Currency risk is no longer confined to treasury departments. It has become a strategic variable.

Structural Volatility in a Fragmented Monetary System

The global foreign exchange market remains the largest and most liquid financial market in the world. According to the Bank for International Settlements (BIS) Triennial Central Bank Survey, daily FX turnover has exceeded USD 7 trillion, reflecting both the depth and velocity of currency transactions across jurisdictions. This scale implies not only liquidity, but transmission speed: macroeconomic shocks, policy surprises, and geopolitical events propagate almost instantaneously through exchange rates.

At the same time, International Monetary Fund (IMF) research has repeatedly underscored the persistence of dominant currency pricing in global trade. A significant portion of international trade, including transactions between non-US economies, remains invoiced in US dollars. For European firms, this creates layered exposure: even when operating within the Eurozone, input costs and export revenues may be indirectly tied to dollar movements.

The result is a structurally sensitive environment in which exchange rate movements affect firms not only through direct currency mismatches, but also through global pricing channels and financial conditions.

From Monetary Divergence to Corporate Exposure

The divergence of monetary policy cycles since 2022 has intensified exchange rate variability. The European Central Bank, the Federal Reserve, and other major central banks have pursued differentiated tightening and easing paths in response to domestic inflation dynamics and growth trajectories.

IMF analyses on global financial stability have highlighted how such policy divergence amplifies capital flow volatility and exchange rate adjustments, particularly during periods of uncertainty. For European exporters and importers, even moderate currency swings can significantly alter cost structures and margin forecasts. Firms with emerging market exposure face even sharper fluctuations, often compounded by sovereign risk repricing.

What distinguishes the current phase is not volatility alone, but compression of adjustment time. Currency markets respond to forward guidance, data releases, and geopolitical developments in real time. Static, end-of-day reference points cannot fully capture this accelerated adjustment process.

Informational Latency as Strategic Risk

Traditional corporate foreign exchange management relies on periodic reporting cycles. Financial statements reference official benchmark rates; treasury functions implement hedging strategies based on predefined thresholds; pricing adjustments occur on quarterly horizons.

This framework implicitly assumes that informational delay is manageable.

Yet in a high-frequency currency environment, informational latency generates measurable distortions. Pricing decisions may incorporate outdated exchange assumptions. Hedging execution may miss short-lived volatility windows. Investor communication may reflect historical rates rather than prevailing market levels.

BIS research has emphasised that exchange rate movements can have balance sheet effects, particularly where liabilities are denominated in foreign currencies. Even in advanced economies, such balance sheet channels influence credit conditions and corporate leverage dynamics. In this context, incomplete visibility into currency movements becomes more than a technical inconvenience; it constitutes a strategic blind spot.

The Dual Imperative: Official Benchmarks and Real-Time Signals

For firms operating within the Eurozone, the European Central Bank’s reference rate remains the authoritative benchmark for accounting, regulatory reporting, and contractual standardisation. Official rates ensure coherence and comparability across jurisdictions.

However, official benchmarks are by design periodic and not continuously updated. They provide formal anchoring, not tactical immediacy.

Strategic currency management therefore requires a dual architecture: access to official ECB reference rates for compliance and reporting, combined with real-time interbank data for operational decision-making. The integration of these informational layers reduces fragmentation and enhances interpretive clarity.

An emerging ecosystem of digital platforms seeks to consolidate these elements. Solutions such as xrates.eu aggregate official ECB exchange rates alongside live interbank currency data, historical volatility charts, and conversion tools within a unified interface. The strategic contribution of such platforms lies not in facilitating speculative activity, but in reducing informational asymmetry across organisational levels.

When currency intelligence is transparent, accessible, and synchronised, it becomes embedded in procurement decisions, pricing models, and executive oversight.

Currency Intelligence as Organisational Capability

Leading firms increasingly conceptualise exchange rate monitoring as an organisational capability rather than a treasury sub-function. This shift aligns with broader evolutions in enterprise risk management, where real-time data integration supports anticipatory rather than reactive responses.

Continuous access to currency data enables dynamic budget recalibration, more precise cross-border pricing adjustments, and improved scenario modelling. It also enhances board-level understanding of foreign exposure concentration and sensitivity.

The competitive advantage derived from such capability is incremental yet compounding. Reduced margin erosion, fewer hedging mismatches, and clearer investor guidance collectively strengthen strategic resilience.

Implications for European Competitiveness

Europe’s corporate ecosystem is uniquely exposed to multi-currency complexity. Firms frequently operate across euro and non-euro jurisdictions, invoice in US dollars, and maintain supply chains spanning advanced and emerging economies.

IMF research on external sector stability suggests that exchange rate flexibility can act as a shock absorber at the macro level. At the firm level, however, flexibility translates into variability that must be actively managed.

In this context, exchange rate awareness becomes inseparable from strategic planning. It influences export competitiveness, inward investment decisions, mergers and acquisitions, and portfolio diversification strategies.

Final thoughts

Exchange rates were once treated as exogenous parameters, important but peripheral to executive deliberation. In the current global environment, they function as dynamic variables shaping corporate outcomes in real time.

For European firms navigating monetary divergence and geopolitical uncertainty, integrating authoritative benchmark data with continuous market intelligence is becoming foundational. Institutions such as the BIS and IMF have documented the systemic scale and transmission speed of currency movements. The corporate response must therefore evolve accordingly.

Exchange rate intelligence is no longer merely a technical instrument of treasury management. It is an element of strategic stability in an era defined by accelerated capital flows and structural uncertainty.

The post Currency Volatility as a Strategic Variable: Why European Firms Must Rethink Exchange Rate Intelligence appeared first on The European Business Review.

Today’s investment environment is defined by rapid change. Exciting tech developments and financial innovations are happening at a rate faster than ever in human history, and it’s easy to see the investment appeal. But picking a winner is like betting on a horse race; it’s fraught with risk and uncertainty.  While assets such as crypto and A.I. are creating headlines, beneath the surface lies a volatile mix of ever-changing regulations, competitors, and limited historical benchmarks for assessing the risk involved.

Against this backdrop, it’s no wonder tangible assets are seeing a resurgence. Gold’s recent record highs are one example of investors seeking stable, consistent investments as a key part of their portfolios to spread risk and build resilience.  Another sector that stands out for its stability is industrial real estate, which can generate income for a portfolio.

The value of tangible assets

The core advantages of real estate, particularly industrial real estate, are its physical, utility-driven nature. Unlike digital or highly speculative assets, industrial properties underpin our economies by serving an essential function: they house goods, support manufacturing, and enable the just-in-time supply chain movements that bind countries together. This intrinsic function provides a fundamental layer of value that is less dependent on market sentiment or technological hype.

Industrial real estate also offers predictable cash flows. Long-term leases, often with built-in rent escalations, provide investors with recurring revenue that can help offset volatility elsewhere in a portfolio. While value may not surge overnight, industrial real estate assets tend to appreciate steadily, supported by durable real-world demand.

Real estate has historically served as a solid hedge against inflation. As construction costs, land values, and rents rise over time, well-located industrial assets can preserve purchasing power in ways that many financial or digital assets cannot consistently achieve.

Portfolio diversification

Adding industrial real estate to a portfolio can introduce strong diversification across asset types. While technology-driven investments may be sensitive to regulatory and political shifts or sudden market corrections, industrial real estate is influenced by different drivers, such as trade volumes, supply chain efficiency, and population growth. Importantly, these drivers can have strong historical data points to inform risk and trajectory and are far less susceptible to the political pitfalls above.

This diversification is especially valuable in periods of extreme market volatility. There is plenty of current commentary on an impending A.I. ‘bubble’ that serves as a great example of this volatility.  Income from real estate tenants can continue even when capital markets are volatile, helping to stabilise overall portfolio performance. For investors seeking to balance growth-oriented investments with defensive assets, industrial real estate can play a critical role.

Geopolitics and the strategic importance of industrial real estate 

Geopolitical shifts are increasingly shaping investment decisions, and real estate is no different. Trade tensions, supply chain disruptions, and conflicts have prompted companies to rethink where and how they produce and store goods. As much as we investors diversify to spread risk, so do businesses when making business-critical supply chain decisions. Trends such as nearshoring, reshoring, and regionalisation of supply chains have increased demand for strategically located industrial facilities.

Governments are also investing heavily in infrastructure and domestic manufacturing capacity to reduce reliance on foreign supply chains. This means higher demand for logistics hubs, warehouses, and advanced manufacturing facilities. For investors, this means industrial real estate is not only a financial asset but also a strategic one – closely tied to national economic priorities and long-term policy direction.

In periods of global uncertainty, international capital often gravitates toward stable jurisdictions that uphold the rule of law with transparent legal systems and strong property rights. Industrial real estate in these markets can benefit from increased investor demand, reinforcing its role as a store of value.

A long-term anchor

While innovation-driven assets will continue to shape the future of investing, they are best complemented by assets that offer durability, income, and real-world relevance. Industrial real estate provides this balance. It anchors portfolios with tangible value, benefits from structural economic trends, and responds to geopolitical realities in ways that purely digital or speculative assets cannot. For investors navigating an increasingly complex and volatile investment landscape, adding industrial real estate can help portfolios endure.

About the Author

Timur Tillyaev is an international investor and philanthropist. His business experience and interests span sectors including energy and renewables, finance, logistics, consumer goods, real estate, healthcare and tech. Timur is well-known as the founder of Abu Saxiy market, which he launched in 2006 and grew into the largest commercial and wholesale market in Uzbekistan before selling the business in 2017.

The post Industrial Real Estate is a Must-Have in a Volatile Investment Landscape appeared first on The European Business Review.

By Gary Ashworth

Tax planning is an integral factor for entrepreneurs looking to build wealth. Here, Gary Ashworth, author of Double Up Money Mastery, outlines six high-impact strategies founders should review in 2026, from optimising spousal allowances to leveraging reliefs, pensions and ISAs, ensuring more wealth is preserved, rather than lost to unnecessary tax.

Here’s an uncomfortable truth. Efficient tax planning isn’t merely a “nice to have” that will boost your returns – it’s a critical area of your business that can either make, or cripple, long-term wealth creation.

Just as returns compound for positive growth, so do taxes – only in the wrong direction. Every unnecessary pound paid to the taxman is a pound that never gets the chance to be reinvested, multiplied, or put to work building future wealth.

For example, if £100,000 is doubled ten times over a 30-year period using a tax-efficient structure, the end result is around £102 million. Apply a 24% capital gains tax to every gain along the way, however, and that figure collapses to roughly £37 million. That’s £65 million lost purely due to poor structuring from day one. The work, the risk and the execution are identical – yet the outcome is barely a third of what it could have been.

With the above in mind, let’s take a look at six key strategies founders can review and implement immediately in 2026.

Utilise the Marriage Tax Benefit to Leverage the Power of Two Allowances

One of the simplest tax wins is also one of the most commonly ignored: making full use of both spouses’ allowances. Each individual currently has a £3,000 annual capital gains tax allowance (as of 2024–25 following recent cuts), giving couples £6,000 per year between them.

On its own, this might sound inconsequential. Over time, however, particularly across multiple investment cycles, these allowances can materially reduce the tax you pay. Assets held jointly allow both partners to repeatedly deploy their allowances year after year.

The same logic applies to dividend allowances (now £500 each) and income tax bands. By allocating income and gains sensibly between spouses, you can prevent excess amounts being pushed into higher tax brackets unnecessarily.

Year-end focus: Revisit who owns what. Strategic transfers between spouses can ensure both of you fully use your allowances this year and position yourselves more efficiently for the future.

Why Business Asset Disposal Relief is a Hidden Goldmine

Formerly known as Entrepreneurs’ Relief, Business Asset Disposal Relief offers those who qualify the chance to pay just 10% capital gains tax on the first £1 million of qualifying gains – making it one of the most valuable tax breaks available to UK founders.

Following on from the tip on Marriage Tax Benefits mentioned above, what makes Business Asset Disposal Relief even more powerful is that your spouse or partner can also claim this relief on their own £1 million if they hold qualifying assets – potentially offering £2 million of gains taxed at just 10%.

The relief applies to disposal of all or part of a business, assets used in a business you’re closing down, or shares in a trading company where you hold at least 5% and work for the company.

For many founders, this equates to a tax saving of up to £180,000 on a £1 million gain. Yet time and again, entrepreneurs miss out — often because shareholdings weren’t set up correctly early on, or because activity and ownership conditions weren’t met due to lack of forward planning.

Year-end focus: Take a close look at your ownership structure now. If an exit could be on the horizon within the next one to two years, make sure both you and your spouse hold qualifying shares and satisfy the working requirements.

Beware The Exit Tax Trap

Can catch entrepreneurs off-guard.  If you’re considering relocating to a lower-tax jurisdiction like Dubai or Portugal, the UK has exit tax rules that can trigger immediate charges.

The “temporary non-residence” rules mean if you leave the UK for less than five complete tax years and then return, you may still be liable for CGT on gains made while non-resident. In some cases, you may be deemed to have disposed of assets immediately before leaving, triggering an immediate tax charge on unrealised gains.

Why Pension Contributions Offer Powerful Instant Returns

If you’re a higher-rate taxpayer, pension contributions offer one of the best immediate returns available anywhere. You get tax relief at your marginal rate – 40% or 45% for higher earners – and the pension grows tax-free thereafter.

Most individuals can contribute up to £60,000 per year, although this tapers for very high earners. Crucially, unused allowances from the previous three tax years can often be carried forward, enabling much larger contributions in profitable years.

For founders generating substantial profits from exits or business growth, maximising pension contributions provides immediate tax relief and long-term tax-efficient growth. If you’re extracting profits from your business, running them through pension contributions can dramatically reduce your tax bill.

ISA Wrappers: Low Annual limits – Large Long-term Impact 

A £20,000 annual ISA allowance can feel trivial relative to the wealth successful entrepreneurs generate. But the real power of ISAs lies in disciplined, repeated use.

When both spouses consistently invest their full allowance over decades – for example, over 30 years – the resulting tax-free growth becomes significant. For those coming off a strong year or post-exit, ISAs provide a flexible, zero-tax wrapper for part of that capital.

Stocks and Shares ISAs work particularly well for financial market investments. Unlike pensions, you can access the money at any time without penalties, and there’s no tax on withdrawals.

Why Professional Advice is an Invaluable Long-term Investment

This lesson tends to be learned the hard – and expensive – way. Trying to save money by avoiding specialist tax advice often backfires. The rules are intricate, frequently updated, and unforgiving when applied incorrectly.

The right tax advisor, such as one who specialises in entrepreneurial structures, not just basic compliance, will typically save you ten times their fee through strategic planning you wouldn’t have thought of yourself.

As year-end approaches, what matters most isn’t just optimising this tax year, but designing a framework that works over the next five, ten, or even twenty years of wealth-building.

Thoughts before the year end

1. Schedule a tax planning meeting with a specialist advisor before the end of December.
2. Review your shareholding structure for Business Asset Disposal Relief qualification.
3. Calculate any unused pension allowances from the past three years
4. Maximise your ISA contributions for both spouses before 5 April
5. Plan capital disposals to utilise both spouses’ CGT allowances
6. If considering relocation, get specialist international tax advice immediately

The gap between average and exceptional wealth outcomes rarely comes from finding smarter investments. More often, it comes from keeping more of the money you make. Tax planning may not be glamorous – but it frequently determines whether you achieve true financial freedom, or continue to quietly give millions away.

About the Author 

Gary Ashworth is the author of best-selling wealth-building guide Double Up Money Mastery, founder of the DUMM Club, a serial entrepreneur, investor and one of the world’s top 0.0077% wealthiest individuals.

The post Six Tax-Efficient Strategies to Review this Year appeared first on The European Business Review.

The role of finance has expanded far beyond bookkeeping and reporting. Today’s financial leaders are expected to act as strategic partners, risk managers, growth architects, and technology champions, all at once. Companies that fail to secure this level of expertise risk falling behind in an increasingly unforgiving marketplace.

The Expanding Role of Financial Leadership

Traditionally, finance directors and CFOs focused on budgets, forecasts, and regulatory compliance. In 2026, those responsibilities represent only a fraction of what the role demands.

Modern financial leaders are deeply embedded in business strategy. They influence pricing models, guide mergers and acquisitions, assess market expansion opportunities, and help shape organisational culture. They also play a critical role in data-driven decision-making, translating complex financial insights into actionable plans for boards and executive teams.

At the same time, finance leaders are now custodians of resilience. Supply chain disruptions, geopolitical uncertainty, and fluctuating consumer demand mean companies must be prepared for multiple scenarios. Senior finance professionals provide the analytical discipline and commercial perspective needed to build robust contingency plans.

In short, finance leadership has moved from operational support to strategic command.

Why 2026 Is a Turning Point

Several converging trends have made senior financial expertise more vital than ever.

First, capital efficiency is under intense scrutiny. Investors and lenders are demanding clearer paths to profitability and stronger governance. Organisations can no longer rely on growth alone; they must demonstrate sustainable financial performance. Experienced finance leaders bring discipline to cash management, cost optimisation, and capital allocation.

Second, regulatory pressure continues to increase across industries. From ESG reporting to data privacy and tax compliance, companies face growing administrative complexity. Navigating this landscape requires seasoned professionals who understand both the letter and spirit of evolving regulations.

Third, digital transformation has accelerated. Finance departments are adopting AI-driven analytics, automation platforms, and cloud-based systems. While these tools offer powerful advantages, they also introduce risk if poorly implemented. Senior financial leaders ensure technology investments align with business objectives and deliver measurable ROI.

Finally, workforce dynamics have shifted. Hybrid work, skills shortages, and changing employee expectations demand a more strategic approach to organisational planning. Finance leaders collaborate closely with HR and operations to align workforce investments with long-term growth goals.

The Cost of Getting It Wrong

Many businesses underestimate the consequences of inadequate financial leadership.

Poor forecasting can lead to cash flow crises. Weak governance can expose organisations to compliance failures. Reactive decision-making can result in missed market opportunities or costly acquisitions. In competitive sectors, even small financial missteps can compound quickly.

Startups and mid-sized businesses are particularly vulnerable. While they may not initially feel the need for executive-level finance expertise, rapid growth often exposes gaps in financial controls and strategic planning. Without senior guidance, scaling becomes chaotic rather than sustainable.

Conversely, organisations that invest early in experienced financial leadership tend to outperform peers in profitability, resilience, and investor confidence.

Strategic Hiring in a Competitive Talent Market

One of the biggest challenges in 2026 is finding the right financial leaders. The demand for high-calibre finance directors and CFOs continues to outpace supply, especially professionals who combine technical excellence with commercial acumen.

This is where partnering with an experienced finance director recruitment firm can make a meaningful difference. Specialist recruiters understand the nuances of senior finance roles and maintain access to passive candidates who are not actively job hunting but open to the right opportunity.

Beyond sourcing talent, these firms help businesses clarify role requirements, benchmark compensation, and assess cultural fit—critical factors when hiring at executive level.

Importantly, recruitment today is not just about filling vacancies. It’s about building leadership capability that aligns with organisational strategy.

Interim and Fractional Leadership: A Growing Trend

Another notable development in 2026 is the rise of interim and fractional finance directors. Many companies are opting for flexible leadership models, particularly during periods of transformation, fundraising, or restructuring.

Interim finance leaders bring immediate expertise without long-term commitment, making them ideal for managing transitions or special projects. Fractional arrangements allow smaller organisations to access senior-level guidance on a part-time basis, providing strategic oversight without the cost of a full-time executive.

These models enable businesses to remain agile while still benefiting from experienced financial leadership.

Once again, an experienced finance director recruitment firm like FD Capital Recruitment can help identify professionals suited to these flexible roles, ensuring continuity and quality during critical phases.

Aligning Finance Leadership with Business Outcomes

Effective financial leadership is not measured solely by technical competence. The most impactful finance directors are those who understand the broader business context.

They communicate clearly with non-financial stakeholders. They challenge assumptions while supporting innovation. They balance risk with opportunity. And they foster collaboration across departments.

In 2026, boards increasingly seek finance leaders who can act as trusted advisors—individuals who bring both analytical rigour and emotional intelligence to the table.

This alignment between finance and strategy drives better decision-making, stronger performance metrics, and improved organisational confidence.

Preparing for the Future Starts Now

Looking ahead, the pace of change shows no signs of slowing. Economic cycles will continue to fluctuate. Technology will evolve. Regulatory expectations will grow. Against this backdrop, businesses must prioritise access to senior financial leadership as part of their core growth strategy.

Waiting until challenges arise is rarely effective. Proactive investment in experienced finance professionals enables organisations to anticipate risks, seize opportunities, and build long-term value.

For companies navigating expansion, transformation, or increased complexity, working with an experienced recruitment firm** provides access to leadership talent that can make a measurable difference from day one.

Final Thoughts

In 2026, financial leadership sits at the heart of organisational success. The modern finance director is no longer confined to spreadsheets and balance sheets, they are architects of strategy, guardians of resilience, and drivers of sustainable growth.

Businesses that recognise this shift and act accordingly will be better positioned to thrive in uncertain markets. Those that overlook it may find themselves reacting to challenges rather than shaping their future.

Access to senior financial leadership is not just about filling a role. It’s about empowering your business with the insight, discipline, and strategic clarity needed to compete and win in a rapidly changing world.

The post Why Access to Senior Financial Leadership Matters More Than Ever in 2026 appeared first on The European Business Review.

On January 23, the Bank of Japan kept rates unchanged with an 8-to-1 vote. Governor Kazuo Ueda reiterated the possibility of future rate hikes in case economic projections materialize and the labor market continues to show positive signals. However, political pressure ahead of the snap elections on February 8 has favored a more accommodative policy, hence the decision to keep rates unchanged for now.

The yen’s extreme weakness stems from a series of factors that have created an uncertain landscape. A BOJ reluctant to raise rates while simultaneously launching an expansionary fiscal plan worth ¥21.3 trillion, including a temporary suspension of the 8% consumption tax on food products. Considering the country’s economic context, with a debt-to-GDP ratio exceeding 260% and a failed 20-year bond auction on January 20, serious doubts arise about Japanese fiscal sustainability. It is on these doubts that a sell-off in the bond market has erupted in recent days, with JGB yields reaching critical levels: the 10-year hit 2.38%, the highest since 1999, while the 40-year yield surpassed 4.20% for the first time. The 30-year stands at 3.63%.

If the yen continues to depreciate, Japanese authorities would be forced to intervene, as already happened in 2022 and 2024. Finance Minister Satsuki Katayama stated on January 16 that Japan has “free hands” to address excessive currency movements, while on January 23, the Federal Reserve Bank of New York conducted rate checks on USD/JPY, a signal typically interpreted as a prelude to possible interventions.

As some analysts hypothesize, the intervention could be carried out jointly with the United States (as already happened in 2011). In this case, the effectiveness could be greater, having a stronger psychological impact on investors. Usually, interventions by authorities on currency control have never yielded extraordinary results, except in the very short term. Looking back at the 2022 and 2024 interventions, the effects were only temporary because, as in today’s case, the yen was not “out of line” with fundamentals, or at least not excessively so. Current USD/JPY forecasts based on interest rate differentials would suggest levels between 148-152; the market is pricing instead around 154-160, reflecting expectations of expansionary fiscal policy and low rates.

At the moment, the exchange rate is at a crucial point and in a compression phase, trapped as we said by contrasting forces: a gradual monetary normalization by the BOJ and an expansionary fiscal stimulus, raising concerns about debt sustainability. The downward pressure remains strong, and as things stand, there are no prospects on the horizon for a strong revaluation (and therefore a collapse in the USD/JPY exchange rate).

However, the picture is constantly evolving, and the coming months will be decisive. The ratio was also later affected by the nomination of Kevin Warsh as the next Fed Chair, which led to an increase in the U.S. dollar and the DXY. The market movers to watch are the following:

• US Recession Risk: A marked deterioration in the American economy could trigger a flight-to-quality toward the yen and an unwinding of the carry trade. In this scenario, the price target for USD/JPY would be around 140-145.
• Escalation of Fiscal Tensions: A further deterioration in confidence regarding Japanese debt sustainability could fuel a vicious cycle of bond sell-offs and consequently further yen weakness, pushing USD/JPY beyond 160-165.
• Coordinated Intervention: A joint US-Japan action would have a greater impact and could potentially cause a violent squeeze of short positions.
• February 8 Elections: A landslide victory by Takaichi would consolidate expectations of expansionary economic policies, a sort of “Abenomics 2.0,” with further downward pressure on the yen. A weaker result could moderate expectations for fiscal stimulus. Currently, Polymarket prices Takaichi’s victory at 95%.

The post USD/JPY: What Could Drive the Next Move appeared first on The European Business Review.

By Dražen Kapusta and Terence Tse

Once seen as the immature younger sibling of Bitcoin, stablecoins are fast achieving de facto acceptance in a range of financial contexts worldwide. So remarkable is the stablecoin effect that central banks would be wise to adopt a proactive posture towards the phenomenon – and do it soon.

A recent study has sparked intense debate about Bitcoin’s potential role in central bank reserves by 2030.¹ While this may have dominated financial headlines, a more subtle but equally consequential transformation is occurring: stablecoins are fundamentally altering the plumbing of global finance in ways that directly impact central banking operations.

While Bitcoin may eventually achieve reserve status, stablecoins have already gained significant traction in mainstream financial infrastructure. As a result, central banks may face a new challenge: how to respond to the increasing influence of stablecoins over traditional monetary transmission mechanisms.

The infrastructure impact that central banks cannot ignore

The stablecoin market capitalisation has increased from $10 billion five years ago to about $260 billion today,² with forecasts reaching $2 trillion by 2028.³ This growth signifies more than just speculative investment; it demonstrates the real adoption of alternative payment systems that operate alongside traditional, government-regulated financial systems.

Major corporations, including Stripe, Visa, and Uber, have all signalled their intention to use stablecoins in running their businesses. But the impact extends beyond company efficiency. When Uber considers stablecoins for cross-border payments to reduce currency costs, it signals a shift in how multinational corporations manage liquidity – a development that directly influences foreign exchange markets and the effectiveness of monetary policy.

Central banking in a multi-rail world

Stablecoins can both strengthen dollar dominance globally and weaken central bank control over dollar flows.

The US dollar as a central reserve currency has been declining, dropping from 60 per cent in 2000 to 43 per cent in 2024.⁴ However, most stablecoins today are backed by US government bonds. If the demand for stablecoins continues to rise, the demand for US dollars will also increase. This could pose a dilemma for the Federal Reserve and other central banks in the future: stablecoins can both strengthen dollar dominance globally and weaken central bank control over dollar flows. Additionally, US dollar-pegged stablecoins are very likely to expand the dollar’s reach into countries with currency instability or capital controls. Yet, central banks cannot directly influence this using existing monetary policy tools.

Indeed, the US Treasury’s warning that $6.6 trillion in commercial bank deposits could migrate to stablecoins illustrates this challenge.⁵ Such migration would not necessarily reduce demand for dollars, but it would alter how central banks influence money supply and interest rate setting to manage the economy.

Regulatory frameworks: The missing piece

Recent legislation like the Genius Act in the US represents initial steps toward comprehensive stablecoin regulation, requiring issuer registration and precise reserve requirements. Nonetheless, regulatory frameworks remain incomplete. Central banks worldwide are confronting a key question: Should stablecoins be regulated as means of payment, securities, or banking products? How can monetary authorities preserve policy effectiveness when large transaction volumes move through unregulated digital channels?

The European Union’s Markets in Crypto-Assets (MiCA) regulation and similar frameworks developing worldwide indicate recognition of these challenges. However, implementation remains inconsistent, creating regulatory arbitrage opportunities that could centralise stablecoin issuance in jurisdictions with less oversight.

The Central Bank Digital Currency response

Many central banks are reacting to the rise of stablecoins with Central Bank Digital Currencies (CBDCs). On paper, CBDCs would provide government-issued digital alternatives that preserve central bank control over digital money systems. However, the timeline disconnect is considerable. While CBDCs remain primarily experimental, stablecoins are gaining real-world acceptance today. This creates an opportunity where private stablecoins could become so embedded in the financial infrastructure that CBDCs would struggle to compete for importance.

Stablecoins have already begun to influence their economic and policy landscapes. Countries like Nigeria and Turkey, where citizens have adopted stablecoins to achieve currency stability and evade capital controls, face difficult policy decisions. Strict restrictions and stringent controls on stablecoins could push activity underground, while broader acceptance might weaken domestic monetary policy.

Stablecoins present several risks for central bank consideration:

• Concentration risk: The stablecoin market remains highly concentrated among a few issuers. Circle’s USDC and Tether’s USDT dominate market share, creating single points of failure that could pose systematic risk implications.
• Backing asset quality: While designed for stability, the assets supporting stablecoin reserves vary considerably among issuers, from government bonds to algorithm-driven supply and demand. This could pose a moral hazard problem for central banks and further heighten systematic risk.
• Operational dependencies: Increasing corporate reliance on stablecoins for treasury operations generates new systemic dependencies. Any payment system disruptions related to stablecoins could impact real economic activity more directly than traditional cryptocurrency volatility.
• Cross-border surveillance: Stablecoins enable cross-border transactions outside conventional correspondent banking networks, potentially complicating efforts to monitor capital flows and enforce sanctions or capital controls.

Strategic considerations for central banks

With stablecoins becoming ever more mainstream, central banks might consider different strategic engagement approaches, including:

• Enhanced monitoring: Building advanced surveillance systems to track stablecoin transactions and their possible influence on the transmission of monetary policy and financial stability.
• Regulatory coordination: Working with international counterparts to create consistent global standards that prevent regulatory arbitrage while preserving the advantages of innovation.
• Infrastructure partnership: Exploring ways to integrate stablecoin infrastructure with existing systems to enable better oversight while improving efficiency.
• Policy tool development: Investigating new monetary policy instruments that can effectively influence economic activity within a multi-rail financial system.

Coexistence, not competition

At their current development trajectories, stablecoins are here to stay. Central banks must evolve from viewing stablecoins as competitive threats to recognising them as tools that can improve overall system functionality when properly regulated. These authorities face a choice between reactive regulation after issues arise or proactive measures that direct development towards outcomes aligned with monetary policy objectives. Financial progress rarely follows a straight path – gold faced scepticism and volatility before achieving reserve status.⁶

Stablecoins pose a similar, yet more immediate, challenge. Their adoption is driven by genuine utility rather than speculative investment, making their growth path more predictable but also more irreversible. Central banks that understand and prepare for this shift will be better equipped to maintain the effectiveness of their monetary policies in an increasingly digital financial landscape. The question is not whether stablecoins will reshape central banking – they are already doing so. The real question is whether monetary authorities will help steer this transformation towards outcomes that preserve financial stability while embracing the benefits of technological innovation.

About the Authors

Dražen Kapusta is the founder of COTRUGLI Business School and HashNET. He leads the COTRUGLI initiatives, focusing on AI-augmented Vanguard leadership, NEO Finance, blockchain, SDGs, and digital sovereignty. Dražen advises UN and EU bodies on AI and blockchain strategies.

Terence Tse is Professor of Finance at Hult International Business School and co-founder at the AI Native Foundation. He is also co-founder and Executive Director of Nexus FrontierTech.

References

1. Laboure, Marion and Siazon, Camilla (2025) Bitcoin vs. Gold: The Future of Central Bank Reserves by 2030, Deutsche Bank Research Institute

2. Federal Reserve Bank of New York (2025) Stablecoins and Crypto Shocks: An Update

3. Kendrick G., et al. (2025) Stablecoins Supply Projections and Treasury Market Implications, Standard Charter Digital Assets Research

4. Laboure, Marion and Siazon, Camilla (2025) Bitcoin vs. Gold: The Future of Central Bank Reserves by 2030, Deutsche Bank Research Institute

5. Willems, Adam (2025) “The Loophole Turning Stablecoins Into a Trillion-Dollar Fight”, Wired, September 3

6. Laboure, Marion and Siazon, Camilla (2025) Bitcoin vs. Gold: The Future of Central Bank Reserves by 2030, Deutsche Bank Research Institute

The post Could Stablecoins Reshape the Digital Future of Central Banking? appeared first on The European Business Review.

By Oliver Binz

Recent research suggests that profitability forecasts often fail to outperform simple benchmarks. New evidence shows that this shortcoming stems not from accounting analysis itself, but from how it is applied. By combining structured accounting frameworks with modern machine learning, profitability forecasting becomes more accurate, informative, and economically meaningful.

For decades, financial statement analysis has faced a troubling conclusion: detailed accounting-based profitability forecasts frequently fail to outperform simple rules of thumb. In many empirical studies, a naïve assumption, such as that next year’s profitability will closely resemble this year’s, matches or exceeds the performance of more sophisticated models built from financial ratios.

If correct, this finding would call into question a central pillar of fundamental analysis. A closer look, however, suggests that the problem lies not in accounting itself, but in the statistical tools traditionally used to implement it.

The Promise (and Frustration) of Profitability Decomposition

Decomposing profitability into its underlying drivers has long been a cornerstone of financial analysis. By separating operating performance from financing effects, and margins from asset efficiency, analysts can better understand what is driving profitability and whether earnings are likely to persist. In simple terms, this approach breaks profitability into its key building blocks, such as operating performance, efficiency, and financing effects, to understand what is really driving results.

A common approach in financial analysis is to break profitability into its underlying drivers to better understand performance. While intuitively appealing, this approach has often failed to improve forecasts in practice, leading many to question how useful detailed financial analysis really is.

The Missing Ingredient: Nonlinearity

The core issue lies in the assumption of linearity.

Profitability dynamics are inherently nonlinear. Financial leverage enhances returns only when operating performance exceeds borrowing costs. Margins and asset turnover interact differently across industries and business models. Small changes in one component can have vastly different implications depending on the level of another.

Linear models struggle to capture this complexity. They impose constant, additive relationships even when economic intuition suggests otherwise. As a result, much of the information embedded in financial statements remains unused.

This is where modern machine learning techniques become relevant.

Machine Learning, with Discipline

Rather than abandoning structure in favor of opaque “black box” prediction, a more productive approach combines established accounting frameworks with machine learning methods designed to capture nonlinear and interactive relationships.

Gradient-boosted regression trees provide such a tool. They allow the data to reveal complex interactions among familiar accounting drivers, while remaining anchored in accounting logic. The result is not an indiscriminate search across thousands of variables, but a disciplined model that learns how profitability components work together in practice.

Using more than sixty years of firm-level data, out-of-sample forecasts of return on common equity were generated and compared with standard benchmarks. The results show that machine learning improves forecast accuracy relative to both random-walk models and linear regressions, especially when paired with detailed profitability decomposition. The largest gains come from reducing large forecasting errors where traditional models perform poorly.

What Actually Improves Forecasts

A structured framework also makes it possible to draw practical conclusions about how analysts should use financial statements.

First, detail matters only when used appropriately. Breaking profitability into finer components improves forecasts only when nonlinear estimation is applied. Under linear models, additional detail can actually reduce accuracy, helping explain why earlier studies reached pessimistic conclusions.

Second, not all earnings components are equally informative. Forecast performance improves when attention is focused on core, recurring items, while transitory or unusual components are downweighted. This aligns with long-standing analytical intuition, but the evidence shows that the benefits are tangible.

Third, history matters, but only to a point. Incorporating one to three years of past financial data improves forecast accuracy by capturing firm-specific dynamics and business cycles. Beyond that horizon, the benefits diminish as firms evolve and business models change.

Once this structured, nonlinear approach is in place, adding industry classifications or macroeconomic indicators contributes little additional forecasting power. Much of that information is already embedded in financial statements themselves.

Why Investors and Analysts Should Care

Improved forecasts are only valuable if they contain information not already fully reflected in market prices or analyst expectations. To assess this, the relationship between forecasted profitability and future stock returns was examined.

The results are economically meaningful. Even after controlling for standard asset-pricing factors and consensus analyst forecasts, profitability predictions remain strongly related to subsequent returns. Firms with greater forecasted improvements in profitability experience significantly higher future stock performance.

The forecasts also predict future changes in profitability beyond what analysts anticipate. This suggests that structured machine learning extracts information from financial statements that markets and analysts do not fully incorporate.

Why Structure Still Matters in an AI World

Much of today’s enthusiasm for AI in finance emphasizes scale, with more data, more predictors, fewer assumptions. While powerful, this approach often sacrifices interpretability, particularly in accounting, where variables are tightly linked by design.

A structured approach offers an alternative path. By combining accounting-based frameworks with machine learning, it is possible to achieve both predictive accuracy and economic insight. Accounting structure grounds the model, while machine learning captures relationships that linear tools cannot.

This balance is essential for decision-makers who must understand, explain, and act on forecasts, not merely compute them.

What This Means for Business Leaders

For executives, the implications are practical rather than technical. Forecasting accuracy depends less on adopting ever more data and more on using the right analytical tools for the complexity of modern business models. Financial statements already contain rich strategic information, but much of it remains underutilized when linear metrics dominate planning and performance reviews. Leaders who combine accounting discipline with advanced analytics are better positioned to anticipate turning points, identify hidden risks, allocate capital more effectively, and challenge overly confident consensus forecasts before markets do.

Rethinking the Role of Fundamental Analysis

The broader implication is clear. The perceived failure of accounting-based profitability forecasting is not a failure of accounting, but a failure of the tools used to analyze it.

When methods capable of capturing the nonlinear reality of business performance are applied, financial statement analysis proves both relevant and powerful. Artificial intelligence does not replace fundamental analysis; it enhances it.

The future of profitability forecasting lies not in choosing between structure and prediction, but in combining the two.

About the Author

Oliver Binz is an Assistant Professor of Accounting at ESMT. His interests lie at the intersection of equity valuation, macroeconomics, and economic history. Some of his recent projects explore how macroeconomic developments affect managers’ and consumers’ decision-making, and the resulting consequences for corporate investment efficiency and profits. His research has been published in leading academic journals, including the Journal of Accounting Research, the Journal of Accounting and Economics, and The Accounting Review. 

The post Why Profitability Forecasting Needs Both Accounting and AI appeared first on The European Business Review.

Finance can feel intimidating—but it becomes human when paired with storytelling, community, and confidence. In this installment, we sit down with Simran Kaur, founder of Friends That Invest, a multi-million-dollar money media company. Through her story and insights, we explore how Gen Z women are learning to invest, take control of their wealth, and reshape their relationship with money.

You have worn so many hats, from founder to columnist and community builder. Which version of yourself do you think your younger self would be most surprised to see?

My younger self would be most surprised to see me as someone who is financially free and using that freedom to lead. Not in the traditional sense, but as someone who speaks openly about money, builds community, and stands confidently in her values. Growing up, I was curious and driven, but I didn’t always see myself as someone who would take up space or have a voice that others listened to. The idea that financial freedom could give me both independence and the ability to help thousands of people feel more confident with investing would have felt almost unbelievable.

Was there a specific moment when you realized that your work was growing into a global movement rather than just a passion project? What did that moment feel like for you?

I love taking something complex and making it feel relatable, because that’s often the moment people realise, “I can do this too.”

There wasn’t one single moment, but there was a shift. I remember opening messages from people in completely different countries saying they had started investing for the first time because of something I shared. That’s when it clicked that this was bigger than me. It felt equal parts grounding and overwhelming. A real sense of responsibility, but also deep gratitude. It made me want to do the work even more thoughtfully.

Your work blends finance, storytelling, and culture in a way that feels fresh and approachable. Which part of that mix brings you the most joy in your day-to-day life?

Storytelling, without a doubt. Finance can feel cold or intimidating, but when you wrap it in real stories, personal experiences, cultural context, and everyday language, it becomes human. I love taking something complex and making it feel relatable, because that’s often the moment people realise, “I can do this too.”

Many young people feel intimidated by investing. What is one belief about money or wealth building that you wish every Gen Z woman could instantly rewrite?

That investing is only for people who already have money, confidence, or special knowledge. I wish every Gen Z woman could rewrite that belief and understand that investing is a learned skill, not a personality trait. You don’t need to be fearless or wealthy; you just need access to information and the belief that you’re allowed to start.

You have created communities that feel welcoming and empowering. Can you share a light or uplifting story from your audience that reminds you why you love doing this work?

We get messages every day, but one that always stands out to me is when women share that they finally feel like they can be part of financial conversations. Whether that’s understanding what they’re seeing online or feeling confident engaging with money topics in their day-to-day lives. We hear so many amazing stories of women building financial confidence and either becoming financially free or actively working towards it. Those moments are a constant reminder that this work isn’t really about numbers; it’s about confidence, autonomy, and people seeing themselves differently.

Your platforms have helped thousands of people understand investing more clearly and humanly. What has this journey taught you about leadership and using your voice with intention?

It’s taught me that leadership doesn’t have to be loud or perfect. It’s about consistency, honesty, and being willing to say, “I’m still learning too.” Using your voice with intention means understanding the impact your words can have, especially when people are looking to you for guidance.

If a close friend told you they wanted to start something meaningful but didn’t know where to begin, what honest and unfiltered advice would you give them?

Start before you feel ready. Clarity comes from action, not overthinking. You don’t need the full plan; you just need the first step. And be prepared for it to evolve. Most meaningful things don’t look polished at the beginning, and that’s not a flaw; it’s part of the process.

As you think about the next chapter for yourself and your community, what is one big or unconventional dream you hope to bring to life?

I’d love to build something that supports financial confidence at every stage of life, not just starting to invest, but navigating careers, building wealth sustainably, and feeling empowered long term. The dream is to keep expanding the conversation around money so it feels normal, inclusive, and human, no matter where you’re starting from.

Executive Profile

With only 15–25% of women investing, recognised angel and venture investor Simran Kaur founded Friends That Invest, a multi-million dollar money media company. Host of the world’s #1 investing podcast for women, Forbes 30 Under 30 alum, and 2024 Young New Zealander of the Year, Simran’s mission is simple: put money into women’s hands.

The post Empowering Gen Z Women to Build Financial Confidence with Simran Kaur appeared first on The European Business Review.

By Hakan Yurdakal

Financial institutions face a fast-changing, emotionally complex consumer landscape. Hakan Yurdakal explains how AI transforms insight, visibility, and trust by uncovering behavioural drivers, monitoring real-time sentiment, and optimising product representation for generative AI channels. Combining intelligence with integrity, AI empowers firms to deliver personalised, transparent, and human-centred financial experiences.

In an era of rapid digital acceleration, financial institutions face an extremely complex field of consumers. Customers want faster service, personalised experiences and transparent communication, yet remain concerned about data use, privacy and the role technology plays in financial decision-making.

For banks, insurers, investment firms and fintechs, the challenge is no longer simply adopting technology but ensuring it strengthens trust and human understanding.

Artificial intelligence (AI) has become central to this transition. While often associated with automation or risk modelling, AI is now emerging as a powerful engine for consumer understanding.

It offers large-scale, realtime behavioural insight that helps financial institutions design better products, communicate clearly and build relationships grounded in empathy and transparency.

Beyond demographics: behavioural insight at depth and scale

Traditional segmentation, such as age, income and geography, no longer reflects how people truly behave. A 60-year-old digital-first investor may share more behavioural traits with a 25-year-old crypto enthusiast than with her demographic peers. Similarly, a high-income professional may be as risk-averse as a rural entrepreneur.

AI enables institutions to uncover these nuances. By analysing thousands of data points, from customer conversations to product browsing patterns, it reveals the signals that truly matter:

• What motivates trust?
• Which emotional triggers influence financial choices?
• What features resonate with specific mindset groups?
• Which messages reassure, and which create friction?

This shift from demographic to behavioural segmentation is reshaping how financial products are built, marketed and delivered.

Decoding the emotional layer of financial decisions

Financial decisions are deeply emotional. People save, invest and insure not just with logic…but with fear, aspiration and uncertainty. Traditional research tools struggle to capture this complexity at scale. Surveys often prompt rationalised responses and focus groups rarely reflect real-world behaviour.

Modern AI overcomes these limits: it can detect tone, sentiment and emotional cues across thousands of interactions. Machine-learning models can pinpoint hesitation moments in customer journeys, revealing where confusion or anxiety arises. Generative AI can simulate interactions to test messaging and predict behavioural responses before a campaign launches.

Examples include:

• A mortgage lender testing campaign language to identify which phrases inspire trust and which overwhelm.
• An insurer uncovering emotional friction in claims conversations to improve communication during stressful events.
• A wealth-manager tailoring risk explanations to different investor mindsets.

Understanding why customers behave the way they do enables financial brands to create more human-centred experiences.

Real-time knowledge in a changing environment

Consumer expectations evolve rapidly in response to economic shifts, regulation and global events. Traditional research cycles cannot keep pace. AI transforms insight from an occasional exercise into a continuous, real-time capability. Institutions can monitor:

• Fluctuations in consumer confidence
• Emerging expectations around credit, savings or advisory support
• Brand and competitor perception
• Trust signals across touchpoints

This dynamic intelligence helps leaders make faster, more confident decisions.

AI provides more than Insight: it brings visibility

As well as behavioural insight, there is another evolution that is redefining how consumers discover financial products. Rather than relying solely on traditional search, many financial providers (along with many other industries around the world) are beginning to consider how their content is interpreted by generative AI tools such as ChatGPT or Gemini, ensuring their products and services are accurately represented when users ask for advice.

Where search engines once presented long lists of options, generative AI can now provide a single, synthesised answer. This makes AI a gatekeeper of visibility. Products that are described clearly, presented transparently and structured in ways AI can easily interpret are more likely to appear in these generated answers. Others may never be shown, even if they offer competitive value.

This dynamic has prompted the rise of Generative Engine Optimisation (GEO), a strategic effort to ensure offerings appear in AI-generated recommendations. While this creates competitive advantage, it also increases accountability. Visibility must align with suitability, not just optimisation tactics.

Opportunity and responsibility

The combination of behavioural insight and AI-driven visibility gives financial institutions significant opportunity to:

• reduce decision friction
• strengthen personalisation
• increase product relevance
• improve financial education and clarity

The future: insight with integrity

The institutions that excel in the coming decade will combine deep behavioural intelligence with responsible AI-driven visibility: understanding consumers is no longer enough; financial brands must ensure that the way they influence choices is transparent, fair and aligned with long-term wellbeing.

This is where next-generation platforms such as BoltChatAI become essential, providing real-time behavioural insight, emotional understanding and ethically governed intelligence designed specifically for financial decision-making.

By helping teams understand why consumers behave the way they do, and by delivering AI-ready content that improves product visibility without manipulation, BoltChatAI supports institutions in building trust that lasts.

The leaders of tomorrow will be those who use AI not only to be more visible or efficient, but to be more trusted, more human and more aligned with the real needs of consumers.

About the Author

Hakan Yurdakal is CEO of Bolt Insight. Hakan has 15 years of marketing strategy, brand positioning, product development and transformation experience at Unilever UK. He studied MSc. Business Management at University of Warwick.

The post Understanding and Influencing Today’s Financial Consumer: How AI Is Rewriting Insight, Visibility and Trust appeared first on The European Business Review.

Why Speed Became Europe’s Competitive Edge

Real-Time Rails and Market Incentives

Europe’s push toward real-time payments started with infrastructure, but it accelerated because incentives were aligned across the ecosystem. Interbank systems capable of settling transfers in under ten seconds moved from experimental pilots into everyday use across dozens of countries. Merchants gained faster access to cash flow, marketplaces could pay sellers and gig workers without delay, and consumers developed trust in account-to-account payments as a viable alternative to cards.

This environment also fueled innovation around instant checkout experiences. In gaming, entertainment, and digital services, platforms that combine fast onboarding with immediate payments gained an edge. Payment ecosystems discussed in resources like zimplerkasinot.net illustrate how speed at checkout directly influences conversion and retention in high-frequency digital use cases. Once users experience near-instant confirmation and settlement, slower methods quickly feel outdated.

Regulatory Catalysts: PSD2, SCA, and Open Banking

Regulation played a central role in setting the pace. PSD2 forced banks to open access to accounts, while Strong Customer Authentication raised security expectations without banning convenience. Open banking APIs standardized how third parties connect, replacing bespoke integrations with scalable models.

Crucially, regulators balanced speed with accountability. Authentication had to be strong, data flows auditable, and consumer consent explicit. This ensured that faster payments did not undermine trust. By pairing access with responsibility, Europe created conditions where innovation could move quickly without increasing systemic risk.

Infrastructure Lessons From Europe’s Instant Payment Systems

Always-On Settlement and Smart Limits

True speed requires availability beyond business hours. Europe’s instant payment rails operate 24/7, including weekends and holidays. This forced banks to rethink liquidity management and transaction limits. Instead of blanket caps, institutions adopted tiered limits based on customer history, transaction context, and risk profiles.

For global markets still modernizing, the lesson is clear. Speed is not just about clearing time, but about designing limit frameworks that protect stability while enabling real-time use at scale.

ISO 20022 and Interoperability by Design

A shared data language reduced friction dramatically. ISO 20022 messaging standards allow richer transaction data, improving reconciliation, fraud detection, and reporting. Providers entering new markets could reuse core components instead of rebuilding systems for each scheme.

Interoperability also unlocked secondary benefits. Small businesses gained better invoice matching, platforms improved analytics, and risk engines received higher-quality signals. Building with a common standard from the outset proved far cheaper than retrofitting later.

Request to Pay and Account-Based Checkout

Speed is also about interaction design. Request to Pay lets merchants send structured payment prompts that users approve directly in their banking apps. Account-to-account checkout flows replace card forms with bank-branded authentication screens, improving trust and approval rates.

These models show that instant payments succeed when users feel in control. Clear amounts, clear consent, and familiar interfaces reduce hesitation and shorten the path from decision to confirmation.

Risk Controls That Keep Fast Payments Safe

Strong Authentication Without Excess Friction

Europe demonstrated that security does not have to slow payments down. Context-aware authentication applies extra checks only when risk signals demand it. Repeat payments, trusted payees, and low-risk transactions flow through with minimal interruption, often using biometrics handled directly on the device.

This selective approach preserves speed while maintaining compliance, proving that Strong Customer Authentication works best when paired with intelligent exemptions.

Fraud Intelligence and Shared Signals

Fraudsters move across platforms, so defenses must do the same. European providers increasingly share high-risk indicators, device fingerprints, and mule account intelligence through industry networks. Combined with richer transaction data, this collaboration sharpens decision-making at authorization time.

The result is faster approvals without higher loss rates, a balance many regions still struggle to achieve.

Faster Dispute Visibility

Instant payments surface problems sooner, which pushed the industry to modernize dispute handling. Real-time monitoring flags anomalies quickly, while standardized data makes evidence gathering easier. Consumers benefit from quicker resolution paths, and merchants gain clearer visibility into transaction status.

Engineering for Low-Latency Payments

API-First and Event-Driven Architecture

Speed at checkout depends on speed behind the scenes. European fintech leaders favor API-first designs, event-driven workflows, and cloud-native infrastructure. These choices enable rapid scaling, graceful failure handling, and continuous iteration without breaking integrations.

Latency budgets are defined upfront, ensuring every component contributes predictably to the overall response time.

Resilience Through Smart Routing

Not all payment paths perform equally at all times. Smart routing engines select optimal pathways based on success rates, congestion, and cost. Automatic retries and active-active failover setups keep systems responsive even during outages or traffic spikes.

Reliability becomes a feature when users never notice the complexity beneath the surface.

Observability Tied to User Experience

Advanced monitoring focuses on what users actually feel. Teams track high-percentile latency, approval rates, and end-to-end checkout times rather than averages. Clear service-level objectives connect engineering metrics to business outcomes, closing the loop between performance and customer satisfaction.

Merchant and Consumer Experience in Practice

UX Patterns That Match Payment Speed

Fast rails demand fast interfaces. Progress indicators should reflect real steps, confirmations should appear instantly, and fallback paths must be obvious. When design matches infrastructure speed, users perceive the system as reliable rather than rushed.

Instant Payouts and Transparency

For merchants, speed means liquidity. Dashboards showing payout timing, limits, and settlement status help finance teams plan with confidence. Consumers benefit from real-time notifications that confirm when funds leave or return to their accounts, reducing uncertainty and support queries.

Pricing That Encourages Adoption

Pricing models matter. Narrowing the cost gap between instant and slower methods nudges merchants to route more volume through real-time rails. Bundling fraud tools and reconciliation features highlights total value, not just transaction fees.

Applying Europe’s Lessons Globally

Global providers can adapt these insights incrementally. Prioritizing instant rails in high-demand markets, collaborating early with regulators and banks, and investing in shared standards accelerates progress. Clear metrics around settlement time, approval rates, and refund latency keep teams focused on outcomes rather than features.

Strategic analysis from sources like European Business Review highlights how fintech ecosystems that align regulation, technology, and incentives consistently outperform fragmented approaches. Europe’s experience shows that speed is not a single upgrade, but a system-wide commitment.

In the end, the lesson is straightforward. When infrastructure, regulation, and design all point in the same direction, speed becomes sustainable. Payments move faster, trust remains intact, and the entire ecosystem benefits from momentum rather than friction.

The post What European Fintech Can Teach the Global Payments Industry About Speed appeared first on The European Business Review.

Investing in U.S. real estate remains compelling for international buyers, even as information gaps persist across markets. This editorial examines why global interest endures, the structural forces underpinning long-term demand, and how selective industrial and technology trends reinforce—rather than define—the market’s appeal.

International investors have long regarded U.S. real estate as one of the world’s most stable and transparent asset classes. Yet for non-U.S. residents, accessing clear, reliable information remains surprisingly challenging. Financing rules, tax considerations, and state-level regulations are often fragmented, inconsistent, and written primarily for domestic homeowners rather than global investors.

As Donald Klip, Founder of America Mortgages, notes: “Investors assume the U.S. market is simple because it’s large and well-documented. But for foreigners, the information is scattered and contradictory. The challenge isn’t interest—it’s clarity.”

Despite these obstacles, international investment remains strong with foreigners purchasing 44% more homes for year-ending March 2025. Much of this resilience stems from fundamentals that have persisted across decades, cycles, and political shifts.

Table 1: Long-Term U.S. Residential Market Performance (Illustrative)

Why the U.S. Remains Globally Attractive

The foundation of foreign demand lies in the sheer depth and diversity of the U.S. housing ecosystem. Unlike countries where real estate activity is concentrated in a handful of cities, the U.S. supports a vast network of thriving regional markets. Household formation continues to grow, supported by demographic expansion and immigration. This consistent increase in renters and buyers provides a reliable base for long-term investment and stabilizes demand even during economic downturns.

Equally important is the breadth of rental markets. Investors can choose between high-growth Sunbelt metros, university-anchored towns, family-oriented suburban communities, and mature coastal cities. Each offers distinct yield profiles, risk dynamics, and demographic drivers.

A uniquely powerful feature of the U.S. system is access to long-term, fixed-rate financing. The 30-year fixed mortgage—virtually unavailable in most advanced economies—allows investors to lock in predictable repayment costs, insulating them from interest-rate volatility. Klip emphasizes, “Predictability is incredibly valuable. Being able to fix financing for three decades gives foreign buyers confidence they simply can’t get elsewhere.”

Education is another significant motivator. With many of the world’s top universities based in the United States, overseas buyers often acquire homes near campuses years before their children enroll. Klip notes, “Education is one of the most overlooked motivators for real estate investment. A property near a university is both a practical asset and a long-term store of value.”

Table 2: Estimated Job Creation from Industrial & Technology Investment

One of the most striking trends in recent years is the rise in rental yields within high-growth technology corridors. Markets experiencing large inflows of semiconductor workers, EV-factory employees, and AI‑infrastructure teams—such as parts of Phoenix, Columbus, Austin, Huntsville, and Atlanta—are now reporting gross yields in the low to mid‑teens for certain asset classes, particularly single-family rentals and newer build‑to‑rent communities. Unlike traditional gateway cities, where yields often compress due to high entry prices, these emerging metros offer a combination of strong job creation, population inflows, and constrained housing supply. As Klip observes, “When thousands of high‑skilled jobs migrate into a city faster than homes can be built, rents adjust almost immediately. That’s why you’re seeing yields in the teens—and in many cases, they’re expected to climb even higher.” These dynamics suggest that technology-driven growth is not only reshaping local economies but also creating a new class of high-yield U.S. rental markets that foreign investors are increasingly drawn to.

Technology and Reshoring: A Secondary Accelerator

While the enduring strengths of the U.S. market remain the principal draw, a new wave of industrial investment is amplifying demand in targeted regions. Semiconductor fabs supported by the CHIPS Act, electric-vehicle and battery plants across the Midwest and Southeast, and large-scale AI-driven data center expansions are transforming local economies.

Still, these developments should be viewed as contributors, not catalysts. The core attraction of U.S. real estate existed long before the current wave of investment—and will continue long after it.

The Information Gap for Foreign Buyers

Despite the strength of the market, the information landscape remains fragmented. Regulations differ not just by state but by county and municipality. Insurance, taxes, zoning, and rental rules vary widely. Most U.S. mortgage resources are designed for domestic buyers, leaving foreign investors with little authoritative guidance.

“The U.S. market doesn’t require perfect information—just reliable information,” Klip concludes. “Once foreign investors understand the fundamentals, the opportunities become clear very quickly.”

About the Author

Donald Klip is the Co-founder of America Mortgages, a firm recognized for reshaping access to U.S. real estate financing for global investors. He has been instrumental in designing loan programs that provide up to 80% LTV, eliminate the need for U.S. credit, and accept qualification through foreign income or property rental income.

The post Why the U.S. Housing Market is Becoming a Priority for International Investors appeared first on The European Business Review.

By Eugenia Mykuliak

Before shifting from B2B to retail, fintechs must ask themselves the big question: are they truly ready? Retail markets have their advantages and pay-offs, but making this transition is not a simple matter. To succeed, you need a mindful approach that will allow your business to scale in B2C without breaking what was already there for B2B. 

Every B2B company eventually faces a moment of contemplation that maybe it’s time to try aiming for retail clientele. After all, if the brand is solid and the product works, why not reach the millions of people using fintech every day — whether through neobanking, payments, or trading platforms — instead of just a few dozen enterprise clients? 

The appeal for further growth and expansion of the customer base is very understandable, but putting that idea into practice is not so simple. Because the truth is, going B2C isn’t just about adding a new audience. Moving from serving businesses to serving individuals means rethinking everything: compliance rules, customer experience, even internal culture. A company has to rebuild everything from the ground up.

So if your business has come to that stage, the real question you have to ask isn’t whether you “want” to go retail — it’s whether you’re “ready” for it. 

Check Readiness Through Numbers — Don’t Just Make a Leap of Faith 

One of the biggest misconceptions one can have here is to assume that enthusiasm can make up for readiness. It doesn’t. A company is truly ready for a B2C transition only when its fundamentals — financial, technological, and structural — can withstand a completely different pace and scale. And to make sure of that, you need to check hard numbers. 

Let’s look at finances first. Proper money flow is essential for the health and functioning of any business, but retail margins are generally thinner compared to institutionals, and customer acquisition costs are high these days.

If you’re looking to enter this sector, you should be prepared to see profits per user dropping by 30-50%. At least, at the beginning, while you’re still building up your client base anew. That means your company must have strong financial reserves and the ability to sustain longer payback periods before you can break even.

Another prominent factor to think about is infrastructure. Keep in mind that supporting a relatively minor number of enterprise clients is a world apart from serving millions of individual users. You need to rebuild your entire support system in order to make it work.

Automation and advanced CRM tools are going to be necessary instruments from day one to make this transition easier. Without them, even the best strategy you can develop will buckle under operational pressure when you try to put it into practice. That’s how big a difference in scale we’re talking about here. 

Finally, internal structure matters, and much more so than many teams expect. Transitioning to serving all those above-mentioned millions of retail clients strains not just the technology, but the personnel as well. Why? Because the rhythm of work changes completely.

You need to develop a whole new playbook, and every department — sales, support, compliance, marketing, and so on — needs to be rearranged to operate in sync. But all of them have their own KPIs and focus areas, and for institutional services, those focuses are very different. Without taking the time to adjust workflows and priorities, operations will clash and cause chaos instead of efficiency. The company won’t be able to get anything done. 

Get Ready to View Compliance as a Core Function

As I already briefly mentioned above, fintechs in retail face a very different compliance landscape than in the B2B space. The relevant frameworks and consumer protection laws fundamentally reshape how you should approach risk management. 

In B2B, compliance often revolves around counterparties — verifying institutional clients, maintaining reporting standards, and ensuring partner-level data protection. In B2C, the focus flips entirely because every individual user becomes a regulated entity in your system. And any misstep in handling their data or their rights can be cause enough for lasting reputational damage. 

Frameworks like DORA or GDPR demand airtight data governance but also transparency about how user information is handled. Consumer protection frameworks add another layer of complication, requiring clear lines of communication, fee disclosure, and easy dispute resolution — all of which require automation and real-time monitoring to stay compliant. 

To get it right, fintechs must ensure strict segregation of client funds, maintain real-time updates and disclosures, and reinforce cybersecurity protocols capable of reacting instantly to incidents.  

In short, compliance in retail isn’t about passing audits — it’s about building trust into your very foundations and proving your reliability with every single interaction you have with users. 

Grow Retail Without Breaking Your B2B Core 

Based on everything we’ve covered above, it should feel clear that for a business to successfully expand into retail, it’s not enough to simply “add” a B2C stream alongside its existing ones.  

You have to pretty much build an entirely new business unit to sustain efforts in this direction. One with its own dedicated team, KPIs, risk framework, and data infrastructure. Such clear separation is meant to protect both sides of the equation: ensuring the retail arm can grow, but without destabilizing the B2B backbone. It’s about focus, control, and direction. 

A retail operation moves fast, measures success differently, and depends on real-time data to adjust to customer needs. Meanwhile, a B2B division is more likely to run on long-term relationships, negotiated contracts, and tailored services. Trying to run both on the same set of processes will inevitably lead to tensions. Or worse, cause bottlenecks and lead to the quality of service dropping on both sides. 

That’s why separating the retail and corporate structures is a necessary safeguard. The can — and should — still be aligned in overarching brand values and vision, but everything else simply works too differently to run on the same rails. 

How to Balance Branding Across Corporate and Retail Audiences 

Finally, one last crucial thing that we must cover is how moving to the retail sector means learning to speak a whole new language. 

Broadly speaking, what B2B clients value most in their partnerships is precision and long-term stability. Retail users, on the other hand, respond far more readily to clear explanations, simplicity in operations, and speedy services. As a result, you need to adjust how you talk to both of these very different groups.

Some companies solve this by creating separate branches — one for corporate clients and one for consumers. Others go for a unified identity but develop distinct communication strategies for both groups. Either approach can work, and only you can decide which is better for you.

But one thing I must emphasize is consistency. Even if you speak in a different tone, both institutional and retail audiences need to trust you. Without that, you won’t get results. And that means that the quality of your services, communications, and overall brand values must stay on an equal level, no matter which of the two groups you’re dealing with. 

Sending out a blurred message can damage credibility and lead to your reputation taking a hit. 

Think Carefully Before You Cross This Line 

In the end, I can only underscore once again that while expanding into retail can unlock tremendous growth, it is not just a decision to make hastily or lightly. A B2C transition takes serious commitment because it forces you to both rebuild your systems and retrain your teams. Your entire mindset from the ground up needs to be rethought.

Done right, it can create long-term strength and brand credibility. But if a business misjudges its capabilities, it can lead to operational strain, regulatory missteps, and lasting financial and reputational damage.

So before crossing the line into B2C, measure your readiness — not your desires. That’s what’s going to make all the difference. 

About the Author

Eugenia Mykuliak, Founder & Executive Director of B2PRIME Group, a global financial services provider for institutional and professional clients.

The post How Fintechs Can Build a Strong B2C Foundation appeared first on The European Business Review.

By Terence Tse and Dražen Kapusta

Are stablecoins the solution to companies’ nervousness about adopting cryptocurrency into their everyday operations? As Terence Tse and Dražen Kapusta outline, it’s a definite maybe.

Lenin allegedly once said, “There are decades when nothing happens and there are weeks when decades happen.” Whether or not he really said this, the quote seems to be an apt description of the use of cryptos in businesses. Many businesses have, to date, shied away from introducing such technology into their operations. One development is an increasing number of companies hoarding bitcoins to bolster their valuation. However, this may hardly be a corporate strategy that the wider industry can adopt. A more robust corporate adoption of cryptocurrencies that has shown promise in the long run is to utilise stablecoins as a transformative force in corporate treasury operations.

This is not entirely surprising, given that stablecoins enable corporate treasurers to address longstanding issues with traditional fiat-based payment methods. The current widely used systems often struggle with speed, costs, and transparency. Various features of stablecoins have made them an appealing choice for companies operating across multiple currencies and regions. Let’s deep-dive into the benefits and challenges.

Advantages brought to corporate treasuries

Real-time and (much) cheaper

With fewer intermediaries involved in the payment network, blockchain-powered stablecoins significantly reduce transaction costs.

With the possibility of reaching near-instantaneous settlements, stablecoins are set to revolutionise the management of international cash flows. Traditional cross-border payments can take two to five business days (with no processing on weekends and holidays). Stablecoins, in contrast, typically take two to three minutes, if not seconds, at any time.¹ With fewer intermediaries involved in the payment network, blockchain-powered stablecoins significantly reduce transaction costs. The difference can be vast. Traditional wired transfers typically cost $25 for domestic use in the US, and $40 to $50 for international use. Cross-border payments may incur fees ranging from 2 per cent to 4 per cent. The cost for using stablecoins is usually less than $1 in network fees.² For instance, using the Solana blockchain platform for money transfer, the network fees are a mere 0.000005 SOL, equivalent to $0.0008.³ Indeed, the infrastructure required for stablecoin transactions is emerging. For instance, using a blockchain format that is designed for transaction speed and scalability, Europe’s HashNET can support treasury applications, capable of processing over 20,000 transactions per second. It is now running pilot treasury programmes within the EU.

Automated liquidity management

Corporate treasurers can programme the stablecoins in the liquidity pool to optimise cash positions. Programmability enables just-in-time funding, recurring payments, and auto-rebalancing of balances based on preset conditions or real-time data (e.g., topping up a subsidiary’s account if it falls below a specified threshold). This, in turn, reduces manual intervention and removes the need for pre-funding, which is the requirement to pay in advance or immediately for all transactions processed by the bank, regardless of the payment due date, across multiple jurisdictions.

Siemens used programmable payments to automate internal treasury transfers based on pre-defined conditions. On the other hand, Maersk utilised similar technology to automate bank guarantee payments when a vessel is cleared to transit a canal. As more banks explore these tools, programmable treasury could become more popular.⁴

Working capital optimisation

By preventing settlement delays and unlocking trapped liquidity, stablecoins enhance capital efficiency, reduce working capital needs, and improve supplier relationships. Allegedly, a global e-commerce platform was able to reduce its working capital needs by $120 million by eliminating pre-funded accounts across 15 countries.⁵ In addition to streamlining manual processes and enhancing accuracy in execution, stablecoin-based transactions can prevent reconciliation bottlenecks and facilitate automated compliance verification. Stablecoins can also aid cash flow forecasting. Real-time data and predictable settlements improve forecasting precision. Teamed with automated variance analysis, corporate treasurers are better equipped to plan more effectively.

Real-time visibility and compliance

Blockchain technology provides unprecedented transparency into treasury operations. Because every stablecoin transaction is permanently recorded on the blockchain, treasuries get a clear, time-stamped history. This enables real-time tracking, automatic record matching, and simplified audits. Treasuries can then easily demonstrate compliance and provide regulators or internal auditors with the whole transaction history. These benefits also include lower compliance costs and improved regulatory adherence. Indeed, programmability can potentially enforce internal liquidity and control policies automatically, such as limiting transfers to pre-approved counterparties or requiring multi-signature approval for high-value movements, reducing the risk of human error or fraud.

Exchange rate risk management

In high-inflation or capital-controlled economies, stablecoins offer businesses a more stable means of managing their cash. For instance, corporate treasuries can quickly convert local currency proceeds in these countries into stablecoins. By doing this, a business’s working capital is immediately protected from further value loss that would result from holding money in the weakening local currency. A company in an exchange-rate-volatile country that receives stablecoins as payments can preserve its income instead of having to convert it into the local currency.

Scalability and growth

Stablecoins can provide support for business growth and expansion through improved market entry and reduced expansion costs. It has been found that stablecoins give access to new customers in emerging economies and among unbanked populations by enabling online transactions. According to Stripe, users paying with stablecoins are twice as likely to be first-time buyers, indicating that these are customers who would otherwise have been unable to make a purchase.⁶ For the sellers, the cost of doing business in these countries—at least in terms of payment—could also be lowered.

In the context of bank relationship management, stablecoins reduce reliance on conventional banks, potentially leading to a 70 per cent reduction in bank accounts, simplify banking structures, lower maintenance costs, and enhance negotiating leverage.⁷

Scepticism and challenges

Transferring funds from stablecoin wallets to traditional deposit accounts may not be instant. It might also incur fees, raising questions about whether stablecoins are always more cost-effective than wire transfers.

Perhaps rightly, corporate treasury professionals remain cautious, particularly in developed countries with stable currencies. To begin with, companies in the US and Western Europe benefit from a strong local financial infrastructure, making the transition to stablecoins less urgent. Moreover, using stablecoins can introduce new operational complexities, such as managing multiple stablecoin wallets—one for each type—similarly to handling different currencies. Additionally, transferring funds from stablecoin wallets to traditional deposit accounts may not be instant. It might also incur fees, raising questions about whether stablecoins are always more cost-effective than wire transfers.

Furthermore, foreign users holding US-dollar-pegged stablecoins remain exposed to foreign exchange risk. Infrastructure readiness and integration complexity can pose challenges that demand dedicated resources to address. Lastly, treasury functions often tend to be risk-averse and slow to adopt new financial technologies without clear mandates, proven case studies, or regulatory reassurance. And all of these considerations are only worthwhile if compliance teams approve crypto or stablecoin integrations.⁸

The path to adoption is not frictionless

While the GENIUS Act offers a regulatory boost, corporate stablecoin adoption faces challenges, including requirements for large listed companies to seek approval from the regulatory committee before issuing stablecoins and agreements that prohibit data misuse or forced adoption. These hurdles, alongside evolving global regulatory frameworks like MiCA and UK efforts—which bring both clarity and compliance uncertainties—explain why companies often prefer partnering with banks like JPMorgan’s Kinexys or Citi’s Token Services, indicating that treasurers prioritise expertise over rushed adoption. Indeed, a long list of questions remains concerning the relationships between stablecoin issuance and cryptocurrency market dynamics.⁹

Nevertheless, stablecoins have clearly established a beachhead as a potential backbone for business operations, a possibility further underscored by major infrastructure initiatives like 8ra. As the largest open-source project in EU history, with a €3.2 billion budget involving 150 large European participants, this consortium represents a prime opportunity to create a real EU sandbox for stablecoin implementation, offering the scale and infrastructure needed for rapid deployment across the European market. Expect more decades to happen in weeks.

About the Authors

Terence Tse is Professor of Finance at Hult International Business School and co-founder at the AI Native Foundation. He is also co-founder and Executive Director of Nexus FrontierTech.

Dražen Kapusta is the founder of COTRUGLI Business School and HashNET. He leads the COTRUGLI initiatives, focusing on AI-augmented Vanguard leadership, NEO Finance, blockchain, SDGs, and digital sovereignty. Dražen advises UN and EU bodies on AI and blockchain strategies.

References

1. 15 Ways Stablecoins Are Transforming Treasury Operations [2025 Analysis]. Nilos. https://www.nilos.io/blog/15-ways-stablecoins-are-transforming-treasury-operations-2025-analysis.

2. Stablecoin Payments vs. Traditional Payment Rails: Cost, Speed, and Efficiency Breakdown. Bitwave. https://www.bitwave.io/blog/stablecoin-vs-traditional-transactions.

3. Understanding Solana Transaction Fees. Solana. https://solana.com/learn/understanding-solana-transaction-fees.

4. Stablecoins in 2025: The Strategic Playbook for Banks. TreasurUp. https://treasurup.com/stablecoins-strategic-playbook-banks-2025/.

5. 15 Ways Stablecoins Are Transforming Treasury Operations [2025 Analysis]. Nilos. https://www.nilos.io/blog/15-ways-stablecoins-are-transforming-treasury-operations-2025-analysis.

6. https://stripe.com/fr/resources/more/stablescoins-in-global-business#what-are-the-benefits-and-risks-of-using-stablecoins-for-business

7. 15 Ways Stablecoins Are Transforming Treasury Operations [2025 Analysis]. Nilos. https://www.nilos.io/blog/15-ways-stablecoins-are-transforming-treasury-operations-2025-analysis.

8. https://www.cfodive.com/news/crypto-regulatory-landscape-shifting-corporatetreasury/751265/

9. Stablecoins: Fundamentals, Emerging Issues, and Open Challenges. 18 July 2025. arXiv. https://arxiv.org/pdf/2507.13883.

The post Beyond Bitcoin: How Stablecoins Are Solving Corporate Treasuries’ Biggest Pain Points appeared first on The European Business Review.

Denmark’s systematic approach to innovation has created one of Europe’s most robust startup ecosystems. Here’s what business leaders worldwide can learn from their model.

Denmark ranks 2nd globally in the Global Innovation Index 2024, with over 47,000 startups generating €50 billion annually. This isn’t accidental—it’s the result of a carefully designed ecosystem that treats innovation like infrastructure.

The Foundation: Systems Over Ideas

Why most innovations fail globally: 73% of startups fail not due to poor products, but inadequate market ecosystem support, according to CB Insights research.

Denmark addressed this issue by establishing systematic support structures. Their incubators, accelerators, and university labs operate with the same reliability as banking or transportation infrastructure. This systematic approach mirrors what works in building personal brands for business leaders—success comes from infrastructure, not just talent.

Key insight: Innovation requires ecosystem engineering, not just brilliant ideas.

Lesson 1: Make Innovation Mandatory, Not Optional

The Danish approach: Entrepreneurship is a required course for all university students, regardless of major. This “innovation infection” strategy has created a generation comfortable with business creation.

Global application: Companies that implement mandatory innovation training see a 35% higher rate of employee-led innovation, according to Accenture’s Innovation Research.

Implementation: Integrate innovation methodology into standard professional development programs. The same principle applies to executive communications—systematic training in thought leadership creates stronger business outcomes than hoping leaders will naturally develop public presence.

Lesson 2: Build “Network as a Service” Organizations

What Denmark does differently: Specialized organizations exist solely to connect people around challenges. These “network service” providers offer resources, expertise, access, and capital connections without equity requirements.

The model: Government and private entities create “warm pools”—safe spaces for idea generation, creation, and failure without career penalties.

ROI data: Danish network organizations report 4x higher successful collaboration rates compared to traditional business networking.

Lesson 3: The Academic-Student-Business Triangle

Denmark’s “innovation triangle” systematically combines:

• Academic research (ideas)
• Student energy (workforce)
• Business capital (resources)

Real example: The Technical University of Denmark’s labs operate 24/7, offering free access to 3D printers, manufacturing equipment, and expert mentorship. Statistics show 40% of students work nights developing prototypes.

Business application: Create structured partnerships linking university research, intern programs, and R&D investments.

Lesson 4: Support Infrastructure at Scale

What surprised observers: PR agencies offer pro bono services to innovators. Universities stock 300-page “How to Attract Investors” manuals beside standard textbooks.

The principle: Make business creation support as accessible as public services.

Measurable impact: 89% of Danish startups report feeling “adequately supported” during early stages, compared to 34% globally (European Startup Monitor 2024). This comprehensive support model highlights why strategic PR and personal branding services remain essential for scaling businesses—visibility and credibility infrastructure matters as much as product development.

Lesson 5: Focus on Application Over Revolution

Danish philosophy: Not everyone needs to create OpenAI. It is better to focus on how existing innovations impact specific sectors.

Strategic advantage: This approach reduces risk while maintaining momentum for innovation. Danish companies show 67% higher survival rates by focusing on incremental innovation rather than “moonshot” projects.

Business lesson: Prioritize systematic improvement over revolutionary disruption. The same strategic thinking applies to building founder visibility—consistent, targeted thought leadership outperforms sporadic “viral” attempts.

Lesson 6: Leverage Female Innovation Strengths

Global challenge: Women receive only 2.3% of venture capital globally, despite founding 40% of new businesses (PitchBook data).

Danish solution: Recognize that women innovators focus on sustainable business models, clear ROI, and low-risk development—treating these as competitive advantages, not limitations.

Results: Danish women-led startups show 35% higher 5-year survival rates and 23% better profit margins compared to venture-funded alternatives.

Lesson 7: Create Community Around Purpose

Framework for innovation communities:

• Mission clarity: Change the world in specific ways, not just generate profits
• Open mindset: Recruit change-embracing individuals for discussion and advocacy
• Functional matchmaking: Clear, accessible communication mechanisms for innovators

Evidence: Communities with clear missions exhibit 3 times higher member retention and 5 times more successful project launches. Purpose-driven leadership combined with strategic visibility creates competitive advantages in international markets—particularly when founder credibility becomes the primary trust signal for potential partners.

Lesson 8: Government as Innovation Enabler

Denmark’s government actively facilitates innovation rather than regulating it. Policy focuses on removing barriers and providing resources, rather than directing outcomes.

Policy impact: 78% of Danish innovators report that government support is “helpful,” compared to 23% globally (OECD Innovation Report 2024).

Implementation Strategy for Business Leaders

Immediate actions:

1. Audit your innovation ecosystem: Map current support structures
2. Create systematic networking: Build strategic relationship programs
3. Invest in education: Make innovation skills development mandatory
4. Establish safe failure spaces: Implement low-risk experimentation zones
5. Focus on application: Prioritize improving existing processes over revolutionary changes
6. Build founder visibility: Develop systematic personal branding for executive team—international partners often evaluate leadership credibility before product quality

The Global Opportunity

Denmark proves innovation can be cultivated systematically rather than hoped for accidentally. Their €50 billion innovation economy didn’t emerge from individual genius—it resulted from deliberate ecosystem construction.

For international markets, the Danish model provides a replicable framework for building innovation economies at national, regional, or corporate levels. Business leaders expanding internationally can apply similar systematic thinking to building trust infrastructure—combining strategic communications, thought leadership, and consistent executive visibility to establish credibility in new markets.

When scaling globally, founder reputation often becomes the bridge between unfamiliar markets and business opportunities. Danish innovators understand this implicitly—they build both product and personal brand infrastructure simultaneously.

Next steps: Organizations ready to implement systematic innovation support can begin by testing Danish-inspired approaches within existing business structures through pilot programs.

About the Author

Kateryna Doroshevska is the founder and CEO of BECOME PR Agency, specializing in personal branding and strategic communications for business leaders expanding internationally. With over 15 years of experience in executive communications, she helps founders and C-level executives build systematic visibility in international markets. Her approach mirrors Denmark’s innovation philosophy: success comes from infrastructure, not accidents.

The post How Denmark Built a $50 Billion Innovation Economy: 8 Lessons for Global Business Leaders appeared first on The European Business Review.

Stablecoins are carving out a larger role in global payrolls, with fresh H1 2025 data showing corporate deposits rising nearly sevenfold year-on-year and average transaction sizes doubling. Analysts say regulation, treasury diversification, and freelancer expectations are accelerating the shift away from traditional wire transfers in cross-border payouts.

Stablecoins Gain Share

Stablecoins, once a niche tool for international transfers, are moving into mainstream corporate finance. New H1 2025 figures from EasyStaff, show corporate deposits in stablecoins rose nearly sevenfold compared with a year earlier.

The share of funding via stablecoins climbed from about 5% in H1 2024 to roughly 13% in H1 this year. The average top-up grew from €5,000 to €10,000, a sign companies are routing planned budgets through stablecoin rails rather than running small-scale pilots.

Table 1. Stablecoin usage on EasyStaff (2024–2025)

Why Wires Are Under Pressure

Wire transfers remain widely used in corporate treasury, but their limits are clear. Settlement can take several days, costs vary across banks, and foreign exchange spreads reduce margins.

Stablecoins, by contrast, settle in minutes and often at lower cost. For companies with globally distributed teams, faster reconciliation and predictable fees are attractive. For workers in countries with weaker banking systems, stablecoins provide portability and a hedge against currency volatility.

Regulation Sets the Benchmark

The European Union’s Instant Payments Regulation, which took effect in 2024, capped fees on euro transfers and mandated instant settlement. While designed to improve bank efficiency, it also created a benchmark.

With wires now expected to be fast and inexpensive, companies increasingly compare them against alternatives such as stablecoins. In many cases, stablecoins match or exceed the benchmark.

Analysts Point to a Structural Shift

Industry research echoes these findings.

• FXC Intelligence and McKinsey have said stablecoins are now “real competitors” to legacy rails.
• Deloitte reports about 80% of companies support hybrid or remote work, making cross-border payroll a permanent requirement.
• A Zero Hash survey found 93% of freelancers would like part of their pay in crypto, and three-quarters prefer settlement within 24 hours.

Together, these signals suggest the market is shifting toward multi-rail treasury strategies, with wires, cards and stablecoins all used side by side.

Worker Preferences

Speed is the main reason many freelancers choose stablecoin payouts. Payments that once took days via bank wires now arrive in minutes.

Stablecoins also give workers more flexibility. They can be stored in digital wallets, converted to local currencies, or used directly through crypto-linked cards. In regions with high inflation or unstable banking, some freelancers see them as a safer option than keeping money in local accounts.

Quick settlement also builds trust. Workers often judge the reliability of clients or platforms by how fast funds arrive.

Treasury Implications

For companies, integrating stablecoins into payroll requires treasury systems that support compliance and reporting across both fiat and digital rails. Auditors expect transparent records of inflows and outflows, even when transactions occur on-chain.

Risk management is also evolving. Custody arrangements and regulatory clarity are essential. Still, many finance teams now see redundancy as a strength: wires for certain payments, cards for others, and stablecoins for distributed payrolls.

Table 2. Comparing wires and stablecoins

What’s Next

Further adoption may hinge on regulation. The EU’s Markets in Crypto-Assets (MiCA) framework and U.S. proposals are expected to bring more defined rules for stablecoin use.

For freelancers, expectations are already clear: fast and affordable payments are no longer optional. For companies, maintaining multiple rails is becoming the standard approach to payroll resilience.

Wire transfers are not disappearing. They remain essential for large corporate settlements and heavily regulated markets. But in the expanding remote-work economy, stablecoins have moved beyond experimentation and into the core of payout infrastructure.

About the Author

Vitalii Mikhailov is the Founder and CEO of EasyStaff, a platform that processes freelancer and contractor payouts in more than 100 countries. He has more than 15 years of finance experience and holds CFA Level II. Before EasyStaff, he redesigned cross-border payments in travel technology, cutting costs by eliminating round-trip FX and building redundant EU rails.

The post Stablecoins Gain Ground in Remote-Work Payouts appeared first on The European Business Review.

By Patrick Reichert and Vanina Farber

This piece explores the ripple effects of America’s retreat from humanitarian aid and what it means for fragile states, global stability, and future financing models for the sector.

In 2023, the United States accounted for 42% of global humanitarian aid.

On July 1^st, 2025, the United States Agency for International Development (USAID), for decades a cornerstone of global relief and development, officially shut its doors. Funding to thousands of life-saving aid programs was terminated. Local clinics, food distribution centers, refugee camps, and education projects lost critical support. In total, close to $40 billion in annual assistance evaporated with the agency’s closure, leaving a gaping void in the global humanitarian landscape.

The decision to shutter USAID wasn’t made in a vacuum. For years, foreign aid faced mounting criticism over failed projects, excessive overhead, and programs that created dependency rather than development. Critics also pointed to the system’s over-reliance on a single donor—a structural vulnerability that aid experts had long warned about.

With the wholesale shutdown of USAID, that structural vulnerability has been laid bare in the starkest terms. Whatever the system’s flaws, it had become the backbone of global emergency response. Furthermore, the majority of that response had clear, measurable impact. Emergency food assistance, vaccine distribution, HIV treatment, disaster relief: these are not experimental programs but proven interventions with well-documented results.

Although shortcomings in the humanitarian system have become increasingly apparent, reform should strengthen the foundation, not bring the whole structure down. This crisis has exposed the urgency to establish a new architecture: one that breaks down silos between humanitarian, development, and peacebuilding efforts; reduces dependency on any single state donor; and fosters collaboration among governments, international organizations, private philanthropy, and local communities. Instead, what we are seeing is not transformation but outright dismantling — leaving millions to bear the cost while the sector scrambles to rebuild from the ground up.

Unfortunately, last month, that void has deepened.

On July 17^th, 2025, Congress passed the Rescissions Act of 2025, eliminating an additional $9.4 billion in unobligated foreign assistance and public broadcasting funds. Nearly $8.3 billion of that came directly from international aid budgets, slashing planned spending on humanitarian relief, health programs, democracy promotion, and economic support. Despite bipartisan concern, the bill passed narrowly along party lines and was swiftly signed into law. Though narrower in scope than the USAID shutdown, it reinforces a troubling trajectory: the dismantling of foreign aid as we know it.

It’s hard to overstate how disruptive USAID’s closure is to the humanitarian sector. In 2023, the United States contributed~$68 billion the world’s humanitarian aid. Of that, USAID’s direct spending accounted for about $40 billion, around 59% of the U.S.’s total humanitarian aid effort.^[1] The agency is being folded into the state department, where it is to be replaced by a successor organization called “America First.”

With the funding cuts, humanitarian operations worldwide came to a standstill. For these programs, and the communities that depend on them, the opportunity to secure new resources and either complete, hand over, or responsibly close out their work is vanishing fast.

For implementing partners already reeling from USAID’s collapse, the Rescissions Act is a double-whammy. In some cases, planned back-up funding is now gone. In others, program transitions that were expected to be gradual are being aborted. And for fragile states that depended on American assistance—from Ukraine to Sudan, Congo to Gaza—the risk of a full-blown humanitarian collapse is growing by the week.

Amidst this uncertainty, we conducted a targeted analysis of USAID’s final funding obligations to understand where the gaps are sharpest—across geographies, sectors, and delivery partners. Our goal was to identify the most exposed communities and programs, and to help inform decisions about where resources and attention are most urgently needed.

Where the Gaps Are Sharpest: Who and What Is Most Affected?

Analysis of USAID’s FY2024 obligations reveals the scale and scope of the disruption. Across more than 24,000 funding records, more than $35 billion had been committed globally. With many of these activities now paused or cancelled, critical humanitarian services face an existential threat.^[2] At an average cost of $4,500 to save a life through proven global health interventions like malaria treatment or child illness prevention, the $35 billion lost from USAID’s shutdown represents an opportunity cost of over 7.7 million lives.

Many of the hardest-hit countries include Ukraine, the Democratic Republic of Congo, and Ethiopia: each expected to receive $1–6 billion in assistance. This funding spanned emergency food aid, healthcare, economic support, and more, all of which now faces uncertainty. Ukraine alone accounted for ~$6 billion of assistance in 2024, largely to bolster its war-torn economy and public services. Likewise, critical humanitarian and health programs (from emergency food aid to HIV/AIDS treatment) comprised some of the largest slices of the USAID portfolio.

Map of USAID 2024 Funding Obligations

USAID 2024 Obligations by International Sector & Implementing Partner

Ukraine: A Wartime Lifeline Cut Off

For Ukraine, USAID’s closure could not have come at a more precarious time. Ravaged by ongoing conflict and economic strain, Ukraine had become the single largest beneficiary of U.S. foreign aid via USAID in 2024, receiving roughly $6 billion. This figure included nearly $3.9 billion in direct budget support to keep the Ukrainian government and essential services running, as well as hundreds of millions for infrastructure and energy repairs to keep the lights on during wartime.

That lifeline has now been severed. The macroeconomic support that helped Ukraine pay salaries, stabilize its currency, and maintain critical public utilities is gone. Likewise, USAID-funded projects shoring up Ukraine’s electricity grid and heating systems have been left in limbo. The consequences are already looming. Without USAID, Ukraine faces a massive budget shortfall in the midst of a costly war and humanitarian crisis. Funds that had been sustaining hospitals, schools, and social safety nets have dried up. While European and other allies may try to fill some gaps, the sudden loss of U.S. economic support poses risks to Ukraine’s stability and its ability to provide basic services during the conflict.

Democratic Republic of Congo: Humanitarian Lifelines Severed

In the Democratic Republic of Congo (DRC), home to one of the world’s most complex and protracted humanitarian crises, the end of USAID funding has been devastating. With more than $1.3 billion in USAID obligations in 2024, the DRC now faces funding shortfalls for programs including food aid, healthcare, and conflict mitigation for millions of Congolese civilians and refugees from abroad.

Aid agencies on the ground warn of immediate and life-threatening impacts. According to Manenji Mangundu, Oxfam’s country director, “USAID cuts will have an immediate and devastating impact on millions of the world’s most vulnerable people who depend on humanitarian aid for survival.”^[3] In eastern Congo’s conflict zones, where over half a million people were already desperate for food, water, and shelter, the sudden funding halt means relief efforts are grinding to a halt.

USAID-funded food convoys and nutrition programs are being suspended, and NGO-run health clinics are running out of supplies. Agencies that relied on U.S. funds for everything from cholera prevention to support for displaced families now find themselves without resources, forced to make decisions about who gets help and who is turned away.

The loss of U.S. aid is also causing chaos for the organizations themselves. Most humanitarian groups in DRC depended heavily on USAID grants; without them, many programs face closure and staff layoffs. Oxfam estimates that the health of up to one million people is now at risk in DRC due to cuts in vital clean water and sanitation services, heightening the threat of disease outbreaks like cholera and measles.^[4]

The Scale of Human Impact: Food, Health, and Fragile States

Of all the sectors upended by USAID’s closure, emergency food aid may be the most immediately consequential. The shock comes at a time when global hunger was already at record highs. The U.N. World Food Programme (WFP) – the world’s largest hunger relief agency, has sounded alarm bells about a massive funding shortfall. In March 2025, WFP warned that 58 million people worldwide are at risk of extreme hunger or starvation unless urgent funding is secured, after seeing drastic donor shortfalls this year (including the loss of U.S. contributions). The agency’s donor income in 2025 is projected to be 40% lower than the year before, a gap that “threatened feeding programmes in 28 crisis zones around the world” from Congo to Sudan, Syria to Yemen.^[5]

The United States has long been WFP’s largest donor, so the abrupt halt of USAID-administered food funding forced WFP to contemplate deep cuts. With donor budgets shrinking and U.S. foreign aid in flux, the agency faces tough choices about where – and whether – it can deliver food aid. WFP’s own estimates show it may receive only about $8 billion of the $16.9 billion it needs to assist 123 million people in 2025.^[6] The funding shortfall comes even as private donations have tripled since 2019. However, private donations only account for ~3.5% of WFP’s funding, nowhere near enough to compensate.

Even before the USAID shutdown, WFP and other agencies had begun rationing aid due to funding gaps. For example, in East Africa, refugees in countries like Ethiopia and Kenya saw their food rations cut by up to 40% in 2023–2024 because donor money wasn’t keeping up.^[7] WFP officials are prioritizing “the worst-affected regions and stretching food rations” as far as possible, but they acknowledge that they are approaching a funding cliff with life-threatening consequences.^[8]

Programs in Sudan, South Sudan, DRC, Palestine, Syria, Yemen, and other hotspots are at risk of suspension in the coming months if new funding doesn’t materialize. In humanitarian terms, this means millions of hungry people could be cut off from food assistance. The most vulnerable – including children, displaced families, and refugees – will feel it first. Already, in Bangladesh, WFP has had to reduce rations for Rohingya refugees due to lack of funds.^[9] In Afghanistan, Yemen, and Syria, programmes to prevent child malnutrition are being scaled back and could halt entirely. The USAID freeze adds immense pressure to an already strained system. The coming months will determine whether stopgap measures can avert the worst outcomes, or whether 2025 will see a dramatic spike in famine and undernutrition because the world’s largest donor stopped feeding the hungry.

Health Programs in Peril: The case of HIV/AIDS

The human impact of the aid cutoff is equally stark in the health sector, particularly for disease-specific programs that had depended on U.S. leadership. One of the most illustrative is the fight against HIV/AIDS. For two decades, the U.S. (through U.S. President’s Emergency Plan for AIDS Relief (PEPFAR) and contributions to the Global Fund) led a global campaign that saved millions of lives and brought AIDS under control in many countries.

However, when the U.S. government paused all foreign assistance, it caused an instant rupture in HIV services: deliveries of life-saving HIV medicines were interrupted, and prevention programs for at-risk populations were halted across dozens of countries.^[10] Millions of people who depend on consistent antiretroviral treatment and outreach support were suddenly and abruptly cut off, left without care from one week to the next.

UNAIDS, the United Nations agency leading the global HIV response, has issued dire warnings. According to UNAIDS projections, if U.S. support for HIV programs is not quickly restored or replaced, the world could see an additional 6 million new HIV infections and 4 million AIDS-related deaths between 2025 and 2029.^[11] “This is not just a funding gap. It’s a ticking time bomb,” said UNAIDS Executive Director Winnie Byanyima, noting how services have “vanished overnight” in some places and health workers have been sent home. The progress of the last decades is at risk of unraveling: before the crisis, global HIV infections and deaths had been steadily declining (new infections were 40% lower in 2024 than in 2010), but that hard-won progress could reverse if treatment and prevention stall out now.

Amid this bleak outlook, there was one notable exception. Following bipartisan pushback, the Senate amended the Rescissions Act of 2025 to preserve PEPFAR funding, stripping out a planned $400 million cut.^[12] This move protected a cornerstone of the global HIV/AIDS response, ensuring that key services—such as antiretroviral distribution and testing—can continue in the short term.

However, the safeguard appears to apply only to PEPFAR. Other HIV/AIDS initiatives, particularly those funded through USAID or routed through broader global health platforms, were not exempted. With nearly $8 billion in international assistance rescinded overall, the fallout for HIV programs outside the PEPFAR umbrella is significant. Community-based prevention efforts, health systems strengthening, and cross-cutting support services are among the casualties, leaving dangerous service gaps in many countries.

On the ground, the disruption also entails knock-on effects. In countries like Mozambique, more than 30,000 health personnel (many of them involved in HIV and TB programs) have lost their jobs as U.S.-funded projects shut down.^[13] Such losses not only hurt HIV treatment delivery but also weaken healthcare overall, as these workers also handle maternal health, vaccinations, and more.

Beyond HIV/AIDS, other health initiatives are suffering a similar fate. Tuberculosis clinics and outreach programs, some funded through USAID’s global health security efforts, are reporting shortages of medicines and diagnostic kits.^[14] Malaria control programs that depended on U.S. funding for bed nets and spraying have scaled back, even as cases surge in places like Ethiopia.^[15] Maternal and child health programs, from vaccine campaigns to nutrition for pregnant women, are likewise facing gaps.

In summary, the global health safety net has unraveled. The sudden withdrawal of the world’s largest donor is being measured in clinic closures, medicine stock-outs, and lives at risk. Whether it’s an HIV-positive mother in Kenya, a malaria-stricken child in Ethiopia, or a TB patient in Ukraine, vulnerable people are seeing their lifelines weakened. Health experts fear that without an urgent solution, the coming years could see resurgences of epidemics that had been under control, and a loss of confidence in health systems in some of the world’s poorest countries.

Can the Void Be Filled?

The closure of USAID’s programs in 2025 sent shockwaves through the humanitarian sector. The passage of the Rescissions Act of 2025 has now cemented a broader shift: a systemic retreat of the United States from its long-held role as the world’s leading humanitarian donor. Together, the agency’s shutdown and the rescissions mark an abrupt and ideologically driven pivot in U.S. foreign policy, one that deprioritizes humanitarian principles in favor of short-term domestic optics.

Front-line services have been disrupted, implementing partners destabilized, and local capacity gutted. In conflict zones and refugee camps, people who yesterday had food, medicine, or shelter provided by an American-funded project are waking up today to nothing. The ripple effects will not stop here. With each round of funding clawbacks, the humanitarian landscape becomes more fragile, more reliant on fewer actors, and more vulnerable to political shocks. The instability has rippled through organizations as well – tens of thousands of aid workers have lost employment globally due to the cuts, undermining local capacities built up over years.^[16] It is a stark reminder of the interdependency and fragility of the humanitarian system and how quickly gains can be reversed.

Yet, amid the uncertainty, there are seeds of adaptation. Other nations and international institutions are under pressure to step up their contributions, even as many face their own budget constraints. Philanthropic actors, exemplified by Project Resource Optimization (PRO)^[17], are innovating to plug critical gaps, however modestly. And affected communities and governments are striving to do what they can to fill the void – whether it’s health ministries reallocating scarce domestic funds to keep HIV clinics open, or local NGOs rallying volunteers to continue aid distribution on a shoestring. These efforts highlight the resilience and resourcefulness within the humanitarian sector.

Still, the road ahead remains challenging. The scale of disruption, $30+ billion annually, is not something that can be easily or quickly patched. The worry is that without prompt action to restore funding streams, today’s cutbacks will become tomorrow’s full-blown catastrophes – be it famine, disease outbreaks, or instability from unaddressed crises. The international community is therefore at a crossroads. Will new coalitions of donors emerge to restore at least a portion of the lost aid? Will cost-effective initiatives like PRO inspire more strategic giving to soften the blow? Can some projects spin-off into revenue-generating programs? Or will the world’s vulnerable populations simply be left to bear the brunt of a political decision beyond their control?

The 2025 USAID closure has infused a sense of urgency and clarity about what is at stake. This moment demands not just emergency stopgaps, but a fundamental rethinking of how global aid is structured, financed, and sustained. The old model—with its heavy dependence on a single donor and rigid institutional silos—has proven dangerously fragile. The new architecture must be more resilient: distributed across multiple funding sources, integrated across sectors, and rooted in partnerships that strengthen rather than replace local capacity.

The hope is that this crisis will catalyze not just a restoration of funding, but a reimagining of the humanitarian response itself. The Rescissions Act should be a rallying cry for systemic change. The world cannot afford for the lights to go out, but neither can it afford to simply flip the same old switches. The system holds—until it doesn’t. Now it’s time to build one that will.

About the Authors

Patrick Reichert is the Associate Director & Research Fellow at the elea Chair for Social Innovation at IMD. Patrick conducts research at the intersection of entrepreneurship, finance and social impact, with a particular focus on the mechanisms and practices that investors use to seed investment in social organizations.

Vanina Farber is the elea Professor for Social Innovation and Dean of the EMBA Programme at IMD. Vanina is a macroeconomist and political scientist specializing in humanitarian finance, impact investment, and social innovation, with more than twenty years of experience in research, teaching, and consultancy. At IMD, Vanina designs and directs the Driving Innovative Finance for Impact (DIFI) program, equipping leaders with tools to drive sustainable financial solutions.

References

^[1] https://www.theguardian.com/commentisfree/2025/feb/13/donald-trump-elon-musk-usaid-soft-power?

^[2] Analysis draws upon data from the official US foreign assistance website: https://foreignassistance.gov/

^[3] https://www.oxfam.org/en/press-releases/oxfam-reaction-usaid-funding-cuts-drc

^[4] https://www.oxfam.org/en/press-releases/oxfam-reaction-usaid-funding-cuts-drc

^[5] https://www.reuters.com/world/uns-wfp-says-58-million-face-hunger-crisis-after-huge-shortfall-aid-2025-03-28

^[6] https://executiveboard.wfp.org/document_download/WFP-0000161321

^[7] https://www.theguardian.com/global-development/ng-interactive/2025/feb/21/the-impact-has-been-devastating-how-usaid-freeze-sent-shockwaves-through-ethiopia

^[8] https://www.reuters.com/world/uns-wfp-says-58-million-face-hunger-crisis-after-huge-shortfall-aid-2025-03-28

^[9] https://www.reuters.com/world/uns-wfp-says-58-million-face-hunger-crisis-after-huge-shortfall-aid-2025-03-28

^[10] https://www.unaids.org/en/impact-US-funding-cuts

^[11] https://healthpolicy-watch.news/millions-at-risk-of-hiv-infection-and-death-after-us-funding-cuts-warns-unaids

^[12] https://www.theguardian.com/us-news/2025/jul/17/us-senate-passes-aid-public-broadcasting-cuts-victory-trump

^[13] https://healthpolicy-watch.news/millions-at-risk-of-hiv-infection-and-death-after-us-funding-cuts-warns-unaids

^[14] https://www.unaids.org/en/impact-US-funding-cuts

^[15] https://www.theguardian.com/global-development/ng-interactive/2025/feb/21/the-impact-has-been-devastating-how-usaid-freeze-sent-shockwaves-through-ethiopia

^[16] https://www.globalpolicyjournal.com/blog/10/06/2025/cuts-usaid-fallout-continues-part-2

^[17] Project Resource Optimization (PRO) is an independent initiative formed in 2025 with a singular mission: to channel resources to the most urgent and effective aid programs left stranded by USAID’s shutdown. PRO uses rigorous analysis, sector expertise, and a “living” database of projects to guide donors. It scours the list of cancelled or paused USAID programs to identify those that are high-impact, cost-effective, and time-sensitive – for example, a partially completed health clinic that just needs a few months of funding to finish, or a food aid program mid-way through feeding a community. These vetted opportunities are then shared with philanthropies, charities, and even high-net-worth individuals who are eager to step in and contribute funding.

The post When the Lights Go Out: America’s Retreat from Global Humanitarian Aid appeared first on The European Business Review.

By Cheryl Brennan

UK SMEs are missing out on £2.7 billion in potential National Insurance savings by overlooking salary exchange schemes, new Howden research reveals. With rising costs and wage pressures, this article focuses on how this tax-efficient approach can boost pensions, increase take-home pay, and free funds for growth, without adding to employer costs.

Small and medium-sized enterprises (SMEs) in the UK face increasing financial pressures^[i]. Rising employment costs, tight labour markets, and slowing economic growth are forcing many businesses to rethink how they attract, retain, and reward staff. As a result SME’s are often seeking new ways to make limited resources stretch further.

In the UK, new research by Howden Employee Benefits^[ii], conducted in partnership with YouGov, highlights a major financial opportunity that is being missed. Despite salary exchange being a well-established and tax efficient strategy, 68%* of UK SMEs are not utilising it, potentially missing out on an estimated £2.7 billion in employer National Insurance (NI) savings and £1.8 billion in employee savings.

Salary exchange (also called salary sacrifice) allows employees to exchange a portion of their gross salary for non-cash benefits, most commonly pension contributions. By reducing the employee’s salary, both employer and employee pay less National Insurance. These savings can then be reinvested into pension contributions or increase net take-home pay.

For example, on a salary of £38,000, salary exchange can boost pension contributions by 7.5% and increase take-home pay by 0.5%, without raising total employer costs. This means employees can save more for retirement while enjoying slightly higher take-home pay, all at no extra cost to their employer.

Despite these advantages, only 29% of UK SMEs currently use salary exchange. The research suggests that lack of awareness and guidance is a key barrier. Over a third (36%) of SME leaders know about salary exchange but haven’t explored it fully, and 17% are unaware it exists. Among micro SMEs (those with fewer than 10 employees), adoption is especially low, just 12% use it, and 30% are completely unfamiliar with the scheme.

Rising costs and stalled growth

The April 2025 increase in employer NI contributions in the UK has forced many SMEs to revise workforce and investment plans. Prior to the increase, 37% of SMEs intended to raise employee salaries, but many have since delayed or abandoned these plans. Similarly, 31% had aimed to invest in business growth, and 23% planned to expand their teams. These initiatives are being deprioritised as cost containment takes precedence.

One-third of SMEs have responded by passing costs onto customers, risking further inflationary pressures. Others have frozen hiring or postponed pay rises. While these defensive actions may protect short-term margins, they risk damaging employee morale and undermining long-term productivity.

Salary exchange offers a constructive alternative. It allows SMEs to enhance employee reward packages and improve financial wellbeing without additional employer costs. This is especially valuable in sectors facing retention challenges and in regions where wage growth is stagnant despite rising living costs.

Aligning with public policy and long-term goals

Salary exchange also aligns with broader government objectives in the UK. As pension reform advances, policymakers focus increasingly on boosting financial resilience and long-term savings. The UK government has emphasised the importance of employer engagement to tackle pension under-saving and improve financial literacy.

By adopting salary exchange, SMEs can support these goals while helping staff manage cost-of-living pressures. Higher pension contributions and increased take-home pay can make a meaningful difference, particularly in lower-wage sectors. For employers, NI savings can be reinvested into business growth, staff development, or enhanced benefits.

The research finds larger SMEs are more likely to use salary exchange: 39% of firms with over 50 employees adopt it, compared to only 12% of micro businesses. This suggests scale, HR expertise, and access to advice play crucial roles in uptake.

Practical steps for SMEs to introduce salary exchange

Implementing salary exchange can be straightforward with the right support. Key steps include:

• Evaluating the opportunity: Analyse current payroll and pension contributions to estimate potential savings.
• Communicating clearly: Educate employees using accessible, jargon-free language.
• Ensuring compliance: Align the scheme with tax regulations and auto-enrolment rules.
• Reinvesting the savings: Use NI savings to reinvest into employees’ pension pots, or enhance employee support, such as financial wellbeing programmes.

Salary exchange isn’t just for large firms. With minimal disruption and potential cost-neutrality, it offers SMEs a practical way to enhance employee outcomes and strengthen financial resilience

A strategic win in a challenging environment

Economic headwinds for SMEs show little sign of easing. Rising costs, competitive labour markets, and pension and tax policy changes will continue to shape business strategy. In this context, salary exchange provides a smart, efficient path to greater value for both employers and employees.

By restructuring remuneration rather than simply increasing pay, SMEs can improve their financial position, boost employee loyalty, and better prepare for the future. This overlooked opportunity is a strategic win that SMEs can no longer afford to ignore.

* Figures calculated excluding Don’t know: Howden analysed the results of a proprietary survey of 523 employee benefits decision makers from Micro, small and medium sized businesses in the UK to better understand their responses to national insurance increases.  YouGov conducted the survey from 28 April to 7 May 2025. The survey was carried out online. The figures have been weighted and are representative of British business size and region.

About the Author

Cheryl Brennan is Managing Director of Howden Employee Benefits, leading a high-performing team delivering market-leading consulting, broking, and servicing across all aspects of employee benefits and wellbeing. With nearly 30 years’ industry experience, Cheryl has built Howden into a renowned name and supplier of choice, driven by her commitment to investing in and empowering her people. Passionate about creating exceptional customer experiences, she draws on her career-long understanding of the industry to help businesses address unique challenges with tailored solutions. Under her leadership, both she and Howden have won multiple industry awards, cementing their position as market leaders.

References

^[i] https://www.accountancyage.com/2025/06/09/cash-flow-pressures-climb-as-57-of-uk-smes-warn-of-rising-costs/

Howden Employee Benefits & Wellbeing Limited is part of the Howden Group. Registered in England and Wales under company number 2248238, with its registered office at One Creechurch Place, London EC3A 5AF. Authorised and regulated by the Financial Conduct Authority (Financial Services Register No. 312841).   The Financial Services Register can be accessed through www.fca.org.uk

^[ii] https://www.howdengroupholdings.com/news/smes-missing-out-on-2-7bn-in-national-insurance-savings-howden-research-reveals

The post How UK SMEs Can Unlock £2.7 Billion in National Insurance Savings appeared first on The European Business Review.

Crypto is a highly volatile market. Significant price swings, which would be considered major events in traditional financial markets, are a common occurrence in the crypto market. Recurrent issues in what respect to the unsorted regulation have an impact in traders and investors discouraging new-comers.

In the last period however, many advancements are pushing forward the still novel sector of Cryptocurrency bringing to traders and investors new opportunities. The surge of bitcoin, the rise of the trend of AI Tokens, the change of Regulation and the GENIUS Act are some of the innovations consolidating a Market Momentum in Crypto not to miss out by traders and investors.

The cryptocurrency market is currently at a $3.4 trillion market cap. It surged as high as $3.8 trillion in December 2024.

The rising trend was impacted by the US trade tariffs in Q1 of 2025, causing a short-term decline and high volatility in Bitcoin. But cryptocurrency appears to be firmly on the rise once again.

Blockchain technology and AI is being gradually adopted by the Crypto market to stay competitive. Traders embrace new tools and technologies, such as AI-driven analytics and blockchain-based solutions, to enhance their trading strategies. AI tokens are in a rising trend, and these are cryptocurrencies designed to support applications and services that use artificial intelligence within the blockchain ecosystem.

Policies in what respect to regulation of Crypto vary by country, but the US administration has favored a permissive and hands-off approach specially since the re-election of Donald Trump.

Bitcoin surge

Looking back, the actual Bitcoin peak in 2024 exceeded predictions by a huge margin, reaching $106,140 mid-December.

The value of Bitcoin surged 150% coming into 2024. And many believe this will keep run could last well into 2025.

Crypto-linked investment products broke a 15-week streak of capital inflows and recorded net outflows of $223 million, according to the latest CoinShares report.

The shift came after the Federal Reserve signaled it may keep interest rates elevated for longer, following economic data that showed a strong labor market and persistent inflation in the U.S.

Yet despite the uncertainties, Bitcoin is showing remarkable resilience, and it’s already showing signs of bouncing back in 2025 Q2. In fact, it has hit new heights, surpassing $111,000.

Two major factors helped to spark this bull market: the approval of spot ETFs and the latest halving event, both of which took place last year.

Brokerages began designing Bitcoin ETFs as early as 2013, but the spot ETF wasn’t approved by the SEC until January 2024.

These funds consist of crypto that’s purchased by the financial firm and then offered as shares to investors. The investors never actually hold any Bitcoin, but the ETF tracks with Bitcoin’s market value.

Funding, Mergers, and Acquisitions

The last few years have been volatile for crypto funding. 2022 was a year of crypto bankruptcies.

But in late 2023, investor confidence returned. And there has been a steady trend of renewed investment since then. Venture capital investment in crypto startups hit $4.9 billion in Q1 2025, the highest figure in over 2 years

The quarter’s largest investment, valued at $2 billion, went to Binance. The cryptocurrency exchange has become the go-to place for traders, with a higher daily trading volume than any other platform. As of May 2025, Binance receives 76.7 million visitors each month.

Among the 445 other deals (up 7.5% quarter-over-quarter), investments focused on early-stage crypto startups. Investors say funding in the next year will be focused on real-world applications of blockchain and the infrastructure needed to implement these applications. That includes integration between fintech companies and crypto ecosystems.

A spike of IPOs and mergers and acquisitions is also expected for 2025. Total venture funding in crypto this year is projected to pass $18 billion. 

AI Tokens Rising Trend

AI tokens is a form of digital currency that uses artificial intelligence. These are cryptocurrencies designed to support applications and services that use artificial intelligence within the blockchain ecosystem.

AI tokens continue to gain momentum as key projects demonstrate strong price performance and growing adoption, positioning them as potential top AI acquisitions of 2025. In recent months, AI has been working its way into the world of cryptocurrency.

There are over 200 AI tokens in the crypto space right now. In April 2023, the combined market value of AI tokens was just $2.7 billion. Now it’s surpassed $36 billion.

AI tokens offer support across three main areas: facilitating transactions, enabling protocol governance to allow users to have a say in the development of an AI platform, and mediating token-based reward systems to incentivize them to do so.

Changing Regulation

Governments worldwide are getting to grips with crypto regulation. But policies vary massively by country, but Trump’s administration has been more permissive. In his first week in office, he signed an executive order authorizing a more “light-touch” regulation of the industry.

Donald Trump has been a supporter of Bitcoin since returning to the White House — vowing to transform America into the “crypto capital of the world.” But the president has previously sparked controversy by launching his own range of non-fungible tokens — not to mention an official meme coin — it’s fair to say Trump isn’t doing this out of kindness. The policies he’s pushing are beneficial to his own business empire, despite White House Press Secretary Karoline Leavitt repeatedly insisting they do not amount to a conflict of interest.

The Genius Act

The GENIUS Act (“Guiding and Establishing National Innovation for U.S. Stablecoins Act”) marks the United States’ first major legislative step towards regulating stablecoins. With this bill, it joins a growing list of countries seeking to bring oversight and stability to the rapidly expanding digital asset ecosystem. This act aims to provide clear regulatory guardrails for the industry.

The GENIUS Act designates “primary Federal payment stablecoin regulators” (notably the OCC for national banks and certain non-banks). It preserves a role for qualified state regimes via a certification process. It also stands up a Stablecoin Certification Review Committee to vet state frameworks and specific issuer applications. Treasury and other agencies get defined roles, particularly around AML/CFT and foreign stablecoin reciprocity.

Conclusion

Investing in cryptocurrency is a high-risk, high-reward strategy. Making the decision to invest in it is complex and depends on a variety of factors, including your personal financial goals, risk tolerance, current trends and policies, and understanding of the market.

Analysts forecasting substantial profit potential for undervalued crypto assets through 2025. Traders and Investors can benefit from the Market Momentum, as Bitcoin’s surge creates optimism across cryptocurrency markets. It encourages Traders and Investors, especially in the US, where the Trump’s administration has favoured a hands-off regulation approach.

As AI and Blockchain-based technologies are gradually adopted by the Crypto market, the coin is becoming a more competitive product pushing forward to expand on digital driven solutions aiming to support traders and investors on their predictions.

Crypto seems promising sector in the next few years, but it will be also accompanying a high degree of ups and downs along the way. If potential investors and traders are able to riding the waves of the Cryptocurrency market, they will learn everything about the crypto market, develop a clear plan that aligns with their goals, and make the most of the tools and information that is out there, but doing so could lead to generous trading profits.

The post Why Investors and Traders Should Benefit from Crypto Market Momentum appeared first on The European Business Review.

By Jerry Haar and Altuğ Ülkümen

The business environment in 2026 will be heavily impacted by economic fragility, geopolitical instability, and social volatility. Growing protectionism, elevated public debt, populist demands for increased social spending, and the costs of an aging population worldwide (healthcare, social services, pensions) could usher in a period of high inflation and stagnant growth.

Charles Dickens’s A Tale of Two Cities opens with the famous line: “These are the best of times and the worst of times.” For the first nine months of 2025 they have been a little of both.

Although worldwide inflation is relatively moderate and projected to be 4.2 per cent this year, global growth overall is slowing and is expected to decline to 3.0 per cent in 2026. Merchandise trade is contracting to 0.2 per cent this year, yet services trade is increasing. Global poverty levels are decreasing; however, income inequality is widening.¹

As for the next six months, they will be VUCA-dominated,² “VUCA” standing for volatile, uncertain, complex, and ambiguous—a perfect description for the current environment for global trade. The three principal drivers here are economic fragility, geopolitical instability, and social volatility. In the first instance, economic fragility, the global economy is on a recessionary trajectory with growth expected to slow to 2.3 per cent. According to Chad NeSmith of Tobias Financial Advisors: “This represents a sharp deceleration compared to the average annual growth rates prior to the global pandemic which were already depressed.”³

The next six months, they will be VUCA-dominated,2 “VUCA” standing for volatile, uncertain, complex, and ambiguous—a perfect description for the current environment for global trade.

Growing protectionism, elevated public debt, populist demands for increased social spending, and the costs of an aging population worldwide (healthcare, social services, pensions) could usher in a period of high inflation and stagnant growth.

In the nearer term, it is the sharp rise in uncertainty caused by a flurry of Trump executive orders that, although they provide the opportunity for welcome change in some areas, often lack coherence or a clear strategy, prompting businesses to postpone large capital expenditures, causing immense headwinds to the global recovery.

Another indicator of economic fragility is debt. The U.S. provides a prime example, where the federal government has been running deficits for every fiscal year since 2002. This trend is projected to continue, with debt held by the public expected to reach its highest level ever by 2029 and continue to rise thereafter.⁴

Of more immediate concern, however, is growing consumer debt and small business bankruptcies. Total household debt in the U.S. has been steadily increasing, hitting an all-time high of $18 trillion in 2024.⁵ Mortgage, student loan, credit card, and auto loan debt are all on the rise, as are delinquency rates, especially credit cards that are at levels not seen since the 2008 recession.

The second driver is geopolitical instability, arising from a complex interplay of factors, including power rivalries, resource competition, technological threats, and environmental challenges.⁶ These factors are reshaping international relations and prompting strategic responses from governments and corporations. To illustrate, the inward-looking, quasi-isolationist posture of the current U.S. administration has resulted in an erosion of U.S. global leadership, creating an immense power vacuum that is accentuating the rise of a multipolar world.

Besides ongoing conflicts between Russia and Ukraine, Israel and Hamas, and India and Pakistan, a retreat from globalization, marked by protectionist policies and trade disputes, is altering economic interdependence. The U.S.-China trade tensions have led to supply chain disruptions and a reevaluation of global trade norms.

The environment and technology are two often-overlooked contributors to geopolitical instability. Climate change and resource scarcity are in fact exacerbating geopolitical tensions. For instance, water scarcity in regions like the Middle East and sub-Saharan Africa has led to conflicts over access and control. The Syrian civil war has been linked to prolonged droughts, highlighting how environmental stress can trigger unrest. As for technology, the digital realm has become a battleground for state and non-state actors. Cyberattacks targeting critical infrastructure, such as power grids and communication networks, pose significant risks. For example, pro-Kremlin groups have been implicated in cyberattacks on European institutions, illustrating the use of cyber tools for geopolitical leverage.

When it comes to social volatility, there is evidence of global dissatisfaction with democracy, particularly among younger generations and in high-income nations. Factors contributing to this dissatisfaction include economic inequality, declining trust in democratic institutions, and a perception that citizens’ voices are ignored. Technology is also contributing to the growing societal discord. Increasingly sophisticated algorithms are being used to influence decision-making and blur the line between fact and fiction, creating greater polarization as a side effect. AI-driven systems are upending the economy in innumerable ways, causing challenging job market displacements that are bound to increase over time.

The Fragile States Index (FSI) lists countries with the highest levels of fragility, which often includes factors like political instability, weak governance, and economic vulnerability. In Latin America, for example, social volatility shows little sign of receding as crime and violence, youth unemployment, poverty, drug trafficking, and regional economic disparity continue unabated. Often overlooked is the impact of climate change and the environment on social stability. It’s no secret that the increasing frequency of natural disaster events, drastic changes in crop yields, and growing challenges in accessing clean water are fueling wars and shifting migratory patterns.⁷

On the positive side, we are witnessing greater civic engagement at the grassroots level and a democratic renewal in many parts of the world, such as the Open Society Foundations, IREX, Fundación Poder Ciudadano, and Yiaga Africa.

Looking towards 2026, producers, consumers, and governments will need to contend with an uncertain future—one encompassing a fragmented global landscape and unpredictable rules and alliances. Economic fragility, geopolitical instability, and social volatility will make the remainder of this year and the beginning of next a challenging one in a myriad of ways.

About the Authors

Jerry Haar is a professor of international business at Florida International University and a senior fellow at both the McDonough School of Business at Georgetown University and the Council on Competitiveness.

Altuğ Ülkümen is a Geneva-based investment consultant with over two decades of experience in asset management, portfolio optimization, and investment research. A graduate of the London School of Economics, he is also an expert in digital transformation processes and the author of numerous articles, research papers, and blogs covering a broad range of investment- and technology-related topics.

References

1. https://www.oecd.org/en/publications/2025/03/oecd-economic-outlook-interim-report-march-2025_47a36021.html

2. VUCA is an acronym based on the leadership theories of Warren Bennis and Burt Nanus to describe or to reflect on the volatility, uncertainty, complexity and ambiguity of
general conditions and situations.

3. Interview with Chad NeSmith, Tobias Financial Advisors,
May 15, 2025.

4. https://fiscaldata.treasury.gov/americas-finance-guide/national-debt/

5. https://www.newyorkfed.org/microeconomics/hhdc

6. https://www.blackrock.com/corporate/literature/whitepaper/geopolitical-risk-dashboard-april-2025.pdf

7. https://fragilestatesindex.org/wp-content/uploads/2017/05/FSI-Methodology.pdf; and https://www.pewresearch.org/short-reads/2024/06/18/satisfaction-with-democracy-has-declined-in-recent-years-in-high-income-nations/

The post Looking Towards 2026 – Where Do We Go from Here? appeared first on The European Business Review.

In the UK and across Europe, digital currencies are shifting from speculative tools to legitimate financial instruments. Institutional heavyweights such as BlackRock, Grayscale, and Fidelity recently launched Bitcoin and Ether spot ETFs, a move greenlit by the US SEC and cheered across global markets. The implication is clear: crypto has grown up, and it’s here to stay.

This maturity is spilling over into unexpected sectors, including online poker. Blockchain technology is now revitalizing a domain once bogged down by clunky payment processors and outdated banking models. According to an online poker global industry report, crypto integration (along with e-wallets and app tokens) is eliminating friction from deposits, withdrawals, and verification protocols. The result? Faster games, happier players, and a radically different poker economy.

Cryptocurrency’s Rising Role in Online Poker

For decades, online poker players were subject to banking delays, hidden fees, and regulatory uncertainty. That began to change in 2015 when Americas Cardroom, part of the Winning Poker Network, became one of the first crypto poker operators to accept Bitcoin. At the time, Bitcoin’s reputation was limited to headlines about price spikes and speculative promise. Yet for poker players facing multi-day withdrawal processes, it presented a breakthrough: fast, decentralised payments not governed by financial intermediaries or restrictive local laws. From there, Americas Cardroom doubled down. By 2017, the platform began promoting Bitcoin heavily and added support for 60 cryptocurrency options, including Ethereum, USDT, Dogecoin, and XRP. This wasn’t just a nod to novelty but a recognition of where player interests were headed. Today, Americas Cardroom stands out as a leader in crypto adoption, particularly in the UK market, where its privacy-first banking model aligns well with the region’s historically liberal gambling laws. Since online poker legislation passed in 2005, the UK has been a global hub for real money poker, and with players increasingly demanding anonymous, fast transactions, crypto has become a clear solution.

That early adoption paid off in record-setting fashion. In 2019, Americas Cardroom made headlines when it hosted the largest cryptocurrency jackpot in online poker history. The VENOM tournament awarded a whopping $1.05 million (£786,000) in Bitcoin (more than 104 BTC at the time) to a Brazilian player dubbed “TheBigKid.” The final table featured players from eight different countries, underscoring crypto’s global appeal and the borderless nature of online poker in this new financial paradigm. Moreover, the speed and privacy of crypto are reshaping player expectations. With decentralised networks removing the need for banks and regulators to act as middlemen, players can fund their accounts or cash out in minutes, not days. This has redefined convenience in the poker ecosystem. According to insights from European Gaming and Next.io, crypto poker is exploding in popularity, particularly in countries with tech-savvy populations and liberalised gambling laws, such as the UK, Germany, and Canada. In fact, the UK is increasingly being mentioned alongside the US and Australia as a dominant force in the crypto gambling space.

How Crypto Poker is Reshaping the Industry

What started as an innovative payment option has evolved into a core pillar of online poker’s future. In 2025, crypto will be a strategic asset actively reshaping the online gaming experience from start to finish.

First, there’s trust. Blockchain technology allows for transparent, immutable transaction logs and smart contracts, which are beginning to influence how platforms manage prize pools, tournament buy-ins, and player incentives. This aligns perfectly with the poker industry’s increasing demand for provable fairness and decentralised oversight. Second, crypto integration is powering new product innovations. From in-app tokens to DeFi-backed staking systems, poker sites use blockchain to enhance player engagement while reducing operational costs. The Yahoo Finance industry report notes that these innovations are removing barriers to entry and streamlining compliance through advanced KYC protocols, a welcome shift in a space that’s long been dogged by bureaucracy. Third, crypto offers a lifeline to markets traditionally underserved by conventional banking infrastructure. Many players in South America, Eastern Europe, and Southeast Asia now use cryptocurrencies as their default payment method on poker platforms. This inclusivity not only expands the player base but also promotes financial empowerment through access to global games.

Brands like Americas Cardroom have capitalised on this perfectly. With a P2P (person-to-person) exchange system and a robust crypto framework, the site offers players maximum flexibility in both depositing and withdrawing. Their strategy helps future-proof transactions against a rapidly evolving economic and regulatory landscape. As crypto gambling continues to grow, poker sites that embrace digital currencies stand to gain the most. According to Finextra, countries leading this charge include the UK, Japan, and Malta, all of which are developing forward-thinking policies to regulate and encourage crypto gambling in a safe, scalable way.

Crypto’s Future at the Table

The marriage of cryptocurrency and online poker is a structural shift that’s transforming the industry at every level. From lightning-fast deposits to world-record jackpots, crypto has introduced a new era of accessibility, transparency, and innovation in online poker. With markets expanding, institutional backing growing, and tech-forward platforms like Americas Cardroom leading the charge, the house no longer holds all the cards. In 2025, the power is increasingly in the players’ hands, and their digital wallets.

Disclaimer: This article contains collaborative content and should not be considered an endorsement or recommendation by our website. Readers are encouraged to conduct their own research and exercise their own judgment before making any decisions based on the information provided in this article.

The post What Happens When Crypto Meets Poker: The New Era of Online Gaming in the UK and Beyond appeared first on The European Business Review.

Revolutionizing Africa’s Commodity Trade Infrastructure 

Konoval is spearheading efforts to modernize Africa’s trade infrastructure, which has long been  hampered by inefficiencies and lack of transparency. His initiatives deploy secure digital  platforms, real-time cross-border payments, and traceable logistics systems that dramatically  reduce friction in commodity trading. These improvements not only boost trade efficiency but also  expand global financing access for local businesses—especially SMEs—by building trust and  compliance into the system.

Unleashing the Power of Africa’s Gold Reserves 

Africa holds some of the world’s richest untapped gold deposits, but underinvestment and logistical  challenges have limited its impact. Konoval is tackling this head-on through a vertically integrated  strategy that encompasses mining, refining, and international distribution. At the heart of this  vision is Auric Hub, a state-of-the-art gold refinery that ensures full traceability and compliance.  Auric Hub serves both Konoval’s own mining operations and third-party producers—making Africa  a more competitive player in the global gold market. 

Minttora: Where Gold Meets Digital Finance 

Konoval’s flagship project, Minttora, is a game-changing initiative that merges industrial  operations with cutting-edge financial instruments. Minttora integrates: 

• Secure gold mining licenses 
• Refining via Auric Hub 
• Physical coin minting 
• Digitally certified, asset-backed tokens 

Each token is linked to a physically insured gold coin stored in high-security vaults, creating a  liquid, transparent, and investable gold-backed asset. This innovative framework opens up gold  investment to a wider base of investors, reduces risk, and enables broader financial participation. 

Future Plans: The Bank of Minerals 

Konoval’s forward-looking ambitions extend beyond gold. His team is developing the concept for a  Bank of Minerals, an institution that would support the development, financing, and  commercialization of Africa’s broader resource portfolio—including rare earth elements critical for  the clean energy transition. While still in early stages, this initiative marks a major step in creating a  Pan-African sovereign resource-backed financial network. 

Strategic Expansion in the UAE 

Minttora’s strategic growth is reinforced through a high-level partnership in the UAE. Abu Ahmed  Al Khaili, Minttora’s official representative in the Emirates, plays a pivotal role in connecting the  project to Gulf investors, regulators, and infrastructure partners. Al Khaili’s deep expertise in  logistics and regional business networks is crucial for expanding Minttora’s footprint in the Middle  East and North Africa. 

Empowering Communities and Advancing Financial Sovereignty 

Konoval’s strategy is underpinned by a deep commitment to inclusive development. His initiatives  aim to create jobs, empower local communities, and uphold the highest standards of  environmental sustainability and ethical mining. Through transparent revenue-sharing and  technology-enabled financial tools, Konoval is fostering financial sovereigntyacross Africa. 

A New Model for Africa’s Resource Future 

Minttora stands as more than a platform—it’s an ecosystem of innovation, combining real-world  assets with secure digital finance. From mine to mint to mobile wallet, Konoval’s model is setting a  new standard for how nations can harness their natural resources responsibly and profitably. 

By weaving together technology, industry, and community impact, Dmytro Konoval is not just  building a business—he is helping reshape Africa’s economic destiny on the global stage.

The photos in the article are provided by the company(s) mentioned in the article and are used with permission.

The post Dmytro Konoval Pushes Africa’s Economic Rise Through Fintech and Gold-Backed Industrial Innovation  appeared first on The European Business Review.

London, July 3, 2025 – Quant Strats Europe is set to return to London from 14-15 October, 2025.

Currently in its eighth year, Europe’s leading quantitative finance event will bring together more than 600 quant professionals from across the buy- and sell-side, regulatory bodies, financial technology providers and academia, to explore the evolving intersection of quantitative strategies, data science, artificial intelligence, and risk management. 

Spanning two days, the event programme will tackle the most pressing challenges and innovations in quantitative investing. Designed in close consultation with industry leaders, spearheaded by the Quant Strats Advisory Board, featuring senior quant experts from firms including Millenium Global, Man Group, BlackRock, Deutsche Bank and others, the programme will cover an array of themes. These include data sourcing and integration, challenges and opportunities offered by AI applications, natural language processing (NLP), large language models (LLMs), and their practical implications in trading, portfolio construction, and risk frameworks. Panels will also explore operational efficiency, alternative asset strategies, and critical discussions around talent, recruitment, and diversity in quantitative finance. 

The event will feature practitioner-led case studies and masterclasses designed to offer real-world insights into the tools, models, and data-driven strategies shaping the market, while also spotlighting latest academic thinking from University of Cambridge, University of Oxford and Queen Mary University of London.   

“Breakthroughs in AI, compute, and data infrastructure are fundamentally reshaping how investment strategies are researched, built, and executed. The pace of innovation has never been faster,” event director Thomas Lunn, head of sales and strategy at Alpha Events, commented. “As markets become more complex and real-time, traditional discretionary approaches are being augmented — or replaced — by systematic, data-driven methods that scale with technology. There has never been a more important time to run Quant Strats 2025. We’re bringing together the sharpest minds in the space to share insights, challenge assumptions, and help drive the next evolution of investing.”  

“Portfolio optimisation and management has always been about balancing risk, return, and liquidity. Today, however, that balance is harder to achieve for multi-asset portfolios with allocations to public and private markets, quantitative investment strategies, and hedge funds. Market regimes shift rapidly, correlations break down, and liquidity profiles change,” said Artur Sepp, Global Head of Investment Services Quant Group at LFT Private Banking.  

“At Quant Strats 2025, I look forward to discussing how to incorporate Andrew Lo’s Adaptive Markets Hypothesis for robust portfolio optimisation, which includes self-adaptive techniques and robust estimation,” Sepp said. 

Budha Bhattachary, Head of Systematic Research at Lombard Odier, said: “Traditional models struggle to capture geopolitical shocks, which is why we need new approaches that blend the right data with sound judgment and structural insight. Events like Quant Strats 2025 are therefore key and serve as an invaluable opportunity to gain insight into how others are thinking about these often confusing times.” 

Designed to serve as a platform for education, connection, and collaboration among professionals driving the future of finance through technology and data science, Quant Strats Europe offers unrivalled access to a network of portfolio managers, quant researchers, data scientists, risk managers, technologists, and institutional allocators, creating valuable opportunities to exchange ideas and foster strategic partnerships. In addition to its content, the event will also feature a high-calibre exhibition zone for select vendors and solution providers, showcasing latest innovations in quantitative tools, analytics, and data services. 

Registration is now open for delegates and sponsors. To find out more or to secure your place, visit the pricing page. 

For media enquiries, please contact:  

• Greentarget | GT  
• AlphaEvents@greentarget.co.uk  

About Quant Strats  

Quant Strats is the leading event platform for the global quantitative investment community. Bringing together portfolio managers, data scientists, and financial engineers, Quant Strats showcases the latest in systematic strategies, research, and technology shaping modern finance. From high-level keynotes to hands-on masterclasses, our events provide actionable insights and unmatched networking for professionals driving the future of quant.

The post Quantitative Finance Leaders to Share Insights from Dynamic Year and Explore Opportunities Shaping Industry’s Future at Quant Strats 2025 in London appeared first on The European Business Review.

By Guilherme F. Frederico

The beginning of 2025 has brought uncertainty to global supply chains due to the new US administration’s tariffs on global trade. This article considers how strategic sourcing can support supply chains in minimizing the effects of this new and impactful reality.

The global supply chain scenario has been threatened with dramatic change from the beginning of 2025. The tariff policies established by the new USA administration are going to pose a huge challenge for decision-makers involved in supply chains to overcome the cost increases generated by this new imposed reality. In this context, procurement professionals will have to rethink their sourcing bases and be able to strategically locate new sources of materials, as well as trying to find solutions to reduce the impact on supply chain margins. The following tips may be useful to strategic sourcing professionals in rethinking their current status and trying to minimize the impacts potentially caused by this new reality.

Locating New Supply Sources

This activity may be challenging in a situation where some materials and components are sourced from specific regions. However, there may be some opportunities to look at new regions where it is possible to buy supplies affected by the tariff rise. In this case, the ability and support of the logistics department may be crucial to make this new source feasible once a new logistics route is deployed. Also, companies must consider developing and enhancing competencies for less-capable suppliers located in such alternative regions. For this reason, strong collaborative action involving engineering and supplier development departments is the key to making this potential initiative feasible.

Trying to Renegotiate with the Current Suppliers

Perhaps this tip is the most feasible action, especially for the short and mid-terms. Strategic sourcing and procurement managers should be able, in renegotiating contracts, to share the financial risks and losses with their suppliers. New contracts should be designed by considering this new reality with a more shared risk perspective. Once the risk is shared, its impact may be reduced in the same proportion, too, which would mitigate the negative effects for both contractors and suppliers. In this initiative, legal departments should be completely involved from the beginning, with the aim of properly guiding the new contract design and negotiations.

Finding Solutions in the Current Supplier Base

Also, finding solutions in terms of the use of alternative materials and components and the reduction of consumption through project redesign could help to minimize the impact of this disturbing imposed event. Collaboration with suppliers in terms of product reengineering and development and new cost-reduction initiatives may help to reduce the financial impact on the supply chain added margin. Strategic sourcing professionals should be able to think systematically with regard to looking for opportunities in upstream supply chain flows, which may involve creative solutions that reduce the impact of cost increases. For instance, redesigning logistics and transportation flows and contracts may be an opportunity. Also, thinking about lean procurement is another potential opportunity to generate cost reduction through best management practices in sourcing and purchasing activities.

Final Remarks

It is obvious that it is impossible to completely avoid the effects that may be caused by this phenomenon of tariff increases, especially in the short and mid-terms. However, it is at this time that supply chain managers, and especially those involved in procurement and strategic sourcing activities, must demonstrate their talents and abilities to overcome such challenges. Hence, the need to consider highly qualified people to work in supply chains is even more relevant to supply chain performance amid times of challenge. In addition, investment in cutting-edge technologies, mainly in artificial intelligence and big data analytics, becomes crucial to support those professionals in the application of smart and mitigating solutions in this impacting moment for supply chains.

About the Author

Guilherme F. Frederico, PhD, is a Professor of Operations, Supply Chain, and Project Management at UFPR, Brazil, and a Visiting Research Professor at the University of Derby, UK. Author of Operations and Supply Chain Strategy in the Industry 4.0 Era, he has over 20 years’ experience and has published widely on Supply Chain 4.0, performance measurement, and operations strategy in top journals and conferences.

The post Enhancing the Role of Strategic Sourcing for Supply Chains amid Tariffs Trade War appeared first on The European Business Review.

After a series of hikes began at the end of 2021 by the Bank of England to combat inflation, many people were wondering when rates would finally start to drop.

Thankfully, between August 2024 and November 2024, the rates dropped from 5.25% to 4.75%. Then, in February 2025, it dropped from 4.75% to 4.5%. Now, will rates come down further? What factors influence these changes?

The answer depends on inflation, economic stability, and the Bank of England’s policies. While some experts predict a decrease in the coming months, others believe rates may stay the same for a while longer.

In this article, we’ll discuss the main reasons behind interest rate changes, expert forecasts for the future, and what lower rates could mean for your finances. If you’re hoping for relief from high borrowing costs, here’s what you need to know.

The Current State of Interest Rates in the UK

As of February 2025, the Bank of England has reduced the UK’s base interest rate from 4.75% to 4.5%, marking the lowest level since June 2023. This decision reflects concerns over the nation’s economic growth, with the Bank halving its 2025 growth forecast from 1.5% to 0.75%.

Despite the rate cut, inflation is projected to rise to 3.7% by autumn, which is nearly double the government’s target. The Monetary Policy Committee voted 7-2 in favour of the reduction, with two members advocating for a larger cut. The governor has indicated that there may be further gradual rate cuts made to support the weakening economy.

Economic Indicators That Influence Interest Rates

Many factors influence interest rates in the UK. Inflation is one of the biggest issues – when prices rise too quickly, the Bank of England raises interest rates to slow down spending.

Economic growth also plays a role in this. For instance, if the economy is weak, the Bank of England may lower interest rates to make borrowing cheaper, potentially giving the economy a chance to recover.

Employment levels matter too – high unemployment may lead to lower rates to boost job creation. Additionally, global events, such as supply chain disruptions or financial crises, can impact UK rates.

The Bank of England monitors these indicators and adjusts the interest rates to balance inflation and economic stability, as well as consumer affordability.

Impact of Global Economic Conditions

Global economic conditions have a big impact on UK interest rates. Events like inflation in major economies, changes in US interest rates, and global supply chain issues can all affect the UK’s financial situation.

For example, if the US raises its rates, the UK may need to follow to keep investors interested. Wars, energy price spikes, and economic slowdowns in key trading partners can also influence UK inflation and growth, leading the Bank of England to adjust rates.

Overall, since the UK is connected to the global economy, outside factors play a major part in shaping its interest rate decisions.

What Lower Interest Rates Could Mean for Consumers and Businesses

Lower interest rates can benefit consumers and businesses. For consumers, borrowing will become cheaper, making mortgages, car loans, and credit card payments more affordable.

This means people will have more money to spend, which can boost the economy. Homeowners with variable-rate mortgages may also have to make lower monthly payments, easing their financial pressure.

For businesses, reduced borrowing costs will encourage investment in growth, new jobs, and expansion. Small businesses, in particular, would benefit from cheaper loans. However, savers may earn less interest on their savings.

Ultimately, lower interest rates can stimulate economic activity but may also lead to rising inflation if demand increases too quickly.

To Sum Up

Interest rates play a huge role in the UK economy, affecting everything from mortgages to business investments. While the recent rate cut can offer some relief, future changes will depend on inflation, economic growth, and global conditions.

Lower rates can make borrowing cheaper and boost spending, but they also come with risks, such as rising inflation. As the Bank of England carefully balances these factors, consumers and businesses should stay informed and plan accordingly.

Whether rates go down further or remain steady, you need to understand their impact so you can make smarter financial decisions in the months ahead.

The post When are Interest Rates Going to Come Down in the UK? appeared first on The European Business Review.

By Alessandro Hatami

Banks that ignore financial inclusion miss more than a moral mission—they leave billions on the table. In this piece, Alessandro Hatami invites you to see underserved markets not as liabilities but as engines of growth. Forward-thinking leaders recognize that inclusion is not charity. It is smart, scalable business.

The financial services industry has never shouted louder about innovation. AI, embedded finance, and digital identity dominate conferences and boardroom agendas. Yet, behind the noise, one of the sector’s biggest engines of growth remains largely overlooked: financial inclusion.

For too long, financial inclusion has been treated as an act of charity or corporate responsibility. This view misses the real story. Expanding access to financial services is one of today’s most powerful – and profitable – strategies. Banks that continue to dismiss underserved communities are walking away from billions in potential revenue and long-term growth.

Financial inclusion means ensuring that individuals and businesses everywhere can access affordable, appropriate, and empowering financial services: payments, savings, credit, insurance, and advice. Despite decades of technological advancement, 1.4 billion people, globally, remain unbanked. As financial services increasingly move operations online, those lacking digital skills, official ID, or steady income risk being pushed even further to the margins.

The human cost of exclusion is significant. People without access to financial services often pay higher fees, rely on high-risk credit, and struggle to build assets or manage emergencies. In the UK, low-income households pay an estimated £490 extra per year simply because of the “poverty premium”. And the damage doesn’t stop with individuals – it reverberates across entire economies. Financial exclusion stifles entrepreneurship, dampens consumption, and limits economic resilience.

For banks, the cost of inaction is increasingly evident. Around 2% of the UK population remains unbanked, representing nearly £1bn in missed potential profits, annually. In an industry that generated £44.3bn in pre-tax profits last year, that’s not a rounding error – it’s a serious lost opportunity.

How fintechs are outpacing banks by serving the unbanked

While traditional banks hesitated, fintech innovators proved that designing for excluded communities creates strong, scalable businesses. Nubank began by offering no-fee app managed credit cards to those ignored by legacy banks in Brazil. Today, it serves more than 100 million customers across Latin America and is valued at over $49bn. Mobile money service M-Pesa turned phones into financial lifelines, lifting Kenya’s financial inclusion rate from 26% to 84%: And PayTM, which started as a mobile recharge platform, evolved into a super-app offering digital wallets, credit, insurance, and investment tools – reaching hundreds of millions, especially in rural and semi-urban India.

These successes happened because fintechs designed products with accessibility, mobile-first usage, and alternative data models in mind. They saw opportunity where others saw risk – and they built businesses that now dominate their markets.

Why legacy systems and thinking are holding banks back

Traditional banks continue to insist that low-income customers are unprofitable. Fintechs meanwhile are using alternative data, mobile-first design, and automation to reach underserved populations – cheaply, and at scale.

Despite mounting evidence, many banks still operate with outdated assumptions and rigid infrastructures. Standard onboarding requirements – formal IDs, proof of address, in-branch verification – create insurmountable hurdles for millions. Traditional credit-scoring models penalise freelancers, migrants, and those without long-established financial footprints. Even some fintechs, initially promising disruption, end up focusing on affluent, digitally savvy users, rather than those most in need of service.

Technology is not the barrier. Mindset is. To change the dynamic, financial institutions must rethink product design, onboarding, risk models, and partnerships. They must question whether their services are accessible to someone without a passport, or useful to someone whose income fluctuates weekly.

Bias, too, must be tackled head-on. Algorithms trained on exclusionary historical data risk replicating those patterns, denying fair access to those who need it most. Without active oversight and re-engineering, even AI-driven innovations can deepen divides rather than bridge them.

Why inclusive finance is the next competitive edge

As the industry evolves, innovation and inclusion are being recognised not as trade-offs, but as twin drivers of sustainable growth. Regulators are laying the foundations for a more inclusive financial ecosystem. Initiatives like open banking, streamlined Know Your Customer (KYC) regulations, and digital ID platforms are making it easier for new players – and progressive incumbents – to reach excluded populations. For forward-looking banks and fintechs, inclusion represents one of the few genuine remaining growth frontiers. Inclusion unlocks underserved markets, builds loyalty among first-time customers, strengthens brand resilience, and positions companies ahead of regulatory shifts. In a world where acquisition costs are soaring, and traditional markets are saturated, betting on inclusion is not just good policy – it’s smart business.

The next great advances in financial services won’t come from offering slightly faster payments to the already affluent. They will come from making first-time banking, affordable credit, and secure savings available to the billions who have been left behind.

About the Author

Alessandro Hatami is the co-author of Inclusive Finance: How Fintech and Innovation Can Transform Financial Inclusion (Kogan Page, May 2025) and Managing Partner at Pacemakers.io. He advises leadership teams and boards across financial services on innovation, digital transformation, and sustainable growth.

The post Why Banks that Ignore Financial Inclusion are Losing Millions appeared first on The European Business Review.

Having led others for so long, executives close to retirement often struggle with the prospect of leaving and slowly fading into the background. In this guide, Michael Watkins and Chris Donkin outlined how senior leaders can plan, prepare, and even look forward to a fulfilling life after retirement.

When Reed Hastings announced his departure as CEO of Netflix in January 2023, his succession felt natural and even inevitable. The same was true when Jacinda Ardern stepped down as Prime Minister of New Zealand that same month. Both transitions appeared effortless, but such smooth handovers are rare. Most senior leaders struggle significantly with the decision to step down, often holding on long after their optimal departure date.

If you’re a senior leader contemplating retirement, you are likely facing this struggle firsthand. Your challenges are more complex and nuanced than most succession literature suggests. Through our research and extensive work with retiring executives, we have found that the barriers to a successful transition are primarily psychological rather than practical—and addressing them requires a deep understanding and strategic action.

Understanding the inner struggle

The psychological barriers to retirement run far deeper than most leaders initially recognize. These barriers are not merely professional concerns but profound psychological constructs built and reinforced over decades of leadership. They are intricately woven into the fabric of one’s identity, self-worth, purpose, and mortality. Understanding these barriers and acknowledging their power is the crucial first step toward navigating a successful transition.

The Identity Paradox

The traits that propelled you to leadership and sustained your success can become significant obstacles in recognizing when it’s time to step down. Determination, resilience, unwavering commitment, and the ability to overcome challenges have defined not just your leadership style but your entire approach to life. The cognitive dissonance becomes fundamental: how can stepping away be the right choice when persistence has always been the answer? This paradox explains why many capable leaders hold on too long, potentially compromising their organizations’ future success and their own legacies. The traits that were once assets become liabilities in the face of succession.

The Emotional Reality

The intellectual understanding of retirement timing often collides with emotional unreadiness. This disconnect between rational acceptance and emotional resistance creates a complex internal struggle that can paralyze decision-making. The emotional dimension of retirement extends far beyond the simple fear of change—it encompasses feelings of loss, questions of self-worth, and deep-seated anxieties about the future.

The Support System Shift

The corporate infrastructure surrounding senior leadership is an invisible yet essential part of daily operations. This support system goes beyond mere convenience; it extends your capabilities and amplifies your impact and efficiency. The potential loss of this infrastructure is more than a practical challenge; it signifies a fundamental shift in how you interact with the world and your ability to create change.

The Existential Question

Retirement forces a confrontation with the end of a career and questions about personal legacy, mortality, and meaning.

The most profound challenge is confronting the existential implications of retirement. For leaders who have dedicated decades to their organizations, this role transcends mere employment—it becomes a core part of their identity and purpose. Retirement forces a confrontation with the end of a career and questions about personal legacy, mortality, and meaning. This existential reckoning demands a fundamental reevaluation of how you define yourself and your worth beyond your professional achievements. The challenge is not just about leaving a role; it’s about reconceptualizing your place in the world and your sources of meaning and purpose.

Managing the psychological transition

The psychological journey of retirement requires as much strategic planning as the operational handover of your role. While organizations typically have detailed protocols for succession planning, the psychological transition demands equal, if not greater, attention. This internal journey must be approached with the same rigor and strategic thinking that characterized your leadership career.

Understanding Your Emotional Timeline

Research has identified distinct emotional phases that executives typically experience during retirement transitions. The journey begins with an anticipatory phase marked by mixed emotions of anxiety and excitement. Many leaders enter a period of euphoria and relief upon retirement—a psychological unleashing from years of pressure and responsibility. This initial honeymoon phase, however, typically gives way to a more complex emotional landscape.

The second phase often brings unexpected challenges as the reality of the transition sets in. This period can involve feelings of disorientation, loss of purpose, and questioning of identity. The timing and intensity of this phase vary, but its arrival is nearly universal. Understanding this emotional arc helps normalize the experience and provides a framework for managing these challenges proactively.

The final phase involves reinvention and renewal, where leaders begin to craft their new identity and purpose. This stage requires active engagement in creating meaning beyond traditional professional achievements. The timeline for reaching this phase varies significantly, and preparation, support systems, and individual psychological readiness influence it.

Creating Psychological Anchors

The transition from structured leadership to retirement requires establishing new psychological foundations. These anchors serve as stabilizing forces during periods of uncertainty and change. They provide continuity of purpose while allowing space for new growth and discovery.

The transition from structured leadership to retirement requires establishing new psychological foundations. These anchors serve as stabilizing forces during periods of uncertainty and change.

Effective psychological anchors combine structure with flexibility, maintaining connections to areas of expertise while fostering new interests and relationships. They should be deliberately designed to support intellectual engagement and emotional well-being. The key is creating systems that provide stability without recreating the constraints of corporate life.

Working with Transition Coaches

Professional support during this transition can be invaluable. Transition coaches specialize in the unique psychological challenges faced by retiring executives. They bring expertise in identity reformation, status adjustment, and creating new purpose narratives. Their role extends beyond traditional executive coaching, focusing specifically on the psychological dimensions of retirement.

These specialists help leaders navigate the complex terrain between their executive identity and their emerging post-retirement self. They provide tools for managing the psychological aspects of transition, from processing the loss of power and influence to developing new sources of meaning and fulfillment.

The coaching relationship offers a structured space for exploring anxieties, testing new ideas, and developing strategies for emotional resilience. It provides accountability and support while helping leaders maintain perspective during challenging transition phases. Most importantly, it helps transform what could be a period of decline into an opportunity for growth and reinvention.

This work often involves developing new metrics for success, redefining relationship dynamics, and creating frameworks for decision-making in this new phase of life. The goal is not to eliminate the transition challenges but to develop the psychological tools and perspectives needed to navigate them effectively.

Building meaningful post-retirement activities

The transition from executive leadership to retirement requires a fundamental shift in the conceptualization of engagement and purpose. The challenge is not to fill time—your network and reputation will generate more opportunities than you can accept—but to create a portfolio of activities that provides genuine fulfillment and leverages your capabilities in meaningful ways.

Beyond Traditional Board Work

While board positions represent a natural extension of executive experience, the most fulfilling post-retirement careers often transcend conventional corporate roles. The key lies in identifying opportunities that align with your interests while allowing you to apply your leadership experience in fresh contexts. Consider roles that challenge you to think differently, engage with new demographics, or address problems from different angles than those you encountered as an executive.

Creating Impact Through Teaching and Mentoring

The transmission of knowledge and experience to future leaders offers a particularly rewarding path for retired executives. Teaching and mentoring roles provide intellectual stimulation while offering the opportunity to shape future business leaders. These roles demand a different kind of leadership—one focused on developing others rather than directing outcomes—and often lead to unexpected personal growth as you articulate and examine your own leadership principles and experiences.

Entrepreneurial Ventures with Purpose

Post-retirement entrepreneurship fundamentally differs from traditional business leadership. Retired executives can pursue ventures driven primarily by purpose and passion, free from the pressures of shareholder expectations and quarterly results. These endeavors often focus on solving societal challenges or addressing market gaps identified during their executive careers. This allows them to combine their business acumen with personal values in ways not always possible in a corporate setting.

Navigating family dynamics

The personal aspect of retirement can be just as challenging as the professional shift. Moving from having limited family time to being constantly present demands careful navigation and clear communication. This change influences not only daily routines but also the core dynamics of relationships that have developed over decades of executive life.

Redefining Domestic Roles

The domestic sphere often has well-established systems and patterns developed over years of executive focus. Retirement requires carefully renegotiating roles, responsibilities, and decision-making processes. This adjustment needs sensitivity to existing patterns and recognition that efficiency in domestic matters may not align with corporate management principles.

Managing Expectations

Retirement expectations often differ significantly among family members. These differences extend beyond daily routines to encompass fundamental questions about lifestyle, time allocation, and future plans. Resolving these differences requires the same level of strategic thinking and communication you applied to corporate challenges but with an added layer of emotional complexity.

Creating New Shared Experiences

The development of new shared activities and interests becomes crucial in retirement. This process involves more than simply spending more time together—it requires building new patterns of interaction and finding fresh ways to connect outside the familiar context of business life. The goal is to develop activities that create mutual engagement while respecting individual interests and needs.

Maintaining Personal Space

Preserving individual autonomy while increasing togetherness becomes a crucial challenge in retirement. This balance requires a conscious effort to maintain separate interests and activities while building a new shared life. The key is developing patterns that allow for independence and togetherness, creating a sustainable rhythm for this new phase of life.

Making the transition work

The practical aspects of retirement require as much attention as the emotional and relational dimensions. Time management becomes more complex when one moves from a structured corporate environment to self-directed days. The challenge is creating enough structure to maintain purpose and productivity while preserving retirement freedom.

Financial planning should go beyond traditional retirement considerations to include the practical aspects of new activities and ventures. This planning must address both personal fulfillment and practical needs, creating a framework that supports your chosen post-retirement activities while ensuring long-term security.

Cultivating and maintaining support networks is crucial during this transition. These networks should go beyond professional connections and include individuals who offer emotional support and guidance during this significant life change. The aim is to build a diverse support system that helps people navigate retirement’s practical and emotional challenges.

Looking forward

The most successful transitions we’ve observed share a common element: the retiring leader shifted their mindset from loss to creation. They viewed retirement not as the end of their leadership journey but as the beginning of a new chapter.

The art of stepping down lies not in denying these psychological barriers but in acknowledging and working through them while building a meaningful next chapter.

The most successful transitions we’ve observed share a common element: the retiring leader shifted their mindset from loss to creation. They viewed retirement not as the end of their leadership journey but as the beginning of a new chapter where their experience and wisdom could be applied in different, often more personally meaningful ways.

Your next chapter awaits. The question is not whether you will write it but how you will approach it. Will you hold on for too long, potentially diminishing your legacy? Or will you begin now to create a transition that honors both your achievements and your organization’s future?

The goal is not to replicate the intensity and structure of executive life but to create a new chapter that provides meaning, impact, and personal fulfillment while utilizing the valuable experience and insights gained throughout your leadership career. By recognizing the psychological challenges and actively working toward your next chapter, you can create a transition that meets both your personal needs and your organization’s future.

About the Authors

Michael Watkins is a professor of leadership at the IMD Business School, co-founder of Genesis Advisers, and a bestselling business author of books including The Six Disciplines of Strategic Thinking and The First 90 Days.

Chris Donkin is a Managing Partner at Savannah Group and co-lead of the firm’s Board Practice, advising clients on next generation leadership succession.

The post The Executive’s Guide to Retirement: Making Peace and Building Your Next Chapter appeared first on The European Business Review.

It might be counterintuitive, but British banks have responded to this global uncertainty by slashing rates. With a cost-of-living crisis and spiraling house prices, this is a chance to breathe for many UK borrowers, but it could be short-lived.

That means it’s an opportunity to get a valuation on your home and lock in a long-term fixed-rate mortgage before the pendulum swings back and interest rates potentially rise.

Why Have UK Mortgage Rates Fallen? 

Swap rates are the main reason mortgage rates have fallen in the UK. Essentially, that’s the rate the bank borrows at over a fixed term, similar to your fixed-rate mortgage. Trump’s announcement spurred a fall from 4.04% to 3.87% in the five-year UK swap rates. Two-year swaps fell from their peak of 4.68% in March to 4.40% following the news from the US.

In the UK, HSBC, Barclays, Halifax, and Coventry Building Society all announced dramatic adjustments to their fixed-rate mortgages as a result. Barclays slashed more than 0.25% off its 5-year fixed-rate mortgage with an offer of 3.99%. HSBC also revealed a 10-year fixed-rate offer at 4.04%, down from 4.45%, and other lenders are currently responding to the competitive landscape.

Predicting the future of the housing and mortgage market is fraught with danger, but this could be a window of opportunity. This might be as good as it gets for UK borrowers for quite some time, as the fallout from the global tariffs and subsequent trade wars takes hold. So, is this the chance to secure a new fixed-rate mortgage for the long term?

Trump’s Tariffs and What They Mean 

President Trump described these tariffs as a National Renewal Strategy, which aims to reduce dependence on Chinese goods and revive the US manufacturing industry. Those are noble goals, but the global economy is a complex beast, and there have been a number of alarming signs in the wake of the announcement.

First, the S&P 500 fell 2.4% in just two days, global oil prices dropped by 3.7% in response to a potential recession, and the Chinese yuan fell by 1.6% against the dollar. The UK will feel the effects of the trade deal and tariffs, as 9.5% of UK exports head to the US, but the global financial instability poses the biggest threat. The Bank of England is already working on contingency plans in case of a global downturn, which includes re-evaluating the interest rate trajectory.

Could Inflation Be on the Way? 

The National Institute of Economic and Social Research (NIESR) has claimed that persistent US tariffs could have catastrophic effects. It predicts a 50% reduction in UK GDP growth between now and 2026, a 3-4% rise in inflation over the next two years, and a collapse in business investment. If those predictions come to pass, the Bank of England will be forced to raise interest rates.

Other troubling signs of inflation are on the horizon, and increased interest rates will impact British homeowners’ mortgage payments. 10-year gilt yields have fallen from 4.28% to 4.11% in just four trading sessions, while the 2-year gilt yield fell from 4.53% to 4.34%. The 2-year gilt yield is one of the major barometers of interest rate expectations.

Since the tariff announcement, the UK Pound has also dropped against the US Dollar, from 1.285 to 1.265. This will increase the cost of importing goods, and inflation will follow.

What Should You Do? 

Unless President Trump reverses the tariffs in the near future, which seems unlikely, the writing is on the wall. So, the smart move now is to take advantage of this dip in the mortgage rate and secure a new long-term mortgage at a fixed rate. That’s the best move right now, and if you can renegotiate an existing fixed-rate deal with an Early Repayment Charge, then that may be the way to go.

Predicting the future of financial markets is difficult at the best of times, and President Trump’s tariffs are a step into the unknown. All signs point to an eventual climb in interest rates, though, so taking advantage of this temporary dip could save you a lot of money in the long term.

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As China is the world’s “most promising super-sized market,” Lan conveyed that new measures have been taken to stimulate consumption on both the supply and demand sides.

At the China Development Forum held on March 23-24, Lan emphasized that despite economic difficulties, the country’s experience in macroeconomic and fiscal management has grown. China’s ultra long-term growth potential is supported by its strong foundation, resilience, and vast consumer market. Lan also noted that proactive steps have been taken to address risks and that fiscal maneuverability remains high.

This comes as the gold price remains above $3,000 per ounce, indicating strong demand for a safe-haven asset. China is one of the top six largest holders of gold, with 2,280 tonnes as of December 2024. Still, it trails far from the U.S., which holds 8,133 tonnes.

In this context, 1.3 trillion yuan (about $181 billion) of ultra-long-term special bonds will be issued in 2025. This figure, increased by 300 billion yuan compared to last year, is aimed at supporting consumption and investment. In contrast, U.S. Treasury bonds (e.g., 10 year Treasury Yield) generally fund major government expenditures, including finance deficit, social programs, and defence.

Lan stated that financial resources have been allocated to education, science, technology, and talent development, with the aim of accelerating the growth of new-generation productive forces.

Additionally, the central government’s budget share has been increased to support the integration of technological and industrial innovations.

These steps aim to strengthen China’s global competitive advantage and improve the coordination of funding channels to expand effective investments.

Speaking to international business leaders, Lan pointed out that China’s high-standard opening-up policy will be supported by fiscal mechanisms. He emphasized that reforms that guarantee equal treatment for all types of businesses and improve the business environment will continue, while reiterating China’s commitment to contributing to global economic stability.

Within the forum’s theme, “Unleashing Development Dynamics for Global Economic Stability,” analysts are closely monitoring the impact of China’s fiscal policies on regional and global markets.

However, we should keep a close eye on the U.S. tariffs, which could disrupt global supply chains and trade flows and affect market confidence. China’s measures could play a critical role in boosting investor confidence and ensuring the sustainability of economic growth.

The post China Goes Big in 2025: Can a Fiscal Surge Spark a Global Ripple? appeared first on The European Business Review.

One of the most effective ways to reduce financial errors before they even occur is to implement smart accounts payable automation. By reducing manual data entry, standardising invoice approvals, and flagging inconsistencies in real time, automation tools help catch issues early and ensure nothing slips through the cracks.

But whether you use software or not, there are still practical steps you can take to keep your financial records accurate. Below are some key strategies to help you spot (and avoid) errors quickly and confidently.

Reconcile Accounts Regularly

Reconciliation is the process of matching internal financial records with bank statements or other external documents. Doing this regularly—weekly or monthly—helps you catch discrepancies while they’re still fresh and easier to resolve.

Here’s what to look for during reconciliation:

• Duplicate transactions
• Missing entries (especially income or expense records)
• Unusual amounts or unapproved charges
• Bank fees or interest charges not recorded in your books

The more often you reconcile, the less likely small issues will compound into major problems.

Create Checklists for Month-End Reviews

Relying on memory or scattered notes is a fast track to missed details. A month-end checklist can streamline your review process and ensure everything gets covered. Your checklist might include:

• Reviewing all invoices and payments for the month
• Verifying payroll and superannuation totals
• Confirming GST, PAYG and other tax obligations
• Checking for outstanding debts or unpaid supplier bills

By following the same routine each month, it becomes easier to spot inconsistencies because you’re comparing like with like.

Monitor Key Metrics

Certain financial indicators can act as an early warning system for errors. These include:

• Cash flow trends: Sudden drops in cash on hand might signal an overlooked expense or unrecorded revenue.
• Accounts receivable ageing: An increase in overdue invoices may point to a processing error or missed follow-up.
• Expense spikes: A sudden jump in office expenses or utilities, for example, might highlight a billing error or duplicated payment.

By tracking your numbers over time, you can spot unusual patterns at a glance.

Use Segmentation to Spot Irregularities

Breaking your data into categories—like departments, product lines, or time periods—can make it easier to spot where things aren’t adding up. For example, if one team’s expenses are rising faster than others without a clear explanation, that might warrant a deeper look.

This method also helps pinpoint where training may be needed or where certain processes are consistently causing issues.

Encourage a Culture of Accuracy

Mistakes often happen when employees are rushed, under-trained, or unclear about procedures. To reduce this, make it easy for your team to flag potential issues or ask for clarification when needed.

Clear documentation, ongoing training, and a strong review process will go a long way in reducing human error. It also helps to assign financial responsibilities to the right people—giving each task to someone who has both the skill and time to handle it properly.

Accuracy in finance isn’t just about spreadsheets—it’s about having the right systems and habits in place. Whether you use automation tools or prefer manual checks, a proactive approach to monitoring your company’s financial health will save you time and stress. Regular reviews, smart processes, and clear oversight are your best defences against costly mistakes.

The post How to Quickly Spot Errors in Your Company’s Finances appeared first on The European Business Review.

Disinformation: A Direct Threat to European Democracy

In countries like Poland, disinformation is more than a moral or social dilemma—it is a direct threat to electoral integrity and democratic stability. Research from the EUvsDisinfo Lab indicates that Poland is one of the most targeted nations for disinformation campaigns, particularly influenced by Russian propaganda in the lead-up to the 2025 presidential elections. Over the past decade, Poland has been subjected to nearly 1,500 cases of disinformation attacks, making it one of the most affected countries globally, as highlighted by Poland’s Deputy Prime Minister responsible for digital affairs.

The use of disinformation as a political weapon has the power to manipulate public perception and sway election results, both locally and internationally. To address this, European leaders must implement a multifaceted approach that includes legal, political, and community-driven efforts to combat misinformation. However, any action taken should carefully balance the need to preserve free speech and media independence while ensuring safeguards against harmful propaganda.

One of the key tools in the EU’s arsenal is the Digital Services Act (DSA)—a regulation designed to monitor and remove illegal content, thereby reducing the spread of false information online. Under the DSA, citizens will have the right to request the removal of unlawful content through a streamlined administrative process.

Poland has already introduced protective measures in anticipation of its upcoming presidential elections. The government has committed to closely monitoring disinformation spread across traditional and social media platforms such as X (formerly Twitter), TikTok, and Telegram. “Disinformation has become a political tool that can alter election outcomes and shape public opinion worldwide. Poland is one of the countries that must be particularly vigilant about this phenomenon,” warns Wojciech Głażewski, director at Check Point Software Technologies Poland, a firm specializing in cybersecurity and corporate protection against digital threats.

Community-Led Initiatives and Legal Frameworks

In addition to regulatory efforts, community-driven initiatives play a crucial role in mitigating the effects of disinformation. A notable example is the legal framework proposed by Polish entrepreneur Robert Szustkowski, which seeks to bolster individual protections against false narratives and introduce systemic reforms for managing disinformation in Europe. His proposal advocates for the extension of the “Right to Be Forgotten” to media entities, positioning them as data controllers. Additionally, Szustkowski suggests establishing a registry of personal rights violations and appointing a Readers’ Rights Ombudsman, who would assist victims of disinformation in filing standardized complaints.

While legal and regulatory measures are vital, they must be supplemented with investments in journalism and education. The European Media Digital Observatory (EDMO) has proposed the creation of national hubs dedicated to coordinated fact-checking efforts. However, Szustkowski argues that legislation alone will not be sufficient.

To build resilience against disinformation, citizens must be equipped with the skills to identify and counteract false information. A 2020 Eurobarometer study revealed that 71% of Europeans regularly encounter disinformation, and the majority believe its rapid spread poses a serious threat to democracy. Educating the public on digital literacy and critical thinking is an essential component of any long-term strategy to combat misinformation.

As disinformation continues to evolve and threaten democratic institutions, the European Union must act decisively. Robert Szustkowski’ call to strengthen investment in quality journalism, enhance fact-checking mechanisms, and implement robust legal frameworks will be critical to preserving the integrity of public discourse and safeguarding democratic values.

The photo in the article is provided by the company(s) mentioned in the article and used with permission.

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This fiscal year, Hong Kong faces a budget deficit of HK$87 billion (US$11 billion). In an attempt to tackle the shortfall, Hong Kong’s government is implementing measures such as a HK$2 transport fare cut for those aged 60 and above, salary cuts for government employees, and a 7% cut in civil services expenses.

Last year, Hong Kong collected only US$2.5 billion in taxes, compared to its peak of US$21.2 billion in 2018. The reason for that is a 30% decline in housing prices and fewer trades.

Another measure taken to boost investment inflows is the launch of the Hong Kong AI Research and Development Institute, worth HK$1 billion ($128 million US). This entity will support AI-related research and development, as well as industry applications, according to Chan.

This initiative follows US President Trump’s 10% tariffs targeting imports from China and Hong Kong. After the tariffs were enforced, Hong Kong’s chief secretary, the city’s number two official, said: “We will file a complaint to the WTO [the World Trade Organization] regarding this unreasonable arrangement.” He also claimed that the US has disregarded Hong Kong’s status as a separate customs territory. It also has its own representatives in many organizations, including the Financial Action Task Force and the Asia-Pacific Economic Cooperation Forum.

Trade tensions between China and the United States began years ago. Back in 2020, a new round of escalation followed the introduction of the national security law (NSL). Both Beijing and Hong Kong authorities argued that the law was necessary to keep peace and protect the citizens from the radicals.

Hong Kong’s officials follow Beijing’s principle of “one country, two systems,” first introduced in the 1980s during negotiations with Great Britain regarding the status of Macau and Hong Kong.

Since then, mainland China has not been heavily involved in the legislation or economic affairs of these cities, until the adoption of the law led to stricter measures.

The 2020 act heavily impacted Hong Kong’s autonomy. It states that if Beijing law conflicts with any Hong Kong law, Beijing law takes priority. Also, it strengthened management of foreign non-governmental organizations and news agencies and expanded powers for surveillance and wire-taping citizens suspected of breaking the law.

The passage of the NSL was followed by measures from the US government, which imposed financial sanctions on 42 officials from the People’s Republic of China and Hong Kong.

Recently, President Trump added an extra 10% tariff on Chinese imports, treating Hong Kong the same way as mainland China to combat drug smuggling into the United States.

On the SPX chart below, the S&P 500 is compared with the Hang Send Index which tracks the Hong Kong companies listed on the Hong Kong exchange. It is clear that the recent global market downfall affected Hong Kong less than the US economy.

But, growing trade tensions raise concerns about Hong Kong’s economic future. If former allies start treating it the same way as the People’s Republic of China, will “one country, two systems” continue to exist?

The post Tariffs, Taxes, and Tensions: The Economic Challenges Facing Hong Kong appeared first on The European Business Review.

In February of this year, President Trump called for the creation of a national Sovereign Wealth Fund (SWF) with more than $2 trillion in assets. An SWF is a state-owned investment fund that focuses on economic development. This type of fund may offer the U.S. several strategic advantages, particularly in stabilizing government finances, enhancing long-term economic competitiveness, and generating returns on national wealth, with the promise of fiscal stability and deficit reduction. Any surplus revenues earned may be used to invest in assets that generate long-term returns, helping to grow real gross domestic product (net of inflation), and reduce national debt and fiscal deficits. The funds may also act as a stabilization mechanism during economic downturns by providing funding when tax revenues decline.

Additionally, the fund could be used to invest in industries vital to national security and economic leadership, such as semiconductors, AI, clean energy, and infrastructure, thus ensuring both economic sovereignty and supply chain resilience. Like Norway’s sovereign wealth fund, a U.S. fund could grow over time and be used to fund pensions, social programs, or public infrastructure without raising taxes.

Two other big benefits of a fund are: ^[1] enhancing global competitiveness, as strategic investments in post-war reconstruction, technology, advanced manufacturing, and green energy would ensure that the U.S. remains an economic leader; and ^[2] reducing dependence on foreign investment, since the U.S. could finance more domestic projects and innovations without relying heavily on foreign capital. Norway, China, Abu Dhabi, Japan and Saudi Arabia all have robust and well-performing sovereign wealth funds. Therefore, it behooves the U.S. to give serious consideration (that means ensuring guardrails and independence) to establishing such a financial vehicle.

Table 1 summarizes some of the largest SWFs, including their country of origin, establishment date, and changes in the asset size over the last six years.

Table 1

Note: Asset sizes for 2024 are based on data from the Sovereign Wealth Fund Institute.^[1]Data for 2018 are from Reuters^[2]

Norway, whose vast oil and gas production in the North Sea generates 10% of the country’s GDP has long held the position as the largest single SWF globally. In 2024 alone, the fund earned $222 billion in capital gains based on its investments in the tech sector, most notably its top holdings, Apple, Microsoft, and Nvidia. However, it is a well-known fact that in the last five years, the “Magnificent Seven”^[3], driven by the AI boom have significantly outpaced the rest of the S&P 500’s 2024 gain. In fact, these seven stocks alone were responsible for more than half of this market’s return. This fact is important because many of the SWF’s recent outsized returns likely occurred because of their US-based investments. Although most major global markets finished 2024 in positive territory, in the fourth quarter, with the exception of the S&P 500, the majority of markets declined. In 2024, emerging markets beat developed international markets (7.5% versus 3.8%) but significantly trailed the US.

Combined, China’s two biggest funds, hold $2.4 trillion in assets facilitating investments in infrastructure, green energy, and mining projects across Africa and much of the developing world. The top SWF’s in the Middle East which aim to diversify their economies away from oil, have over $3.5 trillion in assets, invested in strategic global investments in the following sectors: technology, healthcare, renewable energy, infrastructure, and financial services.

Investment returns for each fund are not publicly disclosed in a standardized manner and the market value of individual investments in illiquid private equity and credit which have grown in dominance in recent years is difficult to ascertain, however it is noteworthy that SWFs collectively added approximately $866 billion in assets just in the 12 months leading up to March 2018, with 71% of these funds experiencing asset growth during that period. Recent estimates place the total assets under management by SWFs in excess of  $13 trillion. Individual annual reports of each SWF provide insights into their various investment returns and strategies over time, with the common theme of a global diversification approach away from their local revenue streams while increasingly using AI in their investment processes. Sovereign investors have emphasized stability of asset allocations combined with lower volatility in recent years because of the delayed start to global monetary policy tightening combined with a loosening of fiscal policy.

Joseph Bankman of Stanford Law School and Mark P. Gergen at the University of California at Berkeley School of Law have suggested that the US SWF could be funded by eliminating corporate income tax, instead requiring corporations to issue nonvoting shares directly to the government. The government fund would be required to hold the shares as an investment, and the income they generate would replace the tax. Their proposal would create nonvoting shares owned by the government but still share in investment losses as well as gains.

Undoubtedly, if done correctly a national US fund can help it to improve its global perception and influence while securing important access to important supply chain components, commonly known as vertical integration. This can involve acquiring or merging with companies that supply raw materials, manufacture products, or distribute finished goods. The goal is to gain more control over the supply chain, reduce costs, improve efficiency, and increase market power.

To avoid financial corruption and political interference, a US SWF should concentrate on global markets rather than domestic ones, where US government investments could have a hugely distorting effect. The fund should also be a passive investor rather than invest and assume direct ownership stakes in US corporations and companies, focusing on strategically maximizing returns by perhaps investing in potentially high-reward businesses, such as in raw materials, artificial intelligence and emerging energy sectors.

The SWF also should be run by a non-partisan body of advisers, for example the SEC, ensuring transparency and accountability much like in the public financial markets. This body should be independent from both the different priorities of presidential administrations and from the spending priorities of Congress and its members in both chambers. This also means the investments of the SWF should happen in transparent and responsible ways within a firm and strict legal framework.

Sovereign wealth funds do not play a role in fiscal management, but SWFs can stabilize a country’s economy through diversification and the generation of wealth for future generations. Therefore, the US would be wise to carefully evaluate and consider their adoption as an economic policy instrument.

About the Authors

Deanne Butchey and Jerry Haar are professors of finance and international business, respectively, in the College of Business at Florida International University.

References

[1] https://www.swfinstitute.org/fund-rankings/sovereign-wealth-fund

[2] Note: Data as of August 2018; SAFE Investment Company and Temasek Holdings assets figures are best guess estimations. https://www.reuters.com/business/finance/norway-wealth-fund-posts-record-222-bln-annual-profit-tech-boom-2025-01-29/

[3] Alphabet, Amazon, Apple, Meta, Microsoft, NVIDIA, Tesla.

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The Relationship Between Tariffs and Inflation

To better understand how U.S. tariffs have influenced inflation and trade, the table below outlines key statistics from recent years, showcasing tariff rates, inflation trends, and trade volume changes.

This data highlights the correlation between rising tariffs, inflation fluctuations, and changes in trade volume. As tariffs increased, import and export volumes declined, leading to higher costs and trade imbalances.

How Tariffs Contribute to Rising Prices

Tariffs are taxes imposed on imported goods, increasing their costs for businesses and consumers. When tariffs are levied, importers often pass on these additional costs to consumers through higher prices. This price increase contributes to inflation, making everyday goods more expensive. Industries that rely heavily on imports, such as manufacturing, technology, and retail, are particularly vulnerable to these price hikes.

Additionally, the cost of raw materials and components used in domestic production rises when tariffs target essential imports like steel, aluminum, and semiconductors. As production costs increase, businesses must either absorb these expenses or transfer them to consumers, fueling inflation.

The Ripple Effect on Supply Chains

U.S. tariffs not only raise prices but also disrupt supply chains. Many American companies depend on international suppliers for critical components and raw materials. When tariffs make these imports more expensive or less accessible, businesses must seek alternative suppliers, often at higher costs.

Plinko bd also illustrates how changing economic conditions impact various industries, including online gaming and entertainment, which are sensitive to fluctuations in consumer spending and global trade dynamics.

The Global Trade Consequences of U.S. Tariffs

U.S. tariffs have far-reaching effects beyond domestic inflation. These policies influence international trade relations, causing shifts in economic alliances and competitive dynamics among major global economies. Countries impacted by U.S. tariffs respond in various ways, from implementing retaliatory measures to negotiating new trade agreements that bypass traditional economic dependencies.

Trade Wars and Retaliatory Measures

One of the most significant consequences of U.S. tariffs is retaliation from other countries. When the U.S. imposes tariffs on imports from major trading partners like China, the European Union, or Canada, these countries often respond with tariffs on American exports. This tit-for-tat escalation leads to trade wars, increasing business costs on both sides and further slowing global economic growth.

For instance, when the U.S. imposed tariffs on Chinese goods, China responded with tariffs on American agricultural products, affecting U.S. farmers and agricultural exports. This retaliatory cycle reduces international trade volumes, disrupts long-standing trade relationships, and creates economic uncertainty.

Shifts in Global Trade Alliances

As U.S. tariffs alter trade dynamics, countries seek new economic partnerships to minimize their dependence on American markets. The rise of regional trade agreements, such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the Regional Comprehensive Economic Partnership (RCEP), reflects this shift. Countries within these agreements benefit from reduced trade barriers, strengthening their economies while reducing reliance on U.S. trade.

Meanwhile, American businesses looking to mitigate tariff costs are expanding operations in countries that offer tariff-free trade benefits. Companies are restructuring supply chains by relocating production facilities to nations with favorable trade agreements, ultimately reshaping global trade flows.

The Impact of Tariffs on Domestic Industries

While tariffs are often justified to protect local businesses and industries, their impact varies across sectors. Some industries benefit from reduced foreign competition, while others struggle with increased costs due to disrupted supply chains and retaliatory trade policies from affected nations.

U.S. Manufacturing and Export Challenges

While tariffs are designed to protect domestic industries, their effectiveness is often debated. Some sectors, such as steel and aluminum, benefit from reduced foreign competition. However, industries reliant on imported materials, such as automotive manufacturing and consumer electronics, struggle with rising costs.

U.S. exporters also face challenges when foreign markets impose retaliatory tariffs. Farmers, for example, experience reduced demand for agricultural exports, forcing them to seek alternative markets or rely on government subsidies to offset losses. This impact extends to other export-driven industries, including aerospace and technology.

Small Businesses and Consumer Spending

Small businesses, which often operate on thin profit margins, are particularly vulnerable to tariff-induced cost increases. Unlike large corporations, smaller enterprises have limited resources to absorb higher expenses, making competing in a tariff-impacted economy difficult.

Additionally, rising consumer prices due to tariffs lead to decreased discretionary spending. When households allocate more of their budgets to essential goods, industries reliant on consumer spending, such as retail, entertainment, and tourism, experience slowed growth.

Looking Ahead: Policy Considerations and Future Trends

The future of U.S. trade policies remains uncertain as global economic conditions evolve. Lawmakers and industry leaders continue to debate the effectiveness of tariffs in addressing trade imbalances while maintaining economic stability. Future strategies may involve renegotiating trade agreements, implementing targeted tax incentives, or exploring new market opportunities to offset the impact of existing tariffs.

Potential Revisions to Trade Policies

As the global economy continues to evolve, U.S. policymakers face increasing pressure to reassess the impact of tariffs. Future trade agreements, diplomatic negotiations, and economic strategies will determine whether tariffs remain central to U.S. trade policy or if alternative measures, such as targeted subsidies and tax incentives, take precedence.

The Long-Term Outlook for Global Trade

Technological advancements, sustainability initiatives, and economic realignments will likely shape the future of global trade. As businesses adapt to new trade landscapes, supply chain resilience, digital trade, and emerging markets will play critical roles in maintaining economic stability.

Conclusion

U.S. tariffs continue to shape inflation and global trade, affecting businesses, consumers, and international economic relationships. While intended to protect domestic industries, tariffs often have unintended consequences, including rising prices, trade wars, and shifts in global market dynamics. Understanding these effects is crucial for businesses and policymakers navigating an increasingly complex economic environment. Moving forward, trade policies must strike a balance between economic protectionism and sustainable global trade practices to ensure long-term stability and growth.

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Europe’s continued economic woes, caused by a lack of a lack of productivity growth and the imminent threat of punishing US tariffs, has meant doomsday predictions about the bloc’s economic future are now de rigueur for analysts and commentators.

In a 400-page report released in September of last year, former Italian Prime Minister and President of the European Central Bank Mario Draghi claimed he had stumbled on the solution – the only issue with his ointment, however, was that it came at the small cost of €800 billion.

It’s difficult to be upbeat about Europe’s economic prospects in the current environment, but the bloc’s leaders are beginning to carve out a way forward. And according to the Clean Industrial Deal which the Commission set out on Wednesday,  protecting the EU’s industry will be at the heart of the bloc’s strategy to catch up with the US and China.

‘Europe’s industrial base is central to our identity and essential for our competitiveness’, the draft proclaimed, identifying six ‘business drivers’ that can power the continent’s economic growth.

The draft’s language is indicative of the bloc’s shift towards ‘near-shoring’, keeping very much in vogue with the prevailing global trend, which seeks to protect supply chains from economic and geopolitical risk.

But as the EU looks to revitalise internal productivity, the eastern European experience of joining the common market serves as a timely reminder of the importance of integrating industrial processes to power sustainable, long-term growth.

More than 20 years after the first eastern European countries joined the bloc, it’s easy to forget how much progress the region has made towards prosperity. But as the region’s members gradually joined their industrial and manufacturing processes to the EU, the integration of western European technical expertise with local manpower and production capacity propelled significant growth whose impact was felt across the entirety of the continent.

Some of the most famous examples of this coupling can be found in the automobile industry. Skoda, the Czech automaker, was transformed into a ‘world-class manufacturer’ thanks to its partnership with German giant Volkswagen. Renault, similarly, transformed Romanian car manufacturer Dacia into a household name, who announced the sale of their 8 millionth car back in 2023.

A lesser-known example is Austrian company Petrochemical Holding GmbH, owned by the experienced entrepreneur Iakov Goldovskiy, which transformed several European petrochemicals businesses into top-notch manufacturing outlets.

Petrochemical Holding’s ownership of Hungarian companies TVK and Borsodchem, in particular, were a particular high point in the history of the nation’s petrochemicals industry.

The net result of this marriage of East and West was an extraordinary period of economic growth that saw the region’s leader, Poland, increase its GDP by a staggering 788% from 1990-2018. The nation’s fortunes look set only to continue, as recent predictions suggest that Poland could overtake the UK in GDP per capita by 2030, if current trends hold.

As many eastern European nations are now fully integrated into the European Union, the scale of the achievement is often understated. But six of the last 10 nations to progress from the IMF’s ‘advanced economy’ class have come from eastern Europe, with the remained made up of microstates or territories such as Puerto Rico an San Marino.

And the benefits of the region’s integration were enjoyed across the entirety of the Union.  According to research conducted by the IMF, existing members of the EU were 10% better off by 2019 than they would have otherwise been without the bloc’s enlargement.

Undoubtedly, there are few historical parallels that can be drawn from the eastern European experience to inform today’s policymakers. In 2025, European leaders no longer have the vast, untapped manufacturing potential of the former eastern bloc to unleash in the name of rapid economic growth.

But as EU leaders look to defend local industry as part of their draft proposal, they would be wise to remember the spirit of the early 2000s that transformed the region’s economies and spread the benefits across all member states.

Open markets and the integration of European industry into neighbouring and global supply chains can provide the impetus needed to kickstart the continent’s industrial revival.

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US President Donald Trump has announced a 25% tariff on all steel and aluminium imports, following his signing on three separate executive orders imposing 25 percent on goods from Canada and Mexico, and 10% on all imports from China – – which has responded with its own measures.

He said that he planned to slap reciprocal tariffs on “every country” that imposes import duties on the U.S. “Very simply it’s if they charge us, we charge them,” he said on Air Force One, NBC News reported.

Trump’s policies come at a time when the US operates a large negative trade balance with the rest of the world. In 2024, the US operated a trade deficit in goods of more than $1.2tn (£970bn) with the rest of the world, but operated a surplus of nearly $300bn in services.

Figures from 2024 show that the US’s largest trade deficit was with China, at $296bn, followed by Mexico, at $172bn. These countries were among the first to have the threat of tariffs hanging over them.

Corporate America, outraged by the tariffs, has lobbied hard against them. Mainstream economists largely agree that Trump’s tariff plan will reignite inflation and slow US economic growth. Last month, the Wall Street Journal’s editors, who typically side with the president’s policies, called Trump’s tariff plan “the dumbest trade war in history.”

What are Tariffs

Tariffs are taxes charged on goods imported from other countries. The companies that bring the foreign goods into the country pay the tax to the government. This happens when a country buys or imports more from other countries than it sells or exports to them.

Typically, tariffs are a percentage of a product’s value. The 10% tariff on Chinese goods means a product worth $10 would have an additional $1 charge applied to it. Firms may choose to pass on some or all of the cost of tariffs to customers.

Nearly a quarter of all steel used in the U.S. is imported, with the bulk of it from neighboring Mexico and Canada or close allies in Asia and Europe such as Japan, South Korea and Germany.

In 2024, the US received the most imports from Mexico, China and Canada. Each of these countries exported more than $400bn of goods into the US.

Mexico and Canada export a lot of vehicles to the US, as well as energy and oil. Machinery and electrical equipment also form a significant portion of Mexican exports to the US. Chinese exports include electronics, machinery and agricultural goods.

European and Asian allies – such as Germany, Japan, South Korea and Vietnam – are the next biggest exporters to the US, with the US importing more than $100bn of goods from each of these countries last year. The US imported $68bn of goods from the UK that year.

Tackling deficit

Trump has promised to expand tariffs for three primary purposes: to raise revenue, to bring trade into balance and to bring rival countries to heel.

America is running a massive budget deficit, and Trump has said the tariffs will make up for lost revenue — in particular, his 2017 tax cuts, which he has said he wants to extend and expand. In the annual meeting of the World Economic Forum last month, Trump predicted that his tariffs would bring in hundreds of billions of dollars — perhaps trillions of dollars — into the US Treasury.

But trade works both ways: the US is the world’s largest importer of goods, but China is the biggest exporter. Overall, when tallying the total value of imports versus exports, the US also has the world’s largest trade deficit, worth more than $1tn. According to the US International Trade Administration, the countries that the US has the largest trade deficits with are China and Mexico.

Figures from 2024 show that the US’s largest trade deficit was with China, at $296bn. For Mexico it was $172bn. These countries were among the first to have the threat of tariffs hanging over them. The US’s next largest deficits are with Vietnam – increasingly a gateway to the US for Chinese companies avoiding tariffs – followed by Ireland, Germany and Taiwan.

In what respects to the EU, the U.S. imported roughly $600 billion worth of goods from European Union member states in 2024, and as President Trump prepares to potentially extend his tariffs beyond metals to a wide range of products from allies, some product categories would be hit much harder than others in the latest “reciprocal” trade war move by the U.S. government.

Reciprocal effect

China slapped tariffs on US imports in a swift response to new US duties on Chinese goods, renewing a trade war between the world’s top two economies even as President Donald Trump offered reprieves to Mexico and Canada.

China’s Finance Ministry said it would impose levies of 15% for US coal and LNG and 10% for crude oil, farm equipment and some autos. The Chinese government hit back with new tariffs on US exports and a series of retaliatory steps. Beijing said it had filed a complaint with the World Trade Organization (WTO) “to defend its legitimate rights and interests” in response to hiked US tariffs on Chinese goods.

European Union leaders have vowed the tariffs “will not go unanswered” and will be met with tough countermeasures, while Canadian Prime Minister Justin Trudeau said Canadians will “stand up strongly and firmly” against the hike.

U.S. trade war tariffs have generated more than $264 billion of higher customs duties collected for the U.S. government from importers, as of the end of last year, according to analytics and analysis from the Tax Foundation. Out of that total, $89 billion (34%) was collected during the Trump administration. The remaining $175 billion (64%) was collected during Biden’s term.

Currently, the national tariffs bill to the business world is $78 billion, based on the 2024 data from Trade Partnership Worldwide. That could rise to over $400 billion if all of Trump’s new and threatened tariffs, from steel and aluminum, to Mexico, Canada, China and the EU, are enacted.

Conclusion

Trump routinely criticizes American trade policy for “subsidizing” foreign countries, saying America is “losing” hundreds of billions of dollars to its neighboring nations. Trump is imprecisely talking about the trade gap, the difference between what America exports and imports. Some economists caution that Trump’s language about America’s trade gap presents an unfair representation of what has become a crucial mechanism for the US economy

Trump and his economic team have made many contradictory statements about the rationale for tariffs, leaving American multinational businesses unsure how to plan, and foreign countries unclear on how to negotiate. Trump launched massive and punishing import taxes on Canada and Mexico, only to postpone them for a month in exchange for relatively little from America’s neighbors. Across-the-board Chinese tariffs are on, but a repealed exemption on small items caused massive confusion at the US Postal Service and was temporarily put back in place. And more tariffs on steel and aluminum are expected to be announced Monday, before a potentially far more expansive reciprocal tariff plan is set to be announced later this week.

That may just be the beginning: Trump has hinted at launching tariffs on the European Union, and he has also promised a broader tariff on every single item that comes into the United States.

The post TARIFFS GUERRILLA: An Attempt to Tackle US Inflation Amid Growing World Trade Tensions appeared first on The European Business Review.

By Kyrillos Akritidis 

Venture capital (VC) funding is often the lifeline for startups seeking to grow rapidly and achieve their ambitious goals. However, with global startup investments growing somewhat more strained in recent years, securing funds has become more challenging than ever.  

Startup funding in 2024 did not achieve much of a difference in the YOY perspective, rising only 3% from 2023 ($304B to $314B). But at the same time, the number of funding deals has seen a decline – 6,056 transactions in Q3 2024, which is the lowest it’s been since 2020. This clearly shows that investors have grown a lot more sensitive about where they put their money. 

It’s no longer just about having a brilliant idea; startups must demonstrate good prospects, robust planning, and have a clear value to investors. If you’re a startup founder trying to find your way in a highly competitive landscape, this article may offer you some practical ideas and guide you on a path to success. 

Understand Your Funding Needs and Timeline 

Before you can even think about approaching VC investors, you need to assess whether your startup truly needs external funding at its current stage of development. If the answer is “yes”, then you need to determine precisely how the new funds would be used and establish a timeline for your funding needs.  

Investors appreciate it when projects can offer them a concrete plan and an understanding of where their money would be going. 2024 has seen a sharp rise in startup failure rate in the U.S. (a surge of 60%), as startups went bankrupt even when they had venture backing. Given this backdrop, it makes perfect sense why investors would become a lot more cautious. 

So here’s what you can do. 

First of all, make sure to plan ahead, knowing when you’ll need your next round of funding. This way, you can start discussing things with investors early, reducing the risk of running out of funding at a wrong time. By demonstrating a forward-thinking approach, you will show investors that your startup is well-prepared and has long-term plans, which would paint you in a favorable light. 

Another helpful thing to do is dividing your startup’s growth plans into stages, with funding needs being clearly separated into categories (Seed, Series A, and so on). Set realistic and measurable goals for each stage. You can, for example, seek to expand your user base to a specific number, launch new features, or achieve a particular revenue volume during each of the phases. An important thing here is not to overreach: don’t try to sell investors overblown target figures, because it will severely undermine trust if you fail to reach them. 

Build a Detailed Business Plan and Financial Forecast 

Continuing from our previous point, your business plan is, for all intents and purposes, your face so you can definitely expect investors to scrutinize it forwards and backwards. As such, you need to make it as clear-cut as presentable as can be. 

Make sure to clearly outline your value proposition and explain what your startup is deserving of their money. What problem do you solve, why does it do a better job of it than the competitors, what are the key advantages that you believe will help you find success? All these questions need to be answered so that investors can make their own projections about your future prospects and decide whether or not to believe in you. 

I will also highlight once again that having precise financial projections will be advantageous here and that you should avoid inflated numbers. Transparency is necessary to build credibility: if you show bloated expectations and then fail to live up to them, it risks undermining your position.  

Lastly, a strong plan should also include scenarios for potential challenges and how you plan to deal with them. The business landscape is constantly shifting, so expecting a smooth sailing at all times would be naïve. When things go wrong, you need to be ready to deal with them, and it is best to prepare well in advance. Showing investors that you’ve considered risks and strategies to minimize them will position your project as a well-organized one, boosting your appeal. 

Due Diligence Preparation 

Aside from your business plan, investors will also want to examine all your official documentation in detail. Having grown cautious as they have, nobody wants to risk running into problems with regulators. As such, your startup must be prepared to provide all relevant documentation that pertains to your financial, legal, and operational integrity. This includes financial statements, tax filings, employment records, and so on. 

Contracts with clients, suppliers, and partners must also be clear, up-to-date, and compliant with legal standards to demonstrate operational stability. And if you have any patents and intellectual property, you should ensure that they are properly protected and that your innovations are safe. 

The importance of a well-prepared due diligence package truly can’t be overstated — it signals to potential investors that your company is professional and reliable, building trust and making the investment process that much smoother.  

VC Support is Not Just About the Money 

Having venture support can be helpful in a variety of ways, and not all of it comes down to funding alone. Investors also bring with them industry expertise, previous connections, and the ability to help you with strategic guidance — all things that can be invaluable to a startup that’s freshly starting out. 

In order to harness all of these potential benefits, you need to dig deep and start asking the right questions. Such as: “What additional resources, beyond funding, does your project need to grow?” or “Which of those advantages can this particular investor provide?” 

Whether it’s mentorship, or helping your recruit capable talents into the team, or facilitating networking and connecting you to potential partners, VC support can be a powerful tool for you to wield.

About the Author 

Kyrillos Akritidis is Co-Founder and Managing Director at Schwarzwald Capital, a VC fund dedicated to empowering innovative fintech and creator economy projects. Previously, he headed several fintech companies, held senior positions at banking institutions across Europe, and worked at major international accounting firms like KPMG. Kyrillos is also a Fellow of the Institute of Chartered Accountants in England and Wales (FCA). 

The post How to Secure Venture Capital Funding: A Step-by-Step Guide for Startups  appeared first on The European Business Review.

The United States (US) federal indictment and subsequent trial and conviction of Sam Bankman-Fried will not be forgotten in a hurry. It has all the markings of a Hollywood blockbuster with privileged protagonists, one or two geniuses, huge sums of money, and publicized arrests. In this two-part series, Rosario (Roy) Girasa and Emilio Collar, Jr. discuss the fall of the “Crypto-King” and the revelations that brought him down.

Access Part 2 of the article here: https://www.europeanbusinessreview.com/poster-child-of-securities-fraud-the-sam-bankman-fried-litigation-and-its-aftermath-part-ii/

It is commonplace to speak of a particular lawsuit, whether based criminally or civilly, as the “Trial of the Century” although the expression represents a current, heavily publicized litigation. Nevertheless, the United States’ (US) federal indictment and subsequent trial and conviction of Sam Bankman-Fried (SBF) may well be a suitable commentary for the 21^st century. The case features individuals with highly enviable scholarly backgrounds, enormous sums of invested monies that were fraudulently converted, substantial contributions to charitable and liberal political causes, mixtures of greed and intended actions in good faith, additional felonious violations, and other elements that are the substance of media exploitation.

The Stanford Connection

SBF is the firstborn son of brilliant parents, Joseph Bankman and Barbara Fried, both of whom were famed Stanford University Law School scholars. Joseph Bankman combined his background as a clinical psychologist and tax expert, whose primary focus was the betterment of society through reformation of tax laws including governmental oversight of tax shelters and simplification of tax filings. In addition, he exhibited additional proficiency in teaching mental health law and anxiety psychoeducation (Bankman, 2024). Barbara Fried, with several degrees from Harvard, focused her scholarship on legal ethics. Her writings included a well-publicized and utilized volume “The Progressive Assault on Laissez-Faire”, which is a critique of capitalism, particularly concerning distributive justice as applicable to tax policy and political theory. She was politically active in the US Democrat Party causes as a co-founder of Mind the Gap, which is a political action committee (PAC) in support thereof.

FTX was based in the Bahamas having been incorporated in Antigua and Barbuda. The exchange ostensibly enabled customers to engage in cryptocurrency purchases and sales, exchanges to other crypto formats, or simply hold them.

SBF was born on March 6, 1992 (age 32) on the Stanford University campus and was educated at the Massachusetts Institute of Technology (MIT) with specializations in physics and mathematics. From an early age, he exhibited mathematical skills that people with inherited genes such as his almost inevitably display. An important event in SBF’s educational development was attendance at a Canada/USA Mathcamp, which describes itself as “an immersive summer experience for mathematically talented students ages 13-18 from all over the world” (Mathcamp, 2024). It was at the camp that SBF attended when in the ninth grade, he met the future co-founder of Futures Exchange (FTX), Gary Wang. After graduating from MIT, SBF became employed at Jane Street Capital wherein he met another of those charged in the later filed indictments, Caroline Ellison, whose parents were MIT professors. A fourth named defendant, Nishad Singh, joined the other defendants in the creation of Alameda Research. It appears each of the individuals intended to both benefit themselves and contribute substantially to the welfare of less abled persons by donations to various charities.¹

FTX

The cryptocurrency exchange and allied firm at the heart of what later happened at the federal criminal trial was FTX. It was founded and controlled by SBF, together with Gary Wang. The said cryptocurrency exchange and crypto hedge fund was known as FTX Trading Ltd., and the quantitative cryptocurrency trading firm was Alameda Research (Alameda). FTX was based in the Bahamas having been incorporated in Antigua and Barbuda. The exchange ostensibly enabled customers to engage in cryptocurrency purchases and sales, exchanges to other crypto formats, or simply hold them. Given the background of the founders and endorsements by major celebrities such as Tom Brady, and other star athletes, and advertisements, including a Super Bowl ad featuring Seinfeld’s creator Larry David, the use of the exchange mushroomed by well over a million customers. US customers engaged in said trades through its US subsidiary, FTX.US.

Bloomberg and CoinDesk Revelations

Bloomberg.com is a famed US-based news organization specializing in reporting financial news and analyses. On September 14, 2022, it described the relationship between Alameda and FTX as one in which the former acted as a “market maker” for FTX (Bloomenthal, 2024 Jul 6). It further noted that the said relationship appeared to be violative of traditional regulatory regulations (Massa et al., 2022 Sep 14). The Wall Street Journal and CoinDesk² followed up with sources indicating the extent of loans from FTX to Alameda and that the key players in both firms knew of the monetary transfers. With the rapid decline in value (now mainly recovered) in which many crypto companies experienced significant downturns and bankruptcies in cryptocurrencies that occurred in 2022, CoinDesk noted there were financial issues pertaining to Alameda Research and its relationship to FTX. It questioned the transactions taking place between FTX and Alameda that may have artificially inflated their value, thereby causing many investors to withdraw their investments. The report expressed concern that Alameda’s balance sheet was composed of FTT tokens issued by FTX, its sister firm, rather than independent assets such as fiat monies or other crypto assets (Osipovich & Berwick, 2023 Oct 5). Alameda’s assets thus included $3.66 billion of FTT and $2.16 billion of FTT collateral. It noted the lack of managerial oversight and other discrepancies attributable to the said firms. As stated later by the current CEO of FTX, John J. Ray III, who years earlier had participated in uncovering and attempted recovery of funds from the ENRON debacle, “Never in my career have I seen such a complete failure of corporate controls and such a complete absence of trustworthy financial information as occurred here” (Roth, 2022 Nov 30).²

The dizzying expansion by SBF and FTX included the acquisition for $150 million, of Blockfolio, a portfolio trading app using mainly FTT tokens to accomplish the purchase; investments by the trading company head of Binance, Changpang Zhao, for $100 million; a $2 billion venture fund commenced with the issuance of bonds which had an ostensible valuation of $32 billion; and numerous other acquisitions and creations. As a result of adverse publicity and inquiries concerning the risks attributable to FTX, SBF resigned as CEO of FTX and a Chapter 11 reorganization bankruptcy filing was made on behalf of FTX, Alameda, and 130 affiliated companies. In the voluntary petition, FTX stated it had over 100,000 creditors, assets of $10-$30 billion, and liabilities of $10-$50 billion (Sigalos, 2022 Nov 11).

Alameda Research

Alameda, acting through a small number of employees, became participants in mainly bitcoin trades noting that the price of bitcoin was higher in Japan than elsewhere and, thus, made early profits of multiple millions by the said small but highly rewarding differences of such trades.

The second key player that precipitated the Chapter 11 bankruptcy filings that later occurred is Alameda Research. It was initially founded in September 2017 by SBF and Tara MacAulay in Berkeley, California. It derived most of its income from “arbitrage” trading whereby sophisticated investors take advantage of differing values of securities from one financial market to another and engage in simultaneous trades therein. Thus, Alameda, acting through a small number of employees, became participants in mainly bitcoin trades noting that the price of bitcoin was higher in Japan than elsewhere and, thus, made early profits of multiple millions by the said small but highly rewarding differences of such trades. SBF, who owned most of Alameda’s shares, profited handsomely from the said trades. With the success of Alameda, FTX was created as a cryptocurrency exchange with Alameda Research acting as a market maker. The problem arose when Alameda began experiencing significant losses and FTX was called upon secretly to fund and pay investors in Alameda. The CEO of Alameda when most of the transactions took place was Caroline Ellison.

The Indictment

The initial US federal indictment occurred on December 9, 2022, wherein SBF was charged with conspiracy to commit wire fraud, wire fraud, conspiracy to commit commodities fraud, conspiracy to commit securities fraud, conspiracy to commit money laundering, and conspiracy to defraud the Federal Election Commission, and commission of campaign finance violations (US v. Samuel Bankman-Fried a/k/a “SBF”, 22 Cr. 673, 2022 Dec 9). Eight days later, there were several superseding indictments, the last of which was filed on August 14, 2023, in which the indictment omitted campaign finance violations. SBF pled “Not Guilty” to the said charges. The 18-page indictment, consisting of seven counts, was prefaced by an overview wherein it was alleged that SBF, from the year 2019 through November 2022, corrupted the operations of cryptocurrency companies he founded through a pattern of fraudulent schemes. It was further alleged that SBF defrauded customers and investors of FTX, and lenders to Alameda. He misappropriated and embezzled FTX customer deposits and utilized billions of dollars from the said funds for personal self-enrichment, support of FTX operations, funding speculative venture investments, and over $100 million in political donations to both political parties to influence cryptocurrency regulation and pay for Alameda operating costs. In doing so, it was alleged, that he engaged in the making of fraudulent misrepresentations and false financial information to FTX’s investors and Alameda’s lenders.

Bahamas Extradition

The Commonwealth of the Bahamas has an Extradition Treaty with the United States dated March 9, 1990, which superseded a comparable treaty between the US and Great Britain which had governed the Bahamas, and which was originally signed on December 22, 1931 (102nd United States Congress, 1994). SBF consented to extradition requested by the US from the Bahamas government in accordance with the initial federal indictment (Jones et al., 2022 Dec 21). A legal question arose before the Supreme Court of the Bahamas for judicial review proceedings against the Minister of Foreign Affairs and Public Service and the Attorney General of the Bahamas, questioning the validity of the extradition. It was concerned that the extradition was based on initial charges against SBF and not those arising out of the two superseding federal indictments that would have added additional counts for new offenses of commodities fraud, bank fraud conspiracy, unlicensed money transmitting conspiracy, and conspiracy under the Foreign Corrupt Practices Act (Congress, 1977) which charges were not part of the extradition request to the Bahamas by the US. The Bahamas court concluded that SBF’s request for judicial review be granted and that an injunction be granted against the Bahamas government defendants to consent to the additional charges brought subsequently by the US government (Samuel Bankman-Fried v The Honourable Frederick Audley Mitchell, 2023 Jun 9). Thereafter, the US agreed not to pursue the additional charges. There is some evidence of alleged “cozy relationship” between SBF and the Bahamas government’s regulators consisting of free basketball tickets to the then FTX Bahamas sports stadium, payment of the national debt of the Bahamas, and dinner with the Bahamas Prime Minister together with the former US president, Bill Clinton, and the former UK prime minister, Tony Blair (Verdai, 2023 Nov 1).

Federal Indictment

Counts of the Federal Indictment

The specific allegations consisted of: Count One – “Wire Fraud on Customers of FTX” in violation of 18 U.S.C.§§ 1343 and 2³ whereby it was alleged that commencing about 2019 through November 2022, SBF with others schemed to defraud FTX customers by misappropriation of their deposits  to pay expenses and debts of Alameda, to make investments, and other purposes; Count Two, “Conspiracy to Commit Wire Fraud on Customers of FTX”, in violation of 18 U.S.C. §1349,⁴ which added a conspiracy count to Count One; Counts Three and Four consist of “Wire Fraud on Lenders to Alameda Research” and conspiracy thereof on lenders to Alameda Research  in violation of the said 18 U.S.C. §§1343 and 1349⁵ that alleged SBF, with others, schemed to defraud lenders to Alameda by providing false and misleading information with reference to the firm’s financial condition in order to stall lenders from recalling their loans and, in fact, to extend new loans.

The trial before US District Court judge, Lewis Kaplan, occurred over a four-week period that featured a number of former executives and participants testifying against SBF, due mainly to lessen their culpability outcome in their individual cases and attempts to receive greatly reduced sentences.

Count Five, “Conspiracy to Commit Securities Fraud on Investors in FTX” in violation of  15 U.S.C § 78j(b), 78 ff, and 17 Code of Federal Regulations §240.10b-5,⁶ whereby it was alleged that SBF engaged in a manipulative and deceptive device with reference to the purchase and sale of a security by making false statements and other devices particularly concerning communications with investors that contained false and misleading information about FTX’s financial condition and misappropriating FTX customer deposits to satisfy obligations owed by Alameda Research. The last count, Count Seven, “Conspiracy to Commit Money Laundering” in violation of a multitude of statutes in conspiring and agreeing with other persons to violate 18 U.S.C. “Monetary Transactions in Property”⁷ derived from specified unlawful activity consisting of monetary transfers in excess of $10,000 resulting from proceeds constituting wire fraud and their concealment. The indictment concluded with a request to the court, with respect to the stated counts, that all property derived therefrom as enumerated in substantial detail be forfeited to the US.

The trial before US District Court judge, Lewis Kaplan, occurred over a four-week period that featured a number of former executives and participants testifying against SBF, due mainly to lessen their culpability outcome in their individual cases and attempts to receive greatly reduced sentences. The defendant SBF, somewhat surprisingly, decided to waive his US Constitution’s Fifth Amendment privilege to remain silent nevertheless testified, apparently knowing that a guilty outcome was a virtual certainty unless he could sway the jury by his denial of knowledge that vast sums of investors’ monies were misappropriated but were accomplished by others in FTX. He did admit to making errors in lack of supervision over FTX and Alameda’s use of FTX’s money (Morena et al., 2023 Oct 31).

The jury took less than five hours to convict SBF on all seven counts as charged. As stated below, SBF was given a 25-year sentence of imprisonment. Whether the parents of SBF will also face civil and/or criminal charges is left to the discretion of the US Attorney General or his US Attorney for the Southern District of New York (encompasses US counties of New York, Bronx, Westchester, Rockland, Putnam, Orange, Dutchess, and Sullivan). The 12 jurors who rendered the decision came from highly diverse backgrounds. Annexed as Appendix A, they included 9 women, among them a nurse, physician assistant, social worker, stay-at-home mom, and a special education instructor. It would appear from their backgrounds that they would instinctively be more sympathetic to the very youthful defendant, but the quick verdict exhibited the opposite result in light of the overwhelming evidence presented at the trial.

Key Players Who Accepted Plea Deal

SBF did not act alone, having acted as head of a youthful team composed of Caroline Ellison, Zixiao (Gary) Wang, and Nishad Singh whom he had met in Canada at a Canada/USA Mathcamp for mathematically gifted students before SBF’s entry into MIT. Ellison is the daughter of Glenn Ellison, who chaired the economics department at MIT and Sara Fisher Ellison who also lectured in economics at the university. She attended Stanford University and later became the head of Alameda Research, which was at the apex of the scandal due to its highly risky investments and attempted bailout by FTX. At the university, Ellison exhibited a desire to use monies gained from future earnings for charitable causes as illustrated by her acting as vice-president of Stanford’s Effective Altruism Club (Varanasi et al., 2023 Oct 9).

Ellison, Wang, and Singh agreed to plead “Guilty” to all seven counts of the indictment, signed waivers of their constitutional rights to remain silent, agreed to testify at the trial and agreed further to forfeit all property derived from the said offenses.

Zixiao (Gary) Wang was another math genius, who met SBF at the Mathcamp and later became co-founder of FTX. Born in China, he and his parents emigrated to the US where he exhibited his math skills, attended and graduated from MIT, and became chief technology officer for FTX. Nishad Singh became head of engineering at FTX and became intertwined with the other defendants by his knowledge and participation in wrongfully using FTX monies to pay for Alameda’s indebtedness. He programmed systems to transfer FTX user accounts to Alameda’s bank accounts. He apparently knew of some $8 billion of overstatements of user deposits and built computer systems that would give Alameda unique “special privileges” and access to FTX funds (Kessler et al., 2023 Oct 17).

Ellison, Wang, and Singh agreed to plead “Guilty” to all seven counts of the indictment, signed waivers of their constitutional rights to remain silent, agreed to testify at the trial and agreed further to forfeit all property derived from the said offenses. The counts consisted of conspiracy to commit wire fraud and actual wire fraud on FTX customers and lenders of Alameda Research, commodities fraud, conspiracy, and money laundering. The maximum sentence for the commission of the stated crimes is 100 years imprisonment. Although the Department of Justice (DOJ) made no promises regarding prosecution for the offenses, it agreed that any testimony rendered by the said persons would not be used in any further criminal proceedings. It did agree not to prosecute for the said criminal counts except for possible criminal tax violations dependent on the degree of cooperation rendered by them in further proceedings. Sentencing for any other crimes not covered by the said counts is not binding upon the court but the court would be informed of the cooperation by the said persons in the pending criminal proceeding.

An additional defendant was Ryan Salame, who was a former FTX executive and co-CEO of FTX’s Bahamian affiliate, FTX Digital Markets Ltd., who, on or about October 2021, was also head of Alameda’s settlements team with responsibilities of processing customer fiat deposits and withdrawals. He was indicted on two counts of conspiracy to make unlawful political contributions, using his and the names of other persons to conceal the source of the contributions, and a second count of conspiracy to operate an unlicensed money transmission business. The alleged purpose was to conceal the relationship between a newly formed SBF corporation, North American, and Alameda (Williams, 2023). Salame contributed millions of dollars in his name to influence political campaigns, but the contributions actually were funds from Alameda Research. As part of the guilty plea deal, Salame agreed to forfeit $1.5 billion, $6 million in fines, forfeiture of homes he possessed in Lenox, Massachusetts, and other assets. On May 28, 2024, Judge Kaplan, who previously sentenced SBF to 25 years in prison, imposed a sentence of 90 months (7½ years) in federal prison. Unlike SBF who decided to proceed to a jury trial, Salame had pled guilty to conspiracy to make unlawful political contributions thereby defrauding the Federal Election Commission mandates, and for operating an unlawful money transmission business, all in violation of federal statutes. In addition, the court imposed three years of supervised release and ordered him to pay more than $6 million in forfeiture and more than $5 million in restitution (US Attorney’s Office, 2024 May 28). Sentencing of Nishad Singh and Gary Wang is scheduled for October 30 and November 20 respectively. The sentencing of Caroline Ellison, whose testimony was critical in the trial of SBF, has not been set. Auditors of FTX, Prager Metis CPS LLP., consented to pay the sum of $1.95 million in penalties for negligence and falsely alleging conformity to Generally Accepted Auditing Standards (US Securities and Exchange Commission, 2024 Sep 17).

Payments Made to Founders of FTX and Alameda

Approximately $3.2 billion of payments were made to SBF and other major participants in the fraudulent schemes later uncovered, according to the company’s successor, CEO John J. Ray III. The payments include the following:

• $2.2 billion to SBF
• $587 million to Nishad Singh
• $246 million to Zixiao “Gary” Wang
• $87 million to Ryan Salame
• $25 million to John Samuel Trabucco
• $6 million to Caroline Ellison

In addition, large sums totaling about $240 million were spent for luxury accommodations and other Bahamas properties, political and charitable payments, and other expenditures (Crawley, 2023 Mar 16). Auditors for FTX appear to be either complicit or highly negligent with FTX’s compliance with SEC mandates. Thus, the SEC sued the accounting firm Prager Metis CPAs, LLC and its California professional services firm, Prager Metis CPAs LLP, for violating auditor independence rules and for aiding and abetting their clients’ violations of federal securities laws. The specific allegations include the alleged lack of independence from their said clients in that from approximately December 2017 to October 2020, Prager improperly included indemnification provisions in engagement letters for more than 200 audits, reviews, and exams, and continued to sign engagement letters containing indemnification provisions and also issued “accountant’s reports” in which it purported to be independent in connection with its audits and exams (SEC v. Prager Metis CPAs LLP, 2023 Sep 29).

Prosecutor’s Summation to the Jury

After 15 days of testimony from witnesses, the parties presented closing arguments. The prosecutor, Assistant US Attorney Nicolas Roos, stated that SBF used billions of dollars of customer monies to pay for Alameda’s creditors, make investments, and give sums to political candidates. It was not mere poor managerial decision-making but rather a deliberate decision to fund the liabilities of Alameda. “He took the money….he knew it was wrong. He did it anyway, because he thought …he could walk his way out of it and talk his way out of it. And today, with you, that ends” (Cohen & Godoy, 2023 Nov 1).

Access Part 2 of the article here: https://www.europeanbusinessreview.com/poster-child-of-securities-fraud-the-sam-bankman-fried-litigation-and-its-aftermath-part-ii/

About the Authors

Rosario (Roy) Girasa is a Distinguished Professor at Pace University and has been a professor of law at the Lubin School of Business on the Pleasantville, NY campus since 1980. He holds four degrees: a BS and PhD from Fordham University, an MLA from Johns Hopkins University, and a JD from New York University School of Law.
Girasa is the author of six published texts and more than 130 articles. His books include the textbook and manual Cyberlaw: National and International Perspectives; Corporate Governance and the Law of Finance; Laws and Regulations in Global Financial Markets; Shadow Banking: Rise, Risks, and Rewards of Non-Banking Financial Services; and Regulation of Cryptocurrencies and Blockchain Technologies (published July 2018). His latest book Artificial Intelligence (AI) as a Disruptive Technology: Economic Transformation and Government Regulation was published in February 2020.
He has delivered lectures globally, including as president of four annual conferences in Tunisia, several colleges in India, and at the Supreme Court of India. You may reach him at rgirasa@pace.edu.

Emilio Collar is a Professor of Management Information Systems in the Ancell School of Business at Western CT State University in Danbury, CT. He holds a BBA and MS in Information systems from Pace University (NY) and a PhD from the University of Colorado at Boulder. He is a KPMG Doctor Scholar and a member of Beta Gamma Sigma.
Prior to his Ph.D., Emilio has had various jobs and consulting engagements in large Corporations including General Reinsurance Corp. and IBM. As an independent consultant, Emilio has provided consulting services on software implementation of Oracle databases, Internet website development, e-commerce applications, and Internet security and planning.
Emilio co-founded an organization called The International Group of E-business Research and Applications (TIGERA).
Emilio has served as editing manager for the Journal of Computing and e-Systems, track chair for multiple topics at TIGERA, and either as a guest or invited reviewer for various academic journals. He has published papers in academic journals including Cybernetics and Informatics, International Journal of Computer Science and Information Security, International Journal of Management Science and Business Administration, Journal of Management and Business Research, Journal of Systemics, and Review of Contemporary Business Research. You may reach him at collare@wcsu.edu.

References

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• Massa, A., Irrera, A., & Miller, H. (2022 Sep 14). Crypto Quant Shop With Ties to FTX Power Bankman-Fried’s Empire. https://www.bloomberg.com/news/articles/2022-09-14/trading-firm-alameda-research-powers-ftx-ceo-sam-bankman-fried-s-crypto-empire

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• Osipovich, A., and Berwick, A. (2023 Oct 5). FTX Employees Found Alameda’s Secret Backdoor Months Before Collapse. The Wall Street Journal. https://www.wsj.com/finance/ftx-employees-found-alamedas-secret-backdoor-months-before-collapse-7f983fcd

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• Saeedy, A., and Dougherty, D. (2023 Oct 7). Here’s How FTX Executives Secretly Spent $8 Billion in Customer Money. Wall Street Journal. https://www.wsj.com/finance/regulation/sbf-trial-ftx-customer-money-missing-6ba13914

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• S. v. Samuel Bankman-Fried a/k/a “SBF”, 22 Cr. 673. (2022 Dec 9). Southern District of New York Retrieved from https://www.justice.gov/usao-sdny/united-states-v-samuel-bankman-fried-aka-sbf-22-cr-673-lak

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Footnotes

1. For a lengthy and personal discussion of Samuel Bankman-Fried and his parents, see Sheelah Kolhatkar, Inside Sam Bankman-Fried’s Family Bubble, The New Yorker (Sept. 25, 2023). Kolhatkar, S. (2023 Sep 25, Sep 25). Inside Sam Bankman-Fried’s Family Bubble. The New Yorker. https://www.newyorker.com/magazine/2023/10/02/inside-sam-bankman-frieds-family-bubble

2. CoinDesk is a major digital media company that investigates, publishes and distributes information about digital technologies including crypto assets and blockchain technologies.

3. 18 U.S.C. §1343 states: Whoever, having devised or intending to devise any scheme or artifice to defraud, or for obtaining money or property by means of false or fraudulent pretenses, representations, or promises, transmits or causes to be transmitted by means of wire, radio, or television communication in interstate or foreign commerce, any writings, signs, signals, pictures, or sounds for the purpose of executing such scheme or artifice, shall be fined under this title or imprisoned not more than 20 years.

4. U.S.C. §2 states: (a) Whoever commits an offense against the U.S. or aids, abets, counsels, commands, induces or procures its commission, is punishable as a principal; (b) Whoever willfully causes an act to be done which if directly performed by him or another would be an offense against the U.S., is punishable as a principal.

5. 18 U.S.C. §1349 states: Any person who attempts or conspires to commit any offense under this chapter shall be subject to the same penalties as those prescribed for the offense, the commission of which was the object of the attempt or conspiracy.

6. 15 U.S.C. §78j(b) Manipulative and Deceptive Devices states: It shall be unlawful for any person, directly or indirectly, by the use of any means or instrumentality of interstate commerce or of the mails, or of any facility of any national securities exchange— (b) To use or employ, in connection with the purchase or sale of any security registered on a national securities exchange or any security not so registered, or any securities-based swap agreement [1] any manipulative or deceptive device or contrivance in contravention of such rules and regulations as the Commission may prescribe as necessary or appropriate in the public interest or for the protection of investors.

7. 18 U.S.C. §1957(a) states: 18 U.S. Code § 1957 – Engaging in monetary transactions in property derived from specified unlawful activity (a).

Whoever, in any of the circumstances set forth in subsection (d), knowingly engages or attempts to engage in a monetary transaction in criminally derived property of a value greater than $10,000 and is derived from specified unlawful activity, shall be punished as provided in subsection (b).

(b) (1) Except as provided in paragraph (2), the punishment for an offense under this section is a fine under title 18, United States Code, or imprisonment for not more than ten years or both. If the offense involves a pre-retail medical product (as defined in section 670) the punishment for the offense shall be the same as the punishment for an offense under section 670 unless the punishment under this subsection is greater. (2) The court may impose an alternate fine to that imposable under paragraph (1) of not more than twice the amount of the criminally derived property involved in the transaction.

The post Poster Child of Securities Fraud — The Sam Bankman-Fried Litigation and Its Aftermath Part I appeared first on The European Business Review.

While the specifics of his plans remain unclear, particularly regarding the scope and targets of proposed tariffs, it is evident that these policies could greatly impact international trade. For now, understanding market movements depends on identifying the key driving forces based on available data. Currently, the dominant factor shaping U.S. stock markets is inflation.

Market Recovery Driven by Inflation Data

Following weeks of declines, the market rebounded from its recent low after the release of December’s inflation data. The data revealed a slight decline in inflation compared to the stagnation observed in November, which raised concerns.

Key Factor: Core Inflation

The most promising development was the decline in core inflation, affecting durable goods. Core inflation is calculated by excluding food and energy prices, as these are more volatile and subject to short-term supply shocks. This measure offers a clearer perspective on the true pace of price increases. For the first time in months, core inflation decreased, though it remains above the Federal Reserve’s target range of 2–3%.

A closer look at the overall inflation data reveals that service and rental prices are still uncomfortably high, while food inflation seems to be under control.

The Federal Reserve monitors two additional metrics to guide interest rate decisions:

• Sticky prices: These measure prices that are slower to change.
• Trimmed mean inflation: This metric excludes outliers from the overall inflation data to provide a more balanced view.

Both indicators declined in December but remained above the Fed’s target range.

Federal Reserve Chairman Jerome Powell has made it clear that further interest rate cuts are unlikely until inflation is firmly under control. While trends appear to be heading in the right direction, current data still presents challenges.

Tariffs vs. Inflation: A Potential Conflict

In his inaugural speech, Trump reiterated his commitment to imposing import tariffs and tackling inflation. However, these two objectives may be at odds:

• Tariffs: High tariffs could lead to increased prices, adding to inflationary pressures.
• Anti-inflation measures: A strong focus on reducing inflation might make it politically difficult to justify price hikes on imported goods.

Balancing these priorities could have far-reaching consequences for markets, which are already considered some of the most expensive in history. Investors and traders should closely monitor these developments as they unfold.

Currently, markets are awaiting January’s data release. Another decline in inflation could push stock indices including the S&P 500, the Dow Jones index, and the tech-heavy Nasdaq Composite to new all-time highs, despite the Federal Reserve’s cautious stance at the end of last year. The Fed is unlikely to ease interest rates, especially given the continued strength of the labor market.

Economic data will remain a major driving force as 2025 unfolds. Staying informed about upcoming economic calendar releases will be critical for effectively navigating market movements.

The post Inflation, Fed Policies, and Trump’s Economic Vision appeared first on The European Business Review.

By Alessandro Hatami

Private banking is on an upswing, buoyed by growth in emerging markets such as Asia – the most important global growth engine of 2024-5 according to HSBC – and also by new wealth created by entrepreneurial digital-first ventures such green and genAI focussed businesses.   

Another transformational event is the massive generational wealth transfer already underway globally. In the next two decades $84 trillion will change hands – to put this figure in perspective, the GDP of the USA in 2023 was $27.4 trillion – about a third of that amount. 

In theory, with their centuries of experience in handling the needs of the world’s wealthiest, the private banking sector’s legacy players are perfectly positioned to take advantage of this massive wealth management task. In practice, they will need to profoundly change the way they operate to align with their new, younger, more diverse, digital-first client pool.  

Private banks’ existing client base – the silent generation and boomers – often expect face-to-face engagement including updates at agreed time slots with advice on a traditional range of investment opportunities. However, the new wealth management clientele favours a combination of both digital channels and traditional client interaction. They are also keen to explore a much wider range of investments such as digital assets (crypto/ NFTs), passion investing (art, wine), angel venture investing and most importantly, purpose investing which involves looking at generating returns while making a positive impact on society. They expect to interact with whoever is managing their assets in real-time.    

Consequently, private banks will need to enhance their digital capabilities while upgrading the quality of their face-to-face engagement. Adapting to this new wealth paradigm starts now – and my view is that the following will be key trends in 2025:  

• Joint Human and AI Advice: Private banking clients are reluctant to engage with robo-advisors – but they will appreciate the depth and speed of advice given by a private banker using AI. In 2025, we will see increased adoption of AI by relationship managers, with advice delivered via the client’s preferred communication channels. The delivery of individualised experiences is key to this working well. Market leaders already heading down this road include LGT, JP Morgan, St James’s Place and RBC, all of which are investing in developing AI systems.   
• New asset classes will come to the fore: The days of playing it safe with wealth are over. New segments and generations of private banking customers increasingly want their private bankers to provide access to new asset classes. There are several key areas attracting interest. Firstly, digital assets, from cryptocurrencies to tokenised commodities. Secondly, passion investment, such as art, wine and spirits. Finally, impact investments. These opportunities generate commercial returns and deliver social, cultural, economic and environmental benefits. Impact investments should include access to angel and seed investments into disruptive transformational startups. 
• The industry will pivot to Private  Banking as a Service: To deliver these diverse capabilities, banks may have to offer skills and expertise that are difficult (perhaps impossible) to provide with internal resources. As a result, private banks will become platforms through which their clients can seamlessly engage with specialist advisors and delivery platforms. Private Banking as a Service will gain in popularity, and this may open up a space for embedded finance partnerships with brands in the luxury space.  
• Next-gen wealth means new faces: As money changes hands and social norms evolve, the profile of the wealthy is changing. Next-generation affluent customers will be much more diverse in terms of their backgrounds, gender identification and overall outlook on life than previous generations. Private banks will need to be ahead of these shifts and factor them into how they promote their services and, crucially, how they recruit, train and retain employees.  
• New wealth landscape brings enhanced risk: The inexorable move towards a digital user experience, combined with an expansion in asset classes, will increase cyber risks. Private banks will need to make sure they enhance their ability to address such risks, because if accounts of High-Net-Worth Individuals (HNWIs) get hacked, the potential net losses can be much greater than other types of bank clients. In 2025, expect to hear about much deeper engagement between private banks and the cybersecurity ecosystem. 
• A transformed user experience: One likely consequence of this generational shift is the development of a ‘wealth super app’, which delivers every wealth finance instrument that customers might want, via a single unified platform. Supported by AI, this unified customer experience will integrate everything from stock and shares to pensions and mortgages into a single destination. The wealth super app will provide HNWIs with a holistic view of their wealth and offer personalised suggestions about investment opportunities.  

Final thought: Increased complexity will demand strategic rigour    

New technology, atypical asset classes, a diversified client base, and deeper personalisation will increase the complexity of offering best-in-class advice to HNWIs. As such, private banks will need to invest in their employees and the systems they rely on. Employees will require high-quality training to navigate the new landscape. Meanwhile banks must develop a strategic framework that ensures they can offer a consistently compelling proposition capable of meeting the expectations of a very different set of customers.

About the Author

Alessandro Hatami is the managing partner of Pacemakers.io, a consultancy specialising in digital transformation in finance. He works for financial organisations across the globe including the UK, Europe and the Middle East. Previously he was the COO of Digital Banking at Lloyds Banking Group and has held several senior roles at PayPal, Paypoint and GE Capital. Alessandro is the co-author of “Reinventing Banking and Finance” rated Best Book on Banking of 2021 by Investopedia. He is an NED, an investor in tech startups and a frequent speaker at Fintech events worldwide.

The post Private Banking: AI-Enhanced Advice, New Asset Classes, Wealth Super Apps: Six Wealth Management Trends for 2025  appeared first on The European Business Review.

While the 25-basis-point rate cut was widely expected by analysts, November’s inflation data—released in December—showed a slight increase, with the core component remaining stubbornly above the Fed’s maximum tolerated level. The market reaction was not confined to equities. The Dollar Index also saw increased volatility. Initially, the rate cut put pressure on the dollar, but Powell’s hawkish remarks reversed the trend, pushing the index higher as expectations for future cuts dwindled.

The stronger dollar poses challenges for exporters and multinational companies, as it makes U.S. goods more expensive abroad and reduces the value of foreign earnings when converted back to dollars. This, in turn, weighed on stock valuations, contributing to the S&P 500’s 3% drop during the session. Small-cap stocks, represented by the Russell 2000, suffered even more significant losses, dropping 4.4%, marking the worst “Fed Day” since March 2020, when the central bank implemented an emergency rate cut over a weekend in response to the COVID-19 pandemic.

The market had priced in expectations for 2-3 rate cuts next year, but now it seems there may only be one. With stocks — particularly in the tech sector—trading at high valuations reminiscent of the 2000 dot-com bubble, investors seem eager to sell and lock in profits ahead of the holiday season.

This Fed Day may simply serve as a catalyst, as many investors were likely already planning to close positions to secure gains from this record-breaking year in the stock market. In the short term, it is reasonable to expect the top-performing assets of the year could face the steepest declines.

From a longer-term perspective, the likelihood of just one rate cut next year suggests higher inflation and elevated interest rates for an extended period. This would weigh on stock valuations, increase borrowing costs, and worsen the federal deficit.

The VIX, commonly known as the “fear index,” which gauges implied volatility of S&P 500 options saw a notable spike. While the increase wasn’t as dramatic as the early August sell-off triggered by margin closures on leveraged yen positions, the levels reached remain concerning.

In the weeks ahead, it will become clear whether this Fed Day was merely a trigger for traders to close positions they were already planning to wind down before the holidays or the beginning of a broader market correction heading into early 2025. If the latter is the case, heightened attention should be given to highly volatile assets, including Bitcoin, which could also face significant declines.

The post The Fed Day That Shook Wall Street appeared first on The European Business Review.

Global Economic System

Over the last year, much of the world has gone to the polls: The US, EU, UK, India, Mexico, and many more have chosen new leaders and a new direction. While the political leaders differ dramatically in ideology, voters were relatively unified in their demand: change, especially in policies affecting their personal economic situation. The response from those that won elections – whether liberal or conservative – was also strikingly similar: protectionism, especially justified by some national security excuse.

As a result, we are now entering a “patchwork quilt” global economic system. Globalization is not dead, but it is fractured. There are goods, services, and diplomatic and security relationships countries still need from each other, but governments are trending to be as protectionist as possible as part of a pursuit to improve the position of their own electorates.

While there have been significant benefits to globalization, many voters felt like they lost out.  Under globalization, the belief was that the pie could grow infinitely.  Under protectionist populism (or perhaps “Trump-ization”), the pie is finite and you have to fight for your slice.

This has led to all governments – whether liberal or conservative – to be much more protectionist. Their focus is now local job creation and investment.  The policies we are seeing, especially those that impact international trade, reflect this.

These policies come in the form of differing sanctions, import, export, tax, foreign investment (especially in critical technologies), and incentive policies. Most recently, Donald Trump has threatened tariffs on Canada, Mexico, and China, as well as other BRICS countries, justified primarily by national security issues, including illegal migration, drug trafficking, and a defense of the dominant position of the U.S. dollar.  To counter this, China is limiting the export of critical minerals to U.S. companies on the grounds that these companies threaten China’s national security by supporting U.S. aggression against China.

In this new patchwork quilt reality, the investment climate and rules are different depending on what square you are in. The rules that allow you to operate between squares are complicated and ever changing. And the rules also differ considerably depending on which two squares you are operating between: trade between the UK and the US, and the UK and China.

Not to belabor the analogy, but the era of “seamless” trade and business operations is over.

Business leaders should now be preoccupied more than before with multi-jurisdictional surveys and tax planning.  Businesses need to understand and weigh competing risks and benefits in multiple jurisdictions. Global businesses need to be savvy about tying together the patchwork in a way that works for them.  They also must be prepared for much harsher competition, including from rivals using government allies to create an advantage or impose new hurdles.

As executives consider where to do business or how best to manage risk, they should consider the following ten key points:

• Tariffs – Where will the cost of their, or their competitors’, imports go up or down?
• Export controls and supply chain limitations – Will they be able to export their products to customers in different countries? Will their competitors be able to secure critical components?
• Foreign investment limitation – Will foreign investment restrictions (CFIUS, NSIA, etc.) make it hard for them to raise money in a certain country? Will these rules protect them from a hostile takeover from a foreign investor?
• Data – How hard will it be for a company to move data from one country of operation to another?
• Employee migration – With immigration such a big issue, can the company get the talent it needs where it needs them?
• Aspiration rules – will the aspiration rules of a jurisdiction – those rules designed to make the world a better place, such as anti-sweat shop rules or the EU’s carbon border adjustment mechanism – drive up costs, or will they be limited by governments because of their inflationary impact?
• Innovation vs. safeguards – is the jurisdiction more interested in supporting new technology, such as AI or crypto, or in putting safeguards in place?
• Incentives – what incentives is the government offering to support investment, such as tax cuts or grants?
• Customers – which country has the most customers with the most available purchasing power?
• Cheap cash – which jurisdiction has the best interest rates and investor climate, including VC, PE, and stock markets, to support growth?

As an example, consider the current battle where the U.S. is limiting the export of advanced microchips to China, and China is limiting the export of rare earth metals to the United States.  A German company might need both chips and metals and might want to export to both the U.S. and China. The new patchwork quilt of regulations makes this incredibly complex and may force the German company to move certain operations or limit its export of certain products depending on the component and destination.

Amongst all of this, businesses must remember the Buddhist truth that the only certainty is impermanence. The situation – and governments and their policies – will constantly change.  For example, if you want to take advantage of new tariff regimes, but it will take you multiple years to move your plant, personnel, and technology, is it worth it if the government is going to change?

In this new world of rapid change, businesses need to be dynamic and ready to seize opportunity in a sea of ever shifting risks and rules.

The post The Ten Factors CEOs Should Be Thinking About In Our New “Patchwork Quilt” appeared first on The European Business Review.

The holiday season is a particularly demanding time for many businesses, especially for family-owned enterprises. The combination of increased business demands, tight deadlines, and family expectations can create a perfect storm of stress and exhaustion. Balancing workload and rest becomes essential not only for sustaining business performance but also for maintaining the well-being of family members and employees. Family businesses, often driven by a strong work ethic and personal ties to their legacy, need to pay careful attention to holiday season burnout to ensure they don’t compromise their health or the business’s long-term resilience. In this article we distill some key insights with the intent to help family members to manage the tension between family and business duties.

The risk of burnout

In family businesses it is hard to prioritize family and business priorities, especially in the holiday season. For many, the end of the year brings a surge in demand—whether through increased sales, meeting annual targets, or finalizing year-end reporting. For retail-based family businesses, this period can mean working long hours to cater to the influx of holiday shoppers. Similarly, manufacturing and service-oriented family firms may find themselves struggling to meet seasonal deadlines. At the same time, families may expect to spend quality time together during the holidays, placing additional emotional pressure on family business members who are already stretched thin. This dual responsibility can leave individuals feeling overwhelmed and undervalued, particularly when rest is sacrificed for keeping up with expectations.

How to cope?

A critical factor is setting boundaries between work and family time. While it can be tempting for family members to discuss business matters during holiday gatherings, it is essential to carve out specific time for rest and family connection. Very often, not all family members are involved in the same businesses, and those who aren’t may feel marginalized or like outsiders when business-related conversations arise during family gatherings. Families can create ground rules, such as keeping business conversations out of the dinner table or ensuring that at least certain days are completely work-free. Respecting other family members’ boundaries and free time is also crucial to ensure they can fully enjoy the festive season and get the rest they need. By establishing these boundaries, they can recharge, strengthen personal relationships, and return to work with renewed energy. In cases where businesses cannot completely shut down operations, rotating responsibilities can help ensure that everyone gets a fair opportunity to rest.

Indeed, another key factor to avoid burnout lies in effective workload management. Family businesses should prioritize planning and delegation well ahead of the holiday rush. Early preparation enables businesses to predict demand and allocate resources accordingly. For instance, increasing temporary staffing or shifting certain workloads to quieter periods can help alleviate the burden on core team members. Some family businesses successfully implement flexible scheduling systems, allowing employees and family members to share responsibilities while ensuring everyone gets some downtime. Delegating tasks also means trusting non-family employees to step up during this period, reducing the reliance on family members alone to keep the business running.

Technology can also play a role in managing workloads effectively. Tools like automated systems, inventory management software, and digital communication platforms can streamline operations, minimize errors, and reduce the need for manual intervention during the busiest periods. These tools can allow family members to stay in control even if not fully involved in the daily business.

Mental health and spirituality

Additionally, family businesses should prioritize mental and physical well-being. They should promote a culture of wellness within the organization by sending a clear message that rest and health are just as important as meeting business targets. Taking care of family spirituality and extending this attention to employees can be pivotal for the organization and its members. Encouraging short breaks, flexible hours, or activities like mindfulness practices can significantly improve morale and productivity. The Christmas period is also an important time for families to uphold their traditions and rituals, and for religious individuals, it can serve as an opportunity for spiritual reunion.

What about non-family members?

For family business leaders, this also means leading by example. If senior family members demonstrate the importance of taking breaks and maintaining a healthy work-life balance, employees are more likely to follow suit. Equally important is acknowledging and rewarding the extra effort put in during the holiday season. Expressing gratitude through verbal recognition, bonuses, or additional time off after the peak period helps family members and employees feel valued for their hard work. In family businesses, where loyalty and emotional connections often run deep, such gestures foster goodwill and strengthen commitment to the business. For instance, some family firms offer post-holiday breaks or company-sponsored retreats as a way to give back to their teams.

Communication plays a vital role in preventing holiday burnout. Clear and transparent discussions about workloads, expectations, and time-off policies ensure that no one feels overburdened or excluded. Family businesses should engage their teams early in conversations about holiday schedules, ensuring that everyone is aware of their roles and responsibilities. Open dialogue also creates an opportunity for team members to voice concerns and suggest practical solutions for managing workload and rest.

Conclusions

The holiday season, while demanding, presents an opportunity for family businesses to showcase their resilience and values. By planning ahead, setting clear boundaries, leveraging technology, and fostering a culture of well-being, family businesses can effectively manage workloads while prioritizing rest. The ability to strike this balance ensures that family members and employees remain energized, motivated, and connected—not only during the holidays but also as they look ahead to the new year. In many ways, the holiday season serves as a microcosm of the broader challenges. By recognizing the importance of rest alongside work, family businesses can enter the new year refreshed, resilient, and ready for the opportunities ahead.

About the Authors 

Alfredo De Massis is a Professor of Entrepreneurship & Family Business at the D’Annunzio University of Chieti-Pescara and IMD Business School, who serves as adviser to entrepreneurial families and policy makers. 

Emanuela Rondi is Associate Professor at the Department of Management at the Università degli Studi di Bergamo (Italy). After graduating in Management Engineering, she got her PhD on Family Business Management from Lancaster University Management School (UK).  

Alfredo De Massis and Emanuela Rondi are co-authors of The Family Business Book: A roadmap for entrepreneurial families to prosper across generations  out now, published by FT Publishing

The post Holiday Season Burnout: How Can Family Businesses Manage Workload and Rest appeared first on The European Business Review.

Expanding into international markets helps companies build a stable order book that is not dependent on local economic conditions. For example, at the start of the full-scale war in 2022, Ukrainian companies that focused only on the domestic market faced a drop in demand and logistical constraints. However, companies that already had foreign customers were able to compensate for their losses and continue to operate.

Export markets offer prospects for additional sales. Manufacturing companies are often faced with a surplus that cannot be sold within a country. This is particularly true in a limited market. Exporting allows them to use their existing resources more efficiently.

International trade motivates companies to adapt to high quality standards, certification requirements and environmental regulations. This stimulates innovation and enhances the company’s reputation.

How do you choose a market to scale?

I advise you to carefully analyse several key factors:

1. Market size and demand 

To do this, companies can use customs databases, which allow you to study export and import transactions by product codes; it is also important to research competitors, their activities and estimate market capacity.

2. Analysis of mentality and consumer habits

Understanding local characteristics and culture is an important aspect of entering a new market. It is worth investigating the extent to which your business can take root and create competition. For example, in a number of European countries, people choose local suppliers despite the higher price and quality of goods compared to foreign manufacturers. In other words, they buy from their own people because they are ‘their own’. It is difficult to work in such markets and it is almost impossible to fight such habits. That is why it is important to study the market and the characteristics of the public before you decide to start. 

3. Logistics and costs

Logistics can be a limiting factor, especially for low-margin or high-volume products. For example, shipping products to remote countries may not be cost effective due to high transport costs. 

Strategy for entering international markets

1. Ensure that your material and technical base is ready for a new start. 

Entering new markets means an increase in the volume of finished products and therefore an increase in frozen funds.

2. Your company website should be cool 

A modern customer gets to know a company through its website or social media. It is important to create a multilingual, easy-to-use website with high quality SEO optimisation.

3. Start testing

Once you have chosen a country, start carefully. One client, two. You’ll see how the market works, what you need to improve, where you need to strengthen and what skills you need to improve. Your first clients in a new market are the best opportunity to refine your strategy. 

Entering international markets is a strategic move that can lead to rapid growth for a company and help attract foreign investment. For many companies, expansion can be a lifeline in the current economic climate. However, it is important to consider all the issues and risks and develop an effective brand scaling strategy.

The post Bet on Expansion! How can Companies Expand into Foreign Markets? appeared first on The European Business Review.

Beginner traders often feel tempted by the idea of prop firms trading. The temptation is obvious! Prop firm trading provides traders with the capital they need to start trading. So, there is a reduced risk of financial loss. In addition, many prop firms provide mentorship and access to technological resources to help traders make informed trading decisions.

But, like any investment strategy, prop firm trading also has disadvantages. In this blog, we will reveal the pros and cons of prop firms trading. Let’s begin with the definition  of prop firm trading:

What exactly is prop firm trading

In the prop firm trading model, the prop firm uses its own capital, leverage, and resources to invest and trade in financial markets such as bonds, currencies, stocks, commodities, etc. Profits are generated based on the firm’s market positions and trading activities. Today, many traders even look for a no challenge prop firm option to start trading without evaluation hurdles.

People often confuse prop firm trading with prop trading. Although both concepts are similar, they differ in the way they operate. 

In prop trading (proprietary trading), a firm uses its capital for trading to make a direct profit rather than earning a commission from traders. On the other hand, prop firm trading involves traders using a firm’s capital to trade, and the firm makes money by charging certain fees and a commission on the profit.

Pros and cons of prop firms trading

Learning about the pros and cons of prop firm trading can help you make an informed decision. Pros of prop firm trading can turn common challenges into triumphs. Continue reading to know how:

Pros of proper firms trading

You can access larger capital.

Because you’re using the funds of the prop firm, you can trade with substantial capital. There are many of the best prop firms that offer funded accounts with large capital. So, you can execute larger traders with the potential of higher profits than you could make with limited funds. So, this can be a game-changer for traders who lack enough capital.

Get the necessary training and education to become a pro trader.

Prop firms not only focus on providing capital and earning commissions. The best prop firms also focus on trader development. For this purpose, they provide well-planned training and education programs for beginners and experienced traders. You can benefit from webinars, mentorship, and one-on-one coaching sessions. This will eventually help you build trading skills and improve your chances of success.

Professional risk management

Your prop firm should already have a risk management plan in place. So you don’t have to worry about personal financial losses. Instead, you can stay more focused on trading strategy and execution.

Benefit from advanced tools and technology

All the best prop firms invest in high-end technology. When you choose such a company, you can benefit from its professional platforms, direct market access, and advanced technology. This not only enhances your decision-making process, but you can also execute trade more efficiently. Otherwise, these resources might be inaccessible or costly.

Cons of proper firms trading

Pay attention to the following cons and watch out for common mistakes in prop trading based on these:

Riskier than trading with traditional brokers

This is because prop firms often lack regulatory protections. Also, these firms require traders to pay a certain amount of money as collateral, which can be lost in case of unsuccessful trading.

Need to follow strict rules

Prop firms enforce strict rules and guidelines for traders. These typically include daily loss limits, fixed trading hours, maximum drawdowns, etc. Failure to follow these rules and guidelines means you may lose access to the capital or even have permanent termination. These restrictions can make traders feel limited.

Profit sharing

In exchange for capital and resources, you have to pay a portion of your profits to the prop firm. The range of this portion can be between 10-50%, depending on the prop firm and your account type. This can influence your overall profits with trading.

Limited trading instruments

Some prop firms focus solely on certain stocks, forex, or other specific commodities. Limited trading instruments can restrict your trading approach.

Choosing the best prop firms for trading

Finally, it’s your prop firm that can make the whole difference. A genuine prop firm works ethically, considering the profits of both – traders and their firms. Their goal is to encourage the professional and financial growth of both entities.

So, understand the pros and cons of props firms carefully and find the best firm that aligns with your trading goals. Good luck!

The post Prop Firms Trading – Pros & Cons Revealed appeared first on The European Business Review.

The Role of Artificial Intelligence in Qatar’s Growth

Artificial intelligence is at the heart of Qatar’s push for innovation. The government and private sector are working together to adopt AI across multiple industries, such as healthcare, education, and transportation. For instance, AI-powered tools are being used in hospitals to improve patient care through faster diagnoses and personalized treatment plans. In education, AI systems are helping teachers create tailored learning experiences for students. Additionally, AI-driven data analysis is being used to plan smarter urban developments and improve infrastructure, contributing to Qatar’s goal of becoming a knowledge-based economy.

Key Industries Benefiting from Innovation in Qatar

Innovation is driving growth in several key industries in Qatar. The energy sector is using advanced technologies to optimize energy production, especially in natural gas, while also exploring renewable energy solutions. The construction industry is being transformed with smart building systems and sustainable materials, making projects faster, safer, and more efficient. In tourism, virtual reality (VR) and augmented reality (AR) are enhancing experiences, allowing visitors to explore cultural landmarks digitally before arriving in Qatar. The healthcare sector is also benefiting from telemedicine and robotics, which are improving access to healthcare and making surgeries more precise. These innovations are not only boosting Qatar’s economy but also positioning it as a leader in technological advancements in the Middle East.

Emerging Technologies Used in Online Casinos in Qatar

Online casinos are another area where innovation is making an impact despite Qatar’s strict regulatory environment. Advanced technologies like blockchain and AI are enhancing the safety, transparency, and user experience of online gambling platforms. Blockchain technology ensures secure and anonymous transactions, offering users greater trust in the platforms. Artificial intelligence is improving customer support, personalizing gaming experiences, and detecting fraudulent activities.

For a deeper understanding of how online casinos navigate Qatar’s regulatory and cultural landscape, this comprehensive guide on Qatar’s online casino regulations offers valuable insights. It provides information on legal considerations, available platforms, and the role of technology in shaping secure and culturally mindful gaming environments. Virtual reality is also providing players with immersive gaming experiences, allowing them to feel like they are in a real casino from the comfort of their homes. Although online gambling remains a sensitive topic in Qatar, technological advancements in this area highlight the broader potential of these tools for other digital industries.

Education and Research: Catalysts for Technological Advancement

Qatar’s focus on education and research is central to its innovation strategy, underpinning its Vision 2030 goals. The country is home to Education City, a sprawling campus that houses branches of leading international universities such as Carnegie Mellon University, Georgetown University, and Texas A&M University. These institutions are at the forefront of research in AI, sustainable energy, and healthcare technologies, fostering a culture of innovation among students and researchers.

The Qatar National Research Fund (QNRF) further accelerates progress by providing grants to projects that align with national priorities. For instance, QNRF has supported initiatives like developing AI systems for predictive healthcare and enhancing desalination technologies to ensure sustainable water resources. The Doha Debates, another initiative from Qatar Foundation, brings global thought leaders together to discuss pressing issues, promoting knowledge exchange and collaboration.

Concrete steps have also been taken to integrate technology into education. Qatar’s Ministry of Education has implemented smart classrooms across schools, equipped with interactive digital tools that enhance learning experiences. Additionally, the country is leveraging AI to analyze student performance data, enabling educators to tailor teaching strategies and improve outcomes.

These efforts highlight Qatar’s commitment to investing in human capital and fostering a knowledge-based economy, ensuring the nation remains competitive in the global technology landscape.

How Technology is Improving Daily Life in Qatar

Technology is making daily life in Qatar more convenient and efficient. Smart city initiatives like those in Lusail City use IoT (Internet of Things) devices to optimize energy use, manage traffic, and enhance public safety. Citizens can now access government services online through user-friendly apps, saving time and effort. E-commerce platforms and digital payment systems are also booming, offering residents a seamless shopping experience. Education has seen significant advancements, with schools and universities adopting online learning platforms to ensure uninterrupted education during challenges like the COVID-19 pandemic.

Conclusion

Qatar is demonstrating that innovation and education are the twin engines driving its journey toward a prosperous and sustainable future. By placing AI at the core of its development strategy, the nation is modernizing industries such as healthcare, energy, and tourism while also leveraging emerging technologies like blockchain and VR to explore new opportunities, even in tightly regulated areas like online casinos. Education and research have emerged as crucial pillars, with initiatives like Education City and the Qatar National Research Fund fostering a knowledge-based economy and nurturing the next generation of innovators. 

As the nation continues to invest in its Vision 2030 goals, its focus on technology, education, and research cements its role as a global hub for progress and sustainability.

The post Innovation Driving Qatar’s Future appeared first on The European Business Review.

How Technology is Transforming Business

Technology is at the forefront of reshaping businesses in the Middle East. Governments and private sectors are heavily investing in digital transformation, focusing on areas such as artificial intelligence (AI), blockchain, and e-commerce. These advancements are enhancing operational efficiency, improving customer experiences, and enabling expansion into global markets.

Initiatives like Saudi Arabia’s Vision 2030 aim to diversify economies through technology, positioning the region as a hub for innovation. For instance, the UAE has launched the ‘UAE Strategy for Artificial Intelligence,’ aiming to make the government more efficient by 2031. Additionally, the Middle East is expected to accrue 2% of the total global benefits of AI by 2030, equivalent to approximately $320 billion, with Saudi Arabia anticipated to see the largest gains..

Emerging Industries in the Middle East

Several industries are experiencing significant growth in the Middle East, including renewable energy, logistics, and entertainment.

Countries like the UAE and Saudi Arabia are prioritizing sustainable solutions, leading to rapid growth in the renewable energy sector. Saudi Arabia has announced plans to generate 50% of its energy from renewable sources by 2030.

The surge in e-commerce and trade has expanded the logistics and transportation sectors. The Middle East’s strategic location as a global trade hub has attracted significant investments in infrastructure, enhancing connectivity between Asia, Europe, and Africa.

The entertainment industry is flourishing, with countries like Saudi Arabia lifting bans on cinemas and hosting international events. The UAE’s Dubai Media City has become a regional hub for media organizations, attracting global companies to establish their presence.

The Rise of Online Casinos in the Middle East

The online casino industry, as an important part of entertainment, is experiencing growth in the Middle East despite cultural and legal restrictions. Advances in mobile internet usage have contributed significantly, with countries like Saudi Arabia seeing 75% of internet traffic coming from mobile devices. Platforms offer a variety of games, using technologies like blockchain for secure transactions and AI for personalized gaming experiences.

As highlighted in a detailed analysis of the gambling market in the Middle East, the regulatory landscape remains complex, with varying levels of acceptance across the region. While some countries maintain strict prohibitions, others, like Egypt and Morocco, allow specific forms of regulated gambling, showing how the industry is adapting to diverse legal frameworks.

While gambling remains prohibited in many countries due to religious and cultural norms, some regions show signs of change. For instance, the UAE’s plans to open a gaming resort in Ras Al Khaimah highlight shifting attitudes. Still, operators must navigate complex legal landscapes to succeed in the region​.

Challenges Facing Businesses in the Middle East

Despite the promising trends in the Middle East’s business landscape, companies operating in the region face several significant challenges. Navigating complex regulatory environments can be daunting, as laws and regulations vary across countries. For instance, foreign ownership restrictions in certain sectors may limit investment opportunities. Efforts are underway to diversify economies historically reliant on oil revenues; however, economic diversification remains an urgent priority to ensure sustainable growth. Geopolitical tensions, including regional conflicts and political instability, can impact business operations and investor confidence. Companies must stay informed and adaptable to geopolitical developments. Understanding and respecting local cultures and consumer behaviors are crucial for success, necessitating tailored approaches to resonate with diverse populations across the region.

An interesting fact highlighting the region’s economic challenges is that, according to the International Monetary Fund (IMF), growth in the Middle East and North Africa region is expected to remain sluggish at 2.1% in 2024, with a rebound to 4% projected for 2025, contingent on the phase-out of oil production cuts and the subsiding of headwinds, including conflicts.

This underscores the importance of addressing these challenges to achieve sustainable economic growth.

Conclusion

The Middle East presents a blend of opportunities and challenges for businesses. Technological advancements, emerging industries, and evolving consumer preferences are driving growth, while legal and cultural complexities require strategic navigation. As the region continues to diversify, it is poised to become a global business powerhouse, fostering innovation and sustainable growth in the years to come.

The post The Future of Business in the Middle East appeared first on The European Business Review.

Understanding PIF’s Green Finance Framework

To fulfill Saudi Arabia’s green commitments, PIF has developed its Green Finance Framework, outlining strategies and roadmaps for advancing the Kingdom’s green agenda and detailing projects eligible for green financing in line with international standards.

Accompanying this framework is a Second Party Opinion from DNV, an accredited international registrar and classification society, affirming that PIF’s Green Finance Framework aligns with the Green Bond Principles (2021) of the International Capital Market Association (ICMA) and the Green Loan Principles (2021) of the Loan Market Association (LMA).

For its edible green projects, the PIF has set a capital expenditure demand of $19.4 billion, of which $5.2 billion has been allotted as of June 2024. This pledge is in line with PIF’s continuous commitment to sustainable finance, which is explained in its second Allocation and Impact Report, which was just released.

Significant investments in green buildings, sustainable water management initiatives, and renewable energy are highlighted in the paper. The money allotted thus far has gone toward projects that satisfy certain eligibility requirements intended to support eco-friendly projects.

Numerous investment initiatives were launched to support various projects in renewable energy, healthcare, and technology sectors during the eighth Future Investment Initiative (FII), held in Riyadh from October 29 to November 1, 2024. Global leaders, EU investors, and innovators convened at the event to showcase a range of initiatives and engage in discussions on a variety of subjects.

Saudi Arabia and the EU Cooperation in the AI Sector

Saudi Arabia and the European Union are working together more and more in the field of artificial intelligence (AI) as both countries see how AI can spur innovation and economic progress.

Future cooperative projects, such as the creation of AI-powered renewable energy optimization systems, which seek to optimize energy efficiency and include sustainable technology, were emphasized during the Future Investment Initiative (FII) conference.  

Predictive analytics and telemedicine solutions designed for underserved areas are two other noteworthy initiatives that use AI in healthcare to improve patient care and diagnosis. In order to solve the issues of food security in dry regions, both partners are also developing a smart agriculture platform that uses AI for precision farming and water resource management.

Additional PIF Investment Projects in Europe

It is noteworthy that the Saudi Arabian Public Investment Fund (PIF) has made large investments in sports in the past. The fund paid £300 million to purchase Newcastle United, an English football team, in 2021. The agreement said that 80% of the purchase money came from the fund, which at the time was in charge of assets worth £240 billion.

Fans of Newcastle United welcomed this news with enthusiasm. As one of the most prominent football clubs in England and Europe, with a rich history and traditions, Newcastle was in a prolonged crisis at the time of the acquisition.

Bridging Markets: The EU-Saudi Arabia Online Gambling Partnership

The increasing demand for online entertainment has sparked a fascinating collaboration between European gambling companies and Saudi audiences. These companies have tailored their offerings to align with the region’s cultural sensitivities and discreet consumer preferences, showcasing a bridge between two distinct markets.

EU-based operators utilize cutting-edge technology like virtual private networks (VPNs) to ensure user privacy and secure payment gateways compatible with Gulf financial systems. By integrating region-specific payment methods, such as e-wallets linked to local banks, these platforms enable seamless transactions for Saudi users. Additionally, interfaces designed in Arabic enhance accessibility, further personalizing the user experience.

Cultural adaptation is another key element of this collaboration. Many platforms feature games with themes inspired by Arabian traditions, such as Arabian Nights-themed slots and local motifs, to resonate with Saudi players. Live casino games are carefully designed to feature neutral environments, avoiding overt gambling imagery to respect regional norms.

Discretion in marketing is paramount, with promotions shared primarily through social media and word-of-mouth, appealing to younger, tech-savvy audiences. This delicate balance between privacy, cultural awareness, and technological innovation underscores the evolving relationship between European platforms and Saudi consumers. Interested readers can explore more in Arabic about the dynamics of online gambling in Saudi Arabia and the evolving landscape of this entertainment on Arabic-Casinos.org, a resource providing detailed insights into the availability and adaptation of online casinos for the region.

EU-Saudi Arabia Collaboration in E-Commerce

Saudi Arabia and the European Union’s e-commerce alliance is creating new opportunities for market expansion, technological transfer, and trade. Collaboration is facilitated by Saudi Arabia’s fast-expanding digital economy, which is bolstered by programs like Saudi Vision 2030.

In order to facilitate online company operations, the cooperation focuses on strengthening logistical networks, advancing cross-border payment systems, and exchanging regulatory framework experience. For instance, the EU is helping Saudi Arabia create sophisticated robotics and AI-powered warehouse systems that will speed up order delivery.  

In order to improve accessibility for a variety of customer bases, joint partnerships are also being formed to provide multilingual e-commerce systems suited to Middle Eastern and European markets. In keeping with international environmental norms, Saudi Arabia is also collaborating with businesses in the EU to introduce eco-friendly packaging options in online retail.

In Conclusion

A dynamic interchange of knowledge, creativity, and investment across a range of industries, from artificial intelligence and e-commerce to renewable energy and entertainment, is reflected in the expanding collaboration between Saudi Arabia and the European Union.

These partnerships are tackling global issues, advancing technology, and changing industries.

The post Public Investment Fund of Saudi Arabia: Green Technologies Projects and Other Partnerships with EU appeared first on The European Business Review.

The early stages of new ventures might be the most challenging times. Every quarter of a year, around 300,000 companies are launched in the USA. The problem is that only 90% of them will survive.  

Why do startups fail? Well, there can be a big number of reasons. In some cases, the problem is the lack of experience among founders. In other situations, they are, on the contrary, too ambitious and unrealistic, though very inspired by their innovative ideas.  

Let’s delve deeper into this topic and discuss the five main hurdles for startups in their early stages. 

The Main Difficulties Startups Face  

Underestimating Legal and Regulatory Requirements 

Founders sometimes neglect a very important part of their business — the legal/regulatory side. But it can become a very expensive mistake. For example, the chosen jurisdiction can potentially influence future investor attraction and financial results. Some regions are more or less favorable to investors, and this can refer, in particular, to taxes. Jurisdictions can create competitive advantage by creating special regimes (sandboxes), better regulations, protection of IP, etc., or, on the contrary, create disadvantages by introducing unnecessary barriers. That’s why founders should be very careful and choose wisely. 

Even if this isn’t always critically important at the first steps of creating a startup, the consequences of the decision can create some problems later on. 

Balancing Short-Term Wins with Long-Term Vision 

Founders often struggle to balance short-term goals with long-term vision. Startups can often feel the pressure to achieve immediate results. Eventually, this may end with unnecessary corner-cutting and overlooking important steps.   

To develop harmoniously, each stage must have clear short-term goals that align with the long-term objectives. Founders who stick to this simple principle later conduct better product tests, implement the right improvements, and make more informed decisions. 

Inability to Effectively Scale Operations  

This problem partially flows from the previous issue. Founders who love their startup idea want everything to happen at once. But many times it’s impossible — it can be too ambitious and unhealthy for the project. Research also shows that businesses that scale early are more likely to fail compared to those that scale later. 

Scaling too early or inefficiently is a common problem, often due to a lack of operational experience. Rushing growth without strong processes can stretch resources too thin and hurt quality. It’s better to grow slowly but be more persistent than to jump up too high and be blinded by success.  

Inadequate Financial Planning and Cash Flow Management 

Founders often are over-optimistic about how quickly financial results can be achieved, leading to mismanagement of cash flow and lack of financial discipline. A common case in almost any startup is the management of marketing costs. By nature, marketing requires discipline and knowledge, and a lack of both can burn funds way beyond budgeted figures. This only strengthens the often blind faith in the correctness of the course. In the end, such negligence can bring the project to a crisis or even to death. 

How to Approach Those Threats?  

1. Consult Experts. A professional opinion or, even better, a right strategic partner/investor can be a safer approach to success. 
2. Stay Focused. Clear KPIs can help keep the team stuck with long-term goals and avoid the temptation to chase short-term wins.  
3. Prioritize Sustainable Growth. Investors always appreciate it. To do so, build processes and make sure your business resists external problems before expanding the team. Scale cautiously and avoid over-hiring, especially in non-core business areas. Care about your team and monitor the burn rate closely; consider outsourcing for non-key functions to avoid overusing your company’s resources. 
4. Create Realistic Financial Projections to Avoid Surprises. In terms of financial planning, many businesses ignore this step, which can lead to financial instability and future bankruptcies. Ideally, founders should rely on their own resources first before rushing to seek external funding, ensuring the company remains self-sufficient in the early stages and beyond. 

Be Ready to Solve Problems 

Founders and their teams have to be ready to prioritize a customer-centric approach and solve real problems with their products. The first time around, it’s common to misstep. However, this can even be beneficial. Maturity will come over time, after either good or bad experiences.   

As a founder, do not approach the mistakes or challenges in a negative way. From our experience, we frequently see failures, but the ability to turn them in the right direction always creates new levels of competency and confidence in the team. The learning process will never end, even if your company is a stable and mature one.  

Trying to minimize mistakes, founders may seek mentorship and build a professional network that can complement their excitement but with pragmatism and a practical understanding of everyday issues. These could be funds, investors, or industry advisors who will help founders think realistically.  

Do not also forget that every decision has its consequences. To exclude negative ones, test and validate at least key assumptions when possible. The results can come to the surface not immediately but, for example, after scaling — so be patient.

About the Author 

Kyrillos Akritidis is the Co-Founder and Managing Director of Schwarzwald Capital, a VC fund focused on fintech and creator economy projects. He has led various fintech companies, held senior roles in European banks, and worked at international firms like KPMG.   

The post Roadblocks to Success: What Early Stage Fintech Startups Often Miss   appeared first on The European Business Review.

By Deanne Butchey and Jerry Haar

The globalization of trade and finance has significantly impacted the tax environment and tax policies worldwide. Ultimately, it has allowed for much wiggle room and sharp practices such as tax avoidance and tax evasion. Here is a look into how such practices have impacted international trade.

For nearly half a century, globalization as embedded in trade, finance, technology, communication, culture and human capital, has produced monumental changes in business and society. Even though the pace of globalization has slowed, and the rise of populism has put a damper on market liberalization, there is no proof that deglobalization is or will be a permanent feature of global commerce.

While the growth of international trade and finance as well as the arguments for and against greater global integration have been well-documented, researchers and policy analysts have failed to examine the tax dimensions and implications of cross-border commerce—specifically tax evasion. This is most unfortunate since the financial impact of both can be significant for countries, industries, and the public at large. The global cost of tax evasion and tax avoidance is estimated to be between $427 billion and $600 billion a year. This includes corporate tax avoidance which occurs when multinational corporations shift profits to tax havens with low or no corporate tax rates and private tax evasion when individuals shelter financial assets offshore.

The United States Senate Committee on the Budget notes that the IRS estimated that tax cheating cost the US at least $688 billion in 2021 alone.

The globalization of trade and finance has significantly impacted the tax environment and tax policies around the world, especially through complex international structures, transfer pricing manipulation, and the use of tax havens. This has pressured countries to strengthen their tax enforcement, improve transparency, and enhance international cooperation to combat these practices. The Foreign Account Tax Compliance Act (FATCA) regulation is an attempt to mitigate this situation by requiring that foreign financial institutions and other non-financial foreign entities report on the foreign assets held by their US account holders or be subject to withholding taxation. This subset of The Hiring Incentives to Restore Employment (HIRE) Act also contained legislation requiring US persons to report, depending on the value, their foreign financial accounts and assets. Notwithstanding this, companies still attempt to minimize their tax exposure by registering in Liechtenstein, Switzerland, Panama, and the Cayman Islands. In fact, a 2008 US Government Accountability Office Report found that just one building in the Cayman Islands housed 18,857 mostly international companies.

Just How Does Tax Evasion Impact International Trade?

Tax evasion can have several impacts on international trade. These include distortion of competition, such as when businesses evade taxes by offering lower prices for their goods or services compared to compliant businesses. This creates unfair competition in the international market as compliant businesses may find it harder to compete. Another issue is the loss of government revenue. This includes unfair tax treatment, where even though the majority of income is earned in one country, because of tax domiciles, another country may benefit. For example, the ongoing legal battles between Apple and Ireland over a 14.3 billion Euro tax bill. The United States Senate Committee on the Budget notes that the IRS estimated that tax cheating cost the US at least $688 billion in 2021 alone, an amount which includes $10 billion in unpaid taxes by just one pharmaceutical company, $9 billion owed by Facebook, and $29 billion owed by Microsoft. (Many of these sums are held up in litigation).

Governments rely on tax revenue to fund public services and infrastructure. When tax evasion occurs, governments may have less money available for investments in trade-related infrastructure (like ports, roads, and customs facilities), which can hinder international trade efficiency. Current global infrastructure investment needs are $3.9 trillion annually.

In many sophisticated schemes, multinationals take advantage of anomalies across countries including differences in tariff treatment and corporate income tax (CIT) rates.

Recognizably, a country’s trade balance can be impacted by tax evasion. If businesses evade taxes, they may underreport their exports or imports, leading to inaccurate trade statistics. This can distort a country’s trade balance, making it harder for policymakers to make informed decisions. Still, another problem is the weakening of institutions. Addressing tax evasion requires effective governance and institutions. Countries with the highest levels of tax evasion, which include the United States and Brazil, may struggle to enforce trade regulations and maintain transparency, which can erode trust and confidence in their trading partners. Finally, there is the challenge of the potential for trade barriers. Countries may impose stricter trade regulations or barriers to protect their markets from unfair competition due to tax evasion. This can lead to increased tariffs, quotas, or non-tariff barriers, which in turn can reduce overall trade volume and efficiency.

Countries are implementing various strategies and policies to crack down on tax evasion in international business. These measures include strengthening international cooperation, enhancing transparency, and introducing stricter regulations. For example, the OECD has initiated the Base Erosion and Profit Shifting Project (BEPS) to tackle tax avoidance strategies that exploit gaps and mismatches in tax rules. This includes country-by-country reporting and the harmonization of tax rules. The UK and Australia have passed legislation to strengthen their tax authorities’ capabilities.

In our research, using data from the US Census Bureau, we identify multiple tax arbitrage schemes through the relatively unguarded avenue of international trade. In many sophisticated schemes, multinationals take advantage of anomalies across countries including differences in tariff treatment and corporate income tax (CIT) rates. Typically, government agencies focus on identifying illicit activities including money laundering and financial flows related to terrorism, while under-estimating potential revenue from mispricing of imports.

Turning to emerging markets in Asia and Latin America, they are taking various steps to crack down on tax evasion, often aligning their strategies with international standards while also implementing region-specific measures. For example, India has simplified their tax system and improved compliance through a unified indirect tax system while Indonesia has implemented successful tax amnesty programs. Brazil, taking a leap forward, has installed an electronic invoicing system to improve tax compliance and reduce fraud.

Though legal, but ethically questionable, companies engage in transfer pricing, establish subsidiaries in tax havens, and engage in inversion—when a US-based company merges with or acquires a foreign company and relocates its headquarters to the foreign country to benefit from lower tax rates.

In summary, tax evasion undermines the fairness, transparency, and efficiency of international trade by distorting competition, reducing government revenue, impacting trade balances, weakening institutions, potentially increasing trade barriers, and contributing to economic instability. Addressing tax evasion is therefore crucial for maintaining a level playing field and promoting sustainable international trade practices.

About the Authors

Deanne Butchey is a former stockbroker and Research Analyst at Credit Suisse First Boston in Toronto. She holds a PhD and is a Professor of Finance. She has held leadership positions in the Dean’s Office and served as Faculty Senate Chair and Member of the FIU Board of Trustees.

Jerry Haar is a professor of international business at Florida International University and a fellow of the Woodrow Wilson Center and Council on Competitiveness, both in Washington, DC. He has authored 18 books and served as a consultant to multinational companies.

The post The Under-Examined Underbelly of Global Commerce: Tax Evasion appeared first on The European Business Review.

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