Manish Kohli: HSBC is a major player in the open-banking and open-finance ecosystem. We’re the world’s largest transaction bank and have a global footprint that spans the numerous jurisdictions and clearing systems that are driving the open-banking agenda.

We are reengineering our processes by integrating advanced digital solutions, from automated cash management to robust API connectivity. So we automate manual processes and integrate systems to improve efficiency and risk management.

Collaboration is key, because we see open banking as a catalyst for a more client-centric ecosystem. This collaboration starts with our clients as they help shape our product-development road map.

We also collaborate across clients’ treasury tech stacks and have live API integrations with partners such as SAP, Oracle, Kyriba, and FIS. This ensures we are providing clients with an end-to-end solution and staying focused on incorporating technology into payment solutions that support our clients and their treasurers with the real-time information they need to make more-informed cash management decisions.

GF: What is HSBC’s strategy for incorporating emerging payment technologies such as digital currencies—including central bank digital currencies (CBDCs)—andhow do you see these impacting your payment solutions?

Kohli: Whilst CBDC maturity varies greatly by market, it will play a critical role in the payments solutions of tomorrow, which is why we continue to research, test, and invest with various central banks globally.

Currently, HSBC is involved in pilot projects with central banks in markets including the UK, France, Singapore, Hong Kong, China, Thailand, and the United Arab Emirates, and with the Bank for International Settlements’ Project Agorà. 

Our tokenization platform for digital bond issuance, Project Orion, has led the way in the digitalization of capital markets infrastructure. HSBC was also one of the first financial institutions to complete proof-of-concept use cases within the Project Ensemble Sandbox, the Hong Kong Monetary Authority’s CBDC project to accelerate tokenization.

GF: How is HSBC utilizing data analytics to gain deeper insights into customer behavior within digital channels? And how are you using these insights to drive innovation in client service?

Kohli: We process numerous transactions per second, generating a wealth of data. This data is used not only for retrospective analysis but also in real time, powering intelligent payments solutions. The insights gathered from millions of transactions help us to not only improve our own processes but deliver tailored, actionable advice to our clients ranging from choosing the fastest or cheapest route for international payments to risk-mitigated strategies for currency management.

Our innovative analytics tools can detect when a payment is made in an alternative currency. This allows us to offer customers the option to secure the best rate. The use of AI and API integration further ensures that insights derived from data immediately support payment decisions.

We’ve established a dedicated Treasury Solutions Group, which conducts gap analyses and recommends best practices to improve treasury operations.

GF: Beyond incremental improvements to existing digital channels, what “moon shot” or disruptive digital banking or payment solutions is HSBC investing in?

Kohli: We don’t underestimate the importance of incremental improvement, given that we operate in a heavily regulated, market-driven ecosystem that spans numerous regulators, central banks, and payments partners.

We are focused on building innovative solutions that enable our clients to transform in the digital economy. In recent years, we’ve made significant investments to develop digital solutions that help accelerate the pace at which money moves globally. Our most recent innovative solution, Digital Merchant Services, has enabled HSBC to become a digital-merchant acquirer for cards, local e-wallets, and real-time payments, helping our merchant clients with seamless payment collections at scale and to grow their business efficiently.

We’ve invested $30 million in building a next-generation liquidity engine, and our use of AI allows us to provide real-time, data-driven insights during transactions. For example, through FX Prompt, our systems can instantly advise customers on the best currency option, ensuring they secure the most favorable rates, making our payment solutions smarter and more agile. Tomorrow’s moon shots will be the result of ongoing collaboration with numerous stakeholders in the ecosystem, persistent investment, and continuous R&D.

Michelle Knowles: Innovation in Africa has created a more inclusive and efficient financial ecosystem by driving economic growth and empowering emerging populations. At Absa, our solutions help our clients’ businesses grow so that the communities where they operate can thrive. We believe that innovation will further help support African trade, which also enables economic growth.

GF: Where does technology and innovation have the biggest impact within finance?

Knowles: Digital banking solutions have opened doors for millions of people who lacked access to traditional banking services. AI and machine learning help analyze patterns, detect anomalies, and prevent fraud more effectively while enhancing our sustainability efforts. Seamless digital platforms like our Trade Management Online channel are a game changer, elevating customer service while enhancing user engagement.

GF: What makes Absa different from its competitors?

Knowles: Absa has a client-centric, digitally enabled model. Preparing for the “client of the future” means continuously enhancing our capabilities and access points through APIs and online and mobile platforms, providing tailored service options to our clients, and sharing and leveraging industry research and insights.

We are a data-led, customer-focused business, and by streamlining our products in different markets, we create a consistent experience for customers across Pan Africa. Our technology, products, and processes facilitate access to trade finance, which is key to facilitating trade flows. Technology investments like APIs and the ability to collaborate closely with key fintechs help us with the much-needed digitization of trade finance and to future-proof our trade finance systems.

GF: How is Absa innovating in trade finance for Africa?

Knowles: By automating and streamlining processes, Absa can significantly reduce costs and increase the availability of financing for businesses. Our digitization strategy for trade finance includes a client portal built on open-source architecture so that the bank can integrate with various ecosystems through APIs, ensuring efficient connections with strategic partners and systems. With big data and AI, we are optimizing key processes, automating compliance checks, and enhancing risk management. Absa also collaborates with development finance institutions and fintechs to digitally transform trade finance and ensure that innovative technologies are effectively implemented.

GF: How are you working with African entrepreneurs?

Knowles: There are several promising opportunities, particularly in areas that address key challenges and leverage the continent’s unique strengths. The Youth Entrepreneurship Programme, a collaboration between Absa and the Young African Entrepreneurs Institute, is a flagship initiative designed to bridge the gap between young innovators and opportunities so they can establish thriving businesses. The program offers business advisory support, skills development, mentorship, and funding to help youth transition from innovation to formalized businesses.

Also, Absa Bank Zambia’s Mosi-Oa-Tunya Innovation Hub serves as an incubator for local businesses in that country’s the tourism and agriculture sectors, providing training, mentorship, and digital tools to help entrepreneurs develop their products or services.

GF: How does Absa use technology to overcome business challenges?

Knowles: Facilitating access to trade finance is essential for supporting African trade and crucial for trade flows. And trade finance has consistently been a fundamental component of Absa’s transactional banking services. Absa continues to observe growing demand for its trade finance solutions and has intensified its efforts to become a leading provider of trade finance across the continent.

Additionally, Absa supports the African Continental Free Trade Area (AfCFTA) agreement, which is a vital step in increasing intra-African trade. We understand that digitizing trade finance helps us expand and simplify access to finance. To date, Absa has implemented Trade Management Online, a secure online banking platform where clients can initiate, receive, and manage the complete lifecycle of trade finance products and services.

We have also provided meaningful efficiency gains and improved risk management by, for example, integrating Optical Character Recognition and workflow automation into our processing systems. This has significantly reduced manual intervention, improved turnaround times, and enhanced the accuracy of documentation handling. Our digital and data-led approach to risk management enables us to proactively monitor exposures, client behaviors, and trends, which empowers our teams to make faster and more informed decisions.

Thomas Cowan: One difference is that once you’ve completed that due diligence and you’ve put the asset on-chain—as a NFT that is mapped to the violin—all that information remains encapsulated in the NFT: the violin’s history, its former owners, etc.

GF: And that makes it more easily traded?

Cowan: The next person won’t have to do nearly as much diligence, because they will have the history already on-chain. You end up saving a lot of costs on the due diligence side, because the source of truth and the source of record are fully on-chain, already there.

Another advantage is transparency. Minting a publicly recorded NFT on the Ethereum blockchain [as happened with the Stradivarius] ensures a verifiable, fraud-proof record of ownership and provenance.

GF: By tokenizing a 300-year-old violin that once belonged to Catherine the Great, what financing opportunities do you open up?

Cowan: Owners can unlock liquidity without necessitating a sale if they convert the asset into a digital token. The violin can then be utilized as collateral. This can fundamentally transform the way these assets interact with financial markets.

GF: Can tokenization make global finance safer?

Cowan: Think back to the situation before the 2008 financial crisis, when you could buy into a mortgage-backed security pool, but you didn’t know the performance of the underlying loans. Well, with tokenization, you see every single underlying loan. If I’m buying a senior tranche of a debt pool, I know exactly what that risk looks like because I can see every single loan.

GF: What were the key challenges in making this project happen?

Cowan: The legal aspects were a hurdle. With a traditional IPO or a bond issuance, you have the legal documents, which are pretty standard across the industry. It turns out there are no standard legal documents out there for violin tokenizations. So, we had to really start from scratch.

GF: What are some other areas ripe for tokenization?

Cowan: I think we’ll really begin to see an increased interest in on-chain debt, especially structured products and private credit, over the next year or two. Tokenization technology can create a lot of efficiencies there.

GF: What about real estate and equities?

Cowan: I think real estate is still relatively far out. You’ve got property laws that differ based on country, state, and municipality, for instance. Also, much of the history with real estate is still paper based.

As for equities, a few months ago, I would have said we have a long way to go. But because of how quickly regulatory clarity is coming [especially in the US] and how quickly the Securities and Exchange Commission is moving [with regard to crypto and blockchain technology-enabling regulation], the industry may move faster on tokenizing equities.

GF: What obstacles remain before tokenization of financial products becomes widespread?

Cowan: We still have regulatory challenges, and of course identity and know your customer (KYC) and anti-money laundering (AML) challenges. Those are not going away.

GF: Overall, what does tokenization mean for global finance generally? Will it really change the landscape? Cowan: Over the past decade, we’ve been moving forward without regulatory clarity. But when we are given rules of the road, we’re going to see a lot of capital, especially from institutions, flood into the industry because they’ve seen the value of the technology. We’ll get cost reduction, but also a much more inclusive economy.

Rafael Ernesto Barrientos Interiano: Technology and innovation have broken down geographical barriers, reduced wait times, and offered more personalized and secure services. Banco Cuscatlan has led this transformation through a deep digital overhaul, enabling access to digital products like savings accounts, fixed-term deposits, overdraft facilities, personal loans, credit cards, and debt consolidation.

This vision has empowered thousands of Salvadorans to manage their finances quickly and securely, aligning with global trends in the industry. Banco Cuscatlan’s ongoing focus on technological improvement and customer service strengthens our vision to continue leading digital banking transformation in the region.

GF: Where do technology and innovation have the greatest impact? Where do you see the greatest opportunity for innovation?

Barrientos: Our digital ecosystem has transformed the relationship between people and banking, helping us achieve a broader reach and closer interaction with clients. We envision a future where every client enjoys a banking experience tailored to their habits and goals. The greatest opportunity lies in continuing to develop personalized financial solutions using artificial intelligence, advanced analytics, and process automation.

Also, regional expansion is a key opportunity to replicate and scale our successful digital models in new markets, solidifying our leadership as a reference in financial innovation across the region.

GF: How are digital solutions transforming how people bank in El Salvador?

Barrientos: Clients shouldn’t have to adapt to tedious financial processes; but rather, banks must use technology to deliver innovative financial solutions tailored to clients’ pace of life. These solutions are changing how people interact with financial services. Customers can use their mobile phones to open accounts, apply for loans or overdrafts, obtain and use credit cards, and consolidate debt. This transformation has democratized access to banking products and improved the quality of life for thousands of Salvadorans, making banking an experience that’s simple, human and efficient.

GF: What sets Banco Cuscatlan apart from its competitors? How does technology give you an advantage?

Barrientos: We have a customer-centric approach, and by actively listening to people’s needs, we deliver solutions with real value. We can anticipate customer needs through agile, comprehensive, and fully self-managed digital solutions. Banco Cuscatlan has digitized its portfolio, enabling a smooth, secure, and frictionless experience. Technology gives us a competitive edge and reduced operational costs, quickly scaled services, and personalized the customer experience. This commitment to continuous improvement, combined with an internal culture of digital transformation, has made the bank a change agent within the financial sector in El Salvador and the region.

GF: How has the bank used technology to overcome business challenges?

Barrientos: Banco Cuscatlan has leveraged technology to overcome business challenges like financial inclusion, the need to streamline processes, and increased demand for personalized services. Through a comprehensive digital transformation strategy, we eliminated our dependency on physical infrastructure by offering digital financial products accessible from any device.

With this commitment to self-service, we can scale operations, maintain business continuity, and adapt to users’ evolving expectations. Technology has been our ally in optimizing resources, expanding our regional reach, and delivering excellence.

Randa Sadik: Arab Bank posted a robust performance in 2024, underpinned by broad growth across geographies and business segments. Our solid results were backed by a well-diversified expansion in core banking income with interest and non-interest revenue contributing to sustainable growth in net operating profit.

Arab Bank’s strategic emphasis on expanding beyond its home market continued to pay off, with strong momentum in the high-growth GCC region and international markets. Our global network and digital transformation were key in driving value across corporate, consumer, and wealth management banking segments.

The results underscore the effectiveness of our long-term strategy, which hinges on geographic and income stream diversification to ensure resilience and capture cross-market opportunities.

GF: What digitalization milestones did Arab Bank reach?

Sadik: We advanced our cloud-native applications and accelerated our API-driven development. AI agents will also boost this process by integrating more value-added services for our customers.

For our corporate business, we reengineered our credit origination and approval process to enable end-to-end digital flows that process new credit applications faster, starting in GCC countries. We also revamped our Trade Finance Corporate platform’s user interface and added new services.

We continued our focus on enhancing Arabi Next, our SME digital app, and, among many other things, launched digital onboarding for SME customers in Jordan—a major differentiator—alongside a new tailored digital loyalty program and an E2E SME cards management offering. We routed 91% of all SME transactions in Jordan through various digital channels.

Finally, the bank launched Omnify, a Banking as a Service [BaaS] platform. It lets companies embed Arab Bank APIs in their digital apps and enables the bank to leverage opportunities for new open banking regulatory frameworks.

GF: What is Arab Bank doing to reach the next generation of customers?

Sadik: We offer a well-rounded and fully integrated value proposition. We understand that young customers expect much more than traditional banking. They seek personalized, digital-first experiences that align with their dynamic lifestyles and evolving requirements.

Our youth-focused programs begin early. The Junior program starts by instilling financial awareness in children and evolves toward offering tailored banking experiences to teenagers. The Shabab program focuses on youth and young adults, helping them build a solid financial future via fee-free banking, exclusive lifestyle benefits, and a holistic financial proposition. The centerpiece of engagement with this key segment is our Arabi Mobile app, which delivers seamless, end-to-end digital journeys spanning onboarding, investments, and credit facilities.

Equally important is our dedication to sustainability. Through initiatives in financial literacy, continuous innovation, and environmental responsibility, we are staying relevant to younger generations and actively shaping a more inclusive and sustainable future.

GF: What role did AI play in your 2024 performance, and what will it contribute in 2025?

Sadik: Alongside our digital achievements, Arab Bank continued its ambition to become an AI-first organization, capitalizing on our rich data set to automate and personalize AI-based flows to assist our staff in their daily tasks and speed up their decisioning process, affording our customers both richer and more personalized customer engagement and autonomous drive.

By 2024, Arab Bank had over 20 AI-ML models in production covering a range of applications, from gaining better customer insights to improving our risk-based decision-and-detection process. Most of our models were developed internally under a robust governance framework. Still, we also injected third-party AI-based offerings, which let us benefit from the scale effect of market data, such as for customer service chatbots, cyber threats, and fraud alerts.

For 2025, we will continue to deploy these models while embedding generative-AI use cases to automate routine tasks, digitalize risk management, and enhance customer-facing personalized services. As a prerequisite, we provide Arab Bank staff with an effective learning and development program to capitalize on this new opportunity.

The most material examples include, but are not limited to, providing internal chatbots to front-line staff to access product and policy information faster, supporting their training needs, and allowing for a fast decision process

Wee Ee Cheong: UOB is strategically reshaping our business mix to diversify our revenue engines, with a disciplined approach to managing our balance sheet and growing fee-based income.

In wholesale banking, our enhanced platforms and sector-specific solutions help finance cross-border businesses, leading to higher fees and cross-border income. We aim to be the number-one cross-border trade bank in the Association of Southeast Asian Nations (ASEAN). With an extensive regional footprint and our combination of strong sector expertise and local-market knowledge enables us to help businesses navigate market complexities and to seize opportunities in ASEAN.

In retail banking, the acquisition of the Citigroup consumer-banking business in four Southeast Asian markets has enabled us to scale our credit card and brought cross-selling opportunities to our 8.4 million customers. Consequently, our card fees and wealth management income have seen robust growth. We continue to invest in our UOB TMRW digital banking app, which is being rolled out across our key markets.

These diversified income drivers are recurring, and demonstrate results. We see tremendous opportunities to grow our franchise and will be steadfast and focused in our execution.

GF: What are the greatest challenges UOB face in 2025?

Wee: We expect disruptions, and we expect demand to slow in the immediate future due to rising geopolitical risks and tariffs. Businesses and countries will face greater urgency, in a multipolar world order, to diversify their markets, integrate more closely regionally, and innovate to create more value.

With its population of 600 million, ASEAN is driven by megatrends such as regional economic and trade integration, supply chain resilience, digital innovation, and sustainability. We believe in ASEAN’s resilience.

As global trade and supply chains transform significantly, ASEAN remains an attractive market. UOB’s regional footprint and service offerings position us to seize emerging opportunities in the mid to long term.

To stay ahead of rapid technological change, we place innovation at the core of our strategy-enhancing efficiency, unlocking new opportunities, and strengthening our competitive edge.

GF: Do you expect sustainable finance to continue to grow in 2025?

Wee: Economic opportunities around decarbonization continue to drive sustainable-financing flows in Asia, and the region continues to benefit from sustainable developments. UOB’s net-zero commitment is aligned with Singapore’s commitment to net zero by 2050. We remain on track for all five of our priority sectors—power, automotive, real estate, construction, and steel—for which we have set net-zero targets.

To meet our targets, we have an end-to-end net-zero operationalization program covering governance, policies, capacity-building, technology, and pragmatic measures to support our clients’ transition to a sustainable economy. This program involves developing high-quality green-financing products and engaging with clients to promote sustainable practices.

Our clients’ demand for sustainable financing continues to grow; and as of December 2024, our sustainable financing portfolio had increased 43% year over year to more than 57 billion Singapore dollars ($41.9 billion).

GF: What is the bank doing to capture the next generation of customers?

Wee: The bank seeks to understand the aspirations, lifestyles, and expectations of the next generation of customers by systematically collecting and analyzing their feedback. We aim to go beyond financial needs to support young businesses’ digitalization, sustainability, and regionalization needs as they grow and scale.

Our digital banking platforms: UOB TMRW, UOB Infinity, and the UOB SME app, enable younger customers to access on-the-go financial management through an omnichannel approach. Our lifestyle partnerships for concerts and top acts bring renowned performances and deliver exciting lifestyle experiences for our younger customers across the region.

For our business customers, we recognize the importance of equipping the next generation of leaders with skills, insights, and connections necessary to preserve family and business legacies.

Our programs include The Business Circle, which offers masterclasses, workshops, and overseas business missions, on digital transformation, sustainability, and business diversification. The Next Gen Programme prepares successors for future responsibilities, enhancing their competencies to protect and grow inherited wealth with sessions focused on entrepreneurship, digital innovation, and technology.

Global Finance: Metals & mining has proven particularly sensitive to geopolitical shifts. How are you guiding your clients through this landscape?

Ilan Bahar: In the volatile environment they are experiencing today, it is important that our clients focus on long-term macro fundamentals. For example, energy transition and electrification trends are not going away and the need for critical minerals is not abating. We believe longer term supply and demand fundamentals will persist through this period of volatility, with strong demand continuing a long-term bullish cycle for key commodities that support energy transition.

Gold and silver prices are testing all-time highs as precious metals continue to be seen as a natural hedge to broader market dislocation. So for our clients, it is important not to let short-term, reactionary decision-making impair their long-term strategic priority to build shareholder value.

GF: Global metals dealmaking slowed last year, but BMO still delivered impressive results in this sector. Is your deep industry expertise the key differentiator, or are additional elements contributing to your success?

Bahar: BMO has remained steadfast in its commitment to the sector. Next year, we will be hosting the 35th edition of our annual Global Metals, Mining & Critical Minerals conference. We are proud to say it is the leading conference in the world in the sector, setting the tone for the calendar year for both corporate clients and the institutional investor community. We are proud of our organization’s deep sector knowledge and the strength of our client relationships across the entire commodity complex.

GF: Does the current macroeconomic backdrop suggest a possible uptick for M&A activity in metals & mining going forward?

Bahar: We actually have seen a reasonable amount of consolidation among junior and intermediate producers where the industrial logic of the combination is strong and creates synergies. The combination provides increased exposure to current metal prices, and the opportunity presents itself to become larger and more relevant to investors in the sector. 

Size brings added liquidity and, in theory, more investor attention. Large-cap consolidation in the gold space was extremely active in the past few years, resulting in a few clear industry leaders in gold—Newmont, Agnico and Barrick in North America—and we are seeing the next wave of consolidation now among the intermediates and juniors.

We expect producers looking to bolster their longer-term development pipelines through earlier-stage acquisitions to utilize strong cash positions for future development and, where the opportunity exists, to structure accretive transactions, given that earlier-stage companies trade at large valuation discounts to the producers. We have seen notable transactions in the silver space recently, driven by a relative scarcity value of primary silver assets.

GF: Government agencies and corporations are focusing on essential minerals and rare earth elements, recognizing their role in powering the AI revolution. Have you expanded your offerings in this space?

Bahar: We are attuned to the macroeconomic factors that will drive the increased importance of critical minerals to the world’s economic engine. The simplest demonstration of our commitment was the rebranding of our conference in 2023 to specifically include critical minerals in the name, but also by dedicating a portion of the agenda to them. In addition to our equity research commitment, we have investment bankers focused on critical minerals stationed across the globe, from our offices in Toronto, New York, London, Beijing, Vancouver, and Melbourne.

GF: Sustainable finance has historically followed boom-and-bust cycles. Does the current cycle represent a fundamental shift from this pattern?Bahar: Several sustainable technologies have now achieved a cost advantage over incumbent technologies; renewable power has the lowest marginal cost for power generation, and energy-efficiency technologies now have positive net present value for many investments. Those changes—combined with the continued differential demand for carbon-free electricity and enhancements to the power grid—mean that we are seeing a persistent demand for these technologies despite policy uncertainty in certain jurisdictions, and a continued long-term need for the metals and minerals that support those investments: copper, uranium, and critical minerals.

Global Finance: Standard Chartered is this year’s Best Investment Bank for Infrastructure Finance. How does this award reflect the firm’s mission?

Abbas Husain: This award reinforces our role as a trusted partner in driving sustainable development and economic progress. It reflects our commitment to delivering innovative financial solutions that enable critical infrastructure projects, strengthen trade corridors, and support long-term growth.

GF: Is infrastructure finance changing?

Husain: Alternative sources of capital—development finance institutions (DFIs), export credit agencies (ECAs), infrastructure funds, and capital markets project bonds—are becoming increasingly important.

We’ve also seen longer tenors for strategic projects. Some megaprojects, particularly in renewables and infrastructure, are securing tenors beyond 20 years. Middle Eastern deals structured with short-term vehicles like “soft-mini perms”—a type of loan that becomes subject to more onerous terms if it is not refinanced by the maturity date—have incentivized sponsors to refinance before the contractual maturity of the facilities. There’s also been an increased use of refinancing strategies as sponsors secure short-term bank financing with plans to refinance via the bond market.

GF: In which regions are you seeing the most innovative infrastructure projects?

Husain: There’s a strong pipeline. MENA is home to many major infrastructure projects for transportation, water and waste management, and renewables and green hydrogen. Regional governments are actively pursuing privatization and public-private partnerships (PPPs) to attract foreign investment and ease fiscal pressures. Meanwhile, infrastructure has become an attractive asset class for banks, private credit, and sovereign funds.

Husain: There’s a strong pipeline. MENA is home to many major infrastructure projects for transportation, water and waste management, and renewables and green hydrogen. Regional governments are actively pursuing privatization and public-private partnerships (PPPs) to attract foreign investment and ease fiscal pressures. Meanwhile, infrastructure has become an attractive asset class for banks, private credit, and sovereign funds.

Governments are accelerating their clean energy targets, resulting in several large-scale solar/wind, waste-to-energy, carbon capture, and green hydrogen projects. Growing water scarcity concerns are driving investments in desalination and wastewater treatment, with many pro-jects structured as PPPs. We are witnessing a renewed demand for baseload power after several years of focus on renewable energy, leading to a surge in the number of combined-cycle gas turbine projects in the region. Driven by the need for energy storage and peak shaving, or load shedding, we are also seeing a surge in projects related to battery energy storage systems.

GF: What trends do you expect will shape the infrastructure sector in the next year?

Husain: Global spending in clean energy investments exceeded $2 trillion for the first time in 2024. Achieving net-zero targets by 2030 will require even greater capital commitments, creating opportunities for innovative financing solutions.

At the same time, AI and digitalization are driving demand for data centers, with trillions of dollars in investment anticipated by 2030. Institutional investors and sovereign wealth funds are playing an increasingly active role in this space, particularly in high-growth regions.

Beyond sector-specific developments, we are likely to see an increase in refinancing and capital market solutions as sponsors adapt to evolving high-interest-rate conditions and seek to optimize their capital structures. This will drive demand for capital market solutions and alternative financing, including private credit, institutional funds, ECAs, and DFIs.

GF: Is investor appetite for infrastructure and project finance deals keeping pace?

Husain: Despite the rising complexity of cross-border investments, infrastructure projects have long-term economic viability, and we continue to see significant interest. Also, there are vast capital pools; Global Infrastructure Investor Association members have more than $2 trillion in assets under management either invested or ready to invest. In addition to ECAs, classic infrastructure funds, and multila-teral development agencies, we have seen pension funds, insurers, and asset managers flood the market in search of alternative and stable long-term growth.

GF: How are regulations impacting infrastructure finance?

Husain: Some of the most acute funding shortfalls are in developing markets. Addressing these requires public and private capital, impactful policy initiatives, appropriate risk allocation, and greater cross-border collaboration. To attract more investor capital, we need to help these markets pursue policy liberalization, address risks and governance issues, and provide transparent avenues for sustainable investing. The success of some ASEAN markets has been driven in large part by similar initiatives while China, for example, demonstrates the benefits of opening financial markets to global trade and collaboration.

Global Finance: Turkey was once notable for being slow in adopting a sustainability agenda, but this has changed dramatically. Why?

Kaan Gür: The recent acceleration of green investments in Turkey can be attributed, first, to a growing awareness of the environmental and social consequences of unsustainable systems. Today, many investors prioritize environmental and social impacts alongside financial returns. Public authorities in Turkey have also taken significant steps to advance sustainability. In parallel, Turkey has seen a considerable rise in foreign capital inflows in recent years, particularly those aligned with the green transformation agenda.

At Akbank, we have always viewed green transformation as an opportunity for Turkey. Public authorities also share a similar outlook. Apart from the environmental and social benefits, the transformation of the Turkish market in line with sustainable development goals will increase its competitiveness in global trade.

GF: Akbank has won several of our Sustainable Finance Awards 2025. What makes it stand out compared to competitors?

Gür: We are truly honored to receive these prestigious awards from Global Finance. An effective sustainable finance structure requires a bank to align itself with both client needs and investor preferences, which increasingly emphasize ESG factors. Akbank excels in managing this balance by creating a sustainable finance ecosystem that offers capacity-building initiatives, digital sustainability services, and specialized partnerships. Our proactive engagement with clients to support their green transition remains a key driver of our success in this area. Furthermore, our firm commitment to achieving net-zero emissions by 2050 underscores our leadership in sustainable finance.

GF: What criteria do you use when assessing new projects’ ESG credentials?

Gür: We have integrated environmental and social risk evaluations into our loan policies. Beyond the traditional risk perspective, since 2021, Akbank has been providing sustainable financing in green and social categories under our Sustainable Financing Framework.

We continuously adapt to meet investor priorities and market expectations, where long-term environmental and social impacts are as critical as financial returns. In 2023, we updated the Sustainable Finance Framework to include new green, blue, and social thematic areas. As the first deposit bank in the Turkish banking sector to set concrete sustainability targets, Akbank remains committed to providing TL800 billion ($22.2 billion) in sustainable financing by 2030 under this framework.

GF: What sectors of the Turkish economy have the most promise for green projects?

Gür: We prioritize the transformation of the energy sector, as it serves as a catalyst for the decarbonization of all carbon-intensive industries. Significant investments in renewable energy have been made in recent years and continue to gain momentum. The incentive programs implemented by the Ministry of Energy and Natural Resources have played a key role in sustaining this growth.

That said, given Turkey’s exposure to climate risks, project-based climate risk assessments are essential before proceeding with renewable energy investments, particularly in hydroelectric. We expect this issue to gain even greater importance in the near future.

Green hydrogen holds substantial potential for Turkey, particularly as an export to the EU market, making it a key priority for investment. In addition, energy storage and grid modernization are essential to support the expansion of the renewable energy sector.

Green investments in carbon-intensive sectors such as cement, iron and steel, and chemicals are critical, prioritized for green transformation under the EU Green Deal. Energy efficiency also represents a key area of focus.

GF: What financial instruments do you consider most effective in driving the green agenda forward?

Gür: There is a clear need for innovative financing structures that actively incentivize sustainable practices. In this context, sustainable external borrowing instruments have emerged as highly effective tools in recent years. These include green bonds and sustainable syndicated loans.

However, for a developing country like Turkey, where small to midsized enterprises form a significant part of the economy, programs supported by international funds are the most impactful. Such structures not only provide financial support but also offer technical consultancy services to accelerate the green transformation of various sectors.

Global Finance: What are Standard Bank’s specific targets for reducing its financed emissions, and how is it achieving them?

Sasha Cook: We have committed to achieving net zero for our own operations by 2040 and are three years ahead of schedule; for our portfolio of financed emissions, by 2050. This commitment is integrated into group-wide policies and processes and informs our credit decisions. We continue to engage with clients across all segments and sectors to understand their climate goals and transition plans. And we have set clear parameters that limit our provision of finance to existing power-sector clients generating power from coal, oil, and gas-fired plants.

We will not finance the construction of new coal-fired power plants or expansion of the generating capacity of existing coal-fired plants. We will consider financing oil and gas only when the projects are low-carbon intensity and will result in lowering the average carbon intensity of our portfolio, and where clients provide details of current or expected carbon emissions and have an approved plan to reduce scope 1 and 2 emissions.

GF: Which sustainable finance instruments help mitigate climate change’s impact?

Cook: Various categories contribute positively, namely green-labeled instruments in loan, bond, and guarantee format (specifically, in the subcategories of renewable energy, green buildings, sustainable water, and biodiversity-related), blue-labeled instruments (supporting water-related and marine projects), social-labeled instruments (focusing on financing affordable basic infrastructure), and sustainability-linked instruments where key performance indicators are linked to positive environmental impact and performance.

GF: Why is it important that African banks play a leading role in creating a sustainable future for the continent?

Cook: As allocators of capital, financial institutions play an important role in driving positive impact. African banks also play a key role in facilitating international capital flow to the continent, to support sustainable projects.

Additionally, African banks play a critical role in developing local debt capital markets, ensuring that capital can be raised from local institutional investors to support projects that deliver positive impact, reducing reliance on hard-currency funding sources. Banks also have good governance policies, processes, and structures that lead to successful project implementation and ensure that funds are channelled to impactful outcomes.

GF: How can Africa balance reducing CO2 emissions with plugging energy infrastructure gaps?

Cook: The energy “trilemma,” as it is sometimes referred to in Africa, requires balancing clean energy, energy access, and affordabale energy. The focus cannot therefore solely be on increasing large-scale renewable energy capacity. There is also a need to fund innovative smaller scale solutions like mini-grids and improvements to transmission infrastructure that facilitate increased grid capacity for renewable energy. Funding also needs to be allocated to the South African government’s recent BESS [Battery Energy Storage Solution] program; we have successfully closed financing for several of the first large-scale BESS battery storage projects, which will result in improved access to energy by allowing excess renewable energy to be stored and used when needed.

Africa contributes less than 4% of global greenhouse gas emissions and thus does not face the same level of transition risk as the developed north. Banks can facilitate, promote, and support energy access in all economic segments through renewables and, where required, renewables integrated with thermal power generation.

Standard Bank can boast two key initiatives in this regard: PowerPulse and LookSee, which are aimed at improving energy access using clean energy in the residential and commercial segments of the economy.