SPECIAL FEATURE
OFQ : Do we need a new global standard for data collection? GB: This increased data collection is an opportunity to create common standards, while drawing on di ff erent perspectives. In the multilateral and bilateral world, many actors share similar aims and often co-finance projects. With standardization and shared templates, clients will have clearer expectations of what is required, even if the due diligence varies across the di ff erent institutions. Although some areas are especially sensitive for certain institutions, the core standards will largely align. We can simplify so much. Meanwhile, using technology and generating synergies can save huge amounts of time and money. For example, joint tendering for products can enhance negotiating power with vendors. However, changing mindsets is never easy and adopting a global approach for the common good requires a strong, concerted e ff ort. OFQ : How long will this take? GB: The digital transformation is a long- term project that will take years. While everyone wants to see immediate and fundamental change, changing the way we work will take time. Overall, I’m optimistic. The technological revolution is here and advancing rapidly. ChatGPT was only launched in November 2022 and is already changing the way we work. These new-tech tools are already making an impact, helping to create the conditions we need to achieve our long- term vision – to leverage the billions into the trillions.
this physical climate risk and reduce the need for on-site visits, saving both time and resources because one can quickly verify the trends through satellite data. Climate transition risk is more complex – so that’s a story for another day. OFQ : How can we improve our forecasting and scenario planning, given the very uncertain world we live in? GB: Data innovation is the most important transformation for MDBs and it can significantly simplify the management of the thousands of contracts we have with clients, which are complex to manage. To put this in context, look at how big tech firms like Amazon, Facebook and Google have evolved over the last few years. Their business models are fundamentally data driven. Amazon is not making money from selling products over the internet; it’s making most of its revenues from collecting and managing vast amounts of data on the cloud. As an Amazon customer, one day you browse and buy things, the next day you receive targeted suggestions. Imagine the same process in finance. By understanding our customers, their preferences, peers and track records, we can anticipate their needs and o ff er tailored products under optimal conditions. But MDBs have rarely worked like this in the past. They have traditionally been more reactive, often responding to client requests that are hard to predict. Some MDBs are starting to realize that they can become much more knowledgeable about their customers and peers to anticipate their needs. This foresight then can become part of their proactive interaction with clients as opposed to being in a reactive mode. This represents a step change in the way we operate – however, for this transformation to be successful, we must collect data in a transparent and intelligent way. In Europe, we rightly care about data protection. At the same time we need to ensure the flow of data to remain globally competitive. It’s a balancing act between safeguarding privacy and enabling innovation, but it’s essential to prevent Europe from lagging behind other regions that have less stringent data protections.
“New-tech tools are already making an impact, helping to create the conditions we need to achieve our long-term vision
– to leverage the billions into the trillions.”
Guido Bichisao, Senior Advisor, European Investment Bank
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