Finance Desk

Deindustrialization and recommodification have been setting Latin American economies back for decades. Can a push for greater productivity put them on track again?

In the 10 years from 2014 to 2023, Latin America’s aggregate economy managed to quietly reach depths unknown even during the dismal Lost Decade that followed the onset of the region’s debt crisis in 1982. The recent period logged average annual growth rates of 0.9%, compared to 2% a year four decades ago, notes Marco Llinás, head of Production, Productivity and Management Division at the Economic Commission for Latin America and the Caribbean (ECLAC), a UN agency based in Santiago, Chile.

The Covid-19 pandemic made a dent, but two parallel trends contributed steadily throughout the period: deindustrialization and the recommodification of exports. Their origins predate 2014, and they can be observed across the region, with perhaps the exception of Mexico.

Future economic historians may wonder why nobody saw it coming, although contemporary analysts still disagree about the relative importance of the two elements. “The phenomenon of deindustrialization is not the same as recommodification,” says Llinás. “The two phenomena may or may not happen at the same time.”

Both continue to play out amid a confluence of factors: the decline and fall of globalization, China’s growing role in the region, and the Trump tariffs, to mention just a few. But how did it start?

Economists of all ideological stripes tend to agree on the steps that have traditionally facilitated the march from underdeveloped to developed. Nations begin with low value-added production and basic services. Then comes industrial development and the emergence of a working middle class. Ultimately, services prevail, often high-end ones fueled by technology. Think of South Korea. In the 1950s, it made headlines for battles in the Korean War over uninhabited strategic landmarks like Pork Chop Hill. Now, it is known as the home of Blackpink.

Until the debt crisis of the 1980s, Latin America seemed to be holding its own. Its aggregate growth rate was 5.2% per year (6.8% in powerhouse Brazil) from 1951 to 1980, ahead of the world (4.5%) and not much shy of Korea (7.5%) and Japan (7.9%), according to a 2004 paper by the Inter-American Development Bank. Using a narrow definition of manufactures, Brazil more than doubled the share of industrial exports in GDP from 10.8% in 1968 to 23% in 1973, fueled by industrial growth of 13.3% a year during that brief period known as the Brazilian Miracle.

From 1981 to 1993, saddled with the debt crisis and its aftershocks, the region stumbled behind with 1.7% annual growth while Korea continued to sprint ahead at 7.2%. As globalization began to help lift parts of the world out of poverty—albeit unequally—in the 1990s, Latin America mostly watched from the sidelines: either by choice, preferring relative isolation, or due to lack of competitiveness.

Premature Deindustrialization

“Premature deindustrialization” is the term economists use to describe a shift away from manufacturing before the economy in question has attained a robust level of industrial production. It happens at income levels lower than today’s richest nations have historically reached. The latter are sometimes called “post-industrial” societies, characterized by high-end, technologically enhanced service sectors.

Premature deindustrialization has also occurred in sub-Saharan Africa and parts of East Asia. But it’s especially striking in Latin America, given the very different trajectory its economies were on prior to the 1980s.

“Argentina’s manufacturing subsystem shows a clear shift toward low-tech employment, with an increasing dominance of low- and medium-low-tech industries, undermining the potential for higher-value-added manufacturing,” Martin Lábaj and Erika Majzlíková of the Bratislava University of Economics and Business write in a recent paper. Brazil “faces the most severe deindustrialization, characterized by a growing reliance on low-tech manufacturing and low-knowledge-intensive services, exacerbating its economic challenges.”

The contribution of manufacturing industries to Brazilian GDP fell from 36% in 1985 to just 11% in 2023, according to official statistics. “Why is it a problem?” Llinás asks. “Because industry has higher productivity and faster productivity growth. Plus, greater potential for expansion.”

Multiple factors cause premature deindustrialization, economists say: globalization; automation, stunting job growth; shrinking global demand for products.

They also point to a litany of “structural factors” that run from resource dependence to weak institutions; and policies that stunt investment such as high taxes, red tape, poor infrastructure, and cumbersome labor laws. “The country is very closed,” says Sérgio Goldman, a São Paulo-based corporate finance consultant, referring to his native Brazil.

Imports began to grow—from $60.4 billion in 1990 to $359.4 billion in 2000, according to World Bank statistics. A dominant traditional trade partner increased its exports of manufactured products to the region. Indeed, evidence of the political nature of Trump’s 50% tariff on Brazil included the fact that the US had a trade surplus with that country.

More recently, observers highlight closer trade ties with China and a subsequent influx of cheap manufactured goods, sometimes sending local producers reeling. “The auto parts sector in Colombia was really hurt by Chinese competition,” says William Maloney, chief economist for the Latin America and Caribbean region at the World Bank Group.

Given many countries’ history of protectionism, innovation is not top-ofmind among Latin American executives, according to Goldman. “My problem is with management,” he says. “Companies lack good managers.”

Whereas Japan parlayed its once abundant copper deposits into the establishment of leading global firms in the sector, Chile never seemed able to follow suit, Maloney notes: “In Chile, only a few firms are near the technological frontier.”

But is deindustrialization due primarily to “automation, trade, robots, or the China shock?” he asks. “It isn’t exactly clear.”

Recommodification

The second significant trend is “recommodification,” or the “reprimarization” of exports.

Thought to be emerging from commodity dependence during the last century, Latin America fell back on churning out greater volumes of raw materials during the commodity boom of the 2000s.

Driven by demand from China, but also India and other fast-growing economies, a 2000-2014 super cycle was followed by a second surge at the beginning of this decade. Each wave tends to leave export volumes at higher baselines; Brazilian soybean exports keep setting records, for example.

Commodities as a percentage of total exports in 2000 vs. 2020 jumped from 41.1% to 55.6% in Brazil, 63.1% to 83.2% in Chile, 55.6% to 65.1% in Colombia, and 73.2% to 85.3% in Peru, according to data provider Trading Economics.

Comparing 2024 to 2023, “agricultural products (11%) and mining and oil (11%) were the main contributors to growth in goods exports, while manufacturing exports remained stagnant,” ECLAC reports.

“Productivity Is Everything”

Pundits and policymakers are notoriously disputatious when it comes to Latin America; the region has dabbled for decades in everything from import substitution to the free market liberalism of the Milton Friedman-inspired Chicago Boys. Nowadays, however, they seem to be reaching a near consensus.

The post-2014 downturn “is in large part due to stagnant and even declining productivity,” posits Llinás. He adds, paraphrasing Nobel Prize-winning American economist Paul Krugman, “productivity isn’t everything, but in the long run it is everything.”

Four of the region’s leading economies—Brazil, Chile, Colombia, and Mexico—are implementing what Llinás calls “productive policies,” which he is careful to distinguish from old-school industrialization strategies. A common characteristic: the selection of a handful of priority sectors, industrial or not. These may include agriculture, mining, or services such as sustainable tourism.

The Brazilan program, for example, earmarked R$300 billion for credit, public purchases, regulatory reform, and infrastructure investments designed to benefit six sectors during the initial 2024-2026 period.

Investment in commodities also has its champions, especially given the potential for innovative spin-offs. Efforts to improve business practices in sectors such as mining and agribusiness can spur investments related to industrial processes and highend services, for example, say Llinás and Kieran Gartlan, a São Paulo-based managing partner of The Yield Lab Latam, a venture capital fund focused on agrifood and climate technology. Gartlan refers to large-scale farms such as Brazilian soybean producers as “open air factories” and points to start-up suppliers that are developing new technologies in fintech, drones, biotechnology, and beyond. His firm has mapped some 3,000 high tech start-ups in the Latin American agricultural sector.

But credit availability is proving a roadblock.

Private banks “don’t really have an appetitive” for farming, Gartlan notes; lacking the expertise to properly evaluate risk, “they put up big spreads that make [credit] expensive for farmers.” Many relatively large producers fail to invest in silos to store crops for sale when prices go up, for example. Instead, they live from harvest to harvest, paying off last season’s bills as the crop comes in.

The will to transform Latin America’s economy—much of it—in a more productive direction is there; the next step is for investors and lenders to buy in.

Some of Latin America’s smaller nations are stealing the limelight as US tariffs bring economic headwinds to the region.

Some of Latin America’s smaller states are flipping the script on their larger rivals. Guatemala, Jamaica, and Barbados have all received credit rating upgrades this year and their economies have been bolstered by strong remittance growth and stable labor markets. Meanwhile, traditional stalwarts Brazil, Colombia, and Mexico grapple with uncertainty.

Brazil faces the twin threats of 50% tariffs, courtesy of US President Donald Trump, and the ongoing trial of former President Jair Bolsonaro, which has caught the attention of his friend in Washington. This has the potential to cause further difficulties for incumbent president Luiz Inácio Lula da Silva, but at the same time could revive his stuttering campaign for re-election.

In Colombia, a series of reforms aimed at boosting the rural economy has locked President Gustavo Petro in a series of battles. Attempts to force through reforms that would affect rural areas, including redistributing 570,000 hectares of land and recovering occupied areas linked to paramilitary leaders has seen Petro fight with Colombia’s congress, mayors and even infighting in his own party. Most recently this has been with mayors over a trip to Washington to discuss the war on drugs, with Petro arguing the group of local officials could not represent the country.

Mexico looks to narrowly avoid recession in 2025 as the World Bank estimates 0.2% growth for the year. President Claudia Sheinbaum has taken a conciliatory approach in dealings with the mercurial Trump, giving her government more time to sort out domestic issues including Pemex’s debt restructuring and reform of the judicial sector.

All this leaves some observers viewing the glass as half full, at least.

“Though we’ve revised down our projections for US growth quite a bit since the start of the year, our projection for Latin America has stayed stable,” says Todd Martinez, senior director and cohead of the Americas for Fitch Ratings’ sovereigns group. “That’s noteworthy, and signals that we’ve come a long way from the ‘When the US sneezes, Latin America catches a cold’ thesis that used to prevail in economic analysis of the region.”

Latin America is not homogenous, Martinez points out. Brazil and Mexico’s economies are slowing down after years of quality growth, with forecasts pointing downward for Mexico in particular. This has given a set of countries whose sovereign debt is categorized as “low-beta credit with defensive qualities,” by Wall Street experts including Barbados, Bahamas, Guatemala, Jamaica, and Paraguay, a chance to shine.

The catalyst is the mixture of a weakening US dollar and commodity prices that remain high, especially for metals. Remittances to the region, especially the Northern Triangle of El Salvador, Guatemala, and Honduras, have shown growth up to 20%. Combined with methods that Latin American central banks honed during the pandemic to keep inflation under control and labor markets resilient, Latin American sovereign debt is being viewed positively.

Upgrades For Outliers

Guatemala was confirmed as BB by Fitch in February with its Long-Term Issuer Default Rating (IDR) Outlook improving from stable to positive and by Standard & Poor’s to BB+ in May. The state’s debt to GDP ratio has traditionally been small for the region, a result of its having not missed repayments since the 1980s combined with a lack of political will to take on too much debt. Debt to GDP this year is 28%, having averaged 27% from 2014 to 2024. But Guatemala’s tax-to- GDP ratio is also one of the lowest in the region; in 2022, tax revenues were just 14.4% of GDP against a Latin American and Caribbean average of 21.5%.

The largest economy in Central America, Guatemala is currently attempting to pass its biggest-ever budget, 163.78 billion quetzals ($21.36 billion). Having passed a Competition Law last November after decades of trying, the government is going big on infrastructure projects. These include a planned metro for the capital and upgrading its ports and the main La Aurora airport in Guatemala City.

In the Caribbean, Barbados remains a moderate risk for investors according to Wall Street analysts interviewed for this piece, but with a significant reduction in its debt-to-GDP burden—down to 77% from a peak in 2018 of 158%—and signs of economic recovery. These include projected 2.7% growth for this year, according to the Barbados Central Bank, with unemployment at its lowest in recent history. The recovery is in part down to innovative use of tools such as the first debt-for-climate-resilience swap, which raised $125 million last December, following a trend of swapping high-interest debt for more sustainable issues.

Moody’s revised its rating outlook upward for the Bahamas in April from stable to positive, and the same month, Fitch announced a BB- with stable outlook, complimenting the islands’ high GDP per capita and fiscal consolidation. The government’s budget deficit declined to 1.3% of GDP in the fiscal year that ended in June, from 3.7% in fiscal year 2022-23. The primary surplus hit 2.9% in the following fiscal year, its highest level in 25 years. The new global minimum tax could add another 1% to the country’s GDP according to Fitch, although Washington’s declaration that it would pull out of the minimum tax accord has thrown the project into doubt.

Jamaica maintains a BB- rating with a positive outlook following Fitch’s review in February. Analysts argue that if Jamaica were to sell sovereign debt, it would benefit from having demonstrated fiscal discipline under multilateral programs—a contrast to the Dominican Republic, which, despite decades of strong GDP growth, has not shown the same record of controlling its finances.

Back in Latin America, Paraguay has leveraged capital market reforms to attract foreign investment. In December, the Central Bank of Paraguay changed its rules for the issuance, custody, and trading of public debt securities, including allowing foreign investors to buy bonds through global custodian banks. Coupled with expanding foreign exchange and hedging transactions for foreign investors, the change pushed the state’s sovereign debt to investment grade. Foreign funds had already increased investment in guarani-denominated government bonds from 1.7% in 2023 to 5% in 2024 due to Central Bank reforms enacted with World Bank assistance.

Due Diligence A Must

Why the divergence between ratings for the region’s larger and smaller, frontier economies?

“It’s difficult to identify a single reason,” says Martinez, “but broadly speaking, it seems that these frontier markets either seem to be demonstrating stronger growth rates or tighter fiscal positions than their larger neighbors have been capable of.”

Whether the trend continues, he warns, Latin America has shown less inclination to drive ambitious reforms than have emerging markets in Asia and Europe. Yet, investors are increasingly interested in local currency debt in Latin America, suggesting growing confidence in the region at the expense of the US dollar.

If some countries are outperforming expectations, there are always some losers. An ongoing US Treasury Department investigation into Mexican financial institutions CIBanco, Intercam, and Vector has refocused the regional banking system on compliance with the Foreign Corrupt Practices Act (FCPA). After a brief state intervention, Banco Multiva acquired CIBanco’s assets in August; the same month, Kapital Bank bought Intercam Banco, pledging to invest $100 million in it. This comes at a sensitive time for Kapital, which is looking for investors at a proposed valuation of $1.4 billion.

Rich Fogarty, head of the Disputes and Investigations Practice for Latin America at consultancy S-RM, says, “Compliance is an afterthought most of the time. There will be all sorts of risks with digital assets and digital banking, especially with cartel and TCO [transnational criminal organization] issues.”

Digital banking is of particular concern to Mexico, since it has seen a spurt of foreign fintechs attempt to break into its market in the past five years. Brazil’s Nubank now boasts over 12 million customers in Mexico alone and will soon be joined by Argentina’s Mercado Pago. A mixture of lax oversight, volume of entrants, ongoing investigations and diverse financial backgrounds has Fogarty concerned.

Both established economies in the region and those with significant room for development face a common challenge, however, Fogarty notes: US policy highlighted by potentially explosive antinarcotic action, a remittance tax, and tariffs that will affect commodity prices.

“There are tremendous opportunities independent of any of the political crosswinds or regulatory questions. Argentina, Panama, Brazil, and Mexico are real opportunities,” he says. But “given the increased scrutiny by this US administration on the region, which may be more transactional in nature, CEOs need to not just be doing due diligence, but going above and beyond. If they don’t, there are some potentially serious repercussions.”

With a new US tariff regime in place, the region’s economies face their greatest disruption in at least a generation.

When US President Donald Trump initiated a new regime of tariffs on global imports reaching the US, investors reacted by retracting forecasts and rethinking investment dynamics while companies globally started preparing their doomsday scenarios.

The effects in Latin America were no different. Brazil, the worst affected economy, now faces tariffs up to 50% on its exports and services provided to the US: the second highest tariffs Trump has applied to any country, equal to those imposed on India and behind only those hitting China.

Most Latin American companies and economies are not affected as severely as Brazil, but Venezuela’s oil-exporting economy is now also affected by secondary tariffs on third countries doing business with it. The entire region also must reckon with the prospect of reduced global commerce flows and reshaped trade and investment dynamics.

Most Latin economies principally export agricultural products, commodities, textiles, and—in the cases of Mexico, Brazil, and Argentina—manufactured goods. The region’s economies find themselves navigating the greatest disruption in at least a generation. Ultimately, however, some sectors may benefit from trade diversion and new marketing openings.

Venezuela

Aside from Cuba, Venezuela is the only Latin American country heavily sanctioned by the US, which has frozen most of its direct trade in both directions. However, Venezuela still exports oil and gas to a variety of countries. These are now affected by 25% secondary tariffs for purchasing oil and commodities from the big exporter.

“Venezuela remains a rich country with substantial natural resources, enormous potential for investment and a low entrance ticket at the moment for those with patience to ride the current waves and a strategic approach to their portfolio,” says Horacio Velutini, director at Conapri, the agency for investment promotion in Venezuela, and former CEO of the Caracas Stock Exchange.

“We’ve had a highly controlled economy since 1920, heavily dependent on petrol exports, which created the space for never-corrected macroeconomic imbalances,” he notes. The US sanctions began in 2015, but “despite curbing Venezuelan exports to the US, they had the opposite effect of what was intended. New markets opened and the poorest people of the country ended up most affected with the loss of revenue and social and infrastructure programs. Venezuelan entrepreneurs started more heavily investing in their own country, and we see this in the movements of the Caracas Stock Exchange.”

According to Velutini, the privately held bourse currently has a market capitalization of some $7 billion, with an annual exchange volume of between $300 million and $400 million, mostly from Venezuelan investors.

Despite sanctions, some international corporations, including US ones, continue to operate in Venezuela. These include Chevron, under a special authorization from the US government to participate in a joint venture with PDVSA, the Venezuelan state oil company, and Italy’s Repsol.

The sanctions and the political standoff between Caracas and Washington have undoubtedly damaged the Venezuelan economy, Velutini allows.

That said, Venezuela’s GDP has grown for 17 straight quarters, the latest forecast by the Central Bank of Venezuela (BCV) indicates 9.3% growth in 2025 and 5% growth in 2026, he adds. Sources outside Venezuela are less enthusiastic: the UN estimates 5.8% growth this year, while the World Bank projects 2.3% in 2025, and 2.5% in 2026-2027. The IMF has a much grimmer outlook for 2026, projecting the country’s economy to shrink by 5.5%.

Brazil

Latin America’s largest economy and the world’s tenth largest is in a political as well as a trade-based face-off with the US. The Trump administration has been unwilling to negotiate down its 50% tariff on Brazilian goods unless the government of President Luiz Inácio Lula da Silva drops charges against former President Jair Bolsonaro, now convicted by the Brazilian Supreme Federal Court (STF) to 27 years in prison for plotting a coup to remain in power.

Brazilian businesses are struggling to adapt to the new tariffs; China has surpassed the US as the biggest importer of Brazilian goods, while the US sank to the second-largest importer.

“Most meat exports, coffee (Brazil is the world’s largest world exporter of the beans), semi-finished steel products, marble and granite, are affected,” says Daniel Teles, a partner at Valor Investimentos, who works in partnership with Brazilian investment house XP. “Orange juice is one example with detrimental effects on both countries. The US does not produce enough to supply the local market, and the tariffs on their largest exporter will inflate prices for US consumers.”

The principal challenges are lack of clarity going forward along with possible reciprocal tariffs and increased logistic costs.”The US strategy is clear,” says Teles. “They want to reindustrialize the country, increase growth through both local employment and taxation, and curb activity by countries still trading with Russia and other rivals.”

As Brazil scrambles to respond, its trading patterns are being significantly altered.

“Despite the first negative effects, we already see some positive market responses,” Teles says, “such as efforts to redesign logistic flows and a frantic search for new markets, along with expanded trade to current secondary markets. China had already overtaken the US as Brazil’s largest trading partner. This should now increase over time because of US barriers. Kazakhstan, the Gulf Cooperation Council countries, including Saudi Arabia, the EU, and Egypt have untapped potential, too.”

Other Latin countries face similar uncertainties, but not as severe. Mexico has a plant structure similar to Brazil’s but is less affected by the new tariff levels. Argentina has a dollarized economy, helping it absorb the new rates. Uruguay and Paraguay attract foreign direct investment both in the form of companies and wealthy individuals trying to escape heavier taxation elsewhere and, thus, are not as affected by US tariffs as its neighbors.

“In the short term,” Teles predicts, “much of the current uncertainties, including the diplomatic tensions and the risk of further sanctions and tariffs, should remain.” Nevertheless, the Brazilian stock exchange reached an alltime high on September 8, the economy is growing, and official interest rates in Brazil remains at 15%, low enough to attract investment.

Paulo Oliveira, CFO of Formosa Supermercados, which operates grocery and convenience stores, says, “What we see is companies affected by the tariffs absorbing the first impact and lowering their profits, but also trying to sell extra production within the Brazilian market, leading to price drops in coffee, meat products, and several vegetables.”

There will be “significant losses” in prepared containers not yet shipped to the US, Oliveira says, adding that an average of 2,000 containers per week “will now need to find new buyers. Producers of mango and grape from the northeastern part of Brazil, who had the US as their primary market, suffered significant losses and are having to rethink the sales of the current harvest and how they will manage the next cycle.”

Peru

Compared to most Latin American economies, Peru remains stable, with the key interest rate fixed at 4.5% and inflation not expected to surpass 1.7% this year. Most domestic output is centered in services, agricultural products, and mining commodities, especially refined copper, gold, and silver, as well as textiles.

The new US tariff rates mostly affect exports of blueberries, grapes, avocados, and textiles, according to Luis Pretel, senior auditing partner for financial products and commodities at Deloitte Touche & Tomatsu in Peru.

“The solution,” he says, “has been to diversify markets focusing on China, which is already a major player in Peru, as well as searching for new markets in Latin America. Thanks to the mega-port of Chancay, operated by China and inaugurated last year, exports to Asia have become simpler for the country.”

Peruvian companies are redesigning and improving their logistics processes, he notes, introducing digitalization, robotization, and AI, and crafting new cooperative and international agreements.

“Luckily, refined copper has been on the list of exemptions of US tariffs,” he adds, “and that industry is not affected by the current measures while gold and silver are stable in the international markets.”

That said, the government has lowered its GDP growth prediction for the year from 4.1% to 3.5%, anticipating diminished economic output and investments.

Pretel remains guardedly optimistic, however: “Ultimately, this will result in better logistic flows, new market openings, and Peru adapting through new strategies and a fully independent central bank, which will mitigate the political uncertainties and maintain local economic stability.”

The technology adds as many problems as it solves.

Artificial intelligence can be both a curse and a savior for corporate executives intent on protecting sensitive business and customer data from the onslaught of cyber risks bombarding today’s business world.

AI systems can help multinationals shield themselves against attacks, offering stronger capabilities to assess threats and automate company defenses, while improving the speed of post-breach responses. Yet, AI also lowers the barrier for attackers, giving bad actors without high-tech expertise the ability to launch sophisticated assaults. “AI is a double-edged sword,” says Peter L. Miller, president and chief executive officer of The Institutes, a not-for-profit in Malvern, Pennsylvania, that operates in the risk management and insurance area. “It is accelerating market innovation, but it’s also a force multiplier for cyberrisk at an unprecedented scale.”

Darren L. Pain, director of research at the Geneva Association, a Zurich-based think tank for the global insurance industry, adds that malicious actors can weaponize and poison AI models used by companies, which raises concerns about model accuracy and outcomes. Hackers can use AI tools to create convincing phishing emails, fake websites and even deepfake videos to inject malicious prompts or codes, he says. “This allows cybercriminals to craft personalized, realistic messages and methods that bypass traditional detection mechanisms,” Pain says.

That means managing AI risk has become a top issue for corporate boards. “Large organizations continue to purchase cyber coverage, focusing on catastrophic risk, as cyber is now increasingly viewed by their boards as an operational risk, on par with weather and political unrest,” says Bob Parisi, head of cyber solutions – North America, Munich Re Facultative & Corporate.

As a result, the cyber insurance market has grown to meet emerging AI risks, as well as the data breaches and IT outages that accompany the digitalization of business and society. According to the Geneva Association, global premiums for cyber insurance increased tenfold, to $15 billion, in the decade ending in 2023, up from $1.5 billion in 2013. Munich Re expects global gross cyber premiums to reach $16.3 billion by 2025, as premiums continue to grow and more companies adopt detailed coverage in the years to come. The German-based reinsurer expects average annual growth rates of 10% until 2030.

Although the use of cyber insurance is relatively stable among large multinationals, especially those domiciled in the United States, a 2024 survey of risk managers conducted by the risk brokerage firm Aon reveals a significant degree of underinsurance in cyber coverage. The results showed that less than 20% are carrying cyber coverage, compared to 60% with property insurance. “That’s despite cyber being assessed as having a higher probability and severity of loss than property,” says Rory Egan, head of cyber & analytics within the Global ReSpeciality business of Aon’s Reinsurance Solutions unit in London.

BlackLine Systems is an enterprise software company that develops cloud-based solutions for the finance function. Patrick Villanova took over as CFO in March after nearly 10 years at the Nasdaq-listed company. He was previously lead audit senior manager at PwC.

Global Finance: What has been the biggest challenge in your first six months as CFO?

Patrick Villanova: I had a long preparation at BlackLine, but nothing fully prepares you for being in the spotlight. The biggest shift has been delivering the message myself. I already had a solid handle on internal communication, and since taking over Financial Planning over a year ago, I understood budgeting and forecasting.

But starting [as CFO on] March 1, investor relations became a key focus: engaging with analysts, stakeholders, and the Board of Directors far more frequently. And, of course, I work much more closely with our CEOs [Therese Tucker and Owen Ryan]. I’ve always had a great relationship with them, but now we talk much more often. That’s been the biggest change in my role.

GF: How did you learn to tell BlackLine’s story?

Villanova: One of the hardest, but most critical, skills as CFO is storytelling: taking complex data and distilling it into a clear, impactful message. It’s a skill I’m constantly refining. I’ve been learning from seasoned CFOs, reading up on best practices, and even rethinking how I use tools like PowerPoint to make the message more digestible and meaningful.

GF: What is the most rewarding part of your role?

Villanova: I’ve always felt part of BlackLine’s success, but now I have my finger on the switch. Financial decisions ultimately stop with me, and that responsibility—leading a company with a bright future—is humbling and rewarding. There’s more pressure now: public speaking, making final calls, and being the one who others look to for direction. But with that pressure comes trust, and that trust is a privilege. I’m in this role because I’ve earned it, and I remind myself of that when the weight of the job sets in.

GF: How difficult is it to say no?

Villanova: It comes back to storytelling and messaging. I find myself saying no more often, but it’s important to explain why. People may not always agree, but understanding your perspective builds trust and brings them into your thought process: key aspects of leadership in this role.

GF: How is AI going to change your job?

Villanova: AI is a topic I’ve been passionate about long before stepping into this role; I see it as the third major technological shift in finance and accounting. First came the PC and Excel era in the 1980s. Then came cloud automation shortly after the turn of the century, which BlackLine helped pioneer. AI is the next leap, bringing deeper automation and less human intervention.

AI is already providing predictive financial insights and forecasts. It’s like adding a fifth person to the finance, planning, and analysis team who works faster and cheaper. In accounting, it’s still early-stage, handling simple, rule-based tasks like booking entries and performing reconciliations. But as it learns from more data and how accountants make decisions, its impact will grow.

Adoption will take time, especially in accounting, where accuracy must be absolute; 95% accurate is 100% wrong in our world. Once AI proves consistent and reliable, it will be exponentially more transformative than Excel once it proves itself as reliable in the industry.

GF: What do you suggest to someone who is seeking a CFO role?

Villanova: You’ll need more than just strong accounting and finance fundamentals and leadership skills; those are table stakes. The real differentiators will be data and AI expertise. As automation takes over traditional tasks like forecasting and modeling, the CFO role will demand a deep understanding of the underlying technology. In 10-15 years, the finance landscape will look completely different, and those who aren’t fluent in data and AI will struggle to keep up.

GF: What keeps you up at night?

Villanova: What keeps me up at night is disruption: the breakthrough I don’t see coming. I spend a lot of time studying AI, new technologies, and what smaller, agile companies are doing. I also worry about the skills we might lack when the next shift hits and always ask, What’s the next disruption, and are we ready for it?

September was a banner month for US investment-grade bond issuance as companies rushed to borrow in a market benefiting from falling interest rates and tight risk premiums.

PitchBook tallied $56.4 billion in new bonds through the first week of September, with the month’s total swelling to over $172 billion. The surge followed the Federal Reserve’s rate cut of 25 basis points at its Sept. 16-17 meeting. Lower borrowing costs make it cheaper for companies to fund acquisitions or shore up corporate coffers. On Sept. 18 alone, at least nine corporate issuers raised nearly $15 billion in bonds.

“That was a busy day,” says Nick Elfner, co-head of research at Boston-based fixed income manager Breckinridge Capital Advisors. The investment-grade bond market has repeatedly demonstrated its ability to meet corporate funding needs, he adds, particularly when conditions are relatively stable and investor demand runs strong.

Take AT&T, for example. The telecom launched a four-part note-offering totaling $5 billion, with proceeds earmarked for general corporate purposes including refinancing maturing debt and funding pending acquisitions. BNP Paribas, Bank of America, Citigroup, JPMorgan, and Mizuho served as arrangers.

The same week, another group of global banks including Deutsche Bank, Goldman Sachs, and HSBC led an $18 billion bond deal for Oracle Corp.

The flurry of deals marks a shift from the previously cautious landscape, where uncertainty around interest rates, inflation, and President Donald Trump’s intermittent tariff announcements had restrained bond issuance and widened credit spreads.

Yet, US issuers are not the only ones capitalizing on cheaper debt. Reuters pulled data from LSEG to show that issuance of “Maple bonds” by foreign borrowers reached $16.32 billion as of Sept. 25, surpassing last year’s $16.28 billion and outpacing all of 2024, which totaled $13 billion. More aggressive Bank of Canada policy, along with low yields and tight risk premiums in both the US and Canada, is creating a favorable environment for companies to invest and expand while investors remain eager to provide capital.

“We think strong corporate bond issuance can continue,” Elfner says. Lower borrowing costs will also allow for corporates to refinance debt and, perhaps, undertake projects that may have been mothballed due to higher financing costs.

Dimitar Radev, governor of the Bulgarian National Bank, sees new opportunities ahead, along with continued fiscal prudence.

Global Finance: Bulgaria is set to join the euro in January, a significant achievement for the country and the Bulgarian National Bank (BNB). What will be the biggest changes for the economy and for the average citizen?

Dimitar Radev: Euro area accession is indeed a strategic milestone for Bulgaria. It crowns years of consistent effort—macroeconomic convergence, institutional development, and responsible policymaking. For the economy, it means deeper financial integration, enhanced investor confidence, and greater resilience to external shocks. For the average citizen, the most immediate effects will be practical: elimination of exchange rate risk with our main trading partners, lower transaction costs and more transparent pricing. In short, membership opens new opportunities for sustainable growth and prosperity. However, I must emphasize that these benefits will fully materialize only if we continue the disciplined policies that have brought us to this point.

GF: Do you have any concerns about membership?

Radev: There are always risks, but they do not stem from the euro itself—they arise from how we manage our responsibilities within the euro area. The real risk lies in domestic complacency: the mistaken belief that euro membership can substitute for sound national policies. It cannot. On the contrary, participation in the euro area increases the need for fiscal discipline, structural reforms, and strong institutions.

GF: You have stated that Bulgaria will not follow Greece’s example and use lower interest rates to go on a spending spree. How can this be avoided if companies and individuals want to do so?

Radev: Bulgaria has a strong tradition of fiscal prudence, and our low debt-to-GDP ratio—among the lowest in the EU—is proof of that. In recent years, this discipline has been tested by political instability and global volatility, leading to some loosening of the fiscal stance that must now be addressed. It is important to note that pressure for higher spending rarely comes from households or businesses—it originates from political decisions. The temptation to use lower interest rates as a rationale for expansive fiscal policy is well known. That is why Bulgaria’s established institutional framework, anchored in fiscal rules and prudent oversight, is essential. I am confident that fiscal discipline will remain our guiding principle.

GF: Membership in the euro means the BNB loses one of its primary monetary weapons, bank reserve ratio requirements, which are currently set at 12% with no interest paid on these reserves. Is there an alternative you can use?

Radev: Yes, the institutional context will change. Reserve requirements will be harmonized with eurosystem rules, and the BNB will no longer determine them unilaterally. But it’s important to recall that, under our currency board arrangement—apart from reserve requirements—our ability to conduct active monetary policy has already been very limited. From this perspective, euro area accession is not a loss of autonomy, but a strategic upgrade. For the first time, we will have a voice in shaping the euro area’s monetary policy through participation in the ECB’s decision-making bodies. This is a substantial institutional gain. At the same time, the BNB retains full control over macroprudential policy, which remains a powerful and flexible tool. Our participation in the Single Supervisory Mechanism further enhances coordination and oversight. This transition is not about losing instruments—it is about modernizing and embedding them within a stronger and more integrated policy framework.

GF: One of the BNB’s most important tasks is and will remain bank regulation. What impact might euro membership have on Bulgaria’s banks?

Radev: Since 2020, Bulgaria has been part of the Banking Union through the close cooperation framework with the ECB, covering both the Single Supervisory Mechanism (SSM) and the Single Resolution Mechanism. Euro area membership will complete this integration. It brings higher standards of supervision, enhanced transparency, and greater consistency across the banking sector. Bulgarian banks are already subject to joint supervision under the SSM, and expectations—especially regarding capital strength and governance—will continue to rise. Some consolidation may follow, particularly among smaller or less competitive institutions. But this reflects broader market dynamics, not the euro itself. The BNB’s role remains unchanged: to safeguard financial stability, protect depositors, and promote the long-term soundness of the banking system. 

The Mexican and Canadian governments signed a milestone partnership agreement last month to promote and strengthen economic and security ties between the two nations.

Canada and Mexico are close economic partners aside from their place in the North American free-trade bloc; bilateral trade between the countries in 2024 totaled about $56 billion and Canada’s total foreign direct investment in Mexico in 2024 was around $46 billion. Canada was Mexico’s fifth largest trade partner and Mexico was Canada’s third largest as of the end of last year.

A key driver of the new accord is the status of the trilateral United States–Mexico–Canada Agreement (USMCA), which is up for renegotiation next year. US President Donald Trump is already questioning its key elements in light of his criticisms that Mexico and Canada are taking a soft approach to cross-border illegal activity in the region, from immigration to drug trafficking, and what he regards as their anti-competitive trade and investment measures. The new bilateral partnership agreement aims to secure the support of economic integration, while the USMCA’s future is less certain.

Canadian Prime Minister Mark Carney and Mexican President Claudia Sheinbaum highlighted several new potential areas of collaboration. The Canadian leadership is interested in more diverse and resilient supply chains via Mexico, while the Mexican government wants to increase bilateral trade through direct access to Canadian ports, making the country less dependent on existing US maritime channels. Together, they are exploring joint production to target the growing Latin American and Asian markets, taking advantage of the Trans-Pacific Partnership.

The new bilateral agreement also addresses key security components, such as enhancing security cooperation to combat synthetic opioid trafficking and social integration of migrant workers and related labor programs. Further meetings between Mexican and Canadian trade officials are expected in the coming months on a range of issues, from health to energy.

Meanwhile, public consultation has begun on the USMCA, which is scheduled for review next year. Public consultation is an integral part of the renewal process, enabling parties to better prepare for the upcoming negotiations. It also give the leadership on each side a better understanding of political trends and their views of key economic issues. 

BHP announced last month that Geraldine Slattery, president of its BHP Australia unit, will succeed Mike Henry as chief executive by mid-2026, making her the first female CEO in the mining and minerals giant’s 140-year history.

The implications extend well beyond that milestone.

Leadership changes in the global mining industry, an industry defined by scale, risk management, and geopolitical exposure, are often judged through the lens of operational continuity. Slattery’s appointment provides that stability. She has led BHP’s largest business unit, delivered productivity gains, and managed sensitive stakeholder relationships in Australia’s resource sector. Her elevation signals a board-driven commitment to maintaining execution strength while modernizing leadership composition.

From a governance perspective, however, BHP is setting a precedent.

For executives in resource-intensive and capital-heavy industries, Slattery’s taking the reins signals a new strategic view of succession. Embedding diversity in succession planning is becoming increasingly recognized as more than just a reputational play; it can strengthen the social license to operate, improve regulatory and community relationships, and enhance investor perception at a time when ESG considerations are influencing capital flows. Moreover, diverse leadership pipelines reduce concentration risk by broadening the talent base from which future strategies will be formulated.

Slattery will inherit complex challenges: demand volatility in commodities, scrutiny over decarbonization pathways, and rising geopolitical friction in critical mineral supply chains. Industry observers say that while her appointment as BHP’s first female CEO represents a milestone for gender diversity in mining, how she navigates a set of complex challenges will be closely watched as a test of whether inclusive leadership can deliver operational outperformance.

BHP’s move will not, on its own, transform the mining industry. However, for CEOs and CFOs across various sectors, it underscores a competitive reality: leadership diversity is now inextricably linked to corporate strategy, investor confidence, and the ability to adapt in a rapidly shifting global economy. 

Global Finance presents its 32nd annual list of the best banks worldwide.

If one word described the global economy in 2024, it would be “resilient.” Growth was up slightly, with global GDP growth hovering around 3.1%, while the pace of global inflation slowed to approximately 5.8% from 6.8% the previous year, according to the International Monetary Fund.

Although many thought a financial crisis was imminent, none materialized as businesses continued to focus on strengthening and diversifying their supply chains, implementing digitalization strategies, and responding to rising geopolitical tensions.

In this environment, French banking giant Societe Generale took numerous crowns, winning as Global Finance’s World’s Best Bank, World’s Best Frontier Market Bank, World’s Best Transaction Bank, and World’s Best Supply Chain Provider—Bank awards.

Throughout 2024, the financial group generated €4.2 billion in group net income (up 69% from the previous year) on €26.8 billion in revenue (up 6.7%) through its 26 million clients worldwide while streamlining its core businesses and divesting others.

The Return Of The M&A

The bright spot for 2024 was the return of M&A.

“On the surface, it may appear difficult to remain sanguine after anticipating a full market resurgence for several years,” wrote Jake Henry and Mieke Van Oostende, senior partners at McKinsey, in the firm’s 2025 annual M&A report. “But many of the dynamics that stymied dealmaking for the past three years, including some that limited 2024 global deal value and volume to roughly the average of the past 20 years, are receding.”

According to data from WTW’s Quarterly Deal Performance Monitor, 15 megadeals worth more than $10 billion each closed last year, a 36% increase from 2023, and there were 162 deals valued between $1 billion and $10 billion, for a 21% increase. The number of deals totaling between $100 million and $1 billion grew approximately 15% over the same period.

Although not the “full throttle comeback that many dealmakers hoped for in 2024, performance improved (in some regions, significantly),” the McKinsey report noted. “Global dealmaking was curbed by a variety of pressures and delivered moderate returns, with deal value up 12% to $3.4 trillion.”

The year’s M&A deals were not evenly distributed geographically, however, according to WTW. North America saw the most deals closed, with 361, up 14% from the previous year. Europe notched 155 deals, up 32% from 2023. In the Asia-Pacific region, companies concluded 163 deals, representing a 5% increase.

Overall, Global Finance’s Best Banks led the way in helping to grow the M&A pipeline.

Along with the World’s Best Bank award, global honors this year include recognition as Best Corporate Bank, Best Consumer Bank, Best Banks Worldwide in Emerging and Frontier Markets, and Best Sub-Custodian Bank. All are being announced here for the first time.

Previously announced honors include Best Global Transaction Bank, Best Bank for Sustainable Finance, Best Islamic Financial Institution, Best Investment Bank, Best Cash Management Bank, Best Trade and Finance Providers, Supply Chain Provider—Bank, Best Foreign Exchange Provider, Best Private Bank, and Best SME Bank.

Methodology

The editors of Global Finance, with input from industry analysts, corporate executives, and technology experts, selected the global winners of the World’s Best Banks 2025 using information provided by entrants as well as independent research based on objective and subjective factors.

Entries are not required, but experience has shown that the information supplied in an entry can increase the chances of success. In many cases, entrants present details that may not be readily available to the editors.

Judges considered performance from January 1 to December 31, 2024. Global Finance applies a proprietary algorithm to narrow the list of contenders and assign a numerical score, with 100 signifying perfection. The algorithm weights a range of criteria for relative importance, including knowledge of the sector, market conditions and customer needs, financial strength and safety, strategic relationships and governance, capital investment and innovation, scope of global coverage, size and experience of staff, risk management, range of products and services, and use of technology. The panel tends to favor private-sector banks over government-owned institutions.

The winners in each category are those banks and providers that best serve the specialized needs of corporations engaged in global business.

World’s Best Bank 2025

Societe Generale

In a year of economic uncertainty, persistent inflation and supply chain reorganization, Societe Generale stood head and shoulders above its global competition, earning the titles of World’s Best Bank and World’s Best Frontier Market Bank.

Its three core businesses—French Retail Banking; Global Banking and Investment Solutions; and Mobility, International Retail Banking, and Financial Solutions—generated €4.2 billion in group net income (up 69% from the previous year) on €26.8 billion in revenue (up 6.7%).

Throughout the year, Societe Generale combined strategic investments in cutting-edge technology, sustainability, and innovation with a drive to streamline core businesses while divesting non core areas.

The French banking giant has leveraged AI in approximately 420 use cases across its operations to enhance customer support via its Sobot chatbot and Elliot callbot, personalize advice for private banking clients using its Synoé platform, and numerous middle- and back-office operational, security, and risk management functions.

The bank surpassed its goal of contributing €300 billion to sustainable finance by 2025, a year ahead of schedule. It has since raised its target to €500 billion, comprising €400 billion in financing and advisory services and €100 billion in sustainable bonds, by 2030. Sustainable finance deals, including acting as the mandated lead arranger for a $1.2 billion green loan that enabled ReNew Power to develop a combined wind, solar, and battery storage infrastructure in its home market of India, have helped Societe Generale maintain a leading global role in this field.

Among the new offerings the bank debuted in 2024 were a joint venture with AllianceBernstein, dubbed Bernstein, which combines the two companies’ equity research, sales, and trading operations.

Societe Generale meanwhile strengthened its capital base by simplifying its business model, improving efficiency and increasing existing synergies through a series of strategic divestitures. It exited its private banking operations in the UK and Switzerland with the sales of SG Kleinwort Hambros and Societe Generale Private Banking Suisse and continued divestment of its African subsidiaries in Benin, the Democratic Republic of Congo, Madagascar, and Morocco.

Despite these changes, Societe Generale remains the leading player in frontier markets through its Global Transaction Banking network, which spans more than 50 countries and offers a range of integrated services including managing cross-border payments, liquidity, and trade finance. Leveraging its expertise in sustainability, the bank has partnered with the International Finance Corporation to accelerate financing of energy transition projects in developing markets through its Solar Pack initiative. 

World’s Best Corporate Bank 2025

BBVA

BBVA claims the title of World’s Best Corporate Bank for the third consecutive year, having expanding its market share and deal leadership during 2024. It led 86 deals across telecommunications, energy, infrastructure, consumer goods, and services for a total volume of €5.16 billion. Among these was the €6.6 billion underwriting of MasOrange, formed by the merger of the telecom companies Orange and MasMovil.

BBVA also reinforced its commitment to sustainable finance, leading the €383 million project financing of Repsol Renovables’ Gallo portfolio, a 777-megawatt solar and battery storage facility spanning Texas and New Mexico as well as the refinancing of the Monegros wind project in Aragón. Additionally, the bank directed €51.1 billion into sustainable financing throughout the year.

All told, BBVA’s Corporate & Investment Banking division earned some €5.8 billion in revenue in 2024, up 27% from the previous year, while increasing its net attributable profits by 30%.

Helping to fuel its growth has been the bank’s strategic investment in its infrastructure and technology partnerships. BBVA’s internal AI Factory has applied AI and machine learning to enhance customer experiences and streamline internal processes. 

World’s Best Consumer Bank 2025

State Bank of India

Continued investment in digitalization, a growing global footprint, and innovative offerings earned the State Bank of India (SBI) its first World’s Best Consumer Bank award. Building on a history that dates back to 1806, SBI continues to enhance a menu of digital offerings that serve 132 million internet banking and 287 million mobile banking clients.

SBI reimagined its You Only Need One (YONO) banking and lifestyle mobile app in 2024 with its midyear announcement of YONO 2.0. The latest version enables users to initiate transactions at an SBI branch and complete them on the app, and vice versa, and features a more modular architecture for faster processing and transaction speeds. Other innovations include the debut of a tap-and-pay function in its BHIM SBI personal banking app, which leverages India’s Unified Payment Interface, as well as an end-to-end digital loan application for the bank’s Surya Ghar Loan scheme for the installation of rooftop solar collectors.

Despite its stress on digitalization, SBI also invested in 600 new branches across India to improve accessibility for underserved rural and semi-urban areas: more than fourfold the number of branches it opened the previous fiscal year. 

World’s Best Emerging Markets Bank 2025

JPMorgan Chase

One of the largest financial institutions globally, JPMorgan Chase (JPMC), wins the World’s Best Bank for Emerging Markets award for its broad set of offerings, continued focus on serving emerging markets, and overall expertise.

Although many of its competitors are pulling out of emerging markets, JPMC is expanding into them. It plans to enter new African markets or deepen its existing presence there “every couple of years or so,” Chairman and CEO Jamie Dimon told Reuters last October. The bank set up a representative office in Kenya that month and new offices in Côte d’Ivoire later in the year.

JPMC had a strong 2024, raising more than $400 billion in emerging market debt, including on a rising number of debt-for-nature transactions that enable countries to repurchase existing debt on better terms and use the savings to benefit the environment. El Salvador utilized the structure to secure an approximately $1 billion loan from the bank, then used it to repurchase $1.03 billion in a tender offer. The savings were allocated to improve and protect the country’s Lempa River watershed.

Besides raising debt, JPMC’s advisory services were strengthened by the launch of a Center for Geopolitics, which provides expert analysis of geopolitical trends aimed at helping clients navigate the complexities of the global economy, manage risks, and identify new opportunities.

Emerging market clients also benefit from the bank’s global infrastructure and sizable investment in its technology platforms, JPMC says. Access to these cutting-edge systems gives clients a more efficient, secure, and convenient way to manage their finances and business operations. 

World’s Best Frontier Markets Bank 2025

Societe Generale

Frontier markets are playing an increasingly important role in the global economy, as they offer significant growth, albeit with smaller capitalization and higher volatility. Banks serving frontier markets must provide a comprehensive blend of corporate and commercial banking services that go beyond lending and deposits to more complex offerings, such as trade finance, securities servicing and sustainable finance. French banking giant Societe Generale is a leader across the board, with its broad range of offerings, and has beaten out its competitors to win this year’s World’s Best Frontier Market Bank award.

The bank, with over 160 years of experience, boasts a global network spanning more than 50 countries and offers highly integrated solutions for trade finance, cross-border payments, and liquidity management.

Through increased investment in artificial intelligence and other technologies, the bank has automated numerous processes and digitized others. In securities servicing, the company has leveraged generative AI, smart workflows, and robust data management to provide an enhanced client experience for its corporate and institutional clients, resulting in a doubling of client recommendation rates and increased participation in satisfaction surveys.

Meanwhile, Societe Generale has made great leaps in sustainable finance. The bank has committed 300 billion euros to sustainable finance by 2024 and introduced a new target of 500 billion euros by 2030, with a focus on decarbonization in sectors with the highest carbon-intensive emissions. To further strengthen its position, the bank also launched its Sustainable Global Transaction Banking Framework, which enables businesses to assess and monitor the environmental and social impacts of their working capital, trade, and liquidity management activities.

Societe Generale also signed a collaboration framework agreement with the World Bank’s International Finance Corporation to accelerate sustainable finance through investments in clean energy, water, and other infrastructure projects, as well as in agribusiness and women entrepreneurs. 

World’s Best Transaction Bank 2025

Societe Generale

Societe Generale excels at navigating the complexities of realtime payments, offering rigorous testing and dedicated IT support including client training. While clients expect similar functionalities for domestic and cross-border payments, Jean-François Mazure, head of Cash Clearing Services, notes that they struggle to differentiate. Converging both payment types, which hinges on interlinking financial market infrastructures, is critical, he argues.

Numerous market initiatives, including immediate cross-border payments (IXB) between the US and Europe, face significant hurdles, Mazure warns: “It is truly complex from a compliance and legal framework standpoint. So, for the moment, none of these initiatives has succeeded in scaling up.”

To interconnect real-time payment systems, he says, the most likely way forward is to adopt the “one leg out” (OLO) principle already in operation for transactions involving one bank inside the European Economic Area and one bank outside. But all parties will need to continue to align for interconnectivity to be achieved, he adds. OLO’s success hinges on compliance with ISO 20022 standards as well as resolving commercial and liability challenges across various schemes.

World’s Best Sub-custodian Bank 2025

CIBC Mellon

CIBC Mellon continues to refine its comprehensive asset-servicing business model, emphasizing innovation, process efficiency, and client service. Jointly owned by Bank of New York Mellon and Canadian Imperial Bank of Commerce, CIBC Mellon leverages CIBC’s local knowledge in the Canadian market combined with BNY’s technology and global custody infrastructure to serve institutional clients in Canada and globally. The combination has yielded consistent growth; assets under administration recently surpassed C$3 trillion ($2.2 trillion).

Ongoing priorities focus on broadening customer relationships and services through continual investment in IT and partnerships with the fintech sector, aimed at providing greater levels of core service automation along with enhanced transaction transparency and execution efficiency. This includes better straight-through processing for a seamless and secure transmission of client data, investment in pre- and post-trade communication services for trade matching and routing, and tracking of the settlement lifecycle.

Project Fuel, an enterprise-wide data and innovation initiative, is focused on transforming the client experience by equipping customers with tools to manage and analyze data more effectively, improving transparency and accelerating decision-making.

CIBC Mellon continues to enhance its online reporting platform, NEXEN, which integrates data and predictive analytics to provide clients with faster, real-time cash position and activity reporting through an improved user interface. Digital assets are expanding in the market; the bank is collaborating with stakeholders in Canada and globally and with BNY’s digital-asset unit to develop offerings in this area. This involves bolstering its data analytics capabilities and digital infrastructure through enhanced customization, automation, and service flexibility with a view to assisting clients to launch new offerings including alternative-asset ETFs and cryptocurrency funds. 

World’s Best Bank for Sustainable Finance 2025

DBS

DBS aims to green Asia’s economy by acting as an environmental-transition catalyst for anchor companies, mid-caps, and SMEs. The bank provides transition-related financing for these organizations at the corporate, project, and asset levels. Among its offerings are green, sustainability-linked, and social loans and bonds, along with carbon-market financing and other products.

Standout transactions in 2024 included a loan to LG Energy to construct a plant in Poland that manufactures batteries used in electric vehicles. A HK$3 billion (about $385.7 million) loan to the Hong Kong Housing Society will help create affordable residential projects. A S$300 million (about $224.2 million) bond will help Singaporean developer CapitaLand develop projects in alignment with green finance frameworks.

In addition, the bank develops analytical tools to track and analyze climate data and engages with industries—notably in the power, automotive, steel, shipping, and real estate sectors—and policymakers to chart paths to a healthier environment. 

World’s Best Islamic Financial Institution 2025

Kuwait Finance House

Kuwait Finance House (KFH) is recognized as the World’s Best Islamic Financial Institution for strengthening its franchise in multiple markets, for financing innovation, and for its overall operating performance. KFH provides services to customers in the Middle East, Europe, and Asia through extensive distribution channels, with an increasing emphasis on digitalization. The bank has subsidiaries in Kuwait, Turkey, Egypt, Bahrain, Iraq, Malaysia, the UK, and Germany.

KFH has made significant strides toward digital transformation in risk management, adopting the latest advancements in AI, machine learning, and advanced analytics to enhance risk measurement and monitoring. Tam Digital Bank, KFH’s digital bank in Kuwait, recorded strong customer numbers and transaction growth in 2024.

The bank’s financial profile is noticeably sound; a successful capital management program yielded a capital adequacy ratio (CAR) of 19.9%, considerably exceeding regulatory requirements and promising to support growth in the coming years. Return on average assets is good at 1.8% and loan asset-quality metrics are robust. KFH’s Islamic banking products and services cover commercial, retail, and corporate banking as well as real estate, trade finance, project finance, asset management, and investments.

World’s Best Investment Bank 2025

BofA Securities

Against the backdrop of thriving global stock markets and rising debt-finance activity, Bank of America (BofA) Securities’ global operations achieved an impressive 43% year-over-year jump in investment banking fees as of the fourth quarter of 2024.

The numbers were buoyed mainly by the bank’s three big areas of operations: North America, Latin America, and Europe, where the bank controlled a commanding 8.3%, 9%, and 4.4% of total investment banking fees, respectively. That boosted revenue for the full year to nearly $5.5 billion, according to Dealogic, representing around 6.2% of the global investment banking market.

BofA also scored big on M&A despite somewhat subdued activity in the field, serving as lead buy-side advisor on the $1.9 billion acquisition of Hawaiian Airlines by Alaska Air. The bank also acted as sole buy-side financial advisor on Keurig Dr Pepper’s $990 million acquisition of energy beverage company GHOST. 

World’s Best Bank for Cash Management 2025

Bank of America

Reflecting the demand for consistent global visibility and control, Bank of America saw the app version of its CashPro platform surpass $1 trillion in payment approvals in 2024. CashPro allows clients to manage treasury operations across multiple channels: online, app, APIs, and file-based interfaces.

“One thing that distinguishes CashPro is its global consistency,” says Tom Durkin, head of CashPro at BofA’s Global Payments Solutions, “so that when a company’s finance team has team members in different countries, they’ll all have access to the same tools, views, and processes. The advantages are obvious: better visibility and control and no additional financial outlays.”

Much of CashPro’s success is due to BofA’s close engagement with clients, Durkin notes, particularly those who participate in client board meetings.

“This dialogue is so important,” he says. “We do deep dives into our clients’ priorities and challenges, we present options for new functionality and discuss whether those innovations are going to solve their real-world issues.”

The bank’s strategic vision for CashPro “will always be to provide a best-in-class platform that is personalized, predictive, and proactive,” he adds. “One recent demonstration is how we’ve embedded CashPro into our clients’ own systems through the CashPro Network, a collaboration with third-party providers allowing quick, easy connection to the bank with little to no investment.” 

World’s Best Trade Finance Provider 2025

BNP Paribas

Offering global trade finance in 44 countries and more than 100 trade centers across more than 60 countries gives BNP Paribas a strong geographical foundation for its offering of seamless trade finance solutions across borders, supporting client growth throughout the entire trade cycle.

A broad range of traditional trade finance and working capital management solutions and substantial investment in technology, including web-based e-banking platforms like Connexis Guarantee, Connexis Trade, and Connexis Supply Chain, helps the French multinational support clients with complex international trade operations. Leveraging digital solutions, such as blockchain and AI, streamlines processes, improves efficiency, and enhances customer experience.

In 2022, BNP Paribas launched a program using AI to streamline the processing of trade finance documents and improve traceability for its clients. Since then, the bank has rolled the program out to 15 countries and processed 40,000 transactions.

“We have implemented AI technology to help classify, extract data, and automate controls. This is live today and being further expanded in terms of functionalities,” says Jean-François Denis, global head of Trade Solutions. “Bank guarantees also present the potential for AI usage, such as verifying guarantee clauses against acceptable clauses, policies, and guidelines. Anti-money laundering is yet another area where we have deployed AI.”

World’s Best Supply Chain Finance Provider – Bank 2025

Societe Generale

The French banking giant introduced a new workflow product in 2024 that includes external data and better analyzes clients’ working capital needs. The new offerings include peer comparison of key receivables and payables financing elements.

On the sustainability front, Societe Generale offers an ESG version of its full range of solutions, including green or social-focused factoring, forfaiting, and sustainability-linked supply chain financing (SCF). The bank also offers a dedicated and simplified solution for retail clients and SMEs based on their ESG rating.

Finally, establishing connectivity to CRX Markets, the marketplace for working capital finance, has improved support for SocGen’s largest clients, helping to grow the bank’s SCF programs. 

World’s Best Global Foreign Exchange Bank 2025

UBS

Upon completing its megamerger with Credit Suisse in May 2024, UBS leveraged its already best-in-class corporate banking, foreign exchange (FX), and product offerings for a record-breaking year. Not only did its global operation more than double analysts’ expectations in the third quarter of 2024, booking a massive $1.4 billion in net income, but it did so with a significant contribution from its corporate banking division, which saw revenue jump by more than 8% year over year.

Those numbers received a massive boost from UBS’s thriving FX operation, which averaged over $125 billion in daily electronic FX trades, with more than 2,500 active global clients. The bank posted substantial growth across several geographies and currency pairs. Among the highlights: solid profitability growth in Middle Eastern and Northern African currencies and a massive 40% market-share increase in Scandinavian currencies. In Asia, UBS’s continued efforts to improve its already top-tier suite of electronic FX capabilities paid off handsomely in China and Singapore, where it has doubled down on its data center improvement efforts.

On the technology front, UBS further expanded the limits of the global FX market, hosting the world’s first intraday FX swap in a regulated venue in July. The bank recently launched its blockchain-based multicurrency payment solution, UBS Digital Cash, processed through its flagship FX Engine Room, enhancing its overall FX offering. 

World’s Best Private Bank 2025

J.P. Morgan Private Bank

For the fifth consecutive year, J.P. Morgan US Private Bank has excelled at adapting to shifting macroeconomic conditions, delivering best-in-breed results to its clients. Riding the phenomenal rebound in global investing built on improving monetary conditions and subsiding inflationary pressures, the bank saw client assets rise by 24% over the previous year, totaling more than $2.5 trillion under supervision.

Against this backdrop, revenues increased 18.5%, with pretax income showing an even more significant 36% boost year on year.

On the product side, J.P. Morgan made significant strides at integrating advanced AI tools, including JPMorgan Chase’s Connect Coach and the Chase Connect mobile app, into its award-winning product portfolio. These include risk analytics and portfolio management services that serve as a benchmark for many in the industry. Alongside these product advances, the bank added over 300 expert advisors to its team, helping it attract more than 5,400 new clients.

World’s Best SME Bank 2025

BTG Pactual Empresas

BTG Pactual Empresas boasts an SME lending portfolio that reached R$22.1 billion (approximately $3.9 billion) in the first quarter of 2024, its SME credit book growing 52% year on year. SME business now accounts for 12% of BTG Pactual’s total portfolio.

The bank attributes its SME growth in part to its digital capabilities. Its digital platform offers an integrated portfolio of SME products and services, providing access to the bank’s credit, guarantee, insurance, investments, foreign exchange, and derivatives products. Associated services accessible via the platform include creation of invoices payable by QR code; online invoicing; instant electronic bank transfers; open banking; payments to suppliers, tax authorities, and utilities; budgeting and categorized spending services; and digital receipts. The platform offers more than 45 integrations, including Telegram and Google Workspace, along with a extensive range of productivity improvement products.

Speed is a crucial benefit. The platform enables BTG to disburse 95% of its loan funds in less than 10 minutes, the bank says, 16 times faster than its competitors.

Agriculture is a big part of the Brazilian economy, and BTG offers services tailored to the sector including credit lines for agricultural products (fertilizers, pesticides, seeds); equipment financing; and infrastructure financing for the construction of silos, warehouses, and other facilities.

Activities addressing ESG issues are also important to BTG. Of its loans to corporations and SMEs, 72% are subject to social, environmental, and climate-risk analysis, in line with international best practices. R$8.9 billion of its lending portfolio aligns with the bank’s sustainable financing framework.