The Taiwan Banker

When studying macroeconomics, it is easy to get distracted by differences between various schools of thought, each claiming the previous one cannot explain key phenomena, later to be replaced by another attempting to unify the differences, sometimes even declaring a “paradigm shift.” With experience, however, it becomes clear that economic systems cannot transition overnight without friction. Economies are driven by people, and senior stakeholders tend to adopt new ideas more slowly. Thus, despite controlling greater resources, any claimed paradigm shift requires time for their understanding and adaptation. Without this process, change cannot succeed. A personal example illustrates this point. While teaching university students to use R for financial data analysis, I emphasized hands-on learning and live demonstrations. As more students began using MacBooks, I initially relied on a Windows system and needed assistance to demonstrate solutions. At age 42, however, I decided to switch to a MacBook, working my way through shortcuts, gestures, and compatibility issues from a younger colleague. It took about six months to fully transition my workflow. With sufficient motivation, resources, and a willingness to learn through trial and error, I was eventually able to apply the new system effectively in my teaching. At TABF, mid-level bank managers often express frustration that senior executives lack understanding of new technologies, underestimate the importance of IT infrastructure, and focus narrowly on financial metrics rather than talent investment. Such concerns arise across courses in IT, cybersecurity, and wealth management. While executive education can help, real change must come from internal alignment and consensus-building. Mid-level managers need to seize opportunities to clearly communicate system risks, potential solutions, and associated costs to decision-makers – whether triggered by external events or internal challenges. Building empathy and trust is critical, enabling executives to advocate for change at the board level. This requires incremental progress and accumulated trust among all parties before undertaking core system transformation. In addition to several articles offering diverse perspectives exploring the financial risks and policy implications of geopolitical tensions in the Middle East, therefore, this issue of the Taiwan Banker also examines how banks can leverage the rise of AI to empower talent, secure executive and board support, and address the challenges and risks of core system upgrades. I encourage decision-makers to engage with these insights and translate AI-driven opportunities into tangible outcomes.