To cope with the changing geopolitical climate, financial services firms need to be nimble, strategic and diligent, according to Linda Yueh, fellow in economics at Oxford University.

Speaking at Finovate Europe in London on Wednesday, Yueh said that markets are diverging due to several key factors, including a rise in the number of middle class consumers.

She also said that there is no consistent set of global rules for international firms to follow.

Yueh told the audience that as a result of different investment levels and varying growth rates across different geographic regions, financial services firms need to be nimble to serve their clients effectively.

“There are vast opportunities in fast growing markets and to do that requires implementing strategies,” Yueh added. “I’ve noticed that while lots of strategies look good on paper it is the execution of the strategy which is more important because of the challenges in the world.”

Yueh added that firms have to be diligent in following the shifts in global economics.

“I’m not suggesting that every company needs to have a different foreign policy, I’m not suggesting that you hire someone to follow social media around the world,” she said. “Things change quickly in this world and being on top of geopolitical shifts is worth considering.”

AI adoption

Yeuh said that while generative AI (genAI) technology is being slowly adopted by companies across the world, it will only lead to increased productivity once processes have been changed to encourage its use.

She made the point that while the video conferencing company Zoom had gone public in 2019, it wasn’t until the pandemic that the technology was widely adopted.

“It is the use of technology and the change in business practices that are raising productivity,” Yeuh said. “Having technology sitting on the shelf doesn’t do anything, having technology sitting on the shelf doesn’t do really do anything, you have to change the processes.

“To me that's the excitement of technology and what you're beginning with genAI is rapid adoption, and that is promising in raising productivity.”

---