Global Business Outlook Issue 03 2025 by Global Business Outlook

- September 2025

Building Saudi Arabia’s logistics backbone

Touted in China as a potential rival to OpenAI's ChatGPT, DeepSeek’s open-source large language model (LLM) is rapidly permeating nearly every aspect of the world’s second-largest economy. DeepSeek is appearing everywhere—whether in Chinese government offices, nuclear power facilities, or even inside a popular mobile shooting game. Companies across a wide range of industries are eager to announce their successful integration of DeepSeek’s open-source models into their business strategies, and Global Business Outlook will shed further light on the growing euphoria surrounding this development.

Meanwhile, Tesla is grappling with a significant conundrum surrounding one of its flagship vehicles, the Cybertruck. Since deliveries began just over fourteen months ago, Elon Musk’s company has reportedly sold 46,096 of these formidable 7,000-pound electric pickups. Musk previously told investors that Tesla would soon sell 250,000 Cybertrucks annually, yet this target now reflects a sharp decline from the far more ambitious projections he made only weeks before the truck’s launch.

Shifting attention to Japan, where, amid a slowing economy, policymakers and economists are closely observing the rise of the “oshikatsu” phenomenon, increasingly recognising it as an important driver of domestic consumer spending. The trend has captured the interest of analysts, particularly because it resonates strongly with a demographic of “mostly 20- and 30-somethings” who are enthusiastically investing their time and money in supporting their favourite celebrities, anime characters, or lovable mascot icons.

The cover story of Global Business Outlook's July-September edition will centre on SILZ, the developer and operator of Saudi Arabia’s first Special Integrated Logistics Zone, “Riyadh Integrated.” By building an innovative, partnership-driven ecosystem, the company aims to consolidate the Kingdom’s position as a leading force in redefining global logistics for the 21st century, an ambition closely aligned with the broader “Vision 2030” diversification agenda.

Thomas Kranjec Editor kimberly@gbomag.com

06 | Why are Britons not getting jobs?

| The cost of change fatigue in modern work 32 | Cashless future: How digital wallets are taking over 42 | Young investors rewrite wealth management rules

52 | Togo's economy thrives despite political challenges

62 | Youth unemployment: A growing crisis for the future

72 | Generative AI reshapes financial sector

82 | When everyone uses AI, no one stands out

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Why are Britons not getting jobs?

GBO Correspondent

Many Britons stated that they could not even locate low-skilled jobs in industries like retail and hospitality to support themselves

Despite the British economy growing by 0.1% in the fourth quarter (beating analysts' expectations), things are not okay with the European country. According to a new survey, vacancies for permanent jobs in the nation declined at their fastest pace for four years in December 2024.

David Hoghton-Carter, a 46-year-old Leeds-based corporate strategy professional, says the current job market is the worst he has ever encountered, even worse than the aftermath of the 2008 financial crisis, which also left him temporarily jobless, and the pandemic.

Hoghton-Carter is still looking for work after almost two years, joining the 1.57 million people in the United Kingdom looking for work between September and November 2024. This group accounts for a small portion of the nearly 11 million working-age people who are deemed "economically inactive" due to a variety of factors, including illness, and do not receive an income, even though they make up the majority of Britain's "unemployment" statistics.

“The job market is nightmarish. Competition is extreme, it’s slim pickings for good roles that suit my skill set, and employer expectations are through the roof,” he said.

Hoghton-Carter was one of several people nationwide who told The Guardian that they had never had such a difficult time finding employment. According to their responses, hundreds of applicants competed for each position, highly skilled graduates had difficulty finding well-paying jobs, and candidates were frequently turned down for positions for which they were qualified and those for which they were overqualified.

A published research revealed that job vacancies in January 2025 fell to their lowest level since August 2020, during the height of the pandemic. In a study conducted by the Recruitment and Employment Confederation and KPMG, employers' demand for permanent emp-

loyees has decreased over the past 17 months.

Hoghton-Carter shared the opinions of many other respondents, believing that British employers were unwilling to invest in training and were demanding more for less money.

"Salaries rarely meet current living costs. It’s a race to the bottom by organisations and businesses, either desperate to save money or prioritising their profit margins," he added.

Additionally, many job seekers observed a significant decline in job postings and application responses since last summer, especially for positions in design, entertainment, marketing, human resources, and information technology. Many attributed the decline in opportunities to economic unpredictability and higher employer expenses since Rachel Reeves' budget was announced last October. They added that several jobs that previously required pro-

fessional expertise were now worth less due to AI.

Graphic designer Owen Winn, who hails from Slough, Berkshire, previously held senior in-house design roles at organisations like O2. He claimed that many companies seem to have replaced his prior roles with AI, which has resulted in a sharp drop in open positions.

“It has been very difficult to find stable employment as a creative. I have applied for hundreds of jobs. I have a body of work that spans 20 years for some of the most wellknown brands in the world, and yet it’s still not enough. It feels like being on the scrap heap at 44," he added.

In his search for long-term roles that match his seniority, Winn has mostly come across poorly defined freelance positions and far lower-level job offers. He recalled one recent freelance opportunity from a company whose website featured AI-generated graphic design for all its content.

Industry Jobs

Employment rate in the United Kingdom from January 2025 to July 2025 (In Percentage)

Despite the expectation that earning a degree would result in lucrative employment, many graduates reported being compelled to accept part-time or low-paying jobs.

The 29-year-old Manchester resident, Lufty, was one of many highly qualified individuals who were underemployed, meaning they were doing low-paying, frequently part-time jobs for which they were far too qualified. He has a master's degree with distinction in medical microbiology and a first in biology from Russell Group universities, but he has been earning around £24,000 annually working in pubs.

“I’ve been applying for entry-level jobs in science and healthcare, especially for lab assistant positions with the NHS, since I was 23. I’m lucky if I get one interview a year. These are band two entry-level positions, offering less money than I make at the pub. They only require GCSEs or A-levels to apply, and I have two degrees. I tick absolutely every box on the job descriptions. You have to assume it is so competitive that they’re automatically filtering out many applications because of the sheer volume. Or is there some rubbish AI sifting through these applications that keeps spitting mine out?" he said.

“The market has been absolutely abysmal. A couple of years back, I was inundated with offers. This time, I’ve been actively looking for a new role for almost four months, and there are barely any openings. For every job, there are 5001,600 applicants you need to compete with. There just aren’t enough roles to go around," Danielle, who has only managed to find part-time work, said.

Additionally, workers claimed that their hours had been reduced as managers tried to lower labour expenses without reducing the number of employees.

Violeta Munteanu, a product assistant from the West Midlands, said, "My working hours were reduced due to current budget constraints. Many of my friends had their working hours cut to reduce costs."

A significant number of participants stated that they could not even locate lowskilled jobs in industries like retail and hospitality to support themselves.

Source: Statista

Lufty, who borrowed £60,000 to earn his degrees, was one of many people who thought that, despite government and employer messaging that more graduates with STEM degrees were needed in the economy, opportunities in STEM fields were becoming scarcer.

Danielle, 36, a London resident who previously held senior HR positions, was among several seasoned mid-career professionals who experienced underemployment like recent graduates.

These respondents stated that the UK labour market was overflowing with top talent during a period of reduced hiring budgets, and that the number of open positions had significantly decreased due to demand for workers following the initial job cuts caused by the pandemic.

“I haven’t had a job in four years. I’ve applied for about 1,500 jobs. I’m qualified in various things. I’ve applied for everything from being a cleaner in a factory to things associated with my degree. I’m worried about my future. I should be able to support myself financially, but I’m stuck in a village and live with my parents, so I have to claim universal credit. It feels impossible to get a job," a 25-year-old woman from Yorkshire said, who was made redundant when a shop closed.

Many job seekers stated that they were only considering fully remote, hybrid, or more flexible positions, pointing to a mismatch between employer needs and worker expectations.

These individuals stated that it was challenging to attend an office full-time due to several factors, including the high cost of living in neighbourhoods near places of employment and the difficulty in finding appropriate and reasonably priced childcare.

Numerous individuals with years of experience and university degrees

described their struggles as "demoralising," "humiliating," "ridiculous," and "exhausting." Young people and school dropouts without additional credentials also expressed a sense of complete helplessness.

“It’s miserable. No replies on any online job applications despite tailoring CV to the job requirements – for instance, for my Subway application, I put forward my previous McDonald’s work as qualifications instead of my A-levels,” said 20-year-old Sam from Brighton, East Sussex.

Marina, a 26-year-old from Wanstead, east London, claimed that she had been unable to find a permanent job for the last six months. She saw an increase in the pay offered for temporary administrative or hospitality jobs, frequently for ad hoc shifts, but she still felt that it was insufficient to cover her expenses.

“There’s pressure to upskill or gain additional qualifications and experience, but then there are no permanent jobs offered, only temporary contracts. I wonder whether what employers are looking for in people has changed...the economy certainly has," she said. While the economy shows some growth, the UK job market remains tough, with many struggling to find stable, well-paying jobs. Britons will hope for a positive shift in this trend in the months ahead.

Analysis \ Employment

Cybertruck

High hopes, low sales: The Cybertruck conundrum

Feature

GBO Correspondent

Beyond the issue of Tesla employing the wrong adhesive, the latest Cybertruck recall has brought some striking revelations to light. Since deliveries commenced just over fourteen months ago, Elon Musk’s company has reportedly sold 46,096 of these formidable 7,000-pound electric pickups.

Musk told investors that Tesla would soon sell 250,000 Cybertrucks annually, but this is a significant drop in sales from his predictions made just weeks before the launch. Musk boasted that Tesla had secured "over one million" Cybertruck reservations and that "demand is off the charts" during an earnings call one month before the production vehicle's November 2023 launch.

Initially paying $100 to get into the line, "reservationists" later increased their refundable deposit to $250. Waitlists are frequently created by automakers for models where demand is predicted to exceed supply, but most auto executives don't anticipate that all depositors will complete their orders.

Stephanie Valdez Streaty, director of industry insights for auto tech company Cox Automotive, tells WIRED that the automotive industry strives for a reservation conversion rate of between 2% and 16%.

The Texas Gigafactory, where the Cybertruck is manufactured, has the capacity to produce more than 125,000 of the pickups annually

Tesla Cybertrucks Sold in 2025

Source: Tesla First Quarter

6,406

Source: Statista

4,306 5,385

According to that calculation, Tesla's conversion rate is slightly less than 5%. Many experts, accustomed to Tesla's stratospheric sales, might view that as a failure even though it's at the lower end of the conversion scale. The wealthiest automaker in the world is typically not viewed by analysts as a typical automaker. It is worth many times more than companies that sell more cars because its stock trades at a multiple of earnings.

The Texas Gigafactory, where the Cybertruck is manufactured, has the capacity to produce more than 125,000 of the pickups annually. So if manufacturing capacity is any indicator of the sales figures that Tesla was anticipating, the company must be extremely disappointed. However, a January Business Insider article claims that workers were transferred from the "Cyber" production line to a Model Y line as a result of low Cybertruck sales.

Tesla's current high value is based on projected sales of its unreleased robotaxis and humanoid Optimus robots, which, like the Cybertruck, are expected to arrive three years before going into production, and may take several years to massproduce.

At an all-hands meeting on March 20, Musk told Tesla employees, "My predictions have a pretty good track record."

However, no one in the room dared to question Musk about whether he had foreseen the anti-Musk backlash that is severely hurting Tesla's global sales. Additionally, Tesla is not "by far the most innovative company in the car industry," despite Musk's claims during the staff meeting. In terms of autonomous driving and other technologies, Chinese

automakers such as XPeng, Nio, and Li Auto are significantly ahead of Tesla.

Waymo already provides rides in a driverless taxi. Furthermore, Tesla is not alone in its plans for humanoid robots.

According to author Peter Diamandis in a recent TechFirst podcast, there were fifteen other companies in this race, and none of them had a leader as contentious or polarising as Musk.

“This year, we hopefully will be able to make about 5,000 Optimus robots. That’s the size of a Roman legion. Which is like a scary thought. Like a whole legion of robots. I'll be like, whoa,” Musk said.

As he asserted that Tesla would produce "probably 50,000-ish (Optimus robots) next year," Musk's enthusiasm persisted.

“Optimus will be the biggest product of all time by far—nothing will even be close," he asserted.

“Compared to the next largest product ever created, it will be ten times larger. I predict that we will eventually produce tens of millions of robots annually,” the tech and EV billionaire commented, following which he raised the stakes even higher by declaring, “No, Tesla would produce perhaps 100 million robots annually."

Grandiose predictions excite Tesla bulls who believe him when Musk said, “I know more about manufacturing than anyone currently alive on Earth,” but back in the real world, Musk is in charge of a car manufacturing company that can’t even specify the correct grade of panel glue.

Musk's controversial angular pickups are currently experiencing a sharp decline in sales as they are involved in their eighth recall in the last 14 months, which also included problems with trapped accelerator pedals, failing windshield wipers, and potential wheel power loss. Cox Automotive estimates that Cybertruck sales decreased 32.5% in

February compared to the previous month.

“The Cybertruck generated significant buzz with its unique design and ambitious specifications. However, sales have fallen short of expectations due to higher-than-promised prices, lower driving range and payload capacity, and production issues. The unconventional design hasn’t resonated with traditional truck buyers, and strong competition from Rivian and Ford has intensified the market," Cox’s Streaty said.

She goes on to say that the Cybertruck is a "niche product with a unique design and high price point, which may not resonate with mainstream consumers. A major obstacle to the Cybertruck's commercial success is recalls and quality issues, which can seriously erode consumer trust and sales.”

Musk stated during the 2019 unveiling that the production car would go on sale in two years, with a $39,900 model as the starting price. The base model cost $21,000 more than it did when it was actually released in 2023.

The Foundation Series model, which was an early-door special, cost an extra $20,000 even though it only had a lookat-me logo and no other physical differences.

Lifetime cellular connectivity and "free" use of Tesla's Full Self-Driving

(Supervised) system were examples of non-physical benefits.

Experts contacted by Forbes estimate that Tesla invested at least $2 billion in the creation of the Cybertruck. UCLA professor of strategy and sociology Olav Sorenson, who is also the faculty director of the university's Price Centre for Entrepreneurship and Innovation, has estimated that a conventional car might require 200,000 units annually to cover the costs of research and development. Because of its unusual design and stainless-steel body panels, Sorenson estimates that the Cybertruck may need up to 300,000 sales annually.

According to Sorenson, at the current rate of Cybertruck sales, Tesla "probably loses money on everyone." Although it is an inventive vehicle, it has always been uncertain if such a unique design would be well-liked by buyers.

The first car made of stainless steel, the DeLorean, sold only 9,000 units. The PT Cruiser and other mainstream vehicles with unique designs have had trouble turning a profit. Tesla was unfortunate to learn that Musk's wedge wagon had a million or more reservations.

The Cybertruck's now-famous qualitycontrol problems may have contributed to this demand softening more quickly than anticipated.

The

Cybertruck generated significant buzz with its unique design and ambitious specifications. However, sales have fallen short of expectations due to higherthan-promised prices, lower driving range and payload capacity, and production issues - Streaty

Feature \ Tesla

Industry Cybertruck

In 2024, Kelley Blue Book estimated that Tesla sold only 38,965 of the angular electric vehicles. With Foundation Series models still available, a model that Tesla was supposed to have stopped selling in October, the company offered discounts in January 2025 to clear Cybertruck inventories

Andy Palmer, the former CEO of Aston Martin, said, "We knew this would be a highly desirable car when we launched reservations for the Valkyrie due to its limited production and the personnel involved in the car's development. People knew they could count on Aston to deliver the new car. We've observed a series of delays and goalpost relocations for the Cybertruck, which suggests unreliability. If the OEM isn't trustworthy, why should customers be?"

According to a northern Maryland reservationist who spoke to WIRED under condition of anonymity, Musk's promise of an electric pickup convinced him to buy. He states that he intended to purchase a truck and that he wanted an electric car for his next vehicle.

"At the time, the Cybertruck was the only electric pickup that appeared to be on the horizon. I cancelled my reservation after the Cybertruck took significantly

longer than anticipated to deliver the mid-tier item, for which I had paid $100 in advance. After the events of the past few years, and particularly the past few months, I would never purchase a Tesla car again,” he added.

The price increase was the dealbreaker for a lot of reservationists. According to Joseph Yoon, consumer insights analyst at the online retailer Edmunds, "The Cybertruck was promised to start at $39,990 when the initial reservations began—a stratospheric difference from the $99,990 Foundation Series trucks that were first available. With an anticipated base MSRP of $60,990 for even the most affordable base model, it's unlikely that many buyers will be willing to pay the enormous price difference."

In order to sell Foundation Series cars that didn't sell, it has reportedly buffed out the badges to make them resemble standard models. Benefits like free lifetime Supercharging have also been offered by Tesla dealerships in an effort to move more Foundation Series Cybertrucks out.

Even on used car lots, electric pickups are becoming more and more common. It's unlikely that US President Donald Trump's public call for Americans to purchase Musk's vehicles at a White House sales event made much of a difference.

According to Tesla bull Dan Ives, the company is having a "brand tornado crisis moment." Since the year began, the company's stock has fallen by almost 40%, wiping out the value increase it experienced in December 2024 following

Trump's election—a win that Musk helped finance.

Aside from the redesigned Model Y Juniper, Tesla also faces a jaded lineup of products, which is exacerbated by the subsequent hostility towards Musk. The novelty effect that may have increased the Cybertruck's initial sales has definitely worn off. A Morgan research note was released earlier this year.

“Tesla is probably the most expensive stock on the global stock exchanges right now. It could go down 95%—and maybe it should go down 95%," Gardell said.

Gardell sees Tesla as just a car company, but other analysts say it's a tech company with enormous potential for non-auto sales. He finds it hard to comprehend why Tesla is regarded with such respect by the market.

"The valuation of Tesla is incomprehensible," he said on the EFN channel.

He believes that a collision is likely to happen soon. Predicting the exact timing is challenging; it could occur in a month, six months, a year, three years, or even five years. However, during the interview, it was clear that Gardell is convinced it will take place.

Even though Musk recently praised the Cybertruck's five-star overall safety rating from the National Highway Traffic Safety Administration, saying it is "apocalypse-level safe," any Tesla market crash will at least partly be caused by the Cybertruck's lower-than-expected sales.

The day that Tesla's CEO classified his forecasts as having a "pretty good track record" may ultimately be one he regrets. Musk admitted during a 2023 earnings call that the car company had "dug our own grave with the Cybertruck." He might have been right on this one if the brand's current trends continue after this.

Meanwhile, in 2024, Chinese automaker BYD reported 777 billion yuan ($107 billion) in revenue, surpassing US rival Tesla as the two electric vehicle rivals intensify their competition.

Sales of its hybrid cars helped BYD report a 29% rise in revenue over the prior year. This amount was higher than the $97.7 billion in yearly revenue that Elon Musk's Tesla company reported.

Chairman and President Wang Chuanfu praised BYD's "rapid development" in 2024, pointing out that the company was the first in the world to roll out 10 million new energy vehicles in November.

“BYD has become an industry leader in every sector from batteries, electronics to new energy vehicles, breaking the dominance of foreign brands and reshaping the new landscape of the global market,” Wang said in a statement.

The filing was made soon after BYD revealed a new battery technology that it says can charge electric vehicles (EVs) nearly as fast as filling up a car with gas.

Recently, the carmaker announced that its new "Super e-Platform" will enable vehicles equipped with the technology to reach 400 kilometres (about 249 miles) of range with only five minutes of charging.

Analysts praised BYD's new battery platform as "out of this world" and hypothesised that it might cause EV owners to behave very differently.

Shares of BYD listed in Hong Kong have increased 46% so far this year. As a result of growing consumer boycotts and declining demand worldwide, which has been exacerbated by Musk's emergence as a hard-line conservative political figure, Tesla's stock has fallen more than 31% so far this year.

Even though Musk recently praised the Cybertruck's fivestar overall safety rating from the National Highway Traffic Safety Administration, saying it is apocalypse-level safe, any Tesla market crash will at least partly be caused by the Cybertruck's lower-thanexpected sales

SILZ Company builds Saudi’s logistics backbone

GBO Correspondent

SILZ Company

Saudi Arabia

Using advanced technology, industry expertise, and smart infrastructure, SILZ Company has set new efficiency and value-chain integration standards

The 21st-century global supply chain landscape is undergoing a dramatic transformation, placing a premium on speed, efficiency, and seamless connectivity. At the forefront of this change is Saudi Arabia, whose ambitious "Vision 2030" socio-economic diversification agenda aims to position the Kingdom as a global logistics powerhouse. Leading this charge is SILZ, the developer and operator of the Saudi’s first Special Integrated Logistics Zone, "Riyadh Integrated." Global Business Outlook (GBO) will explain in detail how SILZ Company fundamentally redefines integrated logistics, transforming a national vision into an economic reality for global businesses.

According to the leading market research company IMARC Group, the Kingdom's logistics market size was valued at USD 52.7 billion in 2024. IMARC Group estimates the market to reach USD 81.2 billion by 2033, exhibiting a CAGR of 4.9% from 2025 to 2033.

The sector is rapidly growing due to its strategic geographical location, with the Gulf nation now acting as a global trade hub linking Asia, Europe, and Africa. This prime positioning is being leveraged through major ports like Jeddah and Dammam, further enhanced by the GCC-Africa railway land-bridge project.

"These developments streamline supply chain operations and boost trade volumes. The Kingdom's transportation networks and modern warehousing facilities are continuously expanding, meeting increasing demand for efficient cargo movement across multiple sectors, including automotive, food, and retail," IMARC said.

By transforming Saudi Arabia into a regional and global trade hub, the sector is now directly facilitating economic diversification, attracting Foreign Direct Investment (FDI) and generating widespread employment. Take the Riyadh Integrated Zone, for example, which alone is projected to more than 60,000 jobs, contributing substantially to the Kingdom's national GDP.

The logistics sector's development is also propelling the growth of other critical areas, from light assembly to manufacturing, multiplying its positive impact across the entire national economy. And SILZ is quickly becoming the guiding force behind the sector's transformation as a major growth engine.

Logistics: A Saudi Vision 2030 pillar

In an exclusive interview with GBO, Dr. Fadi Al-Buhairan, SILZ CEO, said, "As the leading developer of integrated logistics zones, SILZ Company is directly supporting the National Transport and Logistics Strategy of Saudi Vision 2030. By building the Kingdom’s first fully integrated logistics hub, it is strategically positioning Saudi Arabia at the crossroads of three continents as a global trade powerhouse. Ultimately, SILZ Company is not just constructing infrastructure; it is building the innovative, partnership-driven ecosystem that will define Saudi Arabia's leading role in the future of global logistics."

Using advanced technology, industry expertise, and smart infrastructure, SILZ Company has set new efficiency and value-chain integration standards. The business now aims to become the global benchmark for logistics zones by enabling sustainable, future-ready supply chains, supporting companies investing in the region, while contributing to the bigger goal: the Kingdom’s economic diversification.

As the developer of Special Integrated Logistics Zones, SILZ Company performs activities like infrastructural master planning and attracts strategic tenants and investors from across the Kingdom. The company also issues construction, operations, and occupancy permits, along with liaising with regulators and key stakeholders. Being the operator of such cutting-edge facilities, SILZ leases land,

pre-built warehouses, and build-to-suit facilities, while operating a full-service "One-Stop Shop." It is also delivering value-added logistics services while ensuring infrastructure performance and compliance.

Formed in 2022, SILZ Company has been driven by values like customer centricity, agile delivery, respectful collaboration, and creative innovation. For any business looking to set up its presence in Saudi-based integrated logistics zones, it gets services from SILZ across fronts like technology, facilities management, and security, apart from value-added ones like telecommunication and ICT, consolidation and advanced logistics, e-government integration, branding, media and advertising, and after-sales support and optimisation.

SILZ’s Company Chairman Awad AlSulami stated that SILZ is focused on establishing a robust foundation for the Kingdom’s future in global trade and logistics.

“As the developer and operator of Riyadh Integrated, Saudi Arabia’s first special integrated logistics zone, SILZ is focused on establishing a robust foundation for the Kingdom’s future in global trade and logistics. Our efforts have centred on initiating the development of world-class infrastructure that aligns with international best practices,” he said.

The ecosystem of integrated logistics

The concept of a logistics-free zone has evolved far beyond mere warehousing. SILZ Company is building a new generation of interconnected logistics hubs based on deep integration and smart technology.

"Riyadh Integrated, the Kingdom’s first free zone, is located just 8 km from King Khalid International Airport and 12 minutes from the King Khalid International Airport Cargo Village. With a focus on light manufacturing, logistics, and trade, it offers a full-service ecosystem including a one-stop shop, value-added services, and competitive incentives like the 50-year tax relief and 100% foreign ownership. It’s built for global industries: ICT, pharma, aerospace, and more," Dr. Fadi Al-Buhairan noted.

The Riyadh Integrated ecosystem has transformed into a connected platform where smart infrastructure, digital solutions, and streamlined government services converge. A pivotal element of this system is the bonded corridor to King Khalid International Airport, which allows for expedited and seamless air cargo movement.

The entire environment is tenant-first, featuring a

one-stop shop for government services, a unified cargo community system, and tailored facilities designed for high-value industries like ICT, pharmaceuticals, and aerospace, across different activities such as light manufacturing, assembly, warehousing, and more. This holistic approach allows businesses to scale quickly and operate with unprecedented agility.

Riyadh Integrated isn't just a logistics park; it is the Kingdom's first Special Integrated Logistics Free Zone (SILZ), established with a unique blend of incentives and advanced infrastructure that sets it apart globally. SILZ's core offerings have been designed to maximise investor value and operational freedom. Apart from incentives like a 50-year tax relief period, 100% foreign ownership, comprehensive VAT and customs exemptions, tenants also enjoy the benefits of relaxed labour laws and a friction-reducing environment.

"The zone provides approximately 2 million square metres of leasable space, including land plots, buildto-suit facilities, and pre-built warehouses. However, its most unique feature is the digital backbone: a smart zoning system providing real-time visibility tools and integrated customs clearance. This technology-driven approach significantly reduces friction, accelerates operations, and ensures a seamless experience for tenants," the CEO added.

Global distinction and strategic edge

While many global zones focus narrowly on either infrastructure or fiscal incentives, Riyadh Integrated distinguishes itself by combining both unparalleled technology and direct connectivity. The bonded corridor to King Khalid International Airport provides a crucial speed and fiscal advantage that enhances its value proposition, particularly for time-sensitive, highvalue goods.

Why is SILZ betting big on Riyadh Integrated? The answer is simple: it's strategic location within the heart of the Kingdom's capital, from where logistics players can access three continents (Asia, Europe, and Africa). Also, not to forget Riyadh's emergence as a fastgrowing urban centre and the Kingdom's expanding aviation network, which is connecting 70% of the global population with the Gulf major through eight-hour flights.

Furthermore, SILZ Company's deep alignment with "Saudi Vision 2030" cements its role as a national champion, ensuring sustained and strong government support. The focused strategy on industry-specific

Cover Story \ SILZ Company

Dr. Fadi Al-Buhairan SILZ CEO

Cover Story

SILZ Company Saudi Arabia

SILZ Company's Tenant Service is engineered to simplify every step of a business’s journey within the logistics free zone. It provides operational agility from day zero through features like expedited licensing and streamlined permitting

ecosystems, from ICT to pharmaceuticals and aerospace, demonstrates a commitment to building a platform for high-value global supply chains, thereby moving beyond generic logistics solutions.

Operational milestones

The transition from strategic vision to tangible achievement has been rapid. Since its launch in 2022, Riyadh Integrated has secured major international tenants, solidifying its position as a preferred Middle East hub. Notable corporate additions in the zone include Lenovo, Sapphire, iHerb/ CJ Logistics, Unipart Logistics, Chalhoub Group, Shein, and Boeing/Bahri Logistics.

Talking about the groundbreaking of Lenovo's new state-of-the-art manufacturing facility at Riyadh Integrated, which happened in 2025, has given a fresh boost to the Kingdom’s manufacturing dreams, as the plant will build millions of Saudi-made laptops and desktops, along with servers.

The manufacturing facility will span across a 200,000 square metre site, strategically located just 15 minutes from King Khalid International Airport within Riyadh Integrated Logistics Zone. The factory will benefit from streamlined logistics, efficient infrastructure, and seamless connectivity, and be closer to customers across the Middle East and North Africa (MENA) region.

This initiative is the result of a strategic collaboration between Lenovo and Alat, an innovative Public Investment Fund (PIF) company committed to transforming global industries and establishing a world-class manufacturing hub in the Kingdom.

Talking about the key operational milestones that SILZ has achieved, mention must be made of the establishment of the first true operational trade zone in the Kingdom, facilitating faster customs clearance and multi-modal cargo movement. The zone has also successfully rolled out the one-stop-shop tenant portal, apart from keeping the delivery of Phase 1

infrastructure on schedule.

These achievements showcase SILZ Company's capability to move swiftly from blueprint to execution, thereby reinforcing its pivotal role in Saudi Arabia's integrated logistics transformation.

SILZ Company's Tenant Service is engineered to simplify every step of a business’s journey within the logistics free zone. It provides operational agility from day zero through features like expedited licensing and streamlined permitting, dedicated account managers, and 24/7 digital service portals.

"For companies looking to leverage Saudi Arabia's vast and growing market, this translates to faster import and export processing, significantly reduced supply chain costs, and immediate access to global partners co-located within the zone. By actively removing operational barriers, SILZ Company enables businesses to focus entirely on their core objectives: growth and innovation," Dr. Fadi Al-Buhairan asserted.

Following the official inauguration of Phase 1 infrastructure of the Riyadh Integrated Project, Egis, a global leader in architecture, construction engineering, consulting, and operations and maintenance services, announced serving as a Package Administration and Supervision Consultant (PASC) at Riyadh Integrated.

Egis will contribute to the oversight of critical infrastructure works that form the backbone of Riyadh Integrated, in collaboration with other supervision partners. This includes a comprehensive network of roads, utilities, landscaping, perimeter fencing, utility buildings, and key enabling works, all planned and delivered with long-term scalability and operational efficiency in mind.

What's next for SILZ Company?

As per the global property consultancy Knight Frank, more than 1.3 million sqm of new warehouse space was delivered in the first half of 2025 as Saudi Arabia’s

industrial and logistics sector experienced double-digit rental growth and near-full occupancy across its major cities.

Riyadh reinforced its position as the Kingdom’s main logistics hub in H1, with warehouse stock increasing by 3.5% to 28.9 million sqm, while the Saudi capital's industrial and manufacturing facilities expanded by 1.4% to 16.2 million sqm.

Against this backdrop, SILZ Company is all set to ramp up logistics further. Its game-changing works at Riyadh Integrated haven’t gone unnoticed either, as the venture got nominated for four prestigious industry awards recognising its outstanding achievements in logistics operational efficiency, advanced infrastructure, and technological innovation.

At the prestigious Saudi Logistics Awards 2025, SILZ Company was awarded top honours in three of the four nominated categories: “Logistics Hub of the Year,” “Logistics Real Estate Company of the Year,” and a highly commended “Logistics Leader of the Year” awarded to CEO Dr.

Fadi Al-Buhairan, emphasising SILZ Company’s commitment to transforming Saudi Arabia’s logistics landscape and solidifying its position as a global integrated logistics hub, in alignment with Saudi Vision 2030.

SILZ Company, which has disrupted the Kingdom’s logistics sector by leveraging advanced smart systems for cargo tracking, digital documentation, and smart zone management, looks committed to continuous improvement and strategic expansion. As it perfects its operational playbook in Riyadh Integrated, the company is already laying the groundwork for future zones, extending its transformative impact across the Kingdom.

SILZ

Company is all set to ramp up logistics further. Its game-changing works at Riyadh Integrated haven’t gone unnoticed either, as the venture got nominated for four prestigious industry awards recognising its outstanding achievements in logistics operational efficiency, advanced infrastructure, and technological innovation

Cover Story \ SILZ Company

Industry Change Fatigue

Analysis

The cost of change fatigue in modern work

GBO Correspondent

Corporate finance is the one area where change fatigue is most evident

The idea that "change is the only constant" was first put forth by the Greek philosopher Heraclitus, who lived before Socrates. However, the rate of change in today's business environment frequently appears to be faster than executives' and their teams' ability to adjust.

The phenomenon known as "change fatigue," which is hardly a fad driven by HR, can have a negative impact on the bottom line through decreased productivity, workforce turnover, and employees' diminished capacity to adjust to additional change.

According to Hilary Richards, vice president and analyst in the finance practice at consulting firm Gartner, based in Stamford, Connecticut, executives should "be treating change fatigue as a business risk."

When it comes to implementing new technologies or responding to external changes, the majority of businesses seem to be constantly changing.

According to a survey conducted by San Franciscobased software-as-a-service company WalkMe, more than 75% of businesses update their business models every two to five years. Corporate finance is the one area where change fatigue is most evident.

When a business adopts enterprise resource planning, digital transformations, and artificial intelligence (AI), finance departments take on a variety of new strategic roles.

As per Richards, CFOs are tasked with managing cash, promoting growth, and implementing process changes. However, the WalkMe study indicates that only one-third of corporate change initiatives are considered successful.

Around 8% of US healthcare spending is related to workplace stress, and two-thirds of employees report burnout during transformation drives.

A recent survey from Orgvue, a platform for organisational design and planning with headquarters in London, found that around 38% of CEOs would prefer to resign rather than oversee a significant change.

Change fatigue

Jenny Magic, founder and CEO of Build Better Change, a consultancy based in Austin, Texas, and co-author of "Change Fatigue: Flip Teams From Burnout to Buy-In," notes that her clients' capacity to adjust to change started to decline in 2017.

She remembers, "Middle managers and the people who do the work were less capable of carrying it out, even though top leadership was interested." Her firm's most recent report "validates that things are not getting better."

“The average employee experienced 10 planned enterprise changes in 2022, up from two in 2016, and there is no reason to expect the pace to slow. But the workforce has hit the wall; the share of employees willing to support

enterprise change collapsed to just 38% in 2022, compared with 74% in 2016,” a Gartner report notes.

In response, some companies are coming up with innovative solutions; examples include relative upstarts and corporate behemoths like Danone and Liberty Mutual. Businesses are also opting between hiring change management consultants from reputable consultancies or from niche, up-and-coming rivals.

Apart from offering executive advice, these more well-known experts also conduct conferences, conduct training, and write articles like "Three Ways to Minimise Change Fatigue Among Financial Teams."

Large-scale transformation, done better

Consultants advocate for solutions that tackle two types of change: accumulative change and large-scale transformation. Larger scope and faster speed are typically preferred in major initiatives. However, there are indications that more gradual solutions may be less traumatic and more effective.

These initiatives are typically put into place in response to significant outside events, like a sharp decline in the economy, the COVID-19 pandemic and its aftermath, or significant technological advancements like AI. However, Orgvue CEO Oliver Shaw contends that this may be a reflection of antiquated thinking.

“Change came along a lot less frequently, even a couple of decades ago. Executives developed impulses, to act: ‘Change is needed now!’ As a banker who lived through the 2008 financial crisis, I thought at the end of that, I would never see anything like it again,” he said.

Events that used to be considered unique, now seem commonplace. Shaw argues that in a world that is constantly changing, full-bore transformation might be too harsh. Risks include high severance pay and additional expenses associated with widespread layoffs.

According to Orgvue's data, Fortune 500 companies that experienced significant workforce restructuring in 2023 paid out $32.7 billion in severance pay that year and carried over an additional $10.9 billion in charges or liabilities into 2024.

A 2024 Bloomberg study of Securities and Exchange Commission listings found that additional costs of dumping workers include decreased productivity (roughly six months), a rise in voluntary departures,

Approximately 71% of employees feel overwhelmed by the amount of change at work

Around 32% of change-fatigued employees say they feel less productive, and 48% report feeling more tired at work due to excessive workplace changes

Nearly 73% of employees impacted by organizational change experience moderate to high change fatigue

On average, change-fatigued employees perform 5% worse than the average employee

83% of change-fatigued employees feel their employer does not offer enough tools to support their adaptation to workplace changes

Source: Capterra/Gartner

higher unemployment insurance taxes, and higher legal fees, primarily to avoid lawsuits over accusations of discrimination.

In order to avoid expensive, reactive, and high-risk transformation projects, Danone adopted a different strategy when considering a significant change.

As highlighted in an Orgvue case study, this was achieved by using a "continuous design approach to organisational development."

To better monitor labour demand and supply, the Paris-based multinational food and beverage company reduced its planning period from annual to quarterly and redesigned its human resources procedures rather than eliminating jobs. Shaw claims that they were able to understand how to make adjustments over time.

Like any disease, prevention is sometimes the best "remedy." In 2023, the Swedish payments fintech Klarna sought to cut costs by outsourcing roughly 500 jobs across 10 markets to two partner companies, thereby reducing trauma through layoffs.

Internally, it started a campaign to embrace costcutting AI and put a stop to hiring. Shaw observes, "They are using AI to increase their margins."

Companies with leaders who "understand organisations as systems" include Danone and Klarna. Shaw claims that if the typical company has an attrition rate of 15%, it should be able to use that in conjunction with internal reassignments to make significant reductions without causing undue stress.

Slow down now, speed up later

San Diego-based broker C3 Risk and Insurance Services plunged into what initially appeared to be an extremely challenging and intricate integration process following a merger. Employees were worried about their futures at the company. On the technology to use, no one could agree.

In order to aid in the process, Imperio Consulting, based in Florida, brought in Eric Brown, its founder and CEO. As a former member of the United States Special Forces, Brown utilises his experience in his work. Instead, the US military refers to it as "operator syndrome."

Uncertainty and constant pressure can deplete people.

“The corporate world mirrors that experience in many ways, especially in finance, with its tech overload, unpredictable markets, and ever-changing regulations. It’s like trying to stay steady on shifting sand, and it can be exhausting," he said.

"We should slow down now so we can speed up later," Brown remembers saying to a client. Soldiers perceive it as a "crawl, walk, run" pattern.

With support from C3's senior leadership, Brown was able to use team-building activities and resources to help integrate that strategy into the integration plan.

He said, "They took it to heart," spending money on staff training and communication.

“Both the San Diego Business Journal and Business Insurance named C3 a top place to work in 2023 and 2024. C3 is a rock star," Brown continues.

C3’s experience also points up the need to address the second of the two types of change fatigue that consultants identify, namely the accumulation of small changes. The structural integrity of an organisation may eventually be threatened by them, much like water that accumulates behind the figurative creaky dam.

Gartner observes that the almost constant accumulation of relatively minor changes that impact job descriptions, team composition, and managerial strategies has made employees feel more stressed. When changes are implemented top-down without discussion or debate, employees feel disempowered. To prevent 1,000 fatiguerelated cuts, Liberty Mutual developed a procedure to identify workers' assumptions and fears. Analysis

The initial questions were designed to assist employees in embracing change. Employee engagement and feedback, along with change workshops, were among the tools. These kinds of programmes can aid in addressing issues that are hidden beneath the surface.

“Most of the senior C-suite focuses on the tip of the iceberg. It’s what they’re paid for. But your team will run into that iceberg," Richards concluded.

Body heat: The next big source?energy

What if we were to say that the heat produced by the human body is also a waste product of our metabolism? According to a study from the Cornell University Ergonomics Web, every square foot of the human body emits heat equivalent to about 19 matches per hour. However, much of this heat escapes into the atmosphere.

According to Muhammad Muddasar, PhD candidate at the School of Engineering, University of Limerick, this heat can be

harnessed to produce energy. While his research has shown it is possible, Muddasar and his colleagues are working on methods to capture and store body heat for energy generation using eco-friendly materials.

The aim is to develop a device that generates energy and stores it, essentially functioning as a built-in power bank for wearable technology. By tapping into body heat as a power source, this innovation could dramatically extend the battery life of devices like smartwatches, fitness trackers, and GPS units, potentially allowing them to

The aim is to develop a device that generates energy and stores it, essentially functioning as a built-in power bank for wearable technology

Source: International Energy Agency

operate for days, weeks, or indefinitely without recharging.

"It isn’t just our bodies that produce waste heat. In our technologically advanced world, substantial waste heat is generated daily, from the engines of our vehicles to the machines that manufacture goods," he said.

What Muddasar is trying to achieve

According to PhD candidate Muddasar, "Typically, this heat is also released into the atmosphere, representing a significant missed opportunity for energy recovery. The emerging concept of waste heat recovery seeks to address this inefficiency. By harnessing this otherwise wasted energy, industries can improve their operational efficiency and contribute to a more sustainable environment."

Muddasar identified the "thermoelectric effect" as a phenomenon that can help turn the heat mentioned above into electricity. All it requires is a temperature difference that will generate an electric potential as electrons flow from the hot side to the cool side, creating usable electrical energy.

Thermoelectricity is a two-way process. It can refer to how a temperature difference between the two sides of a material generates electrical power, or to the reverse. In the reverse process, applying an electric current through a material can create a temperature difference between its two sides, which can be used to heat or cool things without combustion or moving parts. This is a field in which MIT (Massachusetts Institute of Technology) has been doing pioneering work for decades.

Muddasar explains that conventional thermoelectric materials are often made from cadmium, lead, or mercury. These materials come with environmental and health risks that limit their practical applications. However, he has found a solution in the form of wood, which is a safer and more sustainable alternative, to give his "waste heat production" idea a concrete form.

"Wood has been integral to human civilisations for centuries, serving as a source of building materials and fuel. We are uncovering the potential of woodderived materials to convert waste heat, often lost in industrial processes, into valuable electricity," he explained, reiterating that this approach will enhance energy efficiency and redefine how we view everyday materials as essential components of sustainable energy solutions.

In collaboration with the University of Valencia, Muddasar's team at the University of Limerick has already developed a sustainable method to convert waste heat into electricity using Irish wood products, particularly lignin, a byproduct of the paper industry.

Speaking about the material, the International Lignin Institute states, "Lignin is an organic substance that binds the cells, fibres, and vessels that constitute wood and the lignified elements of plants, such as straw. After cellulose, it is the most abundant renewable carbon source on Earth. Between 40 and 50 million tons per year are produced worldwide as a mostly non-commercialised waste product. As a natural and renewable raw material, obtainable at an affordable cost, lignin's substitution potential extends to any products currently sourced from petrochemical substances."

“Our study shows that lignin-based membranes, when soaked in a salt solution, can efficiently convert low-temperature waste heat (below 200°C) into electricity. The temperature difference across the lignin membrane causes ions (charged atoms) in the salt solution to move. Positive ions drift toward the cooler side, while negative ions move toward the warmer side. This separation of charges creates an electric potential difference across the membrane, which can be harnessed as electrical energy,” the research body noted.

Since around 66% of industrial waste heat falls within this temperature range, this innovation presents a significant

opportunity for eco-friendly energy solutions.

The new technology has the potential to make a big difference in many areas. Industries such as manufacturing, which produce large amounts of leftover heat, could see major benefits by turning that waste heat into electricity. This would help them save energy and reduce their impact on the environment.

This technology could be used in various settings, from providing power in remote areas to powering sensors and devices in everyday applications. Its ecofriendly nature makes it a promising solution for sustainable energy generation in buildings and infrastructure.

The trouble with storage

According to Muddasar, capturing energy from waste heat is just the first step; the most critical challenge lies in effectively storing the end product. One option could have been supercapacitors—energy storage devices that rapidly charge and discharge electricity, thus becoming an essential tool for applications requiring quick power delivery.

A supercapacitor is a battery-like device that stores and releases electricity. Instead of storing energy in the form of chemicals, supercapacitors store electricity in a static state, making them better at rapidly charging and discharging energy.

Additionally, supercapacitors don’t degrade in the same way as lithium-ion batteries, which improves the lifespan of electric vehicles and reduces the environmental impact of lithium-ion power cells. Supercapacitors enjoy a clear advantage over lithium-ion and nickel-cadmium batteries due to their ability to charge and discharge rapidly.

However, Muddasar believes that to capture energy from waste heat and store it, a supercapacitor is not the ideal option because its reliance on fossil fuel-derived carbon materials raises sustainability concerns, underscoring the need for renewable alternatives in its production.

"Our research group has discovered that lignin-based porous carbon can serve as an electrode in supercapacitors for energy storage generated from harvesting waste heat using a lignin membrane. This process allows the lignin membrane to capture and convert waste heat into electrical energy, while the porous carbon structure facilitates rapid movement and storage of ions. By providing a green alternative that avoids harmful chemicals and reliance on fossil fuels, this approach offers a sustainable solution for energy storage from waste heat," he concluded.

Space42 to build UAE’s first Mobility Cloud

UAE-based Space42 is now building the first Sovereign Mobility Cloud for the Gulf country through its Sovereign Public Cloud, based on Microsoft Azure. This solution will help deploy autonomous mobility solutions faster and keep data hosted and compliant with national regulations, as announced on the sidelines of the Dubai World Congress (DWC).

The Sovereign Mobility Cloud will give the UAE a sovereign-enabled platform for intelligent transport. At its core, the cloud will provide a trusted infrastructure for mobility data and autonomous systems; critical platforms for HD mapping, telematics, fleet operations, traffic management, and digital twins; and a secure platform for data sharing across government, industry, and research stakeholders.

The initiative will also establish reference

deployments, regulatory sandboxes, and test hubs with UAE transport authorities, while engaging global automotive, technology, and academic partners to scale the ecosystem. The programme will allow Space42 to lead application deployment, liaise with regulators, and drive adoption through pilots, demonstrations, and commercial rollouts.

The initiative will also establish reference deployments, regulatory sandboxes, and test hubs with UAE transport authorities

Autonomous driving player Momenta mulls HK for IPO

Amid ongoing US-China geopolitical tensions, Chinese autonomous driving developer Momenta is considering shifting its IPO to Hong Kong from New York, according to Reuters. If the news proves true, then Momenta will join the growing list of Chinese companies opting to debut in the Asian financial hub.

The potential change in Momenta's listing venue comes after the expiration, in June 2025, of an approval by China's securities regulator to list in the United States, which was granted in mid-2024.

Momenta is a leading Chinese supplier of advanced driverassistance system features, similar

to Tesla's self-driving technology, that can navigate urban traffic under human drivers' supervision. The company recently informed some of its investors its plan to potentially list in Hong Kong in 2026, the Reuters report claimed, adding that things are at an early stage and may change with the evolving geopolitical situation.

The possible shift in Momenta's listing venue underscores Hong Kong's position as the primary offshore fundraising venue for Chinese companies amid Washington's continued threat to delist Chinese firms from American exchanges.

The company, backed by Toyota Motor and German auto supplier Bosch, is also reportedly working on a pre-IPO fundraising round.

Nigeria halts TotalEnergies' asset sale

French energy major TotalEnergies' plan to sell mature, polluting assets and pay down debt has suffered a setback, as its sale of a minority stake in a Nigerian onshore oil producer has fallen through. TotalEnergies agreed in July 2024 to sell its 10% stake in Shell Petroleum Development Company of Nigeria Limited (SPDC) to Mauritius-based Chappal Energies, one of a wave of divestments by oil majors in recent years of onshore Nigerian oil assets.

However, regulatory approval for the sale, granted in October 2024, has now been withdrawn because the two sides have not met the financial commitments

required to complete the deal, according to Eniola Akinkuoto, spokesperson for the Nigerian Upstream Petroleum Regulatory Commission.

According to reports, while Chappal failed to raise the $860 million, TotalEnergies did not fulfil its requirement to pay regulatory fees and cover funds for environmental rehabilitation and future liabilities.

TotalEnergies is now burdened with its stake in a business that has faced numerous oil spills due to theft, sabotage, and operational issues, leading to expensive repairs and high-profile lawsuits.

Saudi Arabia halts Riyadh rent hikes

Saudi Arabia has imposed a five-year freeze on rent increases for residential and commercial properties in Riyadh to stabilise housing costs and ensure fairness between landlords and tenants, according to new regulations approved by the Council of Ministers and enacted through a royal decree.

The new rules, which went into effect on September 25, 2025, now prohibit rent increases for five years in existing or new contracts within Riyadh's urban boundary, and the framework may be applied to other cities and governorates as necessary, as determined by the Real Estate General Authority with the approval of the Council of Economic and Development Affairs.

Any vacant properties in Riyadh will be assigned a fixed rent at the level of the most recently registered contract. For units that have never been rented, landlords and tenants can negotiate the initial rent freely.

All contracts must be registered on the “Ejar” platform, and landlords or tenants have 60 days to object, after which the contract data will be considered final and binding. Automatic renewals will also be standardised. Lease agreements will renew automatically across the country.

Digital Wallets

Analysis

Cashless future: How digital wallets are taking over

GBO Correspondent

Although digital wallets are becoming more popular globally, adoption rates differ greatly by geographic location

Global business has historically relied on cash, but in an era of fast digital acceleration, its supremacy is no longer assured. Contactless transactions, digital wallets, and mobile payments are revolutionising the way individuals and organisations exchange money. The debate is no longer about whether a cashless future is imminent, but rather how soon it will happen and what obstacles it will present, as governments and financial institutions are spearheading digital innovation.

Digital wallets are changing how businesses and consumers transact. Juniper Research projects that there will be 5.8 billion digital wallet users globally by 2029, a substantial 35% increase from the 4.3 billion users in 2024. This increase highlights how cashless transactions are becoming more common.

The rise of e-commerce and government-sponsored programmes is speeding up the adoption of digital payments in highgrowth areas, where this trend is especially noticeable. Digital wallets are replacing physical cash as the main payment method throughout Asia-Pacific and Latin America, transforming financial ecosystems. Central banks are also investigating digital currencies (CBDCs) as a supplement or possible replacement for conventional monetary systems.

A crucial question that arises as digital payment networks expand is how financial systems can balance innovation, security, and accessibility in a rapidly digitising world.

Digital wallets: The new normal Digital wallets, formerly a specialised technology, have quickly taken over as the preferred payment mechanism for millions of people worldwide, changing the face of commerce. As consumer preferences shift toward seamless digital transactions, mobile payment solutions are becoming increasingly common in everyday life.

Digital wallets are becoming more popular in the US over conventional payment methods. According to Capital One, 64% of Americans use digital wallets just as frequently as cash or conventional cards, and 53% of Americans now prefer them. In high-growth economies around the world, the trend is even more noticeable.

According to the Global Payments Report, digital wallets, which account for 21% of regional e-commerce transactions in 2023, are the payment method with the fastest growth rate in Latin America.

The question of whether digital wallets will completely replace cash or if a hybrid payment system will persist is becoming increasingly pressing as these technologies become more integrated into international financial networks. The prospect of a cashless future is a significant consideration for all stakeholders in the financial sector.

Reason behind the rise of digital wallets

What is the reason behind the growing popularity of digital wallets? It is driven by developments in financial technology,

convenience, and security.

The ability to pay with a tap or a scan instead of cash or credit cards is becoming increasingly popular among consumers. Additionally, digital wallets are being integrated more widely into retail and e-commerce transactions, streamlining the payment process across all sectors.

Central Bank Digital Currencies (CBDCs) are also affecting this change. The Atlantic Council reports that 134 nations, or 98% of the world's GDP, are investigating CBDCs, indicating a shift toward the widespread use of digital currencies. Additionally, customers are moving away from cash and toward digital alternatives that offer secure payment methods and immediate access to funds as mobile banking infrastructure grows.

The global growth of digital wallets

According to Worldpay’s 10th Global Payments Report, by 2030, digital wallets are expected to comprise more than half (52%) of e-commerce transaction value and 30% of pointof-sale transaction value. By contrast, the report predicts

Source: Worldpay Global Payments Report

that credit cards will comprise only 22% of e-commerce transaction value and 32% of point-of-sale purchases in 2030, down from 40% of online purchases and 48% of point-of-sale purchases in 2014.

However, cards continue to remain a critical part of digital wallet usage in America and abroad. The report further notes that seven in ten digital wallets in the world’s largest economy are funded by cards, tied with Australia (70%) and followed by the United Kingdom (67%), India (56%), Brazil (53%), and China (46%). Cash usage has been declining in the United States and will continue to drop in the coming years.

Although digital wallets are becoming more popular globally, adoption rates differ greatly by geographic location. In Sweden, where cash is used in less than 10% of transactions, some stores have stopped accepting actual currency, hastening the country's shift to a culture that is almost entirely cashless.

With 969 million active users as of mid-2024, China remains at the forefront of mobile payments. Cash is becoming a less common means of payment as mobile payments accounted for 73.2% of consumer transactions in 2023.

These two economies serve as examples of how government regulations, consumer

behaviour, and financial infrastructure influence the pace at which various nations are adopting digital payments.

As cashless infrastructure is expanded across Asia-Pacific through governmentled efforts, digital wallets continue to rise in popularity. Thailand has launched a digital wallet stimulus programme to encourage digital purchases, while Singapore and other nations have promoted the adoption of cashless transactions through focused initiatives like “Hawkers Go Digital.”

Additionally, by expanding infrastructure and reforming policies, several regional governments are strengthening cashless ecosystems. According to SilkPay, more than 40% of international e-commerce transactions will take place through digital wallets by 2025.

Digital wallets: Risks rise

Threats to cybersecurity, such as identity theft, financial fraud, and data breaches, continue to be major issues. Since digital wallets hold private financial data, hackers are always looking for ways to access them.

Financial institutions and payment processors are making significant investments in biometric authentication, AI-driven fraud detection, and real-time transaction monitoring to address these problems. Global security standards are reinforced by regulatory frameworks like Know Your Customer (KYC), the PSD2 guideline from Europe, and anti-money laundering (AML) laws.

Protecting their digital wallets is another responsibility of consumers. Kaspersky cybersecurity experts caution that using public Wi-Fi without authorisation, creating weak passwords, and falling for phishing scams are all serious risks. It is advised that users enable two-factor authentication (2FA) and monitor their accounts for unusual activity. Top 10 countries with the highest digital wallet penetration in 2024 (In Percentage)

Can cash survive the digital age?

It seems doubtful that cash will completely disappear very soon, even as digital wallets are transforming how payments are made. For unbanked and underbanked people, cash is still crucial to financial inclusion, especially in rural and developing regions. Cash transactions, in contrast to digital payments, are untraceable, providing anonymity that consumers concerned about data tracking or surveillance value. Cash also acts as a fallback in case digital payment systems fail due to natural catastrophes, cyberattacks, or power outages.

Other nations, like Germany and Japan, nevertheless place a higher priority on using cash because of consumer preference and economic stability, even if Sweden is quickly approaching a cashless society.

Payments of the future

The trend toward digital payments points to a gradual shift rather than cash's sudden demise. According to PYMNTS research, 86% of consumers in major economies are now familiar with digital wallets, yet many still use a combination of traditional and digital payment methods.

Regulators are looking into methods to keep digital payments inclusive and accessible in light of this changing environment. For instance, the European

Central Bank is evaluating how a digital euro may supplement currency and guarantee financial inclusion for people who would find it difficult to adapt to completely digital transactions.

Ensuring inclusivity, security, and accessibility will be essential to the longterm viability of digital wallets as they evolve. The financial landscape will be further shaped by emerging technologies such as decentralised finance (DeFi), blockchain-based payments, and nextgeneration near-field communication (NFC) advancements.

To create robust digital ecosystems that can adapt to changing customer demands, financial institutions, technology companies, and regulators must work together. How they will handle a world where digital and traditional payments coexist is the fundamental question, not just whether cash will go extinct.

The shift to digital wallets is accelerating globally, driven by technological advancements, convenience, and growing government support. While cash still holds relevance in some regions, the future of payments will likely be dominated by digital solutions.

For unbanked and underbanked people, cash is still crucial to financial inclusion, especially in rural and developing regions. Cash transactions, in contrast to digital payments, are untraceable, providing anonymity that consumers concerned about data tracking or surveillance value

Robinhood

The notorious confetti feature of Robinhood was one of the warning signs that initially raised awareness of the gamification problem

The gamification of withinvesting Robinhood

The most important element in creating wealth is investing in assets that provide income. Stocks primarily form the foundation of many retirement accounts. Regretfully, in 2021, roughly 56% of Americans owned stocks.

Robinhood has attempted to promote more stock market participation by incorporating game-like elements into its trading software. It operates in this manner to promote the goal of "making finance accessible to everyone."

While it sounds great, the gamification of investing encourages tactics that work better for brokerages than for investors. This is all the information you need to understand the procedure, including how it operates, why it's risky, and how to stay safe.

What does investing gamification entail?

Adding features to investment apps that improve the user experience by making it more interesting, intuitive, or aesthetically pleasing is known as the "gamification of investing." The goal is to make trading stocks more enjoyable for the customer, like playing a video game.

On the other hand, imagine a dull black-and-white screen covered in financial jargon and unintelligible indicators. Such a user interface, daunting to those unfamiliar with it, is likely to deter potential investors. GBO Correspondent

Banking & Finance

The animation received so much negative feedback that Robinhood eventually took it off its app. Ironically, they completely missed the meaning and substituted floating geometric designs for the confetti

An approachable and friendly investing app may seem like a beneficial thing. In theory, it might be helpful, but there are certain limitations. In reality, many gamification elements border on deception and manipulation, which can diminish the experience.

Because of this, the practice has drawn criticism, and authorities are stepping in. The public was formally asked to provide feedback on investing gamification and "digital engagement practices" by the Securities and Exchange Commission (SEC).

The Financial Industry Regulatory Authority (FINRA) has indicated that it would like to follow suit. Both agencies wish to determine whether regulatory action is required to safeguard consumers from the dangers these practices pose.

In a more severe move, Massachusetts Commonwealth Secretary William Galvin accused Robinhood of utilising "aggressive tactics to attract new, often inexperienced investors" and "gamification strategies to encourage and entice continuous and repetitive use of its trading application."

Gamified investing trends

The risks associated with investment gamification are difficult to convey as a mere theoretical concept. Let's examine some of the real procedures that platforms like Robinhood are putting in place to bring things a bit closer to reality.

The notorious confetti feature of Robinhood was one of the warning signs that initially raised awareness of the gamification problem. Earlier iterations of the programme reinforced the notion that every deal was a cause for celebration by letting confetti fall across your screen after each trade.

In actuality, increasing the number of trades you make is an excellent way to lose money. The average investor is frequently far better off adopting a less aggressive investing strategy, and stock traders nearly always lose.

The financial services sector faces

heavy regulation for good reason. People frequently risk losing the money they use to pay for their children's education, put food on the table, and fund their retirements.

Disclosure requirements are a major component of such legislation. For this reason, payday lenders must disclose that their prices are not long-term viable, and publicly traded corporations must provide disclaimers with their financial statements.

Unfortunately, playful game-like interfaces rarely accommodate these kinds of acknowledgements. In a world where individuals rarely read terms and conditions, this poses a significant risk. Customers are unlikely to take important information seriously unless providers make it easily accessible.

Prioritising trending stocks

The emphasis on trending stocks is among the most hazardous aspects of gamification. Apps frequently show the stocks with the biggest price changes, whether positive or negative, much like you would see the top ten scorers in a competitive video game.

These lists funnel investors into a volatile handful of stocks that are far from guaranteed to be profitable, even though there are many investment options available today. Indeed, they are frequently the most overbought equities on the market.

These lists encourage terrible investing practices, particularly among younger investors who are more susceptible to manipulation. In their constant pursuit of the newest and most exciting opportunities, they may end up investing heavily in a stock simply because it moved more than others that day.

Research has shown that attentioninduced trading negatively affects Robinhood users. The top equities bought every day had a dismal average 20-day return of -4.7%.

Lottery rewards

These apps use lottery systems to encourage behaviour that may not be optimal for you.

They can further numb users to the hazards involved by making the experience feel more like gambling than investing.

“For instance, I recently received an email from Coinbase regarding their most recent sweepstakes. Eight lucky winners will receive prizes totalling $500,000. You only need to make a trade of $100 or more to be eligible for the sweepstakes,” Certified Public Accountant Nick Gallo wrote in a blog for Finmasters.

Even though you have little chance of winning, it's still a tactic to persuade you to trade more frequently, particularly if you're a novice trader afraid to start. Of course, buying or selling will cost, but they don't mention that.

It's time to address the core of the issue. Why do regulators suspect that these gamification approaches drive less than honourable goals? And what weakness are these strategies aiming for that makes them so sneaky?

Maintaining independence from clients to prevent conflict of interest is a major concern in the auditing industry.

The financial sector needs to be regulated to manage competing interests, as people often prioritise maximising their profits when money is involved. This issue is evident in the broker-investor relationship, where their interests sometimes conflict. The broker's most profitable approach is often the investor's least profitable, and vice versa.

This was previously the case with commissions; brokers received a payment for each trade, motivating them to encourage frequent trading. However, this increased the likelihood of investors losing money, as short-term stock trading is difficult and long-term stock trading is almost impossible.

A study of eToro users showed that 80% of active traders lost money, with an average return of -36.3% over 12 months. Additionally, if someone receives benefits from a company, they may be biased in their assessment of the company's financial statements, as there is a financial incentive to endorse them.

Banking & Finance

As you can imagine, video game players are typically not affluent homeowners in their 50s and 60s. Around 21% of video game players are younger than 18 years old, and 38% of gamers are between the ages of 18 and 34

The order payment flow model On most modern free trading platforms, trade commissions are no longer a concern. But because of the contentious payingfor-order-flow mechanism, the brokerinvestor conflict of interest still exists. In the simplest terms possible, this is how it operates.

A third-party "market maker" receives your request when you place an order with Robinhood. By facilitating the transaction, the market maker makes money off the discrepancy between Party A's purchase price and Party B's sale price. The market maker then gives Robinhood a share of those gains.

“Let's say you wish to sell a portion of your Stock A holdings. You place the order through Robinhood, and they forward it to a market maker. The market maker simultaneously sells one of your shares to another party for $100.10 and purchases yours for $100. After keeping $0.10 for themselves, they reimburse Robinhood $0.03 for shipping your order,” Gallo explained.

This method generates about 80% of Robinhood's profits. Although it enables commission-free trading, it has drawn criticism for creating several conflicts of interest between investors and brokers. The most relevant aspect of this issue is that it incentivises brokers to increase trading volume.

“Order flow payment is sufficiently troublesome that the SEC may decide to outright prohibit it. I would be negligent if I did not mention that one of its most prominent and early proponents was the notorious Ponzi schemer Bernie Madoff,” Gallo noted.

Targeting younger investors

Targeting vulnerable groups is a defining characteristic of predatory financial strategies. Payday lenders establish themselves in low-income areas, internet scammers prey on the elderly, and gamification strategies target younger investors.

As you can imagine, video game players

are typically not affluent homeowners in their 50s and 60s. Around 21% of video game players are younger than 18 years old, and 38% of gamers are between the ages of 18 and 34.

Since the audience is most accustomed to certain interfaces, gamification approaches work very well with them. You won't be surprised to hear that, with a median age of 31, almost 40% of Robinhood users are between the ages of 19 and 34. Those figures seem uncannily similar.

Regrettably, young individuals inherently lack investment experience. Brokers that wish to promote active trading will find them ideal targets when you mix their inexperience with the greater risk tolerance that results from a lengthy time horizon and the bravado of youth.

How to guard against manipulation

Businesses and individuals will continue to use deceptive methods to take advantage of your need to invest, even if regulators take action to stop the gamification of investment. In the end, you alone can be in charge of your own safety.

Gallo, while comparing financial predators' market behaviour to that of a pack of wolves pursuing the slowest deer in the herd, said, “There are numerous ways to be vulnerable, but one of the easiest to take advantage of is ignorance. One of the best ways to avoid manipulation is to learn about the most reliable investment methods and the most popular asset classes.”

A person who is aware that active trading is extremely risky, for instance, has already protected themselves against the main hazard that the gamification of investing presents. Your confidence in your capacity to make wise judgements will grow as you gain more knowledge about investing, and predators will find it increasingly difficult to defraud you of your money.

"It's a marathon, not a sprint" is a common saying in the banking industry. That is true for a lot of things, but nothing more so than investing, where discipline,

patience, and consistency are essential.

Think about the stock market, for example. Examining the returns of the S&P 500 Index in any given year reveals terrifying volatility. In 1974, it fell 8.78%, and in 1975, it increased by 37%. In 2008, it fell 36.55%, but in 2009, it rose 25.94%.

You don't have a fantastic chance of selecting a winning year. Even worse are your chances of selecting a winning day, week, or month. However, the risk decreases if you adopt a longer-term outlook.

Over a five-year horizon, the top returns reached 30%, while the worst returns fell to -6.6%. Over ten years, returns ranged from a high of 20% to a low of 3%. For a 15-year period, the best returns were 15%, whereas the worst stood at 3.7%.

Finally, over a 20-year span, returns varied between 18% at their peak and 6.4% at their lowest.

As you can see, the longer you remain committed, the higher your chances of success. When choosing an investment strategy, keep that in mind and be wary of other offers.

The thing that will most likely destroy you is making rash judgements when you have a solid understanding of investment and have developed a wise long-term plan. That usually means becoming fearful or greedy. For instance, the excitement surrounding the newest and best cryptocurrency

is too alluring. Despite your inability to resist, you invest in it right before the bubble bursts.

“You sell everything before the market bottoms out because you're afraid of missing the ride back to the top when the stock market crashes. These are ancient stories. The dread of missing out or losing what we have created can affect anyone. I've discovered that avoiding these traps completely is the best approach to keep yourself from falling for them,” Gallo added.

When the stock market is collapsing, don't watch your asset balances decline because it will simply make you angry. Be careful who sells you items, because they may be too nice to pass up.

The rise of trading apps like Robinhood has opened the stock market to millions of new users, but it has also changed how people think about investing. By turning trading into a game, these platforms make risky behaviour seem harmless and even fun.

The problem is that frequent trading usually benefits brokers more than investors. True wealth grows through patience, education, and steady investment, not through chasing trends or prizes. Investors should be careful, stay informed, and remember that financial success takes time. The safest strategy is to understand the market and avoid being guided by excitement or fear.

The rise of trading apps like Robinhood has opened the stock market to millions of new users, but it has also changed how people think about investing. By turning trading into a game, these platforms make risky behaviour seem harmless and even fun

Banking & Finance

Wealth Management

Analysis

Young investors rewrite wealth management rules

GBO Correspondent

AI-powered hyperpersonalisation has become the new standard in wealth management

The age-old financial practice of building and managing wealth is transforming, driven by financial priorities and the digital-first mindset of millennials and Generation Z (Gen Z). These techsavvy investors, aside from adapting to the changing economic landscape, are also actively reshaping it.

These new-age investors, guided by technology, are showing an appetite for alternative investments and a strong commitment to values-based investing as they set new standards for wealth management. The real challenge for the financial industry is not whether it will change its operations based on these "new expectations," but how swiftly it can adapt to remain competitive.

The digital-first revolution

Today's young investors, born into a world of smartphones and instant gratification, now expect advanced digital experiences. Recent data shows that 74% of them have set a new standard for the industry.

According to 2024 research from FNZ, ThoughtLab, and Deloitte, "The democratisation of wealth management is transforming the industry, offering both retail and mass affluent investors more options for growing their returns and managing risk. Personalised services and advice, once reserved for the wealthy, are now more accessible to all."

Firms need to prove their relevance to a tech-savvy and more demanding younger generation of investors raised on the immediacy and personalisation of smartphone apps and digitalfirst services. The study, which analysed the views of 250 wealth management firms and 2,000 investors, also found that 60% of next-generation investors do not expect to use traditional advice services by 2030 due to advances in technology and the development of AI.

Wealth advisors will continue to be a bedrock of the industry. However, the study expects firms to shift towards a bionic model where AI-enabled tools enhance productivity and efficiency. These professionals will face the challenge of tailoring their solutions to a more diverse base of younger investors.

Research firm Wealth-X predicts a $15 trillion wealth transfer from older to younger generations by 2030. These young investors are increasingly demanding smart and sophisticated digital apps, channels, tools, and platforms.

According to the FNZ, ThoughtLab, and Deloitte research, while 35% of investors would consider switching providers over the next three years, this figure rises to more than half (53%) when younger investors were asked the question.

"There is also a significant shift in the adoption of different methods of decision-making, with the percentage of young investors expected to use discretionary investment services doubling from 18% to 36%. Younger investors have higher expectations for digital experiences and tools than their parents and grandparents. They are more interested in digital assets and are open to using automated tools: over

the next three years, 52% of Gen Y and Z would like their primary investment providers to offer chatbots to answer queries, compared with 39% of Boomers and the Silent Generation," the study observed.

While 74% of younger investors expect digital experiences on par with leading digital-native companies, versus 61% of older generations, 61% of those 74% also want better digital tools to manage their investments directly. In fact, the study also found that over 85% of respondents preferred to use AI for financial tasks such as researching investment advice and reviewing financial circumstances and aims.

Hybrid solutions combining technological innovation with human expertise will become the new normal. Instant messaging, video coverage, and participation in online communities will transform the wealth management industry into a more dynamic and accessible experience.

Alternative investments take centre stage

The most significant shift among young investors has been their preference for asset allocation. They now consider investing in sources like private equity, commodities, real estate, and other tangible assets, marking a notable

Top five investment trends

the young generation

Investments

departure from traditional stock-and-bond portfolios.

A recent Bank of America study found that 75% of Americans aged 21 to 42 do not believe above-average returns can be achieved through traditional stocks and bonds alone. Around 80% of these young investors are exploring alternative investments, and nearly 75% of millennials, compared to 21% of older respondents, are investing in sustainable products and ventures.

This is not a surprising trend, as these individuals live in an era that has witnessed disruptive phenomena such as COVID-19, the collapse of digital asset markets, geopolitical conflicts, climate change, the AI revolution, and major tech layoffs. There have also been market swings in recent years that have made younger generations sceptical about accumulating wealth through stocks and bonds.

The study further found these investors putting their money into alternative

avenues like real estate, peer-to-peer lending, investment crowdfunding, commodities, and collectibles.

Another study, titled the "2024 Bank of America Private Bank Study of Wealthy Americans", indicates that younger highnet-worth individuals maintain significantly less exposure to stocks and bonds. This again reflects a fundamental shift in how younger generations view wealth creation and risk management.

Values-based investing

A US Bancorp survey in 2023 noted young investors being overwhelmed by economic upheavals such as inflation and the cost-ofliving crisis, while not being sure how to start investing. These individuals compare their financial progress to others and are highly motivated by experiences and the pursuit of personal interests and opportunities.

Financial industry veteran Gunjan Kedia said, "Younger generations are deal-

Market size of neobanks from 2021 to 2023 (In Billion US Dollars)

Source: World Economic Forum

ing with inflation, high interest rates, and high prices, but they also inherited a much different world than older generations. Since 1980, college tuition has increased by 169%, the average price of a home is up 540%, and average student loan debt now sits at $37,000. It’s no wonder they are unsure about beginning an investing journey. But despite these headwinds, they are passionate about investing in causes they believe in and are seeking financial guidance."

The 2023 study, which covered 3,000 active investors and 1,000 aspiring investors of all generations, highlighted factors such as financial worries and decision fatigue affecting young investors’ confidence, with nearly 80% of investors responding to the economic climate by changing their investment strategies proactively.

Environmental, social, and governance (ESG) investments have moved from the periphery to become a central consideration in portfolio construction, as young investors question the impact of their investments on climate change, social justice, and corporate governance.

AI-driven personalisation

AI-powered hyper-personalisation has become the new standard in wealth management. Young investors expect their financial platforms to understand their unique goals, risk tolerance, and investment preferences, deliver tailored recommendations and insights in real time. Modern wealth management platforms are incorporating sophisticated algorithms to analyse spending patterns, predict financial needs, and adjust investment strategies based on changing market conditions or personal circumstances. Whether it is ESG preferences or risk tolerance, AI and big data analyse client behaviour in real time before tailoring portfolios.

However, despite being technologically savvy, young people globally have financial

literacy rates below 50%. The industry is responding by integrating educational components into its platforms, making financial knowledge more accessible and engaging. This includes interactive learning modules, social learning communities, and real-time market insights delivered through preferred communication channels.

Young investors seek financial advice from peers and online communities rather than traditional sources. This has led to the rise of social investing platforms where users can share strategies, discuss market trends, and even copy successful traders’ portfolios.

Although this approach has risks and challenges, requiring platforms to balance social features with responsible investing practices, the truth is that millennials and Gen Z will reshape how investments are approached, managed, and prioritised, driving significant changes in wealth management.

To meet the expectations of future investors, financial institutions must embrace key trends such as the integration of cryptocurrency and blockchain, mobilefirst and data-driven experiences, sustainable and impact investing like ESG, transparent and flexible fee structures, and AI-powered personalisation, which will make their approach to wealth management digital-first and value-driven.

The future of wealth management belongs to institutions that masterfully combine digital innovation with human expertise. Those who master the new playbook will emerge as the ultimate winners. Ultimately, the next generation of investors demands a seamless blend of technology, values-driven choices, and human guidance, compelling institutions to innovate continuously or risk obsolescence in wealth management.

AI-powered hyperpersonalisation has become the new standard in wealth management. Young investors expect their financial platforms to understand their unique goals, risk tolerance, and investment preferences, deliver tailored recommendations and insights in real time

Fintech's shift: Beyond simple payment processing

Businesses in the fintech sector face many obstacles as it develops, especially in the regulatory arena

GBO Correspondent

Recently, the fintech sector has experienced a substantial transformation, especially in the aftermath of the global pandemic. The early 2020s fintech boom may be familiar to you.

According to Cenk Kahraman, CEO of Finance Incorporated Limited, the era of rapidly increasing user adoption and seemingly endless growth is over.

He notes, "The easy growth days of digital payments are over. Card penetration has reached saturation, and the transition from cash to digital payments has slowed. This slowdown, paradoxically, is a positive indication. Businesses are being compelled by it to develop new methods of payment processing."

Kahraman recalls that five years ago, "You could launch a digital wallet and watch the users pour in. Today? You have

to present something really special. This slow approach to growth plateauing represents a significant turning point for the industry. We are no longer just processing financial transactions.”

These days, each payment is a data transaction full of opportunities and insights. Payment companies have been compelled by this change to look beyond their conventional roles and explore new growth opportunities. Value-added services are becoming a crucial tactic for fintech businesses looking to stand out in an increasingly competitive market.

"Businesses that can provide a range of services beyond simple payment processing will prosper," claims Kahraman.

Advanced analytics, fraud detection, and individualised financial advice are a few examples of these services.

Banking & Finance

Key fintech statistics of 2024

Fintech Market Size

$330 billion

Global Digital Payments

$8 trillion

Blockchain-based Services

$60 billion+

InsurTech Market Size

$20 billion+

P2P Lending Market

$450 billion

Source: Statista

Fintech trends driving change

According to Kahraman, several trends are shaping the future of the fintech industry, with the importance of proprietary technology standing out.

He emphasised that owning one's software is not just an advantage, but a necessity in the current fintech landscape.

This idea has been adopted by FIL since its founding, and the company has created its own technology stack to stay flexible and adaptable to market changes.

Kahraman believes the Buy Now, Pay Later (BNPL) industry is another area ripe for expansion and innovation.

"BNPL has witnessed a steady increase in interest rates, consistent with a fundamental change in how consumers view credit," he added.

Kahraman noted that BNPL will be easily incorporated into routine business dealings in the future, possibly enabling consumers to use it at the point of sale with just a phone call or card tap. Another important trend is financial integration and open banking.

He believes open banking can build a more cohesive financial system.

"Imagine managing all your bank accounts from a single platform. That is the power of open banking," Kahraman asserted.

However, he does recognise the difficulties in implementing such systems, especially given how they disrupt established banking models.

The speculative future of fintech

Kahraman presents the idea of "predictive finance" as an evolution of embedded finance as we move forward in time. He clarifies that predictive finance is more than just providing financial services when needed. It involves foreseeing those needs before the client even becomes aware of them.

In his vision of the future, Kahraman combines data analytics and artificial

intelligence to provide proactive financial solutions. Imagine your financial platform remembering a significant event like your anniversary and recommending restaurants and gifts that fit the occasion, your budget, or your long-term objectives, or trading and optimising your investment portfolio on your behalf.

Although fintech already has examples of these innovations, the technology is not yet flawless. Despite the widespread belief that blockchain and other cutting-edge technologies will dominate the financial industry in the future, Kahraman takes a more measured perspective.

He admits, "Blockchain will definitely play a role in shaping the future of fintech. However, it is only a single component of a much bigger puzzle. The true transformation will occur in how we combine these technologies to produce smooth, userfocused financial experiences."

Navigating the evolving fintech maze

Businesses in the fintech sector face many obstacles as it develops, especially in the regulatory arena. Kahraman highlights the pronounced variations in regulatory frameworks across geographical areas.

He notes that while Europe is a leader in many respects, it is overly regulated compared to the United States and AsiaPacific. Both innovation and operating costs may be hindered by this.

Kahraman sees opportunities for businesses that can successfully navigate this complicated terrain despite these obstacles. He suggests that being proactive rather than reactive is crucial.

"Assist regulators, plan for future developments, and incorporate adaptability into your systems," the CEO added.

Kahraman also believes that industry consolidation will influence how fintech develops in the future.

"The next few years will see a lot of mergers and acquisitions," he predicts.

Businesses that can strategically expand

their capabilities through acquisitions or partnerships will have a strong chance of success.

FIL’s vision for the future

Kahraman is committed to establishing FIL as a model fintech leader as the company looks to the future.

"We don’t just want to succeed; we want to demonstrate that moral behaviour and success can coexist," he said.

A combination of strategic acquisitions and organic growth is part of FIL's approach.

"We are constantly searching for ways to increase our capabilities. However, our acquisitions are not solely for expansion. Our goal is to build a more global, accessible, effective, and moral financial ecosystem, and that is reflected in every action we take. This dedication to moral behaviour forms the foundation of FIL's identity. As we expand, we have the chance—and the obligation—to influence the direction of finance. We want to demonstrate that it is feasible to prioritise sustainability, inclusivity, and social responsibility while still making a profit," Kahraman stressed.

When we consider fintech's future,

it's evident that the sector is about to undergo revolutionary change. With the emergence of predictive finance and the challenges of navigating intricate regulatory frameworks, businesses such as FIL are blazing a trail through uncharted territory.

According to Kahraman, the future of fintech will be characterised by responsible innovation.

He concludes by saying, "Technology isn’t the only factor influencing the future of finance. It’s about leveraging that technology to develop a more equitable financial system for all. That is the future that FIL is striving for."

Businesses that can navigate regulatory challenges, balance innovation with ethical practices, and anticipate customer needs will be wellpositioned to drive fintech's next phase of growth.

As the sector evolves from simple transactions to offering personalised, value-added services, companies like Finance Incorporated Limited, with their focus on strategic expansion, proprietary technology, and moral leadership, are poised to shape a more inclusive, innovative, and sustainable financial future.

"Technology isn’t the only factor influencing the future of finance. It’s about leveraging that technology to develop a more equitable financial system for all. That is the future that FIL is striving for"

- Kahraman

News Banking & Finance

To counter US, EU banks launch euro stablecoin

Nine European banks, including ING and UniCredit, will create a new company to issue a eurodenominated stablecoin to help offset American digital market dominance. After President Donald Trump signed a law regulating stablecoins, numerous major financial firms in the US have been preparing to launch their own dollar-backed cryptocurrency tokens.

Stablecoins, which are pegged to traditional currencies and designed to retain a stable value, have exploded in recent years, particularly among crypto traders transferring funds between more volatile tokens, but are also used

Commerzbank

in mainstream digital payments and cross-border transactions. The new Amsterdam-based company may launch its stablecoin in 2026.

Global stablecoin issuance is around $300 billion, but figures released by the Bank of Italy show euro-denominated stablecoins were a mere $620

million, with dollar-pegged tokens overwhelmingly dominant.

The initiative, dubbed the "diem" by its backers, will develop a token that can be used for fast, low-cost payments and settlements, even as the European Central Bank (ECB) expresses doubts about stablecoins.

Commerzbank details $1.2B

Commerzbank will start buying back up to 1 billion euros ($1.18 billion) of shares as it attempts to remain independent after Italy's UniCredit called for a tieup with its German counterpart. Commerzbank had announced in August 2025 that it would buy back the shares, but is only now presenting the details after receiving regulatory approval.

The German lender is trying to convince its shareholders of its standalone strategy as UniCredit increases its stake in Commerzbank and pushes for merger talks.

In a statement, Commerzbank CEO Bettina Orlopp said,

share buyback plan

"Returning capital to our shareholders is a key part of our value creation strategy."

The announcement follows an annual strategy session by Commerzbank management and supervisory boards. The buyback, the bank's fifth since 2023, will end on February 10. UniCredit now owns 26% of Commerzbank and plans to raise that to just under 30% in the months ahead.

UniCredit CEO Andrea Orcel has argued the benefits of a merger

since beginning to build up its stake a year ago. Recently, Orcel said he hoped Commerzbank "would see the light over time." However, not enough progress has been made on the ground.

Revolut eyes US bank buy for its global push

United Kingdom-based fintech giant Revolut is contemplating the acquisition of an American bank to accelerate its global expansion. Additionally, the company is considering introducing credit cards in its home market as it aims to compete more robustly against established lenders.

The company, which has 65 million customers, is the most valuable of a crop of European financial technology firms and is reportedly targeting a $75 billion valuation in a secondary share sale.

Company executives said the company would massively expand its international footprint but was determined to remain in Britain. CEO and co-founder Nik Storonsky remarked, "We are committed to the UK as our home country."

Revolut is considering whether to buy an American bank or apply for its own banking license in the country, Revolut's US CEO Sid Jajodia said.

Other company executives said they hoped to secure a UK banking licence by the end of 2025 — a process that has been running for several years — that would allow it to launch credit cards and unsecured credit in the country.

Revolut will invest $13 billion over the next five years in its global expansion, including $4 billion in the United Kingdom.

Personal Finance

US banks borrow $1.5B from Federal Reserve

American banks borrowed $1.5 billion from the Standing Repo Facility (SRF), Fed data showed, indicating some strain in meeting funding obligations. The SRF is a supporting mechanism for any funding shortfall, and since its launch in July 2021, the Fed has provided twice-daily overnight cash in exchange for eligible collateral such as Treasuries. Analysts said that the large Treasury security settlement for recently issued debt coincides with the corporate tax date, which will push the cash balance to more than $870 billion due to roughly $78 billion in payments to the Treasury, as per the money market research firm Wrightson

ICAP.

US financial institutions borrowed $1.5 billion in cash; there were no borrowings after that. On June 30, financial institutions borrowed about $11.1 billion from the SRF, backed mostly by Treasuries as collateral, the biggest such borrowing since it was launched four years ago.

Steven Zeng, US rates strategist at Deutsche Bank, said, "Small utilisation of the SRF is in line with our expectations and speaks to elevated repo levels potentially giving some banks or dealers an opening to make a return by sourcing funds from the Fed and lending them out."

Analysis

Togo's economy thrives despite political challenges

GBO

Correspondent

A lively FDI contribution gives Togo a favourable economic outlook, augmented by structural reforms and critical investment projects

Close to 100 Togolese business leaders travelled to China in March 2025 on a trade mission aimed at strengthening economic ties and exploring new opportunities. The initiative, led by the Togo Chamber of Commerce and Industry (CCI-Togo) in partnership with the Hebei Enterprise Culture Association, saw the delegation focus on key industries such as construction, mechanical engineering, civil engineering, agriculture, livestock, automotive, and packaging.

What if we say that Togo, a small West African country, one of the world’s biggest phosphate producers, is now displaying a resurgent economy and the prospect of more to come? This copy will shed more light on this.

A tale of revival

Togo is battling security challenges, arising from attacks by bandits in the northern region and sea pirates’ raids on the coastal south, while there are resentments against a decadesold political hegemony.

However, these headwinds have not discouraged foreign direct investment (FDI) arrivals. A leading foreign company operating in Togo is Heidelberg Material, which is planning new investments in environmental and industrial sectors and funding sustainable solutions in cement production using alternative materials.

Agriculture is also attracting investment. In 2021, Olam, the Singapore-based agro-food group, acquired a 51% majority stake in Nouvelle Societe Cotonniere du Togo (NSCT) for €15.3 million as part of the government’s privatisation of the state-owned cotton company.

Designed to boost cotton production, which had declined due to bad weather and poor seed quality, the deal left the government and the federation of cotton farmers with 24% and 25% stakes in the company, respectively.

In 2023, another Singaporean company, NutriSource, started NPK (nitrogen, phosphorus, potassium) fertiliser production in Togo. The new plant is part of a bigger project valued at CFA4.9 billion ($7.8 million). In the energy sector, France’s TotalEnergies is the leading retailer of petroleum products.

Chinese and South Korean companies have entered the fray as well, including Leopard Moto (bicycle sales), Amina Togo, West Africa Battery (batteries for bikes and cars), YSO Dairy Products Manufacturing, Sofina (nylon thread, fishing nets, spool thread, packages, ropes) and China Sinomach-Hi West Africa (equipment manufacturing).

To sweeten things further, in December 2024, the International Monetary Fund (IMF) approved the release of approximately $58.7 million for Togo, as part of the first review of its Extended Credit Facility (ECF) programme. This funding is intended for budget support and is part of a larger 42-month agreement worth $390 million, which was established in March 2024.

The facility will help strengthen the Togolese economy,

making it more resilient to crises like COVID-19 and rising food and fuel prices on a global scale. The IMF reported that Togo's economic growth was 5.6% in 2023 and is expected to remain at 5.3% in 2024-2025. In addition, overall inflation decreased to 3.3% in October 2024, down from much higher levels in previous years.

The European Union (EU) will also support the Togolese State budget with CFA12.8 billion. The funding will be used to implement the "Togo 2025 Roadmap." The EU-Togo partnership, which extends until 2027, is also expected to mobilise several hundred million euros for priority projects through budget support, loans, grants, guarantees, and technical assistance.

Roadmap for the future

A lively FDI contribution gives Togo a favourable economic outlook, augmented by structural reforms and critical investment projects, according to the African Development Bank (AfDB). The latter now expects real GDP to grow 5.3% in 2024 and 6% in 2025, driven by a dynamic agricultural

Source: Statista

sector and private investment, although the IMF projects growth to “soften” slightly to 5.3% over 20242025 due to fiscal consolidation before recovering to its long-term trend, projected at 5.5% annually.

Togo’s National Development Plan 2021-2025, also known as the Presidential Roadmap, envisions the country having innovative and sustainable solutions in identifying financing resources, attracting more investments with great socioeconomic impact, and consolidating the country’s strategic positioning in Africa as an investment destination. The road-map also emphasises developing infrastructure to support economic activity, including transportation and energy, along with higher government spending and private-sector investment.

In 2024, Global Finance reported that "underpinning these projections is some solid infrastructure. Togo has one of the best ports in West Africa; in three years, the Port of Lome has achieved a significant drop in congestion thanks to improved berthing windows, maintaining a 48-hour ship turnaround time. As a result, it has become a port of choice for importers even from Nigeria as well as for landlocked countries in the Sahel region, including Niger and Burkina Faso."

In July 2021, the World Bank approved a $470 million loan for the construction of the LomeOuagadougou-Niamey corridor, 1,065 kilometres of road joining the capital cities of Togo, Burkina Faso, and Niger. The project will optimise the use of the Port of Lome. IMF, on its part, has helped trigger private investment and a growing

level of activity in light manufacturing and agribusiness.

Industrial activities in Togo have traditionally been driven by mining, especially phosphate processing, which accounted on average for more than 20% of GDP before the 2000s. However, a collapse in phosphate production in that decade, together with sectoral governance constraints and sharp fluctuations in the market price of phosphate, dropped the sector’s share of GDP to about 15% and reduced its contribution to growth from 0.8 percentage points to 0.2. This is what has made FDI inflow critical for the country's economy.

Heidelberg Material has invested €400 million through Scantogo, which produces clinker, an ingredient in cement; Granutogo, a gravel crushing unit; and Cimtogo, a cement plant. In September 2024, Heidelberg announced its plan to invest in the environmental and industrial sectors, funding sustainable solutions in cement production using alternative materials. The group aims to produce zero-carbon cement as part of its commitment to environmental sustainability.

Togo’s exports are primarily composed of minerals, along with industrial and agricultural products. The main sources of export earnings are minerals, which accounted for 22% of total goods exports between 2019 and 2021, followed by plastics, textiles and clothing, and agricultural products.

Concerns linger as well

If Togo wants its economic revival to be a success story, it needs to fight two elements: terrorist threats and discontent with an undemocratic political power structure. For example, insecurity in Togo’s northern Savanes region remains a business concern. Terrorist incursions from neighbouring countries have often forced residents to flee.

After the first major attack in May 2022, the government declared a state of emergency; in March 2024, the government extended emergency rule for another year.

"The attacks have lulls, then flare up again," says Confidence MacHarry, senior geopolitics analyst at SBM Intelligence, a security research firm in Lagos, Nigeria, who added, “In August, we heard that Togo lost an area in its northern border with Benin. On its southern sea border, Togo also faces problems with pirates in the Gulf of Guinea. So far, the problem from the north has not reached the south."

"That said, Togo remains relatively safe. While security threats in the northern Sahel threaten its trade with countries in that region, the good thing about Togo is that it is sandwiched among countries whose geographies are the rough of the north. So, if a particular area is troubled, it can easily redirect its international trade," MacHarry argued.

In March 2024, Togo adopted a new constitution that changed its governing structure from presidential to parliamentary. Under the new system, Parliament will elect the president. How-

ever, the opposition parties have accused the ruling party, Union for the Republic, of playing gimmicks with the change, which they say was designed to increase President Faure Gnassingbé’s stay in office through a shift in title. Togo’s next presidential election is slated for 2025.

Marcel Okeke, former chief economist of Nigeria’s Zenith Bank, said, "All this suggests future political instability that may threaten Togo’s economic achievements, if it has not already. Togo is contending with a political hegemony that is stagnating the country’s economic progress."

Togo's economic revival shows promising potential, driven by strategic foreign investments and infrastructure development. However, overcoming security challenges and political instability will be crucial for sustaining long-term growth and stability.

In September 2024, Heidelberg announced its plan to invest in the environmental and industrial sectors, funding sustainable solutions in cement production using alternative materials. The group aims to produce zerocarbon cement as part of its commitment to environmental sustainability

Oshikatsu boosts Japan’s

economy, but at what cost?

In the oshikatsu madness, a considerable part of the support has become economic in nature

Oshikatsu

In May, the Bank of Japan (BOJ) revised its growth forecasts for 2025 and beyond, while issuing a warning that trade tariffs are fuelling global economic uncertainty. Since taking office in January, United States President Donald Trump has launched a hard-line campaign to rectify what he claims are unfair trade imbalances, through a measure called "reciprocal tariffs."

His administration has imposed hefty levies on Washington's partners and adversaries alike, affecting imports of key products into the world's largest economy, including steel and automobiles. The BOJ now expects Japan's GDP to rise 0.5% in fiscal 2025, which began in April, down from its previous estimate of 1.1%. In fiscal 2026, the apex banking body expects the domestic economy to expand by 0.7%, down from the previously forecast 1.0%.

Policymakers and economists are paying close attention to the "oshikatsu" phenomenon, recognising it as a growing driver of consumer spending in Japan. The trend has captured the interest of analysts, particularly as it taps into a demographic of "mostly 20- and 30-somethings" who are increasingly investing time and money into supporting their favourite celebrities, anime characters, or cuddly mascots.

This generation's enthusiasm for "oshi" (the Japanese term for the object of one’s adoration) is seen as a key factor in boosting Japan's consumer culture. With the rise of oshikatsu, there’s optimism that the trend can stimulate greater economic activity, particularly as younger generations continue to engage in these fan-driven activities.

Policymakers bet big

As a result, the explosive growth of oshikatsu (a term coined in recent years from the Japanese words for push and activity) has caught the attention of economists, who see it as a potential way to boost Japan's sluggish consumption.

In the opinion of Nomura Securities analyst Kohei Okazaki, the timing of oshikatsu's rise couldn't be better, as many companies are planning their biggest pay rises in 34 years, particularly for younger workers who are in short supply in a tight and ageing job market.

"The 20-somethings, who’ll probably receive another big pay rise in this spring's wage talks, are more proactive about oshikatsu than other age groups, and there’s a high possibility that spending by this age group will continue to grow this year," he said.

A joint survey by Tokyo-based marketing firms CDG and Oshicoco in January estimated that some 14 million people could be engaged in this year's oshikatsu, making up about 11% of Japan's population. With

GDP of Japan from 2015 to 2024 (In Trillion US Dollars)

Source: Statistics Times Economy Oshikatsu

respondents spending an average of 250,000¥ ($1,700) a year, the survey suggested a potential 3.5 trillion-yen contribution from oshikatsu to the world's fourth-largest economy.

While that accounts for only 2.1% of Japan's total annual retail sales, analysts suggest the positive knock-on impact on consumption is expected to be larger.

Okazaki said, "It's safe to say that consumption expenditure due to oshikatsu is on an increasing trend," adding that non-essential spending appeared to be holding steady even as inflation prompts many to pinch pennies elsewhere.

In the oshikatsu madness, a considerable part of the support has become economic in nature. Fans attend events and concerts, or buy merchandise such as CDs, posters, and other collectables. Other forms of oshikatsu involve spreading the fame of their idol by sharing content about their oshi, engaging in social media campaigns, and writing fan fiction or drawing fan art.

Now, corporate Japan is sensing an opportunity in oshikatsu. There has been a burst of inflation in recent years, caused by pandemic supply chain disruption and geopolitical shocks. On the other hand, Japanese consumers have reduced their spending.

However, with wages set to rise again for the third time in three years, the Shigeru Ishiba government is cautiously optimistic that economic growth can be rekindled through consumer-driven spending. Entertainment and media companies are looking to oshikatsu as a potential driver of this, although it is unclear whether the upcoming pay hikes will be sufficient.

Reports indicate that many of Japan's biggest companies, from tech conglomerates to automaker Toyota, have met union demands for substantial wage hikes for a third consecutive year, aiming to help workers cope with inflation and retain staff amid labour shortages.

As annual 'shunto' or 'spring labour offensive' negotiations at top firms are concluded in March 2025, electronics conglomerate Hitachi led by announcing a record 6.2% increase in monthly wages, in line with union demands.

Not only unions but policymakers have pushed for robust pay hikes, given sharply higher food prices and record corporate profits on the back of a weak yen. While economists expect corporate Japan's average pay hike for 2025 to be similar to last year's 5.1% rise, which marked the sharpest increase in 33 years and allowed the central bank to exit its decade-long super-loose monetary policy, it remains unclear whether the hikes will be strong enough to spur consumer spending and encourage the Bank of Japan to increase its policy rate more aggressively.

Still, the Ishiba government expects these salary hikes to result in people spending big during oshikatsu, driving higher domestic consumption. In fact, oshikatsu is no longer solely the purview of subcultures or young people; it has made inroads with older age groups in Japan as well.

According to a 2024 survey by Japanese marketing research company Harumeku, 46% of women in their 50s have an oshi that they support financially. Older generations tend to have more

money to spend, especially after their own children have finished their education.

Another survey of mothers in Japan, conducted by a private company (Mamasta Select, an information site for mothers operated by Interspace Co.), based in Tokyo in 2024, found that nearly 60% of them engaged in some form of oshikatsu, with some spending over one million yen (around $6,370) a year on the pursuit.

When asked, "Do you engage in oshikatsu?" a total of 58.3% said they do or have done so. The objects of their support, or "oshi," ranged from actors and artists to sports teams, theme park characters, and both 2D and 3D interests. The primary methods of support included attending performances or matches in which those oshi appeared, and purchasing related merchandise.

Upon being asked about their yearly budget for oshikatsu, the most popular answer was "less than 50,000¥ (about $320)," selected by 68.5% of respondents. Next was "from 50,000¥ to less than 300,000¥ (about $1,910)" at 20.7%; "from 300,000¥ to less than 1 million yen" at 5.7%; and "over one million yen" at 5.1%.

The results showed that while close to 70% keep their oshikatsu spending under

50,000¥ a year, over 10% splash out and spend at least 300,000¥ annually.

A gender angle

While husbands in the traditional Japanese household are seen as breadwinners, in oshikatsu, it is more often women who financially support young men. How much fans spend on their oshi depends. According to a recent survey (conducted in January 2025) by Japanese marketing company CDG and Oshicoco, an advertising agency specialising in oshikatsu, the average amount fans spend on activities related to their oshis is 250,000¥ (about £1,300) annually. This contributes an estimated 3.5 trillion yen (£18.8 billion) to the Japanese economy each year and accounts for 2.1% of Japan’s total annual retail sales.

The number of people who support their favourite idols is approximately 13.84 million. This is an increase of 2.5 million from the previous year, with the increase particularly notable among women in their early 30s. Some 16.7% of respondents answered that they were "actively supporting their favourite idols," up 2.6 percentage points from the previous survey in January 2024. Converted into population terms, the number

While husbands in the traditional Japanese household are seen as breadwinners, in oshikatsu, it is more often women who financially support young men. How much fans spend on their oshi depends

Oshikatsu

The average expenditure on oshikatsu is about 250,000¥ per year. In Japan as a whole, about 3.5 trillion yen is spent on oshikatsu per year

of people who are "actively supporting their favourite idols" is 13.84 million, an increase of about 2.5 million from 11.36 million in the previous survey.

"This is particularly notable for women in their early 30s, who increased by 8.2 percentage points to 30.4%. Following the already high number of women in their teens and twenties, this means that one in three women in their early 30s is also active in supporting their favourite idols," the CDG and Oshicoco survey noted.

The average expenditure on oshikatsu is about 250,000¥ per year. In Japan as a whole, about 3.5 trillion yen is spent on oshikatsu per year.

"When asked how much they spent on their idol activities over the course of a year, the average was 255,035¥ per person. Based on this per capita expenditure and the number of people involved in oshikatsu, the total amount spent on oshikatsu by Japanese men and women aged 15 to 69 in a year

was calculated to be approximately 3.5 trillion yen. Previous surveys and interviews conducted by the Oshikatsu Research Institute have shown that oshikatsu generates a variety of related consumption, but this is the first time we have been able to visualise the total amount of oshikatsu consumption, which is approximately the size of the oshikatsu market," the study noted.

Will oshikatsu in 2025 do the muchneeded magic for the ailing Japanese economy? In the words of senior business journalist Steven Vass, "It will drive up consumer spending. But I doubt it will have the impact on the Japanese economy that the authorities are hoping for. For the younger fans, the danger is that government approval will kill any kind of cool clout, making oshikatsu less appealing to these people in the long run. And if you support an oshi who has not yet made it, you may have a stronger sense that your support matters. Hence,

some of the spending will go directly to individuals, rather than to established corporate superstars. But it’s also possible that struggling young oshis may spend more of this money than established celebrities."

Is Gen Z bearing the burden?

Despite Japan experiencing a boom in oshikatsu, new data shows many fans are concerned about the financial toll that supporting their favourites is taking on their pocketbooks and lives.

A survey in 2024 by VideoResearch of 4,234 men and women between ages 15 and 69 found that 62.1% of 15 to 26-yearolds (so-called Gen Z) have an oshi. However, even 40.4% of 27-42-year-olds and 27.1% of those between 43 and 58 said they have one. Among Gen X (the demographic generation born between the mid-1960s and the early 1980s), 40% said they’d been engaged in oshikatsu for 10 years or more.

"Gen Xers and those over 59 were more likely to identify their oshi as a singer, band, or musician, followed by an idol. By contrast, most in Gen Z and Gen Y said their oshi was an idol, followed by an anime or manga character. YouTubers and VTubers ranked low for Gen Z (7th and 9th, respectively) and didn’t rank at all for Gen Y and senior fans. That makes oshikatsu big business in Japan. Indeed, even industries unconnected to entertainment are looking for ways to cash in," reported Unseen Japan, which decoded the study further.

Another survey by the economic magazine Toyo Keizai in 2024 highlighted the dark side of oshi activity promotion. The study, conducted through November and December, of 3,516 people from their 20s to 70s, asked if fans considered oshikatsu a financial burden. Almost 50% of 20-year-olds said yes. Over 40% of 30 and 40-year-olds said that feeding money to their oshis dented their pocketbooks.

Of those polled, almost 500 people said the biggest financial burden was

buying goods related to their oshi. Another 450 or so indicated that event fees were the heaviest burden.

According to the “Oshinomics” report from Japanese advertising and public relations company Hakuhodo, teenage girls mentioned spending half of their disposable income on oshikatsu activities.

For many people in this group, their money is spent on male underground idols, performers at small clubs, or at male-themed concept cafes where minors are permitted. Some are concerned that the financial strain of oshikatsu might lead to unhealthy spending habits and an excessive devotion of time and money to their favourite idols.

Of course, no one in Japan is going to put the brakes on oshikatsu, as the money generated will drive up domestic consumption, which the nation's sagging economy badly needs now. However, experts see the move carrying a risk that "some people’s love for their idols will morph into something ugly and unhealthy."

Psychiatrist Nishimura Kotaro, who specialises in addiction issues, said that oshikatsu addiction is real, labelling it a form of relationship addiction that can be as serious as an alcohol or gambling addiction.

“It’s a matter of personal choice if the activities aren’t problematic and you can sustain your participation in society. If you cross that line, it spirals out of control,” he concluded.

Despite Japan experiencing a boom in oshikatsu, new data shows many fans are concerned about the financial toll that supporting their favourites is taking on their pocketbooks and lives

Economy Unemployment

Analysis

Youth unemployment: A growing crisis for the future

GBO Correspondent

According to the household survey, the unemployment rate decreased slightly from 4.1% to 4%

There is a great deal of uncertainty surrounding the future of employment, and making the wrong wagers could have disastrous effects on individuals and, eventually, entire countries. To make educated decisions regarding education, skill development, and career paths, it is essential to understand the forces influencing the global labour market as societies and economies navigate this complex landscape.

The recent "World Employment and Social Outlook: Trends 2025" report from the International Labour Organisation paints a bleak picture of the global labour market. While the unemployment rate has remained steady at 5%, this figure does not reflect the stark differences between regions and demographic groups. For example, youth unemployment stands at a concerning 12%, highlighting the difficulties faced by those just entering the workforce.

The job market situation is becoming even more dire due to economic challenges. Global growth slowed to 3.2% in 2024 from 3.6% in 2022, and this slowdown is expected to continue. For employers and job seekers, the downshift, geopolitical unrest, and growing trade protectionism are creating a perfect storm of uncertainty.

Although technological advancement is often hailed as the key to economic growth, it brings both benefits and drawbacks. With 60% of employers expecting to be affected by the digital revolution by 2030, it is predicted to be the most important trend. However, the uneven distribution of the benefits of this boom only exacerbates existing disparities.

The need to invest in digital infrastructure and education has never been more urgent in the Arab world, where there are significant variations in digital readiness. In fact, nations worldwide that are unable to close the

digital divide risk falling behind in the competition for talent and innovation.

A ray of hope amidst the uncertainty comes from the global transition to a greener economy. With employment in the renewable energy sector expected to reach 16.2 million in 2023, this sector has experienced remarkable growth. This shift presents the Middle East's resourcerich nations with an opportunity to diversify their economies and create long-term employment.

However, as demonstrated by the concentration of green jobs in some regions (46% of them are in China), the promise of equitable opportunity distribution worldwide remains a distant goal. Arab countries must, therefore, fully leverage their inherent advantages, such as their wealth of solar resources, to position themselves as pioneers in the green economy.

The increasing gap between employers' demands and

workers' skills is one of the most pressing issues facing the labour market today. The rapid pace of technological change is rendering many traditional skill sets obsolete, creating a growing need for new, often highly specialised professionals.

For the majority of the previous century, STEM fields—science, technology, engineering, and mathematics—were prioritised over the arts. However, many STEM graduates are now finding that their jobs are being automated before they have had a chance to reconsider their career choices. With tasks that once took weeks of coding now completed in minutes, many people are left questioning how they can contribute.

A recent report in The Wall Street Journal noted: “Nearly one in four US tech jobs posted so far this year are seeking employees with artificial intelligence skills, job listings data show, as companies in nearly every

Economy

corner of the economy adjust their recruiting pipelines to embrace the technology.”

Education systems are struggling to keep up with these changes, especially in developing nations. As a result, there is a growing mismatch in skills that could force millions of workers into unemployment. Addressing this issue is crucial to utilising what remains of the demographic dividend in the Arab world, where youth unemployment rates are among the highest globally.

Lastly, despite decades of progress, notable gender disparities in labour force participation persist. Women continue to participate at a significantly lower rate than men, especially in low-income nations. This gender gap represents not only a social injustice but also a massive economic opportunity cost.

The underrepresentation of women in some STEM fields may be attributed to more than just discrimination, according to recent research.

According to The Wall Street Journal article, "Sex differences in the STEM workforce may largely be a product of sex differences in interests and priorities. Talented students of both sexes tend to avoid a career in math or science if they

can pursue something else."

On the positive side, a comeback is possible, even though market forces haven't been able to address the low compensation for care work, which is largely performed by women. In other words, even though AI may soon surpass humans in the majority of STEM tasks, it is unlikely to replace occupations that require the human touch that women typically provide.

As we look to the future, it is clear that the nature of work is changing. The gig economy, the growth of remote work, and AI-driven automation are all influencing traditional employment models. Future workers must possess the agility and lifelong learning skills necessary to handle multiple career changes.

The challenge for legislators and academic institutions is to create mechanisms that facilitate this flexibility. To achieve this, education must shift from rigid, degree-based models to more adaptable strategies that promote lifelong learning and skill development.

By understanding labour market trends and making strategic investments in sustainable industries, education, and technology, nations can position themselves to dominate the future economy.

These opportunities are especially appealing to the Arab world, which has a youthful, vibrant population and is increasingly focused on economic diversification. Arab nations can strive to create a future-proof job market by embracing the green energy transition, adopting digital transformation, and fostering an innovative and entrepreneurial culture.

The versatility and resilience of the human spirit are the safest bets in a time when the employment future appears too uncertain to make poor choices. Policies that are bold and progressive, like those implemented by the UAE and Saudi Arabia, can prepare workers for both today's jobs and tomorrow's careers.

Moreover, with the addition of 143,000 jobs in January, instead of the projected 175,000, the jobs report was weaker than expected. Nonetheless, upward revisions for the previous two months, totalling 100,000 jobs, confirm that the US labour market remains stable.

According to the household survey, the unemployment rate decreased slightly from 4.1% to 4%. As for consumers, real wage growth continues, with average hourly wages rising by 4.1% annually. It’s worth observing how job growth is concentrated. In January, 93,000 new jobs were created in the government and healthcare sectors, while more cyclical industries like manufacturing and construction saw only 7,000 new jobs in January and 73,000 over the previous 12 months.

Meanwhile, particularly for H-1Bs, the American labour market is becoming a nightmare. Many report being harmed by the difficult economy, so if you’re hoping for sponsorship, you should be ready with backup plans. H-1B workers and recruiters claim that US companies are currently halting the hiring of foreign talent. You have very little chance of landing a good job unless you’re an expert in a highly technical field.

As per one disgruntled applicant, they applied to more than 1,000 jobs in five months without receiving any responses. This is due to the abundance of qualified applicants and the fact that businesses are giving preference to local talent. Once a lifeline for those hoping to obtain an H-1B visa, entry-level positions are now nearly non-existent. Even those fortunate enough to secure interviews are frequently turned down later in the hiring process.

The reality is that no H-1B worker or applicant will be satisfied with a basic engineering degree anymore. To find a sponsor, you must specialise in fields like cybersecurity or artificial intelligence. Making strong connections is another

key to realising the American dream. Since the job market is competitive for local workers as well, you will need all your contacts and referrals to succeed in today’s economy.

Despite decades of progress, notable gender disparities in labour force participation persist. Women continue to participate at a significantly lower rate than men, especially in lowincome nations. This gender gap represents not only a social injustice but also a massive economic opportunity cost

One of the biggest economies in Africa, Nigeria, has seen a turning point in the investment banking industry over the past 12 months

Infrastructure funds power Nigeria’s economic rise

GBO correspondent

Investment banking is expected to generate $142.16 billion in total revenue in 2024, driven by a significant rise in private equity activity, increasing capital needs, and the use of sustainable finance techniques. As AIpowered solutions, digital assets, and ESG initiatives continue to advance, the market is anticipated to reach $194.05 billion by 2028. Sustainability and technological advancements will shape investment banking in the future.

One of the biggest economies in Africa, Nigeria, has seen a turning point in the investment banking industry over the past 12 months. Capital-raising efforts, mergers and acquisitions, and sustainable finance are being fuelled by growing demand for capital in key sectors such as consumer goods, energy, telecoms, real estate, and financial services.

Coronation Merchant Bank (Coronation MB) is positioned to take advantage of these opportunities as a consultant to governments and corporations. The future of investment banking in Nigeria will be influenced by four trends: Islamic finance, infrastructure investment, mergers and acquisitions (M&A), and commercial paper (CP).

Mergers and acquisitions activity in Nigeria from 2021 to 2023 (In Billion US Dollars)

Year Deals Value

2021 43 0.7 Billion

2022 46 3.46 Billion

2023 33 1.5 Billion

Source: imaa-institute.org

Commercial paper

In an era of rising interest rates and the need for less costly alternatives to bank loans, commercial papers have become an essential source of working capital financing for investment-grade corporations. CP issuances generated ₦1.5 trillion ($910 million) for Nigerian companies in 2022 (₦252 billion – $153 million in 2022). At a time when bank loans are prohibitively expensive, this increase in issuances highlights the significance of CPs to corporations.

The wide acceptance of this working capital financing method is reflected in the fact that corporate issues are found across a variety of Nigerian economic sectors, including manufacturing, financial services, health, agriculture, and retail. In 2023, MTN Communications raised ₦374 billion ($227 million) through multiple issuances, representing one of the major transactions. Dangote Cement, Flour Mills of Nigeria, and Nigerian Breweries were among other companies that issued CPs. Their respective issuances were ₦150.97 billion ($92 million), ₦221.28 billion ($134 million), and ₦116.49 billion ($71 million).

To expand operations in the industry moving forward, Coronation Merchant Bank raised a total of ₦343.43 billion ($209 million) for Dangote Sugar, Dangote Cement, and 27 other issues from the various commercial papers raised during the year. ₦

From inflationary pressures to the different monetary policy measures implemented to curb them, the CP market is not without challenges. However, given that corporations are still seeking working capital funding and the flexibility of CP programmes, the long-term outlook for CPs remains positive.

Infrastructure investment

The infrastructure deficit in Nigeria requires investments of

approximately ₦30 trillion ($18.2 billion) over the next 30 years. As a result, fund managers have registered infrastructure funds totalling ₦1.5 trillion ($910 million), with ₦230 billion ($140 million) raised over a six-year period. The energy, telecom, transportation, and health sectors have all benefited from these investments.

Leading issuing house Coronation MB raised ₦8.79 billion ($5.3 million) on the Coronation Infrastructure Fund's series one offer. This issuance, which outperformed earlier rates of 33.375% and 24.70% by comparable infrastructure funds, represents the market's highest subscription percentage and largest amount raised for a first infrastructure fund.

As evidence of growing acceptance of infrastructure funds as an investment class by institutional investors, such as pension funds with the largest domestic fund pools, five fund managers plan to launch new funds within the next year.

Mergers and acquisitions

The CBN's directive to increase minimum capital requirements for deposit money banks from April 2026 has prompted several banks to seek ways to recapitalise. The recent announcement of the Unity Bank and Providus Bank merger serves as an example, and other deposit money banks are expected to announce additional M&As to remain open and competitive.

CardinalStone's acquisition of Radix Pension, GTCO's acquisition of Investment One Pension Management, and Access Holdings' acquisition of ARM, Sigma, and First Guarantee Pensions yielded the second-largest pension manager by assets under management (Coronation MB served as a financial adviser on all Access Bank M&A transactions).

In the stockbroking industry, Zedcrest acquired RMB's stockbroking division. An agreement was reached for EverQuest Acquisition to sell its shares and acquire a 100% equity stake in FBNQuest Merchant Bank.

Additionally, M&A activities were observed in the energy, entertainment, and fintech sectors. These included Carbon's purchase of Vella Finance, Universal Music Group's purchase of the majority of Mavins Global, and certain

Nigerian companies' purchase of Shell's onshore oil and gas assets. Coronation MB is prepared to offer advice on these deals, and more corporates are expected to continue using M&A to achieve strategic growth.

Islamic finance

The non-interest finance market increased by $0.76 billion between 2021 and 2023, from $2.30 billion to $3.8 billion. During that period, its share of the global finance market went from 0.075% to 0.9%. Because of Nigeria's sizable Muslim population and the currently unbanked populations in the North-West and North-East, this presents a promising growth opportunity.

Since the FGN issued ₦100 billion ($61 million) sovereign sukuk in 2017 and six more issuances totalling ₦1.092 trillion ($664 million) to finance infrastructure developments, including 4,000 km of roads and bridges, as well as the most recent sukuk issuance in October 2023 for ₦652 billion ($397 million), non-interest financing has gained popularity. The CBN, SEC, and FMDQ are among the regulators who can help Islamic finance in Nigeria expand.

Recently, Trustbanc launched its first NICP programme under FMDQ's updated framework, enabling businesses to issue short-term instruments that comply with shariah under the wakalah structure. As the original organiser of this NICP programme under the revised framework, Coronation MB played an instrumental role.

The investment banking industry in Nigeria is evolving to accommodate the distinct funding requirements of governments and corporations. Key trends highlight the sector's contribution to long-term corporate and economic growth. Both short- and long-term financing require the

use of commercial papers and Islamic financial instruments like sukuk. Corporates can drive expansion through M&As or organic growth.

Nigeria’s investment banking scene is evolving faster than ever, fuelled by private equity, sustainable finance, and new technologies. From commercial papers to infrastructure projects, mergers and acquisitions, and Islamic finance, the sector is finding innovative ways to meet the country’s growing capital needs. With the Federal Government increasingly using sukuk to finance infrastructure alongside private sector participation, corporates and the government are tapping these tools to drive growth. Coronation Merchant Bank is ready to guide them, ensuring investment banking remains central to Nigeria’s long-term economic progress.

According to S&P Global, French economic activity contracted in September 2025 at the sharpest rate since April, as both the manufacturing and services sectors in the eurozone's second-largest economy experienced declines. The HCOB Flash France Composite PMI Output Index dropped to 48.4 in September

Amid political volatility, French economy shrinks

sixteenth consecutive month.

Jonas Feldhusen, an economist at Hamburg Commercial Bank, said, "After signs of stabilisation in the French private sector over the summer months, the September data have brought a sobering reality check. Economic activity in France has weakened more sharply than at any point since April."

from 49.8 in August, its lowest level in five months.

The manufacturing sector suffered, with the headline PMI declining to 48.1 (down from 50.4 in August), a three-month low, and the sector's output index dropping to 45.9 (from 49.8), a seven-month low, due to weak customer demand, as total new orders declined for the

The slowdown in the private sector, which employs the majority of people, continued, but the decline was not as severe as in July. Employment increased for the second consecutive month. However, business confidence remained low, with political uncertainty being a significant factor affecting expectations.

Saudi Arabia's non-oil exports go up 30%

Saudi Arabia's non-oil exports, including re-exports, grew by 30.4% in July 2025 over July 2024, while the non-oil exportto-import ratio rose to 44.6% in July 2025, up from 33.4% in July 2024, according to the International Trade Bulletin issued by GASTAT (General Authority for Statistics).

Machinery, electrical equipment, and parts accounted for 29.7% of total non-oil exports, followed by chemical products at 19.6%.

Machinery, electrical equipment, and parts made up 11.7% of imports, an increase of 29.9% from July 2024, and transportation equipment and parts made up 13.2% of imports, a decrease of 9.6% from July 2024. Oil exports as a share of total exports decreased from 72.8% in July 2024 to 67.1% in July 2025. From July 2024, the balance of trade surplus increased by 53.4%.

The bulletin also shows that the Kingdom's main trading partner in merchandise is China, with 14% of total exports going to the world's secondlargest economy and 25.8% of total imports coming from the nation in July 2025. The UAE ranked second with 10.6% of total exports and 6.4% of total imports, and India ranked third with 9.4% of total exports.

The UAE ranked second with 10.6% of total exports and 6.4% of total imports, and India ranked third with 9.4% of total exports

Saudi Arabia

South Africa

South Africa, US hold cordial trade talks

The Department of Trade, Industry and Competition of South Africa said that following talks involving senior officials, including the country’s Trade Minister Parks Tau and the US Trade Representative Jamieson Greer, there were “cordial and constructive” dialogues. However, there was no immediate word on when the trade deal would be concluded. The South African ministry has set up a “roadmap” that will be prioritised in future talks.

Relations between the United States and South Africa have soured since President Donald Trump took office earlier in 2025. While Washington froze key development aid to

South Africa, the situation further deteriorated when the Trump administration expelled Ebrahim Rasool, South Africa's ambassador to Washington, for publicly criticising the latter's policies.

Trump has also lashed out at South Africa for its position on the Israel-Hamas war, which has seen the country haul Israel before the International Court of Justice (ICJ) and accuse Israel of genocide in Gaza.

The 30% tariff is designed to preempt Washington's 30% levy on South African imports and could result in tens of thousands of job losses at a time when the nation's economy is barely growing.

United Kingdom's long-term inflation expectations rise

A survey published by the Citigroup and the opinion poll firm YouGov that indicates why the Bank of England (BoE) is being slow to cut interest rates, indicating that longer-term inflation expectations among the British public have risen off late.

The survey's measure of short-term inflation expectations was flat for the third consecutive month at 4.0%. Citi said the rise in the longer-term series was mirrored in other surveys, including the Bank of England's own monthly poll of businesses.

The Bank of England, which held its benchmark Bank Rate at 4% earlier September and indicated about slowing the pace of monetary policy relaxations in the months ahead as inflation pressures persist in the economy, has forecast that it will peak at 4% in September, double its 2% target, and only fall back to 2% in the spring of 2027. The BoE has forecast that it will peak at 4% in September, double its 2% target, and only return to 2% in the spring of 2027.

United Kingdom's headline inflation rate rose to 3.8% in August and was the highest among the G7 economies. Banks, insurers and asset managers have been scrambling to meet BoE officials to discuss the road ahead.

Generative AI reshapes financial sector

GBO Correspondent Analysis

The successful adoption of generative AI in financial services will hinge on collaboration between stakeholders

Industries are changing as a result of generative AI, which includes ChatGPT and other platforms that make processes more straightforward, effective, and user-friendly.

However, the advantages are accompanied by some significant hazards in the highly regulated financial services industry. Therefore, this new technology must be used sensibly to preserve stability and confidence.

Although technological advancements are nothing new to the financial services sector, generative AI offers a new and complicated environment. Reports or scholarly opinion pieces, which are typically speculative and devoid of empirical facts, are frequently the source of insights into its potential.

The recent research by Emmanuel Mogaji, Associate Professor in Marketing, Keele University, was motivated by the above-mentioned knowledge gap. He investigated the opportunities and difficulties of incorporating generative AI into financial services by speaking with bank managers and industry professionals, while also exploring how the consumer experience is changing as a result of this revolutionary technology.

Generative AI is much more than just utilising DALL-E 3 to create graphics or ChatGPT to generate text. To customise products like loans, investment plans, or insurance policies for a customer, it can be used to analyse their financial history and behaviour. Additionally, generative AI can be used to quickly decide whether to approve loan applications.

A customer may be used to obtaining product information via the chatbot at their bank. Some 42 million customers have interacted with Bank of America's virtual financial assistant, Erica, in over two billion engagements.

However, we are still unsure about who is accountable for

the recommendations and goods that generative AI makes. Does the AI itself, bank management, or leadership bear responsibility?

For instance, it is unclear if generative AI will provide a consumer with appropriate and reliable financial advice. Biases and a lack of sophisticated comprehension and judgement are cited by critics. Nevertheless, wealth managers view it as a useful "second pair of eyes," and it has the potential to develop into a trustworthy resource for private investors as well.

Artificial intelligence has the potential to improve the efficiency and accessibility of wealth management. Robo-investment platforms use AI to create personalised investment strategies and manage portfolios based on risk tolerance and financial goals. Without the need for direct human supervision, this method lowers expenses and provides portfolio monitoring around the clock. However, AI technologies need to be accurate and

dependable due to the high stakes and strict requirements of the financial sector. The issue still stands: is it ever possible to completely guarantee this degree of assurance and trust?

Obtaining individualised financial services is expected to be based on personalisation. Mogaji’s previous study examined the use of AI techniques to create customised advertising campaigns and marketing emails.

The potential for customised financial products and ads is enormous, given that banks can access a variety of client

Regulators have a responsibility to inform and reassure consumers about the new developments in generative AI. The Advertising Standards Authority and the Financial Conduct Authority need to make sure that adaptable frameworks are in place so they can keep up with the quick developments in artificial intelligence

data sets and use AI's creative ability. But at the same time, it gets harder to strike a balance between privacy and relevance. Furthermore, legitimate use of AI is not limited to banks and other entities. An era of deepfakes that deceive or cause customers to question what is real could be ushered in by generative AI's ability to create false or misleading advertisements. Customers must be vigilant and assess marketing messages closely as this environment changes. Scams may appear

more sophisticated thanks to AI, but standard precautions like confirming that communications originate from reputable websites, emails, or accounts remain valid.

“Watch out for poor grammar, ‘act now’ haste tactics, and altered URLs (such as ‘paypa1.com’ with the digit 1 in place of ‘paypal.com’). An online advertisement does not necessarily belong to you just because it features your name. AI might have created it to persuade you to click, which could have had devastating results,” Mogaji noted.

Customers must pay close attention to how they interact with advertisements, tools, and technology because this is a new environment for them. Even though financial services are strictly regulated, customers should make sure they are only using the legitimate resources that their bank offers.

Furthermore, even while ChatGPT can provide guidance, its creator, OpenAI, will not be held accountable for the suggestions it provides. It is far better for the customer to interact with his or her bank's chatbot if he or she wants to use AI. The person may thus be certain that the information he or she is receiving is coming from a reliable source.

Banks are held accountable for fulfilling legal and compliance requirements in the regulated financial services industry, which includes their usage of chatbots. This guarantees that businesses uphold industry norms and laws, safeguard customers, and deliver accurate and trustworthy information. For generative AI in general, this is not necessarily the case.

Additionally, regulators have a responsibility to inform and reassure consumers about the new developments in generative AI. The Advertising Standards Authority and the Financial Conduct Authority need to make sure that adaptable frameworks are in place so they can keep up with the quick developments in artificial intelligence.

This will entail striking a balance between innovation and consumer safety

by developing precise standards for the creation, application, and supervision of generative AI systems.

There is no turning back the generative AI genie. Customers must take the initiative to interact with this new and rapidly developing technology since it will continue to become an increasingly important part of daily life.

AI transforming financial services

Generative AI’s potential to revolutionise financial services is clear in applications such as personalised financial products, automated wealth management, and realtime loan approvals. The technology's ability to analyse vast datasets and deliver customised solutions can redefine how financial institutions interact with their customers. Yet, as promising as these capabilities are, they introduce complexities around accountability, data privacy, and ethical usage.

One of the most pressing concerns is the question of responsibility. This remains unresolved, leaving both consumers and institutions in a state of uncertainty. Financial advice and decisions made by generative AI must be transparent, unbiased, and accurate. However, biases inherent in AI models, combined with their lack of human judgement, pose risks to the reliability of such systems.

Generative AI’s role in marketing and customer interaction further underscores the need for vigilance. While it can craft personalised advertising and financial products, it also has the potential to create misleading or deceptive content, eroding consumer trust. The rise of deepfakes and AI-generated scams further complicates the landscape, making it imperative for customers to approach digital communications with heightened scrutiny. Financial institutions, in turn, must prioritise the ethical use of AI to safeguard consumer confidence.

Regulatory bodies have a critical role to

play in this evolving environment. By establishing clear and adaptive guidelines, they can foster innovation while ensuring consumer protection. Institutions such as the Financial Conduct Authority and the Advertising Standards Authority must develop frameworks that address the unique challenges posed by generative AI, from ethical use and compliance to mitigating risks associated with misinformation and fraud.

While generative AI offers immense convenience, users must remain cautious and ensure their interactions are limited to verified and trustworthy platforms. This includes relying on bank-endorsed chatbots and tools rather than third-party AI systems that may lack regulatory oversight.

Ultimately, the successful adoption of generative AI in financial services will hinge on collaboration between stakeholders. Financial institutions, regulators, technology developers, and consumers must work together to address ethical, operational, and technical challenges. This will require an ongoing commitment to transparency, education, and innovation.

Generative AI is here to stay, reshaping industries and daily life in profound ways. In the financial sector, its potential to enhance services and accessibility is undeniable. However, its transformative power must be wielded responsibly to protect consumer interests and maintain trust. By striking the right balance between innovation and regulation, the financial services industry can harness the full potential of generative AI while safeguarding the principles of fairness, transparency, and accountability.

Awareness and collaboration will be the keys to unlocking the benefits of generative AI while mitigating its risks. There is no turning back—only the opportunity to move forward wisely.

Many companies are shifting to nearshoring, friendshoring, or reshoring to build more diverse and resilient supply chains

The iron curtain of global supply networks

GBO Correspondent

Advanced technologies are addressing growing global disruptions in the critical fight for resilience. Global pandemics, trade disputes, wars in the Middle East and Ukraine, and catastrophic weather disasters are all causing supply chain disruptions at a rate that few could have predicted.

Risks have increased since COVID-19 swept the world, requiring governments, business associations, non-governmental organisations, and corporate chief financial officers to completely reimagine supply networks. And there is no indication that the threats of today will abate.

Global supply chains are rushing to adjust to demands for greener, more resilient networks as they prepare for increased tariffs, higher transportation costs, and a changing regulatory environment.

Experts caution that while technologies such as distributed ledger technology (DLT) and artificial intelligence (AI) offer new tools, the fundamental issues and growing fragility of globalisation will continue to exist.

"Global supply chains are undoubtedly entering a new era, but the risks of today weren't completely unknown in the past," says Tinglong Dai, a professor of operations management and business analytics at Johns Hopkins University’s Carey Business School.

Although extreme weather has always been dangerous, Dai claims that its frequency and severity have never been higher. In a similar vein, dangers like the Houthis' attacks on shipping in the Red Sea have escalated.

"The true change is our realisation that the global supply chain model of the past three decades is unsustainable, especially given today’s shifting geopolitical realities," Dai said.

“The United States can no longer rely on a supply chain structure that centres on China. We are heading toward what I would call: supply chain iron curtain," he added.

Top 10 Supply Chain Management Vendors in 2024

SAP

Oracle

Blue Yonder

E2open

WiseTech Global Manhattan Associates

SPS Commerce

Verizon Connect Kinaxis

Descartes Systems Group

Source: Apps Run The World

Increasing shipping charges

According to Zach Zacharia, associate professor of supply chain management and director of the Centre for Supply Chain Research at Lehigh University’s College of Business, "The world has changed very much, and the risks of global manufacturing and transportation have increased tremendously. The cost and time required to transport goods have changed as a result of the large shipping lines ceasing to operate through the Red Sea."

Events have compelled businesses to examine shipping costs more carefully. Zacharia goes on to say that Russia's invasion of Ukraine was a setback to globalisation. In the past, it made sense to manufacture a product at the lowest possible cost and then deliver it efficiently.

But once Ukraine was attacked and COVID-19 struck, he said, "It became much more important to consider not just producing it cheaply but also transporting it back safely at a low cost."

According to Jan Hoffmann, head of trade logistics at the United Nations Conference on Trade and Development (UNCTAD), "We do see more volatility in maritime supply chains."

UNCTAD's Review of Maritime Transport 2024, which was released last September, revealed that "important chokepoints like the Suez and Panama Canals are increasingly vulnerable to geopolitical tensions, conflicts, and climate change."

Given that US President Donald Trump has indicated his aim to increase their use, tariffs may soon become problematic. While many view tariffs as a counterproductive strategy, they played a significant role in the recent US presidential campaign.

Zacharia warns that they don’t actually make sense because tariffs always lead to retaliatory levies. However, given the current geopolitical environment, they are certain to spread.

According to Rouben Indjikian, a professor at Webster University in Geneva and a former executive director of UNCTAD’s Global Commodities Forum, "a

surge in trade conflicts, especially between the US and China, is altering traditional trade flows between these leading trade partners."

One recent instance is when China purchased soybeans from Brazil instead of the US, which is its usual source.

According to Evan Smith, co-founder and CEO of Altana AI, "Just-in-time fragility is another effect of globalisation. For instance, Boeing used to have complete control over the value chain involved in producing its aeroplanes. It's just doing the last assembly of its planes today."

This implies that, as was the case with Boeing in July, the entire manufacturing line may have to stop if supplies of components like seats and engines from one or more upstream suppliers are disrupted for any reason.

"This outsourced, efficiency-at-allcosts supply chain (favoured by so many companies) is efficient only under conditions of stability, which is not the case today," Smith said.

According to Dai, businesses and organisations must pursue a varied strategy of friendshoring, nearshoring, and reshoring, with restoring production to the United States only part of the broader goal.

He contends that this won't protect businesses against hazards on its own, especially those brought on by climate change.

"We must diversify by working with allies and neighbouring nations in addition to collaborating across US regions. A few people have already walked this path. Apple’s global supply chain has been successfully de-risked. They’ve taken proactive measures to lessen dependency on any one nation or area, adding a great deal of flexibility and resilience," he noted.

A change in regulation at sea

Given the current global regulatory environment, supply chain management for firms may become more complicated— and costly. According to McKinsey’s 2024 Global Supply Chain Leader Survey,

only 9% of respondents say their supply chains are currently in compliance with the EU’s Corporate Sustainability Due Diligence Directive. The directive imposes environmental and human rights due diligence requirements on large EU companies as well as large non-European Union (EU) companies operating in the EU. However, the directive is already in effect for some companies.

Although "the transition to greener ships and low-carbon fuels is still in its early stages," UNCTAD acknowledges that "rapid decarbonisation is critical" with reference to global supply chains.

Smith notes a significant change in regulation. Governments now require businesses to understand their entire supply chains. After being enacted into law at the end of 2021, the US Uyghur Forced Labour Prevention Act mandates that businesses take action to stop forced labour in their supply networks.

All businesses that utilise supply chains involving China's Xinjiang Uyghur Autonomous Region must implement and document thorough due diligence measures to ensure compliance with US laws. They

must also trace their supply chains for any potential exposure to forced labour, as stated by the US Customs and Border Protection agency.

“It’s not always simple. A major US clothing company may know who makes its clothes and where the fabrics in the production process come from, but not the cotton. The clothing company now has to make sure that the cotton that will be spun, woven into textiles, and fashioned into clothing that will be sold in US retail stores isn’t picked using forced labour,” Smith adds.

Do new technologies shape future?

How does a business or organisation reduce supply risk in this more unstable environment? Can new technology help, especially artificial intelligence?

Peter Liddell, Global Operations Centre of Excellence Lead and Global Sustainable Supply Chain Lead at KPMG Services in Singapore, says that more companies are using huge supply chain datasets and machine learning algorithms to use predictive analytics. This "allows for very fast decision-making and mitigation of supply

All businesses that utilise supply chains involving China's Xinjiang Uyghur Autonomous Region must implement and document thorough due diligence measures to ensure compliance with US laws

risks before they arise," he said.

"Global supply chain leaders across all industries and all jurisdictions are embracing AI as a top priority right now," he added.

According to KPMG’s 2024 CEO Outlook, which polled 1,325 CEOs globally, supply chain disruption was identified as the biggest risk to company expansion.

In contrast, supply chain risk only came in at number five in KPMG’s 2022 report. Significantly, according to Liddell, "Around 64% of global CEOs surveyed said they would invest in AI regardless of the economic conditions."

Many businesses are already utilising AI-based solutions to enhance supply chain "visibility," which refers to the ability to monitor and track the movement of information and goods across the supply network. This is the most popular use case for AI, with 55% of supply chain executives polled for the McKinsey report stating they were utilising it for this reason.

Additionally, according to the survey, "the share of respondents who say that they have good visibility into deeper levels of the supply chain fell by seven percentage points, the second consecutive annual decline in this measure."

This rate of AI usage supports the growing complexity of supply chains.

However, Shawn Fitzgerald, senior research director at a strategic consulting business, believes that creating "what-if" scenarios is where AI could be most helpful. Fitzgerald observed that logistics can be significantly improved by "gaming out"

scenarios in advance using AI-assisted predictive analytics. For example, a manager could consult the algorithm to determine whether shipping goods by water or air is safer and more efficient.

Governments are increasingly focused on sustainability, and supply chains should prepare for heightened pressure to ensure they contribute to solutions rather than exacerbate problems. Eventually, businesses may need to monitor each stage of the supply chain process closely.

"DLTs’ ability to make data public, keep track of every transaction, and name the people involved can make product tracking and traceability more accurate and reliable, especially when there is more uncertainty in geopolitics and worries about trading partners," Liddell said.

"For supply chains to facilitate ESG Scope 3 reporting, visibility and traceability are two essential requirements," he continues.

The international corporate value chain standard includes certain reporting standards, which may encourage the widespread use of blockchain and DLTs.

What are the roles of CFOs?

Liddell reports that some supply chain executives are creating plans for the next five to ten years using a greenfield-planning technique, which necessitates a fresh start.

“The supply chain planning function is also being planned for complete automation by a few firms, but this is likely to be far more difficult than many expect," Liddell said.

Shawn Muma, director of supply chain innovation and emerging technologies at the Digital Supply Chain Institute, a research organisation of the Centre for Global Enterprise, said, "I think that organisations want to better understand their own risks, their suppliers’ risks, and their suppliers’ suppliers’ risks, and they ask for mitigation plans, but they haven’t significantly increased their own investments in risk mitigation."

“This is still true even though new AI/ML tools are being made to help

businesses make better decisions. For example, optimal machine learning (OML) can look at huge amounts of historical and current supply-and-demand data and make suggestions about things like the best levels of production and the best ways to ship goods,” Muma added.

According to Indjikian of Webster University, CEOs and CFOs are increasingly using digital enterprise resource planning (ERP) software. ERP enables businesses to integrate the supply chain into their overall production, distribution, and transportation strategy.

However, digitisation and ERP have their limits. According to Indjikian, "early warning systems can be improved by digitisation, but they are not easily able to overcome geopolitical risks, particularly climate events and their consequences."

"It really comes down to diversification. A shipper will attempt to rely on multiple carriers, routes, ports, transportation methods, and suppliers of goods," adds Hoffmann of UNCTAD.

Businesses should also avoid complex, multi-layered supply chains that make them dependent on their supplier, their supplier’s supplier, etc.

Overall, Smith of Altana AI contends that corporate boards and upper management need to respect supply chain management because it is no longer just a back-office, logistics-related job that involves ensuring that things arrive on schedule and in the most economical manner.

Fitzgerald affirms that businesses will need to prioritise supply chain management at the executive level. In addition to investing in continuous training and hiring and retaining the best talent, they must "make sure there is a career track for supply chain professionals to advance and partner with the business over time."

The growing use of technologies like AI, DLT, and predictive analytics is reshaping supply chain management. These tools help businesses track supply chains, predict disruptions, and respond faster.

Artificial intelligence and machine

learning allow companies to test different scenarios, improve routes, and reduce risks before problems occur. DLT creates secure and transparent records of transactions, helping ensure traceability and compliance with environmental and labour standards. However, technology alone cannot solve deeper global issues. Heavy dependence on one country or region for manufacturing still poses risks. Many companies are shifting to nearshoring, friendshoring, or reshoring to build more diverse and resilient supply chains.

Climate change and geopolitical conflicts are also driving up transportation costs. Closures of key routes like the Suez and Panama Canals have disrupted global trade, pushing companies to rethink logistics and invest in greener transport options. Governments are enforcing stricter rules on labour and sustainability. Laws such as the US Uyghur Forced Labour Prevention Act and the EU’s Corporate Sustainability Due Diligence Directive require greater transparency.

For CEOs and CFOs, supply chain resilience is now a key priority. Businesses that plan strategically, use digital tools, and adapt quickly will be better positioned to handle global uncertainty.

Governments are enforcing stricter rules on labour and sustainability. Laws such as the US Uyghur Forced Labour Prevention Act and the EU’s Corporate Sustainability Due Diligence Directive require greater transparency

Job Seekers

When everyone uses AI, no one stands out

GBO Correspondent

An increasing number of job seekers are taking a more drastic approach by applying directly to available positions on their own behalf using AIpowered apps

As 2025 approached, the US labour market's placid exterior belied currents of stagnation, discontent, and concern. Employers were taking longer to fill available positions, and an increasing percentage of disengaged workers were remaining in their current positions because of fear that it would be difficult to find better employment.

Elon Musk, President Donald Trump, and their Department of Government Efficiency have now let go of thousands of federal workers. These employees are now going back to work. Additionally, because tariffs are constantly changing, businesses and workers alike are attempting to predict the effects of tumultuous financial markets. This economic turmoil is bringing the turbulent currents of the labour market to the forefront.

Many job seekers are using new artificial intelligencepowered job-finding applications in response to these difficulties. Ironically, though, these tools are probably going to make the current problems worse and make finding a job more difficult rather than easier.

Understanding the history of AI tools and how businesses currently recruit people can help one comprehend why these tools, which are intended to assist individuals in applying for jobs, will make the labour market more difficult to traverse.

The use of AI in the hiring process is not a recent development. When businesses started using AI-powered technologies to sift through the hundreds of applications they were receiving for open online job posts in the 2010s, it became widely used on the employer side.

The AI algorithms integrated into these applicant tracking systems, which are programmes used by

Analysis \ Hiring

businesses to oversee the recruiting process, searched for phrases that matched those in job descriptions and incoming resumes. The resume of a job seeker most likely passed the screening if there was a sufficient match.

On the surface, these techniques appeared to provide employers an edge over job searchers. The majority of actual hires were not selected from the pool of applicants who applied online without having any contact with the hiring manager, although businesses did use these tools to narrow down their hiring funnels.

Instead, estimates indicate that more than half of jobs, possibly as high as 85%, are still found through personal relationships, even in the face of the democratisation of internet job advertisements. This imbalance is caused in large part by the lack of trust that exists between employers and job seekers when they communicate online.

These days, online job descriptions are a lengthy list of abilities, credentials, and generalisations about work

culture and style that have been lifted from previous job descriptions, advertisements from rival companies, and requirements for salary and title grading at the appropriate level of the position.

The ambiguity and meaninglessness of today's job descriptions make it impossible to fill roles as specified. Consider the numerous job advertisements for entry-level positions that require "two years of experience."

Many job descriptions require college degrees, despite some employees lacking them. Indeed, it might occasionally seem like businesses are searching for people who don't exist if you look through enough job advertisements.

At the same time, as AI-powered applicant monitoring systems filter out candidates who don't fit the required qualifications, experiences, and traits outlined in these job descriptions, potential hires have learnt to exaggerate their resumes and make themselves appear superhuman.

Companies that previously received only hundreds of applications for available positions now report receiving thousands.

As a result, companies will probably rely more on human contacts to help them locate personnel, since they have less faith in the AItailored resumes that are flooding the market

Applicants are increasingly inflating their experiences to get past AI-powered gatekeepers.

This cycle has resulted in a lack of trust in the cover letters and resumes submitted online. Because of this, HR managers frequently like to find candidates through a reliable referral from a person they know. Yes, that could result in a longer time to fill available positions. However, if a better fit is found, the delay can be worthwhile from the standpoint of the business.

This dynamic has the effect of making it unlikely to assist job searchers as they start applying for jobs online, utilising AI tools. In fact, it is probably going to put the labour market into a hiring doom cycle driven by AI, which will force companies to hire even more people from their personal networks.

A recent Canva poll found that 45% of job searchers worldwide use AI to draft and edit their cover letters and resumes. Additionally, an increasing number of job

seekers are taking a more drastic approach by applying directly to available positions on their own behalf using AI-powered apps like JobCopilot and LazyApply. Unfortunately, positive experiences with these AI-powered apps are not common. Because hiring managers will receive more applications than they can handle, it might get increasingly harder for job seekers to find a position online as more of them use these automated application systems. Companies that previously received only hundreds of applications for available positions now report receiving thousands. As a result, companies will probably rely more on human contacts to help them locate personnel, since they have less faith in the AI-tailored resumes that are flooding the market.

Hiring practices that place an undue emphasis on personal relationships cause issues for employers as well as job seekers. Businesses will probably continue to find that their new hires belong to the same

social circles as their current staff, even when they try to increase the diversity of their applicant pool by attracting a lot of candidates.

There are drawbacks to networkbased hiring for job seekers as well. If landing a job is based solely on who you know, it frequently leaves out people with small networks. As demonstrated by Raj Chetty's Opportunity Insights research at Harvard University, networks are heavily influenced by class, especially at the top.

Accordingly, people from disadvantaged socioeconomic origins frequently have a far smaller number of high-income contacts. Additionally, considering how many jobs are filled by people you know, low-income Americans have fewer opportunities to access higher-paying occupations.

As these relationships become more important in job hunting, people must build their networks in real life, not just on social media or with AI bots.

Although networking may "feel dirty," it will become more and more important as AI complicates the job search process. Instead of reaching out to a prospective network member specifically to request a job, develop the habit of showing interest in the work that other professionals do. To find out what they do on a daily and weekly level, speak with people who hold positions that interest you.

In other words, learning and development should be the main focus. Your network will grow over time, and you will discover what kinds of jobs suit you, your special talents and background, and the kinds of work that excite you.

Becoming a self-aware person who knows what opportunities exist, appreciates what they have to offer, and shows genuine interest in other people should be the aim. This will make you stand out as someone whom people who trust you would recommend, which is something AI cannot replicate.

The rise of AI in the job market was

supposed to democratise opportunity. Instead, it is accelerating inequality, deepening mistrust, and forcing both job seekers and employers back toward an old, uncomfortable truth, which is that realworld relationships matter more than ever. In the noise of AI-generated resumes and mass applications, trust has become the ultimate currency. Credentials are losing weight. Cover letters are losing their impact. Algorithms are flooding inboxes with thousands of lookalike profiles. Employers, overwhelmed and disillusioned, are turning inward, opting instead to rely on personal networks and human recommendations to find the talent they can trust.

This implies that individuals who foster genuine human connections will subtly rule the new economy, while those who rely solely on automation will face exclusion. It is no longer enough to build a LinkedIn profile or send out a hundred AI-enhanced resumes. You have to show up as a real, curious, engaged person who is present in the spaces where opportunity lives.

The future belongs to those who are willing to build trust the slow, real, human way. Those who do will find that even in a turbulent labour market, doors will quietly open where none seemed to exist.

As part of a smart city initiative, Changsha, the provincial capital of Hunan, is utilising DeepSeek to examine real-time urban management data

Is DeepSeek really China’s ChatGPT moment?

GBO Correspondent

What is the connection between a local Chinese government office, a nuclear power facility, and a mobile shooting game? To capitalise on the viral success of the domestic tech startup, they have all attempted to integrate DeepSeek's R1 artificial intelligence model into their operations during the last two months.

DeepSeek has been making headlines in China since the Chinese AI firm went viral, yet the news hardly has anything to do with DeepSeek. Companies across various sectors are eager to announce their successful incorporation of DeepSeek's open-source models into their business strategies.

While some have discovered real applications for the homegrown, reasonably priced AI model with state-of-the-art capabilities, others are only doing so to bolster their national pride or garner media attention.

According to local press sources, more than twenty Chinese manufacturers have announced that they are integrating DeepSeek's chatbot into their cars. About 30 pharmaceutical and medical businesses have reported using DeepSeek for various purposes, including clinical diagnosis and research.

Numerous banks, insurance providers, and brokerage houses nationwide

As competition among Chinese electric vehicle manufacturers has increased in recent years, automakers have been compelled to continuously create innovative features that may dazzle consumers—a task that DeepSeek's models are well-suited for

have also revealed that they are utilising DeepSeek to train customer care representatives, create investment plans, and perform related duties.

The craze is similar to what happened in 2022 when ChatGPT was introduced and American and European businesses rushed to figure out how to let investors and customers know they were interacting with the most advanced AI technology at the time.

DeepSeek shocked the world by releasing an AI model that the startup claimed was built using far fewer computing resources than comparable models released by major companies. Since then, Chinese tech giants like Baidu and Alibaba have released impressive AI models, but they have never been able to garner the same level of attention as DeepSeek.

As of March 11, almost 5,000 enquiries concerning DeepSeek had been recorded on a Chinese online stock exchange platform that allows private investors to contact publicly traded companies. Most of these

enquiries ask specific companies if they have thought about or are currently utilising DeepSeek in their products.

As a result, hundreds of businesses have acknowledged that they are implementing the technology, which often results in a brief rise in stock price. However, some companies' value drops after investors realise that they are merely claiming to be testing DeepSeek's programme internally.

Certain DeepSeek-related statements, such as cloud computing businesses announcing that they will offer DeepSeekR1 to their clients and Chinese domestic AI chip manufacturers tailoring their chips to run DeepSeek's models, make perfect sense.

DeepSeek's AI may not help many companies that seem only interested in influence in the long run. For instance, Cherry, a German manufacturer of computer accessories, introduced an "AI mouse" in China that allows users to lift it to their mouth, press a button, and immediately speak with DeepSeek's chatbot.

Tencent's mobile shooting game uses DeepSeek to power an in-game assistant that can, among other things, tell players if they are going to have a nice gaming session that day. State-owned nuclear power operator CGN Power said that DeepSeek had been integrated into its AI system to help staff members "understand complex questions and deal with them efficiently."

China's local governments are also adopting DeepSeek. Shenzhen officials stated that DeepSeek-powered applications have been deployed on the cloud for all government agencies throughout the city.

As part of a smart city initiative, Changsha, the provincial capital of Hunan, is utilising DeepSeek to examine real-time urban management data. Professors or specialists from state-owned businesses are also giving lectures to thousands of government officials and workers nationwide, explaining what DeepSeek is and how its technology can be applied.

The fact that DeepSeek's open-source business model emerged at a time when

Chinese enterprises were already searching for ways to use AI to transform their products is one factor contributing to its success. Its tools are also user-friendly and reasonably priced.

Paul Triolo, the China practice and technology policy lead at consulting firm DGA-Albright Stonebridge Group, wrote in a blog post that "Chinese companies experimenting with deployment of AI models for business operations were primed for the release of such a capable open source/weight model, which dramatically lowers costs for deployment."

For instance, as competition among Chinese electric vehicle manufacturers has increased in recent years, automakers have been compelled to continuously create innovative features that may dazzle consumers—a task that DeepSeek's models are well-suited for.

While "requiring lower compute costs, which means lower hardware cost," DeepSeek provides "a better and faster interactive experience," according to Lei Xing, a Chinese-market auto expert and former editor of China Auto Review.

Thanks to the technology, electric vehicle firms may quickly create sophisticated smart assistants without paying for the upfront research and development costs that are often involved.

Liqian Ren, a quantitative investment specialist at WisdomTree, asserts that many Chinese businesses are merely capitalising on the attention wave.

According to her, investors frequently fluctuate sharply from extremely positive to extremely negative emotions, and the Chinese equity market is still mostly influenced by public opinion rather than real company performance. Businesses may easily create media attention and attract investors by implementing DeepSeek's methods. However, the West's panic over Deep-Seek has also helped boost its popularity in China.

As per Angela Huyue Zhang, a law professor at the University of Southern California who specialises in Chinese

technology policy, "Its positive reception abroad has further boosted its popularity in China, serving as the firm's best marketing campaign."

China's national pride has grown as a result of the notion that DeepSeek is undermining American dominance in AI. The creation of resource-efficient models, perceived as a direct reaction to US policies intended to deny China access to advanced semiconductors, is a key component of the company's heroic founding myth.

In a speech on March 7, China's Foreign Minister, Wang Yi, said, "Where there is blockade, there is breakthrough; where there is suppression, there is innovation."

He also likened DeepSeek to China's earlier technological innovations in fields such as space exploration and nuclear weapons development.

According to Ren, DeepSeek became a symbol of the potential of China's AI business in the era of geopolitical tensions with the United States because of the international response to the company, which was initially stronger than the local response in China.

“In light of the chip sanctions, many understand China can catch up, which gives many Chinese citizens more confidence. And for that reason, I believe DeepSeek's models had a greater influence than those of Alibaba, ByteDance, or Baidu," Ren concluded.

QIA, Blue Owl form digital infra partnership

The Qatar Investment Authority (QIA), the sovereign wealth fund of the Gulf country, has formed a Strategic Partnership Agreement with Blue Owl Capital. Their goal is to develop a digital infrastructure platform that will facilitate rapid global computing for the leading hyperscalers worldwide.

QIA will contribute to the partnership by launching a digital infrastructure platform with over $3 billion of initial data centre assets that is expected to scale over time, and the firm will bring to the partnership a global investment perspective, a long-term capital base, and a deep experience in infrastructure and technology sectors in line with Blue Owl's permanent capital strategy.

QIA CEO Mohammed Saif al-Sowaidi said,

Trump approves Chinese divestment of TikTok News Technology

United States President Donald Trump pushed for American investors to purchase TikTok's American operations from its Chinese parent company ByteDance, with officials setting a price tag of up to $14 billion and

"We are pleased to partner with Blue Owl in this transformational digital infrastructure platform. This partnership aligns with QIA’s strategy to engage with leading global firms that are addressing the world’s growing demand for data centres. QIA and Blue Owl are committed to scaling digital infrastructure that will meet the growing demand for data storage and computation requirements globally, with a particular focus on increasing data connectivity."

QIA’s goal is to develop a digital infrastructure platform that will facilitate rapid global computing for the leading hyperscalers

describing how they would ensure the security of the new venture, according to an executive order Trump signed at the White House. The deal meets the 2020 law requiring ByteDance to divest control or face a ban in the United

States, Trump said in his executive order, while reiterating that he had received consent from his Chinese counterpart, Xi Jinping, for the deal.

“I had a very good talk with President Xi. We talked about TikTok and other things, but we talked about TikTok, and he gave us the go-ahead," Trump told reporters in the Oval Office of the White House.

Under the deal Trump is trying to complete, TikTok would restructure its US operations into a new, US-based company controlled by American investors, and ByteDance's stake would be reduced to less than 20%, the minimum allowed under the national security law. A sale would fulfil a Trump campaign pledge and eliminate a thorn in the side of bilateral relations with Beijing.

OpenAI, NVIDIA announce strategic tie-up

Artificial intelligence giants OpenAI and NVIDIA recently announced a letter of intent for a landmark strategic partnership to deploy at least 10 gigawatts of NVIDIA systems for OpenAI's next-generation AI infrastructure to train and run its next generation of models on the path to deploying superintelligence.

In support of this deployment, including data centre and power capacity, the chip giant will invest up to $100 billion in OpenAI as the new NVIDIA systems are deployed, with the first phase targeted to come online in the second half of 2026 using the NVIDIA Vera Rubin platform.

The deal gives chipmaker NVIDIA a financial stake in the ChatGPT maker, while OpenAI gets the cash and access it needs to buy advanced chips that will help it maintain its dominance in an increasingly competitive tech landscape. Rivals of both companies may be concerned that the partnership will undermine competition.

According to Reuters, the deal will consist of two separate but interconnected transactions. Also, Nvidia will begin investing in OpenAI with non-voting shares once the deal is finalised. Only then will the AI startup be able to use the cash to buy NVIDIA’s chips.

Meta launches ‘Vibes’ feed amid AI revamp Cloud

Meta is releasing "Vibes," a new feed in the Meta AI app and on meta.ai, where users will be able to create and share short-form, AI-generated videos.

Meta CEO Mark Zuckerberg rolled out Vibes in a post on Instagram that includes three AI-generated videos: a group of fuzzy creatures jumps from one fuzzy cube to another, a cat kneads dough, and an apparent Egyptian woman snaps a selfie from a balcony above Ancient Egypt.

As you scroll the new feed, Meta says you will see AI-created videos from creators and other users, and the algorithm will eventually personalise content for you. You can either create a video from scratch or remix a video you come across in your feed, layer in music, and change styles before you post the video to the Vibes feed, DM it to others, or post

it to Instagram and Facebook Stories and Reels.

Meta’s chief AI officer Alexandr Wang shared in a post that the company has partnered with AI image generators Midjourney and Black Forest Labs for the early version of Vibes, while Meta continues developing its own AI models.

Vibes' launch comes amid Meta heavily revamping its AI efforts amid concerns of falling behind OpenAI, Anthropic, and Google DeepMind.

Meta CEO Mark Zuckerberg rolled out Vibes in a post on Instagram that includes three artificial intelligencegenerated videos

Chip cooling startup Corintis raises $24M

Switzerland-based deeptech start-up Corintis, which was ranked first in the 2025 Top 100 "Swiss Startup Awards," has secured a Series A financing round of $24 million to scale production of its microfluidic cooling systems. The company also plans to expand its team to 70 by year-end from 55 currently, scale up manufacturing, and open offices in the United States and Germany, where many of its customers are based.

The round was led by BlueYard Capital, with participation from Founderful, Acequia Capital, Celsius Industries, XTX Ventures, and others. The company has raised a total of $33.4 million to date.

Lip-Bu Tan, Chairman of Walden International and incoming CEO of Intel, has joined the board of directors, as has Geoff Lyon, former CEO and founder of CoolIT, further positioning Corintis at the intersection

of semiconductor design, manufacturing, and advanced cooling solutions.

The announcement comes on the heels of a breakthrough earlier in September in a collaboration with Microsoft, where the two companies demonstrated an in-chip microfluidic cooling system that removed heat three times more effectively than state-of-theart technologies.

Corintis plans to expand its team to 70 by year-end from 55 currently and scale up manufacturing

Apple gets ground running on foldable iPhones plans

Apple is in discussions with suppliers to create a test batch of foldable iPhones in Taiwan and mass-produce them in India, aiming for a release in 2026, according to Nikkei.

The iPhone maker is looking

to produce approximately 95 million units of its next lineup due in 2026, an increase of more than 10% from 2025, and Apple believes it will be able to reach this goal by launching a longawaited foldable model, the

Nikkei report said.

The talks aim to tap the engineering resources and ecosystem of Apple suppliers in Taiwan to build a mini pilot line for equipment testing and fine-tune the parameters and manufacturing steps for making a foldable iPhone. Reports indicate that the process will be replicated in India once the steps for mass-producing the phones are determined. A location in a northern Taiwanese city has been identified as a potential site for the proposed pilot line.

Apple, which has not raised prices in response to United States President Donald Trump's tariffs that have curbed its profit, unveiled an upgraded line of iPhones at its annual product launch event, as well as a slimmer iPhone Air.

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