The information contained in this publication has been obtained from sources the publishers believe to be correct. The publisher wishes to stress that the information contained herein may be subject to varying international, federal, state and/or local laws or regulations.
The purchaser or reader of this publication assumes all responsibility for the use of these materials and information. However, the publisher assumes no responsibility for errors, omissions, or contrary interpretations of the subject matter contained herein no legal liability can be accepted for any errors. No part of this publication may be reproduced without the prior consent of the publisher
editor
Dear Readers’
Welcome to Issue 75 of Global Banking & Finance
Review.
As digital transformation accelerates across banking and finance, institutions are reimagining how they serve customers, harness technology, and create long-term value. In this issue, we spotlight the leaders and strategies driving inclusive innovation—from Africa’s digital banking evolution to AI-enabled retail banking and India’s rise as a global GCC powerhouse.
Featured on our front cover is Subash Sharma, Chief Digital Officer at Absa Personal and Private Banking. In “Empowering Tomorrow: Inside Absa’s Digital Vision for a More Inclusive South Africa” (Page 24), Sharma shares how Absa is redefining the digital experience through trusted, AI-powered services, inclusive design, and customer-driven innovation. With over 25 years of digital leadership, Absa’s multi-channel approach—combining mobile-first platforms with traditional access—continues to bridge financial gaps and promote empowerment across diverse communities.
Artificial intelligence and analytics are also reshaping retail banking. In “Turning Insight into Impact: Making AI and Analytics Work in Retail Banking” (Page 22), Joe Myers of Diebold Nixdorf explores how the true power of AI lies not just in generating insights, but in embedding them into everyday workflows. From churn prevention to footfall optimization, this article examines how frontline adoption is the key to unlocking value and measurable results.
Our third feature turns to global operations strategy. In “Emerging Prominence of Indian GCC and Evolution from Cost Optimizers to Value Creators” (Page 36), Prachi Misra of HSBC outlines how India-based Global Competence Centers (GCCs) are evolving from offshore delivery units into centers of innovation, digital transformation, and strategic business growth. With growing autonomy, specialized talent, and a leadership role in Industry 4.0 technologies, Indian GCCs are redefining the global business services landscape.
At Global Banking & Finance Review, we remain committed to sharing the voices and ideas shaping the future of finance. Whether you lead digital strategy, manage global operations, or explore the possibilities of data-driven transformation, we hope this issue delivers insight and inspiration for the journey ahead.
Enjoy the latest edition!
Wanda Rich Editor
Stay caught up on the latest news and trends taking place by signing up for our free email newsletter, reading us online at http://www.globalbankingandfinance.com/ and download our App for the latest digital magazine for free on Google Play and the Apple App Store
How Fintech Startups Are Restructuring to Survive the 2025 Funding Crunch
From Airtime to Credit Lines How Telecoms Are Becoming the New Banks
Reputation at Risk: Navigating Viral Algorithms and Public Backlash
The Corporate Water Crisis Why Water Scarcity Is Now a CFO-Level Financial Risk
The Global Insurance M&A Surge: What’s Fueling Consolidation Across Sectors
Green Business Trends: How Companies Are Achieving Carbon Neutrality
Supply Chain Sovereignty: Why Businesses Are Localizing Logistics
Beyond the Logo: Unveiling the Strategic Significance of Brand Licensing
How TikTok Shop Is Redefining Retail: The New Playbook for Business Success
Scaling Generative AI: From Pilot Projects to Enterprise Integration
Emerging prominence of Indian GCC and evolution from Cost optimizers to Value creators
Prachi Misra Transformation Advisory Expert HSBC
Turning Insight into Impact: Making AI and Analytics Work in Retail Banking
Myers,
Cover story
Empowering Tomorrow: Inside Absa’s Digital Vision for a More Inclusive South Africa
24 Subash
Sharma, Chief Digital Officer, Absa Personal and Private Banking.
The Global Insurance M&A Surge: What’s Fueling Consolidation Across Sectors
Mergers and acquisitions are gaining momentum across the global insurance industry, but the motivations behind these deals vary by segment. Life & Health insurers are responding to demographic shifts and growth opportunities in emerging markets, while Property & Casualty carriers face mounting claims pressure and climate-related volatility. In reinsurance, capital deployment and structural efficiency are top of mind. Meanwhile, insurtech firms are experiencing consolidation as funding tightens and regulatory demands increase. Across all segments, M&A is becoming a tool for adaptation in a more complex and competitive landscape.
Life & Health: Scale, Diversification, and the Search for Growth
The Life & Health insurance sector has been especially active in the global M&A landscape, fueled by demographic shifts, evolving product demand, and pressure to modernize. Aging populations in developed economies and the expansion of insurance-seeking middle classes in emerging markets are reshaping where and how insurers operate. To stay competitive, firms are using M&A to expand scale, diversify portfolios, and deepen geographic reach.
Global Deal Activity and Trends
After two years of decline, Life & Health insurance M&A showed signs of stabilization in 2024. According to Milliman, 85 transactions were reported globally—up from 80 in 2023— with total deal value increasing slightly to $21.6 billion. While growth remained modest, the uptick marked a cautious return of confidence to the sector.
Regional Dynamics
In Asia-Pacific, Japanese insurers such as MS&AD and Sompo are targeting Southeast Asia to offset domestic market saturation. India continues to attract attention from both local and international players due to its rising middle class and growing adoption of digital-first insurance models, as highlighted by PwC
In Europe, mature markets like the UK and Germany are seeing a wave of cross-border transactions and portfolio realignments. Leading firms, including Allianz and AXA, are pursuing consolidation to streamline operations, optimize capital use, and manage rising compliance costs—trends noted in Deloitte’s global industry M&A outlook.
In the United States, strategic deals and private equity–backed acquisitions are accelerating as insurers look to modernize aging infrastructure, control claims inflation, and focus on niche segments such as supplemental health and group benefits. These moves align with findings in PwC’s U.S. insurance M&A outlook.
Strategic Drivers
Capital efficiency continues to be a central objective. With long-term low interest rates reducing investment income, insurers are seeking acquisitions that enable cost reduction and new revenue opportunities. Demographic changes—particularly longer life expectancy and demand for retirement, health, and critical illness coverage—are pushing incumbents to broaden their product mix and rebalance risk across portfolios.
Stricter solvency requirements and enhanced capital adequacy rules are also forcing smaller players to reassess their competitiveness. According to Deloitte, these regulatory pressures are prompting consolidation as firms look to strengthen their capital position and improve compliance resilience.
Technology is another major catalyst. Rather than build digital capabilities from scratch, many life insurers are acquiring firms that already offer advanced tools in underwriting, distribution, and claims automation. PwC notes that this trend is gaining traction globally, as digital transformation becomes essential to product delivery and customer engagement.
Consolidation in the Life & Health sector is no longer driven purely by scale. For many acquirers, it's a repositioning strategy aimed at long-term value creation. Whether entering new markets, launching integrated wellness offerings, or applying data for more personalized coverage, insurers are using M&A to strengthen their future competitiveness. Integration effectiveness, talent retention, and the ability to innovate across expanded operations will separate short-term deals from enduring success stories.
Property & Casualty (P&C): Margin Pressure, Catastrophe Exposure, and the Race for Efficiency
The Property & Casualty (P&C) insurance sector is at the forefront of global M&A activity. Rising claims costs, inflation, and climate-driven catastrophe losses are placing significant pressure on margins. In response, both global insurers and regional carriers are turning to
consolidation to stabilize operations and improve long-term efficiency.
Global Deal Activity and Trends
Between May and mid-November 2024, the U.S. recorded 307 announced insurance transactions totaling more than $20 billion in deal value, according to PwC. The transactions included both strategic acquisitions and private equity–backed rollups, with firms seeking to expand capabilities and improve profitability.
In Europe, cross-border consolidation remains active. A example is Allianz’s €2.5 billion acquisition of Aviva’s operations in Poland and Lithuania, a move that strengthened Allianz’s position in Central and Eastern Europe.
Core Drivers of Consolidation
Multiple structural factors are accelerating M&A in the P&C space. Claims inflation, underwriting volatility, and catastrophe exposure continue to erode margins, making scale and diversification more important. Larger carriers are increasingly able to centralize operations, reduce duplication, and better absorb the rising cost of regulatory compliance, IT investments, and back-office functions.
Stricter solvency and capital requirements are placing added strain on smaller carriers. As Deloitte notes, these regulatory burdens are fueling both defensive and proactive consolidation strategies as firms work to remain competitive.
Digital transformation is another key motivator. Customer expectations around real-time quoting, seamless onboarding, and automated claims handling have grown rapidly, and many firms are opting to acquire digital-first insurers to meet these demands. PwC highlights digital modernization as a core driver behind many recent transactions.
Regional Dynamics
In the United States, M&A activity remains strong among regional carriers and specialty commercial lines, with firms looking to boost distribution reach, operational scale, and digital readiness. Private equity continues to back rollup strategies and investments in niche insurance businesses positioned for growth.
Across Europe, insurers in mature markets such as the UK and Germany are consolidating to navigate economic uncertainty and fund necessary technology upgrades. Regulatory expectations and cost pressures are also accelerating cross-border activity.
In Asia-Pacific, particularly in Southeast Asia and India, M&A is helping smaller insurers enhance their distribution footprint and adopt modern digital infrastructure. The region’s tightening regulatory frameworks and growing insurance penetration continue to attract interest from both domestic and international players.
As climate-related risks grow and operational efficiency becomes increasingly tied to digital maturity, P&C consolidation is expected to remain elevated. The focus is shifting from pure scale to strategic acquisitions that build resilience, expand specialty capabilities, and modernize operations for a more volatile risk environment.
Reinsurance: Strategic Consolidation and Capital Optimization
M&A activity in the reinsurance sector is accelerating as firms look to improve capital efficiency and strengthen resilience amid rising volatility. In a recent industry poll, 49% of reinsurance executives identified strategic consolidation as the leading M&A driver heading into 2025—well ahead of private equity interest and technology investment, according to Reinsurance News. The shift reflects a heightened focus on scale, diversification, and balance sheet flexibility in a risk environment shaped by climate shocks, inflation, and geopolitical uncertainty.
Private equity is playing a growing role in the sector. In late 2024, MetLife and General Atlantic launched Chariot Reinsurance, a Bermuda-based reinsurer backed by $2 billion in capital. The venture illustrates how institutional investors are targeting reinsurance platforms with long-term return potential and crossborder scalability.
Reinsurance transactions are also being used as tools for broader corporate strategy. In one example, Equitable Holdings reinsured 75% of its in-force individual life business with RGA, unlocking capital that was then used to increase its stake in AllianceBernstein. This reflects a shift in how reinsurance is being leveraged—not only to transfer risk but to fund strategic investments and realign capital priorities.
With tighter solvency frameworks, rising catastrophe exposure, and intensifying regulatory oversight, reinsurers are expected to remain active in the M&A space through 2025. Firms that can integrate operations effectively, maintain underwriting discipline, and align capital deployment with long-term goals will be best positioned to navigate the evolving landscape.
Insurtech: Consolidation Under Pressure
The insurtech sector is entering a new phase—one shaped more by consolidation than disruption. As funding tightens and valuations reset, many startups are turning to mergers and acquisitions as either a strategic route to scale or a necessary response to operational strain.
Much of this activity is being driven by traditional insurers. Instead of building digital capabilities internally, firms are acquiring companies specializing in AI-powered risk assessment, embedded insurance, and digital distribution platforms—areas increasingly prioritized in deal strategies. These acquisitions also bring in agile teams and innovation-focused cultures that can accelerate transformation across the enterprise.
Regulatory complexity is another mounting challenge. Requirements around onboarding, claims transparency, and data governance are difficult for under-resourced startups to manage. One M&A outlook highlights how these pressures are encouraging smaller firms to seek the infrastructure advantages of larger, more established carriers.
Tightening capital requirements are also raising the bar for independent operation. Many early-stage insurtechs, built on lean business models, are struggling to meet emerging solvency standards. The same report points to consolidation as a necessary path for firms that cannot meet regulatory thresholds on their own.
Despite these constraints, investor appetite remains strong. Recent deal analysis shows that private equity and institutional investors continue to pursue later-stage insurtechs that offer recurring revenue models, scalable platforms, and room for expansion. These investors are increasingly facilitating consolidation in ways that preserve innovation while strengthening operational discipline.
Rather than signaling decline, the current wave of insurtech M&A points to a sector that is maturing. With digital infrastructure now essential to product delivery and customer engagement, consolidation is becoming a primary mechanism for scaling innovation while ensuring long-term sustainability.
Universal Drivers: What’s Powering the Global Insurance M&A Boom?
While each segment of the insurance industry faces distinct challenges, the underlying forces pushing M&A activity are becoming increasingly consistent across Life & Health, P&C, Reinsurance, and Insurtech.
Technology modernization remains one of the most significant drivers. The need to digitize underwriting, customer engagement, and claims operations has become urgent. Many firms are choosing to acquire capabilities—particularly in automation, AIbased risk modeling, and user-facing applications—rather than build them from the ground up. This approach is reinforced in global M&A trend reports that highlight how technology remains a top priority for dealmakers across the industry.
Regulatory complexity is also playing a major role. Evolving requirements around data privacy, product transparency, conduct standards, and reporting are placing disproportionate strain on smaller insurers. These obligations demand significant investments in governance, legal, and compliance infrastructure—resources that are more readily absorbed at scale. As noted in a recent insurance M&A outlook, consolidation is offering firms a path to streamline oversight, centralize compliance functions, and reduce the per-unit cost of regulatory obligations.
Capital pressures continue to drive consolidation. Rising claims, inflation-linked reserves, and low investment returns are compressing margins across the industry. For firms with limited capital buffers, M&A has become a tool to strengthen balance sheets, meet solvency benchmarks, and achieve more efficient capital allocation. Recent deal analysis points to a growing link between deal activity and the pursuit of stronger return profiles and long-term financial sustainability.
Private equity is also influencing activity across multiple segments. In reinsurance, brokerage, and insurtech, financial sponsors are playing a larger role by backing rollups, funding business expansion, and driving deal structuring. Investors are particularly drawn to companies with recurring revenues, scalable models, and clear paths to operational improvement. As highlighted in recent insurance deal outlooks, this capital influx is accelerating consolidation while professionalizing operations in high-growth areas.
Geographic diversification is another factor driving cross-border M&A. In regions such as Southeast Asia, Latin America, and parts of Africa, low insurance penetration and a growing middle class are creating new growth opportunities. Acquisitions in these markets allow global insurers to hedge against stagnation at home while building more balanced portfolios.
Customer expectations are also reshaping strategies. Policyholders increasingly expect personalized coverage, flexible product delivery, and seamless digital interactions. Acquiring ready-built digital solutions—rather than investing years into internal development— has become a more immediate route to meeting these expectations and staying competitive.
Together, these factors are reshaping M&A from a scale-driven tactic into a broader response to systemic industry change. As digital transformation, regulatory evolution, and capital efficiency reshape the operating environment, insurers are using M&A to reposition themselves—both operationally and strategically—for the road ahead.
Consolidation as Strategy, Not Just Scale
Across Life & Health, P&C, Reinsurance, and Insurtech, consolidation is no longer driven solely by the pursuit of scale. Insurers are using M&A to expand their capabilities, strengthen digital infrastructure, diversify risk, and improve financial resilience. The most effective acquirers will be those that can integrate operations smoothly, manage regulatory demands, and adapt offerings to meet changing customer expectations. Rather than a signal of market contraction, today’s deal activity reflects an industry repositioning itself for long-term competitiveness in an evolving global environment.
Burnout is no longer treated as a personal failing—it’s recognized as an organizational problem. Defined by the World Health Organization as a syndrome resulting from chronic workplace stress that has not been successfully managed, burnout is characterized by exhaustion, increased mental distance from one’s job, and reduced professional efficacy.
priorities. But integration isn’t a cure-all. Without clear organizational support, it can blur lines to the point where work expands into every part of the day.
According to McKinsey, employees today are not just seeking better compensation or flexibility—they’re rethinking the role of work in their lives. Many are looking for employers who prioritize psychological safety, autonomy, and purpose. When these values are missing, burnout risks rise—even in hybrid or flexible roles.
In Gallup’s 2023 workplace report, 44% of employees globally reported feeling stressed during much of the previous day—the highest level Gallup has recorded. These numbers are prompting companies to reexamine how work is structured and whether current approaches to flexibility and wellness are addressing the root causes.
Burnout isn’t solely the result of long hours—it’s driven by unclear expectations, unsustainable workloads, and the erosion of boundaries between work and personal life. For organizations aiming to improve retention and performance, surface-level perks are no longer enough. Structural change is on the table.
Redefining Work-Life Balance
The idea of “work-life balance” once implied a clean separation: work stayed at the office, and personal life began after hours. But in an era of remote access, global teams, and round-theclock connectivity, that division no longer reflects how most professionals live and work.
Many now favor the concept of work-life integration, which focuses less on rigid boundaries and more on fluidity—allowing people to manage responsibilities in ways that align with their rhythms and
True balance, then, is less about time management and more about system design. Organizations must shift from offering isolated perks to building work cultures that respect personal time, clarify expectations, and model sustainable work habits from the top down.
Structural Causes of Burnout
Burnout is often attributed to personal stress or poor time management, but its roots are usually organizational. According to McKinsey, one of the most pervasive drivers is the “always-on” culture—where employees feel compelled to be constantly available, regardless of time zones or working hours. This environment erodes boundaries and makes recovery time nearly impossible.
A second driver is lack of clarity. Gartner research shows that unclear priorities and shifting expectations can lead to role ambiguity, one of the strongest predictors of burnout. When employees don't know which tasks matter most, they often try to do everything—leading to overload and frustration.
Finally, autonomy plays a critical role. The American Psychological
Association has found that when employees feel they lack control over their schedules, decisions, or workflow, burnout risk increases significantly. Without the ability to influence how their work is done, even highly engaged employees may become disengaged over time.
These are not individual failings—they are signs of systems that need redesign. Addressing burnout requires identifying and correcting the internal pressures that undermine focus, clarity, and agency.
stress and improve focus. As The New York Times reports, async models can be especially beneficial for teams spread across time zones or with differing work styles.
For employees in high-intensity roles, extended time away from work may be more effective than intermittent breaks. Wellness sabbaticals structured periods of paid leave focused on mental and physical recovery—are being adopted by a small but growing number of firms. Unlike traditional leave, these programs are designed specifically to prevent burnout and support long-term retention.
What’s Actually Working
While many organizations have responded to burnout with wellness apps, mental health webinars, or occasional “no meeting” days, research shows these one-off solutions rarely address the root causes. Sustainable improvement requires rethinking work systems and workflows—starting with time, communication, and rest.
One approach gaining traction is the four-day workweek. A 2024 global pilot involving 61 companies found that shorter weeks led to increased employee well-being, reduced burnout, and sustained or even improved productivity over a 12-month period. Importantly, 100% of participating organizations chose to continue the policy in some form after the pilot ended.
Asynchronous communication is another effective strategy. Rather than defaulting to meetings or real-time messaging, some remote and hybrid teams are shifting to tools that allow people to respond on their own schedules. This method, which avoids the pressure to be constantly available, has been shown to reduce
What these solutions have in common is that they move beyond symbolic gestures. They reflect a broader rethinking of team operations and recovery priorities.
What Leaders Can Do
Addressing burnout requires more than individual resilience—it demands leadership accountability. While wellness programs may offer temporary relief, lasting change comes from how work is designed, managed, and supported from the top.
One practical step is conducting a workload audit. By assessing which teams or individuals are overextended, organizations can identify imbalances, set realistic goals, and reallocate responsibilities before burnout takes hold. This kind of structured review can also uncover inefficiencies and clarify priorities, helping teams focus on high-value work.
Recovery time is equally essential. According to the American Psychological Association, employees need uninterrupted time to
recharge—whether between meetings, at the end of the day, or through scheduled breaks. Leaders set the tone by respecting this time themselves and building space for recovery into the workflow.
Setting and modeling boundaries is another key responsibility. When leaders respond to messages late at night or praise excessive availability, it normalizes overwork. By clearly defining working hours, minimizing after-hours expectations, and encouraging focused time, leaders can create a culture where sustainable productivity is the norm—not the exception.
Ultimately, preventing burnout is not about doing more for employees—it’s about removing the barriers that keep them from doing their best work. Leaders who prioritize clarity, recovery, and autonomy are more likely to build resilient teams and highperforming organizations.
What Employees Can Do
While systemic change is essential, employees also have options for protecting their well-being—especially when structural support is still evolving. One of the most effective steps is clarifying workload expectations. This can involve documenting responsibilities, proactively discussing priorities with a manager, or raising concerns about conflicting demands early. These small actions can reduce ambiguity and help prevent overextension.
Setting boundaries is another critical practice. That might include turning off notifications after work hours, blocking out focus time, or clearly communicating one’s availability. Boundaries don’t need to be rigid, but they do need to be intentional and consistently resinforced.
Recovery habits also play a role. Even short, uninterrupted breaks throughout the day—stepping away from a screen, going outside, or eating lunch without multitasking—can significantly improve cognitive focus and lower stress. According to the American Psychological Association, regular recovery time is essential for maintaining energy and preventing burnout.
While employees can't change workplace culture alone, they can support healthier norms through their own habits and conversations. Combined with structural changes from leadership, these efforts can contribute to more sustainable work environments.
Toward More Sustainable Work
Burnout is not a temporary hurdle—it’s a reflection of how work is structured, led, and experienced. Addressing it requires more than perks or time-off policies. It calls for intentional leadership, thoughtful system design, and a culture that values recovery as much as performance. As organizations continue adapting to new expectations around flexibility, autonomy, and well-being, the most effective strategies will be those that balance business goals with human sustainability. The opportunity is clear: when work supports people, performance follows.
Green Business Trends: How Companies Are Achieving Carbon Neutrality
The race to carbon neutrality has become more than just a corporate buzzword—it’s now a business imperative. As we move through 2025, businesses worldwide are integrating climatefocused strategies into their operations, not only to comply with evolving regulations but also to meet the expectations of consumers and investors. Companies that take action now are positioning themselves for long-term resilience, competitive advantage, and alignment with global sustainability goals.
Understanding Carbon Neutrality
Before exploring the latest business trends, it’s important to define carbon neutrality and how companies achieve it. A business reaches carbon-neutral status (or net-zero carbon emissions) when the total amount of greenhouse gases it releases into the atmosphere is effectively canceled out. This can be done in two ways:
1. Direct Reduction: Lowering carbon emissions by improving operational efficiency, adopting cleaner energy sources, and optimizing supply chains.
2. Carbon Offsetting: Compensating for unavoidable emissions by investing in verified carbon reduction initiatives, such as reforestation, renewable energy, or carbon capture technologies.
Think of it like a bank account: emissions are withdrawals, while reduction efforts and offsets act as deposits. Carbon neutrality is achieved when these balance to zero.
Achieving carbon neutrality requires a structured approach, and the ISO 14068-1:2023 standard provides a widely accepted framework for organizations looking to reach this goal (ISO 14068-1). This approach includes:
• Measuring emissions: Accurately quantify greenhouse gas emissions across operations and supply chains to establish a baseline.
• Reducing emissions: Implement strategies to lower emissions through operational efficiencies, renewable energy adoption, and technological innovation.
• Offsetting residual emissions: Invest in verified carbon offset projects to neutralize any unavoidable emissions.
• Transparent reporting: Regularly disclose progress and methodologies to stakeholders, ensuring accountability and credibility.
By following these steps, businesses can align their sustainability efforts with globally recognized standards and demonstrate a real commitment to carbon neutrality.
The Shifting Landscape of Corporate Sustainability
The corporate world is experiencing a f shift in how businesses approach sustainability. According to the Science Based Targets initiative (SBTi), thousands of companies are now aligning their emission reduction goals with climate science, moving beyond incremental changes to fully rethinking their operations..
This shift isn’t just about installing solar panels or switching to LED lighting—it’s about integrating long-term climate strategies into business models. Leading corporations are setting new benchmarks:
• Google aims to achieve net-zero emissions across all operations and its value chain by 2030, with a plan to cut absolute emissions by 50% (from 2019 levels) and invest in nature-based and technology-based carbon removal solutions to offset the remainder.
• Microsoft has committed to becoming carbon negative by 2030 and plans to remove all historical carbon emissions since its founding by 2050.
These ambitious commitments signal a broader trend where corporate sustainability is no longer optional—it’s becoming an industry standard.
Key Strategies for Achieving Carbon Neutrality
Companies are adopting a variety of strategies to achieve carbon neutrality, focusing on both reducing emissions and improving efficiency across operations.
Energy Efficiency and Renewable Power
One of the most effective ways to cut emissions is by optimizing energy consumption. Businesses are integrating renewable energy sources and energy-efficient technologies to lower their carbon footprint. According to Eurofins' sustainability report, companies are combining direct emission reductions with compensation strategies to reach carbon neutrality.
Supply Chain Transformation
A company’s supply chain often accounts for the largest share of its carbon footprint. To address this, businesses are re-evaluating suppliers, logistics, and materials sourcing. For example, Amazon's climate pledge commits to net-zero emissions by 2040, with a strong focus on supply chain decarbonization and sustainability improvements.
Circular Economy Initiatives
The circular economy—which prioritizes recycling, reuse, and waste reduction—is becoming a key strategy for carbon-neutral operations. Federal International reports more companies are embracing circular business models, ensuring transparent sourcing and sustainable production to minimize environmental impact.
Innovative Technologies Driving Change
Several emerging technologies are playing a crucial role in helping businesses achieve carbon neutrality by improving efficiency, capturing emissions, and transforming energy use.
Carbon Capture and Storage (CCS)
One of the most promising solutions for reducing industrial emissions, Carbon Capture and Storage (CCS) removes CO directly from power plants and factories before it enters the atmosphere. The Petra Nova project in Texas has been a key example of how CCS can be implemented successfully at scale. As adoption grows, CCS is expected to play a critical role in decarbonizing heavy industries.
Green Hydrogen
Hydrogen produced using renewable energy (green hydrogen) is emerging as a game-changer for industries that rely on fossil fuels, such as steelmaking and long-haul transportation. JPMorgan, reports that Europe’s first industrial-scale green hydrogen plants are expected to launch in 2025, marking a major step toward decarbonizing global energy systems.
AI and Digital Solutions
Advances in artificial intelligence (AI), data analytics, and automation are enhancing sustainability efforts across industries. Emerald Ventures' climate tech trends report highlights how AI-driven carbon tracking, industrial robotics, and predictive analytics are enabling businesses to measure and reduce emissions more effectively.
Measuring and Reporting Progress
Standardized reporting and verification are crucial for ensuring that carbon neutrality claims are credible and measurable. The
introduction of ISO 14068-1:2023, the first global carbon neutrality standard, is set to transform how businesses track and validate their emission reductions.
This standard supersedes the previous PAS 2060 specification, introducing more rigorous requirements for verification and reporting. By adopting ISO 14068-1:2023, companies can ensure transparency, credibility, and accountability in their net-zero strategies.
Challenges and Solutions
While many companies are making significant progress toward carbon neutrality, several key challenges remain:
Cost Considerations
Transitioning to carbon-neutral operations requires significant upfront investments in renewable energy, energy-efficient infrastructure, and emissions-reduction technologies. However, companies like Signify (formerly Philips Lighting) have shown that sustainability initiatives can drive long-term cost savings and increase market competitiveness by reducing operational expenses and attracting eco-conscious consumers.
Technical Complexity
Measuring and reducing emissions—particularly across complex global supply chains—presents technical and logistical challenges. Organizations must accurately track emissions across Scope 1,
2, and 3 to meet global reporting standards. The Change Climate Project has supported over 300 companies by providing standardized frameworks and best practices to streamline this process.
Offsetting Controversies
While carbon offsets are widely used to balance unavoidable emissions, critics argue that they should not replace direct emission reductions. Companies are responding by prioritizing internal decarbonization efforts before turning to third-party verified offset projects. Carbon Credit Capital highlights how industry leaders are using high-quality offsets alongside meaningful emissions reductions to achieve net-zero goals.
Looking Forward
The momentum behind corporate carbon neutrality is accelerating, driven by key factors shaping the global business landscape:
• Stricter regulations and expanded reporting requirements
• Investor and stakeholder pressure to adopt credible climate strategies
• Growing consumer demand for sustainable brands and ethical business practices
• Competitive advantages in cost efficiency, innovation, and longterm resilience
Companies that proactively embrace carbon neutrality will position themselves as industry leaders, attracting investors, customers, and business partners who prioritize sustainability.
The transition to a low-carbon economy is no longer a distant goal—it is already underway. As we move through 2025 and beyond, businesses are not just making climate pledges—they are implementing real, measurable solutions to reduce their carbon footprints. Achieving carbon neutrality requires technological innovation, long-term planning, and a genuine commitment to environmental responsibility.
For organizations yet to start their journey, the message is clear: The time to act is now. With proven strategies, advanced technologies, and a growing economic case for sustainability, the question is no longer if companies should go carbon-neutral—but how fast they can get there.
How Fintech Startups Are Restructuring to Survive the 2025 Funding Crunch
In 2021 and 2022, fintech startups seemed unstoppable—venture capital poured in, valuations soared, and the mantra was “growth at all costs.” By 2025, however, the landscape has shifted. According to CB Insights, fintech funding fell 25% quarter-overquarter to $7.3 billion in Q3 2024, marking a sharp correction. While there was a modest 17% rebound by year-end, as reported by KPMG, early and mid-stage companies still face a dramatically tougher environment.
With venture capital more selective and terms less favorable, fintech founders are shifting away from the old playbook. Survival now requires lean operations, sharp focus, and the ability to make every dollar count.
The New Reality: Leaner Capital, Tougher Terms
The squeeze isn’t just about fewer deals—investors are now treating burn rates, revenue models, and margins with far greater scrutiny, according to S&P Global. Funding terms have become more conservative, with VCs increasingly favoring mature, latestage companies over new entrants. Meanwhile, early-stage startups are being forced to raise capital through bootstrapping and alternative methods—including peer-to-peer lending, revenuebased financing, and other non-dilutive arrangements highlighted by Qubit Capital
Survival Mode: How Startups Are Restructuring Cutting Costs with Precision
Widespread layoffs have become a defining characteristic of the fintech reset. More than 95,000 tech workers were laid off in 2024, according to Crunchbase News, and the trend continues into 2025. Yet shrinking the workforce is only part of the cost-cutting strategy.
Startups are also renegotiating vendor contracts, eliminating nonessential perks, and downsizing or consolidating office footprints. Some—like neobank Monzo—have even phased out experimental product lines that failed to deliver results.
Founders themselves are tightening the financial belt—accepting salary reductions or restructuring equity to stretch the company’s cash runway. At the leanest, some fintechs have reached what’s known as “ramen profitability”—generating just enough revenue to cover basic expenses and founder living costs while staying afloat without external funding.
Focusing on What Works
Rather than spreading resources too thin, fintechs are returning to their core offerings. According to the SVB Fintech Industry Report,
many are halting international expansion to sharpen their domestic strategies, optimizing their existing product lines and boosting revenueper-user.
This pivot is grounded in fundamentals—fintechs are doubling down on customer retention, reducing churn, and maximizing unit economics. Industry leaders are shifting away from speculative models, choosing instead to prioritize sustainable returns over once-hyped sectors like cryptocurrency and buy-now-pay-later offerings.
Mergers, Acquisitions, and Strategic Acquihires
The funding crunch has led to a wave of consolidation across fintech. Many struggling startups are merging with competitors to pool resources and eliminate redundant expenditures. Some are being acquihired—recruited for their engineering teams or proprietary technology, enabling both talent retention and strategic asset acquisition.
Notably, M&A activity in the payments and infrastructure sectors surged in early 2025. Established banks and incumbent financial institutions are increasingly acquiring fintechs—often at steep discounts—to rapidly access innovative platforms or niche customer segments.
Getting Creative with Funding
With traditional venture capital harder to access, fintech startups are pursuing more flexible, less dilutive alternatives. Revenue-based financing—in which repayments are tied to actual income—is gaining appeal, particularly for companies with recurring revenue streams or predictable cash flow.
Some startups are also striking capital-sharing partnerships with banks or larger fintechs, trading product integration or distribution rights for upfront capital injections. Others are leaning on short-term debt or venture debt, prioritizing cash flow management over fast expansion. In this environment, the prevailing mindset is clear: preserve runway at all costs, even if it means slower growth or tighter margins in the short term.
Automating and Adopting AI
Fintechs are using automation and AI not only to reduce costs—but to enhance intelligence, speed, and compliance. According to Alloy’s 2024 Fintech Fraud & Compliance Report, 92% of fintech companies increased investment in fraud prevention and compliance tools to meet stricter AML/KYC requirements.
Meanwhile, Plaid is integrating machine learning into financial-data infrastructure, enabling fintechs to streamline account verification, risk scoring, and fraud detection while improving scalability and reliability.
By embedding AI-driven compliance flows, onboarding automation, and intelligent customer support, fintechs are equipping lean teams to operate with enterprise-grade efficiency—positioning themselves to scale sustainably even under financial constraints.
Case Study: When Restructuring Works (and When It Doesn’t)
Not every fintech survives the funding squeeze. According to Quiltt, several startups collapsed after expanding too aggressively, neglecting unit economics, or depending on a single capital source—only to run out of runway when the funding environment shifted.
In contrast, companies that weathered the downturn effectively did three things: they cut decisively, refocused on core customers, and prioritized sustainable profitability over chasing growth at any cost.
One illustrative case involved a digital remittance firm that turned to revenue-based financing and scaled back to just two core
markets. The result: reduced burn, healthier margins, and regained investor interest—a strategy profiled in a Qubit Capital analysis of adaptive fintech funding models.
The Road Ahead
While signs of stabilization are emerging, the era of easy money in fintech is firmly over. In its place is a new reality: one that rewards discipline over speed, sustainability over speculation, and resilience over hype.
The startups that will thrive in this environment are not necessarily the most aggressive or well-funded, but those that can adapt quickly, cut intelligently, and deliver measurable value to customers. Whether through lean operations, smarter funding strategies, or embedded automation, these companies are building not just to survive the current cycle—but to emerge from it stronger.
If 2021 and 2022 were about scaling fast, 2025 is about scaling wisely. The result may be a smaller fintech ecosystem—but one that is leaner, more efficient, and ultimately better prepared for long-term success.
From Airtime to Credit Lines
How Telecoms Are Becoming the New Banks
The company that connects your calls might soon be managing your money. Once focused solely on voice and data, telecommunications firms are becoming major players in financial services—offering credit, savings, insurance, and investment tools through mobile platforms. Nowhere is this shift more transformative than in emerging markets, where traditional banking infrastructure often falls short. By leveraging digital reach and vast customer networks, telecoms are stepping into the financial gap— changing how people access and manage their finances, especially in underserved regions.
The Line Is Blurring
Mobile phones were once tools for calls and texts. Today, they’re gateways to financial ecosystems. Mobile money is no longer a niche innovation—it’s a dominant force. There are over 1.1 billion registered mobile money accounts in Africa alone, part of a broader trend reshaping the global financial landscape. Telecom-led platforms process over $1.7 trillion in transactions annually, underscoring their growing role in the global payments ecosystem.
In early 2025, MTN’s Mobile Money (MoMo) service reached 17.4 million active users in Ghana—nearly half the country’s population—demonstrating the scale and speed of adoption. Meanwhile, Orange Bank Africa continues to expand across West Africa , offering a full suite of services from savings accounts to credit facilities, often without a traditional bank branch.
This trend isn't confined to Africa. In the Philippines, GCash, operated by Globe Telecom, has become the country's leading mobile wallet , serving over 94 million users. GCash offers a comprehensive suite of financial services, including payments, savings, credit, insurance, and investments, all accessible via smartphone.
In Brazil, Claro, a major telecommunications operator, has been granted authorization by the Central Bank to operate as a regulated Payment Institution . This approval allows Claro Pay to issue electronic money and act as a Payment Transaction Initiator, enabling users to perform transactions through Pix, pay bills, make ATM withdrawals, and recharge their cell phones.
European telecoms are also entering the financial services arena. Initially launched in France and Spain, Orange Bank has expanded its services to include savings, loans, and insurance products, leveraging its telecom infrastructure to offer seamless digital banking experiences.
Major banks like TD Canada Trust have embraced mobile banking innovations in Canada. The TD app allows users to deposit cheques, transfer funds, and manage accounts directly from their mobile devices, reflecting the broader shift towards digital financial services.
Why Telecoms? Why Now?
Telecommunications companies are uniquely positioned to advance financial inclusion, particularly in regions with limited traditional banking infrastructure. With wide-reaching mobile coverage, agent-based distribution, and deep digital infrastructure, telcos deliver services to segments of the population that banks have long struggled to reach.
In Cambodia, the value of digital payments surged to KHR 2,500 trillion (USD 611 billion) in 2023 , driven by mobile money agents and platforms like Bakong and KHQR. These tools have made digital transactions widely accessible, particularly in areas with limited banking infrastructure.
In Myanmar, services like Wave Money and M-Pitesan have become lifelines for basic financial transactions. Wave Money now reaches over 21 million users—around 38% of the population—with more than 57,000 agents operating in 295 of 330 townships , making it one of the most accessible financial networks in the country.
These examples reflect a broader reality: telecoms are not just well-placed to distribute digital services—they are already doing so, at scale, by leveraging their infrastructure and customer insights. Where banks rely on formal credit checks and branch networks, telecoms use mobile data, airtime behavior, and transaction histories to build inclusive financial products from the ground up.
The Perfect Storm: Why Telecoms Excel at Banking
The rise of telecom-led financial services isn’t just about user volume—it’s about a convergence of infrastructure, regulation, and digital identity that banks often can’t match. According to the GSMA, mobile money services are now available in 98% of countries where fewer than one-third of people have access to traditional banking , underscoring telecoms' role in bridging financial access gaps.
Digital Identity Revolution
The global shift toward mobile-first identity systems has created the foundation for telecom-led financial services. By 2025, more than 6.2 billion digital identity apps are expected to be in use globally, up from just over 1 billion in 2020. This rapid expansion is being driven by government-backed civic identity programs and national digital ID schemes, especially in emerging markets where mobile penetration outpaces access to formal banking infrastructure.
These mobile-based IDs allow individuals to authenticate themselves, open accounts, and access services remotely—eliminating one of the most persistent barriers to financial inclusion. For telecom companies, it means they can onboard users directly via mobile platforms, verify identities securely, and deliver financial products to people who may have never entered a bank branch.
Regulatory Green Lights
One key enabler of telecoms' expansion into financial services has been the evolution of regulatory frameworks. In many low—and middle-income countries, monetary authorities have introduced licensing regimes tailored to non-bank players. These models permit telecom operators to offer money transfers, bill payments, and savings without operating as full-fledged banks.
According to the GSMA’s 2025 State of the Industry Report , regulators in more than 100 markets now permit mobile network operators to deliver mobile money under specialized e-money or payment service provider licenses. These frameworks encourage innovation while maintaining consumer protections through requirements such as transaction limits, capital reserves, and Know Your Customer (KYC) checks.
This regulatory flexibility gives telecoms a significant operational advantage: they can scale financial services quickly using existing distribution channels without incurring the overhead of traditional banking infrastructure or the delays of full banking compliance. The result has been faster product rollout, broader geographic reach, and greater experimentation—particularly in rural or underserved areas.
Infrastructure Advantage
Telecoms enter the financial sector with several built-in advantages that banks can’t easily replicate—starting with reach. Mobile networks extend into remote areas where formal financial institutions have no branches and little incentive to expand. That connectivity has created a platform for inclusive finance, allowing users to transact digitally in places where cash was once the only option. The Telecom Review notes that mobile financial services have transformed how people send money, access services, and pay for goods—especially in rural and low-income communities.
Cost is another factor. Unlike banks, telecoms don’t depend on expensive physical infrastructure. With mobile platforms and agent networks in place, they can deliver services at significantly lower
costs. In fact, mobile banking has proven more cost-effective than traditional banking , particularly in developing countries, where mobile-first models leapfrog legacy financial systems.
Perhaps the most underestimated asset is data. Telecom companies collect rich behavioral data from mobile usage, airtime top-ups, location history, and payment activity. This data isn’t just valuable for product development—it can power alternative credit scoring, tailored services, and digital financial identity. According to a Hilari Publisher study, these networks already enable utility bill payments, tax collection, and social transfers within the same digital ecosystem.
Together, these infrastructure advantages allow telecoms to launch financial services faster and cheaper in places traditional banks often overlook.
In India, Bharti Airtel partnered with Bajaj Finance to deliver a suite of loan products via the Airtel Thanks app, including gold loans, EMI cards, and personal loans. With over 370 million subscribers, Airtel’s distribution network dramatically expands the reach of financial products that were once available only through bank channels.
Across Kenya, Uganda, Nigeria, and Ghana, M-Kopa’s pay-as-you-go financing model lets users purchase smartphones, solar systems, and health insurance through micro-installments. Each on-time payment builds a credit history, enabling access to additional financial products like loans and insurance—delivered entirely through mobile.
The Products Reshaping Finance
These telecom-led offerings mark a shift from access to agency, giving customers not just the ability to store and transfer funds but also to build financial resilience and long-term opportunity.
Telecom companies are increasingly offering financial products that go beyond straightforward mobile wallets. These services— spanning investments, credit, insurance, and savings—are reshaping how users access and grow their money, particularly in emerging markets.
In Kenya, Safaricom partnered with investment firms to launch Ziidi , a money market fund that enables M-PESA users to invest directly from their mobile wallets. With no minimum balance required, the product aims to make investment accessible to first-time and lowerincome users.
In Ethiopia, Ethio Telecom’s Telebirr platform offers interest-bearing savings accounts, microloans of up to 30,000 birr, and salary-based loans of up to 1 million birr. Developed in partnership with Siinqee Bank, the services are fully integrated into the Telebirr mobile app and designed to reach users with limited access to conventional banking.
In Ghana, MTN's QwikLoan service provides instant microloans ranging from GHS 25 to GHS 1,000 with a 30-day repayment period and a competitive interest rate of 6.9% . The service requires no paperwork or collateral, making it particularly accessible to individuals without traditional banking relationships.
Banks: Fight or Partner?
As telecom companies expand deeper into financial services, banks worldwide are confronting a pivotal question: Should they compete—or collaborate? The answer varies by market, but a global pattern is emerging. In some regions, traditional banks are forging alliances with telecoms to extend their reach. In others, banks are launching their own digital offerings—or even retreating as telecoms gain ground.
Collaboration in Africa: Scaling Reach Together
Safaricom’s M-PESA partnered with Abay Bank to enable cash deposits, withdrawals, and seamless transfers between mobile wallets and bank accounts in Ethiopia. The deal positions the bank as a super-agent, helping M-PESA reach customers beyond its mobile-only ecosystem.
Similarly, MTN Group and Ecobank have built a cross-border partnership in several African countries, integrating mobile wallets with formal banking systems and aiming to digitize remittances, savings, and credit services. In both cases, banks gain digital reach, and telcos benefit from deeper financial credibility.
Experimentation in Europe: Mixed Outcomes
In France, telecom giant Orange took a different route by launching a full-scale licensed banking entity—Orange Bank. The service offered current accounts, savings, loans, and 24/7 mobile access and initially attracted millions of users. But profitability proved elusive. After years of losses, Orange began seeking a strategic exit and, in 2023, entered exclusive talks with BNP Paribas. Those talks concluded in 2024 with a formal agreement: Orange Bank's French customers were transitioned to Hello Bank !, BNP’s digital banking arm, while Spanish operations were handed over to Cetelem , BNP Paribas Personal Finance. The move highlighted the cost and compliance challenges of telecombank hybrids in developed markets—and the difficulty of sustaining standalone digital banks without deep financial sector integration.
Strategic Investments in Asia-Pacific
In Australia, the Commonwealth Bank of Australia (CBA) has strategically expanded into telecommunications. In 2021, the bank acquired a 25% stake in Tangerine and More Telecom , two internet providers, as part of a broader “beyond banking” strategy. The move was designed to bundle broadband offers with mortgages and improve customer retention.
In India, partnerships are central. Bharti Airtel has teamed up with Bajaj Finance to offer loans and credit products via its Airtel Thanks app, which blends telco distribution with financial firepower.
Fintechs Flipping the Script in Latin America
The convergence isn’t one-directional. In Brazil, digital lender Nubank has moved into telecom territory. It launched NuCel, a mobile phone service using Claro’s infrastructure. Customers can pay for plans via Nubank credit cards, showing that digital-first banks are starting to view telecom services as customer engagement tools—not just delivery channels.
The Road Ahead
As the distinction between telecoms and financial institutions continues to erode, major development bodies are taking notice. In 2024, the IFC partnered with Orange Bank Africa to expand digital lending across West Africa, underscoring growing institutional confidence in telco-led financial solutions.
But this rapid evolution raises important questions. How can regulators safeguard financial stability while enabling innovation? What happens to traditional banks when financial inclusion is driven by the SIM card, not the branch? How do we ensure these advances serve the tech-savvy and the digitally excluded?
What’s clear is this: the future of banking isn’t just digital—it’s increasingly mobile. And telecom companies aren’t just participants in that future—they’re helping define the next chapter in financial services..
The Next Phase of Financial Connectivity
The next frontier in telecom-led finance is convergence. Imagine your phone plan, savings account, investment portfolio, and insurance—all managed through a single interface. Orange’s “Max it ” super app already points in this direction, serving over 8 million active users across Africa with a bundled telecom and financial services suite.
For traditional banks, the implications are clear: adapt to embedded, mobile-first ecosystems—or risk becoming invisible infrastructure behind more agile players. The question isn’t whether telecoms will reshape banking but how far their reach will extend.
As this shift accelerates, the future of financial services is no longer being built inside bank branches—but within the mobile infrastructure that already connects the world. For billions of people, that may be the most inclusive development yet.
Turning Insight into Impact: Making AI and Analytics Work in Retail Banking
Across industries, organizations are accelerating investments in data analytics and artificial intelligence (AI) to drive performance, elevate customer experience, and sharpen their competitive edge. These technologies promise transformative gains in retail banking—from personalized product offerings to real-time fraud detection. But while modern tools and platforms are indispensable, they represent just one part of the equation. The real differentiator lies in how financial institutions translate insight into action.
Insight Alone Isn’t Enough
I believe we can say that the financial industry is leading the way in generating rich insights from customer data, transactional patterns, or market trends. We are witnessing impressive implementations of AI technology and automation, such as the analysis of transactions within milliseconds to flag suspicious activities before completion, more accurate borrowers’ creditworthiness assessments, and the identification of customers at risk of leaving by analyzing behavioral patterns and transaction histories, just to name a few.
However, there is a risk of falling short when it comes to putting AI-generated insights to work on the ground. Dashboards can go unchecked. Reports can be buried in inboxes. Strategic models can sit disconnected from the frontline.
The result? Analytics potential remains untapped, and AI initiatives under-deliver on their promise.
The challenge is not the lack of data but the lack of operational integration. Insights must be accessible, relevant, and—crucially— embedded into daily workflows. This is where many companies should direct their focus: from building capability to driving adoption.
The Missing Link: Culture and Workflow
Technology alone won’t create change. To truly unlock value from AI and analytics, companies must invest in three critical enablers:
Tool + Workflow Alignment
Analytics tools must integrate seamlessly with everyday systems: CRMs, teller platforms, scheduling apps, and even internal messaging tools. If insights require a separate login, a PDF report, or extra effort to access—they are very unlikely to be used. Embedding insights into the systems employees already use is essential. If the insight isn’t available at the moment a decision is made, it’s a missed opportunity.
Data-Driven Culture
Company staff need to trust and understand the insights they receive. That requires building data literacy across the organization—not just among analysts. When employees see the why behind a recommendation, they are more likely to act on it. A
best practice is conducting regular “analytics clinics” or feedback sessions between data teams and frontline staff to close the loop between model designers and users.
Measurement & Reinforcement
Track not just the output of AI models but the actual usage of insights. Which recommendations are followed? Which are ignored? Why? This feedback loop enables companies to refine both the insights and the way they are delivered. Use behavioral analytics to monitor adoption—and consider gamification or incentives to encourage ongoing engagement.
Operationalizing Analytics: Retail Banking in Action
Here are examples of successful initiatives I came across, bridging the gap between data insight and frontline execution.
Personalized Consumer Engagement at Scale
A European bank launched an AI-driven model to predict which consumers would likely need mortgage refinancing within the next 6 months. These predictions were embedded directly into CRM dashboards used by branch staff and call center agents. The bank saw a significant uplift in conversion on refinance offers. Why? Because staff acted on insights during natural interactions, not after the fact.
AI in the Service of Proactive Retention
A Southeast Asian retail bank deployed a churn prediction model to flag at-risk customers. Instead of limiting access to analysts, results were delivered to relationship managers via daily task lists and suggested actions based on past retention success. The frontline team could now take proactive, personalized steps—from offering better terms to flagging service friction points. The bank reduced customer attrition within one quarter of implementation.
Branch Optimization with Predictive Footfall Analytics
Another large North American bank used predictive analytics to forecast customer traffic by branch, day, and hour. But rather than keeping this insight confined to operations teams, it was shared with branch managers through scheduling tools, enabling smarter shift planning and real-time queue management. This allowed the bank to improve wait times, reduce staffing costs, and enhance the in-branch experience—all from one predictive model made actionable at the local level.
Final Thought: The Power of Embedded Intelligence
In retail banking, the power of AI and analytics doesn’t come from advanced algorithms alone, but from consistent, everyday action. When insights are delivered at the right time, in the right place, and in a format that drives behavior, financial institutions can realize measurable gains in efficiency, customer satisfaction, and profitability.
Simply put: The future of banking belongs not to those who generate the most insights, but to those who use them best.
Joe Myers EVP Global Banking, Diebold Nixdorf
Empowering Tomorrow: Inside Absa’s Digital Vision for a More Inclusive South Africa
Absa Bank Limited, a leading financial institution with a footprint in 12 African countries, is setting the standard for digital banking through a blend of innovation, customer-centric design and purpose-led growth. At the heart of its strategy is a commitment to inclusion, ensuring that banking solutions are accessible, intuitive and aligned with the evolving needs of every South African. To explore how this vision is taking shape, Global Banking & Finance Review spoke with Subash Sharma, Chief Digital Officer at Absa Personal and Private Banking, about the bank’s expanding digital platforms, its culture of innovation, and how technology is being used to unlock opportunities across the country.
“As a forward-looking, digitally-led financial services group, Absa is showcasing how we seamlessly integrate technology and innovation into the lives of our customers across the Continent, at each stage of their respective life journeys,” he began. “We firmly believe in creating opportunities for our customers to help bring their possibilities to life, and empowering them to do more. We are proud to support them by anticipating and satisfying their financial needs through differentiated, innovative propositions and products—from chat banking, powered by artificial intelligence, to contactless payments. As a demonstration of this, we zero in on customer journeys, showing how trusted digital solutions can make getting ahead simpler.”
Subash shared his thoughts on how the South African—and global—financial services market has become crowded over the past years, experiencing a proliferation of many new products and services. “Most are built with convenience, security and innovation in mind and sold as a user-friendly package,” he said. “However, a crowded banking market translates into way too many options and choices that the customer can consume and act upon. To stand out from the rest, we must acknowledge customer expectations of solutions that simplify how, and when, they interact with the institutions they entrust with their finances.
“At Absa, we have brought an extensive digital product portfolio to Africa, including being among the first to fully launch a WhatsApp banking service, as well as Abby, Absa’s chatbot. From vertical cards and contactless payments to biometric apps and seamless business banking platforms, we have a digital financial solution and service offering for every life stage.”
Going forward, he revealed, Absa’s focus remains on fast-lane and relevant innovation, as well as the creation of insight-led, marketaligned initiatives and digital capabilities. “Our customers want real-time, convenient and friendly solutions that underpin a secure and seamless financial lifestyle and first-class experience. Simply put, our digital solutions get things done.
“Digital dexterity among customers is being fast-tracked because of digital transformation. At Absa, we seek to join customers on their dexterity journey by creating a genuine, trusted and functional channel to help them perform transactions anywhere, any time. The aim is to exceed newly developed customer expectations of accessibility, personalisation, real-time help, effortless banking, and customer satisfaction and loyalty.”
Subash explained that, as a digitally powered business, Absa’s group strategy is to deliver a superior digital experience, using data as a strategic asset, continuously evolving its technology architecture, and improving trust and security while operating as a nimble organisation. “We are an active force for good in everything we do, putting our customers first by offering convenient, sustainable, inclusive and worldclass banking solutions,” he said. "Our vision and purpose as a bank are rooted in empowering the tomorrows of our customers, one story at a time. By enhancing access to banking services digitally, we are not only unlocking a gateway to new possibilities for all consumers, but also affirming our commitment to improved access to digital payments for customers from all walks of life and strengthening financial inclusion, as set out in our ESG commitment.
"This vision shapes everything we do, from empowering communities to caring for the planet," he added. "It reflects our dedication to fostering financial inclusion, promoting diversity and inclusion, and driving climate action—all underpinned by strong governance.”
Since introducing South Africa’s first internet banking platform in 1994, Absa has demonstrated a relentless commitment to pioneering digital solutions that enhance convenience, safety and customer-centricity. It was the first to launch WhatsApp ChatBanking in 2018, Apple Pay in 2021 and Mobile Pay in 2022, meeting changing customer needs head-on by turning smartphones into point-of-sale devices. “We have transformed digital banking by prioritising seamless customer experiences and robust security measures, ensuring safe and trusted transactions,” Subash reported. “Our innovations, including the awardwinning virtual assistant Abby and the recent Absa Pay solution, highlight how convenience is matched with cutting-edge fraud protection.”
An equally important component of Absa’s strategy is its dedication to inclusivity, Subash noted, as evidenced by the design of digital services that cater to diverse customer needs and support vulnerable users, making banking accessible to all. “This milestone reflects Absa’s leadership in delivering secure, easy, inclusive digital banking across Africa,” he said. “Customer-centric innovation has been central to our 25-year digital journey because it ensures that all digital solutions are designed around the real needs, preferences and life journeys of our customers. At Absa, we place the customer at the heart of our digital strategy, focusing on creating intuitive, accessible and inclusive products that empower our customers at every stage of their financial lives, from AI-powered chat banking to biometric security and instant digital onboarding.”
This approach has driven strong digital adoption and loyalty with innovations shaped by extensive customer insights and continuous co-creation, with a view to implementing technology to enhance the banking experience rather than complicate it. “By balancing cuttingedge functionality with empathy and ease of use, we have built trust and relevance, making customer-centricity the cornerstone of our sustained digital leadership and growth,” Subash asserted. “This 25-year journey reflects Absa’s leadership in transforming banking through agility, collaboration and relentless innovation, always putting the customer’s unique story at the heart of their digital evolution.”
With digital transformation comes immense opportunity—but also heightened responsibility. Ever-present issues such as cybersecurity and data privacy ensure that managing risk needs to remain a priority for an organisation such as Absa that has embraced digital innovation as an essential part of its strategy. Subash highlighted the importance of Absa’s technological advancements being as secure as they are cutting-edge. “As financial services evolve in an increasingly digital world, we have implemented robust measures to manage the risks associated with cybersecurity, data privacy and long-term platform resilience,” he confirmed. “Cybersecurity remains a top priority for us, given the growing sophistication of cyber threats. At Absa, we employ advanced security protocols, including multi-layered encryption, AI-driven threat detection, and continuous monitoring to safeguard customer data and financial transactions. By leveraging artificial intelligence and machine learning, we can proactively identify and mitigate potential security breaches before they escalate. Additionally, we collaborate with global cybersecurity experts to stay ahead of emerging threats and ensure compliance with international security standards.
“Data privacy is another critical aspect of our digital strategy,” he continued. “Absa adheres to stringent regulatory frameworks, such as the POPIA (Protection of Personal Information Act) in South Africa, to ensure that customer data is handled with the highest level of confidentiality. We have implemented secure data storage solutions and strict access controls, allowing our customers to have greater transparency and control over their personal information. Furthermore, we educate our customers on best practices for digital security, empowering them to protect their data while engaging with online banking services.”
As an essential ingredient of sustainable digital innovation, long-term platform resilience requires both prudence and investment. Absa opts for scalable cloud-based infrastructure and agile development methodologies to ensure its digital platforms remain robust and adaptable. “By continuously upgrading our systems and integrating emerging technologies, we enhance operational efficiency while maintaining seamless customer experiences,” Subash said. “At Absa, our commitment to resilience is further reinforced through rigorous stress testing and contingency planning, ensuring that our digital ecosystem can withstand disruptions and continue to deliver reliable financial services.”
These comprehensive strategies, he pointed out, demonstrate Absa’s dedication to balancing innovation with security, providing customers with a safe and efficient digital banking experience. “As the financial landscape continues to evolve, Absa remains at the forefront of digital transformation, setting industry benchmarks for cybersecurity, data privacy and platform resilience.”
The Chief Data Officer went on to note the speed at which customer expectations evolve in financial services and the digital space, and discussed how Absa incorporates customer insights into its digital offering. “To stay ahead, we integrate direct customer feedback and behavioural data into the development of our digital platforms, ensuring a seamless and responsive banking experience,” he said.
“We place a strong emphasis on the voice of the customer to shape our digital strategy, ensuring that our platforms and services align with evolving customer needs and expectations. Through initiatives like ‘Your Story Matters,’ Absa has reinforced our commitment to human-centred banking, actively listening to customer experiences and integrating their feedback into decision-making processes.”
Subash also acknowledged the significance of customer feedback to Absa’s in-house, customer-centric design capability. “We employ a dedicated team of design researchers, experience engineers and UX/UI specialists who analyse customer interactions and preferences to refine digital offerings. This unique approach ensures that our platforms are intuitive, seamless and responsive to customer needs.”
Real-time social media monitoring and engagement have provided additional sources of customer insight. “By leveraging advanced analytics tools, we identify trends in customer sentiment and prioritise the most pressing concerns. This approach allows us to refine our digital services based on actual user experiences, ensuring that improvements align with customer needs. Additionally, we employ AI-driven customer service solutions to enhance response times and optimise interactions, making digital banking more intuitive and efficient.”
Beyond social media, incorporating behavioural data from its digital platforms allows Absa to refine user experiences. “Absa’s customer-centric design philosophy ensures that digital offerings are shaped by actual usage patterns and preferences,” Subash explained. “By analysing how customers interact with our platforms, we can make data-driven decisions to enhance functionality, streamline processes and introduce innovative
features that align with evolving expectations. This commitment to continuous improvement is evident in our investment in mobile-first solutions, ensuring accessibility and convenience for our customers across various digital touchpoints.”
Through these strategies, and by actively listening to customers and leveraging behavioural insights, Subash posited that Absa not only establishes its platforms as relevant, secure and tailored to modern consumer needs, but also demonstrates a dedication to customerdriven innovation. This also involves ensuring that its digital and traditional banking services remain accessible and relevant to all South Africans. “We are committed to ensuring that our digital and traditional banking services remain accessible, regardless of our customers’ location or financial background,” he stated. “As one of South Africa’s leading financial institutions, we continuously invest in innovative solutions that bridge the gap between digital transformation and inclusive banking.”
In recognising the diverse needs of South African banking customers, Absa has developed a multi-channel approach that integrates digital banking with traditional branch services. “We have expanded our mobile and online banking platforms, offering user-friendly interfaces that cater to both tech-savvy individuals and those new to digital banking,” Subash went on. “At the same time, Absa maintains a strong physical presence across the country, ensuring that our customers who prefer in-person interactions can access financial services conveniently.”
To enhance accessibility, Absa prioritises financial inclusion initiatives that empower underserved communities. As Subash explained, “We actively support small businesses, entrepreneurs and individuals in rural areas by providing tailored financial products and educational programmes. Through partnerships with local organisations, we promote financial literacy and digital banking awareness, equipping customers with the knowledge and tools to navigate modern banking services effectively.
“We also leverage artificial intelligence and data-driven insights to refine our services and improve customer experiences. By analysing customer behaviour and feedback, we continuously adapt our offerings to meet evolving expectations. This approach ensures that our digital banking platforms remain intuitive, secure and aligned with the needs of South African consumers.”
Through these efforts, Absa’s commitment to accessibility, innovation and customer-centric banking is demonstrably clear. “By balancing digital advancements with traditional service excellence, Absa remains a trusted financial partner for all South Africans, driving economic growth and financial empowerment across the nation.”
Through cultivating a robust ecosystem of strategic partnerships, from fintech collaborations to sustainability initiatives, Absa has accelerated its innovation agenda, an approach that has delivered substantial value for its customers. “Our ecosystem of strategic partnerships aims to drive innovation and enhance customer experiences,” Subash revealed. “By working closely with industry leaders, we accelerate digital transformation while ensuring that our services remain relevant, secure andforward-thinking.
“In the fintech space, we collaborate with cutting-edge technology firms to integrate advanced solutions into our banking platforms. These partnerships enable us to leverage artificial intelligence, blockchain and data analytics to streamline operations and improve customer engagement. By co-creating with fintech innovators,
we have the opportunity to enhance our mobile banking experience, optimise payment solutions and introduce personalised financial services tailored to evolving consumer needs.”
Beyond fintech, he acknowledged Absa’s deep commitment to sustainability and the strategic alliances that have been forged to support environmental and social initiatives. “We have recently issued our first green bond, raising ZAR2.6 billion to fund solar and wind renewable energy projects,” he reported. “This initiative aligns with Absa’s broader sustainability strategy, which prioritises responsible finance and long-term environmental impact. Through these efforts, we not only contribute to a greener economy but also ensure that our financial products support sustainable development.”
He went on to provide a recent example of successful co-creation: Absa’s partnership with the IFC (International Finance Corporation) to launch Africa’s first certified green loan. “This collaboration has delivered tangible value by providing businesses with access to sustainable financing, enabling them to invest in environmentally responsible projects. By working alongside global financial institutions, we reinforce our commitment to innovation while driving meaningful change in the banking sector.
“Through these strategic partnerships, we continue to lead in digital transformation and sustainability, ensuring that our customers benefit from cutting-edge financial solutions and responsible banking practices.”
On the horizon are a number of key strategic moves designed to maintain Absa’s leadership in South Africa’s digital banking landscape while enhancing customer experience, security and accessibility. Subash concluded the interview by discussing some of the initiatives that motivate him the most as Absa moves forward.
“As digital banking continues to evolve, we are investing in cuttingedge technologies and customer-centric innovations to ensure our digital platforms remain at the forefront of financial services,” he said. “One of our key initiatives is the expansion of AI-driven banking solutions, including our virtual assistant, Abby. This AI-powered chatbot is designed to provide personalised financial guidance, streamline transactions and enhance customer engagement. By integrating machine learning and predictive analytics, we aim to offer a more intuitive and responsive banking experience.”
He revealed that customers can also look forward to enhanced mobile banking features, including seamless payment solutions and real-time fraud detection. “We have recently refined our ChatBanking service with the Absa ChatWallet, which enables customers to perform transactions via WhatsApp, making banking more accessible and convenient.
“Furthermore, we are deepening our commitment to cloud-based infrastructure, ensuring that our digital platforms remain scalable and resilient. By collaborating with leading technology providers, we are optimising our systems for speed, efficiency and security.”
Finally, he disclosed what excites him most about the future of Absa Bank: “To see our customers revel and grow with us on our 25th digital banking anniversary. As mentioned, experiencing how our digital offering enhances rather than complicates the banking experience of our customers proves that our strategy is paying off. Through these strategic moves, we continue to set the benchmark for digital banking in South Africa, and our customers can expect a future of even more seamless, secure and innovative banking experiences that cater to their financial needs as they evolve.”
Subash Sharma, Chief Digital Officer at Absa Personal and Private Banking
Scaling Generative AI: From Pilot Projects to Enterprise Integration
As generative AI capabilities continue to advance, more enterprises are shifting from small-scale pilots to broader operational deployment. Adoption is driven less by novelty and more by the value these tools offer in specific tasks—like reducing repetitive administrative work, assisting with documentation, and improving access to relevant information. The focus is now on how generative models can be integrated into existing systems, support day-to-day operations, and help teams work more efficiently within established workflows.
The Current State of Enterprise AI Adoption
Recent data from Blue Prism shows that nearly a third of global IT leaders are currently using AI systems in operations, with 44% planning to adopt generative models within the year. These systems often include document processing, conversational automation, and workflow augmentation, making them relevant across various industries. This change signals that many organizations are beginning to treat generative AI as a routine part of their software environment rather than an isolated experiment. Use is expanding beyond innovation labs to more common applications like document handling, reporting, and internal communications.
At the same time, research from McKinsey indicates a shift in workforce readiness. Adoption patterns differ based on company size, infrastructure readiness, and industry demands. Larger organizations that already have strong digital systems in place are generally progressing more quickly. This is especially true in fields like banking, insurance, and healthcare, where repetitive documentbased tasks provide a clear starting point for applying generative tools. Meanwhile, mid-sized firms are increasingly turning to generative AI via third-party platforms or embedded services rather than building custom models in-house. Regional adoption is shaped by regulatory clarity, data localization requirements, and access to skilled technical talent. Despite these differences, a common trend is the move from isolated experimentation toward more coordinated, business-aligned implementation efforts. Employees are increasingly prepared to use AI applications as part of their daily responsibilities, and comfort with these tools continues to grow as training improves and roles become more clearly defined. This growing comfort is supported by improved training resources, clearer usage guidance, and simpler interfaces that help teams better understand how the tools support their daily work.
Generative AI in Financial Services: Evolving Applications
Banks are beginning to expand beyond early testing, incorporating generative systems into day-to-day activities such as reporting, communication, and onboarding processes. JPMorgan Chase has rolled out a proprietary LLM-based suite to approximately 200,000 employees, enabling teams to summarize reports, draft client materials, and retrieve insights more efficiently. Adoption has expanded across multiple departments, including wealth management and investment banking, as internal teams recognize productivity gains.
In the UK, NatWest has partnered with OpenAI to upgrade its customerfacing and staff-facing virtual assistants—Cora and AskArchie—using large language models. The initiative has led to a reported 150% increase in customer satisfaction and helped reduce the burden on fraud prevention teams.
Meanwhile, IBM and AWS are helping banks improve know-your-customer (KYC) and onboarding procedures by combining document analysis, compliance checks, and automated data extraction. These systems aim to reduce onboarding timelines and allow analysts to focus on oversight rather than manual entry.
These examples show how financial institutions are transitioning from isolated experiments to enterprise-level use of generative AI—embedding it in tools that directly impact customer service, risk management, and internal operations.
From Pilots to Production: Building Blocks of Enterprise Integration
Pilot Projects as Testing Grounds
Organizations often begin by applying generative tools to a single task, like summarizing reports, drafting onboarding documents, or reviewing structured data. These early efforts help teams evaluate how the system performs in practice and identify where adjustments are needed to fit existing workflows. According to JK Tech, organizations benefit most when these efforts are linked to measurable KPIs—such as process speed, accuracy, or cost efficiency—rather than general innovation targets.
Laying the Groundwork
To scale generative tools effectively, organizations need to align business priorities with system readiness and staff capabilities. Organizations should start by identifying specific goals and evaluating their systems to ensure they are prepared for broader use, according to Deloitte. This involves assessing cloud infrastructure, reviewing how data is managed, and
ensuring teams are equipped to handle issues that could affect day-to-day operations.
Key performance indicators (KPIs) for scaling typically focus on measurable improvements across operations. These include reducing task completion times—such as for claims processing or report drafting—and maintaining output quality that is consistent with results typically delivered by human staff. Many organizations also track how much manual effort has been reduced, along with internal user feedback on the usefulness and reliability of AIassisted workflows. Additional metrics often include reductions in errors found in regulatory documentation and the speed at which business value is achieved following pilot deployment. By tracking these outcomes, organizations can determine whether scaling initiatives are delivering meaningful, sustained results.
Challenges to Scaling: Governance, Integration, and Readiness
Data Governance and Privacy
One of the main challenges for many organizations is ensuring the data used with generative systems is accurate, well-organized, and consistently labeled. Using standardized data inputs is especially important when generative tools support customer-facing tasks or regulatory reporting. When working with older systems, inconsistencies or limited access controls can complicate efforts to automate these processes. These concerns are discussed in recent research focused on data quality and system integration. Organizations must also consider how AI-generated outputs align with internal data retention, audit, and compliance protocols.
Technology Integration
Connecting generative models to existing software environments remains a substantial challenge. S-Pro’s case studies show that siloed applications, custom APIs, and rigid middleware often slow or block integration entirely. When models are retrained or revised, it's important to keep track of changes, maintain backup versions, and monitor how these updates affect performance across connected systems.
Organizational Readiness
Employee roles may shift as generative systems take on routine or semi-creative tasks. Without clear planning, these changes can lead to uncertainty or disengagement. Gartner recommends that enterprises define how tasks will change—and which new competencies will be required—well in advance of deployment. Support structures such as internal working groups, peer learning sessions, and dedicated change teams can mitigate resistance and support adoption.
Managing Models Post-Deployment
Effective model deployment doesn't end with implementation.
Generative systems need active monitoring, maintenance, and documentation throughout their lifecycle. As user inputs evolve and business priorities shift, organizations must be prepared to evaluate how model behavior changes over time.
Many enterprises are adopting structured MLOps (Machine Learning Operations) practices. This can include retraining models based on new data, testing outputs after system updates, keeping track of version histories, and building clear rollback procedures in case of performance issues. Without these controls in place, even well-performing models can degrade or produce inconsistent outputs at scale.
Equally important is documentation. Organizations need to track when and why updates occur, who approves changes, and how system behavior is validated. These practices support audit readiness, promote transparency, and reduce business risk.
Managing these tools after deployment isn’t just a technical responsibility. Teams that oversee data quality, compliance, and daily operations all play a role in keeping systems effective
and aligned with business needs. Coordination across these groups helps organizations maintain oversight, respond to issues quickly, and stay compliant as models evolve.
Recommendations for Implementation
Governance First
A structured governance framework should define responsibilities, model documentation standards, review cycles, and evaluation metrics. A study in Policy and Society (Oxford Academic) supports formalizing processes such as model validation, access control, and compliance with emerging AI-specific legislation. Organizations should also establish escalation paths for unintended model behaviors or bias issues.
Beyond compliance, organizations must address broader ethical questions: how decisions are explained, what bias may be introduced, and whether users know when content is AIgenerated. Explainability standards and third-party audits are becoming common in sectors like banking, where accountability is required by law.
Invest in Infrastructure
Long-term success depends on stable systems that support growth. McKinsey notes that strong data lineage, modular architecture, and transparent logs are now essential elements of AI infrastructure. With enterprise models requiring frequent fine-tuning and updates, systems must remain adaptable without disrupting core operations.
Organizations evaluating external vendors should consider the following:
• Model transparency and explainability tools
• Customization and domain alignment
• Privacy guarantees and contractual data usage limits
• Integration readiness with the existing stack
• Total cost of ownership for API-heavy models
More buyers are requesting documentation such as transparency reports and structured model summaries to evaluate generative AI vendors. One such example is the use of model cards, which provide standardized information on a model’s intended use, limitations, performance metrics, and fairness considerations— helping enterprises make more informed, responsible procurement decisions.
Support Staff Development
Generative AI often affects departments beyond IT—such as compliance, marketing, or customer service. Upskilling across these areas is critical. Gartner recommends creating shared learning platforms and dedicated internal knowledge bases. Establishing a central center of excellence can help consolidate expertise, drive cross-functional alignment, and accelerate implementation cycles.
Next-Generation AI Systems and Architectures
Organizations are increasingly adopting hybrid architectures, blending cloud and edge systems to meet varying compute and latency requirements. According to USAII, enterprises are embedding generative models into core systems such as automated incident response, real-time forecasting, and dynamic content generation.
“Self-healing” infrastructure—a term that refers to systems that detect and correct anomalies without human intervention— is emerging in IT operations and network management. In parallel, federated learning and privacy-preserving AI are gaining traction in industries with strict data protection rules, such as healthcare and finance. These trends reflect a growing maturity in how generative models are implemented— balancing innovation with control.
Turning Tools into Outcomes
Generative AI is no longer experimental—it’s become a core business capability. But success now depends less on technical novelty and more on thoughtful execution: aligning teams, integrating with real workflows, and solving targeted problems.
For financial institutions and global enterprises, the question isn’t whether to scale—but how well their systems, talent, and controls are prepared for it. Sustainable models will extend human decision-making, not replace it, while keeping governance in lockstep with innovation.
In that context, generative AI isn’t just supporting the business—it’s shaping its future.
Supply Chain Sovereignty: Why Businesses Are Localizing Logistics
Supply chain sovereignty is becoming a business imperative. In response to mounting global volatility, companies are reengineering the way goods move, components are sourced, and partners are selected. Efficiency alone no longer defines competitive advantage. In its place: resilience, regional control, and the ability to adapt under pressure.
Once guided by the pursuit of low-cost manufacturing in distant markets, today’s supply chain leaders are investing in proximity, digital intelligence, and supplier diversification. According to Forbes, 68% of executives now rank nearshoring or onshoring as their top supply chain priority. This reversal in strategy has reshaped global logistics in less than five years.
Nearshoring in Focus: A Global Rebalancing
While Mexico has garnered headlines as the nearshoring destination of choice for U.S. firms, similar shifts are occurring around the world. In Central and Eastern Europe, countries such as
Poland, Romania, and the Czech Republic have emerged as logistics powerhouses within the EU, offering regulatory familiarity, workforce scale, and strategic access to consumer markets. According to Real Asset Insight, Poland’s central logistics corridor now enables access to over 200 million EU consumers within a 24-hour delivery window.
In Southeast Asia, manufacturing expansion continues as companies diversify their production networks and tap into growing regional trade ecosystems. Noatum Logistics reports that Vietnam, Thailand, and Malaysia are receiving sustained investment in industrial zones, offering companies an alternative supply base without severing ties to Asia’s core production networks.
Africa, meanwhile, is gaining momentum. Countries like Morocco, Kenya, and Egypt are leveraging the African Continental Free Trade Area (AfCFTA) and investing in special economic zones and port infrastructure to support regional manufacturing capacity. Multinationals increasingly view the continent as both a diversification opportunity and a long-term growth market.
Trade Policy and the Tariff Effect
Tariffs in 2025 are no longer isolated policy moves—they’ve become a defining source of supply chain instability. The problem isn't just that tariffs are rising—it's that no one knows where they’ll land. As of mid-2025, U.S. tariff policy remains in flux, with sweeping duties announced in April still under legal and political challenge. According to Thomson Reuters, this lack of clarity is prompting companies to delay procurement, reroute freight midtransit, and restructure contracts on the fly. One executive noted, “The pandemic taught us we need flexibility, but tariff activity makes us freeze—companies are forced to pause or cancel orders and beg or plead with vendors.”
The result is a deepening reliance on short-term warehousing, diversified sourcing, and real-time trade monitoring. Maersk reports that changing tariff regimes now rank among the top five strategic variables impacting freight and warehousing decisions. While duties may eventually settle, the unpredictability is already reshaping how firms design, finance, and operate their logistics ecosystems.
Resilience by Industry: Tailored Sovereignty Strategies
The imperative to localize is not uniform across sectors—it reflects unique risks, regulations, and technological cycles.
In the pharmaceutical industry, the pandemic exposed the risks of single-source reliance for essential medicines and APIs. Governments are increasingly mandating domestic or regional production for critical drugs, while private sector players are diversifying suppliers to guard against future lockdowns and export bans.
In semiconductors, resilience is now a national and corporate priority. Following recent waves of export controls and chip shortages, billions in private and public investment are being directed toward domestic fab capacity across the U.S., EU, and Asia. Companies are accelerating plans to localize advanced packaging, testing, and fabrication to reduce lead times and insulate themselves from future geopolitical risks. According to Real Asset Insight, new semiconductor corridors in Arizona and Saxony are drawing both supplier ecosystems and trade finance partnerships.
In Europe’s electric vehicle ecosystem, production is shifting closer to end markets. Automotive Logistics reports that battery and component makers are co-locating operations near vehicle assembly plants,
allowing automakers to reduce lead times, comply with new emissions regulations, and simplify reverse logistics for recycling.
Consumer electronics and FMCG sectors are also leaning into regionalization. Brands are investing in regional distribution centers and last-mile fulfillment hubs to reduce delivery times, manage seasonal inventory risk, and improve ESG reporting accuracy.
Banks at the Center of the Resilience Equation
While physical supply networks are evolving, the financial infrastructure behind them is adapting in parallel. Banks are playing a pivotal role in enabling supply chain transformation— through trade finance, risk management tools, and sustainabilitylinked lending.
The 2025 FIS Benchmark Report notes that over 55% of banks globally are increasing investment in TradeTech platforms. These tools streamline document validation, KYC, and working capital disbursement—essential for onboarding new regional suppliers quickly and securely.
Deep-tier supply chain finance is gaining traction in 2025, as financial institutions increasingly use blockchain-based platforms to extend liquidity beyond Tier 1 vendors. These tools allow Tier 2 and Tier 3 suppliers to access financing backed by the credit strength of large buyers, improving transparency and accelerating cash flow across complex networks. As noted in a recent supply chain finance outlook, smart contracts are playing a critical role by automating payment enforcement and reducing disputes across multiple supplier tiers.
The Federal Reserve Bank of Atlanta found that U.S. banks have helped finance supply chain relocations, absorbing up to 5% of annual revenue impact in some cases through credit facilities and supplier matchmaking.
Sustainability-linked finance is also maturing. Institutions like ING and Santander are linking interest rates to emissions reductions and labor practices, aligning ESG performance with liquidity access and trade credit.
Digitization as a Sovereignty Enabler
Localized logistics require more than physical proximity—they demand speed, precision, and real-time visibility. AI-powered demand forecasting, digital twins, and IoT-enabled infrastructure allow companies to simulate scenarios, track inventory across regions, and rebalance capacity before disruptions materialize.
Oracle recently introduced a new trade and supply chain finance platform offering end-to-end transparency on capital usage, vendor compliance, and payment cycles. These capabilities are helping companies manage the complexity of decentralized operations without losing control.
Digital supply chains also support regulatory compliance. The EU’s Corporate Sustainability Due Diligence Directive requires granular knowledge of environmental and labor conditions throughout the value chain. Localizing supplier relationships—and digitizing their reporting—makes compliance faster and more defensible.
Meanwhile, greener logistics models are emerging by necessity. Electrified fleets, low-emissions warehousing, and route optimization tools are reducing the carbon intensity of supply networks while improving delivery reliability.
Looking Forward: From Optional to Essential
As supply chains grow more dynamic, supply chain sovereignty will become the foundation of business continuity and strategic advantage. Businesses that embed flexibility, geographic diversity, and digital oversight into their logistics ecosystems will be better positioned to respond to political shocks, regulatory shifts, and sudden demand changes.
The years ahead will favor companies that treat logistics not as a cost center, but as a strategic lever—where location, finance, compliance, and customer experience all intersect. In that environment, sovereignty is not isolationist—it is adaptive.
For global businesses in 2025 and beyond, the message is clear: stay local, stay ready—or risk being left behind.
Emerging prominence of Indian GCC and evolution from Cost optimizers to Value creators TECHNOLOGY
Globalization and changing market dynamics significantly impact industries, their growth and economies, with brands competing globally on a global scale. The role of Global Competence Centers (GCCs) is rapidly transforming the landscape of global business operations. Originally established to leverage cost advantages, these centers are now evolving into innovation hubs that drive growth through technologies and consumer solutions. This shift, particularly in cost-optimized locations like India, is reshaping the way how global corporations manage critical functions such as customer service, product development, and operational efficiency. Benefiting from favourable rules and a business-friendly climate, India could host 2,550 centres worth $110 billion by 20301, making it a global GCC player. This change presents opportunities and challenges that must be examined.
Companies utilize GCCs not only to save costs, but also to drive business transformation. Certain sectors such as Automotive, Consumer, Technology, Healthcare, Banking & Finance have seen more potential in the Indian economy, and their GCCs scaled by focusing on key areas, products, functions, and established brands. In the final phase, they evolved into innovative Value creators by focusing on transformation initiatives and by taking responsibility for business units, functional segments, products, or product categories. According to my own experience, outsourcing GCC to cost-optimized countries lowered operating costs by 25-40% while growing into innovation centres and boosting customer retention and service delivery.
An estimated 25% of Fortune global 500 companies and 15% of Forbes global 2000 companies have a GCC established in India2 India hosts approximately 40 global unicorn platform engineering centres. Organizations are guided by three primary themes: the pursuit of low-cost talent to enhance capabilities, the strategic positioning of India to foster digitization, innovation, and research, and the diversification of vendor risk through the establishment of owned subsidiaries. This approach facilitates tighter control over outsourcing costs while ensuring improved data security and privacy measures.
Reasons for shift of GCCs in India
Offshoring discussions began in the early 2000s and progressed into enterprise-owned GCC discussions in 2010. However, 2020 marked a notable shift in focus. Companies in mature markets faced significant cost pressures stemming from economic shifts such as Brexit, the COVID-19 pandemic, and the RussiaUkraine conflict. Consequently, these companies are actively evaluating the relocation of their operations to more costeffective regions. In light of increasing tensions, multinational corporations are exercising caution regarding the establishment of new cost-optimized centers in Europe, opting for emerging markets including Argentina, Chile, Costa Rica, Colombia, Latvia, Indonesia, Taiwan, and Vietnam. Mexico has increased in prominence as a nearshore alternative for US firms.
In the context of Industry 4.0, setting up an Excellence Center requires a specific set of competencies to ensure success.
Core competencies include digital literacy, data analysis, advanced technology proficiency, problem-solving skills, effective collaboration and communication and practical experience with technologies and process relevant to Industry 4.0. The Indian GCCs lead Industry 4.0 implementation due to technology adoption across industries. GCCs are worldwide hotspots for R&D, innovation, and technology deployment in automation, AI, and data analytics-heavy sectors. Goldman Sachs, JPMorgan Chase, Citi, HSBC and NatWest have leveraged their Indian GCCs to enhance AI, ML, and cloud computing R&D, boosting their global product and service delivery. Indian GCCs are leading in fintech innovation and providing solutions for payment systems and digital banking. Indian GCCs are key players in the industry 4.0 digital revolution due to data-driven decision-making and digital transformation.
Adaption of Models for GCC
GCCs can operate under a variety of models adapted to the parent company's individual business goals and objectives. Each model has distinct benefits and considerations, with companies selecting based on strategic goals, cost, regulatory constraints, and desired level of control and flexibility.
Captive centers Parent firm fully owns and operates the business
Hybrid models
Joint ventures
Build-OperateTransfer (BOT)
Hybrid mix of captive centers and third-party subcontracting
Collaboration between the parent corporation and local or international firms
Centre is set up and operated by a third party, with ownership eventually transferred to the parent corporation
Full control over operations, processes, and quality standards. Follows company goals and standards
Flexibility and scalability strike a balance between control and cost-effectiveness. It lets companies access external knowledge while keeping crucial functions in-house.
Shared risk, investment, and local market expertise and resources. Shared competencies foster teamwork and creativity.
It reduces early risk and investment and smoothly transitions to full ownership. Organizations can establish operations swiftly with less capital
According to studies undertaken by numerous research businesses, educational institutes, and consulting houses, the US, Germany, and the UK invest the most in India for GCCs. 3
Country of Origin of GCCs
Country of origin
Evolution from being Cost Optimizers to being Customer Centric Innovators
Companies form GCCs in India based on their business requirements and industry. The extension of their GCC operation enhances the complexity and diversity of the tasks performed by GCC, giving it more autonomy. Based on the existing GCC setup in India, 35% have a high degree of autonomy, while 67% have centralised reporting.³
Cost Optimizers: At early stages, with focus on cost optimization and limiting risks GCCs function as a support and offshore delivery center. Emphasis is on scaling talent, coordinating reporting and delivery, and streamlining parent organization services. Rarely includes comprehensive growth and evolution strategies.
Scaling Up Phase: Significant growth and expansion during this period, with a focus on knowledge base development, efficiency, and delivery. Emphasis on both quantity and quality, expansion takes place across the number of employees, projects, product/ category domains, services, and functions. To increase confidence with the organization, GCCs focus on key products, functions, and business units and establish quantifiable KPIs to monitor progress.
Value Creators: By managing business units, functional segments, products, and product categories, GCCs aim to extend the parent organization's delivery, innovation, and transformation initiatives. Most GCCs have a strategy and metrics plan to guide expansion and evaluate success.
Appreciation of Drivers of Evolution
Corporations value competency and talent when creating GCCs. GCC nations desire skilled workers to boost delivery and innovation. Competency-driven GCCs foster talent acquisition through partnerships with educational institutions and continuous learning. Focussing on knowledge strengthens the GCC's longterm success and market adaptability.
GCCs use trends, consumption patterns, and customer desires to produce market-oriented products. GCCs want to penetrate new markets, develop their consumer base, and stay competitive globally. Market-led GCCs use local experience to negotiate cultural and regulatory differences to help parent enterprises expand internationally.
Companies streamline processes, use data, and optimise resources for product development, manufacturing, procurement, and supply chain management to maximise operational efficiency. GCCs prioritise agility and cost-effectiveness through digital transformation, automation, and analytics. Optimising internal processes boosts these centres' efficiency, benefiting their parent companies.
By mapping relationships between drivers and phases of evolution, organisations may identify key drivers for each phase and adjust investments, resources, and capabilities.
Table shows how evolution drivers affect evolution phases.³
Market focus
Alignment with Parent Company
Scalable, high-quality talent at a fair price
Number of team members, volume of deliveries, and turnaround time
System lacks autonomy, and is fragmented and compartmentalized.
Focusses on imparting skills, training, and subject knowledge
Level of Innovation
Current and prospective markets
Low: Improvements in efficiency and localization are the sole objectives
Focused on current markets
Engaging academics, scientists, and functional experts
Prioritizing quality over quantity; work content driven by efficiency and improvement
Improved autonomy and trust through application of the subject matter to work output
Transition from arbitrage to proficiency
Using innovation to propel new business
Demonstrates high levels of trust and autonomy in managing and enhancing knowledge-based innovation
Low-Medium: Focused on value engineering and targeted localization of innovation
Driven by regional, sectoral and industry focus
Medium-High: Transformation based on knowledge-based innovation
Designing novel products for global consumption
Operational efficiency Companies with global supply chain prospects and efficient manufacturing processes
Collaborations between industry, manufacturers, institutions, start-ups, and government to strengthen the ecosystem
The Road Ahead
Strategic Partnerships; Joint Ventures
Develop long-term ties with ecosystem stakeholders
Own subsidiary: using value chain advancement
GCCs in India are no longer just cost-optimization extensions of multinational corporations; they have evolved into engines of innovation, technological transformation, and strategic value creation. GCCs are leading the next wave of globalization through AI-led automation, specialized domain expertise, and enhanced agility. As India cements its position as a global hub for GCCs, enterprises must leverage the strengths of GCCs to stay ahead in an increasingly competitive business landscape.
The advent of GCCs signifies a new era in global business services—one where technology, talent, and transformation converge to redefine the future of work.
Thukral,
(2025)
Seth, A. (2023).
Beyond the Logo: Unveiling the Strategic Significance of Brand Licensing
Brand licensing has moved far beyond its traditional roots of logos on lunchboxes or cartoon characters on school supplies. Today, it's a sophisticated strategy that allows companies to expand into new markets, product categories, and demographics—often without assuming the full risk or overhead of launching something alone. Licensing is a flexible growth tool, enabling rapid innovation, cultural relevance, and customer trust through collaborative brand partnerships. From Netflix-branded merchandise to Dunkin’inspired cereals, the scope of licensing has shifted into a more integrated and revenue-driven model.
What Is Brand Licensing Today?
Brand licensing is the practice of one company (the licensor) granting another (the licensee) the rights to use its intellectual property—such as brand names, characters, logos, or trademarks— on products or services. Licensing goes far beyond logo placement. It includes brand extensions, co-branded products, and broader intellectual property (IP) monetization strategies that turn intangible assets into long-term revenue streams.
Modern licensing is not a passive exercise but a proactive brandbuilding strategy. For instance, the LEGO x Adidas collaboration was not just a novelty sneaker but a cross-industry partnership that blended brand identities and created storytelling opportunities across fashion and play. Similarly, Netflix’s expansion into licensed merchandise—including toys, apparel, and collectibles for “Stranger Things”—demonstrates how content platforms are evolving into lifestyle brands.
According to the 2024 Global Licensing Industry Study by Licensing International, global sales revenue from licensed merchandise and services reached $356.5 billion in 2023, reflecting a 4.6% increase over the previous year. This steady growth highlights the increasing role of brand licensing as both a commercial engine and a cultural strategy as companies look for lower-risk, faster-to-market ways to expand their reach.
The Business Case: Why More Brands Are Licensing
As competition intensifies and consumer attention becomes harder to capture, brands are seeking smarter ways to expand
their presence without overextending resources. In this environment, licensing has emerged as more than a marketing play—it’s a strategic lever for growth. By forming partnerships with complementary companies, brands can expand into new categories, reach fresh audiences, and generate additional revenue streams. The following are three key reasons why licensing is accelerating—and how successful brands are turning it into a competitive advantage.
Cost Efficiency
Licensing enables brands to enter new markets or product categories without the upfront costs of developing, manufacturing, or distributing products. The licensee assumes those responsibilities, while the licensor contributes brand equity and recognition. A standout example is the e.l.f. x Dunkin’ collaboration, where Dunkin’ extended its coffee-and-donuts identity into beauty through a limited-edition makeup collection. e.l.f. handled product development, packaging, and retail rollout, allowing Dunkin’ to expand its lifestyle appeal with minimal operational risk.
Speed to Market
Licensing allows brands to move quickly—launching new products in sync with consumer trends or cultural moments. The e.l.f. x Dunkin’ collection was timed for a spring release with playful packaging and coordinated promotions, capturing seasonal excitement and social media buzz. Similarly, the Balmain x Barbie collaboration launched a high-fashion capsule collection alongside Barbie-branded NFTs, enabling both brands to tap into nostalgia and emerging digital retail trends at just the right moment.
Trust Transfer
Consumers are more likely to try a new product when it carries the name of a brand they already trust. This concept, known as 'trust transfer,' is a key aspect of successful brand licensing. The e.l.f. x Dunkin’ and Balmain x Barbie collaborations worked because each paired a bold, unexpected idea with well-known, credible brands. That familiarity helps lower the barrier to trying something new—whether it’s donut-themed eyeshadow or fashion-forward doll-inspired couture.
These collaborations demonstrate how licensing allows brands to act agilely while maintaining brand integrity. By aligning with trusted partners, companies can enter new spaces, delight consumers with unexpected offerings, and, importantly, reduce the risks associated with in-house innovation—all while amplifying reach and relevance.
Who’s Licensing Whom? Sectors Leading the Trend
High-profile collaborations like e.l.f. x Dunkin’ and Balmain x Barbie have captured headlines for their bold creativity—but they’re far from alone. These partnerships are part of a broader movement as companies across industries embrace licensing to generate buzz and build new business models.
Fashion & Footwear
From the launch of the Nike x Tiffany & Co. Air Force 1 1837—a premium black suede sneaker accented with Tiffany Blue® and sterling silver—to Crocs’ unexpected run of pop culture tie-ins with franchises like Shrek and Pokémon, brands are tapping into nostalgia and fan loyalty to sell through limited editions at scale.
Food & Beverage
The food sector is licensing beyond the plate. Kellogg’s has licensed brands like Pop-Tarts and Froot Loops into cosmetics, apparel, and novelty goods. CPG crossovers—like Heinz x Absolut’s tomato vodka pasta sauce—show how licensing can connect heritage brands in entirely new categories, generating PR value and shelf appeal.
In a more youth-focused example, General Mills partnered with K-pop group TOMORROW X TOGETHER (TXT) to release limitededition cereal boxes featuring collectible cutout standees of each band member. Each box paired a TXT member with an iconic cereal mascot, such as Lucky the Leprechaun from Lucky Charms or the Silly Rabbit from Trix. The collaboration brought fresh cultural relevance to General Mills’ brands while tapping into the global popularity of K-pop fandoms.
Gaming & Entertainment
Video game IPs are proving especially ripe for licensing. Minecraft, Pokémon, and League of Legends have all evolved into multiplatform licensing powerhouses, with merchandise spanning toys, apparel, publishing, and even theme parks. Meanwhile, Netflix’s licensing push continues with a range of show-based products, from Squid Game to Wednesday.
Technology & Home Goods
Tech companies are increasingly leveraging licensing to humanize their products. Motorola’s licensing deal with Pantone helped create color-driven product differentiation, while licensed smart appliances, like Star Wars-themed Instant Pots or Hello Kitty minifridges, turn functional items into collectibles.
Across these sectors, licensing is helping brands stay culturally relevant, expand product portfolios, and reach consumers in
unexpected moments—from retail shelves to digital storefronts. It’s no longer about one-off merchandise—it’s about building an emotional connection through creative brand extension.
Best Practices for Brand Partnerships
Effective licensing isn’t just about putting two logos together. Strong partnerships are built on clear brand alignment, product fit, and attention to execution. The most successful deals follow a few key principles:
• Shared Values and Audience
A good licensing match starts with brands that appeal to the same customers and hold similar values. When there's a natural connection, the final product feels more authentic to both audiences.
• Consistent Brand Expression
Most licensors provide style guides and require approvals to keep messaging, colors, and tone aligned across licensed products. This
•
• ensures that the brand is recognizable and well-represented, even in a new category.
Product Quality and Fit
Licensed goods still reflect the original brand. That’s why quality control—and ensuring the product makes sense for the brand—is essential. A mismatch can quickly erode trust.
Streamlining Operations with Licensing Platforms
Platforms like Flowhaven and Brainbase are changing how brands manage licensing programs. Flowhaven offers tools for design approvals, royalty tracking, and agreement oversight. Brainbase provides solutions for contract workflows, product approvals, and revenue tracking—giving licensors and licensees a more organized way to scale.
•
Long-Term Thinking
Many successful licensors have worked with the same partners for several years. That consistency builds better collaboration, stronger products, and a loyal customer base.
Peanuts: A Case Study in Licensing Discipline
Peanuts Worldwide is a clear example of long-term licensing done right. Now in its 75th year, the brand has built a global licensing program by staying true to its character-driven storytelling and carefully choosing partners who respect its tone and identity. It has expanded into everything from apparel to home goods without losing the spirit of the original comic strip—a model of consistency and smart licensing strategy.
The Future of Licensing: Platform-Driven and Data-Backed
Brand licensing is undergoing a digital transformation driven by advancements in technology and data analytics. Modern platforms streamline operations, provide deeper insights, and enable more strategic decision-making.
Leveraging Data for Strategic Insights
According to BrandTrends, more brands are using consumer data and trend forecasting to inform their licensing decisions. This approach helps licensors understand where their brand fits next and how to optimize product-market fit in new territories or categories.
Integrating AI into Licensing Strategies
Licensing International reports that AI is already being used to automate licensing tasks, track compliance, analyze deal performance, and support creative development. The integration of AI promises faster deal cycles, more accurate reporting, and smarter forecasting.
Brand licensing is no longer a sideline activity—it’s a powerful engine for growth, relevance, and consumer engagement. As platforms, partnerships, and predictive tools continue to evolve, the most successful brands will treat licensing not just as a marketing tactic but as a core strategy. The future of licensing belongs to those who can balance creativity with consistency, data with instinct, and collaboration with control.
How TikTok Shop Is Redefining Retail:
The New Playbook for Business Success
The boundary between entertainment and retail is disappearing— and TikTok is leading the charge. Launched initially as a short-form video app, TikTok has rapidly evolved into a global retail platform. With the introduction of TikTok Shop, the platform has integrated entertainment and purchasing into a seamless experience, reshaping how consumers discover and buy products online.
The
TikTok Shop Phenomenon
TikTok Shop’s rapid growth highlights the platform’s expanding influence in global e-commerce. In 2024, TikTok Shop generated $33 billion in global sales, with the United States emerging as its largest market, contributing $9 billion. Notably, this level of growth was achieved just 16 months after TikTok Shop’s U.S. launch, underscoring the platform’s potential to reshape retail dynamics.
Unlike traditional e-commerce platforms, where consumers typically arrive with a specific intent to purchase, TikTok Shop fosters what marketers describe as “discovery commerce.” This is a unique feature of the platform where entertainment and content organically lead to buying decisions, making it a powerful tool for businesses to attract new customers. In 2024 alone, the platform attracted 47.2 million social media shoppers, reflecting a 34.2% increase over the previous year.
The New Retail Playbook
TikTok Shop is redefining the path to purchase by merging content, community, and commerce into a single platform. For businesses, this evolution presents both new opportunities and new competitive pressures. Brands that succeed on TikTok Shop create engaging content experiences rather than traditional advertisements.
Success stories are already emerging on TikTok Shop. For instance, MySmile, a beauty brand, generated over $1 million in gross merchandise value (GMV) within three months of launching on the platform. They achieved this by creating content that resonated with audiences organically rather than relying on overt promotional tactics. These success stories inspire and motivate businesses to explore the potential of TikTok Shop.
The platform’s ability to convert viral moments into measurable sales outcomes is becoming a key differentiator. For example, Sephora’s 2024 Black Friday campaign using TikTok Smart+ achieved a 53% higher return on ad spend (ROAS) and a 44% improvement in average revenue per user compared to previous benchmarks, demonstrating the platform’s effectiveness in driving tangible business results.
Another example is the sustainable fashion brand Love, Bonito, which has effectively utilized TikTok Shop’s live-streaming capabilities to boost customer engagement and sales during key shopping events. The brand has strengthened customer trust by combining storytelling with real-time product showcases and expanded its digital footprint.
Cross-Border Commerce and Challenges
Despite its rapid growth, TikTok Shop faces notable obstacles, particularly in expanding cross-border commerce. Companies entering new markets often encounter logistical barriers such as underdeveloped infrastructure, high shipping costs, and longer delivery times. Many businesses rely on local warehouses or thirdparty logistics providers to remain competitive, reduce shipping delays, and enhance customer satisfaction.
In addition to operational challenges, TikTok Shop is subject to increasing regulatory scrutiny across several markets, particularly concerning data privacy and platform security. Businesses operating on the platform must stay agile and monitor evolving regulatory landscapes, as changes could affect data management practices, operational compliance, and market accessibility. For instance, the platform may face data privacy issues due to its global reach, and businesses may need to adapt their strategies to comply with different data protection laws in various markets.
The Social Commerce Evolution
TikTok Shop represents more than just another sales channel—it's a glimpse into the future of retail. The platform has effectively created a new form of "see it, want it, buy it" commerce that resonates with younger consumers. Studies show that 35% of TikTok users have purchased products they've discovered on the platform, highlighting the powerful connection between social content and purchase decisions.
The growing link between social content and purchasing behavior forces businesses to rethink traditional retail strategies. Companies must now approach engagement with a creator mindset, producing content emphasizing entertainment value and product visibility. The most successful sellers on TikTok Shop are those who seamlessly blend storytelling and commerce, understanding that authentic, engaging content is often more effective than conventional advertising.
Best Practices for Businesses
As TikTok Shop continues to gain traction, businesses aiming to succeed on the platform should prioritize the following strategies:
1. Prioritize Content Over Promotion
Develop authentic, engaging content focusing on entertainment and storytelling rather than direct selling. TikTok’s algorithm favors genuine audience engagement over overt promotional messaging.
2. Build and Nurture Community Engagement
In TikTok's social commerce environment, active community engagement is not just beneficial—it's critical. Businesses should foster customer relationships through live streams, comment interactions, and user-generated content initiatives. This active participation is key to building brand loyalty and converting sales on TikTok Shop.
3. Respond Quickly to Emerging Trends
Maintain an agile content strategy to capitalize on viral trends and cultural moments. Given the platform’s rapid pace, timely responses can significantly amplify reach and influence purchasing decisions.
4. Partner with Authentic Influencers
Utilize TikTok’s Creator Marketplace to collaborate with creators whose audiences align with brand objectives. Many successful businesses attribute their growth on the platform to strategic influencer partnerships, highlighting the importance of authenticity and audience fit.
5. Leverage TikTok Shop’s Commerce Features
In addition to content strategies, businesses can take advantage of TikTok Shop’s integrated tools to streamline the shopping experience. Features such as in-app checkout, affiliate marketing programs, and livestream shopping events offer multiple pathways to drive engagement and conversion—without requiring users to leave the app environment.
The Future of Social Commerce
TikTok Shop’s influence on the retail sector is poised for continued growth. In 2024, the platform’s advertising revenue reached $23.3 billion, reinforcing its expanding role in the global commerce ecosystem. This trajectory indicates that social commerce is no longer an emerging trend—it is becoming an integral component of modern retail strategies.
For businesses, success on TikTok Shop requires more than traditional e-commerce tactics. It demands the creation of immersive experiences, the cultivation of engaged communities, and the delivery of content that feels authentic and native to the platform’s environment.
Looking Ahead
The rise of TikTok Shop signals a broader transformation at the intersection of content, commerce, and community. As social commerce gains momentum, businesses that embrace a content-first, engagement-driven approach will be better positioned to capture emerging opportunities.
TikTok Shop is also aggressively expanding into new international markets, including Southeast Asia, the United Kingdom, and Latin America. While competition in the social commerce space remains strong—with platforms like YouTube Shopping expanding their capabilities—some initiatives, such as Amazon Inspire, have been discontinued, highlighting the challenges of sustaining consumer engagement in this evolving market.
In an increasingly social, mobile, and entertainmentdriven retail landscape, the ability to seamlessly integrate engagement and commerce is becoming essential. In this new retail landscape, TikTok Shop is not following trends—it is setting them.
Reputation at Risk: Navigating Viral Algorithms and Public Backlash
Reputation management has always been a concern for businesses, but the dynamics have shifted. Today, a brand’s public image can change rapidly—not because of planned campaigns or press coverage, but because of how content is ranked and surfaced by social media platforms.
Content that spreads through algorithmic virality—the kind promoted by systems designed to maximize engagement—often reaches large audiences for reasons unrelated to accuracy or intent. These recommendation engines, used by platforms like TikTok, YouTube, and X (formerly Twitter), prioritize posts that are provocative, outrageous, or emotionally engaging, according to the New York Times. That means visibility is often disconnected from context or brand control.
For companies, this creates real challenges. A message can be lifted out of its intended setting, pulled into unrelated conversations, or shown alongside controversial content that changes its meaning. Understanding this environment is now essential to protecting brand integrity.
How Algorithmic Virality Works
Social platforms determine not only what content is seen, but how far and how fast it spreads. Most major networks—TikTok, YouTube, Instagram, X—rely on algorithms that prioritize engagement-based metrics. These systems track how long users
watch a video, whether they like, comment, or share, and how quickly interaction begins—criteria that platforms like TikTok explicitly identify as factors in their recommendation systems
This model is a sharp departure from earlier forms of digital sharing, when a brand’s reach depended on its followers or organic word of mouth. That older form of virality was shaped by human judgment—people shared posts because they were useful, funny, or emotionally resonant. As noted in the Harvard Business Review, content that evokes high-arousal emotions— such as awe, anger, or anxiety—has historically had a higher likelihood of being shared organically.
Today, those human decisions are largely outsourced to recommendation engines. The platform—not the user—decides what gets amplified. Even if a brand doesn't intend to go viral, its content—or a post referencing it—can be surfaced widely for reasons that have little to do with message quality or brand objectives.
That visibility can be a double-edged sword. A campaign might be embraced—or it might be twisted, misinterpreted, or pulled into a trend that alters its meaning entirely. In this environment, visibility is no longer a proxy for approval. What spreads is often what sparks a reaction, and that reaction doesn’t always work in a brand’s favor.
Traditional reputation management was about controlling the message—press releases, media training, and carefully crafted crisis plans. Those tools still matter, but they’re no longer enough in today’s fragmented and fast-moving digital environment. The risks have multiplied, and many are outside a brand’s direct control.
Ad adjacency is one of the most visible issues. Programmatic ad systems can place your brand next to controversial or inappropriate content, dragging your message into conversations you never intended to join. In 2017, AT&T, Verizon, and Walmart pulled their ads from YouTube after discovering they were being shown alongside extremist content—highlighting just how little control brands sometimes have over where their messages appear.
Impersonation and synthetic media are rising threats. With AIgenerated deepfakes and lookalike social media accounts, it’s easier than ever for malicious actors to hijack a brand’s identity. According to the Federal Trade Commission, scammers are increasingly using AI tools to impersonate individuals and organizations, prompting new proposals to strengthen protections against deepfake-driven fraud.
Memeification is harder to anticipate—and harder to stop once it starts. In 2019, Peloton released a holiday advertisement meant to showcase a woman’s fitness journey. Instead, it quickly became a viral meme, widely mocked online for its dystopian tone and perceived messaging about body image.
The brand’s intent was lost as parodies and critiques dominated public conversation, showing how quickly narrative control can shift once content gains traction on algorithm-driven platforms.
Understanding these dynamics—and building safeguards around them—is no longer optional. In a reputation economy, context is everything.
Real-Time Response vs. Preemptive Governance
When a crisis hits, speed matters. Brands often have only minutes—not hours—to respond before narratives solidify online. That’s why social media listening and crisis monitoring tools are no longer optional— they’re essential for identifying risks as they emerge. But technology is only part of the solution. Without clear internal protocols—who responds, how fast, and on which channels—even the best tools fall short. The difference between a brief reputational flare-up and a sustained PR disaster often comes down to timing and preparedness.
Preemptive governance is where brand safety truly begins. This means going beyond monitoring to actively reduce exposure to risk before content ever goes live:
• Ad placement controls: Implementing blacklists and whitelists in programmatic advertising helps ensure your brand never appears next to content that contradicts your values or invites backlash.
• AI-powered brand safety filters: Tools that scan for potentially harmful content or placements can catch issues before campaigns are deployed.
• Internal training and simulations: Equipping executives, marketing teams, and social media managers with protocols—and running regular crisis simulations—ensures a coordinated response when public pressure hits.
The need is clear: 96% of organizations experienced at least one disruption in the past two years, yet many still lack formal crisis simulation programs. Planning ahead doesn’t just reduce risk—it helps preserve credibility when the unexpected happens.
Partnerships and Platform Accountability
Brands aren’t navigating algorithmic chaos alone. Partnerships with platforms like Meta, YouTube, TikTok, and X are more important than ever for managing brand safety. But not all platforms offer the same level of transparency, control, or responsiveness. Some, like Meta, provide advanced suitability controls and third-party verification tools. YouTube offers advertiser-friendly content filters and placement settings, while TikTok emphasizes pre-bid targeting and contextual protections. X also outlines brand adjacency safeguards, but implementation and enforcement vary.
To support industry-wide alignment, organizations such as the Interactive Advertising Bureau (IAB) have published standardized definitions of brand safety and suitability. Meanwhile, the Global Alliance for Responsible Media (GARM)—an initiative led by the World Federation of Advertisers—continues to develop frameworks that promote responsible media investment and content classification.
These efforts are essential, but they don’t remove the responsibility from individual brands. Companies must evaluate each platform’s safety capabilities with a corporate risk mindset—not just a media buying one. In a landscape where algorithms determine visibility, understanding where your content goes—and how it's contextualized— can make or break a brand’s reputation.
Building a Resilient Brand in a Viral World
The brands that weather viral storms are the ones grounded in clear values and consistent communication. In today’s digital landscape, trust is built not just through messaging, but through accountability.
When something spreads—whether positive or negative—transparent communication matters. Audiences are quick to react, but they’ll often give a brand the benefit of the doubt when it responds honestly and owns its mistakes.
Algorithmic virality is unpredictable by design. That’s why brand safety isn’t just a PR function—it’s a strategic risk factor, every bit as critical as cybersecurity or supply chain continuity. In a system where platforms decide what surfaces and when, resilience belongs to the brands that
The Corporate Water Crisis
Why Water Scarcity Is Now a CFO-Level Financial Risk
Once an environmental concern, water scarcity has evolved into a significant financial threat. With the intensification of droughts, groundwater depletion, and shifting climate patterns, businesses are grappling with escalating costs, supply chain disruptions, and increasing pressure from regulators and investors. Water-related risks are now permeating every aspect of business, from operational planning to credit ratings.
Water risk, once relegated to the realm of sustainability, is now reshaping the way financial institutions evaluate risk, and companies allocate capital. The ability to access, manage, and account for water is emerging as a critical factor in long-term resilience—and, in some cases, even business survival.
Water scarcity is no longer a hypothetical risk. In northern Mexico, prolonged drought and over-extraction have pushed regions like Nuevo León into critical shortage. In early 2024, local officials warned that industrial water use could face new restrictions as resources became increasingly constrained. Coca-Cola FEMSA and Ternium were identified as particularly vulnerable due to their water-intensive operations. These conditions highlight how regional water crises threaten business continuity—even in globally integrated industrial corridors. As similar patterns emerge elsewhere, companies are being forced to reevaluate water access
not as a secondary infrastructure concern but as a material financial risk.
The Price Tag of Parched Operations
Water risk is already impacting corporate performance. Recent data from CDP reveals that at least $77 billion in business value is under threat due to water-related supply chain vulnerabilities, with $7 billion at immediate risk. These figures reflect ongoing disruptions to operations, supply chains, and earnings— underscoring the materiality of water risk.
The technology and telecom sectors are particularly exposed. A study by Morningstar Sustainalytics of 122 firms that rely on water-intensive data centers found that many are underprepared for water quality and scarcity risks. As demand for digital infrastructure grows, so does the financial exposure tied to the availability of water to cool and power data operations.
Water stress is not limited to data centers and cloud infrastructure. The global fashion industry, one of the most water-intensive sectors, is increasingly vulnerable. In 2024, Inditex, Zara's parent company, increased its reliance on air freight from India to circumvent shipping delays, some of which were linked to regional supply disruptions caused by erratic water availability impacting cotton production and garment manufacturing.
The mining industry faces similar challenges. Codelco, Chile’s state-owned copper giant, sought a $650 million environmental permit to overhaul water systems at its Andina mine in response to a decade-long drought. The investment aims to recirculate water from tailings and redirect it to the concentrator plant—highlighting the growing costs companies must bear to maintain operational stability in water-scarce regions.
From Disclosure to Action
Corporate responses to water risk are accelerating, driven not only by sustainability commitments but also by financial necessity. As of 2025, CDP is aiming to track disclosure from 90% of highimpact companies, with water security positioned as a core component of environmental reporting. Transparency is no longer optional; investors and regulators increasingly expect detailed insight into how companies manage resource exposure and operational resilience.
Financial institutions are adapting their models accordingly. Banks and insurers are embedding water stress metrics into risk assessments, altering how capital is allocated and how exposure is priced across industries with water-intensive operations.
On the ground, more than 1,500 companies—approximately half of those surveyed—are now engaging their supply chains on water risks. Supplier contracts increasingly include water management provisions as companies seek to reduce exposure to downstream disruptions.
At the market level, water stress and climate variability are beginning to shape credit outcomes. Credit rating agencies are factoring water-related disruption into sector outlooks, signaling growing pressure on companies to adapt or face downgraded financial profiles.
The Agricultural Warning Sign
Agriculture remains one of the most exposed sectors to water scarcity, both physically and financially. According to the Environmental Defense Fund, escalating water risks—ranging from prolonged droughts to flash flooding—are increasingly threatening U.S. agriculture. These climate-driven extremes are disrupting planting schedules, reducing crop yields, and undermining the reliability of key agricultural regions.
The threat isn’t limited to North America. The World Resources Institute estimates that one-quarter of global food crops are now grown in areas with highly stressed or unreliable water supplies. These include vital production zones for rice, wheat, maize, and sugar—core commodities for food security and global agribusiness markets.
Water volatility introduces new financial pressures, from insurance losses to long-term shifts in land values and credit risk. For institutional investors, exposure to water-stressed agricultural assets increasingly raises red flags—prompting closer scrutiny of how food producers, processors, and retailers are managing water access and resilience.
The Insurance Factor
In 2025, insured losses from natural disasters are projected to reach $145 billion, marking a nearly 6% increase from the previous year and making it one of the costliest years on record for insurers. This escalation is driven by growing urban development in vulnerable areas and the intensifying impacts of climate change, including more frequent and severe water-related events such as floods, droughts, and storms.
The insurance industry is adapting by reassessing coverage models in high-risk regions. Water stress metrics are being integrated into underwriting and pricing strategies, resulting in rising premiums and, in some cases, restricted access to coverage. These changes have broad economic implications as businesses and communities face increased difficulty securing affordable protection.
The widening protection gap—where a growing share of climaterelated losses remains uninsured—is now a systemic concern. Insurers are joining calls for greater investment in resilience infrastructure and adaptive planning to mitigate long-term financial exposure. Without coordinated action, water-related climate risks will continue undermining local economies and global economic stability.
The Business Imperative for Water Resilience
Water security is no longer a peripheral sustainability issue, it has become a central financial concern. The challenges of climate variability and water stress are already influencing credit quality, particularly for companies with high water dependency and limited adaptation strategies. Both near-term disruptions and long-term exposure are factored into ratings and investor risk models.
For businesses, the imperative is clear: proactively managing water-related risks is no longer just about environmental stewardship but also about ensuring financial resilience. Failure to manage water-related risks could lead to higher borrowing costs, reduced investor confidence, and increased vulnerability to operational disruptions.
Organizations integrating water management into their strategic planning are better positioned to maintain credit strength, attract long-term capital, and build competitive advantage. Securing access to water is no longer just about sustainability—it’s a business continuity issue with bottom-line consequences.
Some companies are embedding water stress forecasting into enterprise risk models, using scenario analysis to guide investment decisions and contingency planning. On the financing front, blue bonds are gaining traction as tools for directing capital toward sustainable water infrastructure. In 2024, the global blue bond market expanded by 10%, funding projects that included wastewater treatment upgrades, rainwater harvesting systems, and freshwater ecosystem restoration.
These instruments—and the strategies behind them—signal a broader shift: Companies that treat water risk as a financial driver, not just an ESG concern, are more likely to secure investor confidence, protect long-term margins, and lead in a resourceconstrained future.
