Reality. David indonesia is home to haslinda indonesia is home to an ecommerce revolution and plan to forge a path to asean the next generation. Haslinda hello, welcome to the capital of indonesia, a country of 270 Million People at the very forefront of asean. Its economy accounts for more than one third of the gross gdp and it is on track to become the worlds fourthlargest economy by 2050. Less on andore or off throughout the course of the history of asean, indonesia has played a role and as the biggest country, it does need to play what you call a mutual role so its neighbors do not feel threatened, but i think in the forthcoming next five years, 10 years, we do need to have a Stronger Leadership role from indonesia to make asean really strong and to make the asean centrality a reality. There is a very ambitious target on expanding financial evolution. On education,ram but also in creating banking and it resists through the Digital Economy because actually it is now moving very fast. With that, i think technology is going to be one of the solutions. Willducation and inclusion be very critical. We do it now through digital. Indonesia i think is one of the most advancing and amusing technology in the digital. We can integrate the economy through connectivity. Are looking at the payment system, to increase the financial inclusiveness. This is a lot of positives to o haslinda to understand indonesia, you have to understand its remoteness. It spans the distance from new york to alaska. The country plans to spend 350 billion over the next five years building roads, bridges, and power plants to link some of its 17,000 islands. The president has already made significant progress. A similar spend during his first fiveyear term, so highways popup across the country. Transit system, now operational, is a signal of that endeavor. But capital also has a new airport and Budget Airlines linking the major cities. Only trillion dollar economy has been growing at about 5 a year. It is not just about the physical connectivity, obviously, but there was a whole range of issues there about data flows, payments, taxation, privacy, security, and about talent, i would say. If we could actually address ist freedom, which professional workers, if we could focus on digital, that weht actually help a lot as begin to have a wider professionalism, and it would help asean. If asean became one market in the digital and data market, i think we could give china competition. There are so many reforms required for the asean country to be able to design and develop deepening Financial Sector or financial system. Then, also creating an instrument based on the local currency. With that, you are not going to be affected mostly either external or regional factors. So you are more or less in charge for your own economy development. Haslinda Financial Inclusion is a key focus for the region, but Financial Literacy is still quite low across the region. How challenging is that, and how do you bring everybody on board . Indonesia is one of the cases in which the Financial Inclusion we are still behind, just like india. We are maybe the two largest economies that if we make progress, it will make a lot of difference globally. The globalrole in economy is a mathematical inevitability. Trillion perght 3 year plus economy growing at more than 5 per year, so 14 years from now, we are going to grow to be an extra 7 trillion dollar figure economy out of a roughly hundred trillion dollar per your World Economy, so we are a significant chunk of the Global Economy now and are only going to increase years, 18 years from now. Haslinda armed with size, scale and influence, asean has often been criticized for being unable to mpower change because of what has been called set mpower change because of what has been called its soft consensus approach. In the increased world we are facing, we really need to be stronger as asean and in the region because i think that is the answer to the greatest issue we are facing with multilateralism. It should be able to play a role in what we call a middle power because you have china, u. S. , when theycountries are fighting or when they are good friends, we will always have issues. So we need to be balancing it with japan, korea, and asean as a whole is the middle power. Haslinda where do you think asean will be in 10 years . What is the vision for asean for you . Well, there is momentum if you look at the Global Economy business. To be vibrant and perform well on the economy, both in policy and mathematics, as well as there is a competition with this, meaning you are in the region with if you only where if you only grow by 5 , you are not performing. Believe it is an african origin, a belief that says if you want to go fast, go alone, if you want to go far, go together. There is a lot to be said for a large amount of consensus for what is the beauty of asean is, it is flexible. There are a lot of policy spaces for individual countries or subregions to do what they think is best. You dont have to conform to a straitjacket of an aseanwide policy. Haslinda indonesias president has promised a great 100 million jobs, to bring the workforce to new scales for revolution. This is asean the next generation. Haslinda when you travel around asean, you see lots of young people. The average age of its population is 29 years old. Compare that to their leaders at 70 and you get the idea of the leadership gap. When you take a look at south asia, asean, what excites you the most and you look into the next 10 years . I would have to say it is the next generation of Young Leaders and politics and business, like ecommerce and the economy. There is a next generation of Young Political leaders, young business leaders, Young Leaders ,n Media Entertainment fashions, culinary, and they are waiting in the wings. That is what you are going to , eightoss asia, asean years to 12 years from now, and eight years, 12 years goes by and the snap of a finger. Haslinda what will the new leaders bring . How will they shape the face of asean Going Forward . There will be more of a Southeast Asian identity eight years or 12 years from now arsus an indonesian identity, tie identity, a filipino identity. We will see the emergence of Southeast Asia in the asean identity. Haslinda i think young people, even though they dont think , in a way, they are really zed with the identification of being part of her region. I think the youth is the future of the region. Each of us have our own identity, but we also identify ourselves as being part of Southeast Asia i think because of travel, because of connectivity with budget airline, and digital information. We are connected in a digital connectivity that has boosted the information that young people have about each other. Haslinda the president has plans for what he says will be 100 million new jobs over the next five years, and while asean s biggest economy has been growing soft, many young people find it hard to get work. So now the focuses shifting from Traditional Industries to education and the revolution. With Digital Technology, everybody can become an entrepreneur, even in a case like indonesia, the intrapreneur can be as young as primary school, which they actually have the way to put it online and the demand is there. So i think technology will opportunities in asean and the world that they can have an excess of markets in a more efficient and cheap way. The problem is how you are going to understand this ecosystem of the Digital Economy so everybody gets a fair share. Most one of the challenging policies we are discussing at this moment, and the Digital Technology creating jobs, access, new opportunities there was a number of therams already advancing financial inclusiveness. Of socialhe transfer program of the government through electronics. Last year, we are already in more than 15 million families. All of them through electronics. Look at mode of transportation and operation. So that is why indonesia jumps are 40 to 60 , and we growing in indonesia. There is a lot of nervousness. And there is the question of how do you deal with the skilled labor, the unskilled labor . Is better dealt with and it is already been dealt with laterally, but i think if we could focus on the skilled labor, as well as the possibility for training and education because i think if we are going to be going to the next stage of each of our countries development, as well as the future of economic integration, it is timely that we address that particular component of the economic integration. Financial inclusion and connectivity has been the big story in indonesia, and here oecd, according to the smes account for 70 of domestic employment and 56 of total investments. , grow them, and nurture them, and the economy, almost 70 of indonesian adults have mobile phones. They enjoy the ability to access the markets cheaply. For example, we have go pay. This is now connecting the 500,000, and i think may be no close to one million. They are expanding in indonesia, meaning that those merchandise, as well as sme, in the past, they cannot access the market because of logistical information. They are now actually becoming the player who enjoys the benefit. Economy and sme are nearing the capacity, and we have done that. We do a lot of things that support sme. Especially with the Digital Economy and finance. There is one story, for example, with sme selling a product in the streets, but through ecommerce, they are now already exporting. The future is the technological revolution. It means we will be called the fifth freedom. The fourth freedoms are already in the communities with free trading groups and investment in people. The fifth freedom is data flows. If asean is to become a meaningful economic integration region, then we have to address data flows. The whole rationale of aseans this is a Training Ground for us to connect with each other with neighbors as a practice before we open up more globally. I still think that rationale is very important. Haslinda and also very important to asean by the indonesian unicorns. I think we are only scraping the surface of how big it could be because our mission, our Addressable Market is the entire of Southeast Asia. Haslinda next, companies connecting asean the next generation. Haslinda Southeast Asian unicorns, three companies, connecting the country. The internet and mobile phones are giving tens of millions of smes and millions of people access to markets and finance. Indonesia has more than 75 million motorcycles. So the idea to rideshare them through the notorious traffic was good, good enough for it to now be valued at 10 million. Isets influence in asean huge because it is not just ridesharing but also logistics, food, and it is expanding fast. We are already at about 30 , 35 in vietnam after two months to three months, choose we were shocked to see the update so quickly, so we covered that but a lot of it will also be to expand new verticals and further increasing the penetration of our services in indonesia, which is the largest market where we are the market leader. Gic,an see we have google, and i a variety of other heavy hitter financial institutions. s bestlly see the world at all the key verticals we are trying to execute on in order to create this first in the world are super app that encompasses all your daily transactional needs. Technology is also going to facilitate this even more. If you see unicorns and the Digital Economy in asean, they are becoming one of the factors creating this kind of integration factor. , they arebout gojek already playing on the regional level, and they become the example for the economy. The saturation point of the consumers versus a china is very small. There is still so much more to grow across transport, food delivery, payments, or just six, digital list, logistics and digital. Our market is the entire middleclass of Southeast Asia. It ispily for us, extremely acute to the millennials and the next generation in the televised raising things like esports and mobile legends, tournaments, and also ecommerce and Digital Economy and unicorns. I am optimistic that the aspirations of the millennials will come much more to fruition in the hands of the next generation leadership across asean. sslinda china is asean largest trading partner and has been for the past 10 years. How it plots a course between beijing and washington given the current trade difficulties is just one of many Foreign Policy challenges. South china issue is pulling us apart, the south china issue is pulling us apart, tpp is tearing us down the middle, but somehow andn has been resilient maintained its progress even though in some years, you could say it was slow, but i think there is always an effort to say, what is the next challenge we have . We literally sit at the crossroads of global trade. 90 of the oil and gas from the middle east heading to the far. Ast passes through indonesia it has made us very open to international traffic, if you will, trade, tourism, investment , and it has also made is extremely tolerant of diversity of cultures from around the world. If you talk about 10 years from now, you have to see the , what isf the asean the dynamic of all this country the influencehave on the acceleration of integration or even it could be also slower in the region each countryave and i guess im a halffull glass person. I am optimistic asean will continue to be resilient and will hopefully the crisis in the Global Trading system and market should be a good sign or opportunity. Lets look at it as a positive. It is an opportunity for asean to become stronger again. To become the balance in this increasingly market rolled world. And you have a strong, regional presence to be able to have a voice in what is happening in this very uncertain multilateral, as well as regional, uncertainties. Haslinda what is the biggest change we will see in asean . It is potentially unlike anything you have seen because it is happening just when industry 4. 0, cloud computing, and all these next generation technologies are taking off. I think the people of Southeast Asia and asean have proven to be uniquely gadget friendly. Uniquely social media friendly. Arguably more so than any other region in the world. Haslinda these fishermen spend up to three months at sea, returning with a catch worth about 70,000. Traditional businesses like these have been the lifeblood of indonesia, but generational change is coming. A new future. Thanks for watching asean the next generation. Francine Lloyds Banking group is the largest Mortgage Lender in britain. The government had to bail it out during the financial crisis, but it made a 900 Million Pound profit when it sold its last remaining shares in 2017. The chancellor then called it a major achievement. Today on leaders with lacqua, we meet the man behind the turnaround. He is antonio hortaosorio, the chief executive of Lloyds Banking group. If you had to start back from scratch today, what would it look like . Antonio good afternoon. If i had to start the bank from scratch today in thinking about the future and what customers require, i would start by being very customer centric in the sense of understanding exactly which customer needs my bank would serve, because one of the think is if you want the regulatory environment, interestrate environment, and capital requirement, banks have found out they cannot be everything for everyone. Therefore, they have to focus and decide where they can create competitive advantages. Francine what is the competitive advantage of lloyds today . Antonio lloyds, based on the three points i just told you, lloyds, which has the additional advantage, versus a new bank, of having fantastic brands over fantastic300 years, a customer base, and a great group of people, lloyds tries to digitalery, very strong approach within a multichannel concept. We have the Largest Digital Bank in the u. K. With more than 15 million digital customers, out of which almost 10 million use the bank through their mobile app. At the same time, we have the largest Branch Network and a very significant offcenter approach so customers can interact with us in a multichannel way. On top of that, we have a multibrand approach as well, which is an additional layer of segmentation. We have the lloyds brand, we own the halifax brand, the bank of scotland brand, and that scottish insurance an additional , and it is an additional way of addressing customer needs. We are a multibrand pigmentation. Francine is mass critical . Is critical in certain aspects. On one hand, i think this is one of the biggest evolving trends in banking nowadays is that you have to focus on your customers better, and therefore and addresssegment the evolving needs constantly, and a digital bank enables you to segment a much easier way of providing through a digital bank much cheaper than other types of approaches. But at the same time, given the environment is talked in competition is increasing, you need the lower operating cost model. The advantage of having a large number of customers and transactions may increase your unitary cost. Francine what is your biggest fear . Is it being disrupted . How do you know how millennials or the generation after them will bank . Antonio my biggest focus in the bank is to make sure that we deliver our plans appropriately. Lloyds is the largest retail and commercial bank in the United Kingdom. We have multibrands in a multi channel approach, and we focus the bank in the real economy. We focus the bank on families, on small and mediumsize businesses, and insurance, so we dont do basically anything else. We have sold all other activities like asset management, private banking, the International Activity to focus the bank where we could have a competitive advantage in the real economy in the United Kingdom. And we have a purpose beyond providing banking services, which we try to help the country prosper. That is our mission, to help britain prosper. Francine i understand multichannel. If you go to a person on the street and asked them, they may not understand multichannel. How do you simply sell your bank to a person trying to open a bank account or doing Something Else at the age of 16 . What is your primary target . Is it getting them early, or is it a little later, does the is it the second or third bank account . Antonio our purpose is to serve our customers well, and as i told you, to give them an offering to satisfy their needs. And within those offerings, we have offerings for students. To your point, get them early. We have offers for couples that live in cities and have good incomes that need to buy a house, which is expensive in cities and they have specific needs, or for older people who are concerned about how they are going to finance their pension and their future after they dont work anymore. It is a segmented approach, and we have close to 30 million customers, and we want to serve them all well and appropriately through the multibrand in multichannel approach. When you ask me, how do i explain the multichannel approach . It is very easy. You have the bank in your pocket, and you can use how many times you want. But if you have, for example, if you want to buy your first house and you need a mortgage to buy your first house, you want Human Interaction, you want advice, you want to hear what other people do, what you should try, how you should compare it, and to provide mortgages is something we specialize in through our Branch Network. We are increasing the number of advisors in the Branch Network, which is a competitive advantage. Another one would be our partnership where we are going to provide advice for people that are looking to consider how they are going to improve their pension in the future. How theyre going to invest their savings. That is also something which is a very important decision for people anywhere the Human Interaction is important. Francine coming up, the future of banking. Antonio hortaosorio breaks down his vision of lloyds digital future. More from the chief executive next. Francine the past 10 years have been transformational for lloyds. It has gone from bailout to profitability, and invested heavily in technology as part of its digital strategy. Now, lloyds is the Biggest Online and mobile bank in the u. K. But what will the next decade look like, and what will customers want from their bank . Antonio hortaosorio is still with me. What will lloyds look like in five or 10 years . Antonio lloyds is now very focused at being successful in the Digital World. People are interacting with us exponentially through the mobile app. To give you an idea, we have on the mobile app 22 Customer Interactions per month, which is more than double what we had two years ago. What we had three years ago. That has a big advantage, given we have the Largest Digital Bank in the u. K. We have invested massively in terms of artificial intelligence, in terms of risk programs, in terms of Customer Behavior in order to understand what customers want. The fact that they interact with us enables us to quickly know what they want and be able to offer them the products and services they need, when they need it, in a transparent condition, and with fair prices, which is a big advantage of this Digital World where customers interact with banks or other companies. Francine you have been chief executive since 2000. Since 2011. What are you most proud of . Antonio when i joined in 2011, the bank was different from what it is today. As you know, the bank has been influenced. The u. K. Government is a large acquisition and had to inject about 20 billion pounds into the bank, making them a 43 shareholder. And within the financial crisis, the bank had 100 billion pounds of special assistance from the bank of england, and around 200 billion pounds it additional pounds of additional net debts of what was critical at the time was we focused the bank in the United Kingdom and make it competitive, make it prosper, and on the other hand to address the financial situation of the bank. Eight years later, we have zero net debt in the bank. We have one of the highest capital levels of any bank in the world. And we pay all the taxpayers money, almost one billion pounds on top of that, which was a moment of huge pride. We are absolutely now focused on our third Strategic Plan to make life successful in addition to the world. Which is the future. Francine did you have to change the culture, and was that the toughest part . Or was it getting the numbers under control . Antonio get the numbers under control and address the Balance Sheets was critical and very important to do quickly, but not the most difficult, because the culture and to make the Bank Customer focused and make the think more cost conscious and investing for the future, the cultural shift takes much more time because culture by definition is something you acquire after a long time. In order to change it, you have to allow time to go by. In order to do that, i also had to change a few people and i had to be very visible communicating to my staff what our values were, what our goals were, and how we should bring it back together in order to focus on customers and make it efficient and profitable. And give the taxpayers money back. Francine what is your advice . A lot of banks had to change the culture from within. What is the chief executives role . Did you meet people every day . Was there a video address . It is the most difficult. But also the most difficult thing to see how you do it. How concretely did you change the culture . Antonio i think number one, i think your leadership style should be appropriate to the moment you are in and the situation of the company. Given that lloyds was under severe stress, it was important to take decisions more quickly in terms of trade off outcomes versus process. Outcomes had to be privileged, and you needed people and you needed a Leadership Team that would together with you change the bank. You dont change companies alone. Oriented to be more and they have to hire, coach, and retain great people, but together disseminate the culture you want for the organization. The first thing is to select the right people. To give you an example in relation to that, i spent a lot of my time interviewing all of the top two candidates that report to my direct reports, which is a lot considering that i have 12 direct reports. I interviewed all top two candidates because i wanted to make sure they have the right values and are the right examples, role models for people in the bank who aspire to be like them, number one. And number two, i want those people to understand that those who come into the bank are promoted. They become corporate citizens, and not only divisional citizens. That is one of the main fractions of the leader. In the modern world, you have to be focused on people and creating great teams. Francine you have worked for an american bank, spanish bank, and u. K. Banks. Two is it different working for different cultures, banks . Antonio it is different, and it is different not only it is not only different to compare spanish culture with an american culture, it is also different to compare the culture 20 years ago with the culture today because things are evolving, values are evolving, and as a leader, you have to adapt yourself to different cultures. The fact that i worked in several countries with different banks made me realize that everything is not absolute, that you have to be relative about your judgments and understand the pros and cons of situations. You use your judgment a lot, because maybe a spanish culture is more prone to take action quickly versus, i would say, a japanese culture, where they take a long time to consider issues. But when they execute, they execute quicker. I think you have to take things into context and what is right in the time, what is right in a geography may not be appropriate in another geography or another context. Francine coming up, what kind of leadership style does it take to navigate dealing with shareholders, the government, and geopolitical risk . More from the chief executive of Lloyds Banking group. Francine under antonio hortaosorios leadership, lloyds has returned both to profitability and private ownership, but what skills are called for to successfully bring a bank back from the brink . Our guest has a wealth of crosscultural experience. Is portuguese and has managed in u. K. And spain, so how has this informed his style as a leader . Antonio hortaosorio is still with us. With the benefit of hindsight, since 2011, is there anything you would have done differently, either for the lloyds strategy or for the wider Banking Industry landscape . Antonio all of these things with hindsight, it is very easy on monday to guess the result from sunday. With hindsight, there are always things that one thinks it could have been different or better. The main thing was to sit together with a great team and to look at the direction of the bank and to hire great people to continuously coach them, develop them, and retain them, which i think are the biggest functions of a leader. I have done what i thought i should do, and i think lloyds results speak for themselves. The bank has been made fit or a purpose. We have given taxpayers money back and some more, which was a big achievement in a moment of pride for the staff in the bank. We are absolutely customer centric. We have the Largest Digital Bank in the country, when a digital is the fastestgrowing segment to being in establishing bank. We have the largest marketing share through digital, which is fantastic. Francine how do you navigate the u. K. Economy . You are tied to the u. K. Economy, and there can be bumps and rides, and we dont know where we will end up because of political decisions in 12, 18 months. Antonio you are right, there is a significant amount of uncertainty with the u. K. Economy. As i commented recently, the u. K. Economy has been proven to be very resilient, although the uncertainty if it continues might affect it. That is, uncertainty that the markets do not like. But the fact is the economy is very resilient. You have gdp growing between 1 and 1. 5 . Employment levels in the u. K. Are at the highest ever. And unemployment is the lowest level since 1975. You have low interest rates, therefore the quality of the Balance Sheet of banks is high. The World Economy is growing at a slower pace. It is still growing around the. 3 for this year, which is a healthy pace, so you have good conditions for Economic Growth to continue, but you have uncertainty areas. Another one is trade between the u. S. And china, but also the u. S. And other regions, which is important to address appropriately. I would classify the economy as resilient with good fundamentals, but there are important areas of uncertainty, which is an expected outcome, should go reasonably well, but might not go as well. Francine how do you deal with a political party, one of the Major Political parties here in the u. K. That has taken a turn to the left, and that could actually impose transactions . Is it a tough environment to be a chief executive or a banker when you dont know what labour will do . Antonio no, i dont think my position is heavily influenced by politics. We are the Largest Commercial Bank in the country. We deal with the government, all future governments. Our objective is to serve our clients in the best possible way, and interact and deal with regulators and politicians irrespective of which party they belong to. We have a common goal. One of the additional beauties of lloyds strategy, the focus on the u. K. And the real economy of the u. K. , we want the best for the u. K. Economy. What is best for the u. K. Economy is best for lloyds and vice versa. It is in alignment of interests. I think it is really good in terms of our interaction with the u. K. Society in general. Francine apart from executing your plan, what is your biggest concern . What do you focus most of your time on . Is it finding the right leaders to succeed you one day . Is it diversity, or Something Else . Antonio i spent a lot of time on hiring, coaching, developing and training people, but i also spent a lot of time going throughout the country communicating our values and culture. I interact significantly with investors, with politicians, regulators, and stakeholders. And that is how i would spend my time, one third, one third, one third. But my main worry, apart from executing our plan well because execution is really important, you have to constantly have your eyes on the stars with your feet firmly on the ground, to make sure you know where you want to go, that everything that has been done daytoday goes in the right direction. That is critically important. I have several worries that we have to manage. For example, cyber risks. We invest heavily on cyber risks, and we think we are on the upside of banks in general, but it is a risk we can never say does not exist. We can invest more, step up our defenses, but it is a risk you can never avoid, to give an example. Francine how do you measure success . Antonio in the bank, we measure success through a plan. Francine that is the bank, how do you measure success . Antonio me, personally . The most critical component in measuring success is to see how the people i interact directly with, how they developed themselves, and i was telling you, how they become better professionals, but better people. I try to develop them by stretching them to the limit of their abilities, also helping them in their decision process. I give them accountability, i give them responsibility, and i am demanding because i think only when you have demanding goals do you achieve superior results. And they know if there is something wrong, i am behind them and i am ultimately responsible. That is my job as a coach. Francine where do you see yourself in five years . Antonio i see myself continuing to develop the bank and creating highperformance teams, and providing better and better offerings for our customers. That is what i would like to do. I am more than a banker, i am a ceo specializing in banking. It is what i like to do. I started in banking more than 30 years ago, and it is what i like to do. I am exactly doing what i like, and is what i see myself continuing doing. Francine thank you for your time. Antonio pleasure. At comcast, we didnt build the nations largest gigspeed network just to make businesses run faster. We built it to help them go beyond. Because beyond risk. Welcome to the neighborhood, guys. There is reward. Beyond work and life. Who else could he be . There is the moment. Beyond technology. There is human ingenuity. Every day, comcast business is helping businesses go beyond the expected, to do the extraordinary. Take your business beyond. David what does the moment of a lift refer to . Melinda if we can lift up all women, we will change the world. David do you find sometimes a woman would say, take my child . Melinda it is heartbreaking. That is the story of women, many around the world. David when someone called you, we are giving you 50 billion or 60 billion we did not expect, what did you say . Melinda bill and i took a walk and we both cried. David when did you first meet bill . Melinda he said, a bunch of us are going dancing, why dont you come . David is he a big dancer . Melinda he likes to. Would you fix your tie, please . David a lot of people wouldnt recognize me if my tie was fixed. We will leave it this way. Alrig