The Banking Executive Magazine - June 2022 Issue

ISSUE 162 JUNE 2022 the BANKING EXECUTIVE 1 Editorial VALUES-BASED FINANCE AT THE MIDST OF THE FOURTH INDUSTRIAL REVOLUTION Many may argue that the current financial system is far from ideal, but it is hard to deny that it has successfully guided one of the most important periods of economic growth in human history. This was based on the idea that countries with strong financial and economic ties were less likely to engage in conflict with each other. However, our world has changed a lot since World War II, especially with a population that has more than tripled to almost eight billion and which is more globally spread and mobile than ever. Today, we are at a crossroads in civilization due to escalating inequality and accelerating climate change. Financial services must innovate and change to be at the forefront of addressing these issues. Technology, particularly digitization, helps us understand what consumers want, and it will be the mean by which we respond to their changing needs. Since we are in the midst of a fourth industrial revolution triggered by advances in artificial intelligence, robotics, internet of things and quantum computing, financial services should respond effectively by integrating all stakeholders; from the public and private business sectors to academics and civil society. In various countries, we are witnessing the emergence of a multidisciplinary and integrated strategy that offers ethical financial solutions and fosters financial welfare for all, with a particular emphasis on minority communities. What they are offering satisfies the needs of a wide range of ethical consumers, including those who support environmental sustainability and faith-based requirements. For example, Algbra, a sustainable and value-focused digital finance provider, published in September 2021 a research on behalf of the Emerging Payments Association and Mastercard, titled ‘Values and lifestyles in banking’, that shows the emergence of several digital banking platforms that serve the needs of underserved communities, such as faith-based communities and the elderly. Dr. Joseph Torbey, Chairman - World Union of Arab Bankers