Profits at Marks & Spencer have more than halved after the retailer suffered a damaging cyber-attack, which is still affecting its struggling clothing and homeware business.
The retailer said underlying profits more than halved to £184.1m in the six months to 27 September from £413.1m a year before, after it had to halt online orders of clothing and homewares for more than six weeks.
The company’s clothing and homeware sales slumped 16.4% in the half year. The retailer said the division had been “slower” to recover from the hack than its food arm.
M&S said that sales of fashion in stores had been “impacted by reduced availability and fewer visits linked to the absence of click and collect”, and warehouse systems were now restored so “both our website and stores are improving availability, and trading is recovering”.
Food sales rose by a slightly better than expected 7.8% in the half year and the retailer said it was “largely recovered” from the effects of the attack. Group sales rose 22% to £7.96bn.
“We are confident we will be recovered and back on track by the financial year end [in March],” it said in a statement.
M&S said profits had been helped by a quick recovery of £100m in cyber insurance but hit by £50m on a new packaging recycling levy and additional insurance costs. It is now looking to make £600m in cost savings this year as it battles to keep annual profits steady – £100m more than previously planned.
Despite the cost-cutting, it opened six stores in the six months to the end of September and plans 12 more by March.
Stuart Machin, the chief executive of M&S, said: “In the second half, we expect profit to be at least in line with last year. This should give us a springboard into the new financial year and set M&S up for further growth.
“The retail sector is facing significant headwinds – in the first half, cost increases from new taxes were over £50m – but there is much within our control and accelerating our cost reduction programme will help to mitigate this.
“Our plan to reshape M&S for long-term sustainable growth is unchanged, our ambitions are undimmed, and our determination to knuckle down and deliver is stronger than ever.”
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Last week the rival Next raised hopes that UK consumers were still willing to spend despite pressures on household budgets, as it revealed sales and profit growth “materially above” expectations.
M&S said in May that it expected to take an estimated £300m hit to profits this year from the damaging cyber-attack. However, it said it expected to halve that financial impact of the attack to about £150m through insurance, cost reductions and other actions.
The attack on M&S’s IT systems over the Easter weekend forced the retailer to stop orders via its website, through which it sells fashion, homeware and gifts, for more than six weeks.
Deliveries of food and fashion into stores and some deliveries to its online food partner, Ocado, were also been disrupted.
For the BMW Group, several key strengths have long formed the
foundation of our strategic course: our global footprint, our
technology-neutral approach, our premium multi-brand strategy and
broad portfolio across all relevant customer segments, and our ability
to identify the potential of new technologies and bring them to road
in each major region. These strengths give us flexibility and make us
resilient, and we are benefiting from them now.
As a global company with global brands, we are used to dealing with
varied conditions and unpredictability on the ground in each market.
We recognize the current dynamics in the automotive industry: major
transitions in innovation, operating with a global supply chain, a
shifting geopolitical framework with trade impacts such as tariffs, as
well as a rapidly evolving market in China – to name but a few.
We remain focused on our long-term trajectory, while using our
flexibility to adapt to the changing dynamics and are tackling them
head on. This is what has always set the BMW Group apart.
Our business remains on track and healthy. As Walter just shared,
this is underscored by our Group EBT result over the first nine months
– demonstrating the performance of the entire business including our
sales development.
Despite the challenging market dynamics in China, our overall global
sales posted year-on-year growth of 8.7% in the third quarter;
excluding China, it was 12.2%. Through September, sales in Europe were
up 8.6% compared to 2024, while sales in the United States grew by
9.5%. These strong results helped compensate for the development in China.
Electrified vehicles and M vehicles both drove global growth. With
our technology-open approach and multiple premium brands, customers
find products that fit their wide range of needs and tastes.
In the coming months, we will take this to the next level with the
introduction of the NEUE KLASSE. Just two months ago at the IAA
Mobility here in Munich, we unveiled the BMW iX3*, the first vehicle
of our NEUE KLASSE. The response was tremendous – from visitors and
fans from across the globe, media, analysts, and political
stakeholders. A few weeks later we celebrated the official opening of
our new plant in Debrecen, where production of the iX3 is underway.
We have started taking customer orders for the car, which have
exceeded our expectations. Just looking at Europe, we see orders
already extend several months into 2026 already. This confirms an
exceptionally positive start for the vehicle.
The NEUE KLASSE is BMW at its best. And starting with the iX3, it
will set new benchmarks: from its performance data and revolutionary
digital interface to its sustainability approach.
The BMW iX3 offers a range of more than 800 kilometers in the WLTP
cycle. Thanks to its ultra-fast charging capability, the peak charging
power is up to 400 kilowatts. That means: in just 10 minutes, the iX3
can charge enough to drive more than 370 kilometers.
The fully immersive digital experience will bring UI / UX to a whole
new level. With the BMW Panoramic iDrive, drivers can intuitively keep
their eyes on the road while all necessary information is perfectly in view.
With the BMW iX3, we will also introduce a new generation of driver
assistance systems. The BMW Group is the first car manufacturer in
Germany to receive approval for assistance systems in accordance with
UN Regulation for Driver Control Assistance Systems (DCAS).
The approval enables the BMW Group to offer the Motorway Assistant
with Level 2 “hands-off” function in numerous other models and
countries in the future. This also covers an extended range of
functions. More innovative assistance functions for urban driving will follow.
In terms of sustainability, the iX3 is explicitly focused on
conserving resources and reducing the model’s environmental footprint
– throughout the supply chain, production, use phase and recycling. In
line with the principles of design for circularity, the iX3 is made up
of one-third secondary raw materials.
Moreover, Plant Debrecen is the first BMW Group car factory that
operates and produces vehicles without using fossil fuels, such as oil
and gas, under normal operating conditions.
Overall, the iX3 is a perfect example of our strategy of reducing CO₂
wherever we have leverage. This will help us reach our near-term
target to reduce our carbon footprint by at least 40 million tonnes
CO₂ by 2030. Since 2020, we have been fully committed to the Paris
Climate Agreement, with a target of achieving net zero by 2050.
The next NEUE KLASSE model, which we teased at the IAA, is preparing
for launch: the new BMW i3. With the eighth generation of the 3
Series, we will bring the NEUE KLASSE and its technology clusters into
the core of the BMW brand. Production of the i3 will get underway at
our main plant in Munich in the second half of next year. Other
locations in our international production network will follow with
production of 3 Series variants.
Throughout 2026, we will show how the NEUE KLASSE technologies will
be integrated into further models, such as the 7 Series and the X5. By
2027, we will put 40 new models and model updates with NEUE KLASSE
technology and design language on the road worldwide.
This all-new BMW generation will provide an enormous boost to our
already broad and popular portfolio – with technology solutions
tailored to customers in their markets.
This applies especially to China. The NEUE KLASSE products we will
launch in China are developed together with our local engineering
teams and Chinese partners – in the market, for the market. Our NEUE
KLASSE architecture allows to integrate local tech stacks from leading
Chinese tech players into our own ecosystem. This gives consumers
access to innovations and features they are used to, including
solutions from Alibaba Banma, DeepSeek, and Momenta.
With the NEUE KLASSE, we are again demonstrating our strength in
mastering system complexity, integration and efficiency. We know what
our customers want and identify trends in individual markets early.
The result are products that perfectly integrate the best technologies
– both in house and with partners – across regions to offer the best
product substance to our customers.
What makes the NEUE KLASSE so unique, is that we are rolling out the
technology clusters across the entire portfolio – regardless of the drivetrain.
Our technology-neutral approach continues to show its success and
allows broad market access as consumer preferences shift. At the same
time, we are making progress in decarbonization in the here and now.
After nine months into 2025, Group sales of all-electric vehicles are
up by 10%, resulting in a BEV share of 18%. PHEVs grew nearly 28%
year-on-year, delivering an overall electrified share through
September of 26.2% globally.
Europe showed particularly strong growth – with BEVs reaching over a
quarter of total sales, while BEV and PHEV sales combined for an
impressive 41% share. Europe will also be the primary driver of our
BMW iX3 sales in 2026.
Thanks to this solid result, we are well on course to reach our CO₂
fleet target for the year, just as we have consistently done for the
past several years. For us, it has long been clear that we would meet
the targets for 2025 – and, importantly, without penalties, pooling,
or averaging.
This success with our technology-neutral strategy also gives our
voice weight in the ongoing discussion regarding the EU’s targets.
We have reached our climate targets by following market demand and
customer needs and by continually optimizing all drivetrain variants.
It remains critical for Europe to revisit the targets for 2030 and 2035.
Setting an end date to a specific, successful technology will lead to
a massive shrinking of the industry as a whole. It will harm European
industry and also create dependencies that are unwise in the current
geopolitical dynamic.
To achieve climate goals and create effective CO₂ regulations, we
must take a comprehensive view – one that accounts for the full carbon
footprint of the vehicle and its value chain, and that also values
climate-neutral fuels such as HVO100. Such a holistic framework would
reflect various market needs and uneven infrastructure development,
while safeguarding Europe’s value chains, jobs, and industrial
strengths. And – above all – it delivers genuine climate protection
and real reductions in CO₂.
Companies should be free to deliver the solutions, taking customer
demands and needs into account, while adequately investing in new
paths and technologies to achieve the EU’s climate goals.
In this context, the BMW Group is very skeptical about the EU’s
planned “Greening the Fleets” regulation, as it does not consider
current market realities. Commercial fleets rely on high vehicle
availability with high mileages. The currently inadequate charging and
hydrogen refueling infrastructure will not be guaranteed in all member
states by 2030 either. Further fleet mandates and additional
regulations that exclude individual technologies are not necessary to
achieve the CO₂ targets. Moreover, they hinder technological
development and introduce harmful market distortions contrary to
customer preferences. Here also, we advocate for a holistic and
technology-neutral approach.
Ladies and Gentlemen,
We are tackling the challenges in global markets head on, leveraging
our strengths and implementing our long-term strategy. We have made
significant investments and have created the right operating framework
to deliver. Our flexible, global network, our tech-open strategy, our
focus on innovation and our ability to master technological complexity
set us apart.
Over the coming months, we will deliver as promised. Starting with
the iX3, we will rapidly deploy our ambitious strategy one vehicle at
a time around the globe. We will continue to lead with product
substance and solutions that meet our customers’ needs.
We therefore remain optimistic as we close out 2025 and move forward
to 2026.
The temporary grouping of companies Leonardo and Rheinmentall, as part of the Leonardo Rheinmetall Military Vehicles Joint Venture (50% Leonardo and 50% Rheinmetall AG), was awarded the first supply contract for 21 vehicles “A2CS Combat” for the Italian Army. The delivery of the first vehicle is expected by the end of 2025.
David Hoeder, Executive Chairman of JV Leonardo Rheinmetall Military Vehicles: “This first joint order following the decision to establish a joint venture between Rheinmetall and Leonardo is an important milestone. It brings the two companies, as well as two of Europe’s largest countries, closer together. Cooperation is not optional anymore – it is the very essence of our European strategic sovereignity.“
Laurent Sissmann, CEO of JV Leonardo Rheinmetall Military Vehicles, stated: “We are pleased to announce this first step of the industrial synergy between Leonardo and Rheinmetall. We will work side by side to provide cutting-edge armoured vehicles, able to operate in modern operational scenarios.”
Leonardo and Rheinmetall will supply 21 tracked armoured vehicles for the Italian Army, 5 of which are Rheinmetall’s Lynx KF-41 with the Lance turret followed by 16 newly configured vehicles equipped with the same chassis and Leonardo’s Hitfist 30mm turret. The agreement also includes upgrading the whole fleet to the latter configuration, as well as including an additional 30 optional vehicles, and training and simulation systems to better train crews. These are fully digitalized latest generation vehicles based on merger of the best technologies on the market and capable of acting interoperably in a multi-domain context.
The supply falls within the scope of the A2CS – Army Armoured Combat System programme, originally called AICS – Armoured Infantry Combat System, which involves the total acquisition of 1.050 armoured combat vehicles and which, together with the Main Battle Tank programme, will renew Italian Army’s heavy vehicles fleet.
———————————————————————————-
Note to editors:
The joint venture between Leonardo and Rheinmetall has the aim of establishing a new European leader for the development and production of military combat vehicles in Europe. Rheinmetall AG and Leonardo SpA will be equal shareholders (50% each) of the new company Leonardo Rheinmetall Military Vehicles (LRMV) which has its registered office in Rome, operational headquarters in La Spezia (North of Italy) and is responsible for the industrial development and subsequent marketing of the new Main Battle Tank (MBT) and the new Army Armored Combat System (A2CS) vehicles. A 50:50 work breakdown was agreed for the joint venture. A 50:50 work breakdown was agreed for the joint venture. 60% of the activities, i.e. integration, approval testing, delivery activities and logistical support, but also parts of production and development, will take place in Italy.
Armin Papperger, CEO of Rheinmetall AG – Roberto Cingolani CEO and General Manager of Leonardo
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Jamie Oliver and Hugh Fearnley-Whittingstall are among a group of celebrity chefs and supermarkets spearheading a new campaign to double UK bean consumption by 2028.
There has been a long push for people to include more legumes in their diets – they are climate friendly and healthy. As the UK faces increasing disease related to poor diets as well as increasing food prices, and the campaigners argue that it is the correct time to launch a drive to “bang in some beans” to the nation’s meals.
Oliver said: “It’s no secret that I love beans. Not only are they delicious and affordable, they’re plant-based powerhouses that are packed with fibre, are a brilliant source of protein and live happily in your store cupboard for ages. If there’s anything we should be eating more of, it’s beans.”
Supermarkets supporting the Bang in Some Beans campaign include Lidl, which has pledged to increase volume sales for all bean products by 50% by 2028; Sainsbury’s, which is aiming to increase sales tonnage for beans and pulses by 2028; and M&S, who say they will increase volume sales for all ambient bean products by 15% by 2028. Waitrose and Ocado have also said they will advertise more legumes to customers.
Growing many types of bean fixes nitrogen into the soil, improving its health, and they are a useful replacement or supplement for more carbon-intensive proteins, such as meat. They are also high in fibre (only 4% of Britons get their recommended daily amount), and 4.5 times cheaper than other plant-based meat alternatives. A new report by the Food Foundation, supporting the campaign, has found that to meet the Eat-Lancet’s planetary health diet, UK bean consumption would need to increase sevenfold.
Food production is a big cause of climate breakdown, amounting to about a quarter of the world’s greenhouse gas emissions. Three-fifths of those emissions come from meat production, leading many to argue for a shift towards a plant-based diet. On average it takes 15,400 litres of water to make 1kg of beef, but about 5,000 litres for the same amount of beans.
Fearnley-Whittingstall, another of the supporters of the campaign, said: “Beans are fantastic for your health and are packed full of fibre, protein and micro-nutrients. Put simply, we should all be eating more of them.
“The Bang in Some Beans campaign is bringing together chefs, influencers and food businesses so we can all get excited about trying new beany recipes, whether that’s exploring exciting dishes from all over the world, or simply banging some beans into family favourites to give them a brilliant boost.”
The Food Foundation has called for more chefs, retailers and restaurant chains to join the bean crusade to increase the marketing and selling of the legumes.
Rebecca Tobi, the head of food business transformation at the Food Foundation, said: “Beans are a win-win-win for our health, the environment and our wallets at a time when food prices continue to rise.
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“As an affordable, healthy and sustainable food, beans deserve to play a much bigger role than they currently do in helping us to eat better as a nation, with two-thirds of the population eating less than a single portion of beans a week. And we’re not just talking about baked beans – we want to get the UK exploring new recipes from chilis, stews, curries and dals to dips and salads.
“We’re now looking for more businesses to sign up and play their part in boosting bean consumption for both people and planet.”
Vestas Wind Systems A/S, Aarhus, 5 November 2025 Company announcement No. 24/2025
The Board of Directors of Vestas Wind Systems A/S has decided to initiate a share buy-back programme of up to DKK 1,120m (approx. EUR 150m).
The share buy-back programme is initiated pursuant to the authorisation granted to the Board of Directors by the Annual General Meeting in April 2025, which entitled Vestas to acquire treasury shares at a nominal value not exceeding 10 percent of the share capital at the time of the authorisation.
The share buy-back programme will be executed in accordance with Regulation No. 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (MAR) and the Commission Delegated Regulation (EU) 2016/1052 (the “Safe Harbour Regulation”).
Purpose The purpose of the share buy-back programme is to adjust Vestas’ capital structure.
Time frame The share buy-back programme will run from 6 November 2025 to 17 December 2025, both days included.
Terms Vestas has appointed Danske Bank as Lead Manager for the share buy-back programme. Danske Bank will make its own trading decisions independently of and without influence or involvement from Vestas.
Under the share buy-back programme, Vestas may repurchase shares up to a maximum amount of DKK 1,120m, and no more than 18,000,000 shares, corresponding to 1.8 percent of the share capital of Vestas Wind Systems A/S.
No shares may be bought back at a price exceeding the higher of i) the price of the last independent trade and ii) the highest current independent bid at the trading venue, on which the purchase is carried out, at the time of trading.
The maximum number of shares that may be purchased on each trading day may not exceed 25 percent of the average daily trading volume of shares on the trading venue, on which the purchase is carried out, over the last 20 trading days prior to the date of purchase.
Prior to the share buy-back, Vestas holds 12,357,143 treasury shares, equal to 1.2 percent of the share capital.
Vestas is entitled to suspend or stop the programme at any time subject to a disclosure of a company announcement.
On a weekly basis, Vestas will issue an announcement in respect of transactions made under the programme.
Contact details Vestas Wind Systems A/S, Denmark
Daniel Patterson, Vice President Investor Relations Tel: +45 2669 2725
Imagine being unable to get a loan, pay an urgent medical bill or secure your new family home with a rental down-payment. Why? All because you lack access to the kind of modern-day financial tools which much of the developed world takes for granted.
You are, to use that quietly damning word, unbanked.
Financial exclusion isn’t confined to the world’s poorest people. It is widespread. It is overlooked. And it is a notoriously difficult trap from which to escape.
Altogether, around a quarter of the world’s adult population – an estimated 1.4 billion people – do not have access to a bank account or appropriate alternative such as a building society or credit union.[1] A further half of adults qualify as ‘underbanked’, relying solely on cash and lacking any avenues of credit.[2]
In today’s hyper-connected world, breaking out of the poverty cycle means having digital access to your finances. Likewise, it demands access to the suite of systems many of us in mature markets already use to receive wages, pay invoices, source credit cards, earn interest, and insure our homes and businesses.
In the absence of these facilities, those affected are likely to endure a form of second-class citizenhood.
Financial exclusion is particularly pernicious because it often leads to inequality and injustice. Of those 1.4 billion financially excluded adults, around 80% live in emerging markets on the frontline of the existential battle against climate change.[3] Already these societies are facing an uncertain future and struggling to implement long-term plans as climate disasters such as floods, droughts and heatwaves derail economic development. Green energy, climate-proof infrastructure and sustainable farming are the solutions – yet all remain beyond the reach of communities marooned in an era of physical currency and 20th Century technology.
Financial inclusion is not simply about convenience – it is about livelihoods and lives. Indeed, financial inclusion is deemed necessary for satisfying at least seven of the United Nations’ 17 Sustainable Development Goals to ensure ‘peace and prosperity for people and the planet’.[4]
Only a fairer and more equitable system of financial access can narrow the opportunity gap worldwide.
How is technology turning the tide for world’s unbanked?
The financial symptoms of a digitally-divided world are detectable everywhere. While savings have increased globally over the past decade, the gap between prosperous and struggling economies is as profound as ever. Mature markets have an average savings rate (the proportion of disposable income set aside rather than instantly spent) of 58% compared to just 25% in developing markets.[5]
In lower and middle income countries (LMICs), there is ample evidence that financial exclusion is limiting business growth. Globally, it remains far easier to borrow money in an advanced economy (where 56% of enterprises are eligible for a loan) compared to emerging economies (23%).[6] Of the approximately 400 million micro-enterprises in developing regions, up to 345 million are classed as informal: Having no employees other than the owner, generating only subsistence-level incomes, and unlikely to be registered for tax therefore failing to elevate national GDPs.[7]
These pen-and-paper businesses cannot grow, advertise or diversify in the way their rivals might in developed markets. Nor can they strengthen their resilience by saving funds to survive fallow periods. In particular, research has highlighted a US$ 173 billion finance shortfall for female-led micro-enterprises in LMICs.
However, other indicators are suggesting a gradual change in momentum. While it is little comfort to the 1.4 billion worldwide who remain unbanked, fewer people are excluded from the financial apparatus with each passing year. In 2011, some 2.5 million adults were forced to live hand-to-mouth, day-to-day, without a bank account – far exceeding the number who find themselves in a similar predicament today.[8]
Similarly, the gender gap between the banked and unbanked is slowly narrowing. In developing countries, around 9% more men than women possessed a bank account in 2017. By 2021 this gulf had narrowed to 6%, indicating positive steps towards female independence.
Forward-thinking governments are taking a more proactive approach to increasing financial inclusion. More than 60 countries have launched national financial inclusion strategies with input from multiple stakeholders spanning telecoms, the environment, education and financial regulation.
In India, for instance, the Aadhaar scheme has equipped 1.2 billion workers with Universal Digital Identification, allowing salaries to be paid into formal bank accounts. In Mexico, the National Council for Financial Inclusion is encouraging digital adoption by increasing the number of ATMs and point-of-sale terminals throughout the country.
As a major intergovernmental organization the World Bank also runs more than 100 schemes worldwide to promote financial inclusion. These funnel cash towards agricultural resilience, social security, energy access and climate mitigation. In 2024 the World Bank contributed to 6.8 million small businesses (around half of them women-led) needing financial services. One project in Africa, for example, mobilized green private capital to help SMEs on their clean energy journey.
By bolstering economic growth and boosting productivity, financial inclusion is a goal worth striving for. Progress in the sector is chiefly credited to our ubiquitous modern-day savior: Technology.
How are smartphones leading the fintech revolution?
Why have the numbers of unbanked individuals fallen, and why are we optimistic that the world will continue welcoming new members into the global financial community? One of the most significant reasons is probably nestled right now in your hand or pocket.
As of 2023 the number of cellphone owners worldwide reached 4.3 billion, or over half of the global population.[9] This trajectory is set to continue so that by the end of the decade the number of cellphone owners could top six billion.
Mobile technology is critical because modern smartphones are about so much more than texts and calls. Smartphones mean access to the worldwide web. Access to banks, both domestic and foreign. Access to apps allowing users to pay for products with a simple swipe or accept payments for services rendered. A cellphone opens the door to economic inclusion by introducing newcomers into the fundamentals of finance, helping them establish a verifiable credit record which can in turn be used to secure loans or make profitable investments. Increasingly, cellphones are the keys which can unlock the door to financial liberty.
Yet this represents just the tip of the iceberg of the financial technology (fintech) revolution helping democratize access to money.
Research shows that over the past 10 years fintech, in its various forms, has helped more than a billion unbanked people access financial services for the first time – notably across emerging markets in Sub-Saharan Africa and Asia.[10]
Cellphones are enabling a new concept in personal finance for developing nations – the mobile money service.
Accessible through any app-equipped smartphone, a mobile money service allows users to send, store and receive payments without need for a conventional bank account. For convenience, it also permits cash withdrawals at authorized agents. Deposits are protected by local financial regulations, and a record is kept of every transaction so that money is safe if a SIM card is lost or stolen. A trial scheme in Kenya among rural populations managed to lift around 2% of participating families out of poverty.[11]
With increasing numbers of people working in the gig economy, or being paid by the hour, the era of the monthly pay slip is waning. How to settle that urgent bill, or buy the supermarket shopping, if you have worked for multiple employers during the week each with different payment terms? Real Time Payment technology is emerging to fill the gap, allowing workers to quickly access pay accrued via an ‘earned-wage’ platform. It is proving a vital lifeline for those on insecure incomes even in developed countries like the USA, where more than a quarter of workers report having zero savings.[12]
Liberating finance in emerging markets begins with a robust network infrastructure. Tech firms are at the forefront of plans to invest billions of dollars in affordable connectivity and digital services across 16 Middle East, African and Asian countries between now and 2026. The money will be spent on improving network speeds and driving fiber adoption. A million households in Pakistan have already been introduced to the digital economy, with millions more set to follow.
Technology can help improve financial inclusion for female entrepreneurs too, who often have to fight to make their voices heard in many parts of the world. Digital bookkeeping apps are helping small- and medium-sized enterprises (SMEs) to accurately record cash flow and inventory – vital financial records which in the absence of collateral can be used to secure a loan. Similarly, electronic Know Your Customer (e-KYC) technology is helping female business owners in emerging markets access loans of up to US$ 20,000 by verifying their identities digitally.[13]
Fintech innovations can help protect customer assets while assuring compliance with state legislation, essential for any functioning system of financial inclusion. Regulatory technology (regtech) and supervisory technology (suptech) tools are helping formalize the oversight of new finance platforms. Regtech incorporates cutting-edge technologies such as AI, machine learning and blockchain to help companies abide by finance regulations within a given territory. Suptech tools allow regulators to scrutinize mass volumes of data from financial institutions to expose violations or risk. Together, regtech and suptech technology automates compliance processes for real-time monitoring, ultimately helping financial inclusion to flourish.
Embedded finance technologies (direct payment or loan tools accessible through non-banking websites) are proliferating, offering anyone with internet access faster and more versatile transaction choices.
New Fast Payment Systems are also hastening the spread of fintech across developing markets. They permit the near-instantaneous transfer of funds between accounts far quicker than traditional electronic payments. The technology is increasingly available to everyone and covers every type of transaction, whether person-to-person or business-to-business, either domestic or cross-border. International initiatives such as the Payment Systems Development Group (PSDG) have so far helped more than 120 countries modernize their payment systems, with Brazil’s Pix and Costa Rica’s SINPE Móvil serving as key templates.
The private sector is enthusiastically pursuing the digitization of financial services to improve access to money. Abdul Latif Jameel is leading from the front in global efforts to deploy fintech and widen inclusivity.
Bab Rizq Jameel Microfinance, part of Abdul Latif Jameel Finance Saudi Arabia, offers Sharia-compliant loans to long-neglected markets, helping nurture entrepreneurialism among innovators and SMEs. Elsewhere in Saudi Arabia Cash Jameel allows customers to apply for a 10,000 to 300,000 Saudi riyals loan, without guarantor, through a phone app, with approval granted in minutes.
The Abdul Latif Jameel Investment Management Company (JIMCO), meanwhile, is investing in numerous businesses that enable individuals and corporates to access the finance they need, when they need it most. Investments include:
Social impact fintech business Ziina, an instant payment platform allowing workers across the MENA region to withdraw wages early for work already completed but not yet paid.
Buy-now-pay-later startup Tabby, helping customers across the UAE and Saudi Arabia pay for purchases in multiple instalments or via a deferred single payment at no extra cost.
Turkish fintech firm Figopara, offering extended working capital to businesses by lengthening payment terms to suppliers.
Thndr, a mobile-first equities trading platform allowing individuals to make commission-free investments in stocks, bonds and funds on the Egyptian Stock Exchange.
Rain, easing access to cryptocurrency markets for investors across the Middle East.
Riyadh-based Lean Technologies, a B2B platform developing user-friendly software for securely connecting financial service institutions to customer bank accounts.
Fintech will continue evolving in the future, bringing financial inclusion to the masses and resolving at least some of the woes endured by the world’s unbanked minority. What does the future look like, and what should governments, NGOs and businesses be doing to prepare?
Will fintech and financial inclusion lead to a fairer future?
Based on the data, it appears that technology is propelling us to a more equitable and inclusive financial ecosystem. As more countries digitize their economies, and as more citizens migrate their personal finances online, valuable new insights will be gained and funding opportunities unlocked.
Increasingly, ‘big tech’ will harness multiple data points – utility bills, rent receipts, sporadic income – to evaluate loan applications. Data channels with unprecedented layers of security will allow governments, businesses and banks to incubate a fertile culture of open banking. The secure exchange of sensitive financial information will help sole traders become SMEs, SMEs become large businesses, and large businesses one day become multinational corporations.
Looking further ahead, public and private sectors must unite to focus on the underlying priorities of a digital ecosystem: Connectivity, cybersecurity, data privacy, digital ID and physical infrastructure.
More research is needed to circumvent the problems inherent in a financial system which is becoming more automated and, arguably, less human. We need to assess potential hazards surrounding consumer protection. We need to understand the dangers of overborrowing, for both individuals and businesses. We need to ensure that women and other under-served minorities are also able to share in the wealth of new opportunities.
All institutions have a part to play.
Banks must develop strategies to promote responsible borrowing and spending. Payment providers must work with fintechs to analyze data and enable sustainable investing.
Governments must legislate for the open sharing of data and encourage the transition by shifting their own payments to the digital realm.
International lawmakers must harmonize regulatory frameworks and ensure cross-border technological compatibility. NGOs must further expand inclusion by helping to improve financial literacy and by leveraging the benefits of fintech at grassroots level.
Jaroslav Gaisler Chief Executive Officer Financial Services & FinTech, Abdul Latif Jameel
“The rewards could be deep and enduring,” says Jaroslav Gaisler, Chief Executive Officer, Financial Services & FinTech, Abdul Latif Jameel.
“Fusing fintech with the concept of financial inclusion unleashed the ideas and energies of untapped innovators within markets too often overshadowed by more mature economic rivals.
“We all stand to benefit from a mutually prosperous world.”
Fast Facts: Tech’s impact on financial inclusion
How many adults worldwide lack access to basic banking services?
Approximately 1.4 billion people – about a quarter of the world’s adult population – are unbanked, with no access to a bank account or appropriate alternatives.
How has mobile technology adoption changed the financial landscape?
As of 2023, there are 4.3 billion cellphone owners worldwide (over half the global population), and fintech has helped more than a billion previously unbanked people access financial services over the past decade.
Which regions are most affected by financial exclusion?
Around 80% of the 1.4 billion financially excluded adults live in emerging markets, particularly in Sub-Saharan Africa and Asia, which are also on the frontline of climate change challenges.
How much progress has been made in reducing the number of unbanked people?
The number of unbanked adults has fallen significantly from 2.5 billion in 2011 to 1.4 billion today, demonstrating steady improvement in financial inclusion.
How many countries have national financial inclusion strategies?
More than 60 countries have launched national financial inclusion strategies involving multiple stakeholders from telecoms, environment, education, and financial regulation sectors.
A sign with the Toyota logo in Surrey, England on August, 2023
Peter Dazeley | Getty Images News | Getty Images
Toyota Motor on Wednesday missed operating profit for the quarter ended September as the Japanese auto giant bears the brunt of U.S. tariffs.
Here are Toyota’s September quarter results compared with mean estimates from LSEG:
Revenue: 12.38 trillion yen (about $81 billion) vs. 12.18 trillion yen
Operating profit: 834 billion yen vs. 863.1 billion yen
The world’s largest carmaker by sales volume reported a nearly 28% drop in profit , year on year, while revenue increased over 8%.
The company released 6-month results — from April to September — and the quarterly numbers have been calculated by CNBC, based on company statement and LSEG data.
The company’s profit fell for a second straight quarter since the United States introduced “reciprocal” tariffs in April. Tokyo in July clinched a trade deal with Washington, bringing down tariffs on its exports to the U.S. to 15% from the 25% initially proposed by President Donald Trump. The 15% tariffs took effect on Aug. 7.
Japanese shipments of automobiles to the U.S. have seen a sharp decline in terms of value, with exports dropping 24.2% in September, slightly less compared to the 28.4% drop in August.
Despite tariff headwinds, Toyota has continued to benefit from strong global demand. The company recently reported that vehicle sales, including its luxury brand Lexus, reached 5.3 million from April to September, a 4.7% increase year-over-year.
