Yet, in many countries, the overall individual perception of well-being differs greatly between the young and the old: “In some cases, these differences favor the old, as in the United States and Canada, where the rankings for those aged 60 and older are 50 or more places higher than for those under 30. In other cases, especially in Central and Eastern Europe, the reverse is true, with many rankings being more than 40 places higher for the young than for the old.�?/p>

Nordic Nations Lead The Pack

Australia has vaulted back into the top 10 of the World Happiness Report for the first time since 2018. However, its total score in terms of life evaluation (7057) is lower than last year (7095), and the advancement in the ranking can be attributed to the even larger deterioration experienced by New Zealand, which occupied the 10^th spot in 2023. In both cases, the report notes, the level of overall happiness is much lower among the youth and rises gradually with age to peak the highest among the old.

Just eight years ago, this land of castles, lakes and rolling hills occupied the 20^th position in the happiness ranking. Luxembourg made it into the top 10 in the 2020 edition of the report, and has not fallen out of it since.

This very small nation of less than 700,000 people scores above average in social connections,  subjective well-being, freedom to make life choices and life expectancy. And while money cannot buy happiness, Luxembourg being among the richest countries in the world where workers enjoy an average gross salary of almost 7,000 euros per month certainly doesn’t hurt.

It is one of the most prosperous countries in the world—and one of the most virtuous. Norwegians think that democracy should enforce social and economic equality. The result is less income and gender disparity, excellent free healthcare and more confidence in elected officials. Social and institutional trust are essential factors in one’s sense of personal well-being, and the Covid-19 pandemic proved it starkly.  In that sense, Norway has been particularly successful in keeping mortality rates low and mitigating the economic impact of lockdowns.

It is also worth noting that since the index was released for the first time a decade ago Israel never slipped below the 14^th spot. But how could this nation of roughly 10 million—surrounded by hostile neighbors and perpetually embroiled in conflict—truly be so happy?  Easy answer: happiness is not just determined by the presence or the lack of one given element. Israel is a rich and vibrant country where people can rely on strong community ties and feel they can decide how to pursue their goals in life.

Iceland routinely tops a wide variety of quality of life rankings. Chosen by both the World Economic Forum as the best country in the world for gender equality and the Institute for Economics and Peace as the most peaceful for more than 10 years in a row, this republic of about 390,000 is one of the most environmentally friendly too. Iceland have also the highest per capita publication of books: 10% of its residents will embark on the noble quest of penning one in their lifetime, which must be something that makes them really happy.

With these businesses accounting for more than 95% of all local enterprises, and over 70% of the workforce, their influence matters. For example, the Singapore Business Federation’s National Business Survey 2022/2023 revealed that 75% of businesses in Singapore have implemented efforts in at least one environmental, social and governance (ESG) area ^[1].

Among the most common were ‘Employee health & safety�?(81%), ‘Fair and equitable employee pay & rewards policies�?(71%), and ‘Documenting, monitoring and reporting business governance, risks and compliance�?(57%). Looking forward, companies are planning to do more in areas such as ‘Increasing sustainability in business supply chains�?(45%), ‘Mitigating supply chain risks�?(43%), and ‘Inclusion & diversity in business�?(43%) ^[2].

This means SMEs across nine categories of business^[3] do not need to develop their own frameworks, seek consultants, or conduct verification on their own, reducing time and complexity of the process. This also applies to regional businesses, applying a similar streamlined eligibility assessment wherever the business operates from.

Sponsored by:

[1] Source: My Careers Future �?//content.mycareersfuture.gov.sg/singapore-businesses-kickstart-their-sustainability-journey/#:~:text=The%20Singapore%20Business%20Federation’s%20National,towards%20a%20low%20carbon%20economy.

[2] Source: Singapore Business Federation’s National Business Survey 2022/2023 �?chrome-extension://efaidnbmnnnibpcajpcglclefindmkaj///www.sbf.org.sg/docs/default-source/advocacy-policy/sbf-research-reports/national-business-survey/summary-report/sbf-nbs-2022-2023-report.pdf?sfvrsn=bcf614c9_1#:~:text=For%20ESG%2C%2075%25%20of%20businesses,57%25)%2C%20’Transparency%20in%20corporate

[3] //www.ocbc.com/business-banking/smes/loans/sustainable-financing

In early March, Egypt’s central bank hiked interest rates by 600 basis points, agreed to slow down infrastructure spending, and allowed the Egyptian pound’s value to plummet, in exchange for a $5 billion expansion of its preexisting loan package from the International Monetary Fund (IMF) to $8 billion. A floating exchange rate has been a longstanding demand of the IMF, and Bloomberg’s Chief of Emerging Markets Economist Ziad Daoud noted that the pound’s “movement is too smooth for the free floatation to be true.”

Qatar is one of the safer, stable and prosperous countries in the Middle East. The country has a sophisticated banking system that provides both Islamic and conventional banking services and has eight banks in the top 1,000 safest banks. The banking system supports the country’s economy, with oil and gas serving as Qatar’s backbone. The QIA started acquiring equity ownership in all domestic banks listed on the Qatar Exchange and has ownership shares in the eight banks among the world’s 1,000 largest. The country is working to diversify its economy and has created emerging opportunities in technology, manufacturing, and agriculture, for example.

//www.qnb.com

//www.qib.com.qa

//www.dukhanbank.com/

//www.qiib.com.qa/

//www.alrayan.com

Within the constraints of budget allocations and cost-efficiencies, what portion of banks�?expenditure is dedicated to technology adoption? Research from the Infosys Knowledge Institute for the first edition of the Infosys Bank Tech Index has identified three key trends impacting banks:

However, it is AI that is driving the biggest transformation of industries all around the world. For banks, a swift adoption of AI is no longer an option but a mandate. While behemoths such as JPMorgan see AI generating business value of $1.5 billion, our research found that spend on AI seems to still be only a small proportion of budget. Despite this relatively smaller spending, another study has found that the financial services sector is creating value with generative AI in Australia, New Zealand and the Asia-Pacific region, and financial services businesses in Europe and in North America are similarly developing use cases that create business value.

Banks face numerous challenges in adopting technology. Budgets are continually shrinking and slow economic growth looms. Yet it is crucial not to reduce spending on technology: Gartner’s research reveals that companies that slashed technology budgets in the 2008 financial crisis struggled to keep pace with their competitors.

“Rising scrutiny and lengthening review timelines have caused a handful of companies to withdraw their deals,�?Bain & Co. VP Suzanne Kumar wrote in a January report. “Yet the simple reality is that buyers still need to do deals to advance strategic goals, and most contested deals do make it to close.�?/p> Whether Capital One and Discover “make it to close�?remains to be seen. So far, it’s not looking good.

In a March 6 letter seen by Global Finance Magazine, a chorus of about two dozen advocacy groups urged Fed Chair Jerome Powell and other regulators to intervene and block the Discover acquisition. Combining two major credit card companies would harm competition and concentrate risk in an already fragile financial system that—just last year—was rocked by the the FDIC’s sudden takeover of both Silicon Valley Bank and Signature Bank, they argued. 

Capital One CEO Richard Fairbank expects the acquisition to help the bank “build a payments network that can compete with the largest payments networks and payments companies.�?/p> JPMorgan Chase oversees roughly 17% of credit card balances; Capital One, if it buys Discover, would leapfrog that—but by a mere 2%.   Other competitors in the space include Mastercard, Visa and American Express.   Powell briefly addressed the matter on Wednesday at a hearing with the House Financial Services Committee.  “I think on the potential merger�?we haven’t received an application,�?he said. Powell was referring to protocols that require any company seeking to either become a bank, or acquire a bank, to apply for Fed approval under the Bank Holding Company Act of 1956.

“So, there’s really not much to say yet,�?he added. “It’s early days. When we do get that application, though, we’re going to evaluate that merger as always under the factors laid out under the law and that’s our commitment.�?/p> Applications that require review or action by the Fed board can add at least 60 days to the deal process. Also, the nature of Capital One’s deal is especially tough considering how the Biden administration has made serious efforts to clamp down on all banking and credit card matters, not counting M&A. As recently as March 5, the Biden administration finalized a rule to eliminate junk fees on credit cards and cap most late fees at $8, down from an average of $32.  The Consumer Financial Protection Bureau touted that the new regulation would save families more than $10 billion a year.  “There’s going to be a lot of regulatory scrutiny on this one,�?Bankrate’s Rossman says. “The credit card industry is under a microscope, especially in an election year. I’m not sure this will proceed but it’ll be fascinating to watch.�?nbsp;

The post Is Capital One Next? Corporate Deals Are Getting Nixed As M&A Scrutiny Intensifies appeared first on Global Finance Magazine.

Companies faced with slack demand for such things as diapers and baby food are rolling out incontinence products and protein drinks to support aging bodies. With many aging individuals remaining healthy into their 90s, demand is increasing for everything from travel programs aimed at older audiences to aesthetic surgery to remove double chins and wrinkles. As the TV program The Golden Bachelor has demonstrated in the US, demand for dating services for people over 65 is soaring.

“Globally, this age group is the most important consumer growth market over the next 15 years,�?advertising firm Ogilvy says. “Developed economies are already experiencing the huge spending power of the elderly. Asia will be no different—with the exception that the demographic changes in Asia will mean that it happens even faster in Asia.�?/p> The cause of this business rethink is a truly striking demographic shift: The World Health Organization forecasts that the proportion of the global population over 60 years old will nearly double between 2015 and 2050, reaching 2.1 billion people. The shift is even more acute in a handful of countries: According to the World Bank’s figures, as of 2022, 30% of Japan’s population was 65 or older, while in Italy it was about 24%, prompting Prime Minister Giorgia Meloni to lament that the country is “destined to disappear.�?In China, while still a relatively low 15% of the population, about 210 million people are currently over the age of 65, according to a 2023 Chinese government report—a consumer market nearly the size of Brazil’s entire population. In China and many other countries, the fastest-growing demographic is over 80.

Kuwaiti banks are already “focused on what’s coming next,�?says Abdullah Al-Tuwaijri, CEO of Private, Consumer, and Digital Banking for Boubyan Bank, one of Kuwait’s fastest-growing lenders. “The technological turbulence is changing the way banks would generate revenue, by extending services beyond banking. Banks that become early adopters to new market trends will own the future.�?/p> That future holds great promise. “The next phase of evolution will be even more dynamic�?with the integration of AI and other emerging technologies, says Talal Bader Al-Othman, vice president of asset management at ABK Capital. Banks are likely to leverage data-driven insights to enhance personalized services and streamline operations, Al-Rushood predicts. “There will be more reliance on AI and robotics, as adopting generative AI promises improvements in decision-making, profitability, fraud detection and prevention, and risk management.�?Alongside AI, open banking—sharing data between banks and third-party providers through APIs—is the big change on everyone’s mind. Historically, Kuwaiti banks have focused tightly on the domestic market, except when they follow rich Kuwaitis on their ventures in London, Paris, Geneva or New York. But today, they are increasingly looking to expand across the fast-growing Persian Gulf region. “We will maintain our strategic focus on the Gulf Cooperation Council [GCC] projects market, which is poised for another significant phase of expansion,�?says Al-Fulaij. NBK has a presence in Saudi Arabia, Bahrain and the United Arab Emirates, he notes, and is hoping to capitalize on “the remarkable growth observed in project-award activity surging.�?Total contracts awarded in the GCC in 2023 reached $205 billion, according to Middle East Business Intelligence: an 88% year-on-year increase.

Aside from megaprojects, Kuwaiti banks are looking to bring added value to wealth management, notably in digital services. Last April, Boubyan’s Bank of London and the Middle East (BLME) subsidiary signed a strategic partnership with Abu Dhabi Commercial Bank and its Islamic subsidiary Al Hilal Digital Bank to roll out Boubyan’s neobank, Nomo, to customers in the United Arab Emirates. In May, the bank also opened BLME Capital, an investment subsidiary of BLME, Europe’s second-biggest Islamic bank, in Riyadh. Tuwaijri says it is “open to explore new markets.�?/p> Populous Egypt is among the most attractive destinations for Kuwaiti banks. NBK’s subsidiary in Cairo has delivered “exceptionally strong results�?thanks to a “strong financial position and ambitious digital agenda,�?says Al-Fulaij. KFH, which acquired Bahrain’s Ahli United Bank in 2022, also has expanded its network beyond Bahrain: Saudi Arabia, Egypt, Turkey, Malaysia, Germany and more. “We will consider any opportunity for further growth,�?says Al-Rushood. With deep pockets and expanding tech offerings, Kuwaiti banks are ready to step up their game.

The post Kuwaiti Banks Go Digital appeared first on Global Finance Magazine.

In any case, banks should be helping their clients do better. About half of all inheritors still wait by the deathbed to learn their inheritance, Cerulli’s Horton estimates. “The ideal way to transfer wealth is through trusts for the children or spouse,�?he says. “Most of the time, it’s passed down in a less-than-ideal way.�?/p>

Dialogue between parents and successors may be particularly difficult in Asia, says Zita Verbenyi, founder of The Legacy Atelier in London. Contradicting the head of the family often is taboo. Heirs are often educated and live in the West, absorbing very different cultural values and financial reasoning than their elders. “In the Middle East or India, the younger generation may not say anything about how the business is run,�?Verbenyi says. “That’s not real engagement.�?/p>

Independence

The connecting trait of next-generation inheritors across the globe is their passion for independence—personal and financial. As a first consequence, many want to leave the family enterprise that their parents or grandparents built. “We see many examples where the younger generation may not want to inherit the business,�?Cavalli notes. “They have their own views, preferences and ambitions.�?/p>

1  BTG Pactual Empresas�?Dany Gregory (l), Director SME Digital Retail Unit and Gabriel Motomura (c), Partner and Co-Head receiving the World’s Best SME Bank and the Best SME Bank in Latin America awards from Global Finance founder and editorial director, Joseph Giarraputo (r).

2  Martin Pechoucek, Head of Business Development at CSOB receiving the Best SME Bank in Central and Eastern Europe award for 2024.

3  Arab Bank’s Chief Executive Officer for Europe, Haytham Kamhiyan, collecting the 2024 Best SME Bank in the Middle East award.

4  Ecobank’s Carol Oyedeji, Group Executive Commercial Banking, accepting the award for Best SME Bank in Africa.

5  Malgorzata Sosnowska, Managing Director SME & Commercial Clients Line at BNP Paribas Bank Polska, receiving the Best SME Bank in Poland award.

6  Mete Uluyurt, Managing Director Isbank London collecting the Best SME Bank in Turkey award for 2024.

7  Citi Velocity’s team receiving 2024 World’s Best Digital FX Platform, Best Execution Algorithms, Best Data and Analytics Platform and Best Big-Picture View of Positions awards.

8   Investec’s team receiving the 2024 World’s Best FX trading platform and Best Foreign Exchange Bank in Ireland awards.

9  Remy Covarel (l), Head of Sales Emerging Markets, and Olivier Carrolaggi (r), Regional Director, EMEA, Emerging Markets at Corpay, receiving awards as the Best FX for Payments Solution and Most Innovative Non-Bank for FX.

10   Ibai Urra Magallon (l), Managing Director and Global Head of Transactional FX, and Francisco Javier del Portillo Elordi (c), Head of FX Corporate Sales at BBVA, accepting the 2024 award as World’s Best FX Bank for Corporates. 

11   Joao Leal, Business Strategy and Management at Santander, collecting the 2024 award as World’s Best FX Bank for Emerging Market Currencies.

12   Al Rajhi’s Abdulrahman Alajaji, General Manager, Treasury Group, receiving the Best FX Bank in the Middle East award.

13   Marc Viakovski, Head of Flow Trading London Global Markets at Rand Merchant Bank, accepting the Best FX Bank in Africa award. ;

14   Paul Fuller (l), Head of Treasury at National Bank of Kuwait, collecting the Best Foreign Exchange Bank in Kuwait for 2024.

15   Vietinbank’s Nguyen Duc Thanh (l), Dam The Trung (c) and Nguyen Manh Khoi (r) collecting the Best Foreign Exchange Bank in Vietnam award.

16   Hana Bank’s team accepting the Best Foreign Exchange Bank in South Korea award from Global Finance’s Joseph Giarraputo.

17   Lie Lam, Executive Director, Treasury and Markets at DBS, receiving the Most Innovative Bank for FX award for 2024.

18   Banco de Credito del Peru’s Adip Numa (l), Head of Sales and Trading, and Marco Merino (c), Head, FX Trading, accepting the 2024 awards as Peru’s Best Foreign Exchange Bank and its Best SME Bank.