At FinanceMalta Annual Conference 2024, Emmanuel Daniel, founder of The Asian Banker, talked about the evolving landscape of global financial centres and the key factors shaping their future. In his keynote speech, he emphasised the need for financial centres to identify their state’s unique strengths and leverage these characteristics to build a distinct global presence. This approach would allow them to create competitive advantages that resonate internationally, but draw from their organic competencies.

He said, “The underlying theme in the evolution of financial centres is that they are moving away from institutional focus to a greater personal wealth focus. As individuals gain more control over their wealth and are able to direct discretionary incomes, they are looking for jurisdictions that will support them.”

This shift, he noted, is seen in the dramatic rise of single family offices in the US, Singapore, and Hong Kong.

The evolution of financial centres is also influenced by economic shifts in countries like South Korea, Taiwan, and Hong Kong, which have achieved success through strategic investments in industry and technology, enabling them to transition from being underdeveloped to prosperous economies.

He also touched on the rise of competent states. Daniel noted that there is an increasing number of states where governments are actively building economic capacity. This development sometimes occurs at the expense of the country’s entrepreneurial class, suggesting that a state should not be overly competent to allow businesses to thrive and contribute to the overall economy.

He likewise stressed that information will become a core asset of financial centres in the future as hubs worldwide adapt to technological advancements, regulatory changes, and shifting economic trends.