Latest news with #financial sector
ABC News
23-07-2025
- Business
- ABC News
Can customers trust how banks are using AI?
ING's Australia's chief executive Melanie Evans responds to ASIC's warning that the banks can't afford to get the implementation of artificial intelligence wrong.
Mail & Guardian
23-07-2025
- Business
- Mail & Guardian
South Africa must unlock financial sector for growth, says African Development Bank
The African Development Bank (AfDB) says South Africa's well-developed financial sector has the potential to be the continent's powerhouse. The African Development Bank (AfDB) says South Africa's well-developed financial sector has the potential to be the continent's powerhouse if structural constraints are addressed. 'South Africa has a well-developed and large financial sector with an asset-to-GDP ratio of 88%, well above that of most emerging markets. The financial system consists of banking institutions, pension funds and a dynamic stock exchange,' the bank said Accounting for 20% of GDP, the country's financial sector provides broad access to financial services. More than 90% of the adult population uses formal financial services, with 81% holding bank accounts and 78% using non-bank financial institutions. 'The country needs a concerted focus on enhancing domestic capital mobilisation, more efficient public expenditure, and a stronger overall business environment to unlock greater investment and foster sustainable growth,' the AfDB said. It urged the government to follow through with plans to enhance business growth by reducing red tape, fostering a supportive environment for small and medium enterprises, improving infrastructure, strengthening multilateral cooperation, clamping down on crime and promoting skills development. 'While the financial system is stable, non-performing loans rose from 4.7% of total loans in 2023 to 5.7% in 2024 due to weak business growth. Household financial distress from rising interest rates since late 2021 has led to mortgage defaults, but easing borrowing costs are expected to support the sector,' it said. The development bank forecasts that South Africa's real GDP growth will remain subdued at 0.8% in 2025, with a likely uptick to 1.2% in 2026, depending on 'improved energy supply, freight rail and port management'. It identifies some of the continued domestic risks as 'ongoing infrastructure deficits, unresolved problems in electricity provision, 'South Africa is one of Africa's most dynamic economies, underpinned by a diversified economic base, strategic geographic location and ongoing commitment to structural transformation,' the report said, noting however that economic growth has underperformed in the past three years to 2024, averaging 1.1%. Factors such as China's economic slowdown, geopolitical tensions, climate vulnerabilities and trade disruptions are projected to further add uncertainty to the country's growth outlook. The AfDB highlights strengthening institutions as essential to improving tax administration, corporate governance and capacity-building to make full use of natural, human, financial and private sector capital. Although the country has many advantages because of its location, targeted training, regional staff exchanges and international collaboration are vital to improving performance and resilience. 'GDP growth The bank said South Africa's income inequality remains among the highest globally, with a Gini coefficient of 0.67 recorded in 2018. 'Government spending remains highly redistributive, with up to 61% of the budget allocated to the social wage — spending on health, education, social protection, community development and employment programmes,' the report said. South Africa funds about 'To meet its Vision 2030 targets and the sustainable development goals, South Africa requires about $254 billion to $329 billion in financing for transport, water and sanitation and education between 2022 and 2030,' the report said. Inefficiencies in public spending and underuse of business and natural resources limit the country's financial capacity. 'Unlocking South Africa's natural capital requires good governance, stronger institutional coordination, adherence to the rule of law, infrastructure development, and capacity development,' the AfDB said.
South China Morning Post
20-07-2025
- Business
- South China Morning Post
Hong Kong's future lies in being the finance launch pad for tomorrow's tech
For years, Hong Kong's policy narrative has leaned heavily into national security. From the national security law to Article 23 legislation, the emphasis on stability and control has reshaped the city's global identity. But with geopolitical tensions showing signs of stabilising, the moment is ripe for a strategic shift. Advertisement The next global chapter isn't just about containment and scarcity, it is also about creation and abundance. The rise of artificial intelligence (AI) and digital platforms means abundance can be more evenly distributed, turning technological promise into tangible benefits for both urban centres and rural communities. Hong Kong's future lies in becoming a launch pad for the financial engines of the new technology economy for the next generation, from deep-tech funding to AI-powered green finance. Just as steam power revolutionised Britain's industrial landscape, today's equivalents – batteries , nuclear power generation and solar infrastructure – are poised to redefine global growth. These are not niche technologies; they are the backbone of a new era. Battery development is triggering a transformation across supply chains, from rare earth extraction and refinement to mobility and storage solutions. Hong Kong's financial sector should be underwriting this revolution, crafting instruments that support cross-border logistics and deep-tech ventures. Nuclear power, though politically sensitive, is likely to remain essential to clean energy. Small modular reactors are gaining traction globally, and Hong Kong could position itself as a financing and regulatory sandbox – a neutral and welcoming playground for capital and collaboration. Advertisement Solar power , meanwhile, presents a different opportunity. It is the fastest-growing energy source globally, abundant and safe when compared to nuclear, yet free from strong strategic entanglement. As major nations consider industrial policy, they often weigh whether a sector is strategic, profitable and winnable. Solar technology and production is arguably geopolitically frictionless and commercially scalable. Financing this sector is something Hong Kong can do well.
Japan Times
18-07-2025
- Business
- Japan Times
Mizuho partners with SoftBank on AI to boost efficiency
Mizuho Financial Group said Friday that it has signed a strategic partnership agreement with SoftBank to introduce cutting-edge artificial intelligence to streamline operations and improve customer service. Mizuho will be the first in the financial sector to introduce "Cristal intelligence," which is being developed jointly by SoftBank and OpenAI, the U.S. developer of the ChatGPT generative AI tool. Mizuho expects the latest AI technology, which optimizes corporate tasks, to help the company increase revenue and cut costs, resulting in positive effects totaling ¥300 billion by fiscal 2030. Using the technology, Mizuho plans to analyze transaction data and market trends to quickly provide corporate customers with management advice. The financial group also expects the technology to help boost productivity in its sales activities more than twofold and reduce low-value operations by up to 50%. Mizuho and SoftBank will also conduct research and development on a large language model dedicated to the financial sector.
Bloomberg
15-07-2025
- Business
- Bloomberg
Singapore Central Bank Sees Slower Financial Sector Growth
Singapore will likely see slower growth in its financial sector in coming years as a confluence of trade and geopolitical tension clouds the economic outlook for the trade-dependent country, according to the central bank. While the sector advanced by 6.8% in 2024, more than double the 3.1% growth reported in the previous year, growth is not expected to 'continue at the pace of the last few years,' Chia Der Jiun, managing director of the Monetary Authority of Singapore, said at the central bank's annual briefing on Tuesday.
