By Hiba Chamas, Business Development Director, RTGS.global
Throughout my career, I have had the privilege of living and working in different cultures and communities around the world, offering valuable insights into the diverse tapestry of global business cultures.
This journey has taught me a crucial lesson: understanding the way people operate is the cornerstone of building successful business relationships.
In my current role working in cross-border payments, I can’t help but draw some parallels between the industry and navigating cultural differences and working styles – just as cross-border payments must traverse different currencies, regulations and systems, working effectively across cultures requires adaptability, understanding and respect for the distinct values and customs of each region.
As financial institutions and individuals increasingly collaborate across borders, they are equally confronted with the complex challenges of navigating the unique sets of values, customs, and business practices that each culture presents. You might face a culture shock at first, but with patience, openness and a willingness to learn, these differences can become opportunities for growth and innovation.
Cultural nuances in the decision-making process
One of the most significant variations I’ve observed is in decision-making processes.
In the Middle East, for instance, hierarchy and authority play a pivotal role. Decisions often cascade down from the top, and respect for authority is deeply ingrained in the culture. This stands in stark contrast to my experiences in the Nordic region, where decision-making tends to be more consensus-driven, involving input from various levels of the organisation.
Latin America, in my experience, shares some similarities with the Middle East in this regard. Success in these regions often hinges on identifying and engaging key decision-makers in senior positions, as well as building trust and long-term relationships.
Recognizing and adapting to these diverse decision-making styles is crucial for navigating the corporate landscape effectively as it enables professionals to tailor their approach and maximise their influence in each unique cultural context.
Diverse work cultures and business etiquette
Beyond decision-making, work culture and business etiquette vary greatly across regions.
Time management, for example, is approached differently around the world. In Latin America and parts of Africa, I’ve encountered a more relaxed attitude towards time, with flexibility and fluidity highly valued. This contrasts sharply with the emphasis on work-life balance I’ve seen in Southern Europe and the Netherlands, where leisure time and family commitments are prioritised, leading to more rigid deadline structures. The United States, on the other hand, often expects long hours and high dedication to work.
Another crucial aspect of working across cultures is understanding and adapting to different etiquette norms. In the Middle East, certain gestures, such as showing the soles of one’s feet or shoes, can be seen as highly disrespectful. When meeting new partners in this region, it is important to engage in small talk and build trust before diving into business matters.
Similarly, in Muslim countries, respecting religious customs is of utmost importance. Greeting partners appropriately during Eid celebrations and scheduling meetings around prayer times and Ramadan demonstrates cultural awareness and helps foster strong relationships.
Cultivating a global mindset
The globalisation of finance, driven by technological advancements and the growth of cross-border trade, has made it easier than ever for institutions to expand their reach across multiple countries and continents. However, despite this interconnectedness, many institutions and individuals still struggle to fully adapt to and embrace cultural differences. This failure to recognise and respect cultural nuances can lead to miscommunications, misunderstandings, and ultimately hinder progress in a global economy that demands seamless cooperation.
To thrive in this environment, cultivating a global mindset is vital. This involves embracing diversity, seeking to understand different perspectives, and adapting to local norms. By doing so, banking professionals and financial institutions can build the trust and rapport necessary for seamless transactions. It’s not just about understanding the cultural nuances of decision-making, work culture, and business etiquette; it’s about actively engaging with partners and clients in a way that demonstrates respect for their unique cultural context.
As the landscape of global finance continues to evolve, understanding and respecting cultural nuances is not just beneficial—it’s essential. Developing a global mindset and adapting to diverse cultural contexts allows professionals and organisations to build stronger relationships, facilitate smoother transactions, and ultimately thrive in the international marketplace. The challenges of working across cultures, much like those in cross-border payments, can be overcome with patience, openness, and a willingness to learn, transforming potential obstacles into opportunities for growth and innovation.
Your article on cultural nuances in decision-making and business etiquette is spot-on. I’ve also observed significant variations in decision-making processes across regions – especially in Asia, when it comes to even simple things like Card Chargebacks.
One thing I’d add is the impact of globalisation on cultural adaptation. As global finance expands, education and evolution is running at a rate far greater than the typical human is designed to handle – so Mental Fitness needs to play a primary part. Cultivating a global mindset, embracing diversity, seeking to understand different perspectives, and demonstrating cultural respect is crucial – but if the minds of the World aren’t ready – resistance is inevitable.
Great article – thanks Hiba!