• Technology is changing the financial services sector and disrupting longstanding business models
• While digital services will become so thoroughly a part of banking and finance, from payments to philanthropy, offline approaches will still be needed to provide trustworthy partners for artificial intelligence and big-data algorithms
• Find more information about the World Economic Forum here:http://wef.ch/amnc15

Dalian, People’s Republic of China, 10 September 2015 – Technology, particularly the internet and mobile communications, is rapidly changing the financial services industry. Consider the impact of the internet of things – the proliferation of internet-enabled items, including accessories that people wear or carry, and big data, the accumulation of information about transactions and preferences that can be analysed and used by service providers to customize their offerings. Bank branches are closing down, wealth advisory and management are conducted in real time, and even plastic ATM and credit cards are disappearing.

“Banking is at an inflection point,” said Anju Patwardhan, Group Chief Innovation Officer, Standard Chartered Bank, Singapore, in a session on the “Digital Disruption of Finance” at the World Economic Forum’s ninth Annual Meeting of the New Champions. “Technology is the key enabler. In the next few years, banking will change and there will be a lot more collaboration between banks and technology companies.” Banks may look more like tech companies, while tech enterprises will perform many of the functions that were once the preserve of banks. Already there are non-banking firms that operate payments systems and maintain customer deposits through e-wallets. Peer-to-peer (P2P) lending that avoids the use of a financial institution as an intermediary is growing.

“The banking model as we know it will continue to exist until the business design is changed,” Iqbal A. Khan, Chief Executive Officer, Fajr Capital, United Arab Emirates, observed. “Banks will change, but they will not fade away.” Added Huang Yiping, Professor, National School of Development, Peking University, People’s Republic of China:

“With big-data tools, investors can do analysis themselves. They won’t need the help of banks and can make investments directly.”

Technology is bridging the gaps in knowledge and access between professional financial advisers and service providers and the public, correcting the asymmetry of information that enabled banks and other financial institutions. Mobile devices are giving access to capital to the previously “unbanked” and helping even the smallest borrowers build businesses that can secure their livelihoods. The internet and mobile devices are enabling new ways to raise funds for ventures and philanthropy. “This is the democratization of finance,” said Patwardhan.

All these changes are raising questions about regulation and the lack of global frameworks on a range of issues, from cybersecurity to privacy and the confidentiality of data in a world where there has been a longstanding segregation of payment systems and financial intermediation.

While big data analysis and the use of algorithms combined with psychometrics will sharpen credit analysis, and robots and artificial intelligence could provide wealth management advice, the bricks-and-mortar side of finance will not disappear altogether. “At the end of the day, we have to combine online and offline approaches,” Tang Ning, Chief Executive Officer, CreditEase, People’s Republic of China, advised. “Customized services will still need an offline approach provided by human beings. Maybe a robot will help with wealth management, but we will still need offline trustworthy and reliable partners who offer face-to-face service.” Still, technology will become so much a part of finance that the old ways of providing financial services will surely be abandoned, Tang concluded. “The term ‘internet finance’ will disappear. Ten years from now, it will just be finance.”

The World Economic Forum’s Annual Meeting of the New Champions is taking place in Dalian, People’s Republic of China, from 9 to 11 September. The meeting is a leading global gathering on innovation, entrepreneurship, science and technology. It is held in close collaboration with the Government of the People’s Republic of China, with the support of the National Development and Reform Commission (NDRC). The meeting has brought together more than 1,700 participants from 90 countries under the theme Charting a New Course for Growth.

The Co-Chairs of the meeting are: Mitchell Baker, Executive Chairwoman, Mozilla Foundation, USA; Nathan Blecharczyk, Chief Technology Officer and Co-Founder, Airbnb, USA; Cheng Wei, Founder, Chairman of the Board and Chief Executive Officer, Didi Kuaidi, People’s Republic of China; Francis S. Collins, Director, National Institutes of Health, USA; Ken Hu, Deputy Chairman and Rotating Chief Executive Officer, Huawei Technologies, People’s Republic of China; Li Ruigang, Founding Chairman, CMC Capital Partners, CMC Holdings, People’s Republic of China; Carlos Moedas, Commissioner, Research, Science and Innovation, European Commission, Brussels; and Jeffrey R. Tarr, President and Chief Executive Officer, DigitalGlobe, USA.

The post Digital Disruption of Finance Services Will Change Banking as We Know It appeared first on Core Sector Communique.

• Business plays an important leadership role in fostering cooperation in Asia
• Multilateral institutions provide mechanisms for participation of all countries
• Role for trade and industry federations to resolve cross-border tensions
• Over 1,700 participants from 90 countries are taking part in the World Economic Forum’s ninth Annual Meeting of the New Champions in Dalian, People’s Republic of China, from 9 to 11 September
• More information about the World Economic Forum: http://wef.ch/amnc15

Dalian, People’s Republic of China, 9 September 2015 – Panellists agreed that geopolitical tensions have always existed and can present obstacles to business in the region. Speaking on a panel at the Annual Meeting of the New Champions, Anthony F. Fernandes, Group Chief Executive Officer, AirAsia, Malaysia, said that business plays an important leadership role in fostering cooperation in Asia, but businesspeople sometimes contribute to these tensions because of their calls for protectionism. He said he believes that the growing threat of nationalism can derail a lot of good work that has been done to foster economic integration within the region.

According to John Riady, Executive Director, Lippo Group, Indonesia, increasingly, the borders created by the traditional system of nation states are becoming less of a barrier as advances in digital technology enable companies to disrupt borders to provide goods and services in other countries. As such, the sovereignty of the nation state has to deal with the reality of blurring borders, and a new institutional infrastructure may be needed to address the new challenges.

Victor L. L. Chu, Chairman and Chief Executive Officer, First Eastern Investment Group, Hong Kong SAR, is an advocate of multilateral institutions like the World Trade Organization rather than regional and bilateral arrangements, as the former provides a mechanism for participation of all countries and does not leave out small and weak countries not invited to join bilateral arrangements.

Kil Jeong-Woo, Member of Parliament, Republic of Korea, said that while the individual company’s role in helping to resolve cross-border tensions is limited, trade and industry federations can assert a bigger influence, as seen in Japan and South Korea.

Yorihiko Kojima, Chairman of the Board, Mitsubishi Corporation, Japan, said that despite tensions between China and Japan, thousands of Chinese tourists have continued to visit Japan in recent years. But he agreed that communication is the key to resolving many geopolitical tensions.

The World Economic Forum’s Annual Meeting of the New Champions opened today in Dalian, People’s Republic of China, and runs from 9 to 11 September. The meeting is a leading global gathering on innovation, entrepreneurship, science and technology. It is held in close collaboration with the Government of the People’s Republic of China, with the support of the National Development and Reform Commission (NDRC). The meeting is convening more than 1,700 participants from 90 countries under the theme, Charting a New Course for Growth.

The Co-Chairs of the meeting are: Mitchell Baker, Executive Chairwoman, Mozilla Foundation, USA; Nathan Blecharczyk, Chief Technology Officer and Co-Founder, Airbnb, USA; Cheng Wei, Founder, Chairman of the Board and Chief Executive Officer, Didi Kuaidi, People’s Republic of China; Francis S. Collins, Director, National Institutes of Health, USA; Ken Hu, Deputy Chairman and Rotating Chief Executive Officer, Huawei Technologies, People’s Republic of China; Li Ruigang, Founding Chairman, CMC Capital Partners, CMC Holdings, People’s Republic of China; Carlos Moedas, Commissioner, Research, Science and Innovation, European Commission, Brussels; and Jeffrey R. Tarr, President and Chief Executive Officer, DigitalGlobe, USA.

The post Asia’s Future Success Depends on Business Leadership and Multilateral Cooperation appeared first on Core Sector Communique.

• China’s political leaders are strongly committed to green growth and are focusing on renewable energy technologies
• China’s renewable energy industry has seen rapid growth, which is set to continue
• The country is a “world leader” in green coal technologies
• Over 1,700 participants from 90 countries are taking part in the World Economic Forum’s ninth Annual Meeting of the New Champions in Dalian, People’s Republic of China, from 9 to 11 September
• More information about the World Economic Forum: http://wef.ch/amnc15

Dalian, People’s Republic of China, 9 September 2015 – China’s ambition for greener growth is real – and expedient – as the country moves closer to keeping its commitments, panellists agreed at the World Economic Forum’s Annual Meeting of the New Champions, which opened today in Dalian. Despite the country’s current economic slowdown, political leaders are strongly committed to green growth as the country rebalances its economy to overcome unsustainable economic growth rates and focuses on renewable energy technologies.

Changhua Wu, Director, Greater China, Climate Group, People’s Republic of China, told participants, “The biggest driver is energy and the commitments are well thought through.” She added: “They are trying to create a shared value that is in harmony with nature that can result in green, low-carbon growth and a circular economy that is environmentally friendly and resource-efficient.” Wu pointed to specific, mandatory targets set last year and noted that the government is building up governance mechanisms to support them.

Paul Polman, Chief Executive Officer, Unilever, United Kingdom, said that frameworks must be in place to ensure “better growth, better development and better climate”. He added: “The government is taking this [issue] to heart.” Polman reminded participants that “we are hitting planetary boundaries” and singled out three issues to focus on to reverse current trends: urbanization and greener cities; agriculture and land use; and energy.

The Asia-Pacific region will invest $2.5 trillion in renewables as part of its power capacity needs for 2030. “This will mean tremendous opportunities [for technology and innovation] and for businesses to protect their business models,” he said. “The cost of not acting is higher than the cost of acting.”

Gao Jifan, Chairman and Chief Executive Officer, Trina Solar, People’s Republic of China, said that ecological green growth and development is going to be China’s growth strategy. “By 2030, we must reach the peak of carbon emissions,” he reminded participants. “Over the last few years, the renewable energy industry, particularly wind and solar, has seen rapid growth.”

According to Gao, non-fossil sources comprise about 10% of the country’s energy mix and are set to grow. Worldwide, subsidies for renewables are often not well targeted and the electricity cannot feed into the grid, he added. However, because the cost of PV solar panels is dropping due to new technology, by 2025, solar energy will survive without subsidies.

Over the past 40 years, China’s burgeoning coal-fuelled economic development lifted hundreds of millions out of poverty, but resulted in the country becoming the world’s largest consumer of energy and biggest emitter of greenhouse gases. In 2013, China consumed more than 4 billion tons of coal.

Oleg V. Deripaska, President, RUSAL, Russian Federation, said that while China has made a huge commitment to green growth, its growth trajectory over the past 15 years has created many challenges. “The energy balance is not properly structured and there hasn’t been enough action so far,” he said. Deripaska pointed to the persistent use of coal to power the cement, steel, aluminium and glass industries. “These companies are not profitable and cannot invest in modernization,” he said. “Carbon control should be the real issue.”

Wu countered that China has cracked down on coal-fired plants and is a “world leader” in green coal technologies. She agreed that, to reduce the country’s coal emissions, more resources need to be put into innovation.

Panellists concurred that China’s plan to put a price on carbon is a positive step forward in meeting the country’s commitments to green growth and to the targets expected to be agreed upon at the UN Climate Summit Change Conference to be held in Paris in 2015, where world leaders are likely to agree on a new and ambitious agreement.

The World Economic Forum’s Annual Meeting of the New Champions takes place in Dalian, People’s Republic of China, from 9 to 11 September. The meeting is a leading global gathering on innovation, entrepreneurship, science and technology. It is held in close collaboration with the Government of the People’s Republic of China, with the support of the National Development and Reform Commission (NDRC). The meeting is convening more than 1,700 participants from 90 countries under the theme, Charting a New Course for Growth.

The Co-Chairs of the meeting are: Mitchell Baker, Executive Chairwoman, Mozilla Foundation, USA; Nathan Blecharczyk, Chief Technology Officer and Co-Founder, Airbnb, USA; Cheng Wei, Founder, Chairman of the Board and Chief Executive Officer, Didi Kuaidi, People’s Republic of China; Francis S. Collins, Director, National Institutes of Health, USA; Ken Hu, Deputy Chairman and Rotating Chief Executive Officer, Huawei Technologies, People’s Republic of China; Li Ruigang, Founding Chairman, CMC Capital Partners, CMC Holdings, People’s Republic of China; Carlos Moedas, Commissioner, Research, Science and Innovation, European Commission, Brussels; and Jeffrey R. Tarr, President and Chief Executive Officer, DigitalGlobe, USA.

The post Despite Economic Slowdown, China Strongly Committed to Green growth appeared first on Core Sector Communique.

World Economic Forum Honours 132 Companies as Global Growth Companies

The post World Economic Forum Honours 132 Companies as Global Growth Companies appeared first on Core Sector Communique.