Wealthtech and AI for increased financial well-being

UK FINTECH MISSION TO SWITZERLAND AND WESTERN EUROPE, 3 MARCH 2022

Financial well-being is defined as having financial security and financial freedom of choice, in the present and in the future.

This, today, matters more than ever. Governments, financial institutions and technology can play a critical role in improving financial well-being of customers and sustainability of economies, acting as a mechanism of sustainable growth and redistribution to improve challenges to society such as the gender pension gap or the effects of the great resignation, democratising wealth management and retail banking services, improving products and increasing financial awareness, while leveraging #tech, #data and #AI.

Find out more about our discussions on the status quo and possible ways ahead for wealth-tech, AI and increased financial well-being.

- George Quinn, Group CFO, Zurich Insurance Company
- Jane Owen, British Ambassador to Switzerland & Liechtensten
- Daniela Stoffel, State Secretary for International Finance at the Swiss Federal Department of Finance (FDF)
- Mike Freer, Parliamentary Under Secretary of State (UK Minister for Exports)
- Susanne Chishti, CEO & Founder FINTECH Circle
- Sabrina Del Prete, Founder and CEO at Kore Labs and Member of Board of Governors at the London Institute of Banking & Finance
- Azzurra Rinaldi, Director of the School of Gender Economics at the Unitelma Sapienza University of Rome
- Sabine VanderLinden, Co-Founder and CEO the Alchemy Crew
- Kyriakos Voutsas, Managing Partner at Accenture

Partners: The British-Swiss Chamber of Commerce, European Women Payments Network (EWPN), SkyParlour, FINTECH Circle, SmartBizHub GmbH, Polymath Consulting Ltd.

#FinTech Department for International Trade (DIT), Scottish Development International

Being Clearer About Development Times of Innovations - Horasis USA Meeting 2022

On March 4th, 2022, I had the pleasure to take part in the annual Horasis USA meeting, to discuss development times of innovation in a context I'd have never imagined when I first started to prepare for this panel.

On February 24, 2022, overnight, our world changed in a way no one could have anticipated: with Russia attacking the people of Ukraine, in violation of international law, and of human decency, causing a larger humanitarian crisis than the one the world witnessed during WW2. Since then, for many of us, daily discussions have refocused on questions such as "how can we help and stop this tragedy" and "what does this mean for our future and the future of our children" but also, "how can we live more sustainably and with less dependency"?

Today’s stress to innovate sustainably, moving away from fossil fuels, suddenly takes on a new meaning and invokes an urgency never seen before. While experts' discussions on nuclear power focus on the potential for magnetic confinement fusion to deliver safe and sustainable low-carbon energy, and governments prepare for a possible shift in our countries to war economies, we look back to understand our challenges so far and the typical human resistance to change and to adapt.

Volumes of psychological research have been published trying to explain how and why we so often miscalculate risk: over-preparing for things that are not likely to hurt us and ignoring or shrugging off the things that are.

When it comes to acting on problems, the lure of our comforts and conveniences has often caused us to act contrary to our #values, unless we were forced to act differently.

But today is different. Even as unthinkable events in Ukraine force the West to question its own strategy and politics, this time, instead of dividing and ruling, the Russian president’s unprovoked invasion of Ukraine has united Europe and the transatlantic sphere like nothing before: this time we must act in accordance with our values, and re-build a fairer, more sustainable world order based on true democracy and transparency.

View our discussion and find out more.

Italy - Strong and Resilient Recovery is Possible - Horasis Global Meeting 2021

On June 8th, 2021, the Horasis community gathered for the annual Global Meeting to navigate latest developments and discuss the post-COVID future. Under the theme “Fostering Shared Humanity”, over 1000 speakers and delegates debated how to be entrepreneurial and at the same time proactive in advancing sustainable development in the interest of the global public good.

What are the seedpods of shared solutions to solve the existential challenges facing business, governments and humanity at large? How to nurture the deep transformations our world needs? And how to ignite discourses on openness, fair globalization and equality?

I was delighted to curate and moderate an incredible panel and to discuss with leading professionals from the government and the private sector how a strong and resilient recovery in post-pandemic Italy is possible and is happening.

A little background first: Italy is the eurozone’s third-largest economy, and was the first European country to be hit by the pandemic in early 2020.

A recent New York Times article titled “How Mario Draghi Is making Italy a power player in Europe”, detailing how the Prime Minister is leveraging his European relationships and his solid reputation to make Italy a stronger force on the continent.

When in late March the EU was stumbling through a Covid-19 vaccine rollout coupled with shortages and logistical challenges, Draghi took matters into his own hands by seizing a shipment of vaccines destined for Australia – and showing that a new, aggressive and strong force had arrived in the European bloc. The Australia experiment, as officials in Europe call it, was a turning point, for Europe and for Italy. With Chancellor Merkel of Germany leaving office in September and President Macron of France facing very tough elections next year, Draghi seems to be poised to fill a leadership vacuum in Europe, showing that Italy is now punching above its weight.

On April 28th, the Italian parliament approved the ‘Italian National Reform and Resilience Plan”, which foresees reforms and investments to be implemented in the span of the next five years. With a total value of €235 billion, the Italian Recovery Plan represents the largest Recovery and Resilience Plan, as well as the one on which all eyes will be on.

In a short interview during the same month, Mario Draghi confirmed that Italy's 160% debt ratio, second highest in the euro zone but far from Japan’s debt at 200%, is not worrying because low interest rates, central bank support and the COVID-19 pandemic have changed the way markets view debt sustainability.

“Today’s eyes – he stated - see things completely differently, the pandemic has made it legitimate to create more debt, it has prompted the ECB’s strategy and driven the behaviour of those who make the rules in Brussels, however we must make a distinction between “good debt and bad debt”, what matters is that countries use debt for productive investment in order to create growth”.

Although since 1992 the Italian governments have had budget surpluses year after year, over the last 20 years, Italy has experienced a period of economic stagnation.

Most economists agree in identifying the cause of such stagnation in the decline of productivity, which in turn is largely driven by a series of structural deficiencies afflicting both the private and public sector.

To support the country’s recovery, in line with the EU guidelines, the investments and reforms foreseen by the Italian Recovery Plan are articulated into six major missions:

1. Digitalization, innovation, competitiveness and culture

2. Green revolution and ecological transition;

3. Infrastructure for sustainable mobility;

4. Education and research;

5. Cohesion and inclusion;

6. Health.

About 40 per cent of the Recovery Plan will be spent on green projects, and 27 per cent will be dedicated to the digitalisation of the Italian economy. The plan is heavy on investments to modernize, boost innovation and digitize Italy’s economy and bureaucracy and encourage environmentally sustainable development.

Bank of Italy indications of last week show production regaining strong momentum, fresh investments, and an accelerating economy, with a 4% GDP growth shown so far in 2021, up to 4.5% according to the OECD. Due to the pandemic, Italian companies and families have saved over 140 billion euros, or 9% of GDP. Something similar has also happened elsewhere in Europe.

On June 1st, during a public event, prime Minister Draghi said “Italy is alive, strong, and has a great desire to restart. The months of the pandemic were very tough but we are now facing a phase of recovery and trust, on which to build a fairer and more modern country. And to release the energies that have stood still in recent years.”

So, will a recovery gradually take shape and become as impetuous as data indicators seem to show? Can technology promote a new model beyond GDP to measure a modern country’s wealth and sustainability while guaranteeing sustainable development? Join our discussion and find out more, full session in the video below.

M.

(info@smartbizhub.com)

Women in Board Rooms Create Better Performance - Horasis Global Meeting 2021

On June 8th, 2021, the Horasis community gathered for the annual Global Meeting to navigate latest developments and discuss the post-COVID future. Under the theme “Fostering Shared Humanity”, over 1000 speakers and delegates debated how to be entrepreneurial and at the same time proactive in advancing sustainable development in the interest of the global public good.

What are the seedpods of shared solutions to solve the existential challenges facing business, governments and humanity at large? How to nurture the deep transformations our world needs? And how to ignite discourses on openness, fair globalization and equality?

I was delighted to be able to contribute to an incredible panel, chaired by Lisa Sennhauser-Kelly, with fellow-panelists such as Ayumi Moore Aoki, Anita Motwani, Nina Angelovska and Luisa Delgado, to discuss a theme on the global agenda: women on boards.

We fail consistently to meet targets for women on boards, in circumstances that damage organisational reputations and the opportunities offered by embracing fresh styles of leadership.

Having seen little progress with voluntary efforts, several countries have enacted legislation that calls for a minimum percentage of female directors. But is it working? Are we choosing the right candidates?

Board quality is dependent on board diversity – and for this, we need a combination of skills and experience. Diverse boards are less prone to 'groupthink' and more likely to embrace new approaches to meet threats and opportunities.

Women are a rapidly growing economic force in many leading and developing economies. In many countries women influence or control nearly three- quarters of household spending: without greater and more diverse female representation on their boards, companies are losing out on not only an important segment of talent, but on a critical marketplace perspective.

So what will it take to get more women on boards?

I am pleased to share the full session in the video below as well as my contribution to the topic.

1. What is your story?

I’m an advisor on social trends, economic impact and culture and expert in marketing, communications and public affairs, I’ve had a career in finance, and I’m passionate about diversity and responsible leadership. Over the past 20 years I have worked for both the private and public sector in Milan, London and Zurich.

I grew up in Milan, my husband is German so we have a trilingual household, and we currently live in Zurich with our 3 young children.

I’ve had a non-linear career by choice, which these days have become the new normal, and today I help organisations to build trust as social capital, as I believe that the social, economic, and environmental challenges of our time, truly require new approaches to leadership and responsibility.

My daily mantra at work is to foster and develop skills such as empathy, emotional quotient, ability to listen to what is not said, and to understand and analise society and its trends. I greatly admire companies that have a positive impact on society, that deliver responsibly and walk the talk when it comes to social development goals, diversity, gender equality, responsible and trustworthy leadership.

My advice for younger women who are starting today, for women who are struggling with work, from lack of recognition to impostor syndrome, is to choose very carefully the people you surround yourself with, there always needs to be a balance of give and take, but most of all, of mutual respect. So, find and use your voice, respectfully, but firmly. With your boss, your peers, your circles, your stakeholders, there are lines that should not be crossed and balances to keep at all times, this will actually earn you respect.

Also, one skill that takes time to learn and master is the ability to say no when something simply does not work for you.

Never stop learning, learn to zoom in and out, from the bigger picture down to the detail, and back, make plan A, B, C, and be ready to adjust over and over again. But most importantly, be curious, be open and enjoy the work you do.

2. What creates high performing boards? What are the leadership qualities required and what has gender to do with this?

Hundreds of studies on gender and leadership have found that at the individual level, men and women are close on most aspects of leadership potential, with no significant differences found for intelligence or general learning ability, as well as general leadership.

However, there is a female advantage when it comes to transformational leadership, a style that is linked to higher levels of team engagement, morale, and productivity, as well as effectively rewarding individuals for their performance. Also, men tend to lead more autocratically and are more likely to be laissez-faire leaders— a counterproductive leadership style. Women tend to be better communicators, have higher emotional intelligence, and lower levels of aggression, a pattern that is altogether associated with superior leadership capability.

So why do we need gender-balanced boards? Beyond fairness, increased gender diversity brings a competitive advantage to modern companies, which face extraordinary competition in an economy that puts an unprecedented premium on knowledge. Women comprise more than half of the pool of human capital. Companies that fail to fully leverage and draw from more than half of the pool risk losing an edge.

Also, companies better connect with their stakeholders – be it customers, employees, owners, and the communities in which they operate – when they have greater diversity, including on their boards.

There is very clear research from McKinsey, Credit Suisse and Catalyst that documents that companies with gender-diverse boards experience greater returns on equity, increased returns on sales and higher returns on invested capital.

So a high-performing board is one that generates and implements fresh and most inclusive ideas. When a gender imbalance exists, boards can easily fall into ‘group think’ and fail to see and account for perspectives that might enhance company performance. Great ideas can arise only when a diverse pool of thought is active and present at the table.

3. If women are drivers of higher performance, due to their skills and abilities, why aren't there more women on boards, what is holding us back? Are we holding ourself back?

I think that when it comes to women and leadership we should be admitting that often the world of work works against us. That, coupled with the lack of inspiring and diverse role models, and the fact that leadership today is much less meritocratic than we think, all that does not help women to move up through the ranks and into senior positions. We have too many systemic barriers and many unrealistic expectations.

The current barriers affect companies’ cultures and everyone working within it, women and men. To succeed, women have had to adapt, and this has proven increasingly difficult.

New role models to me 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, empowerment, and trust, helping younger generations of women and men to rise to become new role models themselves, leaders driven by strong soft skills, empathy and trust.

New successful forms of leadership do not take only one form, but all have a common denominator: emotional quotient and competence over confidence.

In general, women or men, I believe we should be very aware of how, often unconsciously, we fall for leaders who are confident, narcissistic and charismatic, we should instead promote people into leadership because of their competence, humility and integrity, incidentally – but proven- this will lead to a higher proportion of female leaders too. Falling for "charismatic" leaders can be very dangerous.

Also, to get better at choosing their leaders, companies need to change how leaders are groomed and promoted. These changes would not only allow more women to advance, they would help men who don’t fit our assumptions about what a leader “should” be. The result would be a rising tide of leadership competence that really would be good for business and help us moving towards more sustainable economic models too. But that’s a topic for another panel 

4. What are your thoughts about quotas, pros and cons and which way do you lean on this point?

I believe quotas are often the only way ahead, unfortunately. I used to be against gender quotas as I felt government intervention on this topic felt like we, as a firm, had failed as we had to comply with strict government policies. However corporate politics, bias, stereotypes, and dynamics in many countries, in many sectors, and in many firms are simply too difficult to overcome. Also, often quotas do not guarantee that we select the best female candidate for the role. And this can backfire against women, how many times have we heard “she only got the role because she is a woman”?

In 2003, Norway pioneered the use of gender quotas, requiring public companies to fill at least 40 percent of their boards with women. Otherwise, they would risk losing their board certification. Inspired by Norway, other countries, including Iceland, Spain, France, Italy, Belgium and Germany, soon followed suit by enacting their own targets.

By contrast, Britain avoided quotas when it launched an initiative back in 2011 to increase the number of women directors on boards. The effort not only boosted the representation of women directors without the use of quotas, but also dramatically decreased the number of all-male boards from 152 to none in the FTSE 100, and to just 15 in the FTSE 250.

So while the reasons behind the gender imbalance may be complicated, the solution does not have to be. Companies looking to diversify their boards should consider adopting the ‘Every Other One’ approach as somebody recently. Fill every other vacant board seat with a woman.

If this happened, company boards would reach actual gender parity within just a few years.

Companies also can – and should – expand the criteria for board directors to achieve parity. Corporate leaders should cast a broader net to include senior female executives with strong business track records.

Boards are increasingly recognising that gender diversity is imperative to successful business, but more action is needed. While some boards already have a substantial representation of women, and a number have been adding women, they must make it an ongoing priority to increase the number of women on their boards.

M.

(manuela.andaloro@smartbizhub.com)

OPEN GOVERNMENT - THE SILENCE OF EVENTS and the FUTURE of DEMOCRACY

by Manuela Andaloro with Dario De Lisi, original article by Manuela Andaloro published on Corriere dell’Italianita’.

On February 9, 2021, the European Parliament has definitively approved the “Recovery and Resilience Facility” to help EU countries face the consequences of the COVID-19 pandemic. It is the key instrument of NextGenerationEU to help the EU emerge stronger and more resilient from the current crisis.

This recovery and resilience device aims to mitigate the economic and social impact of the pandemic and make European economies and societies more sustainable, resilient, and prepared for the challenges and opportunities offered by green and digital transitions.

Each Member State shall demonstrate a strong sense of responsibility in efficiently using the funds, which are essential to steer the future of its nations towards greater economic, environmental, and social sustainability.

Among its various indications, the NextGenerationEU specifies that social entities and the civil society must be involved in the approval and management of the PNRR (Italian recovery and resilience plan).

By means of different platforms, the “Open Government” series – promoted by consultant and writer Manuela Andaloro – combines the voices of government leaders and civil society supporters to promote opinions, feedback, and contributions in the name of a transparent, participatory, inclusive, and responsible governance: the essential foundation for a strong re-start.

This week’s voice is that of Dario De Lisi, CSO, and lecturer at the IULM Communication School.

Manuela. Dario, the current crisis has brought each of us to face – from a social and psychological perspective – dimensions and situations we were not prepared for. The lack of certainty and instability continue to have a considerable impact on the international social fabric. From your point of view and considering the continuing crisis, what is your professional and personal experience, and what are your suggestions?

Dario. A certainty that, whether we like it or not, we need to deal with in this tragic moment is, quite literally, the suspension of time, mobility, and human contact beyond the strictly private context. An unprecedented situation that has led us to interiorize human, interpersonal, and social relationships. Silence and solitude have become empty spaces filled by fear and uncertainty. Fear of one’s inner self, with anxiety, preoccupations, and more rational fears arising from choices to make related to one’s job and the still-unknown challenges to face.

A silence worsened by unpreparedness before the deprivation of entertainment and leisure spaces.

A tragic error, resulting from a previously formed philosophy where the Arts, Culture, and entertainment – a word that nowadays brings to mind something short-lived and unnecessary – are the victims of a deep underestimation of their role and the relevance in our society.

Manuela. Has COVID thus become the litmus test of our attitude towards Culture?

Dario. We are constantly searching for answers. We are insatiable when it comes to titles, but increasingly struggle to find their meaning. We have become experts in classifying everything in convenient files: simplification reigns supreme over content. Summary paraphrasing is the answer to our ignorance. It shelters us from the unknown and from the effort that the concept of understanding something implies. This is what has occurred in the past few years to our perception of Culture, events, and everything that was easily taken for granted. COVID has lifted the rug and revealed that which was clear, unfortunately, only to few. A society that doesn’t understand culture is unprepared to deal with change. Our society is changing quicker than ever before.

Manuela. Experts often mention AQ, Adaptability Quotient, that our generations and society seem to be on one hand open and ready for – when it comes to the introduction of new technology in our lives – but on the other hand particularly resistant to – for instance when it comes to the so-called re-skilling and up-skilling. Are we thus a lazy and unprepared society that doesn’t know introspection?

Dario. That which we perceive of a show, an exhibition, or a concert is limited to a mere experience of pleasure. A single moment in which to enjoy a strong, involving emotional experience. Period. A way to create memories, once upon a time in our minds, nowadays increasingly more on Instagram. This is something we can give up in times of crisis like these. This would be mostly true if its meaning were limited to the above.

In reality, that moment or that apparently ephemeral experience has an irreplaceable impact on people’s ability to take on challenges, communicate, discuss, acquire a critical sense, know themselves, and manage their feelings or even their impulses. Moments and places that create identity: they are useful and necessary to build self-consciousness in a process of interpersonal sharing and debate. Isn’t this the very definition of a Society or rather a social ecosystem?

How can we possibly believe we will come out of a crisis as the one COVID has caused without needing a CULTURE-Vaccine and an EXPERIENCE-Vaccine?

Manuela. Research conducted by Ernst & Young on behalf of the European Group of Societies of Authors and Composers (GESAC) reveals how art has been literally devastated by the pandemic, with entertainment and music suffering losses up to 90% and 76%, respectively. In general, in 2020 the culture and creativity business has lost about 31% of its income, recording a net loss of 199 billion euros compared to 2019. Entertainment and music have definitely been the sectors hit hardest, but even the visual arts, architecture, advertising, publishing, press, and audiovisual sectors have plunged by 20-40% compared to 2019. The only sector to hold its own – probably due to the forced stay at home – was videogames (+9%). What is your interpretation of such data?

Dario. Impressive numbers that need to be given tangible, structural answers, long-awaited and yet to be seen. Numbers that conceal the total zeroing of one of the most important tools society has to evolve and improve.

Culture and events are like a thin, but always present line that permeates our society. A line that transcends time and is the endorser of new codes and technology. It travels across places, modifying them and making them increasingly accessible (see the Fuorisalone concurrent to the Milan Furniture Fair, as well as other exhibitions); it travels across people, evolving and modifying their perspectives, and it helps create a necessary value infrastructure to decrypt that which surrounds us, rather than being simple slaves or passive spectators.

The numbers describe the dramatic magnitude of that which we have always underestimated, identifying just how much this philosophy nurtures, guides, and steers business choices and models. Entire cities have changed as a consequence of the ecosystem that events have built around them. Entire generations have grown thanks to this great and complex Art environment.

Now more than ever, in a scenario where technology has literally invaded our everyday lives, often becoming the ends and not the means, we need models to comprehend opportunities and threats. Culture becomes the bulwark and the guiding star for our evolution. It makes development decipherable, sustainable, and democratic. Without it, it’s like returning to the jungle, at the mercy of the strongest. This is how things were pre-COVID, and it would have stayed that way, with the tacit consent of institutions and the even graver silence of its very actors.

Manuela. We have a unique opportunity for a strong re-start. Will the NextGenerationEU plan help remedy the deficiencies and mistakes of the pre-COVID era in this context? How do you believe a new basis deeply rooted in the value of expertise and transparency can be created?

Dario. By acknowledging that we live in a vulnerable world, dominated by atypical and often temporary forms of occupation mostly made of microbusinesses, non-profit organizations, and professional artists with a lack of methodology and very little training. People believe that creating events and arts is something you have inside, or that we are all Michelangelo. The market, new technology, and the industry’s numbers in Italy, Europe, and the World require, instead, an extremely high level of professional training, and in our country, we have only started to respond to this need in the past few years. It is only the beginning, but taking this path is necessary if we want this intricate supply chain involving hundreds of thousands of workers to grow and be recognized as a credible interlocutor before institutions and – above all – the civil society. Perhaps the tragic COVID crisis has made the very actors in the sector the first to come to terms with this enormous gap. Today the world of culture and creativity requires – even more than before – substantial public investment to face the ongoing crisis, but likewise, this world has the responsibility to bear the burden of our society’s future and help rewrite its paradigms. The future lies in skills, many of which are new and yet to be discovered, both in terms of their acknowledgment and as regards their interconnective value. The new digital native generations – perhaps more aware of the value of that which they’ve been deprived of and the repercussions on their future – are a priceless resource to drag this industry towards new horizons and new development models.

Manuela Andaloro with Dario De Lisi

(info@smartbizhub.com)

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Dario de Lisi

In 2003, he co-founded Centoeventi Srl, a business consolidated nationwide and specialized in innovative engagement formats and activities in the world of integrated communication.
10 years of Business Development have made it gain international experience in the communication industry by developing formats, strategic plans, and ambassador networks for multinationals such as PERNOD RICARD, JTI, BACARDI-MARTINI Group, FIAT, RED BULL, PANDORA, INBEV ITALIA, and CAMPARI. A strong attitude towards team management, problem-solving, and “THINKING DIFFERENT” has led him to be selected first as the NEW BUSINESS DIRECTOR at M.IN.I. Ltda., the Brazilian branch of Centoeventi, and then – upon returning to Italy – as the CSO at SG Company S.p.A. and Publishing Director of FOCUS ON, a b2b magazine dedicated to the communication world. The need to analyze and predict changes that our society and the communication world will be called to face post-COVID have pushed him to embark on a path of research and analysis, which he makes available as consultant and advisor. At the same time, he has always retained his position as lecturer at the IULM Communication School.

Towards Trustworthy and Responsible Leadership

Article originally published on Horasis.

On March 18, 2021, Horasis held its second digital Extraordinary Meeting, under the theme Rebuilding Trust. Thanks to the incredible work of Dr. Frank-Jürgen Richter, founder and chairman of Horasis, 1100 of the most senior members of the Visions Community – including several heads of governments and key ministers – offered the opportunity to shape the world’s agenda.

I was honored to be able to join an incredible panel, chaired by Metin Guvener with fellow-panelists such as Fahim Naim, Morgan Parnis, and Gary Shapiro, to discuss a vital theme for today’s societies: trustworthy and responsible leadership.

Many nations have noted reduced trust in the ability of political leaders to address the challenges crucial to our daily lives and our future. Cynicism about political leaders is running high, particularly when new pressures arising from globalization are making the involvement of government more important than ever. So how do we install trustworthy and responsible leaders with the inspiration and power to crack the issues that our nations need to solve?

I am pleased to share my contribution to the panel as well as the full session in the video below.

Metin: What is your personal experience and vision of leadership within the transforming world of families, business, politics, and communities locally and internationally?

Manuela: I have spent the past 20 years mostly in financial services, banking, media, and wealth management in Milan, London, and Zurich. Today I’m a consultant to the private and public sector on narratives and strategies around macroeconomic trends, social change, and digital transformation.

I’d like to briefly look back at previous generations. In the aftermath of the Second World War, my grandfather saw his country, Italy, transformed from an agriculture-based economy seriously affected by the world wars, into one of the most advanced and industrialized nations in the world, a leading G7 country. He went from losing two of his baby sisters to the Spanish flu to being able to thoroughly vaccinate his two daughters from birth. From his father’s horses to owning two good cars.

That generation had a very important skill. They had learnt to adapt to any life circumstance, they adapted to change, they trusted competence and institutions, they also had no option. Instead, what we see today at organizations or governments, or among citizens, is often a lack of trust and resistance to change. Experts measure this attitude in AQ, adaptability quotient, and our current generations are not scoring very high.

One reason for this, especially in recent years, can be found in the way information is shared, communicated, and consumed.

During the financial crisis of 2007-2008, I was working in London, the heart of the European crisis at the time.

The financial crisis didn’t merely have disastrous economic consequences, it also negatively impacted the public’s trust in the financial world, in corporations, and in governments, tarnishing their reputation and, as many believe, leading to the strong winds of populism we’ve seen in the past few years.

What went wrong? And what is still going wrong in today’s crisis?

The ability that was most tragically and dramatically lacking during the 2008 crisis – and is still somewhat lacking – was the ability to communicate specifically of industry and governments; to communicate the nature of the problem, what was at stake in terms of risks, and thus why, in America alone, it was necessary to spend $700 billion of taxpayers’ money to solve the problem.

In the light of digital transformation, current information and communication models must be adapted to meet the growing needs of a public – citizens, professionals, politicians, and academia – that has access to ever-increasing amounts of information, and often of fake news, but regularly little clarity and perspective on numerous issues.

In my view, trustworthy and responsible leadership is tied to strategic communication, and is vital for industry and governments. Not only does it have to convey goals, intentions and strategies to stakeholders and society, but it also needs to educate the general public.

Responsible leaders are unbiased thought-leaders to the extent possible on certain topics and must work to reduce fake news and speculation: governments and the industry have a moral duty to provide context and clarity by working together and keeping communication channels open with all stakeholders, including the media and influencers, to create mutual trust.

In the next 10 years, our democracies and the world at large have plenty at stake. It is a decade in which we will set and achieve crucial goals.

A new and strong model of responsible leadership, along with talent and excellence, will help to deal with the most urgent issues, in order to generate new waves of more sustainable and fair growth, capitalizing on essential emotional intelligence and people’s adaptability.

Metin: Mentorship has an important role in everybody’s life, and I know it is particularly close to your heart – can you please elaborate on how it has featured in your life both as mentee and mentor?

Manuela: Mentorship taught me both who I wanted to be and who I absolutely did not want to become. I had both examples of successful, emphatic mentors who were great leaders with a high EQ, and examples of arrogance. As a mentor myself, I have tried to use honesty and transparency as a baseline to show empathy, to tailor my awareness and understanding of situations based on how my mentee was experiencing them.

Mentorship has transformed me in the sense that it helped to see clearly what type of leaders are de facto able to have a positive impact on people, on society, and on our democracies, and those that were extremely damaging. In this sense, it has shaped my understanding of the bigger picture and the importance of what we call “soft skills”, which are the skills that are at the foundation of our societies, our governments, businesses, and that will get us through the next decade.

The popular press focuses on charisma as the mark of leadership, but history is full of charismatic leaders who attracted lots of followers and then led them in manipulative ways. 

Metin: Books played a deep and foundational role in your early life as a reader and for some of you, in later life as a writer – what book would you like to share with us today?

Manuela: As a writer myself, I get incredible inspiration from what I read. I have two recommendations, on very different themes.

 - “Quiet, the power of introverts”

By Susan Cain. The book raises awareness on how modern Western culture misunderstands and undervalues the traits and capabilities of introverted people, leading to “a colossal waste of talent, energy and happiness”.

In Western cultures, extroversion dominates and introversion is viewed as inferior. The book outlines the advantages and disadvantages of each temperament, citing research in biology, psychology, neuroscience, and evolution to demonstrate that introversion is common and normal, noting that many of humankind’s most creative individuals and distinguished leaders were introverts. Cain urges changes at the workplace, in schools, and in parenting.

- “The Entrepreneurial State: debunking public vs. private sector myths”

By Mariana Mazzucato, Professor of Economics of Innovation & Public Value at UCL. The book talks about the role of governments as drivers of excellence and innovation and describes the role of the public sector as a “top-choice investor” in the history of technological change. There is a plethora of examples of such, often in the US: just think about the favorable setting in which Apple itself was born and has become the colossus we know today.

In Italy, an important example in this sense is the Center for Convergent Technologies of Genoa, created by the Ministry of Finance 25 years ago. A great, high-class research center that has attracted and continues to attract foreigners and Italians, including returning expats.

Today, a comparable example may be the Human Technopole of Milan, the new Italian research institute for life sciences, created by the Italian government in synergy with the private sector, with the aim to become a leading European center of research, attracting national and international talent.

Metin: Having worked with a vast array of clients who have benefited from your strategic advice, vision, value, and voice, can you please explain your driving value proposition to organizations who want to transform their leadership in a trustworthy and responsible manner?

Manuela: I tailor business strategies and narratives at the intersection of macroeconomic trends, social change, and digital transformation, raising awareness and engagement for organizations, governments, and societies on their impact.

My key impact on organizations is helping them build trust as social capital. The social, economic, and environmental challenges of this decade require new approaches to leadership and responsibility. I support them in framing this need, creating the narrative and engagement, and supporting the latter with ad hoc strategies.

Some argue that those in authority positions within an organizational pyramid are the leaders of the organization, and that all that is needed to lead is for the followers to respect the authority of the position. This conception worked in the past, but works less and less in today’s organizations. We are seeing the decline of authority and the rise of trust as an organizing principle. To be effective today, strategic leaders need to combine trust with expertise and emotional quotient.

The definition of trust provided by the OECD Guidelines is “a person’s belief that another person or institution will act consistently with their expectations of positive behavior”. Trust matters for the well-being of people and the country where they live: there is strong evidence on its role in supporting social and economic relations. Trust between individuals and trust in institutions determine economic growth, social cohesion, and well-being. These are crucial components for policy reforms and the sustainability of political systems as well as industry.

Metin: What do you think is a characteristic that great leaders share, and conversely, a habit to avoid so you don’t become a leader who is not expressing full potential?

Great leaders leverage emotion and intuition, showing compassion, humbleness, and openness. They listen and empower, promoting common goals by inspiring a shared vision of sustainable prosperity. Moreover, they make digitalization and innovation truly happen, they innovate responsibly through emerging technology, they capitalize on expertise, intellect, and insight, and they are the first ones to embrace continuous learning and knowledge exchange.

A habit to avoid? I’ll quote Tomas Chamorro-Premuzic and pick the most dangerous: toxic charisma.

In times of multimedia politics, leadership is commonly downgraded to just another form of entertainment, and charisma seems a must to keep the audience engaged. However, the short-term benefits of charisma are often neutralized by its long-term consequences.

- Charisma dilutes judgment: There are only three ways to influence others: force, reason, or charm. Force and reason are rational, charm is not. Charm is based on emotional manipulation and, as such, it has the ability to trump any rational assessment and bias our views. 

- Charisma is addictive and research proves that it fosters collective narcissism. Especially in the era of social media.

 Experts recommend upgrading to a more rational and uncontaminated leadership model by:

1. Selecting leaders using scientifically validated assessment tools, instead of relying on “chemistry” or intuition. For example, narcissists tend to perform well in interviews, and confidence display is often mistaken for competence.

2. Fine-tuning politicians’ media exposure and airtime, which often make charismatic candidates look more competent than they actually are. This has nothing to do with limiting freedom of speech, but rather with tweaking and fact-checking content to provide factual and educational narratives.

3. Finding the hidden talent, avoiding the charisma trap. There is a universal management paradox whereby the people most likely to climb the organizational ladder do so because (rather than in spite) of character traits that impair their performance as leaders. This has been causing a considerable amount of damage at different levels and in all environments, we simply cannot afford it any longer.

Manuela Andaloro

(info@smartbizhub.com)

The perfect storm for a fresh start: brains, work, and responsible leadership

(Original article by Manuela Andaloro published on Corriere dell’Italianita’)

A new generation is paving the way, focused on the value of expertise and excellence, compliant with strong values and ethical principles.

Throughout the current health crisis, Italy has witnessed the phenomenon of ‘returning brains’, facilitated by progress in the digital world. The returning expats are figures with a high professional profile, much different to a counter-exodus of ‘economic’ migrants.

As recently reported by the New York Times, COVID has managed to achieve that which governments have not: bringing back ‘brains’ to Italy. According to the Ministry of Foreign Affairs, in the past year Italy has seen a 20% increase in returning expats compared to the previous year, with a growing trend in 2021 as well. Italy thus seems to have the opportunity to avail itself of the expertise and innovative spirit of talents that have acquired relevant skills and internationality. It comes to no surprise that business leaders in every sector are encouraging the government to not waste this chance.

The New York Times has recently documented the story of Elena Parisi, a mechanical engineer, who had left Italy 5 years ago – when she was 22 – to pursue a career in London. With the pandemic forcing all employees to work from home, like many compatriots she seized the opportunity to return to Italy. “Quality of life here is thousands and thousands of times better”, states Elena.

The virus has overturned a well-known and global phenomenon – brain-drain from Italy – and achieved that which years of incentives have failed to. Just how much the status quo will change and how permanent the new return trends will be are topics of debate, but something has indeed changed, and the numbers are strong and relevant: “The counter-exodus and ‘returning brains’”, headlined Il Sole 24 Ore newspaper in September. “Now the youth want to return to Italy”, confirmed Il Giornale di Sicilia. L’Espresso magazine has defined 2020 “the breakthrough year; the year of return”. Finally, Il Messaggero newspaper spoke of “Coronavirus, the turnaround of brain drain”, and exhorted legislators to find a way to retain “the extraordinary platoon of talent that has returned due to the emergency”.

The Italian government has positively welcomed the inverse flow of numerous brilliant minds. Paola Pisano, Minister of Technological Innovation in the Conte II Cabinet, stated that this trend is “a great opportunity”, and added that Italy shall now play its part to retain the talents who have returned or that will return.

Another ‘returning brain’ interviewed by the New York Times said, “I 100% embrace an American professional life, but I have a very Mediterranean lifestyle”. Roberto Franzan, developer and founder of successful start-ups in London, as well as a Google computer engineer, has come back to Rome in March. He stated that “This was very positive for me, and a large number of interesting start-ups and tech companies are blooming in Italy; I will probably invest in this country. This moment has given us all the necessary time to realize that returning to where our roots are may be an excellent move”.

I wanted to discuss this ‘breakthrough year’ and the consequent returning expats with two great professionals of the head hunting sector: Carola Adami, head hunter and co-founder of Adami e Associati, and Maurizia Villa, Managing Director- Italy at Korn Ferry International.

Let us begin with my conversation with Carola Adami, co-founder of Adami e Associati.

Dr. Adami, how have the trends and interests of numerous expats changed and how are they changing?

Carola Adami

True, the trends related to expats are undergoing very strong changes following the outbreak of the health emergency. But it is equally true that we are talking about trends in constant change, given that ever since 2010 our country offers substantial tax advantages for returning ‘brains’. Thus, a continuously mutating curve, which has undergone an even quicker transformation over the past few months. What we know for sure is that ever since March the will to return in one’s home country has augmented in a way that appears by all means unprecedented: from this perspective, the health emergency has had a stronger effect than the numerous tax breaks for returning expats.

The pandemic has had an extremely important role in the new behaviors of Italian expats, and has generated or incentivized a tendency towards return. COVID not only increases the number of professionals who decide to come back: it also modifies the reasons for such. Just consider that – up to 2019 – 1 in 3 expats stated to be willing to repatriate only if certain to be assigned a more prestigious position. Today, on the other hand, over 80% of young Italians working abroad are stimulated to return to Italy given the desire to be closer to their loved ones – a factor that normally would have never been so determining. Moreover, in certain cases the health crisis has pushed – or is pushing – towards a return due to the feeling by such workers to be safer in Italy.

Let alone the ‘classic’ reasons that have – even in the past – incentivized a re-entry of expats, we may certainly state that two factors have had a fundamental role: the strengthening of tax incentives to attract ‘brains’ drained abroad; and of course Brexit, with its destabilizing impact.

Our point of view grants us a rather solid opinion of what is occurring, based upon contact with the expats we have gotten to know in the past few months. It is a fact: starting in the spring of 2020, replies to job postings in Italy by expats who have – at the very least – mulled over the idea of making a return have increased more than significantly. True, there has always been a certain interest for professionals working abroad towards the more prestigious positions opening up in Italy. Today, though, the percentage of ‘drained brains’ that assiduously monitors new opportunities in our country is considerably higher. Moreover, it must be underlined that professionals who have spent a few years abroad quite often have an added value to offer to Italian companies.

Our country is witnessing a strong buzz around digital transformation, with a large number of companies searching for talents able to help teams deal with such transition: in a certain sense, you can say that the demand for certain profiles has increased, and professionals who have had the chance to work at the most advanced companies in the digitization process may now make the best of such important work experiences.

Is it true that Milan sits on top as it appears in real estate market research?

Our recruitment agency works in Italy and even in foreign countries, but given it is Milan-based, it has a special awareness of this reality in particular. Of course, the health emergency has transformed and will continue to deeply mutate this city, but its attractiveness in the professional world will most likely not suffer strong downwards variations. One thing is for sure: the extensive increment of smart working and its likely partial continuation in the future tends to eliminate the tight relationship between the company and the worker’s permanent address.

Thank you, Dr. Adami.

Let us move on to my virtual coffee with Maurizia Villa, Managing Director- Italy at Korn Ferry.

Dr. Villa, what is the current scenario of movement of Italian ‘brains’ (whether never ‘drained’ or returning) and the job market in Italy for international medium-high and high level profiles? 

Maurizia Villa, Managing Director, Korn Ferry

There had been signs of this occurring for years now. Signals by Italian talents that showed interest in returning to Italy. From the Brexit onwards, most of all, we have witnessed an exponential growth of returning ‘brains’, concerning different job positions, interests, and demands, but with the common denominator being the acknowledgement of a higher quality of life in Italy, along with a better work-life balance, which goes anywhere from the relationship and education factors, to the cultural and even logistics corollaries. Lest we forget, Milan enjoys an excellent geographic position, between the sea, the Alps, the lakes, and the hillside. Moreover, what a large number of returning expats have in common is the awareness that a globalization deficit – especially in terms of workforce – makes a return to Italy become a capitalization of market knowledge, a substantial part of which includes relationships, brand positioning, and so on. The ideal recipe is a combination of value and experience gained abroad, and an Italian market knowledge.

Italy is growingly appealing, even for private equity funds, which see great potential in the country. At the moment, Italy has one of the best tax frameworks for both international talents and returning ‘brains’.

In the past few years, we have noticed a strong interest by senior professionals – even foreign – in a seat on Italian boards. There is often still a language barrier – especially with the older generations – but this is not an obstacle for new generations, although it is true that an effort by international professionals to understand Italian is still appreciated.

Another crucial topic is the value of expertise: we have made it become a mantra, a matter of primary importance. At the moment, the market is very active in finding both traditional profiles and ones more skillful in the technology, innovation, and digital fields: in such contexts, expertise and experience are everything, it just cannot be made up.

Then there is the topic of diversity and gender equality. Governance is once again key, and in this field there is yet a good amount of progress to be made. The matter is not to increase the number of women, but to improve the role of women on boards of directors and make sure they are heard by management. In this respect, we cannot afford to provide consultancy services to encourage validation and not real contribution; it doesn’t make sense to consolidate this tendency.

Finally, the methods of operation are vital: a disruptive leadership is required. We shall leave behind the vertical models. The new generations want to be capitalized on and given value: we need versatility. We live in a world where predictions are short-term, there is a lot of unpredictability, thus it is very important to increase the number of less rigid and more agile professionals and personalities in companies. Smart working has been a testing ground for this: it has made the true resilience and expertise of numerous professionals emerge.

 It is decisive to have an attitude that we call cross-fertilization, cross skills. The working world is increasingly dynamic, thus it is positive to look holistically at the skills and experience of talents. We have taken completely unexpected steps in this direction, by working and pushing customers to be brave: the ability is to put together specialists on different fronts and break down barriers. The value achieved and brought to the table when a company does this is extremely high.

What advice would you give to a returning expat?

 You have a myriad of opportunities to bring your skills to and invest in the relational recovery of the Italian market. Think about mid-size companies with a strong need for new methodologies and new, international experience. My advice is thus to come back home!

Thank you, Dr. Villa.

Conclusions.

So, what are the vital foundations upon which to build the future of our country and, in general, of our democracies? How may we best seize the opportunities offered by the ‘perfect storm’ that seems to have developed in favor of a strong fresh start? The direction is clear: a maximization of Italian talents – either returning or that never left, giving them a loud and at the same time measured power of speech, leveraging serious information, culture, the ability to sit at negotiation tables and offer ideas and solutions at all levels. We need to restart with occupation and responsible leadership.

A new generation is paving the way, focused on the value of expertise and excellence, and compliant with values and strong ethical principles.

A key element emerges from the numerous conversations I often have with entrepreneurs, business leaders, and government representatives. The key element for the future of the country – and, generally speaking, of liberal democracies – is responsible leadership: a process of interaction with stakeholders that orbits around a shared goal, and that takes place at companies, in politics, and in one’s social context. It is based on ethical standards and values.

Accenture has developed an enlightening responsible leadership model based on 5 elements, which in my opinion are applicable to the corporate, business, government, and social contexts. Let us see what they are:

• Stakeholder inclusion: safeguarding trust and positive impact for all by standing in the shoes of stakeholders making decisions, and fostering an inclusive environment where diverse individuals have a voice and feel they belong.

• Emotion and intuition: unlocking commitment and creativity by being truly human, showing compassion, humbleness and openness.

• Mission and purpose: promoting common goals by inspiring a shared vision of sustainable prosperity for the organization and its stakeholders.

• Technology and innovation: creating a new organizational and societal value by innovating responsibly through emerging technology.

• Intellect and insight: finding ever-improving paths to success by embracing continuous learning and knowledge exchange.

In the next 10 years, our country and the world have plenty at stake. It is a decade in which we shall set and achieve crucial goals. A new and strong model of responsible leadership, along with talent and excellence, may help deal with the most urgent issues, so as to generate new waves of more sustainable and fair growth, capitalizing on essential EQ (emotional quotient) and AQ (adaptability quotient) skills.

This is the time to act. This is the time of expertise.

Manuela Andaloro

Towards purpose-driven capitalism: how the relationship between ESG, business, society, and data will take center stage this decade.

Last week I had the privilege of moderating one of the most important events in the annual calendar of Swiss and Austrian financial institutions and UK-based leading FinTechs: the UK FinTech Mission to Switzerland and Austria 2021.

On 28 January, 2021, the UK FinTech Mission to Switzerland and Austria, organised by the British Embassy in Vienna and Berne, the UK Department for International Trade, and Scottish Development International, brought together – virtually, for the very first time – high-ranking government representatives, Swiss and Austrian financial innovators, successful UK FinTechs, and famous leaders for a thought-provoking panel discussion.

Strong numbers behind a successful platform: The driving forces that helped shaping success

Over the past few years I’ve witnessed the UK FinTech missions establishing themselves as a powerful platform and event within the European FinTech landscape, offering leading decision makers a grand stage to meet innovative UK FinTech companies. The numbers? The three previous events generated over 65 million euros in signed business and provided a strong business platform for over 600 attendees and through 300 one-to-one meetings.

High-ranking government representatives such as Leigh Turner, Her Majesty’s Ambassador to Austria, and Jane Owen, Her Majesty’s Ambassador to the Swiss Confederation and non-resident Ambassador to Liechtenstein, as well as Noel McEvoy, Director of the UK Department for International Trade and Scottish Development International for Switzerland and Liechtenstein, and senior representatives of the British Embassy of Berne and Vienna, are the driving forces behind this success. During the 2019 Mission, upon being asked why such events generate such great interest, Jos Dijsselhof – CEO of SIX and one of the Mission’s partners – stated, “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.”

The government role

The 2021 UK FinTech Mission started with an extremely interesting update by Ambassador Turner on the status quo of both the FinTech industry in the UK and on the future opportunities in the new Brexit era.

HMA Leigh Turner, Ambassador to Austria

UK FinTech attracted $4.1bn in venture capital, second only to the US in 2020 at a global level. Worldwide FinTech investment reached $44bn – an overall increase of 14% from 2019. The UK led European FinTech investment, accounting for just under half of the total $9.3 billion, and with more deals and capital invested than Germany, Sweden, France, Switzerland and the Netherlands combined. Importantly, investment backing for female founders in UK FinTech grew to $720m in 2020, accounting for 17% of total investment – an increase from 11% of the total in 2019.

In terms of UK strategy in financial services, the country is set to invest £45m to support additional PhDs in artificial intelligence and related disciplines.

With regards to the UK-EU TCA, agreed on Christmas Eve and which entered into force on 1 January, affecting Digital Services and Financial Services, Ambassador Turner confirmed that the UK’s aim through the negotiations was to agree an FTA which promotes financial stability and provides a predictable and business-friendly environment for firms to undertake cross-border financial services. Specifically with regards to “Digital Services”, the UK and the EU have agreed on a modern digital trade chapter, whose important commitments include: maintaining zero customs duties on electronic transmissions; keeping source code safe; protecting consumers online; and providing a legal framework for common e-signature and trust services.

HMA Jane Owen, Ambassador to Switzerland and Liechtenstein

Ambassador Owen continued by confirming the active efforts to keep supporting the best of UK FinTech, despite the difficult circumstances that 2020 brought. The demand in Switzerland for collaborations with UK FinTechs has been steady. With regards to the Financial Services framework, complete continuity of the only FS arrangement that Switzerland has with the EU was secured. On 30 June, Chancellor Rishi Sunak and Federal Councillor Ueli Maurer agreed to commence work on the most ambitious commitment ever made by two countries to develop an international agreement on financial services. The Joint Statement signalled the UK’s ambition to continue to cement its role as an international financial centre; it is an agreement on the country’s vision of the world economy as open, global and free – a vision shared by Switzerland. On 8 September 2020 the 4th financial dialogue between the United Kingdom and Switzerland focused on the ambition set out in the joint statement looking to further deepening the collaboration in financial services, including sustainable finance & women in finance. Ambassador Owen confirmed the Embassy’s, the DIT’s and SDI’s willingness to provide advice on the market, on trade agreements, and on general business enquiries, working together and acting as a bridge to a common platform.

What’s on the horizon for the FinTech industry, big data and ESG?

Panel discussion with (left) Fiona Frick, Dr. Antonios Koumbarakis,, Chris Skinner, Katherine A Foster, Pietro Carnevale, Manuela Andaloro

The Mission continued with thought-provoking discussions that took place on the virtual stage, with an incredibly knowledgeable line-up of top experts in their respective fields, such as:

• Chris Skinner, Author and FinTech expert

• Katherine Foster, Expert Consultant on UN Dialogue on Big FinTech & SDG Impacts, and Executive Strategy Officer at the Open Earth Foundation

• Pietro Carnevale, CEO of House of Insurtech Switzerland AG of Generali

• Fiona Frick, CEO, Unigestion

• Antonios Koumbarakis, Head of the Strategic Regulatory & Sustainability Team, PwC Switzerland

• Manuela Andaloro (moderator), Senior Advisor on Macroeconomics and Social Change, SmartBizHub

The panel’s goal was to portray the latest trends shaping the world of FinTech and their adoption: in particular, intelligent automation and Big Data impacting professionals and customers, green FinTech contributing to achieving environmental goals, and the role of governments in driving progress forward.

The relevance of the link between sustainability, finance and technology has been emphasised by the COVID-19 pandemic crisis, which has urged all countries to re-think the models traditionally deployed and rely more on technology and sustainability.

BIG DATA AND INTELLIGENT AUTOMATION

Manuela (moderator): According to a recent IDC study, the global revenue for Big Data analytics is expected to hit $260 billion by 2022. However, customer protection is a very debated area which presents risks related to data protection or data inaccuracy. What solutions have been deployed and are planned to overcome the risks posed to customer protection and to avoid wrongful assessments?

Chris: Big Data is like cloud computing: a massive space, a bucket of all sorts of things, and the granularity that is underneath allows us to delve deeper and deeper into different applications and use cases. In my opinion, Big Data wraps everything up alongside data analytics. From artificial intelligence, to machine learning, to deep learning and more: we are seeing numerous uses of this now, primarily in financial services for risk and management and fraud analytics, and maybe not enough for customer intelligence services, which is quite interesting. For example, I’ve spent a lot of time working with Ant Group, and what is interesting about what they do is how they use artificial intelligence for deep analytics of customer lifestyles. Some would say it’s creepy because you are intruding into people’s lives; others would say it’s fine because the customers give them permission. So I think the real discussion is around data analytics, which I know they’re going to get into. I might be digging too deep here, but what is important is to find the balance between tracking and tracing people’s digital movements versus being creepy. You have to have a customer agreement to allow you to track and trace those digital movements, and that’s where Big Data and data analytics is getting interesting.

Pietro: I don’t see us, 10 years from now, going from the actuary and broker to deploying AI bots only. When it comes to Big Data and data protection, I would probably separate two concepts: exploration phase vs. deploying solutions for the end consumer. In the exploration phase, innovation labs and sandboxes are the keys to create a safe environment to learn what this new technology can bring. Another important aspect is combing traditional pricing optimisation with more customer lifetime value analytics. As for data protection, as a regulated industry this is very important. How do we get the data and create trust? Transparency is fundamental. Sometimes we think too much about data rather than who we get the service to: what added value are we selling? If there’s value, the customer will give access to the data.

Manuela: Beyond the sheer amount of data available today, how are the patterns in that data used, how incisive and available to investors and the industry are they?

Fiona: As asset managers, there are new sources of information to take investment decisions. During COVID, if you were looking at official data, you wouldn’t catch up on what is going on with the economy. You would be able to do that if you looked at the media, at companies announcing that they are going into lockdown, etc. So that is one aspect of Big Data we’ve been integrating into our systems. Another key aspect is ESG: the world is changing, and when it comes to firms and investment decisions, we need to look increasingly at how companies score on social matters, and on the sustainability matrix, what is their biodiversity, and so on. Big Data gives us new sources of information that we didn’t have in the past.

Antonios: ESG data will play a big role in the future. New patters regarding carbon footprint are being developed and will come into force along with EU taxonomy guidelines. Data analytics will increasingly provide information that can be applied from a risk management point of view as well as on dedicated ESG components: this will lead to further innovation and a new product-service offer.

Manuela: Let’s talk about the ethics of Big Data and intelligent automation. What are the risks for the financial landscape and its ecosystems when culture and biases are not taken into account? Can technology amplify prejudice? Will GAFAM and other big tech players increasingly play a role?

Katherine: Most of the dialogue is about the impact on individuals. There are possibilities for discrimination. But again, these focus on direct impact on clients. We need to consider inherent biases on culture. How our biases evolve in our little ecosystem. The integration of these technologies in our businesses, the way they are deployed at a large scale, also warns attention. What we’re seeing in terms of the impact of big FinTechs is that they bring financial inclusion on one hand, but they also have a broader impact that goes beyond our regulatory space and lens. It’s about ensuring diversity, ethics, and understanding the overall culture and business models we are putting in place.

Fiona: It’s not AI that creates the bias, it just tries to find a relationship between sets of data. As humans, we need to be able to add this long-term perspective. We have to be sure we have enough sources of data to put into our systems. As for ethics, there seem to be different committees now that measure these aspects and unintended consequences, and try to find solutions.

Chris: Far more worried about fake news and deepfake videos. Phishing scams are getting more and more convincing. When you amplify that into someone that looks like Manuela but is actually not you, and pretends to be working for a bank etc., that’s a lot more worrying.

SUSTAINABILITY, GREEN FINTECH, GOVERNMENT, REGULATION

Manuela: We know that the combination of sustainable financial services and digital technology (green FinTech) looks particularly promising, and in the past few months we’ve witnessed how governments have implemented new initiatives to promote and support sustainable FinTechs. What is your view on the status quo when it comes to green FinTechs, and where do you think we should be heading? Katherine, you mentioned for example the need to merge the separate tracks of FinTech, green finance, and emerging tech for SDGs and climate, could you explain in more detail? What tangible opportunities are there for FinTechs?

Katherine: I did a research on ecosystem readiness of FinTech across four countries, adopted by the UN taskforce. What we found is three avenues of innovation emerging from the finance sector: what we call FinTech, green financial products, and emerging tech for sustainable development and climate. The new methods to understand and measure impact are a really important opportunity that sometimes gets omitted or put on the sidelines of this dialogue.

Antonios: There is a lot of green washing in the market. We need clarity, transparency, and comparability. In this context, the European Union is of course leading the way with taxonomy, and moving in the right direction. What are the correct patterns when it comes to ESG? Big Data plays an important role; this data has to be interpreted. We have to create incentives, encourage companies towards more innovation.

Manuela: What will the future hold? How influential is the EU policymaking for Green FinTechs?

Chris: One of my next projects is a publication around the theme of “digital for good”. New companies are very purpose-driven, their culture is established by the founders who are often Millennials and Gen Z. That is the driving force around the next generation of finance and technology, and it is going to be strongly focused on how to do better for society, being driven by stakeholder capitalism and not by Milton Friedman economics. That’s very much the agenda that is currently being discussed in Davos, but also the one that young people buy into. There is a major movement towards purpose-driven capitalism. If companies don’t stand for something, they don’t stand for anything, and they will fall down. They have to stand for something. The whole ESG agenda and relationship between business, society, and the planet is going to be front and centre for this decade.

Manuela: Pietro, you work with many young entrepreneurs, what is your impression?

Pietro: Let me start with a quite idealistic concept about this topic: to me, economic growth must equal value creation. The foundation of these efforts must be sustainable, otherwise it’s bubbles. It’s my personal view: as a society, we are evolving, but it took a while. A few decades ago, we knew about this problem, and we thought that someone else would take care of it. I think more and more, I sit with start-ups, but also at large institutions, and we are shifting sustainability from being a side topic to being a core concept. This is a powerful element for sustainability, it is the footprint of what we do. Is it going to happen fast enough? Will it just give us a few more years? We don’t have a plan B, so whatever time gained is better than no result at all.

Katherine: I would like to echo that. I’ve been working with lots of start-ups over the past year. I agree, and I think it has to go beyond. What is interesting in the start-up space is that on one hand we are embracing sustainable development as an opportunity, but on the other we are mimicking the Silicon Valley model. That’s starting to change now, and Europe has been a leader in this. One piece of advice for FinTechs: we sometimes think of innovation as young, but it is also good to go with some incumbent knowledge here, it’s essential to understand what data barriers there are, as well as the regulatory space. It’s about having a much more holistic approach.

Fiona: One of the biggest threats and biggest opportunities for the environment is data. I would say that for FinTech in the future it will be really important to create an environment where investors like us can have a conceptual view of what good looks like and what bad looks like. It’s very difficult for investors to ensure their impact based on sustainability ratings. An MIT report from last year, for example, showed how difficult the correlation of sustainability ratings is. Take an example like Tesla: depending on how you measure the environmental footprint, it can be viewed as the best company or the worst, due to the difficulties of battery disposal. It is hard for us to find a link between what we are supposed to do with regulations and the practicality of actually implementing them.

Antonios: Indeed, how sustainable is Tesla in reality? This can be questionable, because of its overall environmental footprint. When it comes to data that helps us assess, we have several data providers, and have seen quite some consolidation lately. The problem is that all these companies have different methodologies, which brings us to the question: what kind of data should be used? In addition to this, we see that a good system relies on several data suppliers. We are now in a transition phase: how will we take this forward, for example when it comes to private equity companies where there is no data available for transparent assessments?

RETHINKING MODELS, SUSTAINABILITY, IMPACT CAPITALISM, DATA

Manuela: So, the COVID-19 crisis has urged countries to re-think models and reward systems where firms that demonstrate social and environmental integrity are more successful than those that don’t. Capitalism and democracy are being challenged, we face new social and environmental issues daily, so it seems imperative for leaders to examine the impact of their organisations and adapt it. In this changed world, can we talk about “impact capitalism” that increasingly aligns the private sector and government, harnessing capital and innovation to solve social and environmental issues? Are there new methods and approaches to understanding and measuring impact?

Pietro: Increasing the collaboration between start-ups and incumbents. We should almost go from Silicon Valley to Napa Valley. Another point: individuals, start-ups and incumbents need to come together. If we can apply the teachings of the COVID crisis now, carry such teachings to 2022 and tackle the sustainability issue, it would be good.

Katherine: How and what are we measuring? It’s also about a lot of this measurement being voluntary. What I found in my analysis is that it’s not even just about green washing {…} Amazon, Tesla, etc. are tech companies that happened to start doing finance. We are only measuring the core business they are doing. We also need to look at the invisible space of FinTech overall.

Chris: Everything is now generating data. From a sustainability viewpoint, farmers’ fields now have chips measuring the weather, the way in which the wind is blowing etc.: all of that information is creating new business models. In finance, most of the big banks were caught by surprise by the pandemic and lockdown. All their employees and customers were at home. Their model had to move from big head offices to everyone working from home. What they did was that they found agreements with cloud companies. The same is true for every company: we have to rethink the whole structure of our operations. The longer we hesitate, the fewer opportunities we have to save this planet.

Manuela: With regards to rethinking models in the name of sustainability, leveraging technology and regulation, what is your prediction for 2021 and for the next 3 years?

Pietro: Globally, we will be quite busy tackling this emergency. Let’s hope that 2021 will be the last year of this pandemic. We need to take all the teachings of this emergency and get it right in terms of sustainability from 2022 onwards.

Antonios: We will realise that this is the new normality.

Katherine: I think we’re going to see the US and European regulations align more on sustainability. I think the ecosystem approach that is more common in Europe will also be applied to start-ups. I think the philosophy we have in Europe is going to take hold; this notion of ecosystem building and supporting start-ups in a holistic manner.

Manuela: What are the next biggest challenges we see in our future (fake news etc.)? How can we stop this and gain control?

Chris: Revolution in a society with technology, where things change really quickly. Some people are really on the edge of technology, and some people are really frightened. With COVID, we can see that those that are really dependent on technology are fine, whilst some others like restaurants, aviation, etc. are not so fortunate. The more interaction via video, the more possibility there is for hacking and criminals stealing things. It used to be that people were robbing bank branches, now it’s people hacking bank websites. There have always been criminals and there always will be.

Manuela: One key takeaway for FinTechs here today?

Fiona: Huge need of coherence and finding new paths to sustainability. It would make sense for FinTechs to enter that space. There is a lot to develop in that space.

Katherine: I would echo that: the time of open platforms and open innovations is here. There is the sense of competition that we are used to with FinTechs, but there is also space for collaboration.

Pietro: Sustainability through cooperation perhaps?

Manuela: For investors out there?

Pietro: Shorter, positive, mid-term. But there is much uncertainty.

Antonios: Combining sustainability and technology is a big business opportunity. Recovery of the economy after COVID should be long-term. Perhaps there are the next Roaring 20s ahead of us when we recover?

Katherine: Look for other species rather than unicorns, and remember the importance of cooperation.

Fiona: Traceability and making sure the company is part of an ecosystem.

We have a unique opportunity to create a more sustainable world. Businesses and governments must be the driving force of excellence and innovation. Corporate social responsibility and philanthropy are very important but no longer enough, as often discussed during our panel, if you want to exist as a company in the future, you have to go beyond that and make a positive contribution. It’s time to step up to the plate.

M.

(info@smartbizhub.com)

To watch our panel discussion: https://dit.webex.com/dit/lsr.php?RCID=f20b357b51d24743a3daaa758293c1a0

Password: VpgMQEv7

UK FinTech Mission 2021: (left) Katherine A Foster, Manuela Andaloro, Pietro Carnevale, HMA Jane Owen , HMA Leigh Turner, Chris Skinner, Fiona Frick, Dr. Antonios Koumbarakis

Partners: The British-Swiss Chambers of Commerce, Disruption Banking, SkyParlour, Polymathconsulting, European Women Payments Network (EWPN) and FinTech News Switzerland

THE VALUE OF EXPERTISE.

(Original article by Manuela Andaloro published on Corriere dell’Italianita’)

We may build our future by means of strong synergy between the public and private worlds. But especially through talent attraction, returning expats, and the reinstatement of the value of expertise.

Susan Morgan, a consultant at EU DisinfoLab – an independent non-profit organization which sets to un debunk disinformation campaigns occurring in the EU – has recently published a paper  (Fake news, disinformation, manipulation and online tactics to undermine democracy) in which she underlines how information and communication technology has swiftly changed in the past 20 years. A key development has been the rise of social media, which – once a useful means of staying in touch with friends and family – have turned into tools with a significant, growingly negative impact on society. Social networks are used in ways that shape politics, business, world culture, education, careers, and innovation, whilst undermining – in the name of an erroneous illusion of a democracy of opinions – the value of expertise. As we see every day, this is causing an incalculable damage.

We are experiencing a radically modified media scenario, in which technological platforms receive most of the advertisement budget once restricted to the traditional news media – a sector regulated by laws and managed, in most cases, by certified professionals or field experts, unlike what most often occurs with social networks.

There has thus been an exponential growth of what specialists call attention economics; namely, the remarketing of human attention, the access to the audience’s minds, and the sale to advertisers. A strategy that gives rise to deep questions on news and contents that people access, and doubts on the actual understanding of this new scenario in which disinformation proliferates beside traditional journalism.  

In this context, we are all observers of the currently existing mechanisms of constant manipulation of public opinion and loss of the value of expertise. Just think about attacks on science, “haters”, and the propagation of fake news in 2020, which have grown by 460% compared to 2019.

It is evident that our society can no longer afford a “democratization” of skills and knowledge, nor to mistake a supposed “freedom of speech” for a systematic and extremely dangerous manipulation of public opinion.

In the context of recent research on European expats who choose to return to their home countries due to the pandemic, populism, and the Brexit, I had the chance to investigate the Italian market, and in this context, to have interesting conversations with some of the top experts in the executive recruiting field.

We know that the COVID crisis seems to have played a crucial role in the return of expats, in combination with the recent fiscal policies implemented by the various European governments – very favorable as far as Italy is concerned. Yet, the talent flow trend seems to have more distant origins, and cover a longer time period. Milan has become the main post-industrial Italian city; a magnet that has attracted young, talented men and women, not only from Italy but from the whole of Europe and beyond. A city that has become an economic behemoth, with its market growing by 20% in the past 15 years, and even the target of foreign investment, with billions of euros offered to infrastructure projects and prestigious service enterprises, a luxury homes segment that so far despite the Covid crisis, has held better on prime properties than Paris and New York. A working reality based on innovative companies involved in technology, finance, pharma, and research; a city capitalizing on Italy’s reputation as a place of technology, art, design, pharma, finance, and trendsetting fashion.

Midway through December, I had the honoUr of grabbing a virtual coffee with Nicola Gavazzi, Country Manager-Italy for Russell Reynolds Associates, to discuss current trends in the job market, as well as returning expats, Italy’s attractiveness for international talents, but even the status quo and expectations for the future.

Q.         Dr. Gavazzi, what does the framework of current Italian ‘brains’ (either never ‘drained’ or returning) and the Italian job market for medium-high and high-level roles look like?

Nicola Gavazzi, Country Manager Italy, Russell Reynolds Associates

A.         “Italy is well-positioned on the European stage. In terms of attractiveness, the North offers good public services, with the fiscal aspect having given a good hand in this direction. The fact that in the past few years Italian companies have become finally interested in welcoming talents that are not only Italian – thanks to the average employee, especially in the new generations, speaking much more English than in the past – is a fundamental facilitator. Fortunately, today the current generation working at a professional level in both tongues (English and Italian, ed.) often has important roles. This affects a number of areas: for instance, certain board meetings currently take place in English only, although the minutes are often still written in Italian, and the supervisory bodies prefer the native tongue. But the times are changing, and the next step will be the double language as a standard in every context. This will open new doors, and improve showcase potential for both companies and professionals.

From our own point of view, we deal with rather high-profile market segments and figures: talent flow of foreigners in corporate top management has not undergone particular variations; it has always existed, thus it is normal that a candidate is chosen regardless of his passport or language in numerous sectors from pharma, to fashion, to finance.

The Italian job market is appealing: considering the outlook of most influential European countries, the main destinations for a flow of expats and talents will be Italy and Germany, given the issues such as Brexit in the United Kingdom, the limits of the French tongue for top roles in France, and the different, fragmented situations that the Spanish market has to offer.”

Q.         The stability of the Country and its political system, the responsiveness of its health system, its social cohesion, and the diminishment of damage caused by populism for its own sake are fundamental for every nation, and directly proportional to the level of national and international investor trust. What is Italy’s current status quo in this sense? And which condition might be sought?

A.         “I recall the discussions made with private equity funds – firms with a strong interest in investing in Italian SMEs – in 2018; they stalled following the 2019 elections, which saw strongly and dramatically populist political entities gain considerable presence, and instigating catastrophic desires such as the exit from the EU or the euro. Luckily, the situation lasted less than a year, and the newfound stability of the past 18 months has opened the doors to significant investment flows. Moreover, the economic and social disaster that Brexit has brought is now clear to all: it is a scenario that every EU country will wish to avoid. Instability and populism give rise to fear: fear by investors, managers, and companies cause long-term damage to the entire country and to every social class.

In the past year, there has been a strong recovery and a considerable renewed interest and stability by numerous investor types. But at a global – and not only Italian – level, the instability caused by winds of populism is a risk we still run, and that we fear more than anything else. Just think about the numerous Italian companies that invested in Turkey before the rise of the current government, and no longer do so for ethical reasons, but also because of an unappreciated atmosphere that has come about in the country.

A world without theatrical populist leaders will offer greater success to all, and this goes for every single country.

As for Italy, lately a positive factor has been a – objectively speaking – good management of the pandemic, and a stable and sturdy government after all, which will now hopefully resist and carry on.”

Q.         We should all thus work to disassociate ourselves from our easy, old, and often untrue stereotype, to find a greater tactfulness and common vision on topics that – when torn out of their context and used as propagandist machines – damage our nation’s image. What do you think about the employment opportunities that will be created thanks to the Recovery Fund?

A.         “If it is suitably implemented and structured, it will magnetize numerous investors, both national and foreign, and create thousands of jobs, thus boosting the appeal of the country by talents, businesses, and investors even more. It is a kind of new-millennium Marshall Plan.

An important example in this sense is the Center for Convergent Technologies of Genoa, created by the Ministry of Finance 25 years ago. A great, high-class research center that has attracted and continues to attract foreigners, Italians, and returning expats. It has worked hard to allure talents from research centers all over the world, stating very transparently that the center not only makes funding available, but even the possibility to manage such funds independently.

Mariana Mazzucato, Professor of Economics of Innovation & Public Value at the University College London (UCL), and Founding Director of the UCL Institute for Innovation & Public Purpose, provides an important opinion of the role of governments as drivers of excellence and innovation in her acclaimed book “The Entrepreneurial State: debunking public vs. private sector myths”. She exquisitely describes the role of the public sector as a “top-choice investor” in the history of technological change. There is a plethora of examples of such, often in the USA: just think about the favorable setting in which Apple itself was born and has become the colossus we know today.

Nationally, a comparable example may be the new Human Technopole of Milan, the new Italian research institute for life sciences, created by the Italian government in synergy with the private sector, with the aim to create a center of research to stimulate cooperation and bring an added value to the Italian and European research ecosystem thanks to an interdisciplinary approach, attracting national and international talent.

Therefore, trust, image, and stability are crucial in an age that may go down to history as the country’s great occasion for redemption, after the disasters caused by 1980s administrations.”

Q.         We know there is a strong will to restart; there is optimism, given the vaccines and their successful response to eventual new mutations, and the macroeconomic conditions that are gradually panning out. The political climate will greatly affect any scenario, and will be the litmus test of economics and social progress. Nonetheless, disinformation platforms continue to pose a strong threat to democracy and society, and seem far from being effectively regulated by governments. What is, in your opinion, the key factor that businesses have the duty to leverage on, and that each of us has the responsibility to promote?

A.         “I have no doubt about this: the recovery of the value of expertise. Which also involves controlling disinformation, as well as the perceived – but misleading and false – idea of the democratization of knowledge. Science, for instance, is not an opinion, and we cannot allow any ordinary citizen to express his/her opinion on a social network with the same power as a luminary with 30 years of experience in the field: there is very little democracy in this; quite the opposite. I remember what a dear friend – the CEO of a top company, in one of the most successful sectors in the country, and also involved in politics – told me years ago: thanks to the rise of certain populist parties, he found his janitor, with no experience in politics, elected as a government deputy.

This regression towards mediocrity, and towards the loss in value of acquired skills, must be absolutely stopped.”

Let us thus highlight a globally widespread phenomenon: the decline in value of expertise in a community that questions the words of specialists in any field more and more.

Tom Nichols, an expert sociologist and author of “The Death of Expertise”, clearly describes this, when he says that every day “we are witnessing the death of expertise: a Google-fueled, Wikipedia-based, blog-sodden collapse of any division between professionals and laypeople, students and teachers, knowers and wonderers”, drenched with opinions on scarcely regulated social media. “The knowledge of specific things that sets some people apart from others in various areas [will continue to exist]. There will always be doctors and diplomats, lawyers and engineers, and many other specialists in various fields. Rather, what I fear has died is any acknowledgement of expertise as anything that should alter our thoughts or change the way we live”.

 It is thus time to act. It is time for each of us to take specific responsibilities and contribute, with each of our skills, to the future narrative.

 Manuela Andaloro

(info@smartbizhub.com)

(Original article by Manuela Andaloro published on Corriere dell’Italianita’)

Italy - the extraordinary kingdom of misconceptions

The era of the Italian stereotype has to end: it is time for healthy revisionism.

(Original article by Manuela Andaloro published on Corriere dell’Italianita’)

We have seen it all – from Madonna’s T-shirt to videos showing gesticulating Italians, from the passion for fashion and elegance to the idea of the most passionate language in the world, from the idea of not knowing how to drive to that of being noisy or mammoni (mama’s boys), from the concept that it is always hot in Italy, to that of being very friendly, from the passion for coffee, to cooking, to the idea that the country is bankrupt or is full of mafiosi.

In 2015, a few months before the World Expo took place in Milan, the Italian government presented in Davos a video with a strong impact on the erroneousness of many, too many, stereotypes about Italy, aimed at highlighting the strengths and debunking some of the main clichés about Italy. The video “ITALY THE EXTRAORDINARY COMMONPLACE” refutes stereotypes about Italy and tells the country as it is: a major producer of technological goods, the second European exporter in the mechanical and automation sector.

The Oxford English Dictionary defines a stereotype as the simplified idea or image of a particular type of person or thing. Often, stereotypes are referred to erroneously to make sense of a complex and multifaceted world. Yet these prejudices can become oppressive, wrong and even very harmful, and do not help to understand the facets of a society, a country, a culture and an economy.

There are many stereotypes and myths related to the Italian economy. Recently, the authoritative German weekly Der Spiegel published an analysis by the famous columnist Thomas Fricke who addresses Italian stereotypes and discusses in no uncertain terms the great question of the Italian public debt, perfectly explaining the thirty-year virtuosity of the country.

What is the status quo?

The Italian economy is the third-richest of the European Union, and Italy is one of the founding members of the European Union, the Eurozone, the OECD, the G7, and the G20.

In the aftermath of World War II, Italy was transformed from an agriculture-based economy that had been severely affected by the aftermath of the world wars, into one of the most advanced nations in the world, and a leading country in world trade and export. According to the Human Development Index, the country enjoys a very high standard of living and has the eighth highest quality of life in the world according to The Economist , has the third-largest gold reserve in the world, and is the third net contributor to the budget of the European Union. In addition, private wealth per capita is one of the highest in the world among advanced countries and second in the EU (sources: Wikipedia and Credit Suisse).

Der Spiegel's analysis impresses with its precise clarity. Frike writes:

“Maybe it’s a consequence of so many Mafia movies. Perhaps it is simply envy that Italy has better weather, better food, more sun and more sea. Something, however, must explain this preoccupation with pointing to the fact that the Germans would be more prudent, more serious and more reliable. And in this regard show the inadequacy of Italy”. These few lines would be enough to disintegrate decades of prejudice, but Fricke continues.

Quoting economist Antonella Stirati of the Roma Tre University, he explains that “if you do not calculate the interest payments, since 1992 the Italian governments have had budget surpluses year after year”. In short, the cancer of debt made us stop spending, rather than having an attitude to waste: “Dolce vita? Nonsense. Since 2000, Italian public investments have fallen by 40%, a collapse regulated by law. Public spending has stagnated since 2006. In Germany it has increased by almost 20%”.

A warning to Germany follows: “It is not a direct fault of German politics. Clear. But the time has come to stop with erroneous teachings, and to contribute to the repair of the disaster”. The reference to the twenty-year-old guardian of German finances (and of European rigor) serves to invoke a healthy revisionism: “Perhaps to save Europe first of all we would need new experts in Germany”.

Words of great clarity from such an important newspaper, which confirms that Germany is not a monolith but a great country that knows how to discuss itself. And the great leader who guides the country knows how to modulate the steps forward with wisdom, determination and rationality. (Sources: Der Spiegel, Corriere della Sera).

Up close.

I have lived abroad for 15 years, after 26 years in Milan, I lived for 5 years in the United Kingdom and I have lived in Switzerland for 10 years, I have a German husband and a bi-cultural, tri-lingual family, and of course I have heard every obvious falseness and stereotype based on absurd and erroneous clichés. I have chosen a selection of funny anecdotes that over the years I have experienced or was asked, mostly absurdities with ironic implications but based on a profound lack of objectivity, understanding and respect for a country among the 7 richest and developed in the world.

1. Is it true that Italy is as corrupt and dangerous as Brazil?

Like many with an international background, I have witnessed corruption phenomena in equal measure in Switzerland, the UK and Italy. The statistics speak for themselves, as well as human behavior studies: if you still associate the mafia with Italy then you have no clue of what happens in the world. In Rio de Janeiro – a city I visited and found fascinating – neither private cars nor taxis stop at red traffic lights, because the risk of being attacked, robbed, kidnapped or worse, is commonplace. In Italy the maximum risk at the red light is that your dashboard is washed. Italy is a G7 country, among the 7 richest countries in the world, highly industrialized and according to The Economist among the 8 countries with the highest living standards in the world. As confirmed by Investopedia among others, Brazil is not a developed country. Although it has the largest economy in South America, Brazil is still considered a developing country due to its low GDP per capita, low standard of living, high infant mortality rate, and other factors.

2. But the country is bankrupt and in recession.

This is a common misconception, and a very serious one. The country, as confirmed by the famous Der Spiegel, is not bankrupt, far from it, and has been avoiding recession for years thanks to leading sectors such as luxury and the Made in Italy sector. Since April 2020, due to the COVID crisis, the entire planet with the possible exception of China has been in recession as explained in detail in an interesting article by la Repubblica on the subject.

3. Can you sunbathe on the terrace in Milan in December?

Question truly asked to me by my Swiss midwife after the birth of my first child in mid-November. I was advised during the upcoming Christmas holidays in Milan to absorb vitamin D in a t-shirt from the terrace of my parents’ house. Milan sits at the foot of the snow-capped Alps and in the winter it records average daytime temperatures from -2°C to 5°C.

4. The cross-border workers are desperate.

I will not get into the merits of an issue that is difficult to manage and which must be understood from multiple points of view, but I shall limit myself to pointing out that the GDP of Lombardy is equivalent to that of Switzerland, and that only Porta Nuova of Milan is the richest business district out of all European cities, with a GDP of 400 billion euros in 2017, more than Israel’s GDP, and comparable to the GDP of Ireland and Peru, respectively the 47th and 48th richest countries in the world (see the global list here). Cross-border commuters move due to the attractiveness of tax regimes, which are in turn used by Swiss-based companies to carry out little appreciated wage dumping at the expense of the local population. This happens with cross-border workers from Germany, France, and Italy. Unfortunately, the famous saying of the full bottle and drunk wife is not feasible even in Switzerland.

One of the main problems? Italians.

I could go on with the funny anecdotes but let’s address one of the salient points of the stereotyping issue: Italians. Italians residing in Italy or Italians residing abroad who in large numbers, systematically, unlike what their Swiss cousins do for cultural reasons, not only do not paint the complete picture of a country that unwillingly or willingly has stood out for decades and perhaps millennia, but they seem to be the country’s worst detractors.

How many times have we heard compatriots complain about dynamics or even denigrate the country, based in turn, very often, on false, incorrect or stereotypical notions and on lack of knowledge of the realities of other countries? The damage done to the image of an entire country, of an economy, is incalculable. As comedian Enrico Brignano said in his show a few years ago “The worst detractors of our country are us, Italians, but with destructive pessimism you can’t go anywhere. Even with all the defects we have – common to every country – this world without Italy would be worse”.

So what can we do to reverse the trend? By reading up, educating ourselves, and only then expressing our opinion based on actual facts, social and economic indicators, as Thomas Fricke teaches us. It would also not hurt to cultivate a little bit of healthy – long forgotten and feebly rediscovered during the COVID crisis – national pride. Take it from me, not only the neighbor’s grass is not greener, it’s often only painted in shiny propagandist colors. 

M.