There are a number of key elements in the title of this year’s FinanceMalta conference. Any status quo needs to be constantly challenged and the financial services sector is facing a range of opportunities and competitive threats that require change. However, that change needs to be driven by leadership, with all this word implies in terms of having a clear vision, being able to bring all the stakeholders on board, and handling the metamorphosis. There will be aspects that require more commitment and others where the pace needs to be managed to ensure that it is comprehensive and robust.

And how is change going to be achieved? The word ‘innovation’ has unfortunately become a bit of a buzzword, being used to cover everything from digitisation to disruption. We tend to talk about innovation as though it is a new concept, overlooking the dynamic journey of the past few decades.

Innovation is inevitable and it is up to us to find areas where Malta can build on solid foundations. Perhaps rather than talking only about creating niches, we should be talking about centres of excellence – identifying areas where we already have regulatory and legislative frameworks, or where our dynamism can create them; areas where we already have significant expertise and enthusiasm.

Many of these areas are being tackled during the 16th FinanceMalta annual conference, to be held on September 13. The agenda will bring inspiring speakers from Malta and beyond, who will – through speeches, ‘fireside chats’ and panel discussions – highlight what Malta could achieve.

Given the natural disasters like wildfires and floods we have witnessed in various areas around the world over the past years, working towards net-zero emissions is an obvious target. We will be discussing the role that financial services have in this sphere, while also looking at other environmental, social and governance objectives.

Sustainability is no longer a theoretical concept but an existential one – and one where we no longer have the luxury of procrastination. The use of ‘green bonds’ to drive investment into sustainable proposals cannot be underestimated. Money talks, as much now as it has ever done… In Malta, the Water Services Corporation proved that there was demand, with its €25 million green bond – the first of its kind in Malta – taken up within just a few hours.

From green, the discussion will move to ‘blue’, in this case the importance of the maritime sector, which Malta has been associated with since 1967, when Arvid Pardo, the Maltese ambassador to the United Nations, delivered a speech to the UN General Assembly, calling for the deep seabed to be declared the common heritage of mankind. We should align our investments with ways to create a sustainable ocean-based, ‘blue’ economy, just as we are doing with the ‘green’ one. Indeed, the Maltese maritime flag is the leader in the EU and the sixth largest in the world.

In the afternoon, the conference will be looking not only at this sector, but also at the aviation industry, giving the audience the opportunity to identify common concerns and opportunities across the maritime, aviation and financial services industries.

The conference will also look at enabling frameworks, such as the possibility of internationalising the Malta Stock Exchange – not quite the privatisation envisioned back in 2006, but rather a process which would enable it to extend its reach internationally.

Another area is the use of fintech, which Malta has already identified as an area where it can achieve excellence. This has already been recognised by consulting firm McKinsey, which recently described the island as being an ‘unexpected pocket of strength’.  This will be backed up by the presentation of a study on fintech in Malta carried out by Mastercard, which aims to foster the growth and maturity of Malta’s fintech sector, ensuring it remains at the forefront of global trends and developments.

The following panel session will give the audience a chance to appreciate just how much is already being done in this sphere, both from a local company perspective, as well as from the outcome of the Mastercard study.

The next interventions will be more technical, looking at ways in which data is being harnessed, from telematics in insurance, AI-driven credit solutions and hyper-personalised offerings in banking, to data-driven wealth management offerings. Experts will also discuss how to test artificial intelligence solutions in a ‘sandbox’ environment before releasing them on the market. ​

A speaker from the World Alliance of International Financial Centres will then focus on Malta’s international standing as a financial centre. FinanceMalta joined this alliance in October 2022 and welcomes this opportunity to learn how financial centres can benefit from collaboration and knowledge-sharing.

All of this depends on a cohesive strategy. This was entrusted to the Malta Financial Services Advisory Council, which has been and is still in the process of identifying bottlenecks and opportunities for a sector that contributes some 11 per cent of the country’s GDP, employing over 17,600 people.

The national strategy which was launched last March came at an important time for Malta. It had been put onto the grey list by the Financial Action Task Force, and, following an intense year of action to tighten up the country’s systems and frameworks, Malta was taken off the grey list. However, this was never meant to be the end point of the transformation process.

The MFSAC, working with the government, regulators, enforcement agencies and the private sector, came up with 175 action points, which are being carefully mapped for cross-cutting impact and for their pragmatic implementation, from quick-wins to more complex ones which require investment, resources and time. This is being handled by a project management office.

Cognisant of the need to maintain the momentum for change, the MFSAC is identifying what should be achieved over an 18-month period to December 31, 2024.

Stakeholders met in June and July for an update on what is already in the pipeline, with other meetings planned to coordinate the efforts and ensure that there is no slippage in the timelines.

Last year’s conference was entitled ‘Learning from the past: Looking to the future’, a somewhat subdued reflection on the greylisting and its lessons. A year later, we have an opportunity to look at what can be achieved through ‘leadership’, ‘change’ and ‘innovation’.

George Vella is chairman of FinanceMalta.