Empowering shareholders in the banking sector is a multifaceted endeavor that involves fostering transparency, enhancing corporate governance, and promoting shareholder activism. These elements collectively contribute to a robust and accountable financial ecosystem, ensuring that shareholders are not just passive investors but active participants in shaping the direction and performance of banks. Transparency forms the bedrock of shareholder empowerment. Banks must provide clear and comprehensive information about their financial health, risk management practices, and strategic initiatives. This includes regular financial disclosures, risk assessments, and updates on key performance indicators. By keeping shareholders informed, banks enable them to make well-informed investment decisions and hold management accountable for their actions. Corporate governance plays a pivotal role in empowering shareholders by establishing clear roles, responsibilities, and accountability mechanisms within banks.

Strong governance frameworks encompass board independence, effective risk oversight, and transparent decision-making processes. Independent directors bring diverse expertise and perspectives to the boardroom, ensuring that shareholder interests are represented and safeguarded. Moreover, robust risk management practices, including stress testing and internal controls, mitigate risks and enhance shareholder value. Shareholder activism serves as a catalyst for change and improvement within the banking sector. Activist shareholders leverage their ownership stakes to advocate for reforms, such as strategic realignment, capital allocation optimization, or executive compensation changes. While activism can sometimes be contentious, it fosters constructive dialogue between shareholders and management, leading to value creation and long-term sustainability. Empowering shareholders also involves facilitating shareholder engagement and participation in corporate decision-making.

Annual general meetings AGMs provide a platform for shareholders to voice their concerns, ask questions, and vote on important matters, such as board appointments, executive compensation, and dividend policies.  Additionally, shareholder outreach programs, Andrea Orcel Unicredit investor forums, and proxy advisory services enhance communication and collaboration between banks and their shareholders. Furthermore, technological advancements have revolutionized shareholder engagement through digital platforms and online voting systems. Shareholders can now access real-time information, participate in virtual meetings, and cast their votes remotely, thereby increasing convenience and accessibility. Empowering shareholders in the banking sector is a dynamic process that requires continuous efforts to enhance transparency, strengthen corporate governance, promote shareholder activism, and facilitate meaningful shareholder engagement. By empowering shareholders, banks foster trust, accountability, and long-term value creation, ultimately contributing to a resilient and sustainable financial system.