I should qualify that not many are clamouring for the return of mullets or shoulder pads. But for business, trend spotting is an essential skill.
There were plenty on display at this year’s Sibos conference in Singapore, with much talk about the disruption of payments, the potential for blockchain technology to revolutionise banking and the increasing realisation that the potential of women has been woefully under-utilised in the financial sector.
But the biggest trend was quite literally staring delegates in the face: the rise of Asia.
It was, in fact, such a big trend that Piyush Gupta, CEO of DBS, who opened the conference with a fascinating and wide-ranging address, dubbed it a “megatrend” and confidently predicted that we are on the cusp of the “Asian century”.
With the backdrop of a slowdown in China that has weighed on activity in the wider region and has spooked investors, it was a timely reminder of Asia’s potential. For business, it was a call to ignore the cycles and focus on these “megatrends”.
And there were some salient statistics to digest. For instance, noted Gupta, in 2000, the 10 largest Asian countries produced the equivalent of 40% of US GDP. By 2010, that had risen to 70%, and it is forecast to hit 120% by 2020. And that is not a flash in the pan: Asia accounts for a third of the world’s land mass, but contains almost 60% of its population. Furthermore it has a relatively young average age of 28, compared to 36 in the US and 39 in Europe.
That large, relatively young, population creates a dynamism and chemistry that will shift Asia from being the factory of the world to being the market place of the world, according to Gupta.
And that shift is happening before our eyes. Apple’s sales growth in China was 75% in the first half of this year, making it a bigger market than the US for the company for the first time. In fact there are 350 million smartphone users in China, more than the population of the US.
There is, in other words, huge potential in the region despite current concerns displayed in the financial markets.
One person looking to tap into that potential is ADS Securities’ Francis Lee. I had the pleasure of interviewing him for this month’s Editor’s Interview as he sets about building up the broker’s presence in Asia. You can find out on page 16 how fast digital channels in the regions are changing and how the rise of the smartphone has drastically changed client behaviour. Meanwhile, we also look at how Asia’s emergence has revitalised the Silk Road. On page 20 you can find out how corporates are capitalising on the rejuvenation of the ancient trade route.
Elsewhere, we take an in-depth look at the continued rise of algorithmic trading on page 11, the potential for a new style of Islamic finance on page 27, while on page 31 industry experts join us to debate the opportunities and challenges for banks as new technology and new entrants attempt to disrupt the world of payments.
As ever, we hope you enjoy this month’s issue, and please, let us know what you think.