cover story, February 2019, download original article in Italian here.

The single currency has come a long way from the initial dream in which many did not believe. From the first discussions in 1960 on an economic and monetary union, to date, the currency of 340 million Europeans, used by another 175 million people in the world. Its success? It is about combining national identities with global ethos and customs.

One of the skills I have learnt working for twenty years for various companies and in three different countries (ed. Italy, United Kingdom, Switzerland), is being able to read people, finding the key to establishing human relationships based on understanding, trust, empathy: from team members and employees, to bosses, customers, various stakeholders with whom in the last two decades I have dealt and, often, from whom I had the pleasure of learning something.

When dealing with diversity, there are three fundamental aspects one must immediately consider, beyond language and working skills, cultural aspects, or similar experience:

1. A realistic awareness of one’s value, and the impact it has on others, on business and on society. 

2. Understanding the importance of constantly switching from looking at the big picture to paying the attention to details.

3.  Turning a fixed mindset into a growth mindset while staying humble – an essential skill.
   

This is what I call emotional competence: integrated skills that are not bound to cultures, nationalities, business ranks, age, generations, education and training. I am talking about skills that can be learnt every day, that make the difference, in my opinion, between those who bring in value, from those who subtract value in the medium and long term: I am thinking of human relationships, businesses, and companies.

Whether we are talking about the latest strategic business plan, a political initiative, the merger of two institutions, or the interpretation of financial statements, the emotional competence of the involved stakeholders is directly proportional to the success that they will achieve in the medium and long term.

Emotional competence and European single currency.

Twenty years ago a new currency was born, it was the single currency of what would be later known as the eurozone: the euro.

 It did not exist yet in the form of coins and notes we all know today, which were introduced a few years later, in 2002. In that year, the united currency became tangible for millions of Europeans and the old German marks, French francs, Italian liras, Spanish pesetas, and all the ancient variegated currencies of Europe became History.

Mario Draghi, President of the European Central Bank, once compared the euro to a hornet – a “mystery of nature” that should not be able to fly, but somehow, it does. 

Draghi used this metaphor during the tumultuous Greek debt crisis in 2012 when many wondered if the end of the euro was close.

Two decades after its birth, the euro flies high. Member States have grown from 11 to 19, and the size of the European economy has risen by 72%, to 11.2 trillion euros, second only to that of the United States, turning the positioning of the European Union into a global force that should not be underestimated.

The last two decades have often been turbulent ones for the single currency, from an initial exchange rate against the dollar of $ 1.16, the euro slipped to a nadir of only $ 0.853 in 2001, during the “dot-com bubble” that caused clamorous slips to digital investors of that time. From that moment on, it was a bull market until reaching a peak of $ 1.58 in 2008, just before the financial crisis.

This was the period when rappers like Jay-Z and models like Gisele Bündchen insisted to be paid in euros instead of dollars.

The euro maintained a favourable exchange rate against the dollar during the financial crisis, but a long decline began, once again, in 2014 due to fears related to the eurozone’s rupture.

A key factor was the traditionally interventionist behaviour that the European Central Bank adopted at that time, aimed at supporting economic activities in the areas affected by the recession – an intervention that normally suppresses the relative value of currencies.

Today the euro is stable at around $ 1.14, a position similar to that of twenty years ago.

But how successful was the single currency?

If we look at the annual Eurobarometer survey, the answer is, surprisingly, very successful, given the political and economic turmoil of recent years.

Faced with the question “has the euro been positive or negative for your country?”, on average, the citizens of the analysed European countries have answered positively in 64% of the cases. The same survey in 2002 resulted in only 51% of the population being satisfied with the single currency. The same research in 2018 concludes that in some countries of the block, three-quarters of the population has confirmed that the euro was “a good thing”.

But there are other parameters to take into account, and the great majority of them paints a positive picture.

The single currency is used today by around 340 million people in 19 countries. The euro is today a global reserve currency, stocked by central banks and multilateral institutions, such as the International Monetary Fund (IMF).

The Eurozone inflation has been kept under control, remaining on average at 1.7% in the last twenty years, just below the 2% policy imposed by the European Central Bank.

Yet, some economists are not convinced that the euro has been a success, due to the fact that since 2000 the GDP per capita in the eurozone has had a lower yield than expected (purchasing power being the same), growing by 15%, less than the US (19%) and the United Kingdom (20%).

A relative sub-yield.

Yet, this event has significantly less importance than the fact that the single currency has come out unscathed after the serious existential crisis experienced from 2010 to 2015, when the imminent crumbling of the eurozone was feared, at a time when countries like Greece, Italy, Ireland and Portugal ended up under the paralysing pressure of the bond market.

 The disaster was avoided thanks to an intentionally vague promise of Mario Draghi, in July 2012, that “we will do whatever it takes” to keep the united market together.

Some regard this episode as evidence that the creation of the single currency was a mistake, that binding economies with different levels of productivity and local institutions, along with a common currency with a single interest rate, would be a doomed project and would create financial, economic and social tensions.

“The euro’s main achievement is still being here, and it’s very likely that it’s here to stay”, writes Constantine Fraser, a European policy analyst at TS Lombard, and he adds “This slightly mad project of a supranational currency union with wildly different economies within it has lasted 20 years and has brought these economies and countries closer together”.

In many cases, older Europeans do not feel European “enough”, but the generational change and the advent of the new generations, grown up in an international environment favourable to integration, will promote the European Union. The eurozone must go on, because if it stopped, it would fall. There is a political will to make sure it continues to grow, but it is still uncertain how quickly and with what incremental changes.

Ten years after recovering from the financial crisis, political instability is now the biggest and most unpredictable threat to the eurozone. The toughest challenge for the European Central Bank during its third decade will be to secure the healthy survival of the union, threatened by the tumultuous background of a significant populist pressure rather than the stress of the financial markets.

Going back to the skills mentioned at the beginning and the much needed emotional competence, let us look at the big picture.

For several generations, the world has been governed by what we now call the “global liberal order”. Bombastic words, whose real meaning is that all men share some basic experiences, values ​​and interests, and that no group of men is inherently superior to another. Cooperation is therefore more favourable than conflict. All men should work together to protect their common values ​​and advance their common interests. The best way to promote such cooperation is to facilitate the circulation of ideas, goods, money and people across the globe.

Although the global liberal order sometimes poses difficulties and problems, it has proved its superiority over all other alternatives. The liberal world of the 21st century is more prosperous, healthy and peaceful than ever in human history. For the first time in history, hunger kills fewer people than obesity, scourges kill fewer people than old age, and violence claims fewer victims than accidents.

We have not died when we were 6 months old thanks to the medicines discovered by foreign scientists in foreign lands. At the age of 11, we have not been erased by a nuclear war, thanks to agreements made by foreign leaders at the poles of the planet, agreements that the new leaders of America and Russia have recently questioned and the expected outcome within 6 months does not look positive.

We should ask those who express their will to return to the golden pre-liberal or even colonial ages, to mention in which year exactly mankind was in better shape than in the 21st century. Was it in 1918? Or 1700? Or in the Middle Ages?

And yet, people all over the world seem to have lost their faith in our liberal order.

Nationalist and religious opinions that favour one group over the other are popular again. Governments seem to increasingly restrict the flow of ideas, goods, money and people. Walls are created, both physical, mental and in the virtual space. Immigration does not persuade, fees and duties increase.

 What kind of global order can replace the current one? So far, there seem to be only sketchy and untested solutions at a national level – think of the disastrous example of Brexit –, aimed at promoting the interests of a particular country. But nobody seems to envision how the world, together, should work. Leaving imperialism and global conquests for the history books and science fiction films, what solutions do we have and will leave to our children for the generations to come?

 There are real severe threats at the gates of our civilisation. They grow on a global scale, they care little of national borders, and they can only be resolved through global cooperation: nuclear wars, climate change, artificial intelligence and associated technological risks.

However, this is not yet our destiny, we still have a choice. We are still in time to propose a realistic global agenda, beyond commercial agreements. We have the choice to choose, to promote or to reject the leaders – in business, in society, in politics, among our acquaintances – that demonstrate not to have qualities such as understanding the big picture, empathy, humility, that are not aware of the impact of their actions on those who have less means to understand the reality, or worse, who understand and exploit it for their own purposes.

Let us remember the skills of those who, at any level, in any sector, bring in value and have the intrinsic qualities of true leaders: emotional competence.

New identities and solutions are formed in times of crisis. The euro has shown it, so has history.

Manuela Andaloro

(info@smartbizhub.com)

 As published in Focus ON’s cover story, February 2019, download original article in Italian here.

FinTech: the new finance between innovation and culture

This week I had the incredible privilege of hosting as master of ceremony and moderating one of the most important events in the annual calendar of Swiss financial institutions and UK-based successful FinTech companies: the 4th UK FinTech Mission to Switzerland. 

On January 24th, 2019, the UK FinTech Mission to Switzerland, organized by the Department for International Trade, brought together high-ranking government representatives, Swiss financial innovators, successful UK FinTechs, and famous leaders for two thought-provoking panel discussions.

Strong numbers behind a successful platform. The three previous events generated over CHF 50 million in signed business and provided a strong business platform for over 150 attendees. The 4th mission saw 28 UK and 33 Swiss companies present, discussing innovation and future impact on society in the over 115 one-to-one meetings that took place.

The driving forces that helped shaping success. High-ranking government representatives, including Jane Owen, Her Majesty’s Ambassador to the Swiss Confederation and non-resident Ambassador to Liechtenstein, Catherine McGuinness, Chairman of the Policy and Resources Committee, City of London, leading Swiss financial representatives, such as Jos Dijsselhof, CEO of SIX,  Switzerland's principal stock exchange, Noel McEvoy, Director Department for International Trade and the Scottish Development International for Switzerland and Liechtenstein, as well as senior representatives of the British Embassy Berne and the British Swiss Chamber of Commerce, were present and played a key role. Why do such events generate such great interest? As Jos Dijsselhof stated, the anwer is simple: because together we are stronger. Such strong platforms stimulate new business relationships amongst participants, resulting in job and wealth creation in Austria, Switzerland, Liechtenstein, and in the United Kingdom.

Is the current political turmoil a threat?

SIX’s CEO Jos Dijsselhof clarified early on in his speech that “Despite Brexit and the renegotiation of the terms of UK’s relationship with the rest of Europe, the bond between UK and Switzerland remains strong. The UK remains a leading center for FinTech in Europe. In 2018 alone, it attracted GBP12 billion of investment—of the respective EU total of GBP20 billion. At SIX we are predestined to play matchmaker in FinTech field. Finance and technology are in our DNA.”

What is SIX’s role? SIX is often defined as the backbone of the Swiss financial center “providing the technical infrastructure, running the Swiss stock exchange, as well as financial information, security, and payment services.” Among its shareholders and clients are 127 national and international banks. “It speaks for innovation, efficiency, stability, and security in the financial sector.”

What about Brexit? Jos addressed the topic in reassuring but careful terms: “what we do know is that with the UK's exit from the EU, Europe and the UK likewise face significant challenges – in both political and economic terms. We are discussing these challenges of Brexit, the risks – as well as the opportunities – for the financial industry, at length here with our peers in Switzerland. What remains undisputed is that the UK and Switzerland are significant economic and trading partners. If I were to quote just one figure, it would be this: each day there are over 80 direct flights between Switzerland and the UK.  Both countries benefit immensely from these close relations. Swiss companies provide around 93,000 jobs in the UK, while British firms account for about 27,000 jobs in Switzerland.

The UK and Switzerland are also investing in each other. Direct investments run into dozens of billions of Swiss francs. Swiss banks play an essential role in London's financial industry. Market access to the United Kingdom is vital to the Swiss financial market infrastructure. SIX generates up to 80% of its income in the area of trading with downstream segments (clearing and settlement) in European countries, particularly in the UK. “All areas that SIX does business in have offices in London; our stock exchange works closely with London's stock exchange and many other companies in the UK. All these touch points make the need for a good relationship evident, as it enables us to share knowledge, establish partnerships and build on each other's strengths.”

This means that significant disruptions must be avoided and that UK and Swiss financial service providers need to be able to continue doing business after Brexit in the same way as before. In a first step safeguarding the status quo and legal stability is essential.

Why Switzerland? Switzerland is to a certain extent destined to innovate. And it does so very well: Global Innovation Index named Switzerland to be the most innovative country in the world, not once, but seven times in a row. Many CEOs talk about the importance of innovation, but do they walk the talk? What are they doing in specific terms?

 How is SIX driving innovation? SIX has recently launched a venture fund worth 50 million Swiss Francs - around 38 million Pounds. The aim is to promote innovation in the Swiss financial sector. The Innovation Team is developing services for shareholders and the Swiss financial center. 

Let’s talk societal impact. “Our noblest task as entrepreneurs is to bring people together – across all cultures and languages, across all borders, despite potential political difficulties.” concluded Jos Dijsselhof.

Business does not divide people; it unites them. It invests in innovation and helps to ensure that new ideas spread around the world. Ideas that benefit as many people as possible.

What is the current status quo of the relationship between Switzerland and the UK ?

A very interesting update came from Noel McEvoy, Director Department for International Trade, who confirmed how vital is assuring continuity, to ensure this, only last week 5 agreements were signed while all efforts are being made to keep the dialogue going between the two largest financial centres in Europe, such as London and Zurich.  “Both nations are keen to grow and collaborate to ensure increased prosperity, and there are dialogues taking place on mutual market access.” he confirmed.

 Continuity and EU. At present, relations between Switzerland and the UK are largely based on the bilateral agreements with the European Union, which will cease to apply to the UK after its withdrawal from the EU. In preparation for exiting the EU, the UK has initialled five bilateral continuity agreements with Switzerland, covering trade, citizens’ rights, non-life insurance, land transport and air services.

The bilateral continuity agreements replicate the existing EU-Switzerland arrangements as far as possible and will come into effect as soon as the implementation period ends in January 2021, or on 29 March 2019 if the UK leaves the EU without a deal.

Panel 1: New Finance: How customer demand made it happen , with Stephen Ingledew, CEO, FinTech Scotland, Katharina Bart, Senior Contributor, Finews, Gavin Littlejohn, Chairman of FDATA Global and Convenor of the Fintech Stakeholder Group of the UK Open Banking Implementation Entity, Keith Phillips, Executive Director, The Investment Association, Michael Coletta, Blockchain Developer Emerging Technology Lead, London Stock Exchange Group and moderator Manuela Andaloro, CEO, SmartBizHub

How do we keep driving sustainable change?

One of the key discussions that took place on stage saw an incredibly knowledgeable line-up of top experts in their respective fields, such as Stephen Ingledew, CEO, FinTech Scotland, Katharina Bart, Contributor, Finews Senior, Gavin Littlejohn, Chairman of FDATA Global and Convenor of the Fintech Stakeholder Group of the UK Open Banking Implementation Entity, Keith Phillips, Executive Director, The Investment Association, Michael Coletta, Blockchain Developer Emerging Technology Lead, London Stock Exchange Group.

The goal of the panel was to portray the new financial landscape, acknowledge its driving forces, such as customer demand and client savviness, and discuss predictions on themes such as blockchain, international payments, machine learning, Internet of Things, and AI.

Q. Stephen, as CEO of FinTech Scotland, if you look at the FinTech ecosystem, at the fusion of financial services and technology, what do you think it can deliver from a social and societal impact perspective, in the short and long term?

A. Fintech is a movement, economic and social, it is vital to access new consumers who may not have been served in the past. It brings a diverse range of societal benefits, inclusion, and diversity.

Q. Katharina, customer demand seems to have shaped the industry. How do you see the role played by women and younger generations in finance? 

A. SRI (sustainable and responsible investing) and women are the Holy-grail in FinTech. Another aspect is diversity and inclusion, some way to go but over the past couple of years we have witnessed positive change and increased awareness. Another aspect is the fragmented provision of services in FinTech. It is a fast moving sector and trends change quickly, the new generation should not be seen as disloyal, they are simply savvy, choosier and more sophisticated.

Q. Gavin, in Switzerland, historically a conservative financial centre, the adoption of open banking has so far been very limited. How do you think open banking will benefit society as a whole and solve the ever growing challenge of complexity, when it comes to having access to the right product or solution at the right time, for example?

A. In a complicated product, a simple product is waiting to come out. Complexity drains the UX of benefits. Open Banking is a waypoint to further opening of the financial system. In my opinion pensions will next on the agenda. Collaboration is vital, it enables the industry and leads to enabling enabling technologies.

Q. Keith, if we think at the FinTech applications across the whole value chain, where do you see the most significant disruption coming from? 

A. The investment association is focused on the buy-side in FinTech, RegTech and WealthTech. Social mobile tech will likely be a major disruptor. A cluster of FinTech is focused on data, possibly a wave of disruption from that front too.

Q. Michael, what do you envisage for the future of FinTech? Where will real disruption (if at all) be coming from?

A. In terms of disruption, blockchain is not as great as is often made out to be. Disruption occurs in financial services as part of a complex ecosystem. Could a FinTech really disrupt and displace a large infrastructure player? Maybe but unlikely.

Q. When will FinTechs be judged like the large established players?

Gavin: It is a fundamental shift, they will be judged differently as per the current environment.

Q. Is it fair to judge the customers as loyal or disloyal? Were they ever loyal?

Katharina. Yes, they are simply savvy consumers. A semantic issue. Personally, I have been looking for a new bank for 18 months—still looking. Am I disloyal? No.

Gavin. Inertia Tax comes to mind, we should be looking at how to reduce the inertia tax (extra costs incurred and months spent looking for a different solutions) and friction.

Q. There seems to be a lot of energy and excitement around Open Banking. How do you measure the success of OB (since launching 12 months ago in the UK)?

Gavin. It is a process that will accelerate over the next 12 months. The shift to APIs is increasing in speed, so API growth will be a measure.

Panel 2: Is work working against us? Establishing new role models: Women in New Finance , with Catherine McGuiness, Chairman of the Policy and Resources Committee, City of London, Maria Leistner, Group Managing Director, General Counsel at UBS, David Bundi, Head RegTech, PwC Legal Switzerland, Angela Yore, MD & Co-founder, SkyParlour, Petra Arends-Paltzer, Founder, Swiss Legal Tech Conference and Manuela Andaloro, CEO, SmartBizHub.

In the early afternoon we were joined by an incredible group of change-makers who represent and stand for a new identity of leadership: I had the pleasure to discuss the future of work and the importance of raising awareness on different role models with Catherine McGuiness, Chairman of the Policy and Resources Committee, City of London, Maria Leistner, Group Managing Director, General Counsel at UBS, David Bundi, Head RegTech, PwC Legal Switzerland, Angela Yore, MD & Co-founder, SkyParlour, Petra Arends-Paltzer, Founder, Swiss Legal Tech Conference.

What is the status quo when it comes to women in finance and role models. Is work working against us?

Of the CEOs who lead companies on the 2018 Fortune 500 list, just 24 are women. That translates into a 4.8%, down 25% on 2017.

Why? Increasingly research suggests that one of the key reasons why women do not rise to the top in the same numbers as men is due to systemic barriers, funneling one particular type of person to the top, and that is not usually a woman.

Because of this, the focus should not be on integrating into a not-so-good system, but on transforming it and improving it. This is where often initiatives such as “lean in” leave many women wondering, should we lean into a system that is entrenched in a working world that’s outdated, limited and controlling, or should we instead go deeper and work on changing the culture?

New role models are crucial to break the cycles of outdated cultures, inspiring women and men to a new identity of leadership, one that leverages skills such as collaboration, empathy and trust, helping younger generations of women and men to rise to a new type of leadership, one that doesn’t take only one form.

The FinTech scene has gained increasingly attention over the past two years, its evolving trends seem to foster a culture of gender equality and to act as a catalyst for diversity.

Today in both Switzerland and in the UK, the percentage of senior women in Tech and Financial services, sits between 15% and 20%, and a July 2018  research by LendIt on women in FinTech found that:

1.         Average percentage of senior women employed at FinTech companies is 37%.

2.         Average percentage of women in the C-Suite at FinTech companies is 19%.

Better, but still not shifting the needle. And yet, the impact of women on the financial services industry and FinTech is more pronounced than in others.

Because organizational leadership often strongly influences product development and overall customer experience, FinTech companies with women executives are better positioned to respond to the needs of female customers, a major market segment with potential for growth that is frequently underserved by financial services providers.

So, is it possible that the so called “new finance” is helping to shape a new culture around the future of work, and having a significant impact on the success of the industry itself?

Panel discussion with (left) Manuela Andaloro, Catherine McGuinness, Maria Leistner, David Bundi, Angela Yore, Petra Arends-Paltzer

Q. Catherine, you chair the committee responsible for policy, strategy and direction for the City of London Corporation, you regularly meet with government and financial representatives from across the UK and the EU. What is the gender ratio at senior level you see in your role and also, if we look at the blending of work and life, it has never been more apparent than in today's always-connected and always-on culture, do you think the new generation’s quest for a better “work-life integration” will help changing the status quo permanently in the long run?

A. In the Square Mile we have 37% of women in the workforce. This needs to improve. The current mentality is still all “suits and ties”. However the millennials and younger generations are changing this by demanding flexible working patterns, and bringing even greater diversity. As a woman in my role: when I first started there was pressure for me to represent diversity, be a role model. This is not what I wanted, I was there for my role, irrespective of gender, it didn’t feel comfortable to be an advocate initially, but then I soon saw evidence in the workplace that women really were not being treated equally to men, when it came to promotions for example, so I decided I would step in and stand for gender equality and diversity.

Q. Maria, when it comes to career and employment, women and men increasingly want to be inspired by real life leading examples, in an effort to implement a permanent cultural change. There is however a lack of leadership models that stresses women’s hearts and minds when pursuing a career. What role do you think the cultural element and the belief that “they will not manage it”  plays in convincing many women to avoid the experience of motherhood, or to drop their careers?

A. Countries are different in what is culturally acceptable. I lived in the UK for a long time and have recently moved to Switzerland. There is no perfection anywhere on the topic if equality and diversity, however there has been some improvement in flexibility for women in leadership positions. The stats mentioned with regards to women in FinTech are very disappointing.  Technology itself and the tech world are a potential driver of change of diversity: it is a chicken and egg situation. Diversity and inclusion can significantly improve the FS sector. If we don’t change how we work, we won’t be able to address the needs of clients. Like Catherine, initially I resisted the role model label for many years, then came to realize that it is a duty, helping to change the status quo and raising awareness on the unconscious bias deeply embedded that plague the workplace and its culture.

Q. David, If what we read and hear about millennials holds true, they don’t seem to be driven by the thought of working hard for the next 40 years and then retiring. Rather, they are driven by the idea of building a life and career that can withstand the continuous reinventions that the 21st century will require. They take a lot of criticism in the media for sporting a sense of entitlement, but seem to have interesting strenghts such as embracing change, especially technological, wanting to work smarter, not harder, embracing their passions, professionally and personally. What do you think we can learn from their stance on work and life and how can we implement it sustainably in our working cultures?  

 A.     A very interesting quote of Steve Jobs that comes often to mind is “You need to find what you like.” The workforce of the future and the culture we create and bring forward must focus on how we can complement each other. The key is, what makes each and everyone special? The younger generation should be credited for their willingness to try and test. We should be looking for and hiring employees who don’t replicate what we do. The digitalization of business has changed the nature of how we work – and, accordingly, what skills we need to succeed, so even more so, the vital skills in the future will be around the human element and EQ. Personally I have a very good experience with diversity: it simply works and it impacts positively the business and its bottom line. We as panellists, as advocates, need to be bold and supportive to push diversity.

Q. Angela, while the world is a considerable distance away from achieving complete gender equality, the Nordics have emerged as a front runner. When people think of countries like Sweden, stylish designs and minimal lifestyles often spring to mind, but gender equality is one of the cornerstones of modern Nordic society. These countries continuously stand out in the Global Gender Gap Report, which measures equality in all areas from education, employment to economics. Out of these countries, Finland has the largest female labour-force participation, as 83% of women, including mothers, work full time. What do you think has worked well in these countries that could be replicated across Europe? Also, do you think quotas play a part in their success?  

A. Nordics have it right: The culture is there, policies are strong and enabling. Both elements are required. They are not present in a similar way in the UK, or elsewhere in the EU.  In the Nordics for example, 10% of income is spent on child care, that percentage increases to 35% in the UK. Culture eats strategy for breakfast. As CEO of my own company, I now get to make decision and stand for what I believe, but initially as senior woman in the tech corporate world it was tough, when I announced my pregnancy to my then boss, his comment was: “ Oh dear, Angela, this changes everything”.  I will let you digest that. I set off and started my own business and have never looked back. My advice to women, and men, who don’t fit in outdated cultures is simple: Be bold. It usually pays off.

Q. Petra, if we look back at 2008 and the financial crisis, a famous statement of Christine LaGarde (Managing Director and Chairwoman of the International Monetary Fund) still holds true: “if it had been Lehman Sisters rather than Lehman Brothers, if would still be here”. That obviously points at the fact that women are normally more risk averse than men,  however, that often has an effect on their careers and the risks they take, not going for “that” job or not doing really positioning themselves and their value in their organization.  What are the key drivers for change?

A. The key driver will be a change in client demand: Clients will seek out companies with diverse workforces. We have an incredible enabler these days: technology. Technology will work towards gender equality. In all this, role models will be vital to inspire women and men. Another vital element is to step out of the comfort zone, to ask, to demand equality. Self-confidence to genuinely establish  themselves is a key factor, and so is genuine collaboration among women.  

Q. How does performance affect the diversity drive?

Angela. The gender pay gap is disastrous. Take BBC News presenters: same role, same experience, male TV anchors earn 30% more than their female counterparts. What is the rationale?

Q. How do you feel about the pressure on males to hire female or face discriminatory allegations?

Maria. It is about the quality, of course performance is critical, pushing for diversity to get things moving more quickly might lead on certain occasions to errors. Personally, I am in favour of quotas. 10 years ago I was against but the speed of change on the gender equality topic has been too slow not to resort to quotas.

 Catherine: I am personally in favour of targets rather than quotas. But targets with teeth. Culture is what we need to address most of all.

Manuela Andaloro, Maria Leistner, David Bundi, Catherine McGuinness, Angela Yore, Petra Arends-Paltzer

Targets with teeth. When discussing the importance of gender equality in the workplace, concrete rather than glass ceilings, and bias embedded in cultures that belong to history books.  

Corporate culture creation, improvement, and change rests with the organization's top leaders. Through their actions, communications, and the values they embody, leaders set the example for others to follow, and the tone for what is important and valued in the organization.

The good news is that CEOs and supporting executives across the globe are realizing that corporate culture is not simply a feel-good catch-phrase, but rather the linchpin to an organization's overall performance.

Once CEOs embrace their role in establishing and leading the corporate culture, the sky is the limit for both personal, organizational and societal potential.

M.

(info@smartbizhub.com)

Impact: shaping, and throwing your heart into it.

Sociologists tell us even the most introverted of people will influence over ten thousand others in an average lifetime. How many people we have knowingly and unknowingly influenced in our lives so far? How can we best leverage on this power? We hear daily about leadership, and yet we are left wondering who are the real leaders?

Clockwise, Mariarosaria Taddeo, Riccarda Zezza, Manuela Andaloro

Riccarda Zezza, CEO of Life Based Value and Manuela Andaloro, CEO of SmartBizHub and international blogger, joined forces to create a series of interviews aimed at portraying impact makers and leaders who are driving change and innovation worldwide, and in doing so, are raising awareness on a new successful type of genuine leadership. 

New role models who base their success on strategic 'soft' skills, such as empathy, creativity, communication, those incredible few who spark energy and strength as they positively impact others and society.

(Interview also published in Italian on www.maam.life)

After a very successful first interview with Chiara Condi (“Women, they should stop asking what they’re worth”), we continue this month with an open discussion with Dr. Mariarosaria Taddeo, Researcher Fellow at the Oxford Internet Institute, University of Oxford, and Deputy Director of the Digital Ethics Lab, on her work, her values and commitment to Artificial Intelligence and its applications to a vast variety of sectors.

1.     Mariarosaria, I would like to reveal a few aspects of your professional life and the impact you have had. Shall we start with who is Mariarosaria today?

Once I read Italo Calvino’s lecture ‘On Lightness’. I copied a passage that I keep framed in my home office: “The sudden agile leap of the poet-philosopher who raises himself above the weight of the world, showing that with all his gravity he has the secret of lightness, and that what many consider to be the vitality of the times—noisy, aggressive, revving and roaring—belongs to the realm of death, like a cemetery for rusty old cars”.

It must have been 15 years ago when I first read that book. Sometime I think I have managed to achieve that lightness, but then it does not take long for me to realize I am still not there. That lightness requires constant training. It comes with a proper understanding of the world and of human nature. So I continue to strive for that lightness and to gain a better understanding of the order of the world.

More mundanely, I am a scholar. As a scholar I have passion for understanding things and solving (conceptual) problems. I like analytical thinking, precise language; a certain order in the way things are done. I am also a woman, which to me means braveness, smartness, determination, integrity, irony, elegance.

So, today, I am someone who is working to become a better scholar, a better woman, a better person; some days it looks like I succeeded, some other days less so.

2.     When I say work-life balance, what do you envision?

I envision fun. I do not see a real distinction between work and life. The idea of balance implies a trade-off, as if one (work) came at the expense of the other (life). This is unacceptable. It should not be the way in which the two are related. I am committed to the idea that our jobs should be part of our plans to spend our lives well, not a sacrifice to go through life.

I do the job that I have wanted to do since I was a child. I enjoy it tremendously: it enriches my life, it enables me to express core aspects of my personality, it keeps my curiosity alive and gives me the opportunity to grow as a person. At the same time, I am fortunate enough to have wonderful friends and family with whom I can share my passions, my ideas, my doubts and this helps with my work.

I realize that this is not the case for most of us. And I believe that it is important to change this. We need to have in place the right infrastructures, support, means, and leaders to prevent work from becoming alienation; that the hours we spend working do not become time subtracted from our lives. It is a complex matter, one that requires urgent and careful consideration.

3.     Where do the synergies between your professional and personal goals lead you daily?

Inevitably, personal and professional lives feed each other. Together they always take me on new adventures. Some days feel like being caught between Scylla and Charybdis; one needs tremendous skills to navigate through a rough patch of water and have a clear sense of the hazards therein. Other days are like having just passed Scylla and Charybdis; you look back and try to see what went well and what did not go well but with a sense of achievement. Some other days are like being at the mouth of the Straits of Messina and preparing for the challenge. The lesson learned from these ‘adventures’ is exactly this: there are days in which the risk is either ahead, past or in front of us and it is important to remember this all the time and not to lose perspective.

4.     Why does management have such a bad reputation in some corporations? If it is because of bad management, how does one not become one and how can you thrive among them?

I work in academia so I am not sure about management in a corporation. I’ll answer your second question, ‘how not to become a bad manager’, which seems more broad. From my experience it is important to reach a balance between internal and external factors.  

Internally, good managing rest on the ability to build the right team. This means getting and maintaining the right talent and resources and then carefully balancing the inevitable social and political dynamics that will emerge within the team. It is also about making sure that the ambitions of the leader are or become the ambitions of all the team members, making sure that the success of the team means the success of all its members. Finding the right equilibrium between managing and empowering the team members is also crucial. Externally, a good manager has the responsibility to understand the bigger picture, to foresee risks and emerging opportunities and to get the team ready to mitigate the former and harness the latter. Not an easy task.

University of Oxford

5.     What is the biggest professional mistake women are still making – what should we stop doing?

There are two mistakes. The first one is, fortunately, increasingly less common, and it is to forgo ambitions or goals that appear to be at odds with cultural norms (for example, some jobs are male-dominated so women are less encouraged to undertake them) or at odds with one’s personal aspirations (starting a family, for example). To sacrifice these ambitions before even trying is detrimental to oneself and to other women. It is like a self-imposed censorship, with the caveat that it also harms other people. It is always worth trying, trying harder, and perhaps even failing.

The second mistake is making it all about being women and allowing it to be a relevant factor in career choices, more relevant than skills, background, experiences, more than one’s plan and ambitions. Do not get me wrong, protecting and fostering diversity in the work place is crucial. Ensuring equality is fundamental. I believe that it is everybody’s responsibility (women and men) to ensure that diversity and equality are respected. But this is different from proving one’s ability and value in the workplace which should have nothing to do with gender. We, as women, need a fair playing field not a different one to show that we can be an asset in our workplaces. Confusing fair with a different is dangerous and may only bring us more discrimination.

6.     Will the millennial generation be a very different kind of leader?

To some extent yes. The values of this generation seem to be more aligned with social and environmental sustainability. At the same time, leaders also have to deal with external factors (economic, political, technological), so these values will shape future leaders to the same extent in which they will shape future societies.

7.  There is a large debate going on around the future of work, talent retention, women and millennial’s values. What do you think the future holds for old-school organizations?

Millennials are the biggest generation in history. They have strong values and are growing and getting ready to take over a leading position. Old-school organizations will have to adapt to new models of management if they want to retain resources and talent when competing with more modern organizations. Old-school management will face pressure from their competitors and hopefully also from laws and regulations which will increasingly foster values such as diversity, equality, and environmental sustainability.

8.  What’s the most important business or other discovery you’ve made in the past year?

Three perhaps. One is a paper published in Nature “Regulate Artificial Intelligence to avert cyber arms race” (with Luciano Floridi), in which we described the next wave of cyber conflicts and the risks that they may pose for international stability. The second is related to the first one and is a theory for deterring attacks in cyberspace. The theory has been published in Strategic Analysis Hybrid CoE – The European Centre of Excellence for Countering Hybrid Threats and it is likely to fill an important gap in our understanding of cyber conflicts and ways to avoid their escalation. The third one is broader and it is not my own discovery but it is equally important. It is the research and achievements of the Digital Ethics Lab. The group has been very successful. Its success makes me tremendously proud and it is a constant source of inspiration and motivation for me

9.  How do you recharge your energy?

It depends on the moment: trips to Puglia, dinner with friends, a conference call with my sisters, a good book, horse back riding, even clubbing sometimes, are at the top of my list.

10.  What drives you at the end of the day?

It is the passion for understanding things; in finding the truth; in solving a problem but also in getting better at my job and growing as a person. As a scholar, the ambition is to advance human understanding even only a bit and to use this understanding to shape our world. In my case, this means better understanding the dynamics of the impact digital technologies have on our lives and environment and shape this impact so that it will foster human flourishing and respect for our environment.

11.  What does impact mean for you? How would you describe the impact you have had on people and on the world?

Impact is about shaping: offering an approach, a model, a way of thinking or doing things that others find insightful and start using. As a scholar my impact is perhaps mostly related to the way we think about cyber conflicts and the way we should regulate them. My research contributed to a shift in the way we deal with this phenomenon from an old approach based upon analogies with conventional conflicts to a new, original approach based on a deeper understanding of the nature of these conflicts.

I may also have an impact as a lecturer and mentor by shaping the work of some of my students or even just the way they approach some aspects of their future work.

 12.  A few final words of wisdom and tips for our career-oriented impact-makers, professionals and entrepreneurs alike, women and men?

I can only share the same lesson that was passed onto me when I started working in this area, “throw your heart into it”. Once you make a decision, risk it and commit to it. I should also add that one should be aware that very rarely a single decision can be made which inadvertently makes other decisions, too, which can subsequently impact other aspects of life and the lives of other people. This is why making the right decision is not easy at all; such is life.

—-

This interview is a collaboration between Manuela Andaloro and Riccarda Zezza.

New finance: how customer demand made it happen

Article by Manuela Andaloro , with the contribution of Laura Prina Cerai, Senior Investment Advisor, Altrafin AG, and Vega Ibanez, former Senior Project manager, Julius Baer. Published in Focus ON’s cover story, 18th December 2018, download original article in Italian here.

The financial services industry is at a turning point – it has to reinvent itself or it will be reinvented by other players.

Increasingly start-ups and IT firms are attracting a wide variety of new clients interested in specifically tailored services, making it daily more challenging for the entire financial sector to compete and remain engaged.

If we look at access to financial data for example; within the space of just a few years we have gone from making deposits and transactions at bank counters and from phone calls to our client advisors to discuss investments and market trends, to home banking, mobile banking, online trading, AI investment platforms, and a wide variety of valid offers via different applications accessible from our smartphones.

It seems that the industry is changing dramatically directly in response to the demands of customers, who want flexible, new, digital and easily accessible financial service products.

Those who fail to adapt are lagging behind, especially players, banks and institutions who don’t understand the new needs that the ongoing revolution has brought to light. We are witnessing a crucial time of change and it’s only just beginning. 

But what led to such an acceleration and to the current financial revolution? 

To understand the present we need to go back to the financial crisis of 2007,  which we also discussed in a recent post on financial crisis and economies. 

How the FinTech world was born

During the last financial crisis of 2007-2008, plummeting share prices, bankruptcies, mergers and restructuring resulted in millions of job losses and triggered the beginning of a fundamental change in the banking sector. Regulators became determined to prevent the actions of one or a conglomerate of a few large investment banks (too big to fail) from hitting the economy and the public purse so hard (hence avoiding further possible bail-outs relying on taxpayers' money).  Regulation in the sector has multiplied exponentially and has catalysed most of the direct investments of banks in the last decade at the clear expense of the budget in innovation and improvement of services.

The emergence of new small banks in addition to the big investment banks coincides with a new approach to the services offered: the emergence of the so-called FinTech - new digital technologies in the financial sector - application-based technology that automates most banking processes and offers easy online access and self-service platforms to customers. Today, entire banks are built around a mobile application.

The FinTech industry is seen by traditional banks as an opportunity to participate in the development of the financial sector without the need to invest in in-house development. With thousands of job losses in the banking IT sector in the last decade and the priority given to adapting to regulatory pressure and strengthening budgets, FinTech has developed mainly through outsourcing, driven by the demand of customers disillusioned with and dissatisfied by traditional banks, who were seeking a greater choice of digital services.

This perfect storm led to the rapid growth of FinTech, attracting third-party investments and making it a major player in the banking industry with a customer base that includes some of the world's largest companies. One example is US investment bank JP Morgan Chase, which spent $9.5 billion on IT in 2016. Of the total expenditure, approximately $6.5 billion was spent to support existing IT, while the remaining $3 billion went to new development initiatives, of which $600 million in FinTech.

The incumbent banks have to cope with a crisis of the traditional models of bank and respond to the needs of an increasingly digital consumer, developing more personalised offers and focusing on an omni-channel structure at the expense of the concepts of proximity and territory.

Start-ups and companies that were first to invest in FinTech have therefore gained a wealth of skills and business models that constitute the future of personal finance. And so the traditional banks have begun to opt for a path of collaboration with these newcomers via supporting hubs, financing partnerships or direct acquisitions.

According to Price Waterhouse Coopers' 2017 figures (PWC source study), venture capital investments in the FinTech sector reached a total of $22 billion in 2016. The geographical composition of the capital raised shows that most investment has been concentrated in America and Asia. In Europe, although London has historically been and continues to be the European capital of FinTech, investments in 2016 fell by 34%, mainly due to the uncertainty surrounding Brexit. The slowdown in FinTech investment in the City is offset by the emergence of new ecosystems in Germany, France, Scandinavia and Israel. 

Although Italy is currently excluded from the main roles in the FinTech scenario, with no start-ups in the world top 100 indicated by KPMG, it invested a total of 33.6 million euros in 2016, up 77% on 2015 (source startup Italia). Most of the start-ups and investments in FinTech in Italy are concentrated in the mature sectors of asset management, retail banking (traditional payment transactions), insurance and peer-to-peer lending (P2P - i.e. direct private loans, without bank intermediation). Keeping up with the times of change, universities now offer FinTech courses in partnership with local start-ups.

The age of challenger-banks

In response to the unstoppable wave of consumer demand, Fintech players are adapting daily to provide all kinds of solutions for private and business customers, globally. Numerous banks and institutions no longer position themselves as "primarily online” and are now "only online".

From deposits and credit lines to payments, consumer and business loans, IMT, institutional investing, personal finance, the new generation of Fintech players is now working more and more strategically with artificial intelligence to digest and analyse large amounts of transactions and behavioural data, to gain a deep understanding of customer needs and match growing expectations.

Payexpo 2018, London. Panel with Chloe Templeton, Megan Caywood, Manuela Andaloro, moderated by Angela Yore

An interesting case is the steady success of the English "Starling Bank". Recently I was invited to talk about my experience in finance at a major event on payments and Fintech in London. One of the speakers on stage with me was Megan Caywood, Chief Platform Officer of Starling Bank (soon to join Barclays as Head of Customer Experience), she used an interesting definition to the describe the bank she helped create: "the digital, mobile-only challenger bank".  A bank that has at least a couple of elements that break with tradition: it’s a challenger bank, so a fully digitalised institution with a very light cost structure, and it’s led by a woman, CEO Anne Boden.

Brexit may be changing the financial geography of Europe, but, with best practices like those listed above, at the moment London remains a point of reference for innovation.

The other SPHERE OF “new finance”

2019 will definitely bring further use of automated technologies, further post-GDPR data protection policies, and increasingly strong content control and demands from an increasingly digital workforce and clientele.

We have so far analysed part of the "new finance", and of the response to consumer demands brought by the FinTech world.

There is another very interesting growing reality that has been competing for attention with the FinTech world and similar organisations operating in the world of crypto and blockchain technologies for some years now. The world of sustainable investing.

The so called “new finance” landscape seems increasingly polarised, driven by the forces shaping Fintech on the one hand, and by the need for sustainability on the other.

While the FinTech world comes from an evolution of consumer needs, regardless of age and school of thought, and from the response to post-credit crunch regulatory changes, the other sphere of new finance clearly seems to come from strong demands and needs of younger generations and women.

The millennials - and looking at figures, also increasingly women, no matter which generation they belong to, have been asking loudly for sustainable responsible investments for several years now.

Millennials, most of whom have grown up in the digital age, are - unlike their "baby-boomer" parents - more attentive and more exposed to the evils of the world, and more inclined to use investment strategies to remedy them.

Research shows that “boomers” see sustainability and investment as two separate universes, while millennials struggle to understand how to separate the two.

This generational change already seems to be visible in universities and many business schools report that demand for ESG (environmental, social and governance) investment courses is increasing and they are often overcrowded or overbooked. 

"In the nineties, letters of application to Stanford with references to the willingness “to alleviate poverty” in the world were seen as "soft", reports Matt Bannick of the Omidyar Network, a company for impact investments, but today over half of the applications to Stanford Graduate School of Business mention the Institute's commitment to social development goals”.

Bill Gates, Melinda Gates, Warren Buffet

The ultra-rich paved the way. In 2015, a group of millennials, some of whom belonging to the Ford, Rockefeller and Simmons families, launched "The ImPact", a network which aims to create "measurable social benefit" through its investments. Positioned as a generational response to the "Giving Pledge" initiative jointly launched in 2010 by Bill Gates and Warren Buffett, supported by over 125 signatures, each with an average wealth of $700m. Since then, there have been countless similar initiatives, and “Generation SRI” was born.

It's not just the millionaires who are succeeding in this context. It’s a well-known fact that the generation of millennials is less wealthy than that of their parents, yet the older “millennials”, who are almost forty and close to peak-earning, have clear demands and preferences. Over the next two decades, the boomers will pass on their fortunes, worth trillions of dollars - the largest transfer of wealth ever recorded - leaving the millennials quickly in control of about $24trn (Deloitte estimates). Very few people will enjoy the sumptuous pensions of their parents and it is estimated that they will be very determined about how their reduced pensions will have to be invested.

The millennials have experienced the financial crisis, so they are naturally suspicious of traditional institutions. Some people call them presumptuous, because they seem to want to change the world. But is this really presumption or is it perhaps necessity?

In a survey, the American company Morgan Stanley estimated that 75% of the millennials interviewed think that their sustainable investments will affect climate change, in contradiction with 58% of the entire population.

Millennials are also more likely to check the packaging of their purchases for example, and to choose sustainable products, and like all children, they try to influence their parents.

Technology, AI, robo-advisors and the likes, will amplify this force of new finance thanks to increased accessibility. As discussed in a previous post, players that will manage to engage with their audiences successfully will leave the competition at the starting blocks.

Technology leaves no room for impostors. Information on the positive or negative impact of any company will be more and more transparent and available to a growing clientele. Players who are not genuine in their approach to sustainability will find it difficult to hide among what’s on offer, unmasked by algorithms.

Re-writing the basics for a BETTER future

In truth, almost every investment has a social or environmental component. Technology will allow us to create more targeted offers for customers, aligning products, funds, ETFs and derivatives, with sustainable objectives, such as the 17 UN SDGs, the social development goals of the United Nations, and will help measure the impact of our work and our investments, and to ensure increased transparency.

The recipient, customer, consumer has shaped and created the offer. We now own the elements for a better future, brought on by accessible high-level information, slow but steady cultural change and improved awareness of the need for equality, and by a generation that is keen on sustainable approaches towards the way we pursue our businesses daily.

If properly leveraged, technology will enhance information, culture and understanding on the one hand and, on the other, the wise positioning of dynamics, market performance, trends, and the impact that each of us can have on their own future and on the future of our society. 

M.

(As published in Focus ON’s cover story, article by Manuela Andaloro for Focus ON, 18th December 2018, download article in Italian here)

Women? They should stop asking what they're worth.

Clockwise: Chiara Condi (left), Riccarda Zezza, Manuela Andaloro

Riccarda Zezza, CEO of Life Based Value and Manuela Andaloro, business strategist and international blogger, interview Chiara Condi, Italian-American based in Paris, thirty year-old founder of Led By HER , a non-profit which empowers women who have suffered from violence through entrepreneurship. The organization gives different forms of entrepreneurship a voice, and raises a new form of awareness about gender based violence.

(Interview also published in Italian on StartupItalia!)

——————-

Sociologists tell us even the most introverted of people will influence over ten thousand others in an average lifetime. Can you imagine how many people we have knowingly and unknowingly influenced in our lives so far? How can we best leverage on this power? We hear daily about leadership, and yet we are left wondering who are the real leaders?

Riccarda and Manuela’s idea is to create a series of interviews aimed at portraying impact makers and leaders who are driving change and innovation worldwide, and in doing so, are raising awareness on a new successful type of genuine leadership. 

New role models who base their success on strategic 'soft' skills, such as empathy, creativity, communication, those incredible few who spark energy and strength as they positively impact others and society.

We start with Paris-based Chiara Condi, Italian-American, thirty year-old founder of Led By HER , a non-profit which empowers women who have suffered from violence through entrepreneurship.

Q. Much has been written about you over the years. Today I would like to reveal a few angles of your professional life and the impact you have had. Shall we start with who is Chiara today?

A. I would say that I am at a crossroads of my life right now because I have spent the last ten years of my life working on gender equality and women’s empowerment issues and the last five years building up a nonprofit organization Led By HER, which carries out advocacy and programs for women’s entrepreneurship and women’s rights. This work that we have carried out on the ground over the years was very formative, it has given me new ideas and the willingness to do more. At this time it pushes me to advocate to try to change things on a new level through the visibility that I have gained.  It has provided me with new ideas and visions of what we can do that can make a big difference for women and now more and more I feel that it is my job to make those ideas heard. That is why I try to participate as much as I can in conferences, media and international dialogues, because I think that it is more important than ever to raise awareness around these issues.

Q. When I say work-life (balance), what do you envision?

A. I think that there is no perfect formula about how to divide time in your life.  The only thing that that has worked for me has been setting priorities and making each decision based on those priorities.  That way I never have to feel bad about the choices I made or about saying no to something. And I believe that instead of always quantifying the time we spend on things in our life maybe we should be qualifying it instead.  I do this in my own life by being fully present with whatever I am doing at the moment, whether that is work or my personal life. Even if it’s something small that I am allowing myself I enjoy it fully.  When I am doing whatever I am doing at a given moment in time nothing else matters. When I try to apply this all-encompassing rule to my life I see that I feel much more fulfilled.

“Make sure that the first person you serve is always yourself because that is the only way you will truly help others.”

— Chiara Condi

Q. Do you see any connection between parenting and management?

A. Yes I believe that good parenting like good management is all about leadership development. Your role as a parent is to develop your child into an independent free thinking adult who will do his best in life. Much in the same way in companies you foster people’s potential and talents so that they can be the best version of themselves.  That is when they will also give you your best. I also think that fulfilled individuals can become a company’s best asset.

Q. Who were or are your female and male role models, professionally?

A. I do not think I have formal role models, but I am very inspired by the women we helped through Led By HER because they taught me that whatever happens in life you can still show up and change your life. And if they believe that every day can be the start to a new life, then all of us should.  Whenever I think of them any excuse that I build up in my life not to show up falls to the ground.

 Q. Where do the synergies between your professional and personal goals lead you daily?

A. Embodying your own goals is an important aspect of success. I care much more than I ever did about that and how I treat myself and run my own life. Only once you achieve that equilibrium in your own life can you unleash the potential to carry out great things. And it is not about major things, but rather about how you show up in your life daily.

Q. How can women, and new leaders, pursue a different type of leadership, and avoid some of the pitfalls that bad managers – we’ve all had at least one! – make?

 A. One of the greatest qualities of the new leader is empathy. Understanding the people you have in front of you, their potential and where they want to be will enable you to make the best arise out of the people you work with. Great leaders see potential and work with it.

Q. What is the biggest professional mistake women are still making – what should we stop doing?

A. Not asking for their worth. I interviewed many women around the world and I realized that if there was a common denominator in their struggle it was credibility.  The truth is that while a man’s work is taken at face value, a woman’s work is not. Women expressed that they have to prove themselves and work twice as much as men to prove that they deserve something.  But we cannot stop there and surrender ourselves. Even if the world is this way and these are our circumstances why can we not work on being so aware of ourselves and know our own worth to claim what we deserve? Every time you are asking for that promotion or negotiating that raise do it, go for it, for yourself and for all women because it is time we teach the world what we are worth and not settle for anything less.

Q. Why does management have such a bad reputation in some corporations?

 A. If we are afraid of management it could be because we are associating it with an old style of doing things. I think that now more and more corporations are realizing that people are their first and most precious resource and that their biggest asset should be cultivating them.  I think the best survival skill in any environment is always to be yourself.  Whatever decision you make don’t make it come from your environment but from you, that is is the only way you will be OK with whatever happens around you.

Q. Will the millennial generation be a very different kind of leader?

 A. Yes I think we are moving towards a leadership of questions rather than a leadership of solutions. A good leader is someone who asks all the right questions, not someone who already knows the answers. Innovation has turned the world on its head because it has taught us that hierarchy does not exist. Good ideas can come from anywhere and the best leaders are those who will be able to seize things rather than impose them.

Q. There is a large debate going on around the future of work, talent retention, women and millennials values. What do you think the future holds for old school organizations? 

A. I had the chance of giving a conference about this lately in Cape Town for the aviation industry, which is an industry that faces great challenges in renewing itself for the future. There is potential for all industries as long as people’s voices are heard and they are included in processes. When people lose sense in work is when they feel that their work is disconnected from what is happening around them.  There is no such thing as an organization and its employees, they are just one---the organization is its employees and therefore they have to feel with every ounce of their bones that they are part of it.  That is what we all want, to be part of something greater than ourselves, and organizations that miss out on providing that sense of purpose will miss out of the future.

Chiara Condi at the OECD Summit Paris 2018

 Q. What’s the most important business or other discovery you’ve made in the past year?

 A. That nothing is permanent, that I am replaceable and not to be attached to any single outcome in life.  There is no single solution, but when I started I had very fixed measures of success.  When you do that it makes it impossible to just be happy with whatever is happening right now and to trust that even if something is different from what you expected it can still be great.  I also realize that sometimes you start someplace and then life takes you somewhere else, and I used to fight against that, but now I have learned to listen to it and to embrace it.

Q. How do you recharge your energy?

A. I never believed when I was younger that I mattered more than what I do, but now I do because I understand that is the only way to make a difference. You can only give fully from that place of abundance, so I try to create that for myself daily. It takes the form of daily yoga, pilates and meditation with visualization and journal writing. And then taking longer moments of distance from my work  through travels that nourish my soul. I love seeing what I have never seen before and it replenishes me entirely.

Q. What drives you, at the end of the day?

A. Feeling that I left the world a little better than it was yesterday. If I can say that to myself then I can sleep well at night.

 Q. What does impact mean for you? How would you describe the impact you have had on people and on the world?

A. I used to think that impact was a big word and impact meant millions of people, that everything had to be big to matter. Actually Led By HER taught me the opposite. Impact is much more about doing small things in a big way.  Impact is about the intention and magnitude with which you do every little thing-- and that is what will move mountains.  I learned that you change a world one person at a time and each of those small revolutions will foster others.

 Q. A few final words of wisdom and tips for our career-oriented impact-makers, professionals and entrepreneurs alike, women and men?

 A. Make sure that the first person you serve is always yourself because that is the only way you will truly help others.

This interview is a collaboration between Manuela Andaloro and Riccarda Zezza.

Financial crises: when communication and the economy let you down

It was the summer of 2007 and I was reading a copy of the Financial Times. My interest was combined with apprehension and expectancy.

Interest in the reactions of the world’s financial leaders; apprehension about what was to be the start of one of the biggest ever economic and financial crises; expectancy with regard to the major players in the western world: how would they announce what was going on? Which signals, which strategies (as much in relation to business as communications) would be implemented by governments, the financial world and the press to counter the imminent impact and consequent media, economic and financial carnage?

I didn’t know it at the time, but I was reading the first chapters of a disaster that had been on the cards for some time.

Ben Bernanke, the then chairman of the Federal Reserve, the US central bank, confirmed that the subprime mortgage crisis would be contained. Bush was giving out confused signals and the world was witnessing a gargantuan but clumsy effort to save the American financial system from collapse.

Europe looked on with growing apprehension. Not long after, its own economy would find itself in the middle of one of the worst recessions since 1930, with GDP forecasts of minus 4% in two years, the sharpest contraction in the history of the European Union.

“In the UK, the Northern Rock bank was forced to apply to the Bank of England for an emergency loan and ended up being nationalised to protect its solvency (and the deposits of its customers). Those panicking customers queuing up outside branches of the bank hoping to withdraw their savings became one of the lasting images associated with the financial crisis in Europe.

September 15, 2008, the day the 150-year-old Lehman Brothers declared bankruptcy. (CNBC)

In America, in the summer of 2008, the investment bank Lehman Brothers went into receivership (Chapter 11) after 150 years of business and following the credit crunch caused by the largest mortgage bubble in the history of the world economy. The mortgage institutions Fannie Mae and Freddie Mac, and the insurance company AIG, were saved by the government the week before, with tens of billions of public dollars.

Collapsing share prices, bankruptcies, mergers and restructurings caused the loss of millions of jobs, and a severe loss of confidence in the system, triggering a fundamental change in the banking sector. They also highlighted serious errors, shortcomings and gaps in the Western world’s information and communication system, which had failed.” (source: Laura Prina Cerai, Senior Investment Advisor, Altrafin AG).

The pre-Brexit beating European financial heart.

Throughout all this, during the summer leading up to the credit crunch, I accepted a role in the financial sector in London, taking the opportunity to learn all about the developing dynamics from the then beating European financial heart. This experience lasted over four years and was extremely instructive, strong and positive from many points of view.

Much can be said about those years in relation to governments, banks, the financial sector, the general public and the world of journalism.

A lot can also be said about the failure of the communication models of the time and the political and business dynamics still in place today.

Psychology and thought-leadership.

(Credits: frames from the film “The big short”)

Strategic communication is vital for industry and governments. It has to aim to convey not only their goals, intentions and strategies to stakeholders and society, but also to educate the general public. Acting as unbiased thought-leaders to the extent possible on certain topics and movements and working to reduce false information, fake news, speculation: governments and industry have a moral duty to provide context and clarity. By working together and keeping communication channels open with the media and with influencers, creating information channels of mutual trust.

The financial crisis didn’t just have disastrous economic consequences, it also negatively impacted the public's faith in the financial world, tarnishing its reputation, and in the media.

(Credits: frames from the film “The big short”)

Many critics at the time wondered whether financial journalists had done enough to dig down to the roots of the impending crisis beforehand, and at the same time, whether they had perhaps contributed to increasing public mistrust and anger. What went wrong?

Recently, in an interview given on the 10th anniversary of the peak of the crisis, Bill Emmott, editor of The Economist from 1993 to 2006, confirmed in a subsequent interview with the panel "Follow the money: how the crash of 2008 changed journalism worldwide”:

“The press had given alarm signals, but those signals were drowned by the media, which had increasingly turned into cheerleaders of the boom. In other words, they had strongly believed, as former IMF chief economist Ken Rogoff commented, "This time it will be different", deluding himself. And, unfortunately, the press is always part of this process. So I think the press was partly but not solely responsible for the crisis. It was part of the atmosphere of the times.” (ref. Journalism Festival)

The ability that was most tragically and dramatically lacking during the 2008 crisis was the ability to communicate - specifically, communicate the nature of the problem, what was at stake in terms of risks, and so why, in America alone, it was necessary to spend $700 billion of taxpayers' money to solve the problem.

Franklin D. Roosevelt

Franklin Roosevelt, among few others, had been a genius of public psychology. He knew when and how to use the presidential media. His first 100 days of government were dotted with the release of timely updates to his exultant public, explanations of what he was doing and why, in clear, simple and collaborative terms. Do today's historians still debate the importance of Roosevelt, a saint, a skilled communicator or a manipulator? A combination of all this? The impact of the man that history remembers as a " Great Communicator " still has effects on America today.

And today?

The lack of strategic communication experts, and the often little understood need to create clear, open and trustworthy communication channels between the public, stakeholders, experts and the media, seems to be increasingly evident as one of the causes of the current crises in governments and industry.

From lack of trust to fake news to populism.

How else can we explain why, after the pro Brexit vote, the two most popular questions on Google UK were "What is Brexit" and "What is the EU"? How can we explain the failure of a "European Union" that passes through culture, passports, and the joining of forces? How can we explain informative speculation, the success of certain populist campaigns and fake news? The damage to the reputation of certain companies and the image of entire sectors?

How can current information and communication models be adapted to meet the growing needs of a public - citizens, professionals, politicians and academia - that has access to ever increasing amounts of information and of stimuli but little light, clarity and perspective on many issues?

Genuine EQ and AQ for increased agile awareness.

In the light of digital transformation, the communication models that will be more easily adaptable and implemented on a large scale will be based on social skills and emotional intelligence. We will be increasingly open to what experts call "AQ", adaptability quotient, which will allow us to understand scenarios and dynamics, and will make the most successful leaders masters of communication and relations, allowing them to better understand the public, engaging its involvement and, in some cases, even complicity.

In this context, stability will increasingly lose importance, being replaced by leverage on agility. Today's business world requires communication models that are increasingly shifting from a top-down approach to one which fluctuates between top-to-bottom and bottom-to-top. Motivated, talented, highly communicative, high EQ and AQ individuals in key positions in companies are now essential to the new face of business.

Modern businesses are increasingly globalised and they drive change through different platforms. This is a key aspect from various points of view, not least that of reputation management, a factor largely neglected by the major financial and governmental players during the last financial crisis.

It will no longer be possible to implement global and efficient communication systems using conventional communication methods, and they will require careful planning.

Reputation management is an essential part of business. Everything a company says, does, or neglects to do contributes to its reputation and brand equity. We must always remember that an essential component is listening and that communication is not a one-way process, but a multi-directional one, remembering that listening to all stakeholders, including the media, is key to all-round strategic communication, from branding to reputational impact.

After all, as the famous executive consultant and author Peter Drucker says, the most important thing in communication is hearing what isn’t said.

Manuela Andaloro

(info@smartbizhub.com)

 (As published in Focus ON’s cover story, article by Manuela Andaloro for Focus ON, 29th October 2018, download article in Italian here)