In an insightful discussion with Finextra TV, Antony Jenkins, founder and executive chairman of 10x Future Technologies and former CEO of Barclays, emphasizes that transparency is paramount in the drive towards sustainability.
“The challenge organizations face is the realization that it’s impossible to satisfy everyone. Leaders must prioritize their commitments and be clear about what they are delivering and what they are not. It’s crucial to communicate the reasoning behind these decisions and manage operations accordingly,” Jenkins explains.
He highlights that even amid disagreements concerning the allocation of resources for sustainability initiatives, the ability to justify decisions with clear reasoning is vital. This transparency is inherently connected to effective reporting mechanisms and reliable data sets.
Jenkins points out that inconsistencies in reporting have been a persistent obstacle to enhancing financial sustainability. Organizations struggle to choose a reporting standard and implement necessary operational changes while still achieving financial returns. This inconsistency hampers firms’ ability to provide relevant data and complicates matters for investors who rely on trustworthy information to make informed decisions.
Addressing the clarity issues facing regulators, Jenkins underscores that banks must help their customers—who may not be well-versed in financial intricacies—understand their business practices. For banks to demonstrate fairness, it is essential to transparently identify and articulate their core actions. Developing a strategy to enhance this transparency should be a priority for financial institutions, which control vast amounts of data and can leverage it effectively.
He notes the potential of technologies like machine learning, artificial intelligence, and blockchain in data management, but cautions, “The challenge lies in the fact that this data exists in disparate systems that do not communicate with one another.” This fragmentation complicates banks’ ability to create a unified view of their customers, as individuals are represented in various ways across different datasets. “Addressing this data issue must be the initial focus.”
Jenkins further explains the critical role financial services play in achieving broader sustainability goals: “The banking system is central to the economy, which in turn is essential for our society. To foster prosperous and stable communities, we need robust and stable economies, which depend on a fair and effective banking system.”
He concludes that getting banking right is essential for ensuring the success of both the economy and society as a whole, emphasizing the bank’s role as a catalyst for economic activity.