As individuals, especially workers we sometimes get windfall incomes in forms of bonuses, profit shares, etc. However, a lot of the time the temptation is to spend the money on acquiring a new car, new clothes, shoes, new phones, among other things. While acquiring these things in themselves is not a bad idea, it is wiser to use windfall incomes for things that will have long term positive impart on our lives especially because we do not have a full grabs of what tomorrow will bring.
For workers just starting off or in mid level careers, it is really important not to squander windfall incomes on non-essentials.
Many years ago during the mid 2000s, when the banking and telecommunication really became big industries, many banks and telecommunication companies paid bonuses and profit shares to their staff on a yearly basis. Most new staff and mid level staff squandered their money on buying cars, renting new apartments in high brow areas and changing their wardrobes almost every 3 months. Nite clubs were packed every Friday night with
Nowadays, liquid cash is an essential thing. It does not really matter if you are the single heir to a very large estate. Getting it encashed would take you a long time after the descendant has deceased and after all the formal processing has been done. The best solution to this problem is the inheritance advance concept through which the heir to the estate gets the cash right way without any delay. Through this process, the heir gets the advance amount from the distributed amount without having to wait for a long period of time.
An inheritance advance policy gives the heir an option to choose whether he wants the entire amount or wants them in parts in a matter of just three days. The best thing about this feature is that you don’t have to worry about any hidden cost or additional charges for availing this facility. Since this is not any type of a loan there are no approvals required and the heir does not have to worry about repayments. Only the probate or the processing fees
There was a time when people did not feel at ease with paying their bills online. Most of them find it hard to trust the security of transacting on the web, and thought they have no control over their money with online bill payment. When you submit your checking account details to your insurance company or utilities provider, there is a risk that you could be overbilled or that your identity could get stolen. It seemed safer to write checks and stamp envelopes, which is why many people stick to that practice.
However, this is no longer the case. More individuals are paying almost all bills you can imagine online – like credit cards, loans, mortgages, rent, tuition and utilities, to name a few.
Why then should you choose to pay your bills over the Internet? As a start, you will be able to save on time as well as costs of postage and late payment charges. Also, paying online is safer than through snail-mail. Your personal details are more prone to risks like
Brand is a very important factor in any business and no matter how exposed your business is. Over the recent years, there is a need for the financial institutions to put a balance on the digital demands and the demands of their physical operations. This is more so because the digital platforms have increasingly put the industry power to the hands of the consumers. With a lot of variety of financial institutions available, it takes time before a consumer can settle for the bank that will improve their experience. A lot of customers have been changing from one bank to anotherin search of a bank that they would relate with. To ease the consumer’s decision making, banks can concentrate on building their brand. Below are some if the major ways that the banks can build the brand.
I. You should seek to build a brand that the three major stake holders can relate.
This is a major way towards gaining the brand success. Likewise, it is a factor that if overlooked can cause a
Over the years, financial trading has undergone a transition and this has only enhanced the overall user experience. This transition could be traced with the change from manual to electronic and finally automated trading. These changes were brought about with the help of various algorithms that were modified in the last couple of decades. The increased use of technology has only helped in using electronic trading solutions in the easiest possible way. However, technology also has the tendency to disrupt trends and yet bring in exponential growth in the latest business segments that are created by the new capital markets. However, all these reflect changing trends in the capital market, so, let us take a closer look at the flow of the future trends.
• Open Source Technological Platforms – The fundamental fact is that technological platforms within the capital market have very similar functions leading to significant growth in the market. They have the ability to leverage off open source technologies and also develop technology solutions for the financial markets in the open source fashion. All this leads to lower cost involved in developing platforms, deploying as well as using the much needed financial services.
With mobile and online banking becoming increasingly popular banking institutions, especially credit unions, are advocating for branch design strategies with contemporary concepts and financial technology that is pointed at improving the member experience without losing that all important human touch.
The need for the personal touch in the financial services industry continues to be met by credit unions. As members continue this quest for digital channels and the old banking model changes into a retail model, the design of the branch must conform. Banking can no longer occur in a fortress style environment. Technology has inspired consumers to take charge of their finances as they shop online for the best deal. So, credit unions must capture the opportunity to develop and nurture an environment for their members that demonstrates the “people helping people” values and beliefs. This high tech, high touch atmosphere is the branch of the future.
Credit unions must reinvent themselves and create value and a reason why members want to come to the physical location. It is important to create an interactive environment and redefine the behaviors that should be occurring in the branch and understand that the new design must support person-to-person
If there is someone that has died and has left an inheritance for you, then there is a legal procedure that has to be carried out, which also takes quite a bit of time. However, there can also be expenditures that you might need to take care of, and for that, you’d need cash early on. To assist you in such a situation, there are a few ways by which you can get your inheritance faster.
Some of the things that you will be required to do so as to get an advance on your inheritance are –
• Check if you can assign the inheritance – In a lot of cases, what happens is that you can assign your inheritance or transfer it to a lender in exchange for money. So, first and foremost, you need to check with a lawyer and see if you are allowed to do that or not. If you are, then you can easily go for this option and get your money instead of waiting for all the legal formalities to get over.
• Ensure that you qualify for an advance – The sum of your inheritance must qualify
It takes years to gather a handsome amount of money, and if it is not handled properly, your most prized possession would soon escape from your hands like sand. This is the reason why people go for financial planning. It gives you a great sense of satisfaction when you know that your money is in safe hands and is being handled with utmost care.
However, not many people are aware of the process involved in financial planning. Based on your financial position, it is very important to go ahead with personal planning because if you don’t start planning well in advance, then you might face several challenges in the future.
Financial advisors suggest all individuals follow these six basic key principles for financial planning.
• Analyse your current financial status: To be able to plan for future you should first be very confident about your current financial position. Make a checklist of all the assets and liabilities and your income and expenditure. Having this information at hand, you would be in a clear position to understand how you can achieve your financial goals. Your total financial worth would help you to determine the ways to
Agents in the financial services sector play a crucial role in sustaining the business. Financial services encompass broad sub verticals like – banking, insurance, and investment funds companies where their crucial role like building relationships and getting business volumes cannot be underestimated.
Personalized sales are the approach set by agents and brokers for decades. They carry a lot of information on products, markets, and prices. But after the IoT, big data and analytics came to the center stage, it became imperative for agents and brokers to stay relevant. The mobile customers supported by mobile workforce of businesses are posing existential threats to agents and brokers. Many may wonder – is this the end of the road for brokers and agents?
Financial services honchos may consider eliminating the role of agents attracting new prospects with reduced premium or discounts. But wait a bit more before you send the execution order as they have the firepower still. It is into this area focused study is required.
Can Agents Stay Relevant?
Now the question before us is, are agents and brokers relevant? First of all they have time tested relationship with a large number of accounts whom
Security intelligence is the data related to safeguarding an organization from any outside and inside threats along with the processes, and policies developed to accumulate and evaluate the information.
It can also be referred to as the actual collection, standardization, and analysis of the data created by users, applications, and structures that influence the IT security and risk position of a business.
On a daily basis, information flows in organizations for the senior management to make smart decisions. The various stakeholders (employees, customers, contractors) are interfaced through various technologies.
However, the technological infrastructure can also result in serious security issues. The probable areas of intrusion are unlimited. Security experts and business leaders are trying to find an answer to the question – Is it feasible to have a robust security in an increasingly interfaced environment?
Though the answer is yes, it needs a radical transformation in processes and practices encompassing the financial services sector. The focus is not only on IT. Robust security facilitates a positive customer experience.
Cybercrime and Profitability
Financial institutions are at great risk since they are perceived to be an easy target for cybercriminals. According to a survey
Why are some people more likely to expose themselves to risk than others? Why are some people completely risk-adverse? How does the average person behave in response to risk – and why?
As neuroscience tells us more about the workings of the brain, and how we make decisions, these are questions on the lips of many a business leader – especially (but certainly not limited to) those in financial and insurance marketplaces.
If we were all able to respond successfully to risk, everyone would retire with enough money and we would have fewer accidents for starters. The world would be a lot more stable place if everyone managed risk perfectly – but we all know that’s not the case.
Early risk models
Going back 70 years, the first models to look at risk behaviour were centred around the rather limited theory of ‘expected utility’: this says that people value a possible outcome by multiplying the probability that something happens by the amount they would like it to happen.
However, in the real world, this theory was found to be wanting. Subsequently, Daniel Kahneman’s creation of prospect theory helped him win a Nobel Prize.
To make the correct judgement, you need the essential insights, and this is what it means by “qualify”. If you are not selling the product or service to the correct lead, you will end up wasting a lot of money, time, energy and resources. So what you should do to qualify leads and prospects? How will you know whether a prospect is fit for your offer? Will the lead ultimately lead to a sales opportunity?
You should invest your money and time only after qualifying someone. Only then you should start selling the service or product to the prospect.
If you are not quite experienced you will jump at the given opportunity without properly studying the prospect. What happens here is you are trying to selling something on an assumption without the proper background check. It may or may not culminate in sales. Only mindless salespeople will do this kind of marketing and they will end up losing their energy and time chasing wrong leads.
Instead of talking all the time, try to listen to your prospect. Then you will understand whether he/she is a qualified prospect. If you listen to them your chances of
Why do so many businesses fail to make profits and achieve their financial goals? The answer is simple because many business owners simply ignore one or more of the 5 keys to financial success. Many businesses are making sales but are not profitable. Learn how to fortify your business model and set your company up for success. Developing a financial business model provides a clear picture of your company’s financial history as well as your company’s financial future. Working from a financial business model will help to prepare your company to make better decisions for the company in the future. And analyzing your finances on a regular basis will provide you with the financial success you are seeking to achieve. Get ready to gain more flexibility and financial freedom in your company with the keys to success.
Key #1) Don’t Go It Alone
Mismanagement of finances is not reserved for start-up companies but for all businesses. Many business owners are able to produce and sell their products and services but are not able to manage their finances. If you are not able to determine where you have been you will not know where you are going. Accountants
As of now, there are numerous services company owners need to opt for in order to make their business better and their ventures easier. With these solutions, business owners can also increase their profits. These third-party services can also provide you with wonderful benefits which can help your company achieve your goals. So, in order to accomplish financial tasks companies need, it is ideal to partner with the best banks and open a business account.
Surely, there are numerous banks that offer reliable services for their clients. However, you can distinguish which bank is best if you want to open a business account by knowing the benefits it can provide. Below are some of the features you need to look for.
Help you improve your businesses’ financial status
One of the benefits of opening a business account in reliable banks is you can easily improve your business’ financial status. This is essential to entice companies to partner or to work with you. Unfortunately, not having sufficient finances can affect your chances. By opening a business account, banks can help you attain the documentation and finances you need which can help improve your reputation.
The ease of making financial transactions and financial services in general, had first been revolutionised when telegraph companies introduced wire transfers. But with the coming of new age financial services like Bitcoin and Ripple, it is the time we address the question of what the future holds for the financial services of the world.
Traditional Wire Transfers
Let us begin by first taking a look at how things have been going on for these past 150 years since wire transfers were first introduced. Transferring funds using a wire transfer method via a bank is not a single step process but a multi-step process. It is like this:
- The sender approaches his or her bank and orders the transfer of funds to an account. Unique codes like BIC and IBAN codes are provided to the bank by the sender so that the bank knows exactly where the funds need to be transferred.
- The sender’s bank contacts the receiver’s bank by sending a message through a security system, such as Fedwire or SWIFT, signalling it that a transfer needs to be made. The receiver’s bank receives this message, which includes settlement instructions as well, and then asks the
The study of human behaviour, which has traditionally come under the umbrella of psychology, would seem to have little relationship with economics.
But, as we learn more about how the brain works through the dual disciplines of neuroscience and psychology, there is an increasing marriage with the field of economics, in order to better understand how people make financial decisions.
This has evolved considerably in recent years and is an emergent field that deserves a little introduction and explanation.
The traditional view of economics and financial decision-making
It is sometimes forgotten in economics that the field is meant to be about the behaviour of people when making financial decisions.
The traditional economist’s view is that the world is populated by unemotional, logical, decision makers, who always think rationally in drawing their conclusions. This view is underpinned by the understanding that human behaviour displays three key traits: unbounded rationality, unbounded willpower, and unbounded selfishness.
This has always flown in the face of the findings of cognitive and social psychologists, who questioned these assumptions as far back as the 1950s.
With the rise of behavioural neuroscience since the 1980s (especially Kahneman’s work) providing
Information is both beautiful and deadly! Today, the online marketplace runs on analytics and data but in the wrong hands, it could turn into the worst of disasters. According to a new study, cybercriminals are costing more than $575 billion every year and this could include your financial data! As the world is speeding into a world of internet and our future infrastructure depending on virtual intelligence, we are more in the risk of exposing our personal information. Cyber terrorists and hacktivists have become regular topics of discussion and the breaches they have been able to make are worth getting concerned of. It’s not just that our bank accounts are at risk but hackers could create a global crisis. We have already seen the power when hackers reveal how all of Manhattan’s traffic signals can be turned green or a US military drone be rerouted for an unidentified target!
Online crimes are estimated to be about 0.8% of the world’s total GDP and this isn’t a small number. In January 2016, hackers stole approximately $54.5 million from FACC’s (US Aerospace manufacturer) accounts. Given that such a large corporation was compromised, you can never be sure enough if
In the United States, Invoice Factoring is often perceived as the “financing option of last resort.” In this article I make the case that Invoice Factoring should be the first option for a growing business. Debt and Equity Financing are options for different circumstances.
Two Key Inflection Points in the Business Life Cycle
Inflection Point One: A New Business. When a business is less than three years old, options for capital access are limited. Debt financing sources look for historical revenue numbers that show the capacity to service the debt. A new business doesn’t have that history. That makes the risk on debt financing very high and greatly limits the number of debt financing sources available.
As for equity financing, Equity Investment dollars almost always come for a piece of the pie. The younger, less proven the company, the higher the percentage of equity that may need to be sold away. The business owner must decide how much of his or her company (and therefore control) they are willing to give up.
Invoice Factoring, on the other hand, is an asset based transaction. It is literally the sale of a financial instrument. That instrument
Diversification today most executives and boards realize how difficult it is to add value to businesses that aren’t connected to each other in some way. Yet too many executives still believe that diversifying into unrelated industries reduces risks for investors or that diversified businesses can better allocate capital across businesses than the market does-without regard to the skills needed to achieve these goals. Because few have such skills, diversification instead often caps the upside potential for shareholders but doesn’t limit the downside risk. As managers contemplate moves to diversify, they would do well to remember that in practice, the best-performing conglomerates in the United States and in other developed markets do well not because they’re diversified but because they’re the best owners, even of businesses outside their core industries.
Diversification is a form of corporate strategy whereby a company seeks to increase profitability through greater sales volume obtained from new products and/ or new markets. Diversification can occur either at the business unit level or at the corporate level. At the business unit level, it is most likely to expand into a new segment of an industry that the business is already in.
Balance Sheet, which tells us about the financial position of a company, is one of the most significant financial statements for analyzing the solvency and liquidity position of any company. Often it has been noticed that in order to curtail costs of an organization, the main focus is on Income statement or profit and loss account, but in reality, a tight management of balance sheet results in surplus Cash and provides a good investment return to the shareholders. Inefficient balance Sheet management or Asset – Liability management often shows inefficiency and ineffectiveness on part of management. It shows that there is either over or underutilization of capital and unproductive fixed assets in the company which is resulting in tying up of capital in low-value projects. It might further reflect a poor liquidity position of the company and show that it does to have enough funds the meet its short-term liabilities. By managing the following key areas a company can liberate cash and put it in productive ventures.
1. Capital Structure-Capital Structure of a company shows the way finance has been raised in a company. A company can raise money through internal or external sources. A highly levered