Frédéric Genta: “We Have a Large Community of IT Investors in Monaco”

Country Chief Digital Officer Frédéric Genta is in charge of the Principality’s digital transition and attractiveness. For him, the two go hand in hand, and Monaco is getting closer to being “a funding nation of progress”.

To qualify the Administration, we often speak of a mammoth difficult to reform. Is it difficult to digitize the public sector of a country? What conclusions do you draw from the action taken over the past 5 years?

The user is at the heart of the concerns of the State and the evolution of public policies. We aim for excellence in our Public Service, and it is in this perspective that we rely on those who make up the Monegasque Administration, i.e. nearly 5,000 civil servants and State agents. The advantage of our size is that we can talk to them directly and make them more aware of the issues.
In Monaco, the digital transformation of public services is based on people and the choice for the user to interact with the State. Digital is not used to constrain but to provide a service in addition to the human aspect embodied by our physical Public Service.

Should the teams be on board?

The most complex in the transformation is the human aspect, not the technology. In this context, digital is above all a change in habits and relationships with others. We have made the bet to invest in three pillars: digitalisation, training and inclusion. Each element of this triptych must be present for the transformation to take place. Without prior training or without inclusion throughout the user’s life, we risk creating empty shells. Our strategy is bearing fruit because more than 80% of procedures are now carried out online.

How does this impact the state budget?

In March 2018, the Principality had few government digital services. As said before, where there were 100 requests in physical channels, today there are only 20. The digitized procedures save a lot of time for civil servants and state agents by eliminating repetitive tasks and by allowing them to bring value to users through advice and exchanges.

In the private sector, which sector do you think is the most digitized?

First of all, we must remember a fundamental truth, digital affects all sectors of the economy because digital affects all customers. It is deeply involved in our relationship to businesses, real estate and even our finances. It is therefore not surprising to see that the entire Monegasque economy has begun this profound change. This is confirmed by the allocations of the Blue Fund which concerns all sectors. For example, the entire real estate value chain is concerned: architects, developers, construction companies, agents, etc. We have had many requests from commerce (e-commerce, online to store), but also from finance to put in place the appropriate tools necessary for teleworking or data security. Whatever the sector of activity, three needs clearly emerge: the security and sovereignty of data linked to the sovereign Cloud, commercial development for prospects and sales (websites, virtual visits of apartments, etc.), and finally the increase in productivity (accounting software, human resources, training of teams for telecommuting, etc.). The interest is real: The Blue Fund has financed 680 files and generated 400 jobs. One euro invested represents 8 euros of additional turnover for companies. In addition to all that this brings to the State in terms of ISB, VAT and social charges. In summary, in addition to being essential, digital transformation is extremely profitable.

Is there a will from the public authorities to push Proptech?

Exactly. In 2021, the Principality of Monaco has decided to support the PropTech Global Trend Barometer, published by the Prince’s Government in collaboration with ESCP Business School. This barometer is at the intersection of two essential subjects for the Principality: real estate, which represents 20% of Monegasque GDP, and is therefore a strategic sector for Monaco, and digital, which is one of the major levers for the economic development and the attractiveness of the Principality. This barometer is the cornerstone of Monegasque ambition to become a world center for Real Estate Tech.
Concretely, we approach Proptech with three axes: investment in connection with our banks and family offices, the incorporation of start-ups into the Monegasque ecosystem (promoters and agencies) and the added value generated for our economy and our public finances. This annual meeting allows Monegasque companies to have access to potential partners, academics and investors.

Have you ever felt an influx of investors in the Tech field?

We have in Monaco a large community of investors and investment structures in the field of technology. This is a huge asset of attractiveness for high-growth companies and positions the Principality in this ecosystem. Being in charge of attractiveness and digital transition, I meet this community of residents and realize the potential that this represents. Prince Albert II spoke in 2019 of “Funding nation of progress” for the Principality, which must categorically reconcile investment and impact. We cannot, in a reasonable way, dissociate the investment from the environmental and social consequences that it constitutes. Every action must be responsible and we must ensure that Monaco is exemplary.

Will this be one of the key measures of the plan for the Principality’s attractiveness?

Exactly. This plan for attractiveness is designed to attract more investors and active residents to the Principality, in particular people who manage investment funds. It is also a question of mobilizing the community of local residents and investors already established in Monaco as described below. Finally, we want to make life easier for economic players by simplifying our law and our procedures to generate growth.

How does this community feel about Monegasque attractiveness?

Monaco is more and more attractive but there is strong competition from Singapore, Switzerland or Dubai, in the global context that we all know. Monaco is one of the popular destinations but often our value is misunderstood or caricatured. It is a question of making the exceptional assets of Monaco better known and of ensuring that our structures and our management always reconcile essential security and necessary attractiveness.