“Malta’s reputation as a financial hub is increasingly defined by its agility and forward-looking mindset,” says Jochen Biedermann, managing director of the World Alliance of International Financial Centres (WAIFC).
Representing 27 financial centres across four continents, Biedermann is well-placed to assess how jurisdictions are adapting to global challenges, and he highlights Malta’s ability to innovate, brand itself effectively and reach beyond its shores as key factors that set it apart.
He acknowledges that attracting and retaining top talent remains a challenge, but suggested that advances in artificial intelligence, particularly Agentic AI – systems which can take autonomous, goal-directed actions – could offer solutions.
Malta’s specialisation in sectors such as gaming, digital assets, green finance and, most promisingly, the blue economy further strengthens its position.
On the importance of regulatory certainty in attracting foreign firms, Dr Biedermann underlines the central role of credibility.
“Being a credible, reputable financial centre in good standing with international authorities is of utmost importance in attracting foreign firms”.
Malta has, he argues, often succeeded by providing regulatory clarity at times when frameworks were lacking elsewhere. Yet he cautions that others will eventually catch up, making it necessary for Malta to continue focusing on emerging areas.
He also highlighted the significance of international promotion, commending FinanceMalta’s effort.
“I applaud the colleagues of FinanceMalta who relentlessly promote Malta at major financial conferences. As an association, we do our best at the World Alliance to support FinanceMalta in that respect, helping them to reach out to other members.”
Reflecting on the wider outlook for financial centres, Dr Biedermann observes that most of the difficulties are not short-term shocks of the kind experienced during the dot-com bubble, the 2008 financial crisis or the COVID-19 pandemic.
“Most of the challenges financial centres face today are not immediate, but rather mid- to long-term, fortunately”.
Most of the challenges financial centres face today are not immediate, but rather mid- to long-term, fortunately
Among these, he highlighted the financing of the net-zero transition, demographic shifts linked to ageing societies, and the intense global competition for talent.
In the shorter term, he also draws attention to geopolitical and regulatory pressures including sanctions, changing supply chains, cybersecurity threats and the strengthening of anti-money laundering and counter-terrorism financing measures.
For Europe, however, there is another major obstacle: declining competitiveness.
Several statistics suggest that Europe is falling behind in the financial services sector compared to the US and Asia. With a few notable exceptions, such as the Nordics, our capital markets are not competitive enough, and are regularly unable to provide sufficient funding for innovative European startups.
Questioned on what could encourage the resilience of the industry, Dr Biedermann insists that networks are vital.
“Collaboration between financial centres transforms a collection of individual nodes into a robust, interconnected network. This is true both regionally, within the European Union, and globally”.
On the debate over greater centralisation of regulation, Dr Biedermann takes a balanced view, especially in relation to Malta.
“A more centralised EU framework offers clear advantages, notably passporting rights, which allow Maltese institutions to serve clients across the Union. On the other hand, smaller economies cannot always afford to wait for lengthy EU negotiations.”
“Agreeing on common standards in the EU27 regularly takes too long. Therefore, Malta often innovates in regulation, creates legal certainty, even without knowing whether its standard will be accepted at an EU level later. Furthermore, it requires sound research, a culture of risk-taking, and regulatory authorities with experts who are at the forefront of financial innovation.”
Beyond centralisation, Dr Biedermann highlights the merits of collaboration in enhancing resilience.
“Resilience also comes from building stronger systems beforehand. Financial centres are laboratories for innovation in financial products, risk management, and regulatory technology. Financial centres, including Malta, often pioneer new approaches.”
“Through collaboration and competition, these best practices are shared, adopted and adapted”.
According to Dr Biedermann, Malta’s ability to combine agility with credibility, and its track record of innovation in specialised sectors, were prime factors that earned the country recognition at the highest levels of international finance.
“However, Malta’s future success will depend on maintaining a balance between moving quickly to embrace opportunity, while ensuring that regulation, reputation, and talent remain firmly at the core of its strategy.”