COVID-19 LENS: LONGEVITY ECONOMY AND GRETA GENERATION. FINTECHS MUST THINK BIG.

Built for growth, the global economic machine has been brought to a screeching halt. Thanks to intervention on an unprecedented scale, a full-scale meltdown has been averted – for now.

On January 30th, 2020, 43 representatives from 32 UK FinTechs, 25 Swiss banks and financial institutions, 7 VCs, 19 Swiss FinTech players, and many others gathered in Zurich: over 180 experts met to talk innovation, sustainability, and investments.

We didn’t know then that our world was about to change for a while to come – perhaps forever – and that soon we’d have put our discussions about innovation and sustainability to practice.

5th UK FinTech Mission to Switzerland event, 30.1.20, British Embassy Bern, DIT, Zurich Insurance

Key discussions of the day focused on social shifts driven by the longevity economy, age diversity, and ethics reshaping the financial world. Our aging society has been affecting consumer trends, opening new opportunities for businesses and workforce, while increasingly, 40-year-old millennials have been leading the charge of socially-responsible and sustainable investing, both ultimately driving the greater good.

COVID-19 has changed the ball game in today’s global economy, society, and impact investment strategies, calling into serious question our ability to reach the Sustainable Development Goals (SDGs) by 2030 – if that was ever possible.

With the current crisis in full development, many hope that a “mindset shift” will occur once a “new normal” is achieved. Both optimists and pessimists seem to agree that western balance sheets will at best go back to 2008 levels. In terms of debt-to-GDP, we’re talking of 10 percent or more, plus unemployment at 15-20 percent coupled with the strong possibility of populist-enforced cuts in foreign aid and the very likely scenario of social unrest across the first world.

The financial meltdown (currently deemed to be worse than that of 1987 or indeed, as some say, similar to the Great Depression of the 1930s) will also very likely reduce traditional foundation funding. 

It is interesting, and very difficult, to think now of the topics we discussed on stage only a few months back, and to do so, wearing a Covid-19 lens. Most of the challenges we discussed – whether concerning the aging population among consumers and investors as well as in the workplace, or the attitude of millennials towards social good – have only worsened. Possibly, two key aspects will emerge and might be the staple to overcome the ever-greater challenges ahead: digitization and sustainability, sparking new discussions around a new way to work and to engage in less-social contexts, and around the increasing need for impact and sustainable investing.

“As the Chair of the International Accounting Standards Board recently noted, the current approach ‘will not prioritize planet over profit.’ What is important for both sides of the for-profit and not-for-profit divide is not what people are saying – but what they are already doing to be socially impactful. What are we paying for?  And what is the incremental impact of each government or corporate dollar to each SDG? In other words, we need a metrics process whereby everyone is seriously involved and stakeholder actions are competitive, comparative and, predictive.

If not, we will continue to witness a decline in both the effective statistics measuring the SDGs as well as the effectiveness of programs designed to serve them, with an expansion of the funding gap. The danger is that, by 2030, the international community will have spent $6 trillion with little to show, particularly to teenage Swedish activist Greta Thunberg’s generation.”

Governments are pumping out capital to try to save economies and bridge financing gaps around the world, but it is apparent that government funding alone is likely to be insufficient to solve this immediate crisis. Nor can it be relied on as the only solution for the longer-term investments required to build stable, resilient systems that can manage a planet headed toward a population of 10 billion people within the next few decades. 

We know that climate change will disproportionately affect those at the base of the economic pyramid; as we are experiencing with coronavirus-related deaths and job losses, the same is true for this pandemic. The crisis has highlighted the case for purpose-driven, inclusive finance across both the environmental and social sectors, which is at the core of impact investing.

An encouraging takeaway from the crisis is that the push for private capital to act more decisively as a force for good in society and to shoulder a portion of the investment burden does not have to come necessarily with attractive returns.

 Visionary leadership needed.

As the COVID-19 pandemic continues to create uncertainty, many FinTechs are under stress on a number of fronts. Access to funding – especially for some early-stage ventures, as many investors focused on established FinTechs with clear business models –, recent interest rate cuts and the economic slowdown have radically changed many industry assumptions.

Yet, as the broader economy shifts from response to recovery, COVID-19 may create new opportunities for some FinTechs. For example, as social distancing has taken hold worldwide, there has been very strong growth in the use of digital financial services and e-commerce, as well as an increased interest in doing the “social good”.

Keeping an eye on future opportunities, FinTech companies may be forced to reexamine their missions and business models after COVID-19. A key question is how to leverage both existing and newly-developed assets to seize new opportunities in the future. It could be an opportune time to think big and act boldly. First and foremost, it is apparent that social distancing is accelerating customers’ use of online – especially, mobile – channels to view and manage their finances. Because many FinTechs are purpose-built for the mobile channel, they often excel in offering presentation, on-boarding, underwriting, and data visualization services, as well as in providing the right context for transactions. These capabilities will likely become even more relevant and important as a greater number of financial transactions are conducted through digital channels.

FinTechs can play an important role, perhaps through strategic partnerships across a broad ecosystem of players – including financial institutions, retailers, and the government sector – in distributing benefits to more vulnerable sectors of the population. Indeed, many FinTechs made it their mission to democratize financial services by providing basic financial services in a fair and transparent way. 

COVID-19 and the Longevity Economy

Despite the outbreak, the global population continues to age, and we expect global life expectancies to creep higher over the long term. Although we may see some changes in consumption patterns post-COVID-19, the key drivers of the longevity economy will likely remain intact.

The “Longevity Economy” is redrawing economic lines (AARP research), changing the face of the workforce, advancing technology and innovation, and busting perceptions of what it means to age. Bank of America Merrill Lynch projected in 2019 that the global spending power of those aged 60-plus would reach $15 trillion annually by the end of 2020.

Increasing longevity had, until February 2020, spurred unprecedented economic growth and new opportunities for personal fulfilment. Markets have been evolving to meet their needs and aspirations, offering new opportunities.

Aging adults are not only consumers – they are our only increasing natural resource, a talent pool that can power businesses and enhance the communities of the future.

Over the next few decades, baby boomers and Gen X will pass a significant amount of wealth (calculated at $30T prior to the COVID crisis) on the millennial generation. With very high spending power, millennials have started to reshape the investing and FinTech spaces to better align with their ethical values.

FinTechs for social good

“Life is what happens when you are busy making other plans.”  As we struggle to bring into focus the long-term impacts of a post-COVID-19 world, Lennon’s quote is a poignant reminder of the uncertainties that lie ahead for sustainable and responsible investors. 

We are now approaching an inflection point in the crisis, where savvy investors are fundamentally reassessing economic, environmental, social and, governance factors to adjust to the new normal.

The time has passed for small commitments, hyperboles, and delays in embracing sustainable investing. Now is the time for leadership, investment, and action.  Companies and investment managers that remain on the sidelines will sacrifice their opportunity to shape their own, and the planet’s, future.

Within 36 months, there will no longer be a discernable distinction between sustainable and traditional investing, predicts the Responsible Investor.

We can only take note and act fast.

Manuela Andaloro

(info@smartbizhub.com)

Sources: Global Geneva, the Guardian, Deloitte, Gig Economy Data, Responsible Investor.

Republished also on Corriere dell’Italianita’

UK FinTech Mission to Switzerland 2020

Switzerland: Gender equality, the Italian language and labour market.

“Inform to educate, publish to raise awareness, preserve to keep the memory, fight for a future full of solidarity, in which social values are shared and strive for a society based on true democracy.”

This the mission of “Corriere dell’Italianità”, a successful publication (both printed and digital) read across Europe as well as globally. The newspaper has a 57-year-old history, a very interesting and growing readership and is very well established within institutional and political environments.

But what is Italian-ness in Italy and the Italian-speaking part of Switzerland, as well as all over the world, and what shines behind old and tired stereotypes?
 
Established in 1962, Corriere dell'Italianità aims at raising awareness on Italian culture, in Italy, in the Italian-speaking Switzerland, and all over the world. A publication of excellence that increasingly leverages innovation, digitisation, social values and the core societal themes we see reflected in politics, economy, the labour market, science, sports and free time.  Headed by President Franco Narducci, member of Parliament of the Italian Republic (XV and XVI terms) and Vice President of the Foreign Affairs Commission, and spearheaded by Valeria Camia, director of Corriere, an experienced journalist with a strong background in the social policies sector and European universities.

I was delighted and honoured when I had the pleasure of giving an interview on my work and commitment to the cause of diversity and EQ-driven leadership to Corriere, and when I was later asked to join their outstanding board as a board member.

One of the first events I had the pleasure of attending took place on 23rd November 2019, where the Swiss Parliament President, Marina Carobbio Guscetti, offered a broad overview of the political scenario of the Swiss Confederation after the elections held on 20 October and the ballot for the formation of the Council of States.

Marina Carobbio with journalist Simona Cereghetti

Among the numerous relevant subjects discussed by President Carobbio, I reckon that a couple of pressing issues deserve a special mention as they also characterised the policy she adopted throughout her presidential mandate - which ended on 1 December 2019, after which she was elected to Councillor of the Assembly's upper house*.

In front of a crowded audience, Marina Carobbio answered the pressing questions of Simona Cereghetti – RSI's journalist and Berne correspondent. She started her reflection on gender disparities with the current situation in Parliament.

Today, the women sitting at the National Council represent 42% of all members, while the Council of States has 12 women (around 26%). Compared to the situation before the electoral round, these are extraordinary figures.

Thanks to an awareness-raising campaign supported by several social sectors (such as the "Helvetia ruft" campaign and the 14 June strike), today Switzerland lags behind significantly less with regards to equality between women and men in politics! Certainly, there remains ample room for improvement with the aim to increase female presence and visibility in key roles but the determination of Swiss women and the new-found unity goes beyond political parties and bode well for future development! Gradually, Swiss society is realising – both at an inter-generational and inter-party level – that remarkable results can be obtained through gender solidarity in terms of justice and reduction of inequalities between men and women.

At a closer look, it is clear that this achievement is also supported by men. This new attitude brings up other important subjects such as the traditional perception of the caregiver work, which is a task carried out mostly by women without a salary nor social insurance contributions.

A deception that will impinge upon their future retirement pension. In recent months or even weeks, discussions have been initiated in various working groups – both political and institutional ones – to examine the issue of workers leaving the labour market to look after not only their seriously ill children but also the elderly. “Within this ageing society”, said President Carobbio, “we can no longer postpone the issue of the role of women (and men) in care-giving activities. Facing the problem of gender differences becomes then a crucial issue because of its impact on social cohesion and, last but not least, on democracy – a kind of democracy that should guarantee not only equal rights but also equal opportunities.”

Along with the “genre” issue, the "Italian language" plays a decisive role in participation in political life and social cohesion in Switzerland. In a country founded on different cultures and traditions, expressed also linguistically, the use of all four national languages ​​must be defended and strengthened.

We must underline that, for this reason, Marina Carobbio has made a change in the parliamentary operations, imposing a widespread use of her mother tongue, Italian, following up on what Chiara Simoneschi Cortesi had done before: she was, in fact, the first Italian-speaking woman President of the National Council (2008-2009) who carried out part of her parliamentary work in her mother tongue. In a country where anglicisms are commonly used and English seems to be taking over national minority languages ​​between the various Swiss linguistic regions, the protection of the Italian language allows the safeguard of the history and culture of an important sector of the Swiss Confederation. A sector that struggles in finding a place of its own, squeezed between "the rest of Switzerland" to the north and the Lombard landscape to the south.

Manuela Andaloro

(Adapted from Valeria Camia’s article in Corriere dell’Italianita’)

*Marina Carobbio, role update: As of the 1st of December 2019, Member of Parliament Marina Carrobbio is a Councillor of the States: also a member of the commission on social security and health, a member of the commission on science, education and culture in which she promotes multilingualism, Italian-ness and gender equality and a member of the finance committee in which her political priorities are the climate crisis, pensions and labour mobility.

Switzerland’s new President for 2020. In Switzerland, the position of president is ceremonial. Switzerland’s executive is led jointly by all seven members of the Federal Council, known as les sept sages (the seven wise ones) by French speakers. The ceremonial role of the president rotates annually among Federal Council members. In addition to the diplomatic duties of the president, he or she chairs Federal Council meetings and has the tie-breaker vote on contentious decisions. In 2020 the role of president passes to Simonetta Sommaruga, Switzerland’s minister of the Environment, Transport, Energy and Communication.  

Bringing EQ-driven leadership into companies.

Interview by Valeria Camia, journalist, web director Corriere dell'Italianità, to Manuela Andaloro Senior Advisor and Board Member, for Corriere degli Italiani

A successful entrepreneur, an ambassador of gender equality, and a mother, Manuela Andaloro tells her story. 

Business woman Manuela Andaloro has been the CEO of SmartBizHub since 2017. Together with her team, she does management consulting, especially in the field of new technologies and sustainability, working with multinationals and government agencies throughout Europe. Manuela travels often and is active in advocating and raising awareness on diversity, gender equality and on the balance between family and work. She was recently nominated for a major award on gender diversity. For many years, she has been advocating “diversity and inclusion” in companies. Could Manuela picture her current reality when, just a twenty-year-old student at IULM University in Milan, she got her first corporate role as an analyst at ACNielsen, working hard to keep up with her studies?

Manuela has been not only a successful entrepreneur in recent years, for over 17 years she has had important roles in leading financial companies in Europe, since 2012, she’s also a mother. A mother of two small children (4 and 6 years old), in Switzerland, a country in which achieving a balance between family and work is particularly complicated. Maternity leave is granted for only 3 months and fathers are excluded, as opposed to a European average of 6 to 12 months (or even 3 years in Germany) of leave, which in many cases can be shared equally between both parents. If wage parity remains a dream, the same goes for career opportunities, respect for diversity and promotion of social inclusion.

“Finding a balance between career and family is one of the hardest challenges that my husband and I – along with hundreds of parents with careers, I have met over the years – are facing in Swiss society, which in most cases still gives women the role of housekeepers and child carers. This concept is deeply rooted in the culture of this country. I still remember this chat I had with a doctor I had consulted because I felt tired after the birth of my first child and my return to work 5 months later. I remember the doctor asking me why I kept on working. It was shocking. And that was just the beginning. I was shocked again when I went back to work, first part time, then full time. Society in many cases expected me to be mainly a mother”, says Manuela, who considers herself lucky, because “there was still a job for me when my maternity leave was over if you consider that one in seven women in Switzerland loses her job when she becomes a mother.” Not to mention the economic situation, as private nurseries and kindergartens, that can provide more flexible times to allow parents to work, are very expensive and so precluded to many.

To be honest, Manuela actually had some thoughts about giving up her career, or taking a break. It was never easy to leave my children with the babysitter or at the nursery until late, to work and travel even on weekends, and being under the critical eye of society. But Manuela did not give up. She was courageous and aware of the need to break up with an obsolete, individualistic and non-empathic mindset, which does not leave enough space for women and is unable to cope with the new global picture of society and its stakeholders.

— Images, left to right: Manuela Andaloro moderating a FinTech international event in January 2019 in Zurich (credits: British Embassy Bern); speaking about adapting our working cultures to reflect a more modern world and diverse society, June 2019, Amsterdam. (Credits: EWPN, Money 2020); on stage speaking about new role models and leadership, October 2018, London (Credits: PayExpo); Balancing private life and work on a weekend. —

The trump card that can reconcile career and family, says Manuela, is a new type of EQ-driven leadership. “The best leaders of today invest their time and energy in understanding the people they work with and their teams. It’s the EIQ, or emotional intelligence quotient, which experts say has become today more important than IQ and is a better index of success for people, companies and society. This is why we must work to change the old mindset: a new approach will not only favour women but will also foster a type of leadership based on empathic soft skills. In the digital age and its new challenges, women should not be fighting to integrate themselves into a system that has proved to be disastrous as it supports only one model, the alpha personality, mostly very dominant figures. I met women that had old-fashioned leadership styles, not very cooperative and participatory, and men who lead in an inclusive way and pay attention to the social fabric outside and inside the company. Adopting a leadership based on arrogance, blind self-confidence and lack of empathy does not work today, in the face of the probable failure of liberal democracies, the negative influence of social platforms, the climate crisis, artificial intelligence and the associated risks. Both women and men should all work together to transform the mindset of companies (and politics), making room for the new facts on the ground”.

For women, it means they have to learn to believe more in themselves, to not settle for less and to act, without always waiting for the right moment in decisions concerning private and working life – to have a child or to accept a new role of great responsibility that involves changes. “Sacrificing one’s ambitions even before trying is harmful to oneself, to other women, to new generations and to the men that are witnessing this behaviour”.

On 14 June, over half a million women and men across Switzerland joined the demonstrations following the strike, plus all those who participated in a “digital” way. What do you wish for, Manuela? “I wish for strong governmental reforms and independent inspections of companies to assess corporate culture, and diversity within them. And I also expect each of us to raise awareness of issues of vital importance, in each of our daily roles, as mothers, fathers, teachers, workers, leaders. Starting from making our children aware of the importance of equality, inclusion and an open mind-set to face today’s new challenges”.

Valeria Camia with Manuela Andaloro

Manuela Andaloro is a senior professional with over 19 years of executive experience in global roles in financial services, business strategy and digital transformation, having lived in Milan, London and Zurich and worked for firms such as Nielsen, Financial News and UBS. Since 2017, she is the Founder of Swiss-based SmartBizHub, a management consultancy specialising in marketing, positioning, communications, sustainability, future tech and future work. Manuela is a professional speaker, a published author, and an editorial consultant for various leading publications on the topics of finance, social shifts, impact, culture and leadership. She serves as advisory board member of various Swiss and international organizations, and as a board member of the Weizmann Institute of Science in Europe. Manuela is a D&I champion and advocate for EQ- driven leadership, speaks English, Italian, German and Spanish and lives in Zurich with her husband and two children. 

As published in Corriere dell’ Italianita’ cover story, 30 July 2019 view original article in Italian here.

FinTech: the new finance between innovation and culture

This week I had the incredible privilege of hosting as master of ceremony and moderating one of the most important events in the annual calendar of Swiss financial institutions and UK-based successful FinTech companies: the 4th UK FinTech Mission to Switzerland. 

On January 24th, 2019, the UK FinTech Mission to Switzerland, organized by the Department for International Trade, brought together high-ranking government representatives, Swiss financial innovators, successful UK FinTechs, and famous leaders for two thought-provoking panel discussions.

Strong numbers behind a successful platform. The three previous events generated over CHF 50 million in signed business and provided a strong business platform for over 150 attendees. The 4th mission saw 28 UK and 33 Swiss companies present, discussing innovation and future impact on society in the over 115 one-to-one meetings that took place.

The driving forces that helped shaping success. High-ranking government representatives, including Jane Owen, Her Majesty’s Ambassador to the Swiss Confederation and non-resident Ambassador to Liechtenstein, Catherine McGuinness, Chairman of the Policy and Resources Committee, City of London, leading Swiss financial representatives, such as Jos Dijsselhof, CEO of SIX,  Switzerland's principal stock exchange, Noel McEvoy, Director Department for International Trade and the Scottish Development International for Switzerland and Liechtenstein, as well as senior representatives of the British Embassy Berne and the British Swiss Chamber of Commerce, were present and played a key role. Why do such events generate such great interest? As Jos Dijsselhof stated, the anwer is simple: because together we are stronger. Such strong platforms stimulate new business relationships amongst participants, resulting in job and wealth creation in Austria, Switzerland, Liechtenstein, and in the United Kingdom.

Is the current political turmoil a threat?

SIX’s CEO Jos Dijsselhof clarified early on in his speech that “Despite Brexit and the renegotiation of the terms of UK’s relationship with the rest of Europe, the bond between UK and Switzerland remains strong. The UK remains a leading center for FinTech in Europe. In 2018 alone, it attracted GBP12 billion of investment—of the respective EU total of GBP20 billion. At SIX we are predestined to play matchmaker in FinTech field. Finance and technology are in our DNA.”

What is SIX’s role? SIX is often defined as the backbone of the Swiss financial center “providing the technical infrastructure, running the Swiss stock exchange, as well as financial information, security, and payment services.” Among its shareholders and clients are 127 national and international banks. “It speaks for innovation, efficiency, stability, and security in the financial sector.”

What about Brexit? Jos addressed the topic in reassuring but careful terms: “what we do know is that with the UK's exit from the EU, Europe and the UK likewise face significant challenges – in both political and economic terms. We are discussing these challenges of Brexit, the risks – as well as the opportunities – for the financial industry, at length here with our peers in Switzerland. What remains undisputed is that the UK and Switzerland are significant economic and trading partners. If I were to quote just one figure, it would be this: each day there are over 80 direct flights between Switzerland and the UK.  Both countries benefit immensely from these close relations. Swiss companies provide around 93,000 jobs in the UK, while British firms account for about 27,000 jobs in Switzerland.

The UK and Switzerland are also investing in each other. Direct investments run into dozens of billions of Swiss francs. Swiss banks play an essential role in London's financial industry. Market access to the United Kingdom is vital to the Swiss financial market infrastructure. SIX generates up to 80% of its income in the area of trading with downstream segments (clearing and settlement) in European countries, particularly in the UK. “All areas that SIX does business in have offices in London; our stock exchange works closely with London's stock exchange and many other companies in the UK. All these touch points make the need for a good relationship evident, as it enables us to share knowledge, establish partnerships and build on each other's strengths.”

This means that significant disruptions must be avoided and that UK and Swiss financial service providers need to be able to continue doing business after Brexit in the same way as before. In a first step safeguarding the status quo and legal stability is essential.

Why Switzerland? Switzerland is to a certain extent destined to innovate. And it does so very well: Global Innovation Index named Switzerland to be the most innovative country in the world, not once, but seven times in a row. Many CEOs talk about the importance of innovation, but do they walk the talk? What are they doing in specific terms?

 How is SIX driving innovation? SIX has recently launched a venture fund worth 50 million Swiss Francs - around 38 million Pounds. The aim is to promote innovation in the Swiss financial sector. The Innovation Team is developing services for shareholders and the Swiss financial center. 

Let’s talk societal impact. “Our noblest task as entrepreneurs is to bring people together – across all cultures and languages, across all borders, despite potential political difficulties.” concluded Jos Dijsselhof.

Business does not divide people; it unites them. It invests in innovation and helps to ensure that new ideas spread around the world. Ideas that benefit as many people as possible.

What is the current status quo of the relationship between Switzerland and the UK ?

A very interesting update came from Noel McEvoy, Director Department for International Trade, who confirmed how vital is assuring continuity, to ensure this, only last week 5 agreements were signed while all efforts are being made to keep the dialogue going between the two largest financial centres in Europe, such as London and Zurich.  “Both nations are keen to grow and collaborate to ensure increased prosperity, and there are dialogues taking place on mutual market access.” he confirmed.

 Continuity and EU. At present, relations between Switzerland and the UK are largely based on the bilateral agreements with the European Union, which will cease to apply to the UK after its withdrawal from the EU. In preparation for exiting the EU, the UK has initialled five bilateral continuity agreements with Switzerland, covering trade, citizens’ rights, non-life insurance, land transport and air services.

The bilateral continuity agreements replicate the existing EU-Switzerland arrangements as far as possible and will come into effect as soon as the implementation period ends in January 2021, or on 29 March 2019 if the UK leaves the EU without a deal.

Panel 1: New Finance: How customer demand made it happen , with Stephen Ingledew, CEO, FinTech Scotland, Katharina Bart, Senior Contributor, Finews, Gavin Littlejohn, Chairman of FDATA Global and Convenor of the Fintech Stakeholder Group of the UK Open Banking Implementation Entity, Keith Phillips, Executive Director, The Investment Association, Michael Coletta, Blockchain Developer Emerging Technology Lead, London Stock Exchange Group and moderator Manuela Andaloro, CEO, SmartBizHub

How do we keep driving sustainable change?

One of the key discussions that took place on stage saw an incredibly knowledgeable line-up of top experts in their respective fields, such as Stephen Ingledew, CEO, FinTech Scotland, Katharina Bart, Contributor, Finews Senior, Gavin Littlejohn, Chairman of FDATA Global and Convenor of the Fintech Stakeholder Group of the UK Open Banking Implementation Entity, Keith Phillips, Executive Director, The Investment Association, Michael Coletta, Blockchain Developer Emerging Technology Lead, London Stock Exchange Group.

The goal of the panel was to portray the new financial landscape, acknowledge its driving forces, such as customer demand and client savviness, and discuss predictions on themes such as blockchain, international payments, machine learning, Internet of Things, and AI.

Q. Stephen, as CEO of FinTech Scotland, if you look at the FinTech ecosystem, at the fusion of financial services and technology, what do you think it can deliver from a social and societal impact perspective, in the short and long term?

A. Fintech is a movement, economic and social, it is vital to access new consumers who may not have been served in the past. It brings a diverse range of societal benefits, inclusion, and diversity.

Q. Katharina, customer demand seems to have shaped the industry. How do you see the role played by women and younger generations in finance? 

A. SRI (sustainable and responsible investing) and women are the Holy-grail in FinTech. Another aspect is diversity and inclusion, some way to go but over the past couple of years we have witnessed positive change and increased awareness. Another aspect is the fragmented provision of services in FinTech. It is a fast moving sector and trends change quickly, the new generation should not be seen as disloyal, they are simply savvy, choosier and more sophisticated.

Q. Gavin, in Switzerland, historically a conservative financial centre, the adoption of open banking has so far been very limited. How do you think open banking will benefit society as a whole and solve the ever growing challenge of complexity, when it comes to having access to the right product or solution at the right time, for example?

A. In a complicated product, a simple product is waiting to come out. Complexity drains the UX of benefits. Open Banking is a waypoint to further opening of the financial system. In my opinion pensions will next on the agenda. Collaboration is vital, it enables the industry and leads to enabling enabling technologies.

Q. Keith, if we think at the FinTech applications across the whole value chain, where do you see the most significant disruption coming from? 

A. The investment association is focused on the buy-side in FinTech, RegTech and WealthTech. Social mobile tech will likely be a major disruptor. A cluster of FinTech is focused on data, possibly a wave of disruption from that front too.

Q. Michael, what do you envisage for the future of FinTech? Where will real disruption (if at all) be coming from?

A. In terms of disruption, blockchain is not as great as is often made out to be. Disruption occurs in financial services as part of a complex ecosystem. Could a FinTech really disrupt and displace a large infrastructure player? Maybe but unlikely.

Q. When will FinTechs be judged like the large established players?

Gavin: It is a fundamental shift, they will be judged differently as per the current environment.

Q. Is it fair to judge the customers as loyal or disloyal? Were they ever loyal?

Katharina. Yes, they are simply savvy consumers. A semantic issue. Personally, I have been looking for a new bank for 18 months—still looking. Am I disloyal? No.

Gavin. Inertia Tax comes to mind, we should be looking at how to reduce the inertia tax (extra costs incurred and months spent looking for a different solutions) and friction.

Q. There seems to be a lot of energy and excitement around Open Banking. How do you measure the success of OB (since launching 12 months ago in the UK)?

Gavin. It is a process that will accelerate over the next 12 months. The shift to APIs is increasing in speed, so API growth will be a measure.

Panel 2: Is work working against us? Establishing new role models: Women in New Finance , with Catherine McGuiness, Chairman of the Policy and Resources Committee, City of London, Maria Leistner, Group Managing Director, General Counsel at UBS, David Bundi, Head RegTech, PwC Legal Switzerland, Angela Yore, MD & Co-founder, SkyParlour, Petra Arends-Paltzer, Founder, Swiss Legal Tech Conference and Manuela Andaloro, CEO, SmartBizHub.

In the early afternoon we were joined by an incredible group of change-makers who represent and stand for a new identity of leadership: I had the pleasure to discuss the future of work and the importance of raising awareness on different role models with Catherine McGuiness, Chairman of the Policy and Resources Committee, City of London, Maria Leistner, Group Managing Director, General Counsel at UBS, David Bundi, Head RegTech, PwC Legal Switzerland, Angela Yore, MD & Co-founder, SkyParlour, Petra Arends-Paltzer, Founder, Swiss Legal Tech Conference.

What is the status quo when it comes to women in finance and role models. Is work working against us?

Of the CEOs who lead companies on the 2018 Fortune 500 list, just 24 are women. That translates into a 4.8%, down 25% on 2017.

Why? Increasingly research suggests that one of the key reasons why women do not rise to the top in the same numbers as men is due to systemic barriers, funneling one particular type of person to the top, and that is not usually a woman.

Because of this, the focus should not be on integrating into a not-so-good system, but on transforming it and improving it. This is where often initiatives such as “lean in” leave many women wondering, should we lean into a system that is entrenched in a working world that’s outdated, limited and controlling, or should we instead go deeper and work on changing the culture?

New role models are crucial to break the cycles of outdated cultures, inspiring women and men to a new identity of leadership, one that leverages skills such as collaboration, empathy and trust, helping younger generations of women and men to rise to a new type of leadership, one that doesn’t take only one form.

The FinTech scene has gained increasingly attention over the past two years, its evolving trends seem to foster a culture of gender equality and to act as a catalyst for diversity.

Today in both Switzerland and in the UK, the percentage of senior women in Tech and Financial services, sits between 15% and 20%, and a July 2018  research by LendIt on women in FinTech found that:

1.         Average percentage of senior women employed at FinTech companies is 37%.

2.         Average percentage of women in the C-Suite at FinTech companies is 19%.

Better, but still not shifting the needle. And yet, the impact of women on the financial services industry and FinTech is more pronounced than in others.

Because organizational leadership often strongly influences product development and overall customer experience, FinTech companies with women executives are better positioned to respond to the needs of female customers, a major market segment with potential for growth that is frequently underserved by financial services providers.

So, is it possible that the so called “new finance” is helping to shape a new culture around the future of work, and having a significant impact on the success of the industry itself?

Panel discussion with (left) Manuela Andaloro, Catherine McGuinness, Maria Leistner, David Bundi, Angela Yore, Petra Arends-Paltzer

Q. Catherine, you chair the committee responsible for policy, strategy and direction for the City of London Corporation, you regularly meet with government and financial representatives from across the UK and the EU. What is the gender ratio at senior level you see in your role and also, if we look at the blending of work and life, it has never been more apparent than in today's always-connected and always-on culture, do you think the new generation’s quest for a better “work-life integration” will help changing the status quo permanently in the long run?

A. In the Square Mile we have 37% of women in the workforce. This needs to improve. The current mentality is still all “suits and ties”. However the millennials and younger generations are changing this by demanding flexible working patterns, and bringing even greater diversity. As a woman in my role: when I first started there was pressure for me to represent diversity, be a role model. This is not what I wanted, I was there for my role, irrespective of gender, it didn’t feel comfortable to be an advocate initially, but then I soon saw evidence in the workplace that women really were not being treated equally to men, when it came to promotions for example, so I decided I would step in and stand for gender equality and diversity.

Q. Maria, when it comes to career and employment, women and men increasingly want to be inspired by real life leading examples, in an effort to implement a permanent cultural change. There is however a lack of leadership models that stresses women’s hearts and minds when pursuing a career. What role do you think the cultural element and the belief that “they will not manage it”  plays in convincing many women to avoid the experience of motherhood, or to drop their careers?

A. Countries are different in what is culturally acceptable. I lived in the UK for a long time and have recently moved to Switzerland. There is no perfection anywhere on the topic if equality and diversity, however there has been some improvement in flexibility for women in leadership positions. The stats mentioned with regards to women in FinTech are very disappointing.  Technology itself and the tech world are a potential driver of change of diversity: it is a chicken and egg situation. Diversity and inclusion can significantly improve the FS sector. If we don’t change how we work, we won’t be able to address the needs of clients. Like Catherine, initially I resisted the role model label for many years, then came to realize that it is a duty, helping to change the status quo and raising awareness on the unconscious bias deeply embedded that plague the workplace and its culture.

Q. David, If what we read and hear about millennials holds true, they don’t seem to be driven by the thought of working hard for the next 40 years and then retiring. Rather, they are driven by the idea of building a life and career that can withstand the continuous reinventions that the 21st century will require. They take a lot of criticism in the media for sporting a sense of entitlement, but seem to have interesting strenghts such as embracing change, especially technological, wanting to work smarter, not harder, embracing their passions, professionally and personally. What do you think we can learn from their stance on work and life and how can we implement it sustainably in our working cultures?  

 A.     A very interesting quote of Steve Jobs that comes often to mind is “You need to find what you like.” The workforce of the future and the culture we create and bring forward must focus on how we can complement each other. The key is, what makes each and everyone special? The younger generation should be credited for their willingness to try and test. We should be looking for and hiring employees who don’t replicate what we do. The digitalization of business has changed the nature of how we work – and, accordingly, what skills we need to succeed, so even more so, the vital skills in the future will be around the human element and EQ. Personally I have a very good experience with diversity: it simply works and it impacts positively the business and its bottom line. We as panellists, as advocates, need to be bold and supportive to push diversity.

Q. Angela, while the world is a considerable distance away from achieving complete gender equality, the Nordics have emerged as a front runner. When people think of countries like Sweden, stylish designs and minimal lifestyles often spring to mind, but gender equality is one of the cornerstones of modern Nordic society. These countries continuously stand out in the Global Gender Gap Report, which measures equality in all areas from education, employment to economics. Out of these countries, Finland has the largest female labour-force participation, as 83% of women, including mothers, work full time. What do you think has worked well in these countries that could be replicated across Europe? Also, do you think quotas play a part in their success?  

A. Nordics have it right: The culture is there, policies are strong and enabling. Both elements are required. They are not present in a similar way in the UK, or elsewhere in the EU.  In the Nordics for example, 10% of income is spent on child care, that percentage increases to 35% in the UK. Culture eats strategy for breakfast. As CEO of my own company, I now get to make decision and stand for what I believe, but initially as senior woman in the tech corporate world it was tough, when I announced my pregnancy to my then boss, his comment was: “ Oh dear, Angela, this changes everything”.  I will let you digest that. I set off and started my own business and have never looked back. My advice to women, and men, who don’t fit in outdated cultures is simple: Be bold. It usually pays off.

Q. Petra, if we look back at 2008 and the financial crisis, a famous statement of Christine LaGarde (Managing Director and Chairwoman of the International Monetary Fund) still holds true: “if it had been Lehman Sisters rather than Lehman Brothers, if would still be here”. That obviously points at the fact that women are normally more risk averse than men,  however, that often has an effect on their careers and the risks they take, not going for “that” job or not doing really positioning themselves and their value in their organization.  What are the key drivers for change?

A. The key driver will be a change in client demand: Clients will seek out companies with diverse workforces. We have an incredible enabler these days: technology. Technology will work towards gender equality. In all this, role models will be vital to inspire women and men. Another vital element is to step out of the comfort zone, to ask, to demand equality. Self-confidence to genuinely establish  themselves is a key factor, and so is genuine collaboration among women.  

Q. How does performance affect the diversity drive?

Angela. The gender pay gap is disastrous. Take BBC News presenters: same role, same experience, male TV anchors earn 30% more than their female counterparts. What is the rationale?

Q. How do you feel about the pressure on males to hire female or face discriminatory allegations?

Maria. It is about the quality, of course performance is critical, pushing for diversity to get things moving more quickly might lead on certain occasions to errors. Personally, I am in favour of quotas. 10 years ago I was against but the speed of change on the gender equality topic has been too slow not to resort to quotas.

 Catherine: I am personally in favour of targets rather than quotas. But targets with teeth. Culture is what we need to address most of all.

Manuela Andaloro, Maria Leistner, David Bundi, Catherine McGuinness, Angela Yore, Petra Arends-Paltzer

Targets with teeth. When discussing the importance of gender equality in the workplace, concrete rather than glass ceilings, and bias embedded in cultures that belong to history books.  

Corporate culture creation, improvement, and change rests with the organization's top leaders. Through their actions, communications, and the values they embody, leaders set the example for others to follow, and the tone for what is important and valued in the organization.

The good news is that CEOs and supporting executives across the globe are realizing that corporate culture is not simply a feel-good catch-phrase, but rather the linchpin to an organization's overall performance.

Once CEOs embrace their role in establishing and leading the corporate culture, the sky is the limit for both personal, organizational and societal potential.

M.

(info@smartbizhub.com)

What does it take to be the best we can be? #FearlessFridays

Managing a demanding professional life and a busy private sphere takes energy. Never like in the past few years I have had to give some serious thought to how I manage energy and time, two of the most valuable assets we all own. I accepted that nobody can be 100% productive all day. As much as many of us wish to make the most of every minute, to get everything done, performing without break is just not humanly possible.

The notion of productivity is the ability to be able to do more in a smaller amount of time. Of all our available resources, everyone has the same number of hours in a day. Some, however, happen to get more done. Are they faster or smarter? Do they have more help? Perhaps. But they’ve also learned strategies that can help them stretch time and eliminate the unimportant.

I have found, especially in the past few months since starting my own firm, that concentration is like a muscle, it needs to rest to be able to function properly, and it can`t be overworked, or it will burn out and take time to heal. Finding how to turn up and down the dial that is our concentration is vital to make the most of our time, whether that is at work, at home, with our families or with ourselves. 

I was only delighted when I was introduced to the work that James Hewitt, performance science is driving.

James will be presenting at the annual World Economic Forum in Davos next week, releasing new exclusive research and exploring how wellbeing is an essential resource for addressing the global challenges of our hyper-connected, yet fractured world. 

Ahead of WEF, I have sat down with James to find out more about what drives and inspires one of the smartest and youngest minds of the Forum, and what we can learn from his work. 

Q. James, can you tell us a bit about you and your work?

A. I’m fascinated with human performance, and exploring the limits of human potential. In particular, how the human body and mind have an incredible capacity to adapt, and grow, but also to create and solve seemingly impossible problems. I think my most dominant characteristic is ‘curiosity’. I’m always asking questions, I love learning, experimenting, trying to discover more about why and how things work in a systematic way, so science felt like a natural path for me.

Looking back, I think I was inspired pursue this path at an early age. I was born in the United Kingdom, but one of my first memories, when I was around 3 years-old, is from the time we spent living in the United States. It was during the ‘glory years’ of the Space Shuttle Programme, and I remember watching shuttle launches live on TV, and visiting the Space Centre, in Houston, Texas. There was a Saturn V on display: the same model of mighty rocket which sent humans to the moon. I stood, completely dwarfed by the five giant F-1 rocket engines, and had a sense of awe, and wonder that people, working together, had designed and created this machine. It gave me a sense of the almost limitless possibility, which has never really left me.

James Hewitt, Performance Scientist

Q. What does impact mean for you?           

A. ‘Impact’ means doing the most good, with the biggest effect, in the short time we have available on this planet. I feel very strongly, based on a growing body of evidence, that many people are only scratching the surface of their potential, and are likely being held back by out-dated beliefs about what it takes to achieve and ‘be the best they can be’.

‘All-nighters’, sleep-deprivation, sacrificing well-being for more hours in the office, romanticizing ‘the grind’ and ‘the hustle’ are often associated with the highest output, and the greatest achievements. We may even hold people up on a pedestal for pursuing this way of living and working – “Just look at what they built! They are so successful!” - but it’s possible that the people who are working in this way achieved what they did despite, not because of these approaches, and perhaps they could have achieved more, or perhaps achieved the same outcomes, at a reduced personal cost, if they had looked after themselves, and nurtured a more creative, sustainable approach to high-performance.

Right now, I’m trying to contribute to exploring these ideas through my research, and working with organisations to find new ways of working, which enable knowledge workers to manage their well-being and performance more effectively, so that they can realise more of their potential.

I aim to achieve this impact by addressing the four questions associated with my main research project:

1.     How do knowledge workers’ lifestyle & work patterns influence their well-being and performance?

2.     How does the digitally disrupted work context influence this relationship?

3.     To what extent can digital tools enhance wellbeing and performance in knowledge workers?

4.     Are their differences in how people respond to these digital tools, and can we measure that difference to predict the response?

The reality is that we don’t really have much quality data to help us to answer these questions, yet.

Q. What drives you? 

A. I have a clear sense of purpose, that drives a lot of my decision making; How can I equip and inspire people to realise more of their potential? Today, this is expressed through my research and work with individuals and organisations, in sport and business, from Formula 1 drivers to Fortune 500 companies. However, I spent a long time dedicated, in quite a selfish way, to my own performance and potential, before I pivoted into the space I work in now.

As a teenager and up to my mid-20’s, I was trying to become a professional-cyclist. I started racing at a young age, but my cycling career truly began at the age of 19 when I moved to France. I crossed the Channel from my home in England with a suitcase, a contract with a small regional French team, and a dream.

I worked hard, analysing everything I could about my performance in order to improve it, and managed to move up from regional to elite level in a couple of years. I secured a contract with an Elite Espoir team, which allowed me to race and train full-time. The team was also associated with a professional senior team. We received some of their bikes from the previous season, wore the same design of shorts as the real ‘pros’, and it was a credible path to a professional cycling career.

However, as my career progressed, I realised I was working much harder, and more professionally than many of the people around me, but I just wasn’t getting the results. I had to be honest with myself, that I probably wasn’t going to reach the top of the sport. Also, when I looked deep-down, in truth I enjoyed the process of analysing, testing, training and experimenting to improve my performance, more than I did the actual racing.

I made the decision to ‘retire’, and returned to the UK to complete my undergraduate degree in Sports Science, which provided an academic framework, enabling me to explore human potential, and continue to ask the question: “what does it take to be the best we can be?”

Q. There is a large debate going on around the future of work, talent retention and millennials' values. What do you think the future holds for old school organizations?

A. The future of work is one of my primary areas of interest, and how workplaces need to adapt, to attract and retain top talent, is a key question. The future will be both automated and augmented. Some roles will be entirely supplanted. Many will be replaced in part. Even today, complex capabilities once considered too difficult to automate can now be performed by machines. However, I’m convinced that the future of work will be more ‘human’, at least in relation to the high-income, cognitively demanding and creative jobs, where employment is likely to grow. What can be automated will be. What can not, will become increasingly valuable.

Up to 20% of a senior executive’s role could be automated, according to some studies, but this technology will also likely be assistive and enhancing, facilitating deeper insights, better decision making and multiplied output. Work may become less stressful, as machines help us to manage information flows more effectively, releasing us to focus on creativity, collaboration and complex problem solving. However, this kind of thinking and working is best achieved by well-rested, focused, purpose-driven brains, and diverse teams, who can compensate for each other’s biases, and enhance each other’s strengths.

Organisations need to prepare for the growth in importance of non-routine work, produced by employees (and likely increasing numbers of free-lancers), who sleep well, eat healthily, exercise regularly, perhaps don’t follow traditional working hours and need to feel a deeper sense of purpose and vision for their work, to perform at their best.

The days of looking for a ‘cookie-cutter’ archetype to fill rigidly defined job-roles will likely come to an end in many knowledge-intensive industries. Inclusive and diverse organisations are more likely to thrive in the future of work. The multiplicity of thought, agility and effective approaches to collaboration, essential in organisations which encompass people from many different backgrounds, are more likely to propagate novel, harder to replicate solutions, differentiating individuals and companies from the commoditised, automated systems, which will operate vast proportions of many businesses.

Q. This year, in your contribution at the annual World Economic Forum in Davos, you will be addressing a topic of increasing importance in today`s world: technology, epidemics of distraction, “always on” culture and productivity. Can you tell us a bit more about that? 

A. Absolutely. The World Economic Forum Annual meeting has a challenging theme this year: creating a shared future in a fractured world. In a 2-hour session, we’ll be exploring how wellbeing is an essential resource for addressing the global challenges of our hyper-connected, yet fractured world, how many leaders feel that they are not in control, and that their wellbeing is sacrificed in pursuit of performance, or even simply to survive.

Leaders are bombarded with information. Short-term signals trigger cognitive rewards, feel valuable and important, hijacking cognitive control & preventing us from achieving our most important goals. The average CEO receives 250 e-mails per day. Many check their smartphone within 15 minutes of waking and multi-task throughout their conscious hours. The people who need to pay attention the most are often the most distracted, and the people who need to focus are too frequently the most fatigued.

Our contemporary approaches to life and work encourage this relentless, fragmented pattern of working and living, and it’s unsustainable, weakens decision-making, diminishes health, restricts potential and may contribute to the cracks we see emerging in ourselves, our organisations, and beyond.

The session’s aim is to inspire and equip leaders to find new ways to manage wellbeing and performance, creating a culture of wellbeing that cascades down their organisations, and beyond. We argue that this starts with themselves, and begins by finding more opportunities to take a step-back, and give their brains a chance to avoid the ‘cognitive hijacks’ that so frequently disrupt us.

Q. I hear of another incredibly interesting experiment you will be running on Davos` guests this year, scanning brain signals in real time, measuring and recording the collective intelligence of some of the world`s greatest minds. What do you expect to find? Will Davos brains really be any different to the cognitive set-up of ordinary mortals? 

Manuela Andaloro testing the “DavosBrains” headset. Davos, January 2018

A. Yes, we’ll be running an experiment called ‘DavosBrains’. The concept was a collaborative effort that first emerged during a conversation with Olivier Oullier. Olivier is a neuroscientist, President of neuroinformatics company ‘EMOTIV’ and a Hintsa Science Board member. We were talking about some of the themes in my PhD, which explores the wellbeing and performance of knowledge workers, and involves measuring their cognitive performance. We began speculating about the cognitive capabilities of high-performers in business, and whether top-executives had better cognitive performance, in domains such as sustained attention, for example, or perhaps it was worse, due to all the switching and attempts at multi-tasking.

We designed an experiment, based on a cognitive test called ‘Rapid Visual Information Processing’, which is a sensitive assessment of cognitive function, including sustained attention. During the test, we’re using some brief survey methods to assess wellbeing, combined with the cognitive test, and an EMOTIV neuroheadset, which will record and visualize brain activity in real-time.

As a ‘good scientist’, I’m backing the ‘null hypothesis’: that there is no difference in the cognitive capabilities of senior-executives, relative to a normal population, but perhaps we’ll find something cool! Whatever the case, it will be a fun and interesting experience for the participants, as they will get to see a 3D rotating model of their brain activity, rendered in real time, and have the opportunity to save and record a short video of their brain activity, to keep or share with their friends. It’s up to them whether they want to disclose the results of the cognitive tests, once they receive those!

Thank you James, and I look forward to seeing such a cool experiment in action in Davos!

M.

(info@smartbizhub.com)

#DavosBrains is a unique initiative, co-hosted by Hintsa Performance, ConsenSys & EMOTIV for guests attending the World Economic Forum this year. Further information available from 23 January here www.bit.ly/davos-brains. 

Rock Bottom has built more heros than privilege. #FearlessFridays

“ He who says he can and he who says he can’t are both right. ”

— Confucius

There are many reasons why  I cringe everytime I hear people stereotyping, or being biased, consciously or unconsciously, and the most important one is that by choosing not see through people, we miss an incredible amount of pure gold.

This is the reason why I strongly wanted one of my businesses  - #SmartPlan, launching in February  – to be made of smart minds and iron-will talent, competence and no arrogance. I made a conscious effort of steering away from old school hierarchies and titles, and chose to focus on those gems who do not let old flawed square structures define them, those who make real impact, those who do change the world, bringing incredible determination and strong implementable ideas to the table. I am after the real thing.

The day of the event she went up on stage with determination. Not the type of determination enhanced by titles of typical executives, but the kind, gentle and steel-strong kind of genuine determination that shows at first glance.  A young, strong, beautiful young woman with clear ideas, facts and incredible work done. Work that saves lives.

When people meet me the comment they often make is that they feel the energy and the passion I convey. When I later met her for an interview and sat next to her, I was taken aback by so much wisdom, energy, kindness, determination, passion and iron-will all packed into an incredible 28 year old Swiss woman.

I interviewed Liska Bernet on that November day after her TEDx speech, then again last week. I normally edit or add a few content hooks to my #FearlessFridays interviews but this time I will step aside and let her words and pictures speak for themselves.  She has had me glued to the spot every time. Enjoy the emotional ride dear reader.

 Q. Liska, can you tell us a bit about yourself?

Liska Bernet at TEDx Zurich in 2017

I’m a 28 year old Swiss woman currently living in Zurich with my partner. I finished my Master degree in International Development with a focus on humanitarian emergencies at the London School of Economics (LSE) in the summer of 2015. This was at a time when hundreds of refugees were making the perilous journey through the Mediterranean Sea every day. Many of them drowned and the rest was in desperate need of our help. And yet, the European response seemed lethargic. I felt shame, shame to be European, and realized I had to do something and take action. Over Facebook I connected with a group of people who were helping out along the Balkan route and shortly after I decided to join them. First, I went to Serbia and later to Lesvos, where I was confronted with a desperate humanitarian situation and with  police brutality against refugees. I saw that there were no big NGOs there and that the governments were just not there. However, in both places, there was a passionate team of strangers from all over Europe with a shared goal. They unloaded vans, prepared food, handed out winter jackets and shoes: students, retired people, mothers, truck drivers, doctors and bankers. And from there we started organizing ourselves. I was blown away by what we managed to achieve together while the officially appointed authorities barely showed their faces. And so I kept going – to this day.

Q. What did you do next?

Have a look at this picture of an official refugee camp in a European country in January 2017.

When thousands of men, women, and children arrived at the borders of Europe in 2015, I became part of a grassroots response to this European crisis. Because like many others, I just couldn’t quite comprehend that scenes like the one in this picture are really unfolding in our own backyard.

Over the last couple of years I saw many things I never expected to ever see in Europe. But what shocked me most were the conditions refugees were forced to live in.

I saw thousands of people sleeping on dirt soil, without shelter, water, or food. And I worked in camps where up to 6000 people shared 8 showers.

I have a background in development and humanitarian aid and I’m quite familiar with the typical excuses of why it takes three months to build a toilet or why refugees still live without proper shelter after two years. But none of these excuses really work in Europe. It’s a lot easier to ship a few containers of aid to Greece than to Syria. We have sufficient funding considering the number of refugees: in Greece, less than 1% of it’s population are refugees or people seeking asylum. In Lebanon it’s over 25% of the population.

The humanitarian system has been struggling and has been playing chess with politicians.

There have been some especially effective, scalable projects that manage to offer food, shelter, medical support and many other things for thousands of people- doing more with less. These projects and the people behind them are the grassroots response.

Q. What are their solutions? What do they do differently?

There are three takeaway lessons that we should learn from their efforts.

• Lesson Nr. 1: Put people first.

Traditional humanitarian systems are often based on a charity approach. They look at the people affected by a crisis as a beneficiary and not as a partner. The grassroots response grew out of solidarity. And solidarity means to work together and not for someone.

To give you an example:  in these pictures you can see a food distribution based on the logics of charity. This picture shows how bread is thrown out of the back of a truck. Whoever catches it, can keep it. Or below you can see how refugees have to stand in line for hours and hours every single day to receive their meals. And finally here you can see the meals. I’ll let you judge if it’s worth the wait.

Food distributions based on the logic of solidarity look different. In a community centre that we built in Athens - alongside refugees themselves, we built a kitchen where refugees cook food for up to 1000 people each day. And they decided to serve it restaurant-style because that’s more dignified than having to stand in line for everything. There is a lot more pride and dignity in empowering the people and the overall effect was happier, responsibility-taking people.

• Lesson nr. 2:  Change the dynamics of fundraising.

Big NGOs are often very funder-driven and often end up struggling with political pleasing exercises. In all this, they sometimes forget to engage with real people’s problems.

Grassroots groups mostly opt for crowd funding money for specific projects or to give directly to refugees.

• Lesson nr. 3:  It is 2018, not 1945. Digital engagement and social media do make an incredible tangible difference. Leverage it.

Slow, bureaucratic organizations often look like inefficient dinosaurs to a new generation of tech-savvy, entrepreneurial minds. Most members of the grassroots response grew up in a digital area and know how to leverage the speed and flexibility of our time. And because most of them don’t have a background in the traditional aid sector, they use methods and solutions that might seem quite unconventional for the humanitarian system - a system that hasn’t changed much since it was established after the second World War.

To give you an example, when I arrived in Lesvos in the fall 2015, hundreds of people were sleeping outside the registration centre in Moria. They were sleeping in the mud and didn’t have anything. Within a couple of weeks, we managed to build a well functioning camp for about 800 people. Though we were only a handful of people with literally no money, we had social media and we had technology. We used Facebook and other social media channels to get other teams and independent volunteers with relevant skills to come to Moria.

There was for example a group from Holland that usually works in the festival industry. They used their networks to get festival infrastructure shipped to the islands. Suddenly we had expensive high quality tents. Some of them also had very useful knowledge and skills regarding things like waste management and sanitary provision but also things like power, site lighting for safety or crowd control. I know it sounds ironic, but building a festival and building a temporary refugee camp actually has quite a few similarities.

Another team that usually runs a food waste catering business in England showed up shortly after and built a food tent. And within only a few days they established links with local supermarkets where they could pick up the food waste each evening and make it into nice meals.

One team even established a delivery system to bring items from the warehouses to the camps. The system worked a bit like Uber, except that it was free and that we used what’s app to ask for deliveries of the items we needed.

And now, not only in Greece, but across all European countries, people started countless initiatives to help newcomers find flats, jobs, bicycles and friends and all the other things we need to live a more or less normal, dignified life.

Q. What drives you every day?

Realizing that we have the capability of actually changing something if we have the courage to take action and to try is what keeps me going. This, and a massive need for action in this world. I’m extremely thankful that I found my passion at such a young age. When I went to Lesvos, I was thrown into a situation where I had to organize myself with others and start to build something very quickly. Every hour counted and there was no one who could tell you what to do. We just had to try. For me, this was a huge learning experience as I realized what we’re capable of, if we have the courage to just go for it. And it helped me to believe and trust in myself and my skills.

Q. There is a large debate going on around the future of work, talent retention and millennials values. What do you think the future holds for old school organizations ?

Many of the projects I worked in and co-established depended on a huge volunteer workforce - up to 150 volunteers per day. So you have to think about why people keep working for no money or only for a very basic income. Interestingly, quite a few people from the corporate world quit their jobs and decided to come volunteer with us instead. The same goes for personnel from the UNHCR or big INGOs. Our projects were always based on mutual decision-making and shared ownership. Of course this can be very challenging, especially when dealing with so many different languages – but the benefits of basis-democratic approaches and shared ownership are huge as well. People who could never voice their ideas in hierarchical top-down systems start to speak-up, to act and become agents of change. I think it’s very important to feel that you can make a difference with what you do. Innovative talents need work environments where they can contribute, collaborate, co-create. A work environment where their opinion is being valued and respected. Unfortunately, corporate environments are often the exact opposite of that – especially for women.

Q. What is next on your projects list?

I’ve realized that I want to keep building innovative bottom-up projects for humanitarian causes. There is so much work to do. We need to find ways that re-conceive displacement as possible win-win opportunity for host countries. This is what I’m currently working on – together with a great team -  a new impact start up organization, Glocal Roots focused on developing and supporting bottom-up innovation. The goal is promoting and enabling immigrants, supporting them from dependency to increased self-reliance, resilience, and development. The stakes are high: the success or failure of this transition can reverberate for years and in the worst cases for generations,  with strong repercussions on society. We want to have an influence on whether refugees become fully participating citizens who reach their full potential and contribute to their new society or remain in a poverty trap. Currently, we are working on our first projects in Switzerland, in Greece and in Lebanon. History speaks for itself, immigration is part of the human race, sadly we tend to forget that all of our ancestors, at some point in time, have been immigrants. Many of today`s first world countries are made of immigrants who at some point left their original countries and chose a new home, we have quite some interesting examples to look at.

(Those who wish to be involved with Glocal Roots can contact Liska directly, the support of bright minds and donors is very much needed.)

Q. Any final thoughts for the #FearlessFridays readers?

What we’ve seen in Europe over the past years will stay with us for a long time. Migration is not going to go away and people will continue to be displaced for different reasons. If we want to stop failing refugees, and our society and our children`s future at large, we need to come up with realistic solutions that work in today’s world. Solutions that are not based on old logics of humanitarian assistance and charity but on new practices of solidarity and autonomy. We need flexible funding and innovative, new ideas. We need solutions that reflect our Zeitgeist.

M. 

(info@smartbizhub.com)