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The B2B growth advantage: what top performers do

Bain’s key takeaways:

1. Leading B2B firms achieved double the average revenue growth of their industries in 2024, with similar results for gross margins
2. These companies leverage AI and technology on a larger scale to enhance sales, pricing, and productivity
3. They effectively implement a targeted, repeatable Sales Play System
4. Intelligent dynamic pricing enables top firms to maintain profit margins amid economic shifts

Source: https://www.bain.com/insights/the-b2b-growth-divide-commercial-excellence-agenda-2025/

Revolutionizing credit ratings through data insights

Key points:

1. Challenges of traditional ratings: The issuer-pays model limits credit rating access for mid-sized firms
2. Value of aggregated data: Credit Benchmark gathers and anonymizes bank data, showcasing the need to understand risk across FIs
3. Future of finance data: AI‘s potential in improving data analysis emphasizes the dynamic nature of capital markets and the necessity for adaptability

Source: https://www.oliverwyman.com/our-expertise/podcasts/innovators-exchange/aggregated-credit-data-in-ratings.html

Majority of U.S. consumers willing to adopt digital wallets for international payments

A recent PMNTS survey reveals that over 40% of consumers prefer digital wallets for cross-border transactions, with the U.S. figure soaring to 44%. Banks in the U.S. and U.K. are increasingly partnering with FinTech firms to enhance payment speed. Among U.S. consumers, 55% plan to adopt digital wallets to send or receive cross-border payments.

Source: https://www.pymnts.com/mobile-wallets/2025/55percent-united-states-consumers-poised-adopt-digital-wallets-cross-border-payments/

Feel Good Sunday: The power within you

Hope is a skill, not just a feeling, says climate activist Xiye Bastida.

Drawing inspiration from nature’s resilience, she emphasizes trusting Indigenous leaders who’ve safeguarded the planet for generations. This approach can transform climate despair into momentum for real change.

Remember, the fire in your heart is your greatest strength for building a better future.

Source: https://www.ted.com/talks/xiye_bastida_your_inner_fire_is_your_greatest_strength

Curious Saturday: Will your next computer be your glasses?

Imagine wearing ordinary glasses that can quickly summarize books, translate languages, or help you find your keys.

In a live demo, computer scientist ell here comes act two of the computing revolution. AI and XR are converging, unlocking radical new ways to interact with technology on your terms. Computers will become more lightweight and personal. They will share your vantage point, understand your real-world context and have a natural interface that’s both simple and conversational. introduces Google’s new Android XR platform designed to empower users with AI through smart glasses and headsets.

Joined by colleagues onstage, he offers a glimpse into the future of “extended reality” (XR) devices — intelligent, seamless technology right before your eyes.

Source: https://www.ted.com/talks/shahram_izadi_the_next_computer_your_glasses/transcript

The U-bend of life

Young adults are generally happy, but as they transition to middle age, their spirits often decline, hitting a low point known as the mid-life crisis.

What’s surprising is that as people approach old age and lose cherished attributes — vitality, mental sharpness, and appearance — they attain something they’ve sought throughout life:  happiness.

Source: https://www.economist.com/christmas-specials/2010/12/16/the-u-bend-of-life?itm_source=parsely-api

What consumers want from personalization

A BCG survey of 23,000 consumers highlights the pros and cons of personalized brand interactions

Key takeaways:

1. ~80% of respondents are comfortable with personalization and expect it from companies
2. The top 3 benefits cited are value, enjoyment, and convenience
3. 67% have encountered at least one negative personalized experience that ended their engagement
4. Attitudes toward data use vary significantly by geography, age, and context

Source: https://www.bcg.com/publications/2024/what-consumers-want-from-personalization

How a UAE bank is leading with AI and advanced analytics

AI holds immense global potential. McKinsey research indicates that in the Middle East, it could generate up to $150B — about 9% of the GDP for GCC countries. Emirates NBD (ENBD), a top bank in the UAE, recognized this opportunity and initiated a transformation to become an AI-driven organization.

Source: https://www.mckinsey.com/industries/financial-services/how-we-help-clients/how-a-uae-bank-transformed-to-lead-with-ai-and-advanced-analytics

Customers favor digital accounts

To improve customer loyalty, traditional banks should upgrade their outdated technology and tailor account experiences to align with users’ needs. By adopting intuitive interfaces and offering personalized services, these banks can compete effectively with digital-only FIs that prioritize user satisfaction.

https://www.bain.com/insights/customers-prefer-digital-banks-basic-accounts-snap-chart/

It’s time for banks to rethink their M&A approaches

Mergers and acquisitions in banking have slowed since mid-2022, but a rebound is expected due to favorable interest rates, supportive regulations, and pent-up demand. To seize upcoming opportunities, banks need to prepare for acquisitions that enhance their scale. RSM’s Bank Director’s 2025 Bank M&A Survey shows many FIs are ready.

Source: https://rsmus.com/insights/industries/financial-services/banks-should-revisit-their-ma-strategies-for-2025.html

Feel good Sunday: The benefits of joy and flexibility in business

“Companies will thrive or struggle based on employee enjoyment,” says management consultant Rosie Sargeant. She shares three tips to enhance workplace joy, improve retention, and elevate customer satisfaction, highlighting that fun — like kangaroo-themed check-ins — can be both professional and profitable.

Source: https://www.ted.com/talks/rosie_sargeant_why_joy_and_flexibility_are_good_for_business

The ethicist’s way to a good life

Claiming values is easy, but how do you act on them? Ethicist and rabbi Ira Bedzow helps individuals tackle this question for a more meaningful life. He speaks with Shoshana Ungerleider, physician and host of “TED Health,” about having multiple purposes, defining success personally, and the importance of community in achieving fulfillment.

Source: https://www.ted.com/talks/ira_bedzow_an_ethicist_s_guide_to_living_a_good_life

Why Asia’s love for gold endures

Asian nations are significant consumers of gold. Last year, India led global purchases with 560 tonnes of gold jewelry, surpassing China’s 510 tonnes.

Indians also acquired 240 tonnes in bars and coins, while Chinese buyers purchased 345 tonnes. In Thailand, bullion demand surged by 17% in 2024 to reach 40 tonnes, driven by the rise of online gold-selling apps.

Together with markets like Indonesia and Vietnam, Asia constituted 64.5% of worldwide demand for gold jewelry and bullion last year (excluding central-bank purchases), compared to just 6.5% from America.

Source: https://www.economist.com/asia/2025/04/13/why-asias-love-affair-with-gold-persists

Businesses must stay vigilant as cybersecurity threats change

Key findings from RSM’s US middle market business index on cybersecurity:

1. 18% of executives reported a databreach last year, down from 28%
2. 91% plan to boost cybersecurity budgets in the next year
3. 26% faced at least one ransomware attack, with larger firms being more vulnerable

Source: https://rsmus.com/middle-market/cybersecurity-mmbi.html

Banks must adopt bolder strategies to tap into a $7 trillion opportunity

For banks to remain competitive, they need to boost productivity and minimize complexity costs.

By embracing a digital-first approach and understanding key cost drivers, banks can create a zero-based business model that enhances productivity by 40% above current norms.

Source: https://www.bcg.com/publications/2024/how-banks-can-navigate-disruption-in-the-global-financial-ecosystem

M&A is resurgent in US banking

Bain – Key takeaways:

1. US banks are keen on mergers, spurred by regulatory easing, reduced unrealized losses, and market consolidation;
2. Successful past mergers focus on local leadership rather than national growth;
3. Winners in M&A understand the importance of IT integration and collaboration for smooth transitions;
4. Maintaining customer trust and avoiding service disruptions are vital to prevent defections and reputational harm.

Source: https://www.bain.com/insights/m-and-a-is-back-in-us-banking/

From A to Z: Engaging younger generations in credit unions

Key takeaways:

1. Credit union members tend to be older, with baby boomers outnumbering millennials and Gen Z. Attracting younger members is crucial for the future growth of credit unions
2. Gen Z shows lower engagement levels with credit unions due to unfamiliarity, which hinders their membership potential
3. This generation demands fast, mobile-first financial tools. To remain competitive, credit unions must provide digital payments, seamless authentication, and app-based card management.

Source: https://www.pymnts.com/tracker_posts/from-aging-to-z-how-cus-can-capture-younger-generations/

Happy Easter! 🌸🐣

As spring brings renewal and growth, the team at Loquat wishes you a happy Easter filled with fresh perspectives, exciting opportunities, and meaningful moments.

This season reminds us of the power of new beginnings — whether it’s launching innovative ideas, strengthening partnerships, or embracing change with optimism.

May this time of year spark creativity, foster collaboration, and bring a renewed sense of purpose to all that you do.

Curious Saturday: Why China’s own brands are on the rise

Consumer expert Roger Hu highlights a generational shift in China, with young entrepreneurs taking charge of family businesses. This change is positioning local companies to become innovative, globally competitive giants.

Source: https://www.ted.com/talks/roger_hu_the_rise_of_china_s_homegrown_brands_and_why_they_matter

50 years of Microsoft: Nadella’s flexible leadership pays off

When Bill Gates and Paul Allen founded Micro-Soft 50 years ago, it was to sell a version of the Basic language for the Altair, the first proto-PC. This initial product set the stage for Microsoft’s evolution. Its fortunes have fluctuated with tech industry shifts, yet its core focus remains on providing developers with tools and platforms for application development.

Source: https://www.ft.com/content/66a94f19-2996-47c2-8738-7d010ae8633e

The happiness secrets of leading nations

Despite long winters and high taxes, Finland is remarkably cheerful. On March 20th, it topped the World Happiness Report for the eighth consecutive year among 146 countries. Denmark, Iceland, and Sweden followed closely behind. What contributes to the happiness of these Nordic nations?

Source: https://www.economist.com/graphic-detail/2025/03/20/lessons-from-the-happiest-countries-in-the-world

The evolving use of AI: How organizations are capturing benefits

Organizations are increasingly developing structures and processes to unlock significant value from AI. In these early stages, companies are not only redesigning #workflows but also enhancing governance frameworks and mitigating risks associated with data privacy and ethics. This strategic shift is essential for fostering innovation in a competitive landscape.

Source: https://www.mckinsey.com/capabilities/quantumblack/our-insights/the-state-of-ai

US consumers and tariffs: Finding clarity in the confusion

Many business leaders wonder if tariffs will affect US consumer spending. Bain’s perspective is not directly, but possibly indirectly. Tariffs function as a tax; who bears the cost depends on leverage. Unlike during the Covid-19 pandemic, where supply shortages allowed costs to flow through easily, today some additional expenses may remain with manufacturers rather than reaching consumers.

Source: https://www.bain.com/insights/tariffs-and-the-us-consumer-where-to-focus-amid-the-noise/

Address cloud over-spending with cost optimization

Although the cloud offers increased speed and efficiency, many organizations struggle to adapt. Decentralized consumption means IT departments lack control over costs, leading to common issues like shadow IT where users access alternative platforms easily. Complex billing structures further contribute to wasteful spending, especially when multiple cloud services are involved.

Source: https://kpmg.com/xx/en/our-insights/transformation/cloud-cost-optimization.html

Feel good Sunday: How “Bluey” inspires adult playfulness

The Australian children’s show “Bluey” has captivated audiences worldwide, transcending its target demographic. Sarina Petersen, a social psychology expert, explores how the series appeals to both kids and adults through its humor, authenticity, and nostalgic charm.

Source: https://www.ted.com/talks/sarina_petersen_how_bluey_teaches_adults_to_be_playful_again

Curious Saturday: Is parenting advice increasing anxiety in kids?

Experts often bombard parents with dire warnings, turning dedication into anxiety. Psychiatrist Mathilde H. Ross suggests trusting your instincts instead of chasing trends. Her reassuring message? “You are quite literally evolved for this.”

Source: https://www.ted.com/talks/mathilde_h_ross_is_parenting_advice_leading_to_more_anxious_kids

Is red meat unhealthy?

Red meat offers benefits like being a rich source of B vitamins, protein, and easily absorbed iron. However, it also contains high levels of cholesterol and saturated fats, which are linked to heart disease. Additionally, preservatives in processed meats and chemicals produced during high-heat cooking have been associated with an increased cancer risk.

Source: https://www.economist.com/science-and-technology/2025/03/28/is-red-meat-unhealthy

The real economy – April 2025

Ongoing trade and tariff uncertainties are impacting middle market businesses domestically and globally. In response, companies have been stockpiling goods, pushing the trade-in-goods deficit to record highs. This inventory buildup raises the risk of a correction if demand falters, notes RSM US Chief Economist Joe Brusuelas in April’s edition of The Real Economy.

Source: https://rsmus.com/middle-market/the-real-economy.html

How can companies build resilience against unexpected tariff shifts through strategic foresight

The fluctuating trade wars strain margins and consume millions of hours weekly for US corporations. Here are five strategies to reduce the impact on your workforce and boost productivity.

Source: https://www.kearney.com/service/leadership-change-organization/article/how-can-organizations-react-smarter-not-harder-to-rapid-tariff-changes

Breaking the G&A cost cycle Bain insights:

1. To break the G&A cost cycle, companies must move past short-term cuts and traditional methods like outsourcing
2. Leading firms are using automation and AI to redesign work for better efficiency, accuracy, speed, and customer satisfaction
3. A clean-sheet approach that invests in upskilling, data integration, and process redesign yields lasting results

Source: https://www.bain.com/insights/breaking-the-g-and-a-cost-cycle/

With the tax deadline nearing, a significant number of Americans remain unfiled

Americans are filing taxes more slowly than last year, with some delays possibly due to disasters. The April 15 deadline is just three weeks away, and millions have yet to submit their returns. As of March 14, the #IRS had received nearly 70.4 million returns, a decrease of 1.7% from last year. They processed 69.6 million returns so far.

Source: https://www.wsj.com/personal-finance/taxes/tax-day-2025-irs-filing-returns-385b2a01?mod=personal-finance_lead_pos3

Feel Good Sunday: Unlocking the secrets to better conversations

Connecting with others involves more than just talking — it’s about asking the right questions, says journalist Charles Duhigg. He shares research-backed tools for meaningful conversations and offers a powerful approach to enhance your communication.

Source: https://www.ted.com/talks/charles_duhigg_the_science_behind_dramatically_better_conversations_mar_2025

Curious Saturday: Discover the ‘hot shot rule’ and its impact on leadership

Confidence arises from action, not before it, according to Kat Cole, who rose from waitress to CEO of a global health company. She introduces the “hot shot rule,” a powerful practice designed to shift your mindset into leadership mode and encourage decisive action when needed.

Source: https://www.ted.com/talks/kat_cole_the_hot_shot_rule_to_help_you_become_a_better_leader

Shifting ground for investors

Since mid-February, America’s S&P 500 index has dropped only 10%. In contrast, Asian and European stock prices have risen sharply, breaking a long trend of U.S. outperformance. What’s capturing investors’ attention is the unsettling feeling of change. While some might overlook short-term price movements in favor of multi-decade returns, the impact of these recent shifts could resonate for a while.

Source: https://www.economist.com/finance-and-economics/2025/03/19/beneath-investors-feet-the-ground-is-shifting

Scaling efficiency: Simplifying processes to increase bank productivity

Bank executives constantly prioritize productivity, efficiency, and cost reduction. Past initiatives have achieved modest savings — 3% to 5% for most banks and up to 10% for leaders — but these benefits can diminish with shifting priorities.

Given current macroeconomic uncertainties, maintaining a strong focus on efficiency is essential for achieving an ROE of over 10% and an ROA above 1.5%. Improved efficiency also creates surplus cash that can be reinvested in AI, technology upgrades, data management, and cybersecurity.

Source: https://www.mckinsey.com/industries/financial-services/our-insights/how-banks-can-boost-productivity-through-simplification-at-scale

Navigating AI: Strategic actions for corporate boards

AI represents a groundbreaking technological disruption, and attending board members recognize this. We are experiencing a fundamental transformation in business intelligence, beyond mere incremental advancements. Advanced AI models now reason, solve problems, and drive innovation faster than ever before, redefining competitive landscapes.

Source: https://www.bain.com/insights/what-boards-need-to-do-about-ai/

Managing AI risks in financial compliance

FIs recognize the promise of AI tools in improving compliance, but it’s still early for widespread adoption. In a recent webinar, Oliver Wyman’s David Choi and David Carretero discussed effective strategies for integrating AI into compliance and future opportunities.

Source: https://www.oliverwyman.com/our-expertise/insights/2025/mar/ai-in-compliance-strategies-insights.html

Consumer debt could undermine the economy’s current stability

Recession fears raise concerns about rising consumer debt. American consumers have previously bolstered the economy through credit use. Now, renewed recession worries suggest they may be reaching their limits.

Source: https://www.wsj.com/economy/consumers/consumer-credit-debt-economy-impact-634eda8d

Feel good Sunday: Cities reimagined through light and code

Leo Villareal, an artist who works with light, color, and code instead of traditional materials, creates monumental public art.

In an inspiring talk, he discusses his projects illuminating iconic bridges — such as 25,000 LED lights on San Francisco’s Bay Bridge and uniting nine bridges along London’s River Thames — highlighting the transformative power of public art in urban spaces.

Source: https://www.ted.com/talks/leo_villareal_how_light_and_code_can_transform_a_city/transcript

Curious Saturday: The pitfalls of focusing on averages

Are you using the right data for important decisions? Sharon Zicherman, a data deconstructor, highlights how averages can be misleading in crucial moments. By re-evaluating our interpretation of data, he offers a smarter way to assess risk and make informed choices.

Source: https://www.ted.com/talks/sharon_zicherman_what_you_miss_when_you_focus_on_the_average

AI won’t solve the core issue in customer service

Customer service is often so poor that many believe AI can improve it — offering quicker responses and personalized feedback. However, its effectiveness remains uncertain. AI’s rise in this field stems from a dehumanized process that technology has contributed to, merely addressing an issue it helped create. The focus should be on improving human connection, not replacing it.

Source: https://www.ft.com/content/a3753f62-1efc-4ca3-9934-47ab9994fa87

Effective mobile strategies for customer engagement and retention

By harnessing advanced technologies like AI and analytics, alongside user-centric design principles, businesses can craft immersive mobile experiences. These strategies not only boost customer engagement but also foster long-term loyalty, ultimately driving sustainable growth in an increasingly competitive landscape.

Source: https://www.deloittedigital.com/us/en/insights/perspective/mobile-app-best-practices.html

The future of the financial services workforce

Technology and competition for talent are reshaping the financial services sector, making entry-level roles harder to fill and integrating tech into higher-level positions.

Organizations face challenges in building a robust digital workforce, focusing on:

• Resource shortages
• Talent attraction and retention
• Digital talent experience

Source: https://rsmus.com/insights/industries/financial-services/the-financial-services-workforce-of-the-future.html

Can US banks protect their card-issuing business?

Key takeaways:

1. US banks rely on credit and debit cards for income, but global alternative payment methods are rising.
2. Younger consumers in the US increasingly prefer digital wallets, buy-now-pay-later services, and peer-to-peer payments.
3. These trends challenge banks’ future card revenues and customer loyalty.
4. To remain competitive, US banks need to improve CX, modernize technology, integrate various payment options, eliminate silos in payments, and use data with generative AI for personalized offerings.

Source: https://www.bain.com/insights/can-us-banks-protect-their-card-issuing-business/

DeepSeek represents a major leap in AI

Key takeaways:

1. It improves performance while reducing costs, showing that AI can be faster, cheaper, and more valuable.
2. Its opensource framework supports AI commoditization and showcases engineering excellence for others to leverage.
3. Innovations in microarchitecture and memory segmentation from DeepSeek are set to transform future AI hardware design for improved efficiency.

Source: https://www.kearney.com/service/digital-analytics/article/ai-at-the-crossroads-key-takeaways-from-our-panel-discussion

Feel good Sunday: Making anxiety your ally

When anxiety arises, the instinct is often to push it away. Clinical psychologist David Rosmarin encourages us to view anxiety differently, highlighting its potential benefits and offering four practical steps to turn it from foe into friend.

Source: https://www.ted.com/talks/david_h_rosmarin_how_to_make_anxiety_your_friend

Curious Saturday: 5 tips to improve critical thinking

Daily, we face countless decisions, and perfection isn’t always possible. However, improving our decision-making is achievable through critical thinking. Samantha Agoos outlines a 5-step process that can assist with various challenges.

Source: https://www.ted.com/talks/samantha_agoos_5_tips_to_improve_your_critical_thinking

A new era for silver: challenging gold’s dominance

It’s an exciting time for gold enthusiasts. Silver‘s price typically aligns with gold’s, given its rarity and historical use in jewelry and coins. This established role as a store of value enhances its appeal during uncertain times. Like gold, silver’s limited supply makes it a solid hedge against inflation. Recently, both metals surged as investors reacted to geopolitical unrest and rising prices, defying the usual trend where their values drop with increasing real interest rates since they yield no income.

Source: https://www.economist.com/finance-and-economics/2025/03/05/why-silver-is-the-new-gold

Strengthening risk controls for bank-fintech alliances

As fintechs expand and collaborate with traditional banks, effective third-party risk management is increasingly important for both parties. Challenges arise when ensuring that bank partners adhere to the same standards — including regulatory compliance. Non-compliance can lead to diminished capital access, increased operational costs, reputational damage, and potential penalties.

Source: https://rsmus.com/insights/industries/financial-services/enhancing-third-party-risk-management-for-bank-fintech-partnersh.html

The role of GenAI in business transformation

As organizations embark on integrating GenAI, leaders must acknowledge the complex challenges and opportunities in their transformations.

By assessing readiness, choosing strategic use cases, and establishing a robust foundation of people, processes, and compliance, CTOs can effectively guide their organizations through the evolving GenAI landscape.

Sustainable change demands more than technology; in this crucial moment, CTOs’ foresight and leadership are essential.

Source: https://www.kearney.com/service/transactions-transformations/article/genai-s-impact-on-corporate-transformations

When will generative AI become mainstream?

The journey to widespread GenAI adoption is slower than anticipated. However, the pace of AI innovation is picking up quickly. It’s crucial for businesses to embrace this shift and leverage new technologies to maintain their competitive edge.

Source: https://www.mckinsey.com/capabilities/mckinsey-digital/our-insights/when-will-we-see-mass-adoption-of-gen-ai

Gen Zs and Millennials find reasons for optimism amid challenges

Deloitte’s 2024 Gen Z and Millennial Survey, featuring over 22,800 respondents across 44 countries, highlights a rising optimism among these generations despite their future concerns. The survey identifies five key areas where they are navigating the balance between uncertainty and hope as they plan ahead.

Source: https://www2.deloitte.com/us/en/insights/focus/top-10-business-insights.html#article-gen-zs-and-millennials

Feel good Sunday: The difference between winning and succeeding

Coach John Wooden redefines success with simplicity, inspiring us to pursue our best selves. In this talk, he shares advice for his UCLA players, quotes poetry, and recalls his father’s wisdom.

Source: https://www.ted.com/talks/john_wooden_the_difference_between_winning_and_succeeding

Curious Saturday: The mystery of motivation

Career analyst Dan Pink explores motivation, revealing a key insight: traditional rewards aren’t as effective as many managers believe. Tune in for insightful stories and potential solutions.

Source: https://www.ted.com/talks/dan_pink_the_puzzle_of_motivation

How cheap can investing be?

For retail investors, exchange-traded funds (ETFs) mark a significant shift in finance. Since their introduction in the 1990s, ETFs have eliminated the need for costly fund managers and saved trillions with low fees.

The first American ETF, SPY, had an annual fee of just 0.09%. VOO launched in 2010 with even lower fees at 0.03%. However, new American ETFs now feature fees only 0.2% points below pricier mutual funds — down from a gap of 0.7% points in 2014, according to Morningstar. However, fees on new ETFs are increasing; many established recently charge at least 0.5%.

Source: https://www.economist.com/finance-and-economics/2025/02/26/how-cheap-can-investing-get

Adapt or disappear: The fate of North American banks

While banks often tout bright futures, investor reactions reveal stark valuation disparities.

Top performers boast market capitalizations well above book value and future earnings, granting them flexibility for growth — akin to early tech firms.

Conversely, underperformers face mounting pressure for drastic changes, including breakups, unless management adopts automation and streamlines costs.

Source: https://www.bain.com/insights/value-or-vanish-the-diverging-paths-of-north-american-banks-snap-chart/

Is the CISO finally recognized as a key strategic player?

Cybersecurity is now seen as a vital board-level concern, prompting many organizations to involve chief information security officers (CISOs) in strategic decision-making. This shift has been suggested since the mid-2010s.

Despite ongoing discussions, experts still advocate for CISOs to transition from a defensive role to one focused on growth and technology-influenced business decisions.

After years of advocacy, 2024 might be the year when more businesses embrace this change.

Source: https://www2.deloitte.com/us/en/insights/topics/strategy/ciso-and-cybersecurity-strategy.html

Credit cards: The go-to choice for 77% of boomers

Older consumers favor traditional credit, with 77% of boomers and seniors actively using credit cards. In contrast, interest in newer options like BNPL is minimal. Only 4.5% of boomers and seniors have active BNPL accounts, compared to 18% of millennials and 16% of bridge millennials.

Source: https://www.pymnts.com/credit-cards/2025/77-of-baby-boomers-and-seniors-use-credit-cards-more/

Strategic decisions only a CEO can make

CEOs need a clear understanding of how they can uniquely contribute to the long-term success of their organizations — what to focus on, what to simplify, and where to lead from the front.

The chief executive must help create purpose and clarity, focus and force, capacity, and organizational drive while reducing unnecessary complexity and unhealthy friction.

With limited time and deeply complex challenges to address, CEOs must zero in on those areas where their distinct role and expertise will add disproportionate impact.

Source: https://www.bcg.com/publications/2025/six-moves-ceos-can-make-to-drive-change

Feel good Sunday: Celebrating the special bond with our dogs

What creates the special bond between people and dogs? Elias Weiss Friedman, founder of The Dogist, has captured this connection through his dog portraits that showcase each pup’s personality. In this photographic journey, he shares insights from his travels documenting our four-legged companions — reminding us how dogs enrich our lives.

Source: https://www.ted.com/talks/elias_weiss_friedman_the_unique_love_between_humans_and_dogs

🌟 Celebrating women at Loquat and beyond! 🌟

This International Women’s Day, we at Loquat honor and celebrate the incredible women who drive innovation, leadership, and impact — not only within our company but also among our valued partners and clients.

Every day, we are inspired by the resilience, creativity, and leadership of the women shaping the future of financial services. We are proud to stand alongside them as they break barriers and advance equity across industries—including credit unions, community and regional banks, and technology.

Join us in recognizing and celebrating the achievements of women everywhere!

How should we confront danger?

Risky situations are a part of life, and our reactions can shape the results. By calmly assessing risks and considering outcomes, we enable informed choices. Building resilience and seeking support strengthens our ability to tackle challenges effectively.

Source: https://www.ft.com/content/b5fcda82-ead9-46ac-8d0c-2b4d3f8d5fa0

Are US banks ready for consolidation?

The US banking sector remains fragmented, with over 4,000 federally insured institutions. Rising regulatory and technology costs create strong incentives for consolidation.

Yet, non-crisis mergers and acquisitions have fallen below 50% of the historical average since the global financial crisis (GFC). M&A activity among large banks has dropped to just 10% of pre-GFC levels due to regulators’ anti-consolidation stance. Despite this, many in the industry believe this position will eventually change.

Source: https://www.oliverwyman.com/our-expertise/insights/2025/jan/key-trends-driving-us-bank-consolidation-and-growth.html

How top performers leverage innovation for growth

Innovation and growth go hand in hand. Companies that create new offerings and business models can better seize growth opportunities and protect against disruption.

A recent McKinsey survey of 1,039 companies globally highlighted this link. The majority of respondents cited innovation as the key strategic factor for driving growth in the next year.

Source: https://www.mckinsey.com/capabilities/strategy-and-corporate-finance/our-insights/how-top-performers-use-innovation-to-grow-within-and-beyond-the-core

Investors are concerned that inflation may be resurfacing, and they could be correct

After peaking at 11% in 2022, inflation in the developed world has been on a decline — until recently. With central banks lowering interest rates, headline inflation has risen from 2.1% in September to 2.5% in December.

Market sentiments are mixed about the potential return of high inflation. Expectations indicate that the Fed might pursue looser monetary policy soon, influencing other central banks as well. While falling government-bond yields suggest some relief regarding inflation fears, a model from the Fed’s Cleveland branch shows market expectations for next year’s inflation have increased from approximately 2.2% to 2.7%.

Source: https://www.economist.com/finance-and-economics/2025/02/20/investors-fear-inflation-is-coming-back-they-may-be-right

How can banks effectively adapt to the changing landscape of software engineering?

As banks transition into an AI driven future, they must adopt new strategies for software engineering, focusing on talent and third-party partnerships.

A Citigroup report predicts that AI could boost global banking profits by $2 trillion by 2028 — a 9% increase over five years. Many banks are working to incorporate machine learning, neural networks, natural language processing, and generative AI tools to enhance efficiency and create new value.

An AI-enabled bank can transform CX and improve employee productivity. However, challenges like tech debt, strict regulations, and complex technology infrastructures may hinder this progress.

Source: https://www2.deloitte.com/us/en/insights/industry/financial-services/future-of-software-engineering-in-banks.html

Feel good Sunday: Embrace your inner star

Actor and writer Natasha Rothwell joins “On the Spot,” TED’s quick Q&A. She shares insights on creativity, representation, love, her career’s first “pinch me” moment, and a recent mind-blowing discovery.

Source: https://www.ted.com/talks/natasha_rothwell_embrace_your_main_character_energy_with_natasha_rothwell_on_the_spot

Curious Saturday: The power of self-talk

Your inner voice can aid self reflection and planning, but it may also entrap you in negative thought patterns — what psychologist Ethan Kross refers to as “chatter.”

He offers strategies for calming unhelpful thoughts while utilizing this internal dialogue to combat doubt, improve focus, and boost your wellbeing.

Source: https://www.ted.com/talks/ethan_kross_do_you_talk_to_yourself_here_s_how_to_harness_your_inner_voice

The enduring appeal of “Saturday Night Live”

On February 16th, “Saturday Night Live” (SNL) marked its 50th anniversary on air with 979 episodes. The show holds unparalleled Emmy records: 331 nominations and 90 wins, far surpassing second-place “Game of Thrones,” which has 59 wins.

“SNL” has launched the careers of many renowned comedians who excel in writing, directing, and acting across various media. Millions tune in live each week, while even more watch online; over 540 million users have liked its TikTok videos.

Its enduring success reflects a masterful blend of conservatism and innovation.

Source: https://www.economist.com/culture/2025/02/13/the-secret-to-the-success-of-saturday-night-live

Better banking through omnichannel CX

To create an effective omnichannel experience, banks must grasp the customer journey and invest in secure, interconnected technology.

By prioritizing customer needs and personalizing interactions, your bank can offer a seamless and engaging experience that meets modern expectations.

A successful omnichannel strategy increases customer satisfaction, fosters loyalty, and drives long-term growth in the competitive banking sector.

Source: https://rsmus.com/insights/services/digital-transformation/customer-experience-for-banks.html

It’s time for North American banks to get serious about efficiency

North American banks have historically accepted a high cost-to-income ratio, standing at 60% as of June 2024, compared to their global peers. While structural factors like wage rates and the fragmented US market play a role, inefficiencies also arise from branch-heavy operations and reliance on outdated practices like paper check payments.

Some banks are now shifting focus towards improving core business operations instead of relying solely on digital ventures. Strategies include streamlining branch locations, automating back-office functions, and equipping relationship managers with digital tools for improved productivity in lucrative areas.

If North American banks could reduce their ratio from 60% to the 42% seen in Nordic counterparts, it could lead to an estimated $200 billion in cost savings.

Source: https://www.bain.com/insights/will-north-american-banks-get-serious-about-efficiency-snap-chart/

Will banks continue to exist in the future?

Historically, banks were the main source of financing for consumers and businesses, providing loans for homes, cars, and economic ventures. However, their dominance has declined. In 1975, banks represented about 60% of total lending in the U.S.; today that figure is around 35%. Numerous alternative credit providers now compete in this space. Despite this shift, banks fulfill a crucial role: they serve as safe havens for financial assets during crises. They offer stability when credit markets falter, such as at the onset of the COVID-19 pandemic. While their market share may be decreasing, banks’ essential function as a reliable refuge persists — but it comes at a cost.

Source: https://www.oliverwyman.com/our-expertise/insights/2025/jan/why-banks-are-still-important-in-modern-society.html

The golden mirage: 4,000 years of misunderstanding gold

Gold’s allure for wealthy pessimists and anxious central bankers stems from its detachment from the wider economy. When crises hit and bank accounts falter, gold is seen as a lasting refuge.

However, this perception carries risks. What seems like security may actually be a trap. In myth and literature, those who hoard gold often face severe consequences that serve as cautionary tales.

Source: https://www.ft.com/content/16d13b98-b1e7-4454-87c9-6f9060723f58

Feel good Sunday: Success, failure, and the drive to create

Elizabeth Gilbert was once a rejected waitress but later soared with ‘Eat, Pray, Love.’

She reflects on how success can be as confusing as failure and shares a challenging yet straightforward way to keep moving forward.

Source: https://www.ted.com/talks/elizabeth_gilbert_success_failure_and_the_drive_to_keep_creating

Curious Saturday: Do schools kill creativity?

Sir Ken Robinson passionately argues for an education system that nurtures creativity instead of stifling it.

Source: https://www.ted.com/talks/sir_ken_robinson_do_schools_kill_creativity

Why matcha, derived from green tea, is trending right now

Matcha’s rising popularity outside Asia can be attributed to its reputation as a healthier coffee alternative.

Studies indicate that the antioxidants in green tea may help reduce cardiovascular disease risk, enhance gut health, and boost metabolism. It also provides a more stable energy increase compared to coffee’s rapid highs and lows.

While a cup of coffee typically contains 100-200mg of caffeine, matcha has about 70mg along with L-theanine, an amino acid that promotes concentration and alertness.

Source: https://www.economist.com/culture/2025/01/14/why-matcha-made-from-green-tea-is-the-drink-of-the-moment

Driving meaningful change for transformation success

Successful, large-scale transformations hinge on a strong case for change, regulated pacing, visible and empathetic leadership, and a blend of central coordination with democratic execution.

Before initiating transformation, assess the organization’s capabilities to identify areas needing improvement in leadership or the transformation office. This understanding is crucial for crafting an effective narrative that supports the case for change.

Only then can the organization implement and sustain the necessary changes for success.

Source: https://www.kearney.com/service/transactions-transformations/article/driving-true-change-to-ensure-transformation-success

GenAI: More than just a compliance challenge — it’s an enabler

GenAI is being widely adopted across companies as individual units leverage it to bolster productivity. This decentralized approach creates challenges for risk and compliance (R&C) teams, as ad hoc implementations may fail to meet essential regulations.

Source: https://www.bcg.com/publications/2025/genai-isnt-just-a-headache-for-risk-and-compliance

Bain – 2025 M&A outlook

Key Takeaways:

1. Bain anticipates that interest rates and regulatory hurdles will lessen in 2025, facilitating more deals
2. Ongoing tech disruption, post-globalization dynamics, and evolving profit pools are prompting companies to explore various M&A strategies
3. Successful firms will adopt a bolder approach to value creation to navigate new deal economics
4. Mastery of AI in M&A processes may prove as crucial as deal frequency for predicting success

Source: https://www.bain.com/insights/looking-ahead-m-and-a-report-2025/

With interest rates on the rise, why are speculators still so active?

The ongoing mystery is why speculation remains rampant in the bull market, even with easy money seemingly over. While exuberance made sense during last decade’s near-zero rates, the Federal Reserve raised interest rates from almost zero to nearly 5% in 2022. Yet, after a brief slowdown, speculative activity has surged again across various US asset classes, particularly driven by AI and memecoins.

Source: https://www.ft.com/content/ec452f8e-f2ad-4c98-a150-9eff84b0c692#comments-anchor

Feel good Sunday: The science of happiness

Dan Gilbert, author of “Stumbling on Happiness,” argues against the belief that we’ll be unhappy without getting what we want. Our “psychological immune system” enables us to find genuine happiness even when things go awry.

Source: https://www.ted.com/talks/dan_gilbert_the_surprising_science_of_happiness

Curious Saturday: 6 steps to forge stronger digital relationships

Networking expert Margaux Miller shares tips for cultivating meaningful relationships online. Focus on quality over quantity, prioritizing genuine and personalized interactions. Discover practical suggestions to enhance your approach, fostering both personal and professional growth.

https://www.ted.com/talks/margaux_miller_6_ways_to_make_better_connections_online

The allure of company towns

Leading a large firm in a small community often influences decision making. When corporate choices impact local neighbors, friends, and family, leaders are more incentivized to make thoughtful decisions.

Research on hometown CEOs supports this idea; they tend to have stronger ties to their company’s location and greater concern for their local reputation.

Studies indicate that these leaders are less inclined to cut R&D budgets under short-term pressures or take risks like increasing leverage. Whether this reflects long-term thinking or caution depends on one’s perspective.

Source: https://www.economist.com/business/2025/01/30/the-allure-of-the-company-town

Loquat and Plaid partner to bring open banking to credit union and community bank customers

Through this strategic partnership, Loquat seamlessly integrates Plaid’s advanced connectivity infrastructure into its digital banking platform. This integration empowers financial institutions to offer customers secure account linking, access to real-time, permissioned financial data, and streamlined financial management. It also facilitates efficient fund transfers for new account openings, reducing attrition caused by funding delays or failures.

Partnership brings seamless financial connectivity integration to Loquat’s business cloud banking platform.

More information: https://loquatinc.io/news/loquat-and-plaid-partner-to-bring-open-banking-to-credit-union-and-community-bank-customers/

Investment criteria for North American banks

There is significant variation among banks in attracting investor interest for profitable growth. Investors have increasingly pressured North American banks to improve their valuations. Despite efforts to improve returns, valuation discrepancies remain substantial. Achieving a strong return on equity (ROE) is ineffective if it fails to gain investor trust. Bank leaders aiming for higher valuations must focus on fostering confidence in future growth potential.

Source: https://www.bain.com/insights/what-investors-want-from-north-american-banks-snap-chart/

Understanding the difference: DevOps vs. DevSecOps

DevSecOps builds on DevOps by incorporating security testing and compliance checks while maintaining agility, especially in regulated industries.

It emphasizes integrating security throughout the software development cycle, addressing risk concerns that come with adopting DevOps practices.

By involving security teams in collaborative efforts and implementing continuous monitoring, DevSecOps shifts focus on security both early (during development) and later (post-deployment).

This proactive approach reduces backtracking during testing phases, leading to faster development cycles, happier developers, safer software, and more satisfied users.

Source: https://www.gartner.com/en/articles/devsecops

Fed signals smaller rate cuts in 2025 amid high inflation and trade risks

On December 18, 2024, the FOMC reduced the federal funds rate by 25 basis points to a range of 4.25% to 4.5%, marking its third consecutive cut.

However, more focus was on the committee’s updated monetary policy outlook for the next three years: FOMC members now predict only 50 bps in rate cuts for 2025 — half of September’s estimate — indicating that higher interest rates may persist longer than previously expected.

Source: https://www2.deloitte.com/us/en/insights/economy/spotlight/fed-rate-cuts-and-us-labor-market-trends.html

Feel good Sunday: Can AI be funny?

Can AI be funny, or is humor strictly human? In this engaging talk, cartoonist Bob Mankoff delves into the nature of comedy, the rise of AI, and their intersection.

Source: https://www.ted.com/talks/bob_mankoff_can_ai_master_the_art_of_humor

Curious Saturday: Does the rhythm of your heart shape your experience of time?

Have you noticed that time seems to drag when you’re bored but zip by during fun moments? Cognitive neuroscientist Irena Arslanova investigates how your brain and heartbeat shape this perception, showing that your heartbeat not only keeps you alive but also impacts whether experiences feel brief or prolonged.

Source: https://www.ted.com/talks/irena_arslanova_does_your_heartbeat_shape_your_sense_of_time

LinkedIn embraces comedy

Light-hearted content is gaining traction on a platform typically known for its unintentional humor. As the lines between personal and professional life have blurred post-pandemic, LinkedIn posts have evolved. Viral content includes candid reflections on struggles and humorous takes on corporate culture, remote work, and IT sales.

Source: https://www.ft.com/content/fa269927-a19c-42af-859d-b2b6b678e5fd

Five questions for CEOs about their AI strategy

Key questions:

1. Am I acting swiftly enough?
2. How will AI reshape my industry?
3. How can AI enhance our competitive edge?
4. What sets this apart, and how do I support the tech foundation?
5. How should I guide the #organization on this path?

Source: https://www.bain.com/insights/winning-with-ai-five-questions-for-every-ceo/

We’re excited to welcome Michael Borrelle to the Loquat team as our new Business Development Manager!

Michael brings extensive experience in financial services, payments, and fintech, with a proven ability to drive growth and innovation. His leadership will be instrumental in strengthening our sales team, expanding our market presence, and delivering greater value to our financial institution clients.

Join us in welcoming Michael to Loquat! Connect with him to learn how we can help elevate your digital capabilities and drive growth.

8 reasons why digital transformations fail

Digital transformations often stumble due to ineffective communication, inadequate data strategies, and neglecting the human aspect of change. These pitfalls can lead to misalignment among teams, poor decision-making, and ultimately stall progress. Organizations must prioritize clear messaging and invest in #training their employees to navigate these transitions successfully.

Source: https://www.cio.com/article/228268/12-reasons-why-digital-transformations-fail.html

Key takeaways from Davos 2025

Leaders at the World Economic Forum (WEF) may misinterpret a “global mood” and spend the year trying to validate it. However, delegates largely felt “nervously optimistic.”

US investors appeared energized yet acknowledged uncertainties. In contrast, Europeans expressed concerns over economic issues and regulatory burdens.

Gulf States actively promoted both traditional energy and AI. The Chinese delegation was notably small, while developing nations sought to align with US optimism but emphasized their balanced approach towards East and West.

Source: https://www.oliverwyman.com/our-expertise/insights/2025/jan/ceo-takeaway-insights-davos-2025.html

Feel good Sunday: Marketing for a purpose

Can marketing go beyond business goals and drive positive change? Mastercard CMO Raja Rajamannar discusses how initiatives like “touch cards” for the visually impaired and customizable debit cards align profit with purpose, enabling businesses to foster meaningful impact.

Source: https://www.ted.com/talks/raja_rajamannar_the_art_of_marketing_for_good

Curious Saturday: Turning setbacks into success

Success is rarely linear, and setbacks are inevitable. So how can we bounce back Leadership coach Amy Shoenthal outlines the four phases of the “setback cycle” to help us convert challenges into opportunities for growth and reinvention.

Source: https://www.ted.com/talks/amy_shoenthal_how_to_turn_setbacks_into_success

Can you exhale your worries?

How does breathing influence mood? One theory suggests it redirects focus from negative thoughts. Research indicates that consciously slowing down breath can enhance heart-rate variability, which tends to be low in individuals with psychiatric conditions like depression and ADHD. Increasing this variability is believed to have positive effects.

Evidence also points to a shared brain circuitry for slow breathing and stress regulation in rodents. A study published in Nature Neuroscience (November 2024) found that activating pathways for slow breathing in mice reduced their anxiety behaviors.

Source: https://www.economist.com/science-and-technology/2025/01/17/can-you-breathe-stress-away

Credit scores can be harmful to your financial well-being

Primarily driven by FICO ratings, these scores prioritize lenders over consumers. You’ll gain points for having multiple credit cards and diversifying with loans like car or mortgages. However, exceeding 30% of your card limit can hurt your score. For young individuals with low limits, this system encourages taking on more debt. Timely bill payments or paying off balances won’t significantly boost your score; you could maintain a high rating just by making minimum payments—resulting in prolonged debt and accruing interest.

Source: https://www.ft.com/content/f6f71a95-9e43-41c3-9a53-f577d31832a4

Banking CX: The omnichannel advantage

To create a standout omnichannel experience, banks must understand the customer journey and invest in secure, integrated technology.

By prioritizing customer needs and personalizing interactions, banks can offer a seamless and engaging experience that aligns with modern expectations.

A well-executed omnichannel strategy enhances customer satisfaction, fosters loyalty, and drives sustainable growth in the competitive banking sector.

Source: https://rsmus.com/insights/services/digital-transformation/customer-experience-for-banks.html

A spotlight on small businesses in the US

According to McKinsey Global Institute, micro-, small-, and medium-size enterprises (MSMEs) in the US account for 39% of value added and 58% of employment, compared to 54% and 66% in advanced economies. They are crucial in professional services and construction but face challenges with productivity.

US MSMEs operate at only 47% of the productivity level of large companies, versus 60% in advanced economies. Closing this productivity gap could boost US GDP by 5.4%, compared to a potential increase of 4.7% across various advanced countries.

Source: https://www.mckinsey.com/mgi/our-research/a-microscope-on-small-businesses-the-productivity-opportunity-by-country#/

CFO confidence rises heading into 2025

Deloitte’s Q4 2024 North American CFO Signals survey shows a significant increase in confidence among finance leaders as they approach 2025.

Notably, 72% of CFOs now predict an improved North American economy within a year, up from just 19% in Q3. Additionally, more CFOs expect better conditions in key regional economies over the next year compared to the last.

Finance chiefs anticipate growth in their own organizations’ revenues and earnings. The fourth quarter CFO confidence score reached 5.8 — the highest level in ten quarters.

Feel good Sunday: The magic of Fibonacci numbers

Math is logical, functional, and amazing. Mathemagician Arthur Benjamin reveals the hidden wonders of the Fibonacci series, reminding us that math can be truly inspiring!

Source: https://www.ted.com/talks/arthur_benjamin_the_magic_of_fibonacci_numbers

Curious Saturday: The gift of emotional courage

Psychologist Susan David reveals how our emotional responses shape key aspects of life — actions, careers, relationships, health, and happiness.

In this engaging talk, she critiques a culture that prioritizes positivity over genuine emotions and shares effective strategies for emotional agility.

Source: https://www.ted.com/talks/susan_david_the_gift_and_power_of_emotional_courage

What constitutes a state of centeredness?

Centeredness is the practiced skill of fostering mindfulness, which involves nonjudgmental awareness of thoughts, feelings, and environment. Achieving centeredness at work enables you to respond to daily stresses in a thoughtful and strategic way.

Source: https://www.bain.com/insights/the-science-of-centeredness/

Dangers of bank deregulation highlighted by FDIC chair

The outgoing chair of the Federal Deposit Insurance Corporation cautioned that aggressive deregulation could lead to significant risks for the US financial system. Martin Gruenberg stated to the Financial Times that prioritizing short-term gains in finance may come with serious long-term costs.

Source: https://www.ft.com/content/24e6a22f-ca5d-452c-a1e5-e42ab0a978fe

Why global bond markets are in turmoil

Government-bond yields are surging worldwide. Ten-year U.S. Treasury bonds approach 5%, while German bunds have risen to 2.6% from nearly 2% in December. Japanese yields are also increasing, and in Britain, gilt yields hit almost 5%, the highest since 2008.

Rising yields mean higher debt servicing costs for governments and increased financial strain on various borrowers, including mortgage-holders linked to these borrowing expenses.

Source: https://www.economist.com/finance-and-economics/2025/01/12/why-global-bond-markets-are-convulsing

Neobanks tackle SMB market opportunities and regulatory challenges

Neobanks are gaining traction by offering fully online financial services — featuring digital onboarding, faster account openings, and competitive deposit rates — competing directly with traditional omnichannel financial institutions.

These same advantages attract smaller businesses, filling gaps left by conventional FIs. However, obstacles and risks persist.

The SMB market holds immense potential. In the U.S., over 33M small businesses operate, employing around 46% of the workforce, according to the U.S. Chamber of Commerce. The U.K. has about 5.6M smaller firms as per government statistics.

Source: https://www.pymnts.com/smbs/2025/neobanks-navigate-smb-market-potential-and-regulatory-risks/

Achieving growth: Key leadership mindsets and behaviors

For CEOs and top executives, profitable growth is the ultimate objective. This long-term endeavor can yield substantial value, with high-growth companies generating 50% higher total shareholder returns (TSR) than their counterparts. Profitable growers enjoy even greater benefits.

However, achieving sustainable growth is challenging. Research indicates that only one in ten firms has sustained above-GDP growth while remaining on the S&P 500 for three decades.

Growth requires courage, commitment, and discipline.

https://www.mckinsey.com/capabilities/growth-marketing-and-sales/our-insights/getting-fit-for-growth-the-leadership-mindsets-and-behaviors-that-matter

Feel Good Sunday: Surprising habits of original thinkers

How do creative individuals generate innovative ideas? Organizational psychologist Adam Grant explores “originals” — those who create and implement fresh concepts. In this talk, discover three unexpected habits of originals, including the importance of embracing failure. “The greatest originals are those who fail the most because they attempt the most,” says Grant. “You need many bad ideas to uncover a few good ones.

Source: https://www.ted.com/talks/adam_grant_the_surprising_habits_of_original_thinkers

Curious Saturday: The art of misdirection

Regarded as the world’s top pickpocket, Apollo Robbins examines human behavior while stealing your watch. In a humorous demonstration, he illustrates how our perceptual flaws allow him to swipe a wallet and leave it on its owner’s shoulder without them noticing.

Source: https://www.ted.com/talks/apollo_robbins_the_art_of_misdirection

Lessons learned from a unique London bakery

The Dusty Knuckle, an emerging star with 118 employees across three locations, supplies bread to Ottolenghi eateries and Michelin-starred restaurants while attracting hipsters for its £4.50 sausage rolls.

Giving back to society, the bakery aids youth offenders in turning their lives around. Over 70% of trainees secure paid work or further education, prompting the establishment of a Community Interest Company last year to connect more potential employers with these individuals.

Source: https://www.ft.com/content/73682eef-dd4e-4131-91b8-7a8c18b1d599

Bain’s strategic beliefs

In a turbulent world, core strategy principles remain timeless. While contexts evolve, these foundations endure. If you feel overwhelmed, it’s the perfect moment to revisit these principles. Though not exhaustive, these five beliefs guide Bain’s work and drive exceptional results for clients. Sustainable, profitable growth is tough — here’s what it takes.

Source: https://www.bain.com/insights/bain-beliefs-on-strategy-story/

Gartner’s 4-step product strategy framework

This framework includes 4 key components that help technology product leaders communicate effectively with stakeholders and teams, ensuring a straightforward yet comprehensive strategy process.

1. Environment and market factors
2. Company factors
3. Vision for differentiation
4. Strategic themes

Source: https://www.gartner.com/en/product-management/topics/product-strategy-roadmap

Amazon Autos: A growing threat to credit union lending

Amazon Autos isn’t just another rival; it’s a potential disruptor for credit union lending operations. This challenge also offers credit unions a chance to enhance their value proposition and strengthen member relationships through digital transformation. By investing in innovative tools and improving member experiences, credit unions can remain relevant and competitive. The time to act is now — auto lending’s future is here, driven by platforms like Amazon Autos.

Source: https://www.cuinsight.com/amazon-autos-a-growing-threat-to-credit-union-lending/

US business bankruptcies at highest level since 2010

Corporate bankruptcies in the US have surged to their highest rate since the global financial crisis. In 2024, at least 686 companies filed for bankruptcy — an increase of roughly 8% from 2023 and surpassing any year since the 828 filings recorded in 2010, as reported by S&P Global Market Intelligence.

Source: https://www.ft.com/content/ac3c1e2f-c9bc-417e-a686-7170e1bf8533

Feel good Sunday: Making stress your ally

Stress can make your heart race and cause you to sweat. However, recent research indicates that stress might only harm you if you think it does. Psychologist Kelly McGonigal encourages us to view stress positively and highlights a powerful way to reduce it: connecting with others.

Source: https://www.ted.com/talks/kelly_mcgonigal_how_to_make_stress_your_friend

Curious Saturday: How to speak so people want to listen

Do you feel unheard when you speak? Julian Treasure offers valuable insights on impactful speaking. He shares vocal exercises and tips for empathetic communication. This talk aims to make the world sound more beautiful.

Source: https://www.ted.com/talks/julian_treasure_how_to_speak_so_that_people_want_to_listen

Is the US stock market overheated?

It’s a wonderful time for investors in the U.S. stock market. After a stellar 2023, share prices have continued to rise in 2024. The S&P 500 index has surged by 54% over the past two years, achieving one of its best runs since 1957. There have been some jitters; on December 18th, shares dropped by 3% after the Federal Reserve indicated it would cut rates less than expected in 2025. However, prices have bounced back slightly and optimism remains strong. Other global markets are also climbing, but America’s stock market is leading the charge.

Source: https://www.economist.com/finance-and-economics/2024/12/22/just-how-frothy-is-americas-stockmarket

Customer experience demands disruption not small steps

Digital technologies enable companies to create unparalleled customer experiences (CX). CEOs should recognize this as a significant growth opportunity. Exceptional CX benefits both businesses and customers, setting market leaders like Amazon, Apple, and Google apart. BCG research shows that firms with the highest satisfaction scores have generated twice the shareholder value over the past decade compared to average scorers. These companies enjoy better earnings and higher price-to-earnings ratios, leading to greater total shareholder returns.

Source: https://www.bcg.com/publications/2021/customer-experience-as-a-business-imperative

How can you reduce costs while driving growth?

The rise of AI complicates tech investments, necessitating ongoing focus to find the right balance.

Key questions to consider:

1. Do you understand the true cost drivers behind technology spending?
2. What IT cost optimization strategy best unlocks your firm’s full potential?
3. Are cost-cutting measures aimed at building resilience rather than sacrificing essential resources for future growth?

Source: https://www.ey.com/en_us/cio/it-cost-optimization-growth-strategies

Fast and impactful digital bank creation

Digital-native neobanks are transforming banking by prioritizing customer experience through convenience, low fees, and seamless tech integration. They continually improve their services by leveraging technology to gather direct or indirect customer feedback. This data informs product iterations, ensuring alignment with customers’ changing needs.

Source: https://www.kearney.com/industry/financial-services/article/building-a-digital-bank-fast-and-with-impact

Hardware is reshaping the world

The AI revolution requires significant energy and hardware resources, making enterprise infrastructure crucial again. NVIDIA has become one of the most valuable companies globally as specialized chips gain importance for AI workloads.

Deloitte research indicates that the market for generative AI-specific chips is expected to exceed US$50 billion this year.

Source: https://www2.deloitte.com/us/en/insights/focus/tech-trends.html#hardware-is-eating

Feel Good Sunday: Embrace Discomfort

Luvvie Ajayi Jones boldly voices her thoughts and challenges the status quo. “Your silence serves no one,” says the activist and writer. In this inspiring talk, she presents three key questions to guide you when deciding whether to speak up or hold back, urging us all to become more at ease with discomfort.

Source: https://www.ted.com/talks/luvvie_ajayi_jones_get_comfortable_with_being_uncomfortable

Curious Saturday: 3 reasons to take risks like a teenager

Is channeling your inner teen essential for adult success? Neuroscientist Adriana Galván reveals three insights from her research on adolescent brain development. She highlights how teens can guide us in embracing uncertainty, questioning norms, and taking strategic risks — key ingredients for a bold life.

Source: https://www.ted.com/talks/adriana_galvan_3_reasons_to_take_risks_like_a_teenager

5 New Year’s resolutions for CEOs In an AI world

As AI transforms business, here are five key resolutions for executives based on a Bain survey:

1. Strengthen data governance
2. Explore unstructured data opportunities
3. Understand agentic workflow creation
4. Unite tech and business leaders
5. Invest in scalable AI architecture

Source: https://www.forbes.com/sites/selk/2024/12/19/5-new-years-resolutions-for-ceos-in-an-ai-world/

The future of retail banking: Digital transformation and branch evolution

As bank branches decline and digital interactions rise, customers still value face-to-face financial discussions.

Retail banking is transforming rapidly. With technological advancements and a demand for convenience, customers increasingly prefer digital channels to engage with their banks.

However, the need for in-person interactions remains crucial — especially for complex products. This highlights a hybrid future where banks integrate digital innovation with vital in-person services to adapt to evolving customer needs.

Source: https://www.kearney.com/industry/financial-services/article/retail-banking-s-new-reality-the-digital-shift-and-the-future-of-branches

Emerging marketing trends: Tech innovations and CMO roles

Digital technologies and social media have transformed marketing into a more dynamic, personalized, and data-driven field. Organizations are utilizing advanced analytics and AI to understand customer behavior, preferences, and trends deeply. The potential for large-scale personalization has never been greater — enabling precise messaging to the right audience at the optimal time.

Source: https://www.oliverwyman.com/our-expertise/insights/2024/dec/new-marketing-trends-tech-innovation-social-cmos.html

Happy New Year!!!

RSM US Middle Market Business Index | Q4 2024 update

The RSM US Middle Market Business Index (MMBI) rose to 131.8 in Q4 from 130.4, indicating strong business conditions fueled by robust household spending and solid fixed investment.

Key takeaways:

1. MMBI increased to 131.8 in Q4 from 130.4
2. The rise reflects healthy business conditions driven by consumer spending and supply-side support
3. Almost two-thirds of executives expect economic improvement over the next six months

Source: https://rsmus.com/middle-market/mmbi.html

Feel Good Sunday: What makes your favorite songs special?

Songs are the soundtrack of our lives. But what creates that emotional connection Songwriter Scarlet Keys explores the techniques musicians use to craft unforgettable melodies — like tone, repetition, lyrics, and chords — and reveals how music transforms moments into lasting memories.

Source: https://www.ted.com/talks/scarlet_keys_why_do_you_love_your_favorite_songs

Curious Saturday: How to navigate big decisions in difficult situations

When making a big decision, should you trust your gut or follow the data? Emergency manager Jonathan Reimer draws on his experience responding to some of Canada’s largest wildfires to share advice on high-stakes decision-making that you can take to your boardroom, kitchen table or anywhere else.

Source: https://www.ted.com/talks/jonathan_reimer_how_to_make_big_decisions_in_challenging_circumstances

Spanish secrets to European success

Spain‘s economy is set to lead the rich world in 2024, excelling in areas such as GDP growth, inflation control, unemployment rates, fiscal policy, and stock market performance. Its economic growth and job creation rates are currently outpacing those of the United States.

Source: https://www.economist.com/leaders/2024/12/12/what-spain-can-teach-the-rest-of-europe

Driving faster AI adoption by managing risks

Risk and compliance (R&C) leaders must ensure responsible AI use, transforming processes, and improving decision-making.

Key takeaways

1. By supporting a responsible AI framework, R&C can facilitate secure scaling without hindering innovation.
2. AI enhances the efficiency of risk processes and promotes dynamic, risk-based decision-making.
3. R&C should prioritize high-value activities and emphasize collaboration between humans and AI for transformative change.

Source: https://www.bcg.com/publications/2024/managing-risks-to-accelerate-ai-transformation

Merry Christmas!

The evolution of B2B success: From transactions to transformations

Historically, middle and back offices were reactive, focusing on reconciling accounts and ensuring compliance. Now, they’ve evolved to take proactive roles by utilizing real-time data and advanced analytics for trend anticipation and risk identification.

Innovation extends beyond product development or customer acquisition.

These areas are becoming prime platforms for cutting-edge technologies like AI and automation. By automating repetitive tasks, digital solutions enable teams to concentrate on high-value activities that enhance business differentiation.

Source: https://www.pymnts.com/back-office/2024/fis-b2b-success-should-be-measured-in-transformations-not-transactions/

2025 US M&A market outlook

EY-Parthenon (EYP) anticipates a robust increase in M&A deal volume driven by economic indicators.

Key insights:

1. EYP forecasts a 10% rise in M&A activity in 2025, following a projected 13% growth in 2024
2. Private equity is expected to see a significant 16% increase in deals in 2025
3. Corporate M&A is predicted to grow by 8% next year

Source: https://www.ey.com/en_us/insights/mergers-acquisitions/m-and-a-outlook

Feel good Sunday: The secret to confident public speaking

Why do we get nervous when speaking in public? Communication expert Lawrence Bernstein suggests that approaching it like a casual conversation can ease the pressure. He introduces the “coffee shop test” to help you reduce anxiety, engage your audience, and convey a memorable message.

Source: https://www.ted.com/talks/lawrence_bernstein_the_trick_to_powerful_public_speaking

Curious Saturday: Your Childhood Toys and Your Life Story

What was your favorite childhood toy? According to toy historian Chris Byrne, the answer may reveal more about you than you think. From Matchbox cars to Squishmallows, he examines how toys reflect cultural values and shape who we become as adults.

Source: https://www.ted.com/talks/chris_byrne_how_your_childhood_toys_tell_your_life_story

56% of CFOs rely on virtual cards for financial agility

Middle-market firms are leveraging virtual credit cards to optimize working capital. Combining the flexibility of traditional credit cards with improved spend tracking and control, virtual cards are increasingly popular among North American companies earning between $50M and $1B.

Source: https://www.pymnts.com/commercial-payments/2024/56-of-cfos-say-virtual-cards-are-key-for-managing-financial-flexibility/

How financial institutions can overcome tech modernization challenges

Declining costs and timelines in core system componentization make migrations more feasible. Shifts in business and technology models, driven by modern delivery methods and flexible software options, support this trend.

Migration risks are lower than maintaining legacy systems, as cloud solutions provide greater flexibility and cost efficiency through incremental upgrades and usage-based pricing.

These combined factors present a significant opportunity for institutions to initiate migration and transformation efforts.

Source: https://www.oliverwyman.com/our-expertise/insights/2024/oct/5-key-considerations-to-transform-core-banking-systems.html

2025 outlook: The year ahead

1. Economic growth is expected to be between 2.2% and 2.5%, bolstered by full employment and stable prices.
2. RSM predicts four Federal Reserve rate cuts of 25 basis points each, while the 10-year Treasury yield may approach 4.5%, possibly hitting 5% by year-end.
3. Ongoing growth is anticipated in 2025, with only a 15% chance of recession within the next year.
4. Expect continued trade restrictions and policies aimed at reinforcing critical domestic supply chains and ensuring abundant energy sources.

Source: https://rsmus.com/insights/economics/the-us-economic-year-ahead-2025.html

Harnessing the advantages of Bancassurance

Bancassurance benefits banks, insurers, and customers alike. A BCG survey identifies best practices for leveraging this opportunity.

Key takeaways

1. Bancassurance boosts profitability for banks and insurers while improving customer access to insurance.
2. Top banks utilize exclusive partnerships that focus on tailored insurance solutions.
3. All bancassurers must enhance digital and AI capabilities for long-term success.

Source: https://www.bcg.com/publications/2024/benefits-of-bancassurance

Venture pulse – Q3 2024

Venture capital investment in the US fell in Q3’24, driven in part by an expected seasonal slowdown in deals activity. In Q3’24, VC investment in AI surged despite market uncertainty.

Given the quiet IPO activity over the past two years, many eyes will be on IPO market in Q4’24 and into 2025 with the hope of a significant reopening of activity. While it might take time for IPOs to materialize, there could be an increase in the number of companies announcing their intent to go public over the next few quarters.

Source: https://kpmg.com/us/en/articles/2024/venture-pulse-q3.html

Feel good Sunday: Art’s healing power

Lily Yeh, a barefoot artist, travels globally with art supplies, inviting collaboration. In her talk, she shares how her projects transform “broken” public spaces into vibrant community hubs.

Source: https://www.ted.com/talks/lily_yeh_how_art_transforms_brokenness_into_beauty?subtitle=en

Curious Saturday: Success grows from taking risks

Career success varies for everyone, but taking risks is essential across all industries.

Molly Graham, a company and community builder, highlights three key skills to master before making bold moves — offering a route beyond the corporate ladder into genuine professional and personal development.

Source: https://www.ted.com/talks/molly_graham_forget_the_corporate_ladder_winners_take_risks/transcript?subtitle=en

Transforming European savings into investment, innovation, and growth – Christine Lagarde

Europe has abundant ideas, innovators, and savings. Europeans save a larger portion of their income than Americans and are competitive in global patent applications. However, Europe often struggles to convert these ideas into technologies that stimulate growth.

One challenge is the difficulty in channeling substantial savings into scaling innovations compared to the United States. Europe needs to refocus on identifying key bottlenecks in financing while prioritizing solutions with the greatest potential impact — three of which stand out today.

Source: https://www.economist.com/by-invitation/2024/12/04/how-to-turn-european-savings-into-investment-innovation-and-growth-by-christine-lagarde

Banking M&A: Merger of equals

In light of heightened regulatory scrutiny after recent bank failures, small to midsize banks are pursuing mergers of equals to enhance stability and compliance.

These partnerships require not only financial alignment but also cultural and operational integration based on shared objectives and fair governance.

Thorough due diligence is crucial for banking M&A, along with a balance of careful planning and flexibility post-merger, to ensure immediate gains and long-term adaptability.

Source: https://www.ey.com/en_us/insights/strategy-transactions/banking-m-a-quick-takes-mergers-of-equals

Consumer sentiment report: December 2024

Key takeaways:

1. Deloitte’s financial well-being index hit a four-year high of 104.3 in October, rising by 5.3 points from September and 14.2 points year-over-year.
2. In October, 77% of higher-income respondents reported improved finances, up 14 points from 2022; only 54% of lower-income respondents saw similar improvement.
3. Discretionary spending intentions have risen for the fifth month but remain below 2021 levels.
4. Spending intentions vary by category: Housing, leisure travel, and groceries show strong gains compared to 2021, while clothing and home furnishings lag behind.

Source: https://www2.deloitte.com/us/en/insights/economy/consumer-pulse/state-of-the-us-consumer.html

The rise of embedded finance

Key takeaways:

1. Embedded finance has transformed from a niche idea to a key player, fueled by increased digital and contactless payments during the pandemic.
2. The market is projected to grow rapidly, with an anticipated CAGR of 21%, expanding from $83B in 2023 to $240B by 2033.
3. Regulatory changes are enhancing competition while promoting transparency and security.
4. Success hinges on building trust, utilizing insights, and ensuring seamless customer experiences for FIs and brands.

Source: https://www.lek.com/insights/fin/us/ei/embedded-finance-revolution-fast-furious-and-just-beginning

A CEO’s self-assessment: key questions

Top CEOs often rely on core mindsets. This McKinsey checklist transforms these mindsets into actionable practices to elevate their companies.

McKinsey has developed a vital checklist encompassing six key responsibilities for CEOs: setting direction, aligning the organization, mobilizing leaders, engaging the board, connecting with stakeholders, and enhancing personal effectiveness.

This framework is informed by extensive interviews with over 70 successful current and former CEOs of the 21st century, including figures like Microsoft’s Satya Nadella and JPMorgan Chase’s Jamie Dimon.

Source: https://www.mckinsey.com/capabilities/strategy-and-corporate-finance/our-insights/the-ceos-essential-checklist-questions-every-chief-executive-should-be-able-to-answer

Feel good Sunday: The power of classical music to transform

Benjamin Zander passionately shares classical music and inspires us to discover our hidden affinity for it — unlocking new possibilities, experiences, and connections.

Source: https://www.ted.com/talks/benjamin_zander_the_transformative_power_of_classical_music

Curious Saturday: Body language and identity

Body language not only shapes others’ perceptions of us but also influences our self-view. Social psychologist Amy Cuddy suggests that “power posing” — adopting confident postures — can enhance feelings of confidence, potentially increasing our chances for success.

Source: https://www.ted.com/talks/amy_cuddy_your_body_language_may_shape_who_you_are

The case for investing outside the U.S.

For much of the last two decades, European stocks have been cheaper relative to earnings than American ones. Many believed this indicated better returns and lower crash risks — but they were wrong.

The key reason to consider international markets is the disparity in exposure and valuation between American and foreign firms. About 40% of U.S. company earnings come from abroad, while foreign companies derive 20% of their profits from America, indicating a shared profit landscape.

Despite this overlap, American companies are valued significantly higher relative to earnings than their foreign counterparts. This gap is often attributed to better profit margins and management but raises questions about market valuations based on differing multiples for domestic versus international earnings. With U.S. shares at near-record high valuations, it’s conceivable that a correction could be pending as these discrepancies seem increasingly unjustifiable.

Source: https://www.economist.com/finance-and-economics/2024/11/21/should-investors-just-give-up-on-stocks-outside-america

The broadening scope of Board duties

Key Takeaways:

Boards are navigating complex challenges such as climate sustainability, GenAI, and geopolitical disruptions. Insights from a BCG survey of over 400 directors include:

1. Most directors believe their company understands the impacts of sustainability and geopolitics, but there’s uncertainty regarding GenAI.
2. Progress in sustainability is evident; only 27% report lacking a strategy to leverage sustainability shocks for competitive advantage, down from 46% last year.
3. Governance is evolving, with more than 60% of directors indicating enhancements in risk management practices.

Source: https://www.bcg.com/publications/2024/expanding-agenda-for-boards-of-directors

Protect tech investments by demonstrating value

With increasing tech budgets comes heightened scrutiny, particularly as CFOs remain cautious. Many leaders still rely on traditional measures to assess tech investment impacts, which may undervalue the true benefits and risk defunding or underfunding.

In 2023, Deloitte’s Center for Integrated Research surveyed 1,600 global business and technology leaders about their KPIs for evaluating tech investments. The most commonly used KPIs were financial metrics, process performance, and customer metrics. While these are essential measures, an exclusive focus on them can overlook the broader value of technology.

Source: https://www2.deloitte.com/us/en/insights/industry/technology/maximize-tech-investments-by-safeguarding-tech-budgets.html

**Adapting to a transformed banking industry**

In July 2024, the Risk Management Association (RMA) surveyed 177 chief risk officers (CROs) from North American banks about their main challenges. They highlighted that the industry has been significantly altered by the 2023 regional bank crisis, leading to stricter regulations.

The latest RMA, ProSight, and Oliver Wyman CRO Outlook Survey indicates that banks are now operating in a different landscape than before the crisis. Risks are evolving more rapidly, regulators have heightened expectations, and consequently, the role of risk management in strategic planning has expanded.

This report examines seven key themes derived from survey findings and interviews with respondents to illustrate how banks are adapting to this new environment while tackling ongoing challenges.

Source: https://www.oliverwyman.com/our-expertise/insights/2024/nov/risk-strategies-for-bank-cro-build-future-resilience.html

What regulates AI?

AI guardrails ensure that an organization’s AI tools align with its standards, policies, and values. While gen-AI can enhance efficiency and innovation, it also poses challenges. As the adoption of gen-AI accelerates, guardrails are essential for responsible usage. They help detect and eliminate inaccuracies from LLMs and monitor risky prompts.

Source: https://www.mckinsey.com/featured-insights/mckinsey-explainers/what-are-ai-guardrails

Feel good Sunday: Good jobs, good business

Many essential jobs — like cleaning and elderly care — pay so little that workers struggle to survive. Nonprofit leader Zeynep Ton aims to change this, highlighting the benefits of livable wages and growth opportunities for everyone involved.

Source: https://www.ted.com/talks/zeynep_ton_the_case_for_good_jobs_and_why_they_re_good_for_business_too

Curious Saturday: Embracing silly questions and fortunate mistakes fuels innovation

For launching initiatives in big corporations, collaborate with the system instead of resisting it, advises “intrapreneur” Dave Raggio. He shares 3 hard-earned lessons on innovation to save you time.

Source: https://www.ted.com/talks/dave_raggio_ask_dumb_questions_embrace_mistakes_and_other_lessons_on_innovation?subtitle=en

Luck, skill, and the stock market

In a Financial Times article, Simon Edelsten suggests that playing bridge enhances his investing skills. Both activities engage similar cognitive processes, as they involve recognizing patterns and making informed responses.

Victor Mollo and Nico Gardener’s guide to bridge play is aptly titled “The Art of Being Lucky.” The title is ironic; what appears to be luck stems from solid technique developed through practice and experience.

Source: https://www.ft.com/content/4041396f-c6be-4ad1-8d5b-3e876984f958#comments-anchor

Happy Thanksgiving from the Loquat team!

Impact of rising capital costs on the U.S. economy

The interplay between the public, businesses, and monetary policymakers is intricate. The Federal Reserve’s shift to lower interest rates will significantly affect the wider economy. Years of zero interest rates have shaped a generation of market-savvy professionals now facing uncertainty. This transition period will bring considerable costs as companies adapt to stay competitive. To succeed, they should focus on enhancing free cash flows and enterprise value. Recognizing the changing landscape and adjusting accordingly will lead to future benefits.

Source: https://rsmus.com/middle-market/the-real-economy.html

Royal Caribbean’s digital transformation

The swift evolution of digital technology has raised customer expectations, pushing organizations to innovate. EY reports indicate that 50% of CEOs feel their companies haven’t taken adequate steps against disruption, jeopardizing market leadership.

For Royal Caribbean, this involved reimagining the entire customer journey and integrating advanced technologies to enhance guest experiences in the Transformative Age.

Source: https://www.ey.com/en_gl/insights/consulting/how-digital-transformation-opened-new-channels-for-growth

Embrace the digital opportunity

An all-in strategy in digital sets leaders apart.

A recent L.E.K. survey of 1,000 digital executives reveals that some companies, termed “digital leaders,” have advanced significantly by digitizing their existing processes and using digital as a catalyst for future growth.

Source: https://www.fastcompany.com/91221730/its-time-to-go-all-in-on-digital-four-key-strategies-of-successful-leaders

Feel Good Sunday: Staying focused under pressure

Athletes condition their bodies, but what about their minds? Quarterback Russell Wilson shares his approach of “neutral thinking,” a method that helps him excel under pressure both on and off the field. Learn how to apply this mindset for better decision-making in your life.

Source: https://www.ted.com/talks/russell_wilson_my_secret_to_staying_focused_under_pressure/transcript?subtitle=en

Curious Saturday: Defending democracy and combating autocracy

Leopoldo Lopez, a freedom fighter, highlights that 72% of the global population lives under autocratic rule. In his powerful appeal to protect democracy, he recounts his imprisonment and exile for opposing Venezuela’s authoritarian regime. Lopez envisions a united effort across borders to promote freedom and eliminate autocracy.

Source: https://www.ted.com/talks/leopoldo_lopez_how_to_defend_democracy_and_fight_autocracy?subtitle=en

The benefits of being wrong

Even the biggest mistake-makers can achieve greatness. In “Right Kind of Wrong,” Harvard Business School professor Amy Edmondson discusses how to foster a positive relationship with failure. She asserts that in our complex world, striving for excellence involves taking risks, and it’s crucial to identify what should change for next time.

Edmondson emphasizes that neither individuals nor organizations can learn if they ignore their mistakes. Instead, failures must be analyzed objectively, often requiring a clear process to recognize when things go wrong.

Source: https://www.economist.com/business/2024/11/07/why-being-wrong-is-good-for-you

Financial institution digital shortcomings are costing them small business customers

Small and medium-sized businesses (SMBs) play a vital role in national economies, yet FIs often overlook their needs. They find themselves caught between retail consumer services and commercial banking, leading to underinvestment from financial institutions. However, FIs are beginning to enhance their offerings for SMBs by focusing on digital tools.

A recent Bain survey of 20,403 US SMBs highlighted several gaps including:

1. Many interactions remain primarily physical rather than digital, especially during product or service applications.
2. Boosting digital engagement requires banks to simplify access and usability of online channels.
3. Digital failure rates are still too high for certain processes like setting up lines of credit due to complicated procedures lacking cohesive support.

Source: https://www.bain.com/insights/banks-clunky-digital-tools-alienate-many-small-firms-snap-chart/

The art of 21st-century leadership

Per McKinsey’s engagement with senior executives, they believe leadership development requires different personal attributes and practices compared to previous generations.

This article examines what it takes to lead in the 21st century and how organizations can create a leadership factory to mentor future managers. By prioritizing leadership development as a core capability, organizations can enhance resilience and improve their chances of navigating disruptions effectively.

Source: https://www.mckinsey.com/capabilities/strategy-and-corporate-finance/our-insights/the-art-of-21st-century-leadership-from-succession-planning-to-building-a-leadership-factory

4 payment solutions to empower small and medium enterprises

In the Asia-Pacific region, micro, small, and medium-sized enterprises (MSMEs) represent over 97% of businesses and are crucial for economic growth and innovation.

These MSMEs exhibit varying levels of financial literacy, technological adoption, channel preferences, and growth ambitions. This diversity encompasses everything from single-location shops to multi-channel retailers and solely e-commerce merchants. Consequently, banks and merchant acquirers face challenges in customizing payment solutions to meet the diverse needs of MSMEs.

Source: https://www.oliverwyman.com/our-expertise/insights/2024/nov/payments-innovation-opportunities-msme.html

The health of the US consumer in October 2024

Deloitte’s key takeaways:

1. Deloitte’s financial well-being index rose 5.3 points year-over-year, holding steady at 99.0 in September 2024.
2. Improvements in financial well-being are mainly driven by higher-income households.
3. Discretionary spending intentions grew for the fourth month in a row, though still below the 2021 baseline, indicating recovering confidence.
4. Spending trends vary by category; housing and leisure travel show the strongest increases relative to the 2021 baseline.

Source: https://www2.deloitte.com/us/en/insights/economy/consumer-pulse/state-of-the-us-consumer.html

Feel Good Sunday: My definition of beauty

Model and activist Winnie Harlow sees beauty everywhere, from Instagram photos to the shine on a bald head. In this brief talk, she shares how living with vitiligo enabled her to reject societal standards and redefine beauty for herself.

Source: https://www.ted.com/talks/winnie_harlow_how_i_define_beauty

Curious Saturday: Tap into your intuition

“Intuition allows us to grasp the bigger picture,” says filmmaker and sustainability advocate v.

Drawing from her experience at the UN, she highlights three ways innsæi (Icelandic for “intuition”) can aid humanity in confronting major existential challenges — encouraging us to let our inner wisdom guide crucial transformations.

Source: https://www.ted.com/talks/hrund_gunnsteinsdottir_listen_to_your_intuition_it_can_help_you_navigate_the_future?subtitle=en

Peru’s blueberry boom

In 2013, Peru exported blueberries worth just $17 million. However, by last year, that figure skyrocketed to $1.7 billion. By 2019, Peru became the world’s largest exporter of fresh blueberries, shipping over twice as many as its nearest competitors.

Source: https://www.economist.com/the-americas/2024/09/12/the-sweet-story-of-perus-blueberry-boom

2024 Deloitte holiday retail survey

Deloitte’s 2024 holiday survey shows increased consumer optimism, with spending expected to rise by 8% this year.

Consumers are prioritizing experiences, anticipating a 16% increase in related spending. To maintain festive cheer, many are making tradeoffs and hunting for deals—75% plan to engage in October and November promotions (up from 61% in 2023).

With five fewer shopping days this season, these events may be vital for encouraging early purchases.

Source: https://www2.deloitte.com/us/en/insights/industry/retail-distribution/holiday-retail-sales-consumer-survey.html

5 essential steps to digital banking success

Choosing the right digital banking solution is crucial for #banks and credit unions. Consumer expectations have risen significantly over the past decade, and institutions that fail to create a strong digital experience risk losing customers to competitors, neo-banks, and fintechs.

While modernizing your digital banking can offer benefits, it also carries risks. Customer experience impact, integration complexity, operational challenges, and costs make switching solutions highly risky—second only to core banking system migrations. Issues with an inadequate solution or its integration may be quickly noticeable to customers.

Source: https://www.oliverwyman.com/our-expertise/insights/2024/oct/5-step-guide-to-modernizing-digital-banking.html

Adaptable CEOs: The key to success

Versatility is essential for effective leadership. Leaders should seek diverse experiences, embrace curiosity, and know when to engage in discussions.

To enhance their adaptability, leaders must identify necessary skills and relevant roles while managing trade-offs. They should explore learning strategies and collaborate with team members or experts to address knowledge gaps.

Time investment is crucial for expanding versatility through both on-the-job experience and study. Leaders should focus on a few key areas that align with their organizational goals.

While the journey of self development can be challenging, the rewards are significant.

Source: https://www.mckinsey.com/capabilities/people-and-organizational-performance/our-insights/the-versatile-leader-how-learning-to-adapt-makes-ceos-better

Overcoming cloud transformation challenges

In today’s competitive landscape, failing to embrace cloud computing and AI can hinder growth. Look out for six key indicators that suggest your cloud transformation is struggling. Implementing specific interventions can effectively address typical challenges encountered during these transformations.

Source: https://www.bcg.com/publications/2024/overcoming-cloud-migration-challenges

Feel good Sunday: Lessons from Canoeing Across the Ocean

“Voyaging compels you to unplug,” says TED Fellow and captain Lehua Kamalu. She shares insights from traditional Hawaiian ocean voyaging, highlighting the transformative nature of seafaring journeys and the importance of mindful travel, regardless of your location.

Source: https://www.ted.com/talks/lehua_kamalu_what_you_can_learn_crossing_the_ocean_in_a_canoe?subtitle=en

Curious Saturday: My misjudgment on the tipping point

In his 2000 bestseller “The Tipping Point,” Malcolm Gladwell explored the decline of crime in New York City during the 1990s. Now, 25 years later, he admits, “I was wrong.”

He reflects on how his analysis inadvertently supported the controversial “stop and frisk” policy in NYC and emphasizes that journalists must be cautious not to assume any story is truly finished.

Source: https://www.ted.com/talks/malcolm_gladwell_the_tipping_point_i_got_wrong

An economics Nobel for insights into national success and failure

Why are some countries wealthy while others struggle? This fundamental question in economics reveals that a person’s living standards often hinge more on their birthplace than on individual talent or effort.

Traditional economic growth models emphasized the accumulation of production factors — labor, capital, and technology. The theory posited that higher capital per worker led to greater national wealth.

However, this didn’t fully explain disparities among nations. This year’s Nobel prize winners in economics contend that government quality is key to understanding these differences.

Source: https://www.economist.com/finance-and-economics/2024/10/14/an-economics-nobel-for-work-on-why-nations-succeed-and-fail

The importance of digital sustainability in business

Deborah O’Neill (Oliver Wyman) and Mariane ter Veen (INNOPAY) discuss the necessity of digital sustainability.

Five key principles:

1. Align business practices with digital sustainability
2. Build trust and data sovereignty during transformation
3. Encourage internal awareness and open communication
4. Implement practical solutions through data ecosystems
5. Ensure #compliance with regulations and standards

Source: https://www.oliverwyman.com/our-expertise/insights/2024/oct/5-pillars-for-digital-sustainability-in-business-strategy.html

Open banking success: A roadmap for regional banks

Open banking presents regional banks with the chance to strengthen customer relationships and uncover new revenue opportunities. To fully leverage this potential, they must embrace strategic technology, data use, and partnerships.

Source: https://www.lek.com/insights/fin/us/ei/thriving-open-banking-blueprint-regional-banks

Tech-driven banking: An investor’s perspective

Global technology spending in banking has risen by 9% annually, reaching $650B in 2023, while revenue growth lags at 4%. However, quantifying the net benefits remains challenging.

The sector faces issues such as declining productivity, unclear competitive differentiation, and rising complexity costs.

This article by McKinsey discusses how banks can maximize their technology investments and demonstrate value to stakeholders through strategic allocation and outcome-based execution.

Source: https://www.mckinsey.com/industries/financial-services/our-insights/unlocking-value-from-technology-in-banking-an-investor-lens

Gen-AI strategy framework

In a 2024 Gartner poll, 40% reported GenAI deployed in over three business units. Customerservice and marketing lead in using Gen-AI.

Organizations should ask themselves the following critical questions when implementing GenAI:

1. Why pursue AI—and specifically generative AI?
2. What value it will bring?
3. How do we expect to that value?
4. Which use cases should we prioritize?

Source: https://www.gartner.com/en/insights/generative-ai-for-business

Feel good Sunday: Insights from COVID on life (and data)

Data transcends mere numbers; it narrates the stories that shape us, explains information designer Giorgia Lupi. After her long COVID diagnosis, she meticulously tracked her symptoms for four years, which resulted in a compelling “New York Times” visual narrative that resonated with many experiencing chronic illness.

Lupi encourages us to view data not as rigid truth but as a dynamic language for self-understanding, prompting a refreshing shift in perspective based on our viewpoint.

Source: https://www.ted.com/talks/giorgia_lupi_what_long_covid_taught_me_about_life_and_data/transcript?subtitle=en

Curious Saturday: Will economic growth end by design or disaster?

What if the economy prioritized solving poverty, caring for nature, and well-being over relentless growth?

Environmentalist Gaya Herrington urges a shift from “never enough” to “enough for each,” prompting us to consider whether the cessation of exponential growth on our finite planet will be intentional or catastrophic.

Source: https://www.ted.com/talks/gaya_herrington_will_the_end_of_economic_growth_come_by_design_or_disaster

Rising gold prices: A canary in the coal mine for world instability

In the past year, gold prices surged by 38%, reaching over $2,700 per troy ounce — a record high. This trend has attracted attention from unexpected places; gold bars are now available at Costco and CU in South Korea as inflation concerns and war fears grow. With increasing financial fragmentation, central bankers are also turning to this ancient asset. We seem to be entering a new golden age.

Source: https://www.economist.com/finance-and-economics/2024/10/22/a-dazzling-new-gold-rush-is-under-way-why

5 trends shaping digital banking

Digital banks have risen in the last decade to overcome traditional banking limitations. They utilize fintech to deliver services like deposits, loans, and transfers through digital platforms. These banks are crucial for enhancing financial inclusion, especially in developing markets, by offering accessible small-scale financial products with reasonable fees to individuals and SMBs.

Source: https://www.oliverwyman.com/our-expertise/insights/2024/sep/five-key-trends-shaping-digital-banks-future.html

Technology leaders: Monetizing innovation

Bain | At a Glance

1. Disruption rates in technology exceed those in other sectors, with half of the top 25 companies dropping out every decade.
2. Recently, leading tech firms have demonstrated resilience, maintaining their top positions and increasing market share.
3. Their success hinges on identifying disruptive trends and effectively scaling them, fostering “winner takes most” dynamics.
4. These companies possess a competitive edge as major innovations demand vast resources in computing power, connectivity, and data.

Source: https://www.bain.com/insights/how-tech-leaders-commercialize-innovation-tech-report-2024/

How innovation is transforming the financial lifecycle

FIS CEO Stephanie Ferris describes the financial lifecycle with 3 key phases:

1. Money in motion: The flow of funds into and out of a business
2. Money at work: How companies utilize capital effectively to reduce fraud or optimize working capital
3. Money at rest: Funds held in accounts, pending reconciliation or analysis

Source: https://www.pymnts.com/news/cross-border-commerce/cross-border-payments/2024/mastercard-introduces-new-commercial-cross-border-payment-solution-banks/

How can banks enhance support for individuals with disabilities?

To identify the banking challenges faced by people with disabilities, the Deloitte Center for Financial Services surveyed 1,000 individuals with disabilities and 1,000 caregivers in May and June 2022. Deloitte’s findings suggest that by embracing an equity-centered design approach and leveraging insights from employees with disabilities, banks can develop more tailored products and improve customer experiences.

Source: https://www2.deloitte.com/us/en/insights/industry/financial-services/accessible-banking-for-disabled.html

Feel Good Sunday: The beauty of bittersweet emotions

Life is a mix of joy and sorrow, light and dark. In a reflective discussion, author Susan Cain highlights how embracing life’s bittersweet moments allows us to navigate love and loss while connecting to the world’s “insane beauty.

Source: https://www.ted.com/talks/susan_cain_why_bittersweet_emotions_underscore_life_s_beauty/transcript

Curious Saturday: 3 Questions for resilience and world change

Zen Buddhist nun Sister True Dedication emphasizes that each step is an opportunity to enhance self-awareness.

Through “mindful walking,” she offers three key questions to help you harness your strength, cultivate resilience, and find inner peace.

Source: https://www.ted.com/talks/sister_true_dedication_3_questions_to_build_resilience_and_change_the_world

Hurricane Milton highlights the risks of Florida’s development surge

On October 9th, Hurricane Milton struck Florida, following closely after Hurricane Helene. The storm has left millions without power and confirmed several fatalities, with a complete assessment of its impact expected to take weeks.

As a Category 3 hurricane, Milton is projected to cost insurers around $100B, making it one of the most costly hurricanes in U.S. history. The increasing destructiveness of storms can be attributed partly to climate change. Warmer seas provide more energy for hurricanes, while higher temperatures allow air to hold more moisture, leading to heavier rainfall. Additionally, rising sea levels from melting ice exacerbate storm surges. Notably, nine out of the ten most expensive hurricanes in America have occurred within the last two decades when adjusted for inflation.

Source: https://www.economist.com/graphic-detail/2024/10/10/hurricane-milton-exposes-the-dangers-of-floridas-development-boom

CFOs facing activist investors? Consider their viewpoint 🤔

Bain Insights:

1. Activist campaigns are growing, especially among large-cap firms.
2. A Bain survey shows that half of CFOs have faced or expect challenges from activists in the next two years.
3. By thinking like an investor, CFOs can tackle concerns before they escalate.

Four investment mistakes to avoid

Jonathan Guthrie explores financial thinking in investments and outlines four key mistakes to steer clear of:

1. Expecting to recover losses on poor investments
2. Focusing solely on nominal prices
3. Purchasing high and selling low
4. Engaging in compulsive storytelling

Source: https://www.ft.com/content/55812632-6fea-4fb8-978c-b809a9425ff8

Charting the course for digital security

In this episode of Oliver Wyman’s Innovators’ Exchange, Mike Engle, co-founder of 1Kosmos, shares key insights from his tech journey. He highlights the necessity for better user experiences amidst an ongoing battle between security measures and fraud tactics. The discussion also emphasizes the need to adapt to new technologies and explore the future of identity verification in our rapidly evolving digital world.

https://www.oliverwyman.com/our-expertise/podcasts/innovators-exchange/cybersecurity-and-digital-identity.html

2025 Financial institutions forecast

As FIs navigate a low-growth, lower-rate environment, they can unlock sustainable growth through innovation and discipline.

🔑 **Deloitte’s Insights:**

1. Stay alert amid #macroeconomic and geopolitical shifts.
2. Rising deposit costs will cap net interest income.
3. Noninterest income could spark topline expansion.
4. Higher compensation and tech investments will spike overall expenses.
5. Credit quality may stabilize but might rise in 2025.

Source: https://www2.deloitte.com/us/en/insights/industry/financial-services/financial-services-industry-outlooks/banking-industry-outlook.html

Feel good Sunday: Loving requires courage

Family life demands remarkable bravery, whether in facing daily challenges or coping with unforeseen crises. Author and podcaster Kelly Corrigan shares insightful wisdom — along with seven essential words — to help you prioritize what truly matters.

Source: https://www.ted.com/talks/kelly_corrigan_to_love_is_to_be_brave

Curious Saturday: The monarch’s majestic migration

The migration of monarch butterflies creates one of the world’s most breathtaking wildlife displays and serves as a crucial indicator of ecological health, according to photographer Jaime Rojo.

In his talk, he shares insights from photographing these captivating insects in their remote mountain habitats in Mexico, delves into recent research about their extensive journey, and discusses ways we can contribute to the movement for their protection.

Source: https://www.ted.com/talks/jaime_rojo_the_magical_mesmerizing_migration_of_monarch_butterflies

Intuition or reflection?

Examining how we fall into cognitive traps may help us combat misinformation. While our initial instincts can often be correct, having second thoughts typically indicates a potential problem — they arise for a reason.

Source: https://www.ft.com/content/57fdd82c-e9a4-41ff-9060-2202c39ff4d5

Scaling up: A guide for midsize banks

As banks and their clients face economic pressures, regional institutions must return to fundamental strategies to tackle core challenges.

In recent years, bank leaders prioritized achieving scale, often aiming for a balance sheet of $300B or more. With rising costs of capital and increased competition, scaling has become even more essential. Fintechs and other nonbank entities—such as Big Tech, telecoms, consumer retail, and industrial players—are encroaching on financial services markets, capturing share from slower-moving banks.

To successfully scale amidst this intensified environment and stringent regulatory scrutiny, regional banks can leverage emerging technologies like AI, advanced data analytics, open APIs, and cloud computing.

Source: https://www.lek.com/insights/fin/us/ar/survival-success-scaling-strategies-midsize-banks

Changing consumer habits: Young generation prioritizes local alternatives

As digital banking reshapes the financial sector, community banks and credit unions are set to attract Generation Z and millennials. These tech-savvy individuals prefer smaller FIs. A recent report reveals that 52% of Gen Z and millennials are considering a switch to community banks, while 47% view credit unions as appealing options. This shift highlights a growing discontent with the impersonal service commonly found at larger banks.

Source: https://www.pymnts.com/credit-unions/2024/52-percent-of-gen-z-and-millennial-consumers-say-they-might-give-community-banks-a-try/

Small business, big potential

McKinsey | At a glance

1. Micro, small, and medium-sized enterprises (MSMEs) are essential to the US economy. They employ nearly 60% of the workforce and contribute almost 40% of national value added, often evolving into significant players within larger corporations.
2. MSMEs in the US exhibit only half the productivity of large firms—compared to 60% in other advanced economies. Bridging this productivity gap, which represents 5.4% of US GDP, is crucial given global production shifts.
3. Performance among MSMEs varies by state and metropolitan area due to sector mix; however, overall trends show that small and large businesses’ performance is interconnected as local conditions affect all business sizes.
4. The relationship between small and large businesses plays a vital role in enhancing overall productivity. Strengthening networks and collaboration—through supply chains, industry clusters, and customer interactions—can enable MSMEs to leverage advantages in technology, human capital, market access, and finance.

Source: https://www.mckinsey.com/mgi/our-research/americas-small-businesses-time-to-think-big

Revolution in European instant payments

Last year initiated a transformative phase for non-card payment infrastructure across Europe. Instant payment solutions are rapidly expanding, emphasizing interoperability.

5 key trends currently shape the European payments landscape: regional blocs, evolving financial solutions, the growing influence of artificial intelligence (AI), regulatory shifts, and changing customer preferences. These factors highlight strategic considerations for stakeholders aiming to enhance their position in 2024.

Source: https://www.oliverwyman.com/our-expertise/insights/2024/aug/key-instant-payments-trends-europe.html

Feel good Sunday: The tapestry of a multicultural soul How do you discover your identity when rooted in two contrasting cultures?

Creative disruptor Farhad Mohit delves into the paradoxes of dual identity, examining how his Iranian and American backgrounds enable him to balance independence with interdependence, progress with presence — allowing him to embrace life in the moment.

Source: https://www.ted.com/talks/farhad_mohit_the_beautiful_paradoxes_of_a_multicultural_identity

Curious Saturday: Insights from my father’s last days

“Life is like a never-ending sushi conveyor belt, filled with challenges that both test and teach us,” says writer Laurel Braitman.

She delves into the connection between courage and fear, offering valuable lessons on love, loss, self-forgiveness, and embracing the full range of human emotions.

Source: https://www.ted.com/talks/laurel_braitman_lessons_from_my_father_s_final_days

Sharpen your mind with legal logic

Lawyers often have a reputation for being tedious and are frequently criticized. However, this perception is unfair; lawyers can serve as valuable role models. The systematic approach and attention to detail inherent in legal thinking offer important lessons for other professionals and their managers.

Source: https://www.economist.com/business/2024/06/27/why-everyone-should-think-like-a-lawyer

Prediction of cloud computing trends

Key Findings – Gartner

1. The cloud has emerged as the primary platform for AI support. However, challenges such as sovereignty, data privacy, application composability, and sustainability hinder enterprise adoption of technologies like GenAI.
2. Specialty cloud providers are increasingly vital in advancing organizations’ digital initiatives, particularly regarding region-specific sovereign mandates.
3. Infrastructure and operations leaders prioritize monitoring sustainability metrics and managing the costs associated with cloud ownership.

Source: https://www.gartner.com/en/infrastructure-and-it-operations-leaders/topics/cloud-computing

Economic outlook report – September 2024

For the first time since March 2020, surveyed executives perceive the global economy as stable rather than improving. The latest McKinsey Global Survey indicates a more cautious outlook from respondents regarding both global and domestic economies compared to previous quarters; however, a plurality still anticipates improvement in the next six months.

Geopolitical instability continues to be viewed as the primary risk to growth, while political transitions have emerged as the second-most cited threat amid an election year that will see nearly half of the world’s population voting.

In terms of long-term risks over the next decade, geopolitical instability is regarded by all regions as the leading global threat. Concerns differ regionally, with Greater China focusing on energy issues and North America emphasizing government-related challenges.

Source: https://www.mckinsey.com/capabilities/strategy-and-corporate-finance/our-insights/economic-conditions-outlook-2024

Is API the new currency of global banking innovation?

With advancements like instant payments and real-time data integration becoming standard, multinational companies and FIs face pressure to streamline operations and deliver innovations that meet or exceed the expectations of next-generation users.

A significant challenge for these entities is integrating varied systems, such as enterprise resource planning platforms and treasury management systems. To effectively manage global operations, firms need seamless connectivity between their financial systems and banking networks.

Source: https://www.pymnts.com/news/digital-banking/2024/is-api-the-most-important-3-letter-word-in-global-banking-innovation

Digital success: A 6-step guide

Many large companies have embarked on their digital transformation, some starting over a decade ago. However, Bain research shows that numerous executives are dissatisfied with the returns on their investments in digital initiatives; only 22% feel they’ve met most of their goals, and a mere 2% believe they’ve fully achieved them.

A major obstacle in these transformations is the fast-paced evolution of digital technology. Executives report facing unparalleled levels of disruption, which they anticipate will persist or intensify for at least another five years.

Bain’s research highlights six key actions taken by companies that successfully navigate digital transformations.

Source: https://www.bain.com/insights/digital-transformations-six-actions-that-lead-to-success-infographic/

Feel good Sunday: Insights on a fulfilling life from a neuroscientist and financial CEO

What is the link between long-term health and financial stability?

Neuroscientist Wendy Suzuki and Annabel Spring, CEO of HSBC Global Private Banking and Wealth, delve into essential elements that contribute to a good life. They highlight how simple practices such as regular exercise and effective financial planning can enhance both present and future well-being.

Their discussion covers ways to amplify joy, transform anxiety into positive energy, and maintain brain health throughout your lifetime.

Source: https://www.ted.com/talks/annabel_spring_and_wendy_suzuki_what_makes_a_good_life_a_neuroscientist_and_a_global_financial_ceo_answer

Curious Saturday: The tipping points of climate change

As we approach the midpoint of the 2020s, recognized as a crucial decade for climate action, it’s essential to assess our current situation.

Climate impact expert Johan Rockström provides an updated scientific evaluation of Earth’s condition and outlines necessary steps to maintain its resilience against human activities.

Source: https://www.ted.com/talks/johan_rockstrom_the_tipping_points_of_climate_change_and_where_we_stand

Strategies for banks to adapt to climate change

Bain | Key Findings

1. Wildfires, droughts, and other climate dangers jeopardize banks’ loan portfolios; however, many FIs have a limited understanding of their vulnerabilities.
2. The exposure of real estate assets to physical risks is expected to grow over the next few decades, likely diminishing collateral value and impacting the profitability of banks’ mortgage operations.
3. Proactive measures taken by banks can improve financial stability, increase customer retention, and ensure compliance with emerging regulatory standards.
4. Evaluating physical risk necessitates advanced tools, capabilities, forecasting horizons, and data—all of which remain difficult to acquire and integrate.

Source: https://www.bain.com/insights/fires-floods-and-loans-how-banks-can-deal-with-increasing-climate-risks-ceo-sustainability-guide-2023/

The breakthrough AI requires

Two years post-ChatGPT’s rise, GenAI appears to face significant challenges. The escalating energy costs of developing and operating larger models are becoming unmanageable, and achieving breakthroughs is increasingly difficult.

Thankfully, researchers and entrepreneurs are actively seeking solutions to these limitations. Their creativity will not only revolutionize AI but also influence which companies succeed, determine investor returns, and establish global leadership in the technology.

Source: https://www.economist.com/leaders/2024/09/19/the-breakthrough-ai-needs

🎉 Exciting Announcement! 🎉

Join us at the American Banker Small Biz Banking 2024 conference for a session titled – “Unthink onboarding as you knew It: Resetting the digital experience & raising expectations for small biz”! 🌟

We are pleased to announce that Zarina Tsomaeva, CEO & Founder of Loquat will be speaking alongside our client Kimberli Green, VP of Business Development at America First Credit Union.

Together, they’ll share their insights on the future of small business banking.

Please mark your calendars — this is a session you won’t want to miss! https://conference.americanbanker.com/event/small-biz-banking/websitePage:2a657e40-c10c-4674-99d2-d97a757b6a52?session=4eb8692f-e65e-4d2e-8880-ac7d79a15f75

The next era of private credit

Over the past 15 years, private credit has rapidly emerged as one of the fastest-growing sectors within the financial system. By the end of 2023, this asset class is estimated to reach nearly $2 trillion—approximately ten times its size in 2009.

Despite being a small portion of the overall fixed-income market, private financing solutions consistently outperform traditional bank and public options. McKinsey analysis indicates that the potential addressable market for private credit in the United States could exceed $30 trillion.

Source: https://www.mckinsey.com/industries/private-capital/our-insights/the-next-era-of-private-credit

US economic forecast

The Q3 2024 outlook highlights strong consumer spending, elevated business investments, and declining interest rates as key factors sustaining optimism in the US economy. Nevertheless, challenges such as geopolitical tensions and ongoing high inflation persist.

Deloitte’s baseline scenario remains relatively positive with expectations for the US economy to grow by 2.7% this year.

Source: https://www2.deloitte.com/us/en/insights/economy/us-economic-forecast/united-states-outlook-analysis.html

Feel good Sunday: How to Live a Meaningful Life

What constitutes a meaningful life? Social psychologist Brian Lowery examines the 3 concepts of coherence, purpose, and significance tied to the experience of meaning and reveals that solely chasing personal achievements may not be the optimal path.

Source: https://www.ted.com/talks/brian_s_lowery_how_to_live_a_meaningful_life

Curious Saturday – Telegram’s CEO arrested: why it matters

Online democracy advocate Eli Pariser discusses the August 2024 arrest of Telegram CEO Pavel Durov by French authorities and its implications for tech oversight and free speech.

Source: https://www.ted.com/talks/eli_pariser_the_arrest_of_telegram_ceo_pavel_durov_and_why_you_should_care

Consumer Sustainability: A Conundrum

Bain Study | Key Findings

1. ~60% of consumers report heightened concerns about climate change over the past two years.
2. Leading companies will create solutions that enable consumers to live sustainably, rather than just purchase sustainable products.
3. Companies should avoid presenting “sustainability” as a uniform concept or treating all consumers alike; instead, they can generate value by targeting specific segments with relevant claims.
4. Packaging and recyclability have emerged as significant consumer priorities.

Healthy organizations continue to succeed, but the landscape is evolving rapidly

To improve organizational health and performance, it’s essential to adopt new practices: empowering employees in decision-making, leveraging technology for value creation, and modernizing leadership styles.

Source: https://www.mckinsey.com/capabilities/people-and-organizational-performance/our-insights/healthy-organizations-keep-winning-but-the-rules-are-changing-fast

CFOs exercise caution 2024 US election approaches

A Pew Research Center survey from July—before President Biden withdrew from the race—revealed that 71% of registered voters believe the outcome of the upcoming US elections is significant.

Similarly, Deloitte’s third quarter North American CFO Signals survey indicates that 58% of CFOs view the election result as extremely or very consequential for their organizations, while only 3% think it will have no impact at all.

Source: https://www2.deloitte.com/us/en/insights/topics/strategy/deloitte-cfo-signals-quarterly-survey.html

3 imperatives for AI implementation in financial institutions

FIs must strategically plan and establish strong foundations in governance, risk management, and standardization when transitioning to AI-enabled operations.

By focusing on these essential areas, FIs can effectively navigate the complexities of AI adoption, enhancing operational efficiency, mitigating risks, and achieving a competitive edge.

Source: https://rsmus.com/insights/industries/financial-services/3-key-foundations-for-implementing-ai-in-financial-institutions.html

The Fed’s interest rate cut explained

On September 18th, the Federal Reserve made a notable decision to reduce interest rates by half a percentage point, bringing them down to between 4.75% and 5%. This marks the first cut since the Fed raised rates to combat inflation, signaling the beginning of a monetary-easing cycle.

The move reflects confidence that inflation will soon become less of an issue and acknowledges the need for measures to bolster the labor market. The Fed was late in raising rates in 2022. This time, it hopes that starting with a bigger cut will steer the economy towards a soft landing, avoiding the recession which many analysts once thought inevitable.

Source: https://www.economist.com/finance-and-economics/2024/09/18/why-the-federal-reserve-has-gambled-on-a-big-interest-rate-cut

Feel good Sunday: How to discover laughter everywhere

What makes some people hilariously funny while others are not? Comedian Chris Duffy explains how to enhance your sense of humor and find joy in daily life by adopting a childlike perspective.

Source: https://www.ted.com/talks/chris_duffy_how_to_find_laughter_anywhere/

Curious Saturday: Can math aid in repairing democracy?

Is it possible for mathematics to enhance responsiveness within American democracy? Neuroscientist Sam Wang discusses how computer simulations can identify gerrymandered districts and assess the effects of alternative voting methods like ranked-choice voting, offering solutions to mend flaws in US democratic processes.

Source: https://www.ted.com/talks/sam_wang_can_math_help_repair_democracy

Global cooperation is increasingly vital

Three key areas for impactful international collaboration include:

1. Technology: We must work together to improve equitable access to digital tools, promote development (especially in the Global South), and ensure responsible AI adoption globally.
2. Climate change: Stakeholders need to recognize the high costs of inadequate climate action, unite efforts to reduce GHG emissions, and enhance adaptation and resilience strategies.
3. Finance: Jointly developing innovative financial frameworks can optimize catalytic funding sources, accelerating investments focused on critical societal challenges.

Source: https://www.bcg.com/capabilities/social-impact/call-to-collective-action/expert-insights/global-cooperation-more-critical-than-ever

Generative AI is increasing the risk of deepfakes and fraud in banking

The capabilities of genAI open up new opportunities for criminals, broadening the scope and scale of fraudulent activities targeting financial institutions and their clients. Rapid technological advancements pose challenges for banks striving to outpace fraudsters. GenAI-driven deepfakes employ self-learning systems that continuously improve their ability to evade detection technologies.

In response,  banks are increasingly partnering with third-party providers to develop anti-fraud solutions. A threat to one organization can jeopardize others; therefore, bank leaders must formulate collaborative strategies both within the industry and beyond to effectively address fraud related to generative AI.

This may require collective action across the banking sector, collaborating with trusted technology partners on strategic initiatives while clearly defining liability responsibilities concerning fraud among all parties involved.

Source: https://www2.deloitte.com/us/en/insights/industry/financial-services/financial-services-industry-predictions/2024/deepfake-banking-fraud-risk-on-the-rise.html

Midcap transformation: The path to growth

Transformations, when executed effectively, allow mid-size firms to realize their full potential. Midsize companies are vital to many economies and can amplify their scale and influence through strategic transformation initiatives. In this episode of McKinsey’s Inside the Strategy Room podcast, three experts share strategies that help midcaps enhance their performance.

Source: https://www.mckinsey.com/capabilities/strategy-and-corporate-finance/our-insights/the-transformation-imperative-for-midcap-companies

What is the effect of LLMs on data quality?

GenAI, particularly large language models, offers new avenues for data professionals to tackle data quality challenges. Engaging with an LLM can simplify the process of identifying and resolving these issues for business users, while facilitating technical experts in developing and executing data quality checks.

However, like any technological advancement, data quality problems cannot be entirely eliminated. While traditional data quality challenges may become easier to address, new obstacles will arise due to the inherent limitations of LLMs. Data quality practitioners must adapt to manage these emerging constraints effectively.

Source: https://www.gartner.com/en/data-analytics/topics/data-quality

Customer-centric digital transformation

Financial institutions (FIs) can facilitate digital transformation by creating multidisciplinary teams focused on developing and scaling solutions.

Key Points:

1. Transformational platforms emerge through the product lifecycle phases: ideation, design refinement, building and execution, testing, and delivery.
2. A human-centered approach effectively defines and implements integrated digital delivery for transformational platforms.
3. Involving the right talent in the software development lifecycle boosts performance, speeds up market entry, and lowers overall service costs.

Source: https://www.ey.com/en_us/insights/financial-services/customer-value-in-domain-driven-digital-transformation

Feel Good Sunday: The grit factor

Angela Lee Duckworth transitioned from a successful consulting career to teaching seventh-grade math in a New York public school. She soon discovered that IQ was not the sole factor distinguishing thriving students from those who faced challenges. In this talk, she presents her theory of “grit” as a key predictor of success.

Source: https://www.ted.com/talks/angela_lee_duckworth_grit_the_power_of_passion_and_perseverance/

Curious Saturday: 10 tips for better conversations

Mastering conversation is essential in many professions, yet most people struggle with it. Celeste Headlee, a seasoned radio host, understands what makes conversations effective: honesty, brevity, clarity, and active listening. In her enlightening talk, she outlines 10 practical guidelines for enhancing your conversational skills.

Source: https://www.ted.com/talks/celeste_headlee_10_ways_to_have_a_better_conversation

With Brazil’s ban on Elon Musk’s X, who will defend free speech?

Free expression has become a culture war, yet advocates for it remain quiet. In Brazil, judges have limited access to the popular social network X. In France, prosecutors are blocking the head of Telegram from departing as they investigate the platform. In Britain, social media users risk prison sentences for posts made during recent riots. In America, there are moves to ban TikTok, a widely-used Chinese-owned app. Debates over free speech are escalating as governments impose stricter controls on online expression. As governments tighten their grip on online expression, debates over free speech grow more contentious. Some measures may be justified; however, others appear aimed at suppressing and punishing lawful voices.

https://www.economist.com/leaders/2024/09/03/as-brazil-bans-elon-musks-x-who-will-speak-up-for-free-speech

Banking on fintech: A powerful partnership

Key Points

1. Banks are increasingly drawn to fintech partnerships to accelerate digital product development, improve time-to-market, and enhance security.
2. However, many participants struggle to unlock the full potential of these collaborations.
3. Common challenges include vague business need definitions, unclear performance metrics, and opaque decision-making processes.
4. Achieving success requires a shift in focus from solely technological issues to prioritizing effective partnerships over just providing solutions.

Source: https://www.bain.com/insights/united-we-thrive-the-untapped-power-of-bank-fintech-partnerships/

Prosperous people, prosperous businesses

For many organizations today, the well-being of their people—workers, contractors, customers, and community members—is paramount. These connections are crucial to driving value in areas such as revenue, innovation, efficiency, brand relevance, productivity, retention, adaptability, and risk management.

However, current initiatives to nurture these vital connections often fall short. Many organizations remain trapped in outdated mindsets that focus on extracting value from individuals rather than collaborating with them to foster a better future for both the organization and its people.

Source: https://www2.deloitte.com/us/en/insights/focus/top-10-business-insights.html#article-when–people-thrive

Improving corporate deposits through transaction banking

FIs can implement the below 7 strategies to retain and strengthen deposits amidst high interest rates and corporates seeking better options:

1. Improve visibility into deposit pools, inflows, and outflows
2. Establish a dedicated deposit command center
3. Create an effective pricing strategy
4. Revise sales approaches
5. Target cash-rich sectors for deposits
6. Leverage AI technology
7. Refresh transaction products associated with deposits

Source: https://www.mckinsey.com/industries/financial-services/our-insights/winning-in-corporate-deposits-through-transaction-banking

FinTech’s future: A focus on sustainability and profitability

The global fintech market is a hub of innovation and growth, even after recent challenges in funding and valuations. There remains significant potential for expansion. With transformative technologies like GenAI emerging and billions of unbanked or underbanked individuals worldwide, the opportunities in fintech are vast. BCG project that fintech will grow to a market size of $1.5 trillion in revenue by 2030—an increase of approximately five times from its current level.

Source: https://www.bcg.com/publications/2024/global-fintech-prudence-profits-and-growth

Feel good Sunday: The power of authenticity

In a brave examination of divisive issues in America, journalist Bari Weiss emphasizes the significance of courage in today’s polarized society. She showcases individuals who have bravely spoken out against conformity and silence, urging everyone to voice their beliefs.

Source: https://www.ted.com/talks/bari_weiss_courage_the_most_important_virtue

Curious Saturday: The art of civil discourse – How to disagree gracefully

In a world where disagreements often lead to hate and contempt, Spencer J. Cox, the Republican governor of Utah, believes it is still possible to have respectful disagreements. He shares the story of a viral campaign ad created with his Democratic opponent in 2020 as an example of this belief in action. Cox offers four practical steps we can all take to mend the divisions in our societies and communities, showing that it is possible to disagree without resorting to animosity or hostility. By embracing this approach, we can work towards creating a more harmonious and understanding world for everyone to thrive in. Let us strive to engage in discussions and debates with respect and civility, even when our opinions differ greatly.

Source: https://www.ted.com/talks/spencer_j_cox_how_to_disagree_with_respect_not_hate

Product innovation: A three-step formula

Innovation and disruption require strategic planning. Product managers should follow three critical steps to innovate and disrupt within their market while focusing on a customer-oriented value proposition.

Source: https://www.gartner.com/en/product-management/topics/product-innovation

Unlocking growth: Digital banking for small businesses

Small and medium-sized businesses (SMBs) offer banks a significant growth opportunity. By adopting a digital approach with a personal touch, banks can effectively cater to this underserved segment.

European Central Bank data reveals that 20% of SMBs in Europe face challenges accessing financing, with one in five unable to secure the credit they need. Despite this demand, banks have struggled to successfully serve SMBs due to the high level of attention required with limited returns and perceived risk.

Source: https://www.mckinsey.com/industries/financial-services/our-insights/a-digital-approach-to-sme-banking

Competing with private credit: Winning strategies for banks

As alternative lending becomes more popular, banks may need to change their strategies to meet the needs of corporate borrowers.

Private credit firms can help banks maintain relationships with corporate clients. Banks can connect their clients with private credit firms, providing faster and more flexible lending options. This benefits both the corporate clients and the private credit firms. Working with private credit firms can help banks reduce credit risk. With stricter regulations, banks may struggle to lend to riskier clients. Private credit firms, being non-banks, face fewer regulations. This partnership allows banks to better serve their corporate borrowers.

Source: https://www2.deloitte.com/us/en/insights/industry/financial-services/alternative-lending-effect-on-banks.html

Leveraging technology for banking dominance

Bain study – key findings

1. Bank performance is closely tied to technology choices, not just the amount spent on technology
2. Banks leading in technology see higher total shareholder return, lower cost-to-income ratio, and higher NPS
3. Value from technology comes from simplification, cost effective processes, and a great digital experience for customers.
4. Three successful strategies require C-suite focus, strong engineering function, commitment to business transformation, and consistent investment.

Source: https://www.bain.com/insights/how-banks-can-parlay-technology-into-a-competitive-edge/

Flywheel to the future: Accelerating digital innovation

In the digital era, businesses must innovate quickly and on a large scale to stay competitive. Traditional top-down operating models are becoming outdated, while digital leaders are embracing new approaches like the flywheel model. This model relies on innovative product teams and a shift in culture and governance to support them.

Source: https://www.bcg.com/publications/2023/competing-with-flywheel-business-model-in-digital-era

Feel good Sunday: How to break through fear and become a leader

Fearlessness. Grit. Resilience. Valerie Montgomery Rice, president and CEO of Morehouse School of Medicine, shares where she learned these key qualities of successful leadership. She offers three lessons for overcoming fears, standing up for what’s right, and creating opportunities for all.

Source: https://www.ted.com/talks/valerie_montgomery_rice_how_to_break_through_fear_and_become_a_leader

Curious Saturday: How to make smart decisions more easily

Everything our bodies do— whether physical or mental— uses energy. Studies have found that many individuals have a daily threshold for making decisions, and prolonged decision-making can lead to cognitive exhaustion. So, what choices lead us to this state, and how can we combat fatigue? Explore the psychology of decision fatigue and learn ways to avoid it.

Source: https://www.ted.com/talks/ted_ed_how_to_make_smart_decisions_more_easily

How to properly take breaks from work

The boundaries between work and personal time have blurred for many workers. Eating lunch at your desk and checking emails in the evenings, weekends, and even on holidays has become the norm. While flexibility in work hours and locations can be beneficial, it has also created a constant need to be reachable.

In 2013, researchers coined the term “the autonomy paradox” to describe how increased flexibility in work schedules has actually led to a decrease in the ability to disconnect from work. This constant connectivity can lead to burnout and decreased productivity in the long run.

Source: https://www.economist.com/business/2024/08/15/how-to-take-proper-breaks-from-work

The future-focused boardroom: Elevating tech talks

Technology is reshaping businesses, prompting board members and tech leaders to have in-depth discussions about its impact. Boards are increasingly appointing members with tech experience. According to Deloitte’s 2023 Global Technology Leadership Study, 67% of organizations now have a board member with tech leadership experience, up from 56% in 2020.

Source: https://www2.deloitte.com/us/en/insights/topics/leadership/elevating-tech-leadership-in-the-boardroom.html

Opportunities for generative AI in retail banking

Key Findings:

1. Retail banking customers have mixed feelings about generative AI (GenAI). While optimistic about its impact on banking tasks, many are hesitant to adopt the technology
2. Younger customers are more willing to use GenAI and want to use it for a wider range of tasks compared to older customers
3. Customers are open to using GenAI for certain aspects of the customer experience where human service falls short, such as educating customers, reducing their burden, and speeding up interactions

Source: https://www.gartner.com/en/doc/803874-opportunities-for-generative-ai-in-the-retail-banking-experience

What is digital transformation?

Digital transformation is the fundamental rewiring of how an organization operates. The goal is to build a competitive advantage by deploying tech at scale to improve customer experience and lower costs. The term “digital transformation” has become a catchall phrase with different interpretations. Clarity and alignment around a specific program are crucial for organizations to compete and survive.

Source: https://www.mckinsey.com/featured-insights/mckinsey-explainers/what-is-digital-transformation

An omnichannel redesign transforms a financial institution’s customer experience

A Bain case study reveals how a FI client revolutionized its customer experience with an innovative omnichannel redesign. Through a strategic multiyear initiative, this FI shattered management silos and reimagined customer journeys from a fresh perspective. By prioritizing the customer’s needs, the FI successfully enhanced its technological, operational, and organizational capabilities and is now equipped with the tools and skills needed to provide exceptional service to its customers.

Source: https://www.bain.com/client-results/an-omnichannel-redesign-helps-transform-a-banks-customer-experience/

Feel good Sunday: What’s possible when the arts belong to everybody

The transformative power of the arts for all communities is highlighted by theater director Lear deBessonet. Through city-wide productions, she shows how collective expression can inspire awe, connect people, and combat loneliness. Broadway star Brian Stokes Mitchell showcases this message with a powerful performance of “The Impossible Dream (The Quest)” accompanied by pianist Todd Almond and surprise vocalists.

Source: https://www.ted.com/talks/lear_debessonet_with_brian_stokes_mitchell_what_s_possible_when_the_arts_belong_to_everybody

Curious Saturday: 12 predictions for the future of technology

Techno-optimist Vinod Khosla shares 12 bold predictions for the future of technology, from preventative medicine to car-free cities to faster travel. He believes in the world-changing power of “foolish ideas” and envisions a future of abundance.

Source: https://www.ted.com/talks/vinod_khosla_12_predictions_for_the_future_of_technology

It’s cool to be kind: The value of empathy at work

In today’s fast-paced work environment, empathy is crucial. Hybrid work models, talent shortages, and divisive political climates make building a strong workplace culture challenging. Research shows empathy boosts team and organizational success. It improves communication, collaboration, employee satisfaction, and retention.

Source: https://www.mckinsey.com/capabilities/people-and-organizational-performance/our-insights/its-cool-to-be-kind-the-value-of-empathy-at-work

Financial Institutions: Fortifying the balance sheet

Key takeaways from BCG’s treasury benchmarking survey:
Despite the volatile interest rate environments, progress in balance sheet optimization continues while operational improvements have stalled:

1. Banks showing slight decrease in risk appetite, but still room for improvement in balance sheet optimization
2. Challenges in fully digitizing operating models due to budget constraints and macro environment distractions
3. Importance of steering financial resources highlighted, with need for clearer governance and better data and IT tools

Source: https://www.bcg.com/publications/2024/bcg-treasury-benchmarking-survey-fortifying-the-balance-sheet

Banking | Top digital use cases

Half of respondents in a recent Bain survey of banking leaders say that personalizing services and customer relationships is a top digital priority, but creating a best-in-class customer experience presents the greatest opportunity for differentiation.

Source: https://www.bain.com/insights/top-digital-use-cases-by-industry-interactive/

Toward the long term: CFO perspectives on the future of finance

According to a recent McKinsey survey, CFOs are placing a greater emphasis on long-term planning and resource allocation, with 55% now considering it a top priority compared to 30% in previous years. Strategic planning has also seen a significant increase in importance, with 60% of CFOs now prioritizing it, up from 38% last year. These shifts indicate a growing focus on future-oriented strategies within finance organizations.

Source: https://www.mckinsey.com/capabilities/strategy-and-corporate-finance/our-insights/toward-the-long-term-cfo-perspectives-on-the-future-of-finance

Data privacy and security worries are on the rise, while trust is down

According to a recent Deloitte survey, nearly 60% of consumers are anxious about the possibility of their devices being hacked or their personal data being stolen. Additionally, a similar percentage fear being tracked by organizations or individuals through their devices. These concerns have significantly increased since Deloitte’s 2022 survey.

In response to these threats, more people are taking steps to protect their data. Deloitte has outlined 14 measures consumers can implement, such as using two-step authentication and installing security software.

Source: https://www2.deloitte.com/us/en/insights/focus/top-10-business-insights.html#article-data-privacy-and-security

Feel good Sunday: A master chef’s take on food, culture and community

Chef Marcus Samuelsson shares his insights on the power of food to unite people and cultures. Join him and art curator Thelma Golden in a conversation about the fusion of modern Black cuisine and the joy of culinary creativity.

Source: https://www.ted.com/talks/marcus_samuelsson_a_master_chef_s_take_on_food_culture_and_community/

Curious Saturday: How we can find ourselves in data

Dive into the world of data storytelling with Giorgia Lupi. Discover how she brings data to life, adding a human touch to numbers. In her TED talk, she shows us how even the smallest details of our daily lives can be visualized and transformed into something relatable and meaningful.

https://www.ted.com/talks/giorgia_lupi_how_we_can_find_ourselves_in_data/

How Stoic thinking could help you play to win

In this edition of McKinsey’s Author Talks, discover how Olympic gold medalist and entrepreneur Mark Tuitert discusses the transformative power of Stoic principles in his book “The Stoic Mindset: Living the Ten Principles of Stoicism.” Learn how adopting a Stoic mindset can not only enhance resilience in challenging times but also instill a sense of purpose, fortify character, and foster deeper connections with others.

Source: https://www.mckinsey.com/featured-insights/mckinsey-on-books/author-talks-how-stoic-thinking-could-help-you-play-to-win?stcr=801A512E0EE24C18BCB4C3E5BC899E7D&cid=other-eml-alt-mip-mck&hlkid=e694e1a868d34b8bb4e719ac9e451c11&hctky=15703051&hdpid=e0436d2c-6f0c-450f-b1bc-7a7c9cb92e36

Passion meets purpose

How to meet AI’s growing power demands

1. AI’s rapid expansion is driving up electricity consumption by as much as 5% annually to power data centers
2. Developed world utilities have not seen electricity demand rise in over a decade, leading to closures of coal-powered plants for decarbonization
3. Balancing the surge in data center demand, expected to increase by 10-30% in the next five years, presents a challenge for utilities and tech companies

Source: https://www.bain.com/insights/how-to-feed-ais-hunger-for-power/

CEOs: the power of reflection

As CEOs navigate their busy schedules, taking time for deep thought and reflection is crucial for success.

Key takeaways:

1. Reflection brings clarity and focus to the CEO’s decision-making process
2. It helps anticipate future risks and scenarios, allowing for better preparation
3. Reflection boosts creativity and energy, essential for driving organizational momentum

Source: https://www.bcg.com/publications/2024/the-rewards-of-ceo-reflection

Mastering the art of sales: 3 essential skills for success

In today’s fast-paced sales world, top performers stand out by excelling in these 3 key areas:

1. Mentalizing: Prioritizing the buyer’s voice, understanding their emotions, and anticipating their behavior through active listening and perspective-taking.
2. Tactical flexibility: Being adaptable and willing to experiment with different strategies to meet the changing needs of informed buyers in real time.
3. AI partnership: Collaborating effectively with AI to optimize tasks like customer messaging, data gathering, and call summarization through use-case selection and prompt engineering.

Source: https://www.gartner.com/en/sales/trends/new-high-performing-seller

Feel good Sunday: 3 elements of true fun – and how to have more of it

Dive into the science behind true fun and how to incorporate more of it into your life. Discover the three key elements of genuine fun according to science journalist Catherine Price: playfulness, connection, and flow. Learn why having fun is crucial for your overall wellbeing and how to differentiate between “true” fun and superficial enjoyment.

Source: https://www.ted.com/talks/catherine_price_3_elements_of_true_fun_and_how_to_have_more_of_it

Curious Saturday: From Beethoven to Kinect, linking music to our bodies

Join us for a thought-provoking session on the intersection of music and the human body with creative technologist Peter Kirn. Discover how Beethoven’s symphonies can evoke physical reactions and explore the innovative technology behind instruments that respond to our movements. Experience the powerful connection between #music and our bodies in a live demonstration that showcases the transformative potential of music technology. Don’t miss this opportunity to delve into the fascinating world of music and its impact on our physical and emotional wellbeing.

Source: https://www.ted.com/talks/peter_kirn_from_beethoven_to_kinect_linking_music_to_our_bodies

The dangerous effects of rising sea temperatures

Scientists warn that the world’s oceans are nearing their heat absorption limit, leading to record-high global sea surface temperatures. This has fueled heatwaves, melting sea ice, and a potentially intense hurricane season. June marked the 15th consecutive month of record-high sea temperatures, with Hurricane Beryl making history as the earliest maximum-severity storm on record. The oceans have played a crucial role in absorbing excess heat and carbon dioxide emissions, but are now at risk of reaching their limits in combating climate change.

Source: https://www.ft.com/content/76c3747d-f068-467a-98f9-4ed687dcb575?accessToken=zwAGHhH2EDrAkc92w3R98GhGetOY-U7Wh9y1dQ.MEUCIQCB1cOQf0niPhJ4olpW8Fs9qmYKNmtWXsYAHGEtZO8mXwIgHPIM55KcCSi9DYDXxa4p-Okgx6tLMdBvM_opJ_IOX0Q

How private equity tangled banks in a web of debt

Private equity firms like Blackstone, Apollo Global Management, and Carlyle Group have seen their assets quadruple to $8tn since 2012. The industry’s reliance on debt has grown alongside its size, fueled by low interest rates. Banks are heavily involved, lending to buyout-owned companies, funds, managers, and investors. Regulators are concerned about the potential risks this complex web of debt could pose to the global financial system.

https://ig.ft.com/private-equity/

Half the world’s children will be born in sub-Saharan Africa by 2100

Key points:

1. Rapid population growth: Sub-Saharan Africa is experiencing a baby boom due to improved healthcare, while other regions like China and India are seeing declining fertility rates
2. Demographic shift: By the end of the century, over half of the world’s babies will be born in Sub-Saharan Africa, compared to 30% in 2021
3. Increased population pressure: The region’s population is expected to double by 2050, putting immense strain on schools, healthcare, and other resources.

Source: https://www.economist.com/graphic-detail/2024/04/16/what-a-baby-boom-means-for-africa

Navigating digital disruption globally

New technologies like generative AI, quantum computing, and climate tech require specific managerial skills. Senior executives must navigate a complex landscape of interconnected disruptions, including technological advancements and environmental challenges. Leaders must differentiate trends from fads and develop strategies to manage disruptions effectively. Key emerging technologies in 2024 include generative AI, quantum computing, and climate tech.

Source: https://www.bain.com/insights/taking-globally-orchestrated-approach-to-digital-disruption/

McKinsey technology trends outlook 2024

The report covers 15 key trends, including the importance of digital trust and cybersecurity, which are now more critical than ever in our rapidly evolving technology landscape. The future of robotics is also highlighted, showcasing the innovative ways AI and robotics are revolutionizing industries and reshaping the workforce. To provide a comprehensive overview, McKinsey conducted a survey to gauge the adoption levels of these trends.

Source: https://www.mckinsey.com/capabilities/mckinsey-digital/our-insights/the-top-trends-in-tech

Feel good Sunday: Discover the key to a longer life – social connections

Ever wondered why the people of Sardinia live longer than most? It’s not just their Mediterranean diet or sunny weather. Psychologist Susan Pinker reveals that the secret to their longevity lies in their strong social bonds and in-person interactions. Dive into the world of super-agers and learn how meaningful relationships can lead to a longer, healthier life.

Watch Susan Pinker’s enlightening TED Talk to uncover the power of human connection in promoting longevity.

https://www.ted.com/talks/susan_pinker_the_secret_to_living_longer_may_be_your_social_life

Curious Saturday: How to use venture capital for good

Meet Freada Kapor Klein, a venture capitalist who is breaking the mold by prioritizing investments that address social inequalities. Learn how her firm is supporting entrepreneurs and startups that are tackling pressing issues and creating tangible change in underserved communities.

Watch her inspiring TED Talk to find out more about the transformative power of venture capital when used for good: https://www.ted.com/talks/freada_kapor_klein_how_to_use_venture_capital_for_good

Three keys to faster, better decisions

Want to make faster, better decisions? Here are three key strategies to help you out:

1. Big-bet decisions are those high-stakes choices that can shape the future of your company. These are typically made by the top team and the board.
2. Cross-cutting decisions, which can also be risky, happen often and require collaboration across different functions. These decisions are usually made in group settings.
3. Delegated decisions are the smaller, low-risk choices that can be handled by individuals or small teams with minimal input from others.

By understanding these different decision categories and implementing the right practices for each, you can improve the quality and speed of your decision-making process.

Source: https://www.mckinsey.com/capabilities/people-and-organizational-performance/our-insights/three-keys-to-faster-better-decisions/

Loquat’s cloud banking software allows financial institutions to adopt modern technology while maintaining control over data, security, and performance.

Can America afford its debts?

According to recent IMF data, the U.S. ranks 8th in the world for its net public debt-to-GDP ratio. Since 1990, U.S. net government debt as a percentage of GDP has surged from 40% to 98%. While past debt spikes were linked to crises like the 2007-2008 financial crash and the 2020 pandemic, the debt-to-GDP ratio stabilized in-line with other G7 countries in between. However, the IMF now forecasts a continued rise in America’s debt burden.

Source: https://www.economist.com/graphic-detail/2024/07/19/can-america-afford-its-debts

Cybersecurity questions every CEO must answer

Addressing cybersecurity concerns is imperative for CEOs in today’s business landscape. With regulatory scrutiny on the rise and the potential financial repercussions of data breaches, CEOs must be prepared to address cybersecurity incidents promptly and transparently. It is essential for CEOs to make security a top priority when implementing new IT systems and technologies. Evaluating the organization’s readiness, culture, and investments in cybersecurity is key to effectively managing and mitigating cyber risks.

Source: https://www.bcg.com/publications/2024/the-cybersecure-ceo

Exciting insights from Bain & Company’s M&A midyear report 2024

Global M&A deal value is up 21% year-to-date and on track to end close to 2023 levels. Companies are adapting dealmaking strategies to the economic environment with a focus on cost synergies. Strategic M&A remains steady, with deal value expected to surpass last year. The energy sector is seeing significant activity, while the tech sector continues to thrive.

Source: https://www.bain.com/insights/m-and-a-midyear-report-2024-dealmakers-mine-multiple-sources-of-value

Feel good Sunday: The secret to a happy life

Remember, it’s not about the quantity of relationships but the quality of them that truly matters. Take the time to nurture and appreciate the people who bring positivity and support into your life. As Robert Waldinger suggests, prioritize those connections that make you feel valued and accepted. By fostering these meaningful relationships, you can cultivate a sense of fulfillment and happiness that will enrich your life in countless ways. So, this Sunday, why not reach out to a loved one or friend and let them know how much they mean to you? Share a moment of connection and gratitude, and watch as your bond grows stronger and your heart feels lighter.

Check it out here: https://www.ted.com/talks/robert_waldinger_the_secret_to_a_happy_life_lessons_from_8_decades_of_research

Curious Saturday: Quantum computers aren’t what you think — they’re cooler

Dive into the world of quantum computers with Hartmut Neven, the mastermind behind Google Quantum AI. Discover how these cutting-edge machines harness the power of parallel universes to revolutionize computing as we know it. Quantum computers operate on a whole new level, leveraging the laws of quantum physics to outperform traditional binary systems.

Join Hartmut Neven as he unveils the potential of quantum computing to tackle complex challenges in medicine, energy, AI, neuroscience, and beyond. Don’t miss out on this mind-bending journey into the future of technology. Watch the TED Talk now and prepare to be amazed by the limitless possibilities of quantum computing.

https://www.ted.com/talks/hartmut_neven_quantum_computers_aren_t_what_you_think_they_re_cooler

Building resilient IT systems: Lessons from the CrowdStrike IT outage

The developing global IT outage, triggered by a faulty update from CrowdStrike and compounded by issues with Microsoft’s Azure services, has revealed significant vulnerabilities in IT infrastructure. This incident affected multiple sectors, including airlines, hospitals, and retailers, offering vital lessons for CIOs on improving IT resilience and update management.

Source: https://www.lightedge.com/blog/resources/lessons-from-the-crowdstrike-it-outage/

Accelerate the growth of your small business with Loquat’s fully digital account opening solution

Embedded finance to become pervasive by 2030

According to a recent BCG report, the embedded finance market is projected to reach a whopping $320 billion by 2030 representing a major theme shaping the fintech sector. What’s even more interesting is how this growth will be distributed across different segments. The small and medium-size business (SMB) sector is set to dominate, accounting for a significant $150 billion of the market while the consumer segment, which is already bustling with activity in areas like payments, lending, and insurance, is expected to generate $120 billion in revenue by the end of the decade. And let’s not forget about the enterprise segment, which is forecasted to hit $50 billion in revenue.

With such promising numbers, it’s clear that embedded finance is poised to revolutionize the financial services industry in the coming years.

Source: https://www.bcg.com/publications/2024/global-fintech-prudence-profits-and-growth

CFOs: Don’t let your finance transformation project drag on

Did you know that a whopping 70% of finance #transformation projects tend to move slower than anticipated? If you’re a CFO looking to speed things up, here are three key factors to pay attention to in order to overcome obstacles and make significant progress in your transformation journey:

1. Unsystematic technology spending — Limited clarity on the most critical technology investments to make, particularly as technology options continue to proliferate and technology spend continues to accelerate
2. Limited representation of digital skills — A gap between finance’s ambitious digital transformation goals and the employees capable of delivering on them
3. Inefficient division of labor within finance — Work duplication as well as unclear and outdated role

Source: https://www.gartner.com/en/finance/cfo-report

Is your company ready to harness its superpower?

Building a distinctive capability can set your business apart from the competition and drive performance to new heights. But creating this kind of advantage requires a strategic approach that encompasses six elements: vision, employees, culture, technology, organizational structure, and routines. By focusing on these key elements, your company can develop a superpower that propels it to success. Learn more about how to build a superpower and gain insights from the Magnificent Seven.

Source: https://www.mckinsey.com/capabilities/growth-marketing-and-sales/our-insights/building-a-superpower-what-can-we-learn-from-the-magnificent-seven

Feel good Sunday: How to bridge the political divide with these 3 simple tips🌟

Journalist Isaac Saul shares his insights on effective communication in polarized times. Watch his TED Talk for valuable strategies on engaging with those who have different political views. Don’t miss out on this eye-opening discussion! 🗣️

Link: https://www.ted.com/talks/isaac_saul_3_ideas_for_communicating_across_the_political_divide

Curious Saturday: How to make friends as an adult

Let’s dive into the intriguing topic of making new friends as an adult. It can be quite a puzzle, right? Why is it so much simpler when we were kids?

Psychologist Marisa Franco sheds light on some proven strategies for forming and maintaining friendships.

Discover the “acceptance prophecy” and the “theory of chums” – two powerful concepts that can boost your social connections. Embrace the beauty of platonic love and how it can enrich your life in unexpected ways. If you’re ready to unlock the potential of meaningful relationships, this talk is for you.

Check it out here: https://www.ted.com/talks/marisa_g_franco_the_secret_to_making_new_friends_as_an_adult

Marketing insights for 2024: Navigating the era of less

In 2024, marketers are facing a challenging landscape with budgets shrinking by an average of 15%. This shift towards a “era of less” is forcing marketing teams to find more strategic and cost-effective ways to reach their target audience. According to Gartner, paid media continues to be the largest share of marketing budgets, highlighting the importance of optimizing advertising spend for maximum impact.

https://www.gartner.com/en/marketing/topics/marketing-budget

Finance 2030: Four key priorities for the upcoming decade

In the last ten years, finance departments successfully cut costs by nearly 30%. Now, the challenge is to maintain and even surpass this level of efficiency.

To achieve the next level of finance effectiveness, leaders must shift their focus and embrace new strategies. Four key actions are essential for providing faster insights, reducing errors, and speeding up decision-making processes.

Check out the link below for more details on how finance can prepare for the challenges of the next decade: https://www.mckinsey.com/capabilities/operations/our-insights/finance-2030-four-imperatives-for-the-next-decade

Innovate to increase financial inclusion

Despite progress, a large portion of the global population lacks access to essential financial services. The World Bank reports that 25% of adults are #unbanked and 50% are underbanked. This limits access to credit and forces reliance on cash transactions.

https://www.bcg.com/publications/2024/to-expand-financial-inclusion-embrace-innovation

Loquat Inc. welcomes Chris Cochran and Rogelio Sanchez to Drive Product Delivery, Revenue and Customer Success

Loquat Inc., an innovative financial technology company, today proudly announced the addition of two key leaders to its executive team. Chris Cochran has been appointed as the Chief Product Delivery Officer, and Rogelio Sanchez takes the role of Chief Revenue & Customer Success Officer.

Please read the full Press Release https://loquatinc.io/news/loquat-inc-welcomes-chris-cochran-and-rogelio-sanchez-to-drive-product-delivery-revenue-and-customer-success/

Will Nvidia continue to be a key player in the evolving AI economy?

The success of Nvidia is emblematic of the rapid growth and allure of the AI sector, capturing the attention of investors and sparking speculation about its future trajectory. The company’s journey ahead is poised to shape the course of the AI economy, reflecting its own path of growth and evolution.

The remarkable ascent of Nvidia, once a relatively unknown entity outside of tech circles, mirrors the fervor surrounding AI in both Silicon Valley and Wall Street. However, its brief stint as the third most valuable company highlights the intense competition within this burgeoning tech landscape.

For the complete article, visit: https://on.ft.com/3VCbNpV

Feel good Sunday: Dance your way into the world of AI robots

Step right up and witness the mesmerizing world of dancing robots, as robot choreographer Catie Cuan delves into the importance of infusing machines with elegance, purpose, and emotion. She sheds light on the significance of teaching robots to move gracefully, as it plays a crucial role in shaping the future of AI-powered beings that we will embrace in our everyday lives.

With the imminent arrival of versatile robots, we are poised to tackle significant societal challenges such as an aging population and a shortage of labor. The way these robots move will determine whether we open our doors to them, welcoming them into our homes and workplaces. As we navigate an increasingly AI-driven world, it is vital that we retain our humanity and control the narrative of the future. Let’s choreograph a future where humans and robots coexist harmoniously.

https://www.ted.com/talks/catie_cuan_next_up_for_ai_dancing_robots

Curious Saturday: Inner space exploration – Let’s bring microrobots inside the human body

Join us as we delve into the concept of swallowing micro-robots for medical purposes. Witness the innovative demonstration by physician Vivek Kumbhari as he guides the Pillbot, a wireless robot swallowed by engineer Alex Luebke. This cutting-edge technology offers a non-invasive and cost-effective way to visualize internal organs, potentially revolutionizing medical imaging.

The possibilities are endless as we envision a #future where microrobots provide valuable insights into our health and well-being. It’s a journey worth embarking on, and we invite you to be part of this groundbreaking exploration. Let’s embrace the unknown and venture into uncharted territories within the human body.

For more information, check out the TED talk here: https://www.ted.com/talks/alex_luebke_vivek_kumbhari_how_you_could_see_inside_your_body_with_a_micro_robot

Solar power is going to be huge

Solar power is on the rise and expanding rapidly around the world. In 2023, the global production of solar cells reached a staggering 70 billion units, with the majority being manufactured in China. These solar cells are then assembled into panels and used to generate electricity for various purposes, from residential homes to large industrial facilities.

Despite covering less than 10,000 square kilometers, solar panels produced over 1,600 terawatt-hours of energy in 2023, accounting for 6% of global electricity generation. This may seem like a small percentage, but when compared to the inefficiency of fossil fuels, which waste more than half of their energy as heat, solar power becomes a much more attractive option.

With its quiet operation, zero emissions, and minimal maintenance costs, solar power is revolutionizing the way we generate electricity. It may not be flashy, but its impact is undeniable.

Source: https://www.economist.com/interactive/essay/2024/06/20/solar-power-is-going-to-be-huge

Loquat Inc. welcomes David Cramer as Strategic Advisor to its leadership team

In his role as Advisor, David Cramer will focus on growth and building strategic partnerships with financial institutions. He brings a wealth of knowledge particularly in developing payment products and driving sales strategies that have bolstered financial institutions.

With a distinguished career spanning over 30 years in the payments industry, David has held various leadership positions at Citicorp, GE Capital, JPMorgan Chase, and spent over 18 years at Visa, Inc. His deep expertise in commercial product development and financial institution sales across North America has made him a prominent figure in the field, especially in facilitating growth for SMBs and strengthening banking solutions for Credit Unions and Community Banks.

Please read the full Press Release on our website https://loquatinc.io/news/loquat-inc-welcomes-david-cramer-as-strategic-advisor-to-its-leadership-team/

Crafting a value-boosting AI strategy for your business

Suddenly intrigued by the potential of Generative AI (GenAI), executives are eager to incorporate it into their business operations. However, to fully leverage its benefits while minimizing risks, a well-rounded and practical AI strategy is essential.

To create a successful GenAI strategy, focus on the following key elements and utilize the GenAI planning workbook to:

• Establish clear GenAI goals, benefits, and success metrics
• Align your GenAI vision with tangible business outcomes
• Identify and address potential AI-related risks
• Prioritize GenAI projects based on strategic importance

Research from Gartner indicates that organizations where the AI team actively participates in defining success metrics are 50% more likely to strategically implement AI. When selecting metrics, input from various stakeholders such as data managers, business analysts, domain experts, risk management professionals, data scientists, and IT leaders is crucial.

Link to article: https://www.gartner.com/en/articles/how-your-ceo-is-thinking-about-ai

America First Credit Union selects Loquat Inc. for small business account onboarding

Please read the full Press Release on our website: https://loquatinc.io/news/america-first-credit-union-partners-with-loquat-inc-for-small-business-account-onboarding/

Tech services and Generative AI: Are you ready for the future of IT?

The rise of generative AI is shaking up the tech industry, presenting both challenges and opportunities for IT service providers. Traditionally, these providers have been the go-to for businesses seeking help with their complex technology needs.

However, as more companies invest in gen AI to streamline their IT management, service providers are left wondering about their future role in the market. With the landscape rapidly evolving, it’s crucial for providers to adapt and reinvent themselves to stay relevant and competitive. This shift towards gen AI opens up a whole new market for tech services, but it also requires providers to rethink their strategies and offerings. The key to success lies in welcoming this change and finding innovative ways to leverage generative AI to meet the evolving needs of their clients.

https://www.mckinsey.com/industries/technology-media-and-telecommunications/our-insights/tech-services-and-generative-ai-plotting-the-necessary-reinvention

Feel good Sunday: sometimes new ideas come to life just because they’re FUN!

Ever wondered how some of the most groundbreaking ideas and technologies came to be? It turns out, they weren’t born out of necessity, but rather from the sheer joy of play. Who would have thought that the future lies in the realm of fun and games?

Discover the playful wonderland behind great inventions and be inspired by the power of creativity and imagination. Check out the TED Talk here: https://www.ted.com/talks/steven_johnson_the_playful_wonderland_behind_great_inventions

Curious Saturday: Dive into the fascinating world of mind-reading technology

Modern technology lets neuroscientists peer into the human brain, but can it also read minds? Armed with the device known as an electroencephalogram, or EEG, and some computing wizardry, our intrepid neuroscientists attempt to peer into a subject’s thoughts.

https://www.ted.com/talks/greg_gage_this_computer_is_learning_to_read_your_mind

Ethical hackers on a mission: Exposing vulnerabilities in top AI models from tech giants like OpenAI and Google

Hackers are actively engaged in probing the vulnerabilities of cutting-edge AI models developed by industry giants like OpenAI, Google, and xAI. These hackers, often referred to as “white hat” hackers, are dedicated to identifying potential security loopholes in these advanced AI systems.

By pushing the boundaries of these models, they are able to circumvent the security protocols put in place by companies to safeguard their products. The risks uncovered by these hackers include the potential for generating harmful content, spreading misinformation, leaking sensitive data, and even creating malicious code. This concerted global effort by ethical hackers is crucial in ensuring that these powerful AI models remain secure and trustworthy for widespread use in various applications.

https://on.ft.com/3zfaQwr

Happy Independence Day!

How AI will transform the physical world

The future looks bright as AI continues to revolutionize various industries such as energy, manufacturing, and medicine. According to the renowned futurist, the impact of AI will be profound and far-reaching. It is predicted that by the time today’s children reach kindergarten, artificial intelligence will have surpassed humans in all cognitive tasks, from scientific endeavors to creative pursuits.

Despite initial skepticism, recent advancements in AI technology have accelerated the timeline for achieving artificial general intelligence (AGI). What was once considered a distant possibility is now on the horizon, with experts suggesting that AGI could be a reality even sooner than originally anticipated. The rapid pace of innovation in AI is reshaping the physical world in ways we never imagined possible.

Source: The Economist
https://www.economist.com/by-invitation/2024/06/17/ray-kurzweil-on-how-ai-will-transform-the-physical-world

4Q23 Tech Recap: Navigating Uncertain Waters

The tech industry saw a mixed bag of results in the final quarter of 2023, leaving many unsure about what lies ahead in 2024. With the emergence of generative AI and the challenge of reigniting demand, tech leaders are facing a tricky road ahead.

The cautious sentiment stemming from the 4Q23 numbers has left many feeling uncertain about the future demand for technology in the coming year. Tech leaders are approaching the situation with a sense of caution, opting to carefully manage costs while keeping an eye on market trends.

While interest in generative AI remains strong, the focus is shifting towards practical applications rather than just hype. Reigniting demand will be a key priority for 2024, requiring a strategic approach to tap into new markets beyond the existing customer base.

https://www.gartner.com/en/doc/807795-high-tech-4q23-roundup-reigniting-demand-in-a-skeptical-market

The advancement of technology is pushing organizations to upskill their workforce in risk management.

Analytical AI, the stepping stone to gen AI, is honing in on data privacy and fairness. Ensuring that data is handled ethically and equitably is a top priority. The spotlight is on addressing biases in AI models, especially those leading to discriminatory outcomes in areas like housing and finance.

The demand for transparency in AI systems is growing as concerns over potential misuse, such as deepfakes, continue to rise. Governments are grappling with the challenge of safeguarding against the reputational risks tied to the misuse of gen AI technology.

Source: https://www.mckinsey.com/capabilities/strategy-and-corporate-finance/our-insights/managing-the-risks-around-generative-ai

12 predictions for the future of technology

Get ready for the future of technology with these 12 bold predictions from venture capitalist Vinod Khosla. From personalized healthcare solutions to pedestrian-friendly cities, Khosla paints a picture of a world where innovation reigns supreme. Imagine traveling at supersonic speeds and connecting with people worldwide like never before. His TED talk will challenge your thinking and inspire you to embrace the power of technology for a brighter tomorrow. Don’t miss out on these game-changing insights that could shape the world we live in. Watch now and join the conversation on the future of technology.

https://www.ted.com/talks/vinod_khosla_12_predictions_for_the_future_of_technology

Master the art of persuasive speaking: Avoid these 7 deadly sins!

Tired of feeling like no one is listening when you speak? Sound expert Julian Treasure has the solution. Learn vocal exercises and empathy tips to captivate your audience in this insightful talk. Discover how to speak powerfully and make the world a more beautiful place.

Julian Treasure reveals the seven deadly sins of speaking, including gossip, negativity, and dogmatism. By avoiding these pitfalls and embracing positivity, you can communicate effectively and connect with others on a deeper level. Don’t miss out on the secrets to becoming a persuasive speaker!

Watch the talk here: https://www.ted.com/talks/julian_treasure_how_to_speak_so_that_people_want_to_listen

Apple’s AI mystery: Failing to wow with Apple intelligence

Apple’s latest foray into the world of artificial intelligence has left many scratching their heads. In the past, Apple was the go-to for innovative technology that seamlessly integrated into our lives. However, their recent unveiling of Apple Intelligence fell short of expectations. The demonstration lacked the originality and polish we have come to expect from the tech giant.

It seems that Apple may have missed the mark in harnessing the full potential of generative AI. While the unveiling may have allayed fears of Apple falling behind in the AI race, it raises questions about who will truly shape the future of this technology. Apple’s attempt to put its own stamp on AI may have missed the mark, leaving us wondering what comes next in the world of artificial intelligence.

Source: Read the full article at: https://on.ft.com/4cmvA3s

Quote of the week

Is global GDP $7trn bigger than everyone thought?

Discovering nearly $7 trillion in additional global GDP is like stumbling upon a hidden treasure trove. The World Bank’s recent findings reveal a significant boost to the global economy, equivalent to the combined economies of France and Mexico. This unexpected windfall can be likened to a valuable discount voucher, offering a 4% reduction in the cost of goods and services worldwide.

Despite this newfound economic wealth, China’s GDP per capita remains unremarkable, falling below the global average. With a high savings rate and relatively low consumer spending, China lags behind countries like South Africa and Peru in individual consumption. It’s akin to finding spare change in your couch cushions but failing to put it to good use.

Source: https://www.economist.com/finance-and-economics/2024/06/06/why-global-gdp-might-be-7trn-bigger-than-everyone-thought

AI adoption skyrockets in 2024: Gen AI technology takes center stage

AI adoption has surged in 2024, with organizations now reaping the benefits of gen AI technology. According to the latest McKinsey Global Survey, 65% of respondents are actively using gen AI, a significant increase from previous surveys. The optimism surrounding gen AI’s potential impact remains high, with three-quarters of respondents anticipating significant industry disruptions in the near future. This rapid adoption and positive outlook signal a promising future for gen AI and its transformative capabilities. Source: McKinsey Global Survey on AI.

https://www.mckinsey.com/capabilities/quantumblack/our-insights/the-state-of-ai

Credit Unions: Thriving with boomers, but what about Gen Z? Key insights for success

Credit unions have been thriving lately, thanks to their large population of baby boomer members who are either retired or getting ready to retire. The 2023 Consumer Financial Life Survey by McKinsey shed light on some key insights that credit unions should take note of. It revealed that credit unions are losing ground with younger generations, but there are opportunities to better engage with them. On a positive note, credit union members have a more positive perception of their relationship compared to bank customers.

It’s crucial for credit unions to adapt to the changing financial landscape to remain relevant.

Source: https://www.mckinsey.com/industries/financial-services/our-insights/six-imperatives-for-credit-unions-to-secure-their-future

Feel good Sunday: Picture a perfect society. What does it look like?

Join us for a thought-provoking discussion on envisioning an ideal society. Imagine a diverse group of individuals coming together to create a fair and just community. Through a fascinating thought experiment, we explore the concept of designing a society while being unaware of our own personal characteristics. Can we create a society where everyone is given equal opportunities and resources? Joseph Lacey delves into John Rawls’ intriguing ideas in this enlightening talk.

Watch the talk here: https://www.ted.com/talks/joseph_lacey_picture_a_perfect_society_what_does_it_look_like

Curious Saturday: Are we celebrating the wrong leaders?

Instead of glorifying leaders who excel in crisis management, let’s explore the often overlooked greatness of those who prevent crises altogether. Historian Martin Gutmann will guide us through a thought-provoking discussion, using the adventurous yet calamity-prone explorer Ernest Shackleton as a case study.

Source: https://www.ted.com/talks/martin_gutmann_are_we_celebrating_the_wrong_leaders

Microsoft’s emissions skyrocket by 30% in AI race

Microsoft is facing a significant increase in emissions, up almost 30% since 2020, as it rushes to meet the growing demand for artificial intelligence. This surge in emissions highlights the challenges the tech giant faces in balancing its climate goals with the need to invest in infrastructure.

The spike in emissions is primarily attributed to the construction of data centers that support AI and cloud computing systems, according to Microsoft’s latest sustainability report. The company acknowledges that its unique position as a leading cloud provider expanding its data centers contributes to these challenges.

In a competitive race with rivals like Amazon and Google, Microsoft is investing heavily in expanding its infrastructure to support generative AI. The company has poured billions into OpenAI, the creator of ChatGPT, and is also developing its own AI tools to stay ahead in the game.

Source: https://on.ft.com/3QOOEix

Quote of the week

Diego Maradona’s Llegacy: Valuable lessons for central bankers

In 2005, Mervyn King, the former governor of the Bank of England, introduced his “Maradona theory of interestrates.” He compared the legendary footballer’s performance in the 1986 World Cup to how central bankers should handle monetary policy. King highlighted Maradona’s ability to outmaneuver opponents and score goals with minimal effort by cleverly guiding their expectations.

Today, as the Federal Reserve has raised its policy rate significantly, central bankers have more flexibility. However, investors remain highly influenced by forward guidance rather than actual policy rates, much like defenders facing Maradona on the field.

The key takeaway from Maradona’s tactics is that effective communication and strategic planning can help central bankers achieve their goals without drastic policy changes. This enduring lesson from the football pitch can be applied to the world of finance with great success.

Source:
https://www.economist.com/finance-and-economics/2024/05/16/diego-maradona-offers-central-bankers-enduring-lessons

Foundation Models: Google’s Gemini leads the way for AI innovation

Foundation models are the driving force behind many of today’s powerful AI systems. Google recently revealed that all of its products with over 2 billion users now rely on the Gemini model. The 2024 AI Index report highlights the significant investments made by developers in creating their flagship models. With the increasing importance of this technology, there is a growing demand for transparency. Various governments, including the US, EU, China, Canada, and G7, have taken steps to enhance transparency around foundation models. Today, the Republic of Korea and the UK are hosting a meeting of world leaders to address these issues.

The Foundation Model Transparency Index (FMTI) was introduced in October 2023 to assess major foundation model developers like OpenAI and Meta based on their public disclosures. The October 2023 Index evaluated transparency across various indicators such as data, labor, compute, capabilities, limitations, risks, usage policies, and downstream impact. The results revealed a lack of transparency in the ecosystem, with developers averaging a score of only 37 out of 100.

Source: https://crfm.stanford.edu/2024/05/21/fmti-may-2024.html

Cyber-attacks: Not as costly as you think

Surprisingly, the economic impact of cyber-attacks may not be as catastrophic as initially predicted. Despite warnings of skyrocketing costs, recent data suggests a more nuanced perspective. According to Tom Johansmeyer, a cybersecurity expert, the actual financial toll of cyber incidents may not be as drastic as feared.

In a case study of the NotPetya attack in 2017, which caused over $10 billion in damages, Johansmeyer’s analysis challenges the prevailing narrative of escalating cybercrime costs. While the threat of cyber-attacks remains a concern, the notion of a $23 trillion global cost by 2027 may be exaggerated.

Recent trends indicate a potential shift in the cybersecurity landscape, with the actual impact of cyber-attacks showing signs of stabilization or even decline. Despite the increasing frequency of cyber incidents, the economic repercussions may not be as dire as previously anticipated.

Source: https://www.economist.com/graphic-detail/2024/05/17/unexpectedly-the-cost-of-big-cyber-attacks-is-falling

Discover the wonders of spatial intelligence in AI

Join Fei-Fei Li as she delves into the groundbreaking world of spatial intelligence in  AI. Just like the moment when organisms first gained sight, machines are on the cusp of a revolutionary breakthrough. They will soon have the ability to process visual data, make accurate predictions, and take decisive action.

Imagine a future where AI can seamlessly interact with us in the real world, sparking endless possibilities for innovation and advancement. Don’t miss out on this game-changing TED Talk that explores the incredible potential of artificial intelligence.

Watch Fei-Fei Li’s TED Talk here: https://www.ted.com/talks/fei_fei_li_with_spatial_intelligence_ai_will_understand_the_real_world

How to link boredom with brilliance

Discover the hidden power of boredom in sparking your most innovative ideas. Have you ever noticed that your mind seems to wander and come up with brilliant solutions when you’re engaged in mundane tasks? This phenomenon occurs because when you allow yourself to be bored, your brain has the opportunity to make unexpected connections and think outside the box.

Check out the TED talk by Manoush Zomorodi to learn more about how boredom can lead to your most brilliant insights: https://www.ted.com/dubbing/manoush_zomorodi_how_boredom_can_lead_to_your_most_brilliant_ideas

More women on US company boards, but C-suite still a challenge

Recent data shows that while there has been an increase in the number of women serving on boards of US companies, the number of female executives has actually decreased for the first time in years. This highlights the ongoing struggle to achieve true diversity in corporate leadership in America.

The percentage of women serving on boards of Russell 3000 index companies has been steadily increasing, reaching 30% this year. However, the number of women in executive positions has seen a decline in 2023, marking the first drop since at least 2005. Additionally, the growth of women in senior management roles below the executive level has slowed down significantly.

Overall, progress is being made, but there is still work to be done to ensure equal representation in the highest levels of corporate leadership.

Read the full article at: https://on.ft.com/4bFKUrE

“Always remember that you are absolutely unique. Just like everyone else.”

Margaret Mead

Gen AI: The future is now!

Gen AI is really starting to make a name for itself. The technology behind gen AI has been in development for years, but it wasn’t until ChatGPT burst onto the scene in late 2022 that things really started to take off.

Since then, we’ve seen new and improved versions of gen AI popping up almost every week. Just in March 2023, there were six major updates, including new tools for customer relationship management and financial services. It’s exciting to see how quickly this technology is evolving and the potential it holds for the future.

Check out the link for more details: https://www.mckinsey.com/featured-insights/mckinsey-explainers/whats-the-future-of-generative-ai-an-early-view-in-15-charts

Forget macro and micro, it’s mesoeconomics that matters

Mesoeconomics is the new buzzword in the economic world, and it’s making a big impact. Instead of focusing solely on #macro and micro levels, understanding the intricacies of networks is key to truly understanding how the economy functions.

Thanks to Big Data, economists now have access to detailed information on business networks in real time. This allows for a more mathematical approach, using concepts from graph theory to analyze inter-firm relationships.

Gone are the days of economists making diagnoses based on surface-level observations. Now, they are delving deep into networks to uncover pricing pressures, innovation, and other key factors affecting the economy.

The Bank for International Settlements and the IMF are both exploring global value chains using mesoeconomics. Even the use of cloud computing by banks is being scrutinized through this lens, revealing new vulnerabilities and bottlenecks in the system.

Source: https://on.ft.com/44WVmsz

Tech titans’ spending spree: Are they going overboard?

Big tech companies are going all out with their spending spree on data centers, chips, and AI models, totaling a whopping $200 billion this year. This surge in capital expenditure, up 45% from last year, has raised concerns about irrational exuberance in the tech industry.

Wall Street is predicting that these companies could collectively spend $1 trillion over the next five years, leading to increased revenues but also higher costs. The risks of runaway spending, commodification of AI models, and diminishing returns on investment loom large. Investors are cautious, especially after seeing past extravagant projects from tech giants like Meta. Will ever-bigger models pass the bang-for-the-buck test?

Source: https://www.economist.com/leaders/2024/05/16/big-techs-capex-splurge-may-be-irrationally-exuberant

Feel good Sunday: Let’s spread the joy of giving

Picture a world where acts of kindness are like wildfire, spreading joy and changing lives. TED’s Chris Anderson shares inspiring stories that show the power of generosity in action. He challenges us to use the #internet to amplify our impact, making a difference in ways we never thought possible.

When you choose to be generous, you’ll find two incredible companions on your journey: meaning and happiness.

https://www.ted.com/dubbing/chris_anderson_it_s_time_for_infectious_generosity_here_s_how

Curious Saturday: Mastering the art of persuasive storytelling

According to communications expert Kelly D. Parker, storytelling is a potent tool for marketing and leadership. She emphasizes how stories can enhance the impact of proposals and offers insights on creating a compelling narrative to engage, influence, and inspire action.

Share your tales. Whether recounting your triumphs, setbacks, or life lessons, the stories you tell can create a connection and demonstrate empathy towards others’ experiences. By weaving your experiences into narratives, you can effectively convey your understanding of challenges and aspirations. This approach may not only win over audiences but also foster a sense of community and amusement.

https://www.ted.com/talks/kelly_d_parker_the_art_of_persuasive_storytelling

The true cost of a stolen phone – Time to increase your “cyber” hygiene

Phone theft is becoming a serious issue as #smartphones hold a treasure trove of personal information. Criminal organizations target smartphones for their valuable data, using sneaky tactics like “shoulder surfing” and covert filming to crack passcodes and access sensitive information.

Stolen phones are often sold on the black market, fueling a larger web of criminal activity. This not only leads to more thefts but also facilitates widespread financial fraud. It’s crucial for individuals to safeguard their phones and personal data to avoid falling prey to phone theft and its potential repercussions.

Improving your “cyber hygiene” is a key step in this direction. Research shows that many people use the same PIN for their phone, apps, services, and bank cards, making it a cakewalk for thieves. And storing multiple bank cards and your driver’s license in your phone case? That’s practically a gift to them.

Connecting the dots between these issues can help focus resources and efforts from tech, telecoms, and financial industries on combating phone theft. It’s time to raise awareness and take action against this growing problem.

https://www.ft.com/content/26be349d-4717-4815-a221-a749e29de2b2?shareType=nongift

Life is too short not to celebrate nice moments!

Insured Credit Unions see $108 Billion surge in assets

The most recent financial performance data released by the National Credit Union Administration shows a significant increase in total assets in federally insured credit unions. Over the past year, total assets rose by $108 billion to reach $2.17 trillion, marking a 5.2 percent increase. Insured shares and deposits also saw growth, increasing by $50 billion to $1.68 trillion.

On a national level, there was an overall increase in shares and deposits, although the median growth rate was negative at 3.5 percent. Some states, like Wyoming, Idaho, and New Hampshire, saw positive median growth rates in shares and deposits. However, states like New Jersey and West Virginia experienced the most significant declines in shares and deposits at -6.6 percent and -6.2 percent respectively.

Riding the wave: America’s unstoppable startup boom

The entrepreneurial spirit is alive and well in America, with a remarkable surge in startup activity taking place. Despite the challenges posed by the covid-19 pandemic, there has been a significant increase in applications to form new businesses. While some of these new ventures may have initially seemed opportunistic or unusual, the overall trend is clear: Americans are embracing entrepreneurship like never before.

In 2020, a record-breaking 5.5 million applications were submitted to start new businesses. Although the pace has slowed slightly, the numbers remain significantly higher than pre-pandemic levels. This surge in startup activity has led to a notable shift in job creation, with new businesses now outpacing established companies in job growth. This trend highlights the important role that startups play in driving economic growth and innovation in the United States.

https://www.economist.com/finance-and-economics/2024/05/12/america-is-in-the-midst-of-an-extraordinary-startup-boom

Amplify the power of LLMs with MAS

Discover the incredible potential of teaming up large language models (LLMs) with multi-agent systems (MAS). By combining the strengths of multiple AI models, these collaborative teams can tackle complex tasks with ease.

Researchers are paving the way for AI teams to work together, assign tasks, and solve problems autonomously, surpassing the capabilities of individual models. Not only do these teams demonstrate advanced reasoning and mathematical skills, but they also show promise in minimizing the spread of misinformation.

By harnessing the collective intelligence of these AI teams, we can break new ground and achieve feats previously thought impossible. Don’t miss out on the future of AI collaboration!

Source: https://www.economist.com/science-and-technology/2024/05/13/todays-ai-models-are-impressive-teams-of-them-will-be-formidable

Feel good Sunday: Dive into the power of your five senses

Neurobiologist Christi Gendron sheds light on how our five senses – sight, smell, hearing, taste, and touch – play a crucial role in determining our health and lifespan. By examining the effects of environmental stimuli on fruit flies, Gendron reveals how everyday sensory experiences can directly influence our ability to live a long and healthy life.

From temperature and light to the mere sight of death, our perceptions can have profound effects on our well-being. Don’t miss out on this intriguing exploration of the science behind lifespan and sensory perception.

Check out Christi Gendron’s enlightening talk now!
https://www.ted.com/talks/christi_gendron_the_science_of_lifespan_and_the_impact_of_your_five_senses

Curious Saturday: Step into the future with audio computers

Get ready to be amazed by the latest innovation in technology as designer Jason Rugolo introduces the revolutionary concept of audio computers. Imagine having a computer that responds to your voice, translates conversations instantly, and enhances the sounds around you.

This groundbreaking device is set to change the way we interact with technology. Be the first to witness this game-changing invention as Jason Rugolo unveils it on the TED stage for the very first time.

Jason Rugolo: https://www.ted.com/talks/jason_rugolo_welcome_to_the_world_of_audio_computers

TikTok is the new go-to for Gen-Z job hunters

Young professionals today have a different approach to job searching. They value a more friendly and supportive work environment, along with better perks and salaries. Instead of relying on traditional networking methods, many young Americans are turning to TikTok for career advice to help them kickstart their careers.

https://www.economist.com/business/2024/05/09/for-gen-z-job-seekers-tiktok-is-the-new-linkedin

Why spill the beans about our dreams when we can just flaunt them instead?

The Rise of the “Magnificent Seven”: Apple faces legal battle over smartphone monopoly

The Department of Justice and state attorneys are taking on Apple in a legal battle over its alleged monopolistic practices in the smartphone market. The lawsuit accuses Apple of stifling competition, hindering innovation, and discouraging users from choosing rival devices.

This latest case goes beyond just the smartphone market, highlighting various instances where Apple has supposedly hindered competitors to maintain its dominance. Examples include blocking super apps, restricting access to cloud-based gaming apps, and providing subpar service for rival gadgets like smartwatches.

As the tech industry continues to evolve, the dominance of big players like Apple may only increase, especially with the rise of generative AI. The top tech companies, known as the “Magnificent Seven,” have seen a significant increase in market value, thanks in part to the AI boom.

Source: The Economist https://www.economist.com/business/2024/03/22/the-department-of-justice-wages-war-on-apple

Is Europe’s economy up for the challenge of competing with the US once again?

The US economy has shown remarkable resilience in the face of recent shocks, bouncing back quicker and stronger than its European counterpart. By the first quarter of this year, US GDP had surged 8.7% above pre-pandemic levels, outpacing the Eurozone’s 3.4% increase by a significant margin.

Eurozone consumers continue to save at a rate of more than 14% of their income, well above historical averages. In contrast, American consumers have quickly spent the extra money they saved during the pandemic, bringing their savings rate down to less than 5%.

It’s clear that the US economy is forging ahead while Europe struggles to keep pace. Can Europe rise to the challenge and close the gap?

Read the full article at: https://on.ft.com/44GFla9

Personal funds and cash reserves are the first sources of funding for small businesses

Feel good Sunday: We need less “us vs. them”

Get ready for a feel-good Sunday with a powerful message: the world needs more builders and less division. Daniel Lubetzky, the founder of KIND Snacks, challenges the “us vs. them” mentality and introduces a new initiative to unite global builders in solving real-world problems. Join the movement to combat extremism and promote practical problem-solving.

Check out his inspiring TED Talk to learn more: https://www.ted.com/talks/daniel_lubetzky_why_the_world_needs_more_builders_and_less_us_vs_them

Curious Saturday: The fight for a human right for cognitive liberty

The world of neurotechnology offers a fascinating glimpse into the inner workings of our minds, providing valuable insights into our mental health. However, the potential misuse of our most intimate thoughts and emotions poses a significant threat, warns neurotech and AI expert Nita Farahany.

While she highlights the numerous benefits of brain-sensing devices in diagnosing and treating various conditions, she also raises important questions about the protection of our cognitive data and the implications of its use.

Farahany advocates for the establishment of “cognitive liberty” as a fundamental right as we navigate the complex intersection of our brains and technology.

Watch the thought-provoking talk here: https://www.ted.com/talks/nita_farahany_your_right_to_mental_privacy_in_the_age_of_brain_sensing_tech

Discover the hidden potential of midsize companies

While they may not grab the spotlight like their larger counterparts, midcap companies are the unsung heroes of the business world. With their revenue ranging from $200 million to $2 billion, these midsize firms are the backbone of many economies, employing over 40 percent of the global workforce and contributing significantly to GDP. In emerging markets, they are even more crucial, driving up to half of the national GDP and fueling economic growth.

To unlock the full power of midcap companies, here are six essential strategies:

1. Set ambitious goals to inspire your team
2. Invest in talent proactively
3. Foster a sense of ownership among leaders
4. Prioritize initiatives rigorously
5. Make decisions based on data and facts
6. Use analytics and AI to outpace larger competitors

Source: McKinsey & Company https://www.mckinsey.com/capabilities/transformation/our-insights/unleashing-the-power-of-midcap-companies

You’ll never know what you’re capable of until you take that first step

Small Business Advocacy Office 2023 report: state of capital formation

The Small Business Advocacy Office’s 2023 report gives us a detailed look at the current state of capital formation for small businesses in the U.S. By analyzing trends in #capital-raising and the impact of rules and regulations, this report provides a valuable resource for understanding how capital flows between #investors and small businesses.

The data presented in the report highlights both the successes and challenges that small businesses encounter when raising capital, helping us to identify areas where policy solutions may be needed. This information is based on public filings with the SEC and analysis from the SEC’s Division of Economic and Risk Analysis (DERA), as well as data and insights from third-party sources. It’s a comprehensive overview that sheds light on the complex landscape of small business financing.

Cyber risks are no longer just a distant concern – they’re hitting close to home for cyber leaders

Cyber risks have become a pressing issue for organizations worldwide, as cyber threats continue to evolve and become more sophisticated. Information security leaders are facing increasing pressure to protect their organizations from data breaches and cyber attacks.

The new US regulations on data breach disclosure are adding to this pressure, as companies are now required to promptly report any breaches to regulators and affected individuals. This means that information security chiefs must be even more vigilant in monitoring their networks and implementing robust cybersecurity measures to safeguard sensitive data. Failure to comply with these regulations can result in significant financial and reputational damage for organizations.

As cyber threats continue to grow in complexity and frequency, information security leaders must stay ahead of the curve to effectively protect their organizations from cyber risks.

https://www.ft.com/content/03c40983-6b27-4a11-81dd-e504ace65417

AI impersonations are on the rise in cyber attacks

Banks and financial institutions are closely monitoring for any suspicious activity involving AI impersonations. A recent cyber attack using sophisticated AI voice software has highlighted the risks faced by prominent individuals with easily accessible personal information online. Mark Read, CEO of WPP, fell victim to a #deepfake scam where criminals used a voice clone and public YouTube footage to arrange a video meeting with his executives. The scammers posed as someone interested in starting a new business, aiming to obtain personal information and money.

As technology continues to advance, the threat of AI impersonations looms large, underscoring the need for robust security measures and vigilance in the digital landscape.

https://www.ft.com/content/308c42af-2bf8-47e4-a360-517d5391b0b0

Feel good Sunday: Why do we tend to stick to our beliefs?

Are you more of a soldier, fiercely defending your stance, or a scout, driven by curiosity? Julia Galef delves into these mindsets and their impact on how we process information, with an intriguing historical anecdote from 19th-century France. When faced with challenges to your convictions, Galef prompts you to consider: “What do you truly desire? To protect your beliefs or to see the world with clarity?”

Don’t miss out on this talk by Julia Galef at TED.

https://www.ted.com/talks/julia_galef_why_you_think_you_re_right_even_if_you_re_wrong

Curious Saturday: What is an AI anyway?

Microsoft AI CEO Mustafa Suleyman, a key figure in AI development, will challenge our understanding of this groundbreaking technology. He presents a thought-provoking perspective on the future of AI, likening it to a new digital species that demands our attention. Don’t miss this enlightening talk, followed by a Q&A session with TED head Chris Anderson.

Check out the event details here: https://www.ted.com/talks/mustafa_suleyman_what_is_an_ai_anyway

AI isn’t the only one that hallucinates

We often hear about AI models creating false information. We cringe at the lawyer who unknowingly submitted a legal document with made-up cases generated by ChatGPT.

A colleague asked the chatbot for a chart on the training costs of AI models and was surprised to find that the priciest one listed didn’t even exist (unless the AI has some insider knowledge). Just like humans, these models can be unreliable, as many users quickly discover. The real question is: are machines easier to correct than us? Perhaps it’s simpler to fix code than rewire the human brain.

Read the full article at: https://on.ft.com/4d73bjj

Never say never

The future of the payments: Fraud protection takes the center stage

The payments industry is gearing up for a future filled with risks, regulatory challenges, and evolving global standards. As we enter a new era of disconnected payments, companies must adapt to meet rising customer expectations for convenience, affordability, and security. The role of risk management is expanding to not only protect against threats but also drive growth opportunities.

Fraud remains a pressing issue, with scams on the rise and consumers losing billions of dollars each year. To maintain payment system integrity and customer trust, companies must improve fraud detection and prevention while minimizing customer disruptions. By enhancing fraud protection measures, organizations can safeguard their reputation and ensure a seamless customer experience.

https://www.mckinsey.com/capabilities/risk-and-resilience/our-insights/the-future-of-the-payments-industry-how-managing-risk-can-drive-growth

Entrepreneurs: Still fighting for funding

Entrepreneurs are still struggling to secure the funding they need at every step of their business journey. Despite some progress in recognizing and overcoming obstacles to accessing capital, there is a long road ahead.

The power of pace in technology

In the fast-paced world of digital transformations, Erik Schmiegelow, CEO of Hivemind Technologies, emphasizes the need for quick and agile software delivery. Hivemind’s strategy involves releasing small updates regularly to validate assumptions and minimize risks.

During a conversation with McKinsey partner Thomas Delaet, Schmiegelow discusses the significance of speed in transformations, the advantages and disadvantages of public cloud services, and the impact of generative AI on developer efficiency. The key takeaway from their discussion is the crucial role that pace plays in successful technology initiatives.

Source: https://www.mckinsey.com/capabilities/mckinsey-digital/our-insights/the-power-of-pace-in-technology

Feel good Sunday: Navigating tough times – 3 secrets of resilient people

Resilience expert Lucy Hone reveals three key strategies to help you navigate through tough times with strength and grace.

Firstly, resilient people understand that setbacks are a natural part of life. They don’t welcome adversity, but they accept it as a universal experience. This mindset prevents them from feeling singled out when challenges arise.

Secondly, they have a knack for realistically assessing situations and focusing on what they can control. By accepting what they cannot change, they avoid getting stuck in unproductive patterns.

Lastly, resilient individuals evaluate their decisions to ensure they are moving forward, not holding themselves back. By incorporating these strategies into your life, you can build resilience and face adversity with confidence.

Check out Lucy Hone’s talk for more insights on resilience: https://www.ted.com/talks/lucy_hone_3_secrets_of_resilient_people

Curious Saturday: Learn HOW to rest!

Join us for an enlightening discussion on the importance of taking breaks for boosting productivity! Learn how incorporating periods of rest can actually enhance your creativity and effectiveness at work. Discover the benefits of alternating between focused work and deliberate rest to optimize your performance.

Explore strategies for creating a daily routine that allows for deep, distraction-free work sessions, followed by rejuvenating breaks. Give yourself permission to disconnect from emails and messages to fully concentrate on your tasks.

Don’t miss out on valuable insights from consultant Alex Soojung-Kim Pang on the power of rest in improving job performance and overall well-being. Tune in to his TED Talk for more inspiration: https://www.ted.com/talks/alex_soojung_kim_pang_how_rest_can_make_you_better_at_your_job

Let’s work smarter, not harder!

What does the chief AI officer actually do?

It’s fascinating to note that the number of companies appointing a chief AI officer has nearly tripled worldwide in the last five years, as reported by LinkedIn. Fawad Bajwa, AI lead at Russell Reynolds Associates, has witnessed a significant transformation in the industry since the inception of ChatGPT.

The importance of this role was further emphasized recently when the White House mandated federal agencies to have chief AI officers to ensure effective leadership and oversight of AI technology. However, the specific duties of this role are still evolving, and given the ever-changing landscape of job titles in the corporate world, its relevance may be temporary.

Chief AI officers are responsible for overseeing the implementation of AI and generative AI technologies in an organization, with a focus on enhancing operational efficiency, identifying new revenue opportunities, and addressing ethical and security concerns.

Read the full article at: https://on.ft.com/3vHbpxP

“A good sketch is better than a long speech…”

The skill of interpreting data visually has been around for ages. With the massive amounts of data being generated in our global #economy, the demand for top-notch visualization is on the rise. In 2008 alone, the “digital universe” grew by 487 exabytes, or 487 billion gigabytes, as reported by EMC. And they predict that in 2012, we will see five times more digital information than the previous year.

https://hbr.org/2009/12/swimming-in-data-three-benefit

Artificial Intelligence Index Report 2024: Top 10 takeaways:

1. AI beats humans on some tasks, but not on all
2. Industry continues to dominate frontier AI research
3. Frontier models get way more expensive
4. The United States leads China, the EU, and the U.K. as the leading source of top AI models
5. Robust and standardized evaluations for LLM responsibility are seriously lacking
6. Generative AI investment skyrockets. Despite a decline in overall AI private investment last year, funding for generative AI surged, nearly octupling from 2022 to reach $25.2 billion
7. The data is in: AI makes workers more productive and leads to higher quality work
8. Scientific progress accelerates even further, thanks to AI
9. The number of AI regulations in the United States sharply increases. The number of AI-related regulations in the U.S. has risen significantly in the past year and over the last five years
10. People across the globe are more cognizant of AI’s potential impact — and more nervous

https://www.ft.com/content/8af1f467-2953-4cbc-a336-4c92c92e6792

Upgrade your bank’s digital platform

In the fast-paced world of technology, customers are demanding more than just basic financial services. They crave interactive and convenient #experiences that can be accessed easily through various channels.

Banks need to step up their game by investing in a comprehensive digital platform to meet these evolving customer needs. This means streamlining processes, adopting open banking solutions, tailoring services to individual preferences, and harnessing the power of cloud computing for instant data analysis. Taking small steps towards modernization can help banks stay ahead of the curve and remain competitive in the digital age.

Fueling innovation: How start-ups are shaping America’s future

The data from the past decade reveals an interesting trend: the majority of venture capital funding has been concentrated in just three states – California, New York, and Massachusetts. Meanwhile, the other 47 states have been left to compete for the remaining 25 percent. However, there is a shift happening as 1,400 new regional venture firms have emerged in the last decade. This has resulted in a significant increase in venture capital investments in rising cities in the heart of the country.

This shift is promising, with success stories like Mailchimp in Atlanta, which was recently acquired for $12 billion, and Epic Systems in Madison, Wisconsin, a leading healthtech company. Additionally, companies like Carvana in Arizona, now valued at $8 billion, are making waves in their respective industries.

It’s worth noting that a growing number of disruptive companies are emerging outside of Silicon Valley, with two-thirds of the companies on CNBC’s “Disruptor 50” list coming from non-traditional tech hubs.

https://www.mckinsey.com/featured-insights/mckinsey-on-books/author-talks-steve-case-identifies-the-us-cities-driving-new-innovation-and-its-not-where-you-think

Feel good Sunday: The power of empowerment

In this vintage clip from 1972, the renowned psychiatrist and Holocaust survivor shares profound insights on the human quest for meaning and the transformative power of believing in others.

Frankl reminds us that when we see people for who they truly are and recognize their potential, we empower them to reach greater heights. It’s a reminder to approach others with compassion and optimism, knowing that our belief in them can be a catalyst for their growth and success.

Watch the full talk here:
https://www.ted.com/talks/viktor_frankl_why_believe_in_others

Curious Saturday: Want to succeed in business? Find a problem to solve

Anthony Tan — the CEO of Grab, Southeast Asia’s leading super-app — talks about launching a business that not only turns a profit but also helps people and the environment. In conversation with digital strategist Amane Dannouni, Tan discusses the design choices and tension points of running such a company and why it’s something every entrepreneur should consider doing.

https://www.ted.com/talks/anthony_tan_and_amane_dannouni_want_to_succeed_in_business_find_a_problem_to_solve

Every company is now an adtech powerhouse

It seems like every company is jumping on the adtech bandwagon these days. The largest bank in America, holding over $2.4 trillion in deposits, is now venturing into the world of ad sales. Introducing Chase Media Solutions, a new unit that will help brands target customers based on their spending habits. This move by the Wall Street giant is just the latest example of non-traditional players trying to monetize user data through advertising. Retailers like Walmart, Uber, and Marriott International have already dabbled in this digital ad frenzy.

Unlike typical retailers, who sell ads on various platforms, JPMorgan’s new advertising arm will focus on offering targeted discounts and deals to specific customer segments through the Chase Offers program. For instance, customers who frequently purchase baby products may receive diaper deals. Chase cardholders can view these offers on their app and choose to activate the ones that catch their eye. Rest assured, advertisers won’t have direct access to Chase customer data.

Read the full article at:
https://on.ft.com/49miWj9

Transformations: focus on problems, not tech

When embarking on digital and AI transformations, it is crucial to focus on identifying the root problems that need to be addressed, rather than getting caught up in the allure of new technologies. Successful transformations require a deep understanding of the issues at hand and a commitment to fostering a culture of continuous innovation within the organization.

Consider the perspective of control functions such as risk management, compliance, and regulation in this new landscape. With numerous small teams driving innovation, these functions must proactively assess and mitigate potential risks early on in the development process. By shifting their focus upstream and integrating risk management into the initial stages of project planning, they can ensure that critical considerations, such as data privacy, are addressed from the outset.

Ultimately, effective transformation requires a holistic approach that prioritizes problem-solving and risk management throughout the entire process.

https://www.mckinsey.com/capabilities/strategy-and-corporate-finance/our-insights/in-digital-and-ai-transformations-start-with-the-problem-not-the-technology

Boost small businesses and fuel innovation with Loquat!

Navigating the new era of volatility

We are now facing a unique era with its own set of challenges and opportunities. Post-globalization, capital rationalization, and technological advancements are reshaping the business landscape. The traditional strategies and intuitions that once guided leaders may no longer suffice in this rapidly changing environment.

Resilience is key to surviving and thriving in the face of unexpected shocks. Many companies are aware of the potential risks they face but fail to adequately prepare for them. In an era of volatility, investing in redundancy, alternative supply chains, and critical inventories is crucial for long-term success, even if it means sacrificing short-term efficiency.

It’s time for leaders to reevaluate their strategies and embrace a new mindset that prioritizes resilience and adaptability in the face of uncertainty.

Source: https://hbr.org/2024/03/how-to-succeed-in-an-era-of-volatility

Navigating the Cloud landscape

We find ourselves deep into the cloud era, with insights gathered from conversations with cloud leaders in established enterprises such as banks, insurance companies, and life sciences firms. These industries, unlike digital natives, face unique challenges in transitioning to the cloud.

While many have experimented with proofs of concept and initial use cases, they struggle to fully harness the cloud’s capabilities for their specific needs. The key lies in identifying where the true business value lies and building a solid foundation for automation.

Without a clear operating model in place, organizations risk inefficiencies and cost overruns due to cloud sprawl. The true benefits of the cloud emerge when businesses align their use cases with agile development practices, allowing for faster innovation and efficiency gains.

Source: https://www.mckinsey.com/capabilities/mckinsey-digital/our-insights/getting-ahead-in-the-cloud

Feel good Sunday: A comedian’s take on how to save democracy

Get ready for a dose of feel-good vibes this Sunday! Join comedian Jordan Klepper as he shares his unique perspective on saving democracy through the power of conversation. In his hilarious yet thought-provoking talk, Klepper challenges us to embrace the art of losing gracefully as a way to bridge the divide and foster understanding.

Don’t miss out on this engaging and inspiring TED talk that just might change the way you think about communication and democracy.

Check it out here:
https://www.ted.com/talks/jordan_klepper_a_comedian_s_take_on_how_to_save_democracy

Curious Saturday: How to spot a fake video

In his TED talk, computer scientist Supasorn Suwajanakorn reveals the process behind creating realistic fake videos using AI and 3D modeling.

In addition to discussing the ethical implications of fake videos, Suwajanakorn also touches on the potential societal impact of this technology. He emphasizes the need for individuals to be aware of the existence of fake videos and to develop critical thinking skills to discern between real and manipulated content. Suwajanakorn’s talk serves as a reminder of the importance of media literacy in the digital age, where the lines between reality and fiction can easily be blurred. By shedding light on the capabilities of AI and 3D modeling in creating fake videos, he encourages viewers to approach online content with a healthy dose of skepticism and to verify the authenticity of information before sharing it.

https://www.ted.com/talks/supasorn_suwajanakorn_fake_videos_of_real_people_and_how_to_spot_them

Get ready for the next wave of M&A deals

Global M&A activity surged in the fourth quarter of last year, with a 41% increase in value from the previous quarter. Companies across all regions are actively engaging in M&A deals to enhance or reshape their businesses. Leading CEOs are preparing their M&A teams and boards for future opportunities, focusing on acquisitions, divestitures, and partnerships to drive superior performance in deals.

https://www.mckinsey.com/capabilities/m-and-a/our-insights/top-m-and-a-trends-in-2024-blueprint-for-success-in-the-next-wave-of-deals

Don’t settle for mediocrity; strive for excellence

Small Business Index Q1 2024

Small businesses continue to cite inflation as their top challenge for the seventh consecutive quarter, with over half (52%) reporting it as their main issue. Professional services sector is the least likely to consider inflation costs as a major problem (37% vs. 54-61% for other sectors).

This trend differs from the previous quarter when professional services and manufacturing sectors were less likely to report inflation as a concern compared to the services industry.

https://www.uschamber.com/sbindex/quarterly-spotlight

How to define artificial general intelligence

THE IDEA of machines outsmarting humans has long been the subject of science fiction. Rapid improvements in artificial-intelligence (AI) programs over the past decade have led some experts to conclude that science fiction could soon become fact.

On March 19th Jensen Huang, the chief executive of Nvidia, the world’s biggest manufacturer of computer chips and its third most valuable publicly traded company, said he believed today’s models could advance to the point of so-called artificial general intelligence (AGI) within five years. What exactly is AGI—and how can we judge when it has arrived?

https://www.economist.com/the-economist-explains/2024/03/28/how-to-define-artificial-general-intelligence

FIs: How cloud platforms can help acquire and retain customers

Cloud platforms are changing the way financial institutions (FIs) operate, offering a range of benefits beyond just scalability. These platforms provide FIs with the ability to access advanced analytics and data insights, helping them better understand customer behavior and preferences. This data-driven approach enables FIs to personalize their offerings and marketing strategies, leading to improved #customer acquisition and retention rates.

Additionally, cloud platforms facilitate seamless integration with other technologies, such as artificial intelligence and machine learning, further enhancing the customer experience. By harnessing the power of cloud technology, FIs can stay ahead of the competition, drive innovation, and build stronger relationships with their customers.

Feel good Sunday: Richard St. John: Success is a continuous journey

https://www.ted.com/talks/richard_st_john_success_is_a_continuous_journey

Curious Saturday: Do we truly have control over our decisions?

Renowned behavioral economist Dan Ariely delves into the fascinating world of human behavior, using captivating visual illusions and groundbreaking research to challenge our assumptions about rational decision-making.

Contrary to popular belief, our choices are not always straightforward or logical. They are often influenced by a myriad of factors, making decision-making a complex and challenging process. Ariely’s work sheds light on the intricacies of our cognitive limitations and the impact they have on our everyday choices.

By understanding these limitations, we can strive to create a more informed and empowered society. Let’s explore the possibilities together and uncover the true nature of decision-making.

Don’t miss out on this thought-provoking talk by Dan Ariely: https://www.ted.com/talks/dan_ariely_are_we_in_control_of_our_own_decisions

Discover the concept of “time affluence”

Feeling overwhelmed by a never-ending to-do list? You’re not alone. Studies show that a staggering 80 percent of adults feel like they’re constantly running out of time. This time crunch is taking a toll on their happiness, health, and relationships.

Enter the concept of “time affluence.” It’s all about valuing your time as a precious resource and using it to prioritize what truly matters. By shifting your mindset and making time for things that bring you joy, you can boost your overall well-being.

So next time you feel like you’re racing against the clock, remember that time is your most valuable asset.

https://store.hbr.org/product/time-smart-tools-for-reclaiming-your-time-and-living-a-happier-life/10489

The “positive” formula

2024: Economic stagnation or productivity-driven abundance?

Business productivity boosts company performance, GDP growth, and living standards. Leaders who prioritize productivity can improve shareholder returns and achieve their corporate purpose.

Despite challenges, management teams have overcome obstacles by taking swift actions in uncertain times. By learning from past experiences and incentivizing effective behaviors, leaders can increase their chances of success in 2024 and beyond.

https://www.mckinsey.com/capabilities/strategy-and-corporate-finance/our-insights/2024-and-beyond-will-it-be-economic-stagnation-or-the-advent-of-productivity-driven-abundance

AI powered use cases in Financial services: customer help, pricing, cyber defence, crime detection

Financial services AI use cases are expanding rapidly, with applications in customer support, pricing strategies, cybersecurity, and crime detection. The changing landscape of finance, driven by shifting customer needs, competitive disruptions, cybersecurity risks, and regulatory pressures, is fueling the adoption of AI technologies.

Cybersecurity experts specializing in AI will play a crucial role in identifying and addressing security threats related to AI, protecting sensitive financial data, and ensuring the integrity of banking services. The future of AI in financial services holds the promise of boosting efficiency, security, and innovation throughout the industry.

LLMs and Financial Services Data

Historically, the key to building a successful financial services data company has been to extricate and analyze valuable but difficult-to-access resources like public filings, diligence materials, research reports, conference call notes, and news. Now, with the advent of large language models, such previously shackled information might soon be easily and widely available to everyone, ushering in a new LLM-powered era that could shift the financial services landscape

The rise of dominant market leaders Bloomberg, Morningstar, and Verisk has been characterized by a playbook centered around identifying large, fragmented pools of data and leveraging technology to provide valuable insights and solutions.

These companies have built category-defining businesses by capturing historical data, standardizing it, and offering it to customers in a simplified, accessible format that is enhanced by additional services and features that drive home defensibility. The advent of LLMs heralds a new era in data analytics and financial services. With the potential to unlock previously inaccessible data sources, LLMs may create opportunities for new players to emerge and disrupt the status quo by going upstream of these incumbents.

https://a16z.com/putting-data-in-a-corner-llms-and-financial-services-data/

Feel good Sunday: A fresh perspective on identity

How many times have you felt confined by having to squeeze your unique identity into a single box on a form? It’s a frustrating and outdated practice, especially for those of us with diverse backgrounds.

Olivia Vinckier challenges us to embrace the complexity of our identities, rather than trying to fit into narrow categories. Join us in exploring the colorful and expanding world of identity in this thought-provoking TED Talk.

Check it out here: https://www.ted.com/talks/olivia_vinckier_a_colorful_case_for_outside_the_box_thinking_on_identity

Curious Saturday: How coffee captivated humanity

Join Jonathan Morris on a fascinating journey through the history of coffee, from its humble beginnings as a goatherd’s accidental discovery to its widespread popularity as one of the world’s favorite beverages.

Discover how the Ottoman Empire introduced coffee to Europe and how Central London’s first coffeehouses became bustling hubs of social and intellectual activity in the 17th century. Despite King Charles II’s attempts to ban them, coffeehouses continued to thrive, fueling the exchange of ideas and stimulating conversation.

Learn how coffee became ingrained in our daily routines and why it remains a beloved pick-me-up for millions around the globe. Dive into the story of humanity’s love affair with coffee and uncover the secrets behind this energizing elixir.

https://www.ted.com/talks/jonathan_morris_how_humanity_got_hooked_on_coffee

Financial inclusion is the key to breaking the cycle of poverty and fueling economic prosperity

It is not just about providing the bare necessities; it’s about empowering individuals to lead successful and satisfying lives, equipped to make well-informed choices for themselves.

https://www.mckinsey.com/featured-insights/mckinsey-explainers/what-is-economic-inclusion

The EU is taking a tough stance on tech giants like Apple, Alphabet, and Meta

In order to ensure a level playing field in the digital market, the EU has launched new probes into these companies. The focus is on addressing issues such as restrictions on developers and biased search results.

These actions show that the EU is committed to regulating and holding tech giants accountable for their business practices.

Under the new legislation, companies will be required to allow app developers more freedom to promote their products and ensure fair treatment in search rankings.

The EU is particularly concerned about the practices of Apple and Alphabet, including restrictions on developers and biased search results.

The commission is also investigating Meta’s subscription model and its use of personal data for advertising purposes, to ensure compliance with regulations.

What does the future hold for customer care in 2024?

There is a shift happening in the way customer care is being handled. With Gen Z opting for phone calls, boomers embracing digital chat, and #AI technology reshaping contact centers, customer care leaders are facing a pivotal moment.

In this ever-evolving landscape, customer care organizations are struggling to adapt to the new skills required to provide top-notch service in a digitally-driven, AI-powered world. The aftermath of the COVID-19 pandemic has led to high staff turnover rates, leaving supervisors scrambling to train new hires while neglecting the development of their existing teams. The shift to hybrid and remote work arrangements has further complicated matters, with some agents and team leaders feeling isolated and lacking the guidance they need to succeed.

The future of customer care in 2024 is uncertain, but one thing is clear – change is inevitable.

https://www.mckinsey.com/capabilities/operations/our-insights/where-is-customer-care-in-2024

CIOs play a crucial role in keeping up with technology trends

Being able to quickly assess trends and explain their importance to the business is now a vital skill for CIOs.

It’s not always straightforward to decide whether to invest in a trend or not. Trends can be unpredictable, evolve over time, and their relevance to a specific business can change. CIOs need a clear set of guidelines to evaluate trends and decide how to engage with them: whether to be a pioneer, a fast follower, a slow adopter, or to stay out of it altogether.

Banks’ pushback against ‘Basel Endgame’

The pushback from US banks against the proposed stricter banking rules stems from concerns about the potential impact on their operations and profitability.

The proposed regime, which is more stringent than the globally agreed standard, could require banks to hold more capital to cover their risks, potentially reducing their ability to lend and generate returns for shareholders.

The debate over risk-weighted assets (RWA) is at the center of the regulatory battle, with regulators and banks grappling over how to accurately assess the riskiness of banks’ assets. The calculation of RWAs plays a crucial role in determining banks’ capital requirements and overall financial health.

The ongoing disagreement reflects broader tensions between #regulators seeking to strengthen the financial system and banks looking to maintain profitability and competitiveness in a challenging market environment. The outcome of this regulatory clash will have significant implications for the banking industry and the broader economy.

https://www.ft.com/content/48555d55-ca6d-4ab8-ae29-aba4d4f10f13

Feel good Sunday: Simplify your writing

Jim VandeHei, a co-founder of Politico and Axios, discusses the importance of concise writing in a digital age where attention spans are short.

In his TED Talk, he shares insights on how to effectively communicate by saying more with fewer words. By rethinking our approach to writing and focusing on #clarity and conciseness, we can engage readers more effectively and convey our message more efficiently.

https://www.ted.com/talks/jim_vandehei_how_to_write_less_but_say_more

Curious Saturday: Daylight saving – are we actually saving?

It’s not just about losing or gaining an hour of sleep each year.

This biannual time change can have some serious consequences that go beyond just feeling a bit groggy. Sleep expert Matt Walker dives into the surprising effects of DST, revealing how it can affect everything from stroke and car accident rates to stock prices.

The numbers don’t lie – losing an hour of sleep in the spring can lead to a 24% increase in heart attacks, while gaining an hour in the fall results in a 21% decrease.

So next time DST rolls around, remember that it’s not just about adjusting your clocks – it’s about taking care of your health too.

Check out the full talk for more fascinating insights!

https://www.ted.com/talks/matt_walker_how_daylight_saving_time_affects_our_bodies_minds_and_world

Humans vs AI: New technologies indicate our ability to adapt, innovate, and create

The looming clash between humans and AI in the workforce is a hot topic these days. Generative AI is set to shake up the tasks that employees do, impacting a significant chunk of the US workforce. But, not everyone is buying into the whole “robots are taking over our jobs” narrative. Some experts argue that history shows us that new technologies don’t always spell doom and gloom for employment. They point to our knack for adapting, innovating, and creating new opportunities.

Employers are already feeling the pinch in finding skilled workers in today’s tight job market. And let’s not forget that while AI may disrupt some jobs, it’s also likely to create new ones. Just look at how many job categories have popped up in recent decades that didn’t even exist back in the day. So, before we start panicking about AI stealing all our jobs, maybe we should consider that we might actually be facing a shortage of workers instead.

Forget Ironman – Entrepreneurship is the ultimate endurance sport

Apple’s strategic stand on generative AI

Apple’s cautious approach to generative AI development is a strategic move that sets them apart from other tech companies. Unlike some competitors who are eager to dive headfirst into the world of AI, Apple is taking the time to carefully consider how best to integrate this technology into their products. Generative AI goes beyond just chatbots and has the potential to revolutionize the way we interact with technology.

Instead of relying on cloud computing like many other companies, Apple is focused on embedding generative AI directly into their devices. By investing in their own chip technology and prioritizing machine learning capabilities, Apple is positioning themselves as a leader in the AI space. While they may not be making flashy announcements about their progress, it’s clear that Apple is dedicated to getting generative AI right.

This strategic approach to AI development may give Apple the competitive edge they need in a rapidly evolving industry.

https://www.economist.com/business/2024/03/03/apple-is-right-not-to-rush-headlong-into-generative-ai

Rethinking the FDIC approach to bank rescues

The FDIC is required by law to sell failed banks to mega banks, which can offer better prices than smaller bidders, leading to increased concentration in the banking system.

The “least cost test” mandates the FDIC to resolve failed banks in a way that minimizes costs to the deposit insurance fund. This could result in a “barbell” banking system with mega banks and small community banks dominating.

Congress could reinstate the FDIC’s emergency authority to guarantee large business transaction accounts to prevent this. Regulators should take action to prevent further concentration in the banking system.

https://www.ft.com/content/e1ce2ba6-89e3-4132-8061-02120cf8165d

How to navigate risks and opportunities associated with Generative AI

To harness the full power of generative AI, organizations need to be proactive in identifying and mitigating risks, while also welcoming the transformative capabilities it offers.

This requires a strategic investment of time, resources, and a willingness to adapt traditional ways of operating. By approaching implementation with a focus on responsibility, companies can open new levels of productivity, innovation, and customer satisfaction through the strategic deployment of generative AI applications.

https://www.mckinsey.com/capabilities/risk-and-resilience/our-insights/implementing-generative-ai-with-speed-and-safety

Happy Easter!

Curious Saturday: The future of technology – seamless, screenless and sensing

Get ready to be amazed by the latest technology from Humane, a company co-founded by former Apple designer Imran Chaudhri. In a sneak peek at their groundbreaking new product, Chaudhri reveals a world where AI allows our devices to seamlessly blend into our surroundings. This screenless, seamless, and sensing experience promises to change how we interact with technology and the world around us.

Forget about bulky screens and clunky interfaces – Humane is paving the way for a more intuitive and humane way of interacting with technology. With their innovative approach, they are redefining the relationship between humans and technology. Get a glimpse of the future and witness the next evolution in device design.

Don’t miss out on this exciting vision of a world where AI is everywhere, making our lives easier and more connected than ever before. Check out the TED talk for more details:
https://www.ted.com/talks/imran_chaudhri_the_disappearing_computer_and_a_world_where_you_can_take_ai_everywhere

Female founders are the missing piece in the unicorn puzzle

Despite the impressive growth of unicorns, the representation of #women founders is shockingly low.

With only 14% of unicorns having a female co-founder and a mere 5% with a female CEO, it’s clear that there is a significant disparity in representation.

This slow progress is alarming, especially when considering the overwhelming dominance of male founders in the field.

The main culprit behind this imbalance is the fact that 85% of VC investment decision-makers are men, according to All Raise and Crunchbase.

Successful product integration requirements

How to increase banks’ deposit pools

To increase banks’ deposit pools, it is essential to enhance visibility into deposit activity by analyzing customer behavior and preferences.

Establishing a dedicated deposit command center can help streamline operations and improve efficiency. Developing a competitive pricing strategy and updating sales approaches can attract new depositors. Targeting deposits from cash-rich industries and implementing AI technology can also boost deposit growth.

Furthermore, banks can explore partnerships with fintech companies to offer innovative deposit products and services. Leveraging data analytics and investing in digital marketing strategies can help banks reach a wider audience and attract new customers. By continuously evolving and adapting to the changing financial landscape, banks can effectively grow their deposit pools and remain competitive in the market.

https://www.mckinsey.com/industries/financial-services/our-insights/winning-in-corporate-deposits-through-transaction-banking

Small businesses deserve better banking services

The data from the 2023 Federal Reserve Small Business Credit Survey highlights the ongoing challenges faced by smaller businesses in accessing financing. Despite some improvement in approval rates from the previous year, the approval rate for loan, line of credit, and cash advance applicants remains below pre-pandemic levels.

The discrepancy in approval rates can be attributed to the risk management practices of large banks, which may not be well-suited for serving the needs of small and medium-sized businesses (SMBs). Due to the potential regulatory risks involved, many mega banks may be hesitant to extend credit to smaller clients who represent a relatively small portion of their overall revenue.

This underscores the need for better banking solutions tailored specifically to the unique requirements of SMBs, in order to facilitate their growth and success in the current economic landscape.

Generative AI for banks: Managing risk and compliance

Over the next five years, generative AI has the potential to automate and improve various aspects of risk control, from regulatory compliance to climate risk management.

It is crucial for risk and compliance teams to establish clear boundaries for the implementation of gen AI within their organizations.

By utilizing gen AI, banks can shift their focus from mundane tasks to strategic risk prevention and collaboration with business units. This approach allows risk professionals to provide valuable insights for new product development and business decisions, as well as proactively address emerging risk trends.

Key applications of gen AI include regulatory compliance, financial crime detection, credit risk assessment, data analytics, cyber risk management, and climate risk evaluation. By embracing gen AI, banks can streamline operations, enhance decision-making processes, and strengthen overall risk and compliance functions.

https://www.mckinsey.com/capabilities/risk-and-resilience/our-insights/how-generative-ai-can-help-banks-manage-risk-and-compliance

Feel good Sunday: How to keep AI under control

With the rapid advancement of AI technology, there is a growing concern about the potential dangers of super intelligent AI. However, scientist Max Tegmark offers an optimistic outlook on how we can ensure AI works for us, not against us.

But what if the AI can’t create the necessary tools on its own? Tegmark suggests training one AI to learn your desired tasks and then using another AI to extract the learned algorithm and knowledge, similar to an AI neuroscientist.

This approach aligns with the progress being made in mechanistic interpretability, showing that creating safe AI systems is within reach.

For more insights on controlling AI, check out Max Tegmark’s TED talk:
https://www.ted.com/talks/max_tegmark_how_to_keep_ai_under_control

Curious Saturday: How one click can cost millions

Join cybersecurity expert Ryan Pullen as he reveals the alarming ease of cybercrime and the human vulnerabilities that hackers exploit. Dive into his investigations of major digital breaches and learn how a simple link click can lead to devastating consequences. Discover the latest insights on protecting yourself from scams and safeguarding against cyber threats in today’s interconnected world.

Cybersecurity may seem tech-focused, but a staggering 95% of cyberattacks involve a human element, as revealed in IBM’s 2021 study.

Watch now: https://www.ted.com/talks/ryan_pullen_how_clicking_a_single_link_can_cost_millions

Tech jobs: Gender gap in tech sector narrows across advanced economies

The gender gap in tech jobs is finally starting to narrow across advanced economies. Thanks to increased demand, gender equality policies, and a more flexible work environment, women are now securing a larger share of tech jobs. According to an analysis of official data by the FT, the gender gap in the tech sector has decreased in the US, EU, and UK over the past four years.

While this progress is promising, men still hold the majority of tech jobs. This disparity highlights the need for more diverse hiring practices, especially as the industry continues to advance in artificial intelligence technologies.

Read the full article at: https://on.ft.com/49Bi3UL

2024: Credit Unions ready to take on banks in battle for deals

Despite facing some challenges, credit unions are eager to expand their reach and expertise by acquiring banks. In 2023, credit unions were involved in a record number of bank deals, and this trend is expected to continue this year.

The interest in bank acquisitions is being driven by credit unions’ desire to diversify their offerings, especially in commercial lending. By acquiring banks, credit unions can tap into new #revenue streams and expand their services to include wealth management and trust services.

Although there may be some hurdles along the way, credit unions remain determined to pursue bank deals as a strategic move to strengthen their position in the financial market.

With the industry becoming more aware of the risks of concentration, credit unions see M&A as a way to mitigate these risks and ensure their long-term success.

https://www.spglobal.com/marketintelligence/en/news-insights/latest-news-headlines/credit-unions-to-face-stiffer-competition-for-bank-deals-in-2024-79807423

Financial institutions are building competitive advantage through partnerships and M&A

Financial institutions are strategically positioning themselves through mergers and acquisitions to stay ahead in the competitive landscape. Despite the challenges in the financial services M&A market, there is optimism for growth in 2024.

The emergence of GenAI technology is pushing companies to take proactive steps to prevent their rivals from gaining an edge. Private equity firms are expected to play a more active role in M&A activities as the monetary policy outlook becomes clearer.

To navigate the evolving landscape, banks are increasingly turning to partnerships, acquisitions, and ecosystem development. A survey revealed that 51% of respondents prefer partnerships as a go-to-market strategy due to the limitations of in-house technology.

By collaborating with GenAI technology providers and building ecosystems, financial institutions can enhance their capabilities, drive innovation, and transform their business models.

https://www.ey.com/en_us/strategy-transactions/the-navigator-perspectives-on-financial-services-m-a

Insights for Credit Unions in 2024: Navigating the economy and interest rates

In the upcoming year, credit unions should keep a close eye on the economy and interest rates. While higher earners may be less affected by deteriorating consumer financial health, it’s crucial for credit unions to monitor all income levels. Various factors like inflation, geopolitical instability, and supply chain disruptions could further weaken the economy and impact individuals across the income spectrum.

Despite recent inflation decreases, wages are starting to outpace price increases, particularly for lower-income individuals. While this is positive news, concerns remain about unsustainable spending and debt levels, especially among the lower income brackets.

Credit unions need to pay attention to rising debt levels, driven by significant growth in auto loans and credit card debt – key areas for credit union products. Managing these risks prudently will be essential in 2024 and beyond.

https://www.fiserv.com/en/insights/articles-and-blogs/what-credit-unions-should-know-about-the-economy-and-interest-rates-in-2024.html

How AI is changing banking

The impact of AI on the banking industry is profound. It has the potential to significantly change the way banks operate, from investment advice to ESG considerations and combating financial crime.

The key idea is simple: by understanding customers better, banks can offer more tailored recommendations. This concept, long practiced in the traditional banking world, is now crucial in the digital era, especially in the realm of investment advising.

For instance, algorithms like “Next best offer” monitor Wealth Management Clients’ portfolios for potential risks, such as downgraded bonds or overexposure to certain regions, prompting advisors to take action.

In the fight against financial crime, AI models like “Black Forest” analyze transactions to detect suspicious activities based on various criteria.

While human oversight is still necessary, AI’s automated suggestions can greatly streamline decision-making processes, ultimately benefiting customers and the environment by reducing carbon footprints.

https://www.db.com/what-next/digital-disruption/better-than-humans/how-artificial-intelligence-is-changing-banking/index?language_id=1

Feel good Sunday: Can we effectively work remotely? It’s complicated

In his TED Talk, organizational design expert Mark Mortensen delves into the complexities of the remote work debate. While opinions on remote work vary widely, Mortensen emphasizes the importance of considering the research on the subject.

He highlights the challenges that come with navigating the shift towards hybrid work models and suggests three key conversation topics that #workplaces should explore as they adapt to the changing landscape of work.

https://www.ted.com/talks/mark_mortensen_is_remote_work_better_than_being_in_the_office_it_s_complicated

Curious Saturday: Digital ownership as a must

Join technologist Yat Siu on a journey into the world of the “open metaverse” – a digital realm that promises a more equitable and innovative future.

Discover how web3 technology is reshaping our society by empowering digital ownership and changing the creator economy. Get ready to reimagine capitalism for the 21st century and explore the endless possibilities of this decentralized internet.

Watch the talk here:
https://www.ted.com/talks/yat_siu_the_dream_of_digital_ownership_powered_by_the_metaverse

Traditional stereotypes of career paths will collapse in face of workforce change

Gone are the days of traditional career trajectories, where employees would climb the corporate ladder and retire at the pinnacle of their careers. Nowadays, many workers are choosing to delay retirement, switch careers, or explore different, potentially less lucrative opportunities.

A notable shift is seen in the increasing number of older Americans staying in the workforce, with Pew research revealing that 19% of individuals aged 65 and above were working in 2023, nearly double the figure from 35 years ago.

Furthermore, more employees are taking career breaks, transitioning between industries, and embracing non-traditional employment arrangements. Factors such as economic fluctuations, caregiving responsibilities, and technological advancements are also contributing to the disruption of traditional career paths.

Stay ahead of the curve and learn more about these trends shaping the future of work: https://hbr.org/2024/01/9-trends-that-will-shape-work-in-2024-and-beyond