Strong together: the power of (European) solidarity in times of tensions and uncertainty

In an age where technology is developing at lightning speed, where a trade war is creating uncertainty and geopolitical tensions are increasingly palpable, cooperation and solidarity within Europe is becoming essential. The continent clearly distinguishes itself from superpowers such as the United States and China with its own unique approach to ethics, artificial intelligence (AI) and corporate social responsibility.

The European pattern of values versus Anglo-Saxon individualism

Fundamental differences between Europe and the Anglo-Saxon world are rooted in values and ethics. In America, there is a strong emphasis on individualism and autonomy, stemming from Calvinist traditions that put individuality at the centre. There, the individual is mainly seen as someone who must constantly prove himself to society and other individuals. In Europe, by contrast, the individual is central as an integral part of society, with social connectedness and solidarity being core values.

The European value pattern currently contrasts sharply with what is going on in the United States, where the conservative bloc is engaged in a fierce battle with the 'woke' idea. The White House is all too keen to cut off funding for programmes around diversity, inclusion, equality, transgender issues and the environment. About a thousand transgender people, for example, may have to leave the US military, while conflict with 'woke' universities such as Harvard is on the rocks.

Europe's unique take on AI

The differences also manifest themselves strongly in how, for example, AI is applied and experienced. While in the United States AI is mainly used to direct and influence consumers - think personalised recommendations via Spotify or Netflix - China uses the technology mainly to control and discipline citizens.

Europe sees this completely differently and deliberately chooses a third way. For Europe, a well-functioning society means a society that is social and just. AI is seen here as a powerful tool to strengthen the social fabric. This translates into regulations such as the GDPR, where privacy and protection of the individual are central, and AI is used as a tool for social welfare and improvement.

Socially just models as a European cornerstone

Socially just models such as the German Rhineland model and the Dutch Polder model are typical for Europe. These models strongly emphasise the importance of accessible education, healthcare and caring for each other. Core values such as cooperation, long-term thinking and sustainability are crucial here. The free market is seen as a powerful engine for growth and prosperity, although it must be properly regulated and corrected to ensure social justice.

ESG: obligation or strategic opportunity?

Environmental, social and governance (ESG) policies are a clear example of how Europe wants to differentiate itself in terms of sustainability and ethics. While some companies perceive ESG rules mainly as an obligation or regulatory burden, more and more companies see a strategic opportunity in this. By focusing on ESG, companies not only realise social benefits, but often also a higher financial performance and a better reputation. Several studies have now proven this.

Companies are also making increasingly conscious choices about who they do business with. Several sectors (such as the banking sector, for example) have an obligation to carry out certain checks, but in addition, there are more and more companies that have no obligations and do take them into account. Even if only out of self-interest: reputation. Their choices are driven in part by geopolitical developments such as conflicts in Ukraine and Israel or by distrust of Chinese companies, for example, with ethical considerations weighing more heavily than ever. Can organisations still afford to do business with a company from country X or Y?

Compliance and anti-fraud: collaboration is key

Compliance and anti-fraud are an area where collaboration between companies and banks has become crucial. Banks are confronted with increasingly complex regulations and higher expectations regarding the management of sanctions lists and the prevention of financial crime. Although AI and automation are important tools in this, human control remains mandatory. As a result, compliance officers – who are difficult to find – are under increasing pressure. This requires innovative solutions to reduce the workload and increase efficiency.

Many banks still work with classic systems and are not agile enough to respond quickly to new regulations. And yet they can catch up. But to do so, they first must get their processes in order, then automate them in technologies to capture data and finally use the insights to get started in a segmented way. In this way, they can quickly divide their controls into 'low-medium-high' risk classes.

Smart ecosystems: sharing sensitive data securely

Collaboration offers clear advantages here. Banks have a lot of data but can only become truly powerful if they can add (complementary) insights from other institutions. And that is difficult. However, by using smart systems for data anonymisation and the creation of shared ecosystems, banks and companies can exchange sensitive information according to compliance rules and in a perfectly secure environment, without revealing their trade secrets. In this way, they can act jointly and proactively against fraud and crime, without damaging competitive positions. That is also what Europe is aiming for. After all, it is a social problem that must be tackled together.

And so, we come back to the fundamental European values: together, we are much stronger than any individual member or company separately.