MONEY

Smaller enterprises look to boost value-added per worker. Global Finance names the winners of its third annual World’s Best SME Banks.

When it comes to productivity, bigger is usually better. Small and midsize enterprises (SMEs) and micro, small, and midsize enterprises (MSMEs) face a significant gap in value-added per worker compared to their larger peers.

Small-business productivity is half that of larger firms, according to a 2024 study by the McKinsey Global Institute (MGI). In emerging markets, the average is 29%, or a 71% gap. Kenya has the widest gap of the 16 emerging economies studied, at 94%, while Brazil has the narrowest, at 46%. In advanced economies, the average productivity gap is 40%, with Poland showing a 50% gap and the UK 16%.

These differences in value-added represent serious money left on the table, considering that MSMEs represent 90% of businesses globally: approximately half of the private-sector value-added and nearly two-thirds of business employment. According to MGI, the actual productivity ratio versus the top quartile level averages 5% and 10% of GDP for advanced and emerging economies, respectively.

“It ranges from 2% in Israel and the UK, to 10% in Japan among advanced economies, and from 3% in Brazil to 15% in Indonesia and Kenya among the emerging economies,” the authors reported. “On a per business worker basis, the amount is meaningful, ranging from about $3,000 in Israel to $12,900 in Japan among advanced economies and from $3,200 in Mexico to $8,800 in Indonesia among emerging economies (all in purchasing power parity terms).”

Lack of access to finance drives much, but not all, of the productivity gap. A World Bank study estimates that MSMEs face $5.2 trillion in unmet finance needs, or 50% more than the current lending market for such businesses.

Narrowing the gap

When MSMEs seek help to improve productivity, they can turn to governments, business partners, and financial institutions, each providing unique offerings.

Governments can assist with public financing programs and fund core infrastructure development, but poor management and oversight have often blunted their success.

“For decades, governments in emerging market and developing economies have implemented programs to improve SME access to finance, often at a large budget cost. Yet, the SME financing gap remains large, especially in the least developed countries, and public budgets are tight,”

Jean Pesme, global director of the World Bank’s Finance, Competitiveness, and Innovation Global Practice

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He suggests governments adopt “a more evidence-driven approach for the design and implementation of support to ensure it reaches the SMEs facing the most critical financial constraints.”

On the other hand, the productivity gap can be bridged in part by creating an economic fabric in which larger and smaller companies work together, argues Olivia White, a senior partner at McKinsey and director of MGI. “That, in fact, boosts productivity both of the smaller firms and the larger ones,” she says.

The MGI study cited DuPont leveraging a banking relationship to secure working capital credit for its MSME suppliers in rural areas, strengthening its supply chain and increasing sales.

But not all help needs to be financial. The MGI report cites automotive MSMEs, which have “gained operational proficiency through systematic interactions with productive original equipment manufacturers, and small software developers [that] have benefited from talent and capital ecosystems seeded by larger companies.”

Financial institutions have historically been a two-edged sword for MSMEs, but that is changing. Banks fund MSMEs, but since the latter have less capital and security than larger players, they face more rigid credit-scoring models that slow account opening and lending.

Banks have adopted innovative underwriting approaches, however, that incorporate additional alternative credit data to deliver affordable credit. MSMEs have responded positively to these new offerings. An Experian survey found that 70% of small businesses are willing to furnish such data if it means a better chance to obtain credit or reduce their borrowing rate. Banks are also investigating how they might act as matchmakers between their MSME and larger clients.

“Financial institutions often own the most important connective links between smaller and larger firms, the payment rails,” says MGI’s White. “One of the major ways that small and large firms interact is one does something for the other, and there needs to be a payment. By maintaining those rails, banks make it easier for the smaller and larger firms to interact.”

Nevertheless, it is early days for providing such services, she adds. More financial institutions are talking about being matchmakers, and many are experimenting with platform mechanisms that could facilitate client-to-client connections. But there is more development work to be done before these platforms can scale. “I suspect it’s just going to depend a lot on the market and who sees that business opportunity,” says White.

Methodology

With input from industry analysts, corporate executives, and technology experts, the editors of Global Finance selected the World’s Best SME Banks 2025 winners based on objective and subjective factors. The editors consulted entries submitted by the banks as well as the results of independent research. Entries were not required.

Judges considered performance from April 1, 2024, to March 31, 2025. Global Finance then applied a proprietary algorithm to shorten the list of contenders and arrive at a numerical score of up to 100. The algorithm weights a range of criteria for relative importance, including knowledge of SME markets and their needs, breadth of products and services, market standing and innovation.

Once the judges narrowed the field, they applied the final criteria, including scope of global, regional, and local coverage, size and experience of staff, customer service, risk management, range of products and services, execution skills, and use of technology. In the case of a tie, the judges assign somewhat greater weight to local providers rather than global institutions. The panel also tends to favor private-sector banks over government-owned institutions. The winners are those banks and providers that best serve SMEs’ specialized needs.

The 2026 SME Bank Winners

Small and midsize enterprises (SMEs) across Africa are driving innovation and inclusion despite persistent financing and productivity challenges.

Regional Winner | FNB

First National Bank (FNB) takes pride in being the largest bank for small and midsize enterprises (SMEs) in South Africa. The bank’s dominance in the field is rooted in a culture of walking with SMEs along their growth journey.

Last year, FNB’s loan book totaled $6.7 billion, with advances to SMEs accounting for approximately a third. With a formidable 1.3 million SME clients and 34% overall market share, FNB commands strong leadership in most aspects.

Cases in point are asset finance and revolving credit facility arrangements: The bank commands 51% and 42% market share in these, respectively. Growth in the commercial segment, which encompasses SMEs, remains steady, expanding by 6% year-overyear through June 2025.

FNB views its market dominance as a reflection of the real impact it has on SMEs, driven by innovation, digitalization, and a deep understanding of its customers. This is exemplified by some of its solutions, such as grant funding for catalytic projects and patient growth capital, which emphasizes sustained growth over short-term profits with flexible repayment terms.

The bank also prioritizes inclusive finance for Black-owned SMEs, a market that continues to struggle to access finance. For this segment, FNB goes even further to provide both equity and debt funding through its Vumela Enterprise Development Fund, which currently manages $38.9 million in assets.

By addressing structural barriers and enabling scalable growth, FNB ensures that SMEs continue to thrive. The ripple effect is inclusive economic transformation and job creation.

FNB is determined to replicate its home-market success across seven other African countries where it has a presence. Plans are also underway to expand the footprint into new markets, such as Ghana and Kenya.

Gabriel Motomura, partner and co-head of BTG Pactual Empresas, and Rogério Stallone, BTG Pactual corporate credit partner and co-head of BTG Empresas, discuss democratizing offerings.

Global Finance: As our Best Global Bank for SMEs, how have you been helping your small and mid-sized enterprise clients navigate this year’s on-again, off-again tariff environment?

Gabriel Motomura: We’ve been addressing this in two main ways. First, by helping our clients manage FX volatility. BTG offers SMEs in Brazil access to foreign exchange in more than 16 currencies through a fully digital platform—something previously out of reach for most small and mid-sized businesses. Second, since a large share of our SME clients are exporters, we provide them with a wide range of trade finance solutions to support their operations and improve liquidity.

Rogério Stallone: Our mission is to narrow the gap between large corporations and small businesses—to reduce what we call “corporate inequality.” We’re doing this by giving SMEs access to the same level of sophistication, tools, and financial solutions that big companies enjoy. Every day, we work to develop new products and services that empower smaller businesses to compete on equal footing and grow sustainably.

Motomura: BTG has taken a different route from traditional banks. Most large banks began with retail operations and only later developed wholesale or investment services. We started from the opposite end—as an investment bank and trading house serving major corporations used to the highest service standards. Our goal today is to deliver that same quality, expertise, and range of products to SMEs. Whenever a small business uses one of our solutions, it’s the same product, with the same excellence, that a large corporate client would receive.

Global Finance: How are you addressing competition from fintechs and private equity firms that are entering the credit market?

Stallone: BTG’s competitive edge lies in combining the best of both worlds: the agility and innovation of a fintech with the strength and scale of a leading financial institution. We can move fast, launch new products quickly, and offer an excellent user experience—all backed by a robust balance sheet that allows us to provide credit efficiently and at competitive rates. Fintechs typically lack this structure and capital base, which limits their ability to lend sustainably.

Motomura: The fintech lending boom in Brazil slowed down significantly as interest rates rose, and we’ve seen many of these players reduce their exposure to credit. That created space for BTG to step in and expand our offering. We began as a supply chain finance provider and have since evolved to offer credit cards, overdraft facilities, and standard banking products—all fully digital. Our journey is to become a 100% digital, full-service bank for SMEs, and we’re the only institution in Brazil pursuing that model with the scale and reliability of a major financial group.

GF: How has 2025 prepared BTG for 2026?

Motomura: This year has been transformative for our SME business. We’ve more than doubled our client base, supported by significant improvements in digital onboarding and marketing. Our focus on digital distribution has made our products and services accessible to companies across Brazil. While we initially served SMEs that were suppliers to large corporations, by the end of 2024 and throughout 2025 we successfully expanded to reach the entire SME spectrum—from micro-businesses to mid-sized enterprises.

Warner Bros Discovery, the media conglomerate behind HBO, CNN, and the Warner Bros film studio, is exploring a sale—just three years after WarnerMedia and Discovery combined to form the unified giant.

The discussions follow an earlier announcement in June this year, when the company’s board said it was considering unwinding the 2022 merger by splitting the business back into separate entities.

However, following that announcement, “unsolicited interest from multiple parties for both the entire company and Warner Bros” prompted company brass to consider an outright sale or a de-merger. In other words, sell Discovery and merge Warner Bros. with another company, yet to be decided, the company said in a statement.

Warner Bros Discovery has amassed significant debt since the 2022 merger, driven mainly by operational challenges and high interest costs tied to the original deal. This combination of factors brought the company’s total debt load close to the equivalent of its market capitalization of around $40 billion before the merger chatter started circulating.

On the other side of the equation, the US media industry has been consolidating rapidly, pressured by the expansion of streaming and the steady erosion of traditional pay-TV audiences and advertising revenue.

This environment has proven a fertile ground for bidders, who have been swarming Warner Bros Discovery since June.

Amongst the interested parties, Paramount-Skydance, led by David Ellison—the son of multi-billionaire entrepreneur Larry Ellison, the CEO of Oracle—is the most active.

Warner Bros Discovery’s rejected Ellison’s $60 billion offer earlier in October and is said to be mulling a new, even higher offer. In addition to the funding, primarily supported by Larry’s nearly $300 billion fortune, the bid is also said to have the backing of US President Donald Trump, which could help the deal navigate potential antitrust issues.

“Larry Ellison is great and his son David is great,” Trump told reporters on Oct. 12. “They’re friends of mine. They’re big supporters of mine.” However, the stakes have recently gotten higher with streaming giant Netflix and cable behemoth Comcast reportedly joining the race, albeit without making a formal offer as of this report.

Coca-Cola Hellenic Bottling Company plans to acquire a 75% controlling stake in Coca-Cola Beverages Africa (CCBA) for $2.6 billion from The Coca-Cola Company and Gutsche Family Investments. The transaction is expected to close in early 2026, pending regulatory approvals.

The acquisition would give the Steinhausen, Switzerland-based Coca-Cola HBC control of 36-40 bottling plants, 17,000 employees, and a network serving over 800,000 retail outlets across 14 sub-Saharan African countries. CCBA currently accounts for about 40% of Coca-Cola’s total beverage volume in Africa.

“This transaction represents a strategic acceleration of our growth agenda,” says Zoran Bogdanovic, CEO of Coca-Cola HBC. “Africa is one of the most dynamic consumer markets in the world. By integrating CCBA’s scale and local expertise, we can unlock the full potential of the Coca-Cola system across the continent.”

To cement its regional presence, Coca-Cola HBC—already listed on the London Stock Exchange—plans a secondary listing on the Johannesburg Stock Exchange. This would give African investors access to one of the world’s largest bottlers while reinforcing longterm confidence in African capital markets.

The deal, however, requires clearance from several regulatory bodies: The Competition Commission of South Africa (CCSA); the Common Market for Eastern and Southern Africa (COMESA) Competition Commission; and national agencies such as the Kenya Competition Authority and the Ethiopian Trade Competition and Consumer Protection Authority.

According to Euromonitor International, Coca-Cola holds about 29.5% of the carbonated soft drinks market in the Middle East and Africa. PepsiCo controls roughly 23.2%. With Africa’s population projected by the UN to hit 2.5 billion by 2050, the stakes are rising. “Africa is no longer an emerging story—it’s the main stage,” said Caroline Wanga, an Africa-based market analyst. “Coca-Cola HBC’s expansion cements its bet that the future of the global beverage market will be shaped in African cities.” 

How has private credit grown in importance since the Great Financial Crisis? What is the current market size in the US and other regions?

The global private credit industry, mainly providing loans to corporate borrowers through closed-end credit funds sponsored by the same firms that back private equity vehicles, has grown dramatically since the 2008 financial crisis, reaching $2.8 trillion in assets under management (AUM) at the latest count. This is a sharp increase from $200 billion in the early 2000s, according to the Basel, Switzerland-based Bank for International Settlements (BIS).

The appeal of private credit to corporate borrowers is evident: Middle-market firms, especially those supported by private equity sponsors, favor private credit for its speed, flexibility, confidentiality, and fewer disclosure requirements compared to public bond markets available through broadly syndicated loans. This appeal is also beginning to attract larger, more creditworthy companies.

The industry has filled a void left by traditional banks, at least in the U.S. An analysis by global consultancy Deloitte of U.S. Federal Reserve data shows bank lending decreased from 44% of all U.S. corporate borrowing in 2020 to 35% in 2023. 

The trend is clear in leveraged buyouts. Historically, banks have dominated Leveraged Buyouts (LBOs) financing. However, since 2020, private credit funds have financed more LBOs than the syndicated loan market, according to the PE industry publication, PitchBook. 

The private credit market has also changed a lot. Originally focused on special situations and distressed debt, private credit is now a dominant source of direct, cash-flow-based loans that fund managers say traditional banks would not typically approve. Besides special situations, distressed debt, and the former, senior form of “direct lending”—which includes commercial loans used by companies for working capital or growth funding—private credit also includes subordinated forms like mezzanine and venture debt, which have equity features; asset-based real estate and infrastructure financings; or some mix of these. These loans are usually held until they mature, involve customized covenants, and feature a close lender-borrower relationship, setting them apart from the syndicated loan market.

However, direct lending to corporates now dominates the market. According to PitchBook, fundraising for private credit peaked in 2021 at a total of $293 billion in new commitments. For that year, direct lending accounted for $144 billion of capital newly committed to credit funds, or about 49%. From 2009 to 2023, direct lending captured an average share of 26.5% of total fundraising, or roughly $47.5 billion in new capital each year. Fitch Ratings estimates that direct lending now makes up about half of all loans outstanding by credit funds.

Globally, the BIS estimates that total outstanding private credit loan volumes have increased from around $100 billion in 2010 to over $1.2 trillion today, with more than 87% of the total originated in the U.S. Europe (excluding the United Kingdom) accounts for about 6% of the total in recent years, and the U.K. for about 3% to 4%, with Canada making up most of the rest. The Asian market is small but growing.

What is the current state or regulation of the sector worldwide? Why are bank regulators worried about banks’ increasing involvement in private credit?

As connections between regulated banks and lightly regulated private credit funds grow, regulators become increasingly worried about the potential risks these links might pose to the global financial system. However, the International Monetary Fund warned regulators in April 2024 that private credit presents risks that they might not fully understand. While banks are carefully monitored by regulatory agencies worldwide, credit funds are subject to much less scrutiny, and their activities remain largely hidden from banks overseers.

As a result, the IMF urges authorities to adopt a more proactive supervisory and regulatory approach to this rapidly growing, interconnected asset class. Although its report notes that regulation and supervision of private funds were significantly strengthened after the global financial crisis, the IMF stated that the rapid growth and structural shift toward private credit require countries to conduct a further comprehensive review of regulatory requirements and supervisory practices, especially as the private credit market or exposures to private credit become substantial.

The IMF report noted that several jurisdictions have already taken steps to improve their regulatory frameworks to better address potential systemic risks and investor protection challenges. Specifically, the report highlighted that the US Securities and Exchange Commission is making significant efforts to strengthen regulatory requirements for private funds, including improving their reporting standards. 

The IMF also noted in its report that the European Union has recently amended the Alternative Investment Fund Managers Directive (AIFMD II) to include improved reporting, risk management, and liquidity risk management. It also states that AIFMD II has specific additional requirements for managers of loan origination funds concerning leverage limits (175% for open-end and 300% for closed-end funds) and design preferences, such as favoring closed-end structures and imposing extra requirements on open-end funds. 

The fund further noted that regulatory authorities in other countries, including China, India, and the United Kingdom, have also strengthened the regulation and oversight of private funds. With the overall growth of the private funds sector, the IMF noted, supervisors have intensified their scrutiny of various aspects of private funds, particularly conflicts of interest, conduct, valuation, and disclosures. The Bank of England (BoE) has, for its part, instructed banks to strengthen their risk management practices regarding private credit. In a letter to certain institutions, the BoE’s Prudential Regulation Authority stated that its review of their practices had “identified a number of thematic gaps in banks’ overarching risk management frameworks that control their aggregate PE sector-related exposures.”

To address data gaps and enable accurate, comprehensive, and timely monitoring of emerging risks, the IMF recommended that relevant authorities improve their reporting requirements and supervisory cooperation on both cross-sectoral and cross-border levels. “Although the private nature of private credit remains crucial to market functioning,” the IMF report said, “regulators need access to appropriate data to understand potential vulnerabilities and spillovers to other asset classes or systemic institutions.” 

As the IMF put it, “there are cross-border and cross-sectoral risks. Relevant regulators and supervisors should coordinate to address data gaps and enhance their reporting requirements to monitor emerging risks.”

Despite its broad adoption, AI raises questions amongst the coding community.

Artificial intelligence has gone from a novelty to widespread adoption among software developers, with 90% of developers using the technology in their workflows, up 14% from a year earlier, according to a study by Google Cloud’s DevOps Research and Assessment (DORA) team. However, the same study finds a trust gap with the technology.

“While 24% of respondents report a ‘great deal’ (4%) or ‘a lot’ (20%) of trust in AI, 30% trust it ‘a little’ (23%) or ‘not at all’ (7%),” wrote Ryan Salva, senior director, product management at Google, in a DORA blog post. “This indicates that AI outputs are perceived as useful and valuable by many of this year’s survey respondents, despite a lack of complete trust in them.”

Such adoption findings do not come as a surprise to Matt Kropp, managing director and senior partner at the Boston Consulting Group.

“AI is already in the flow of work for many developers and inside the integrated development environment (IDE) for code suggestions, in code search, test generation, documentation, and even basic refactoring,” he says. “That said, adoption is still ‘wide but shallow.’”

Still, more than 80% of the DORA study’s 5,000 respondents also noted that AI has enhanced their productivity, and 59% report a positive impact on code quality.

Global banking giant Citi has seen dramatic productivity gains enabled by the technology in the past few years. According to Citi chair and CEO Jane Fraser, AI-driven automated code reviews have exceeded 1 million in 2025. “This innovation alone saves considerable time and creates around 100,000 hours of weekly capacity as a very meaningful productivity uplift,” she said during the bank’s third-quarter earnings call.

AI has taken much of the toil out of developing and implementing code, but it still has much more potential to address additional tasks. “There’s still headroom in areas like structured refactoring, better test coverage, and smoother migrations. AI is strongest on new code paths,” says Kropp. “It’s less reliable on legacy systems without context. Guardrails—secure patterns, repo rules, and review discipline—are what turn the remaining ‘easy wins’ into real gains.”

When Google announced its $15 billion investment in India on October 14—the company’s largest commitment to the subcontinent to date—it pointed to more than just a corporate expansion.

It marked a turning point in the global AI race, showing that emerging markets are no longer just using technology—they’re helping to shape its future.

The cornerstone of this investment is an artificial intelligence hub in the port city of Visakhapatnam. Over five years, Google announced it will construct a gigawatt-scale data center campus, set up an international subsea cable gateway, and develop clean-energy infrastructure—rolling out what the company calls its “full AI stack.”

India’s digital transformation has accelerated over the past decade, driven by government programs like Digital India and anchored by infrastructure including Aadhaar, the planet’s largest digital identity system, and Unified Payments Interface.

Google’s investment “really fits into that broader strategy of getting onto the digital bandwagon,” says Sameer Patil, director of the Centre for Security, Strategy and Technology at the Observer Research Foundation in Mumbai.

India now ranks eighth among 125 countries for digital evolution momentum, according to a 2025 study from Tufts University. Its index evaluates country progress on multiple indicators including technology and AI adoption between 2008 and 2023.

Google framed its investment as providing economic benefit for both India and the US. The company expects the AI hub to create $15 billion in US GDP through increased cloud adoption.

Significant challenges remain between the promised benefits of the Visakhapatnam AI hub and the reality of constructing such a campus. Patil identifies regulatory complexity, environmental concerns, infrastructure constraints around power and water supply, and perhaps most critically, the shortage of skilled professionals needed to operationalize Google’s ambitions. India’s tech sector also faces a capacity crunch. “It is a challenge, not just for AI, but generally for the larger tech sector. As it expands in India, you’re also facing a shortage of skilled professionals,” says Patil.

Arguably what is most important about this investment is how it positions India. With the country set to host the India-AI Impact Summit in early 2026, the Visakhapatnam hub offers fresh proof of its AI credentials—and signals that India isn’t just supporting the AI future but helping to direct it.

A decade after the landmark Paris Agreement, renewable energy has surpassed coal to become the world’s leading source of electricity.

According to the climate think tank Ember, which draws on data from 88 countries representing 93% of global energy consumption, solar and wind growth outpaced rising electricity demand for the first time on record.

Solar expansion in particular drove the surge in renewables. Over the past 50 years, the cost of solar has dropped by 99.9%, allowing countries with costly or unreliable grid electricity to develop large-scale solar projects within a single year. In the first half of 2025, solar output rose nearly a third compared with the same period last year, meeting 83% of the increase in electricity demand. Overall, renewables (including hydro, bioenergy, and others) accounted for 34.3% of global electricity generation, while coal—which remains the world’s largest individual source of energy—fell to 33.1%.

Ember’s findings came with a clear message for the West, too: it was developing countries like China and India that were primarily responsible for the surge in renewables. China, especially, emerged as the clear frontrunner: clean generation outpaced its 4.2% demand growth, leading to a 2% drop in its use of fossil fuels. India, although it experienced slower electricity demand growth of just 1.3%, also added significant solar and wind capacity, leading to a 3.6% decline in fossil fuel use.

In contrast, the US and the EU saw their fossil fuel generation rise. In the US, clean sources did not keep pace with robust demand growth. Exacerbated by a gas-to-coal switch driven by higher gas prices, fossil fuels filled this gap, increasing emissions by 4.3%. Similarly, in the EU, despite strong solar growth, poor wind conditions led to significant shortfalls in wind output, and severe droughts also contributed to a decline in hydropower production. The bloc compensated by increasing gas and coal generation, leading to a 4.8% climb. The divide is expected to widen, particularly in the US, where clean energy subsidies were rolled back. Meanwhile, solar and wind, Embers notes, keep driving modernization and growth in both low-income countries and some of the world’s most powerful emerging economies.

On October 10, President Donald Trump unveiled plans for a 100% tariff on Chinese imports and new export controls on software. But just weeks later, talks between top US and Chinese officials shifted the narrative again, offering a glimpse of a potential deal that could avert deeper conflict—at least for now.

US Treasury Secretary Scott Bessent said on October 26 that negotiators had forged a trade framework that could forestall the 100% tariff increase. The framework could also delay China’s rare earths export restrictions for a year while it reconsiders its policy. The talks occurred against the backdrop of the Asia-Pacific Economic Cooperation summit, an event at which Trump and Chinese President Xi Jinping were scheduled to meet at press time.

Vina Nadjibulla, vice president for research and strategy at the Asia Pacific Foundation of Canada, pointed out that the US tariffs were being framed in China as the chief culprit for its economic slowdown—but she noted the country’s troubles go beyond tariff wars.

Apple, once synonymous with innovation, finds itself at a pivotal moment. Amid mounting pressure to solidify its artificial intelligence strategy and calls for CEO Tim Cook’s replacement, attention is increasingly turning to John Ternus, Apple’s SVP Hardware Engineering.

Widely cited by insiders as the leading internal contender to succeed Cook, Ternus represents a product-focused executive well-regarded within the company. His increased public visibility, orchestrated by Apple’s PR teams, further fuels speculation about his future role. This speculation is underscored by a strategic shift in April, when Apple’s secret robotics unit was moved from the oversight of AI chief John Giannandrea to the hardware division led by Ternus, suggesting a focus on integrating AI more deeply into Apple’s devices.

Wall Street analysts and former executives are increasingly vocal, offering both critical assessments and strategic advice as the company navigates a complex financial landscape. Leading the charge of critics are Walter Piecyk and Joe Galone of LightShed Partners. They argue that Apple’s recent AI struggles necessitate a “product-focused CEO, not one centered on logistics,” and have explicitly called for Tim Cook’s replacement. Their perspective underscores a growing concern about the company’s innovation pipeline in the fiercely competitive AI arena. While Apple’s reputation was built on groundbreaking products like the iPod and iPhone that reshaped entire industries, recent failures include Apple Vision Pro and iPhone Air.

Apple’s voice assistant, Siri meanwhile, has been widely criticized as severely outdated compared to competitors. The major generative AI overhaul, Apple Intelligence, has been repeatedly delayed, with a full release for its key features pushed back until at least 2026.

Dan Ives of Wedbush Securities, while generally bullish on Apple, warns that the company must act swiftly to avoid a “BlackBerry Moment” in AI. Adding historical weight to the debate, former Apple CEO John Sculley has also weighed in, urging a pivot to “agentic AI” and hinting at Cook’s nearing retirement. Whether hardware-driven AI innovation is the answer to Apple’s lag in AI software innovation remains to be seen.

Elyes Jebir, CEO of Banque Internationale Arabe De Tunisie (BIAT), speaks with Global Finance about growth and innovation at Tunisia’s largest private bank. Jebir discusses resilience, innovation and new cross-border opportunities as Tunisia’s economy steadies.

Global Finance: How is the Tunisian banking sector performing, and what is your outlook for the future?

Elyes Jebir: Despite an international context still marked by the Covid-19 pandemic, the war in Ukraine, and recent developments in the Middle East, results for 2023, 2024, and the first half of 2025 demonstrate the resilience of Tunisian banks. On the domestic front, Tunisia has recently enacted new legislation, most notably around the use of cheques, that should encourage the adoption of instant payments, transfers, and digital solutions.

Growth isn’t very high, and lending activity remains weak. Given that 60%-70% of Tunisian banks’ net banking income derives from intermediation margins, muted credit growth has a systemic impact. Nevertheless, banks have delivered strong results, and we have even seen upgrades in their ratings by agencies.

GF: So, the outlook is generally positive?

Jebir: Yes, I believe we can expect progress in Tunisia’s next reviews, which would have a positive knock-on effect for banks’ ratings. This would enable us to expand further internationally without being constrained. It is important to stress that we are not operating in a closed environment. We are highly outward-looking. We are also convinced that investment in digitalization will significantly benefit both banks and clients, enabling us to conduct our business in fundamentally new ways.

GF: Which banking products offer the greatest growth potential in Tunisia?

Jebir: Innovation is at the heart of our strategy for the coming years. We are developing a wide range of digital solutions for both retail and corporate clients. At the same time, we are reshaping our branch network to transform our outlets into advisory and expertise centers, providing added value beyond the traditional services of a bank.

In terms of lending, new opportunities are emerging with the green economy. Tunisia has a national program supporting renewable energy, which offers significant investment potential. Beyond financial returns, we firmly believe this transition is essential. There is also momentum around the blue economy, linked to the sea, where many opportunities remain untapped.

Another major challenge lies in new environmental standards. Many Tunisian SMEs work with European partners and, in order to continue exporting—and, indeed to survive—they must invest in reducing their carbon footprint. A regulatory timeline has already been set; it starts in 2026, and banks will play a critical role in supporting this shift. At BIAT, we have identified clients facing this challenge and are helping them adapt so they can remain competitive within the export community.

On the retail side, the Tunisian diaspora represents a particularly dynamic market. The demographic has changed significantly in recent years: today it consists largely of qualified professionals and executives based in the Gulf, Europe, or Canada. While many intend to return one day, in the meantime, they send considerable remittances to their families in Tunisia. These transfers grow in volume every year, making this a highly attractive segment. Through the digitalization of our services, we are striving to make transfers faster and more cost-effective, while also responding to other needs of the diaspora. For instance, many are interested in acquiring property in Tunisia, so we organize events with developers at the bank to create a space for dialogue around such projects.

GF: Do you have plans for international expansion?

Jebir: We currently operate a subsidiary in Paris, which facilitates transfers of remittances. We also maintain a representative office in Tripoli, Libya, to support bilateral trade. Many Tunisian SMEs export to Libya and vice versa, and this sector holds strong growth potential.

As for further expansion, we are actively evaluating opportunities—it could be in other French cities or major Gulf capitals where Tunisians have high purchasing power, though the format of such ventures is still under consideration.