Banking On Society

One of the things we considered was that a key to making banking’s gains sustainable is reinvestment and effective regulation. Profits that are responsibly reinvested in growth benefit shareholders, clients, and society alike. Effective regulatory frameworks are crucial and can enable growth and inclusion while reducing unnecessary costs.

BANKS ARE NOT just financial institutions; they are essential engines of modern societies. At present, financial services account for between one-fifth and one-quarter of global GDP. Done well, banking fuels entrepreneurship, infrastructure, innovation, and job creation. Banks accelerate wealth creation and broaden opportunity by financing small- and medium-sized enterprises, housing, and trade. They are also resilient shock absorbers in times of crisis, with capital, liquidity buff ers, and prudent risk management enabling stability when it matters most.

The collaboration we see in Dubai offers an inspiring example. There, regulators, policymakers, and banks are working hand in hand. As a result, fintech activity has grown by 28% and investment by more than 16% in the past year. This partnership mindset - between public and private actors - is what transforms short-term profits into long-term prosperity.

How can banks balance competitiveness with responsibility?

This question was also put to me by Hussein Sayed, and it could not be timelier. Competitiveness and responsibility are often portrayed as being in tension. In reality, they are inseparable partners. They go hand in hand.

Banks can promote financial inclusion while remaining commercially competitive. Affordable accounts, microcredit, and digital payments help underserved communities thrive—and in doing so, they create new markets. During the Covid-19 crisis, inclusive lending initiatives, supported by governments and regulators, demonstrated that stability and inclusion can advance together.

Equally, banks and regulators can co-design digital identity systems, reducing duplication, cutting costs, and enabling wider participation. Smarter regulation targets wrongdoers while enabling honest clients and banks to flourish. Excessive compliance, by contrast, risks drowning clients in paperwork and eroding trust.

Competitiveness also demands resilience. Cyber threats, money laundering, and climate risks must be managed systematically. A bank that competes without responsibility undermines its own future. A bank that integrates both strengthens its long-term stability, reputation, and contribution to society.

At S.P. Hinduja Banque Privée S.A., we hold firmly to my grandfather’s maxim: one’s word is one’s bond. Integrity is not an accessory to competitiveness; it is its foundation.

How can banks embrace technology without losing relationships?

Technology is transforming finance at extraordinary speed. Fintechs, private credit providers, and digital platforms are reshaping markets. Artifi cial intelligence has already reduced mortgage approvals from days to hours. Yet speed must not come at the expense of trust.

Banks must embrace technology as an enabler, not as a replacement for human relationships. Clients still value personal engagement - whether in person, digital, or a blend of both. At its best, technology supports these relationships by removing friction and improving efficiency.

Fintech partnerships are one way forward. By combining the stability of established banks with the innovation of digital disruptors, we can deliver better services more quickly and at scale. However, technology’s risks are real: from fraud in biometric recognition to systemic vulnerabilities in AI systems. Cyber resilience must keep pace with innovation.

Here again, regulation plays a role. Banks and regulators must adapt frameworks at the speed of technological change, not years behind it. Smart regulation and resilient banks will ensure that technology strengthens - not weakens - the trust on which banking is built.

How important is strategic focus for lasting societal impact?

The core essence of banking remains the same: delivering fundamental financial services reliably, responsibly, resiliently. Strategic focus - doing fewer things better - is vital. But so is collaboration. Depth, where a bank is strongest, and breadth through sustainable partnerships, is the formula for lasting impact.

Co-financing initiatives with development banks provide an example. By channeling private capital into public goods such as aff ordable housing, clean energy, and water infrastructure, banks can broaden their societal contribution while remaining anchored in their core competencies. Partnerships with fintechs, NGOs, and other institutions further amplify reach and impact.

Digital transformation changes the mode of delivery, not the mission. The mission remains: enabling clients to prosper, societies to grow, and economies to stabilize. Strategic clarity ensures banks do not get distracted by every passing trend but instead focus on what they can do best - while collaborating to expand their impact where others bring complementary strengths.

Toward better banking?

What, ultimately, am I suggesting? Banking that is smartly regulated, resilient, and responsible. Banking that embraces technology while nurturing trust. Banking that balances competitiveness with responsibility and reinvests gains for long-term societal benefi t.

This is not a utopian ideal. It is a practical necessity. The global economy depends on eff ective fi nancial services. By honoring integrity, embracing innovation, and partnering widely, banks can deliver strong returns for clients and shareholders while supporting financial stability, inclusive growth, and societal progress.

Since 1994, our mission at S.P. Hinduja Banque Privée S.A. has been to be a bridge between East and West, combining Switzerland’s tradition of banking excellence with on-the-ground expertise in Asia and the Middle East. Guided by our family values, we aim to act boldly yet responsibly - to build a more prosperous and more inclusive fi nancial future for all our stakeholders.

Photograph by Oliver Remualdo for Forbes

By Prof. Dr. Shanu S.P. Hinduja

Contributor

Prof. Dr. Shanu S.P. Hinduja is Chairperson of S.P. Hinduja Banque Privée, S.A.