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5 ways generative AI is transforming the payments ecosystem

The generative AI boom is set to accelerate digital transformation throughout a range of industries and breathe fresh life into a banking ecosystem that still struggles with overcoming legacy processes. With payments already a focal point for challenger banks and fintechs, GenAI can help to deliver efficiency on a broader scale. 

Bloomberg data suggests that generative AI is set to grow into a US$1.3 trillion industry by 2032, and this will see use cases emerge throughout the field of finance. 

Crucially, the rise of generative AI will aid fintech in delivering more open finance services for customers in an impactful way. 

The emerging technology will also breathe new life into payment management and processing through the use of embedded finance, super apps, metaverse payments, decentralised wallets, cryptocurrency integration, and buy now pay later (BNPL) services, among many more functionalities. 

But how exactly will generative AI transform the payments landscape for consumers and institutions alike? Let’s take a deeper look at five key ways in which the GenAI boom will change the payments ecosystem forever:

Next-generation payments management

The natural ability of generative AI to operate alongside algorithms that can utilise complex structured and unstructured data is a key asset for driving transformation in the payments ecosystem. 

Generative AI can help stamp out instances of human error and deliver more accuracy throughout operations on a wider scale. 

Artificial intelligence can also help to streamline the routes taken throughout payment processing to add greater efficiency through each interaction in the process — whether the payments are actioned domestically or internationally. 

With the help of analysing data and generative algorithms, AI models can autonomously select the most efficient and cost-effective methods, helping to drive more value for all parties concerned.

This added element of digitalisation paves the way for faster payment processing and stronger cash flow management. 

Also Read: Unleashing the power of specialised AI startups in the era of generative AI

By mitigating instances of human error, artificial intelligence models can also prevent costly mistakes due to payment inaccuracies and deliver greater levels of customer satisfaction as a result.

Invoicing autonomy

One jarring legacy process that’s still prevalent in the world of payments revolves around invoicing. With paper invoices and email attachments still commonplace among billers requesting payments, this crucial financial service remains largely inefficient. 

Legacy billing involves the manual input of bank details which is prone to both delays and human error. However, generative AI can help to automate this process in its entirety by extracting payment information from invoices, removing the risks attached with manually inputting bank details. 

Through machine learning algorithms, AI systems can also actively monitor invoices and payments for any errors between the biller and the customer to assist any manual tasks within the payment process. In practice, this would help to match invoices to payments and reconciling accounts. 

Automating payouts can transform trust in a range of industries. Throughout supply chains with vendor payouts and marketing with AP automation, it’s possible to leverage payments through flexible international route payments based on structured analytical performance insights.

Stamping out fraud

Because of the seamless ability of AI to analyse significant volumes of data almost instantaneously, the emergence of generative AI can be an excellent tool in preventing instances of fraudulent activity in payments. 

All card transactions generate significant volumes of data points, and much of it has the potential to identify and stamp out fraud among transactions online. 

Whenever a payment is processed, generative AI can automatically analyse data alongside a machine learning (ML) algorithm that’s trained to spot trends surrounding fraud to make a rapid decision to approve or flag the transaction for suspicious activity. 

As digital transformation continues to transform how payments are made, fraudulent activity can be a challenging prospect for many fintech firms and traditional institutions alike. It’s through advanced GenAI solutions that all institutions can actively monitor and protect against fraud in real-time to a safer financial ecosystem for all.

Advanced product prototyping

Another area of finance that holds great potential due to the arrival of generative AI is product prototyping. Large language models (LLMs) like GPT-3 are capable of generating sample code for virtually any purpose. This opens the door to GenAI tools seamlessly generating code for prototype products and services. 

Also Read: Why AI needs context and curiosity, not toxic positivity

In a financial landscape that’s already actively embracing open finance services, generative AI is capable of accelerating the growth of this industry subsector by producing efficient coding for brand-new features in the space for fintechs to pioneer. 

Additionally, the programs can take on board feedback to improve its own code to improve the product and fine-tune its capabilities. 

For fintech startups, this means more innovation for fewer resources that can serve a variety of functions and are rapidly tested. In terms of payment integrations, this prototyping landscape could significantly improve the time to market for new payment features and efficiencies.

Embracing personalised marketing

Generative AI can also help payments providers to market their products more effectively. From in depth market research powered by the interpretation of large data sets by artificial intelligence to the creation of marketing materials for hyper-specific audience segments, it’s possible to market directly to leads in an unprecedented manner. 

Because LLMs have the ability to automatically generate content based on simple prompts, it’s possible for payments providers to produce customer-specific generative AI content in a way that perfectly matches the expectations of the customer, no matter where they are in the world, and can help to be a driving force in converting leads into conversions on a larger scale. 

Timely boost to payments transformation

The arrival of generative AI will have a major impact throughout a vast range of industries, but its implications for the payments landscape can’t be underestimated. 

Open finance will be built on the foundations of the free flow of data and its conversion into efficient services and actionable insights. Generative AI will drive this transformation and help to make payments more efficient no matter who the parties involved are or where they are in the world. 

Additionally, the combination of ML and LLMs will introduce a new level of security and personalisation to the landscape that can help customers feel more valued and safe when making payments on a global scale. 

The age of generative AI is upon us, and its positive implications in the world of finance will be felt by everyone.

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How a cross-border tech team built a fintech MVP in 3 months

How do you turn a napkin sketch into a global product with a lean budget, and do it on a lean budget?

It’s a question many early-stage founders wrestle with, especially when resources are tight but ambitions are sky-high. A few years ago, I found myself in the middle of one such journey. A founder with a bold fintech idea and limited funds reached out, unsure how to bring his vision to life without breaking the bank. What followed was a cross-border collaboration that not only solved his problem but launched a product now used across the world.

Here’s a case study from my own experience: a founder with a big idea teamed up with a Vietnam tech team, and together we launched something the world uses today.

The challenge

A couple of years ago, I met a founder from the UK with an ambitious idea in the fintech space. He had deep industry knowledge and a solid business plan, but one major hurdle: a limited budget to build the product. Local development quotes were sky-high and threatened to sink the project before it even started. That’s when I suggested a different path: build his tech team in Vietnam.

He was intrigued but cautious. Would a remote team understand the complex fintech requirements? Could they build a world-class product from halfway across the globe? I introduced him to a small squad of Vietnamese engineers I knew – smart, young, eager developers who had worked on similar projects. After one video call (and a lot of tough technical questions from the founder!), we decided to give it a go.

Building the team

We started with a core team of five developers in Ho Chi Minh City, plus the founder and me on the product side. From day one, we ran it like a unified team. Daily stand-ups bridged the four-hour time difference.

The founder shared his vision and industry insights with the Vietnam team, and in turn, the developers offered clever solutions to localise the app for global markets. I remember waking up to Slack messages at three AM – not with problems, but with prototypes of new features the team had built while I slept! Their enthusiasm was off the charts.

Also Read: Why founders should train like runners

Within three months, this cross-border team built the first MVP of the fintech platform. We rolled out a beta to a small group of users in Europe simultaneously to gather diverse feedback. After a quick iterative cycle (thanks to the team’s rapid turnaround), we launched globally in our 6th month. The result? Users from over three countries signed up in the first week.

Scaling to global product

Over the next year, the Vietnam team grew to 15 strong as user demands and feature requests expanded. Because of the cost savings, the startup had funds to scale marketing and customer support. The product kept improving every sprint. Founder flew to Vietnam and spent a month with the team, aligning the roadmap and soaking up domain knowledge.

By the end of year one, that little startup had 50,000+ users worldwide and attracted a round of venture capital that valued it in the eight figures. And yes, the entire development team was still proudly based in Vietnam.

Key takeaways

  • Talent and dedication win: The Vietnam team’s skill and dedication were the linchpin. They weren’t just contractors; they felt like co-founders. They often suggested features to make the product better for global users, not just blindly coding tasks. This ownership mentality accelerated innovation.
  • Speed via time zones: Our 24-hour development cycle (UK/Vietnam overlap) became a secret weapon. While the founder slept, code got written; by morning, things had progressed. We turned what could have been a challenge into a speed advantage.
  • Cost efficiency = longer runway: Building the team in Vietnam saved an estimated 60 per cent on development costs. That money went straight into user acquisition and cloud infrastructure to handle growth. The extended runway meant we could focus on refining the product instead of constantly worrying about the next fundraise.
  • Cross-cultural team, one vision: We treated the Vietnam developers as equal partners in the mission. The founder held virtual town-halls with the whole team, ensuring everyone understood the why behind the product. This cross-cultural unity – European domain expertise and Vietnamese technical talent – was key to creating a product that appealed to users globally.

What started as an idea and a tight budget turned into a global fintech product success – largely because we leveraged the power of Vietnam’s tech talent through a partnership approach. It’s a model I’ve now seen work multiple times, in different industries, not just fintech.

Editor’s note: e27 aims to foster thought leadership by publishing views from the community. Share your opinion by submitting an article, video, podcast, or infographic.

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Asia’s cross-border payment surge: A US$23.8 trillion opportunity with fragmented solutions

Asia-Pacific’s cross-border payment volume is on track to hit US$23.8 trillion by 2032, nearly doubling from US$12.8 trillion in 2024. But behind the headline growth lies a fragmented payment infrastructure where regional scale remains a costly ambition rather than a given.

A new report from Money20/20 and FXC Intelligence, launched at Money20/20 Asia in Bangkok, lays out the numbers – and the growing urgency – for interoperability across Asia’s diverse markets.

“Asia’s payments landscape is evolving quickly, but also with remarkable complexity,” said Daniel Webber, Founder and CEO of FXC Intelligence. “This report underscores the need for intentional collaboration across borders, sectors, and technologies to create truly inclusive financial ecosystems. Interoperability isn’t just a tech challenge—it’s a regional opportunity.”

Growth masks fragmentation

Asia-Pacific’s share of global cross-border flows is expected to rise from 32.2 per cent to 36.8 per cent by 2032. But volume alone does not mean market readiness.

“Growth figures reflect strong momentum but hide deep market disparities,” says Fernanda De Fino, Director of Global Risk & Compliance at EBANX, a global fintech specialising in payments in 29 emerging markets across Latin America, Africa, and Asia. “What works in Singapore doesn’t port over easily to markets like Indonesia or Vietnam”, she adds.

EBANX’s Beyond Borders 2025 report highlights the recent growth of new payment methods, largely driven by emerging economies, and signals significant changes in global consumer behaviour. These methods, characterised not only by their real-time transfer capabilities but also by their seamless, mobile-born, and digital-first operations, are redefining how people engage with financial transactions and fostering the growth of digital commerce.

Though many of these alternative payment methods (APMs) weren’t initially designed for paying merchants, their deep integration into daily life makes them the dominant choice for online purchases in many countries. 

Also Read: How to build deep tech startups across borders

Southeast Asia and India together are projected to see a 122 per cent increase in consumer spending over the next decade, outpacing Latin America (57 per cent) and Africa (103 per cent). According to Statista data in Beyond Borders, online sales are projected to grow by 14 per cent annually across emerging Asian countries over the next two years, with India leading the charge.

Regional players—both large and small—looking to expand must adapt to diverse consumer behaviors and fragmented tech ecosystems. Success hinges on understanding markets shaped by peer-to-peer (P2P) payment habits, which are now accelerating the shift toward digital commerce among new users.

Why interoperability is the next big fintech battleground

Startups looking to win in cross-border payments need a dual approach: deep local integration paired with regional interoperability.

Despite 88 per cent of industry stakeholders rating interoperability as “very or extremely important,” there’s little consensus on how to achieve it.

Real-time payment systems are seen as the most likely driver of integration (66 per cent), followed by digital wallets (59 per cent). But regional fragmentation persists, with no dominant cross-market infrastructure gaining real traction.

“We’re seeing a significant acceleration in how cross-border money moves, and the next decade will be crucial in shaping the infrastructure that powers it,” said Scarlett Sieber, Chief Strategy and Growth Officer at Money20/20. “Asia’s future lies not in a one-size-fits-all model, but in interconnected systems that balance innovation with regional adoption.”

QR codes: A missed opportunity?

Take QR codes, hailed as the low-cost rails for financial inclusion. Thailand’s PromptPay, Singapore’s NETS QR, and Indonesia’s QRIS were all built with similar aims. Yet they run on incompatible specs.

Efforts like ASEAN’s Project Nexus aim to link these systems, but progress has been slower than fintech founders hoped. Even successful efforts like Singtel’s VIA alliance remain limited in adoption beyond core territories.

Meanwhile, China’s WeChat Pay and Alipay continue expanding in the region, adding pressure on local players to compete, or connect.

What founders need to know about Asia’s regulatory maze

The report singles out regulatory complexity as a top barrier to scale. 86 per cent of respondents cite policy discrepancies, from KYC requirements to data localisation, as a persistent challenge.

Also Read: Learn the ropes around scaling your startup across borders

“E-wallet rules in markets like Indonesia and Vietnam are constantly evolving, which demands higher compliance standards,” says De Fino. “These changes may create new challenges for fintechs entering these markets.”

Singapore’s sandbox model is seen as a bright spot, but elsewhere, inconsistent rules slow expansion and discourage early-stage fintechs from attempting cross-border moves too soon.

Partnerships: Fintech’s real-world solution to fragmentation

91 per cent of fintech leaders agree that partnerships will shape the region’s infrastructure future. But making those partnerships work is easier said than done.

“The successful ones are balanced, technically, commercially and regulatorily,” says De Fino. “You need clear value for all parties, not just the biggest player.”

Past attempts at integration show the pitfalls: enthusiasm at launch, but little traction when business models aren’t aligned.

Don’t forget inclusion

A major blind spot in the race for scale? Financial inclusion. The unbanked and underbanked still make up a significant portion of the population in Southeast Asia.

Agent banking and cash-in/cash-out points remain critical in countries like the Philippines and Indonesia. Any real cross-border solution must account for these users, or risk leaving millions behind.

Bottom line

Cross-border payment volume in Asia is booming — but founders and fintechs should resist the hype cycle. Regional expansion won’t be plug-and-play. It’ll require local-first design, regulatory foresight, and above all, partnership.

The US$23.8 trillion opportunity is real. But the rails to get there are still under construction.

Editor’s note: e27 aims to foster thought leadership by publishing views from the community. Share your opinion by submitting an article, video, podcast, or infographic.

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The future of travel payments infrastructure: Is orchestration the missing layer?

The APAC travel sector is booming — airports are packed, hotel bookings have surged, and tourism numbers in countries like Thailand, Japan, and Indonesia are surpassing pre-COVID-19 levels. According to the Pacific Asia Travel Association (PATA), international visitor arrivals in APAC are expected to exceed 500 million by 2026.

But behind this growth story lies an unsolved operational problem: payments.

While the front end of travel has become frictionless — with intuitive mobile apps, AI-driven recommendations, and 24×7 booking — the payment infrastructure that powers these experiences remains fragmented, and often invisible until it fails. And it fails often, especially across borders.

The hidden complexity of travel payments

Travel isn’t like other verticals. It’s inherently time-sensitive, emotionally charged, and cross-border. That makes the role of payments uniquely critical. In my conversations with airlines, hotels, and OTAs, I identified these key pain points:

  • Fragmented payment ecosystem

For travel merchants — airlines, OTAs, or hotel chains — the payment process isn’t a simple swipe. It involves a labyrinth of interconnected players: GDS platforms like Amadeus and Sabre, IATA settlement systems, payment gateways and acquiring banks, card networks and local wallets, Property Management Systems (PMS), travel agents, and B2B settlement intermediaries. Each plays a critical role in the transaction journey, yet no one is fully in control.

  • Cross-border complexity

A traveler in Kuala Lumpur may use GrabPay, one in Tokyo prefers cards, and another in Sydney pays via Apple Pay. Add to that dynamic currency conversion, foreign exchange fees, and country-specific payment regulations. With travellers coming from different countries and using different currencies and methods, cross-border payments must be seamless.

Also Read: Asia’s cross-border payment surge: A US$23.8 trillion opportunity with fragmented solutions

  • Reconciliation across markets and channels

Managing payouts, commissions, and settlements across countries and systems — whether online, in-app, or point-of-sale — is operationally heavy. Without unified reporting and reconciliation, finance teams are left to piece together fragmented data manually, risking errors and delays.

  • High drop-off risk at checkout

Unlike retail, where a failed transaction might lead to a later retry, travel purchases are often time-sensitive. If a customer can’t use their preferred method or faces a failed payment, they’re more likely to abandon the booking and switch platforms — costing businesses immediate revenue and long-term loyalty.

  • Refunds, cancellations, and disputes

The volatility of travel – weather delays, visa issues, changing plans – means refund handling and reversals need to be just as smooth as payments themselves. A clunky refund process creates friction and erodes trust.

  • Missed opportunities for loyalty and up-sell

When payments are treated as a backend function, opportunities to drive loyalty, bundle ancillary services, and personalise offers at the point of payment are often lost.

  • Fraud risk, compliance, and data control

Travel payments are high-risk by nature — with large transaction values, frequent international bookings, and elevated fraud potential. At the same time, travel merchants must navigate country-specific compliance mandates, data localisation rules, and privacy regulations. Without unified oversight and controls, the result is false declines, audit gaps, and lost trust.

Simply put: payments have become a bottleneck to growth. Travel brands need payment infrastructure that’s not just reliable, but also smart, flexible, and built for global-local realities.

One emerging approach to these challenges is payment orchestration, which unifies diverse payment systems into a central infrastructure

Orchestration platforms serve as a middleware layer, aiming to improve coordination between different parts of the payment system. Think of it as a “control tower” for payments — overseeing, optimising, and routing every transaction for maximum efficiency.

How orchestration platforms are changing the payments landscape

Modern orchestration platforms are purpose-built for complex, multi-market industries like travel. Here’s how orchestration helps travel brands simplify operations and unlock growth:

  • Single unified platform

Travel payments involve many moving parts: from GDS and IATA systems to acquiring banks, card networks, PMS platforms, and POS systems. An orchestration platform connects them all into a single interface, helping travel merchants centralise control while preserving flexibility.

Also Read: Taking control of your payments: Why payment orchestration is becoming a necessity

  • Seamless cross-border payment acceptance via local integrations

Activating region-specific payment options — like GCash in the Philippines, Dana in Indonesia, or UPI in India — is critical to conversion in diverse APAC markets. Orchestration simplifies cross-border payment acceptance with plug-and-play integrations for local methods, cards, BNPL, and bank transfers — helping merchants deliver preferred payment experiences to global travellers.

  • Streamlined omni-channel reconciliation

Travel merchants often juggle payments across direct websites, mobile apps, offline counters, and partner channels — spanning multiple countries and currencies. Orchestration unifies these data flows into one system, enabling automated reconciliation across geographies and touchpoints. This reduces manual effort, speeds up settlements, and ensures financial accuracy at scale.

  • Intelligent routing for improved success rates

By dynamically selecting the optimal payment path for each transaction — based on issuer preferences, network costs, customer geography, or real-time performance data — orchestration platforms reduce failures and false declines. Add in network tokenisation and intelligent retries, and merchants can boost success rates by up to 5–10 per cent.

  • Automation for complex workflows

Travel payments are filled with edge cases — partial cancellations, no-shows, split payments, and refund reversals. Orchestration platforms handle these complexities with automated workflows, reducing manual overhead and ensuring faster, error-free resolutions.

  • Payments as a growth lever

For travel merchants, orchestration platforms offer potential operational benefits when expanding into new markets

By linking payment identity with CRM systems, they also unlock personalised checkout experiences: from loyalty points redemption to upsell opportunities and pricing innovations like “price lock.” This future-proofs the payment infrastructure while turning it into a lever for customer satisfaction and revenue growth.

More importantly, orchestration platforms bring the agility travel companies need to scale internationally, adapt to regulatory shifts, and reduce dependency on multiple partners.

The road ahead

Some companies in APAC have begun exploring orchestration platforms to improve cross-border payment operations to build future-ready payment stacks that can streamline operations, improve payment success rates, and build checkout experiences that convert.

As travel becomes increasingly digital, personalised, and embedded across channels, payments can no longer be treated as an afterthought. They are not just a backend function; they are a strategic layer that drives customer loyalty, conversion, and profitability.

So, is the future of travel payments already here? Not quite. But with orchestration, we now have the blueprint.

Editor’s note: e27 aims to foster thought leadership by publishing views from the community. Share your opinion by submitting an article, video, podcast, or infographic.

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The future of board – C-suite collaboration: From oversight to strategic partnership

Boards in Asia have long been seen primarily as oversight bodies – monitoring management, reviewing reports, and approving major decisions. That model worked in a more stable, predictable era. But the landscape has changed: disruption is constant, stakeholders demand transparency, and the speed of decision-making has accelerated. The future of governance requires boards to move beyond oversight toward genuine strategic partnership with the C-suite.

Boards that embrace this shift strengthen resilience, accelerate innovation, and create sustainable shareholder and stakeholder value.

Why traditional board-management interaction is insufficient

Historically, boards received information from executives and provided approval or challenge. This model has three limitations:

  • Delayed insights: By the time reports reach the board, critical opportunities or risks may have passed.
  • Reactive decision-making: Boards react to what has already occurred rather than shaping strategy in real time.
  • Limited value-add: Directors with deep expertise often spend most of their time reviewing compliance reports rather than influencing strategic decisions.

In today’s environment, this approach undermines agility. Boards must actively engage in forward-looking dialogue that informs, challenges, and guides executive strategy.

The strategic partnership model

The boards that excel in Asia are adopting a collaborative framework while maintaining independence. Key elements include:

  • Structured engagement

Boards and executives should establish clear communication rhythms – monthly strategic briefings, quarterly deep-dives, and scenario workshops. These sessions focus on emerging risks, market opportunities, and strategic options, not just historical performance.

  • Role clarity

While partnership is essential, boundaries must remain clear:

  • The board sets strategic direction, risk appetite, and governance principles.
  • The C-suite executes strategy, manages day-to-day operations, and recommends capital and resource allocation.

Clear delineation prevents overreach and ensures accountability.

  • Joint scenario planning

Boards and executives should co-create scenarios for market disruption, regulatory change, technological innovation, and talent shifts. These exercises allow both parties to anticipate shocks and stress-test assumptions before crises occur.

  • Risk integration

Strategic decisions and risk management must converge. Boards should engage with management to understand enterprise-wide risk, including emerging risks in AI, cybersecurity, climate, and geopolitics. Together, they can align risk appetite with strategic goals.

Also Read: Cybersecurity and data governance in the boardroom: A strategic imperative for Asian boards

Benefits of close board — C-suite collaboration

Boards that partner effectively with executives enjoy several advantages:

  • Faster decision-making: Timely insights from the board accelerate strategy execution.
  • Better risk management: Shared understanding of potential disruptions reduces blind spots.
  • Stronger innovation: Constructive challenge drives creative solutions and identifies new market opportunities.
  • Enhanced organisational resilience: Coordination between governance and execution ensures adaptability under stress.
  • Improved trust and accountability: Clear communication strengthens relationships between directors, executives, and stakeholders.

Collaboration does not dilute independence — when done correctly, it amplifies oversight effectiveness.

Building a collaboration-ready board

To move from oversight to partnership, boards must:

  • Upgrade capabilities: directors need skills in technology, ESG, human capital, and geopolitics to engage meaningfully.
  • Invest in board education: workshops, executive briefings, and site visits ensure directors understand business dynamics and emerging trends.
  • Embed collaboration in culture: encourage open, constructive debate while maintaining respect for executive decision rights.
  • Use data-driven insights: dashboards and scenario modelling allow directors to challenge assumptions based on facts, not intuition.
  • Regularly review collaboration effectiveness: survey executives, assess board contribution to strategy, and adjust engagement rhythms.

Boards that systematically implement these practices strengthen both governance and enterprise performance.

Also Read: From classroom to boardroom: How Singapore’s universities nurture future investment leaders

The future role of the independent director

Aspiring independent directors must recognise that their value lies not just in oversight but in strategic contribution. The best directors:

  • Ask tough questions while fostering a collaborative dialogue
  • Bring cross-industry perspectives and expertise
  • Anticipate emerging risks and opportunities alongside management
  • Help align long-term strategy with operational execution

Independent directors who excel in this collaborative model will become highly sought-after assets on Asian boards navigating uncertainty.

Partnership without compromise

The future of board-C-suite collaboration is not about blurring governance lines. It is about structured, disciplined, and forward-looking engagement. Boards must maintain independence while actively shaping enterprise strategy, risk posture, and long-term value creation.

Boards that successfully transition from passive oversight to strategic partnership will position their companies to thrive in complexity, disruption, and uncertainty – turning governance into a source of competitive advantage.

This article was first published on The Boardroom Edge.

Editor’s note: e27 aims to foster thought leadership by publishing views from the community. Share your opinion by submitting an article, video, podcast, or infographic.

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