Geopolitical instability — such as the conflict in Ukraine and tensions with China — is adding fuel to this fire.
The past 40-odd years have provided a relatively favourable environment for economic growth due to factors such as low interest rates, a stable geopolitical environment, globalisation, and growing urbanisation and wealth in large markets such as China. This run, however, seems to be ending.
Added to this mix is the urgent drive for business to be more sustainable and for New Zealand to be net carbon neutral by 2050, along with digitisation, which in the finance sector means increasing use of disruptive technologies such as AI, big data and block chain.
Lagging productivity levels and growing wealth inequality, which have a disproportionately negative impact on Māori and Pasifika communities, are further substantial, persistent challenges facing New Zealand.
Coming together
So how do we navigate this challenging environment? And what role can the financial services ecosystem play in facilitating this?
They're central questions that will be the focus of Navigating the transition — the 2022 Infinz Conference, which will take place at Auckland's Aotea Centre on October 27.
The annual conference is New Zealand's premier event for those working in the finance and capital markets ecosystem and hosts the most influential players in New Zealand's finance sector.
The 2022 conference will be opened by Finance Minister Grant Robertson, who will address the place of the New Zealand economy in an uncertain and volatile world, with a focus on how to grow a high-wage, low-emissions economy that provides security for all.
This will be followed by a fireside chat, facilitated by Infinz Fellow Fran O'Sullivan, with regulators Reserve Bank of New Zealand governor Adrian Orr and Financial Markets Authority chief executive Samantha Barrass. With central banks in the midst of reining in inflation, which is at a 30-year high, they'll discuss if a "soft landing" can be achieved and how a "hard landing" might be avoided. The FMA will soon have an expanded brief to oversee conduct regulation of banks and insurers and wishes this to be undertaken through a principles, rather than a prescriptive, based approach — what will this look like?
Sustainable solutions
Redirecting more of the billions of dollars of investment that flows through our finance and capital markets ecosystem into sustainable solutions will be crucial for meeting many of these challenges, particularly climate change and wealth inequality.
As noted by Toitū Tahua Centre for Sustainable Finance: "Sustainable finance is about leveraging the power and resources of the financial industry. It is about divesting from unsustainable business practices and investing for an equitable and inclusive, thriving low-emissions economy." How the financial services industry can enable positive change and create a more sustainable and equitable society will be the focus of another regular feature of the Infinz Conference — the major bank CEO panel. With many New Zealanders facing rising living costs and challenges related to housing affordability and accessibility, the leaders of New Zealand's five major banks will discuss what their organisations' are doing to help address these issues, and create a more resilient and prosperous New Zealand.
Making an impact
Impact investment is an emerging and fast-growing area of financial services. Exploring how this kind of investment can contribute to a more equitable society will be a major topic for a panel at the conference, which will include veteran company director Rob Campbell, and Mercer NZ chair and Ngāi Tahu Holdings director Kristen Kohere-Soutar, who developed Kiwibank's first Māori banking strategy. The third panellist will be Community Finance Founder and CEO James Palmer.
Community Finance provides low-cost finance to community housing providers to build new affordable homes, while offering wholesale investors a way to direct their capital to projects that will create a positive social impact. The organisation's work to help address one of the country's most significant challenges — housing accessibility and affordability — was recognised with the Innovation in Financial Services Award at the 2022 Infinz Awards.
Global outlook
Sharing global perspectives is an integral part of the conference, and in a climate of rising geopolitical uncertainty, this will be another important focus of the 2022 event. Former minister for trade and climate change and former New Zealand ambassador to the US Tim Groser will explore whether rising geopolitical conflict and trade wars will reverse 30 years of globalisation and economic integration — along with the implications for our economy and businesses.
Providing economists' perspectives on geopolitical tensions and global issues will be Carl Tannenbaum, Chicago-based chief economist at US$1.2T fund manager Northern Trust and ANZ New Zealand's chief economist Sharon Zollner.
A new vision
While technology is disrupting many traditional business models, its role as an enabler of change has been an ongoing focus for those working in financial services.
And it's a topic that one of New Zealand's most successful entrepreneurs, Sir Ian Taylor, will tackle with an address later on the day of the conference.
The founder and managing director of Dunedin-based Animation Research, which produces graphics for some of the world's biggest sporting events, Taylor (Ngāti Kahungunu, Ngāpuhi) will share his story as a Māori business leader, and how technology leadership can create a more sustainable future.
He'll then join a panel of CEOs, also including new Auckland Airport chief executive Carrie Hurihanganui, Fidelity Life CEO Melissa Cantell and Skellerup Holdings CEO David Mair, who'll share stories of navigating change, the lessons they've learned, and their vision for the future. After two years of being held virtually, the Infinz Conference will return as an in-person event in 2022, leading to greater networking opportunities.
• For more information: https://www.infinz.com/Site/InfinzConference/
- Jim McElwain is Executive Director of the Institute of Finance Professionals New Zealand (Infinz).
Infinz is a sponsor of the Herald's Capital Markets report.
