Category: FinTech Page 4 of 6

How Your Company Can Harness FinTech

On July 2, 2021

Covid-19 may have slowed down business, but Fintech has achieved double-digit growth in volumes and transaction numbers in the same period. In addition, many companies required employees to work remotely during the pandemic and needed to develop new working methods.

The fintech industry became the choice for businesses that needed to implement digital tools for working at home. Companies found out that Fintech has more uses beyond sorting disruption of traditional business practices. Some teams in accounting and finance found fintech tools can streamline operations, improve productivity and cut costs in these ways.

Simplifying complex processes

Corporations became less productive during the pandemic. Spend reconciliation was one way that finance teams could create efficiencies, but innovation in the area has been slow, and it consumes a lot of labor-intensive time.

Fintech reduces that challenge with tools to automate most of the processes such as:

Three-way matching to approve incoming supplier invoices
Complex and fragmented area travel and expense spend

Fintech tools can automatically link expenditures to individual employees and functions. As a result, they simplify and hasten budget allocations that are ordinarily time-consuming.

A company can harness fintech to provide greater visibility into:

Employee spending
Delivering control
Flagging out of policy expenditures real time
Automated analytics

Another upside is the chat AI that interprets customer questions. Requests increase efficiency by automating financial tasks that involve answering questions about expense processing and invoice payment.

Solution to Fraud

An ACFE survey found that organizations lose 5% of annual revenue to fraud, and detection can take 14 months. A third of all fraud cases occur because organizations lack internal controls.

The pandemic created a perfect environment for fraud as it thrives during recessions and economic instability. Fintech AI and machine learning algorithms in its software control fraud mastering standard patterns of company finance and flag anything unusual or new. The team in charge will notice and review. A/ML has a higher level of sophistication to root out fraud than the rule-based approach. The tools can search and compare data to sense questionable correlations or other irregularities.

The payoff for shifting to newer processes is transformation. Finance practices in an organization will gain the same benefits that the financial sector has gained by adopting Fintech tools. It only requires collaborating with a reliable Fintech provider.

Great Podcasts All About Fintech

By Jacob Parker-Bowles

On June 6, 2021

In FinTech, Jacob Parker-Bowles

Podcasts have become one of the most popular forms of media over the last few years, and for good reason. Practically anyone can make a podcast if they put the energy into it and podcasts can be about pretty much anything. One topic that has plenty of podcasts to check out is FinTech. You can find many podcasts covering the subject, with each one giving a different perspective than the other. Some may discuss news, while others may attempt to teach their listeners all about the subject. Regardless of what you’re looking to listen to, there’s a FinTech podcast out there for everyone. Here are a few great podcasts all about FinTech.

For FinTech’s Sake

Although this podcast is only around 2 years old, it’s easily one of the most popular and high-quality FinTech podcasts out there. Hosted by Zach Anderson Pettet, the show takes a look at what happens at the intersection between finance and technology, exploring the perspectives of founders, investors and, incumbents. Episodes of the show range anywhere from 20 minutes to an hour and a half, so you’ll get plenty of variety as well as many guest hosts.

Breaking Banks

Highly considered to be the #1 FinTech podcast in the world, Breaking Bank is hosted by Brett King, a FinTech expert who has written several books under his belt. The show takes a look at how technology and the way customers behave are bringing about changes and will continue to change banking over the next 10 years, as well as how it’s affected banking over the past 200 years. Every week Brett and his team discuss the most important financial topics and they’re constantly inviting new guests to give their own perspectives so you’ll always have something new to look forward to.

Banking Transformed

Technology has changed banking drastically, and there’s no denying that. But for some of us, that isn’t easy to accept, especially if you’ve been working in banking for a long time. Banking Transformed is hosted by Jim Marous, one of the top 5 banking and fintech influencers in the world. In each episode, Jim takes a deep dive into the impact that digital disruption has had on banking and will continue to have on banking, as well as the leadership and cultural challenges that come with it. Jim’s ultimate goal is to help listeners embrace the change and make the most of it because things will only continue to change with the passage of time.

FinTech 101: What is a Green Bank?

By Jacob Parker-Bowles

On February 8, 2021

In FinTech, Jacob Parker-Bowles

What Is a Green Bank?

You may have heard the term “Green Bank” and wondered what it meant. This short article will explain the term and concept behind it.

Green Banks in a Nutshell
A green bank is a bank that exists for the sole purpose of battling earth climate change by funding projects that may be able to decrease the global carbon emissions and increase the use of alternative and renewable fuels and energy. They tend to support infrastructure spending in wind, solar, and other renewable energy space.

Green Banks: Functional Model
Green banks are not climate charities. Their funding is expected to be paid back with a profit for the bank. Currently, they are supported by some states in the U.S. and also by private funding. Green Banks utilize philanthropic and public funds. They generally fund energy projects that beyond the research stage and “good to go”. The Coalition for Green Capital (CGC) is a nonprofit agency that is deeply involved in advocating for green banks’ continued development.

Where Did the Idea for Green Banks Originate?
The idea for green banks started in 2008 when two entrepreneurial-minded, Ken Berlin and Reed Hundt, came up with the concept as part of the Obama transition team’s plans for promoting cleaner energy changes in US society. A proposal to enact federally supported green banks was attached to the American Clean Energy and Security Act. The concept never made it as legislation at the federal level. Green bank supporters were not daunted. Consequently, green bank advocates persuaded some states to take up the cause.

Green Banks: Some Statics
Currently, there are at least ten states that have at least one green bank. In addition, they are in the early stages of catching on globally as well. They also exist in Australia, the United Kingdom, and Malaysia. Within the U.S., green banks have already been involved in the funneling of some $3 billion in funds for clean-energy projects.

Green Banks: Their Future Development
With the advent of the Biden presidency, green banks may again find a firmer footing at the federal level. Indeed, in December 2020, Mr. Biden proposed the idea of a national green bank. They appear sure to gain more traction internationally as the desire to dampen climate change takes hold.

How to Forge a Career in Fintech

By Jacob Parker-Bowles

On December 24, 2020

In FinTech, Jacob Parker-Bowles

Fintech companies offer innovative solutions to financial problems. They help banks to improve their customer service and be more flexible. Due to the growing popularity of the fintech industry, their jobs can be very rewarding. But what does it take to forge a career in fintech?

Start Small, Learn and Grow

Fintech is a booming industry, meaning that there’s more to be discovered. As a result, there’s a lot of opportunities in this industry. It helps to get into the industry with some experience in the financial sector.

However, it’s not necessary. A person with a law degree can learn on the job and become an expert in no time. Therefore, one shouldn’t procrastinate. If they think this is the industry for them, they should go for it. They can start at the bottom and work their way up.

What’s Fintech All About?

Fintech is an interesting industry because an individual works in two vast industries: technology and finance.

An example of an emerging fintech trend is open banking. Here, the bank allows tech startups to facilitate customer service and transactions through an app. The customer has to consent before using the app. Once the customer agrees, the bank discloses that person’s banking details to the startup.

Any person that works for the bank or startup is already involved in the fintech industry. That’s how easily one can find themselves working in the fintech industry.

Skills Required

There are three sets of skills that are important in the fintech industry: software and hardware engineering, finance, and communication.

A person with coding skills can work in the product development department. Their work will be to code programs or applications that can be used to improve the financial sector. The person with finance skills helps the coders comprehend what the app is supposed to do. The person with communication skills will help to monetize the fintech solution.

Finally, the fintech industry can be very demanding. If one wants to succeed, one has to consider work and personal life. They have to be in perfect balance. Too much work can leave a person feeling exhausted and unmotivated. Therefore, it’s always good to think about one’s health and happiness.

The Ins and Outs of Cryptocurrency Mining

By Jacob Parker-Bowles

On October 30, 2020

In FinTech, Jacob Parker-Bowles

Most people have heard of cryptocurrencies by now. Bitcoin and Ethereum are two prominent examples of this type of currency. Crypto is designed to be secure. It utilizes blockchain technology to create a secure record of transactions. Many people invest in crypto by trading through marketplaces, much like traditional ForEx markets. Of course, it’s also used for transactions. Cryptocurrency has the advantage of being anonymous. It’s very difficult to trace. Famously, this intense focus on security has made it very popular on the dark web.

Cryptocurrency is created through a process called mining. Miners also add new transactions to the ends of blockchains. Working as a cryptocurrency miner requires some seriously powerful computer technology. Traditionally, powerful graphics cards have been needed to conduct an effective cryptocurrency mining operation. Miners also need to be very proficient at math. It’s a competitive field, and being able to solve problems more quickly than other miners is essential to success.

These days, miners tend to work in large teams. It wasn’t always this way. It used to be fairly easy for an individual miner to get set up. In fact, in the beginning, there was really no financial reward for creating new blocks in a chain. The people who did this work simply believed in cryptocurrencies. Over the years, some big investors have been getting involved in the mining space. This includes big high street banks. Individuals have had to form larger groups in the hope of competing with these large groups.

The financial rewards of cryptocurrency mining are sizable. A newly-mined block can be worth up to 12.5 bitcoin. That’s quite a bit of money. Each new block needs to contain data proving that the miner who’s claiming it actually did create it. Essentially, they must show their work in solving the mathematical problems in order to get the reward. This is still a fairly wild marketplace. Japan has started regulating crypto, but only lightly, In other countries, there are still no rules.

It’s expected that this will change in the near future. For one thing, investors risk being burned and losing large sums of money. For another, it’s highly likely that governments will want to start collecting taxes on the capital gains associated with cryptocurrency transactions.

Benefits of FinTech for Small Companies

By Jacob Parker-Bowles

On October 3, 2018

In FinTech, Jacob Parker-Bowles

Financial technology, known as FinTech, is changing the way many small business owners run their companies. Struggling to find financing from lenders and strict regulatory compliance is leading many smaller companies to focus on FinTech. Instead of relying on traditional lenders to help support their companies, many entrepreneurs are now turning to affordable solutions from financial technology companies.

FinTech Product and Service Offerings

FinTech companies offer a range of solutions for small companies. Business owners have access to lending, foreign exchange services, and digital business solutions. Many finance experts agree that the rise of FinTech is not just a passing fancy, but a real shift in the way small business owners generate revenues and profit. A report from the World Economic Forum suggests that FinTech will change the entire business environment.

From invoicing solutions, peer to peer lending, and supply chain financing, FinTech companies are gaining a real market presence in the business world with their low-cost solutions. Additionally, these companies are not hamstrung by the regulations that many traditional banks face.

One of the largest gaps FinTech companies fill is lending solutions. Traditional banks often turn away small business owners seeking smaller loans. By offering so-called “micro-loans,” FinTech companies provide a critical lending solution for smaller companies that need less than $50,000. The Small Business Administration considers any loans of $50,000 or less as “micro-loans.”

Many FinTech companies also offer strategic invoicing and expense solutions. In many cases, small business owners have free access to these solutions using easy to download apps.

Other FinTech Solutions

Lending and tracking invoices are only two of a countless array of solutions offered by FinTech companies. Property management companies can accept payments from tenants using the solutions. Additionally, loans are available to help some of the costs of repairs and security deposits that many residents struggle with while property management companies still receive those funds upfront.

Many experts agree that FinTech for smaller companies is still in its infancy. Adopting FinTech as the primary source of business solutions for entrepreneurs is still a challenge. However, many experts do agree that FinTech companies have found a niche by providing services to smaller companies that largely go unrecognized by bigger banks.

TransferWise — The Revolutionized International Transfer

By Jacob Parker-Bowles

On September 6, 2018

In FinTech, Jacob Parker-Bowles

Anyone who has ever had to deal with international money transfers, whether through ACH, wire transfers or e-Wallets like PayPal, knows well the extreme headaches, frustrations and steep fees that are a seemingly unavoidable part of doing so. Yet, in a globalized world where it is necessary for businesses, entrepreneurs, and freelancers to send and receive payment across the world and in multiple currencies, international payments are often a necessary part of conducting business.

In many cases, however, the costs that businesses and individual entrepreneurs face for maintaining international payment capabilities can be prohibitive. While banks and services like PayPal often advertise low fees for sending money across borders, everyone who has done so knows that the realities are often not as they are promoted.

TransferWise is a UK company that was founded by two entrepreneurs who finally had enough of the deceptive marketing that banks and other services put out about the true cost of international transfers. TransferWise is a system that is designed to eliminate the banks’ and large payment processors’ stranglehold on international money transfers. By holding accounts at hundreds of banks across the globe and striking strategic deals with key financial institutions, TransferWise is able to almost completely eliminate surcharges associated with sending and spending across borders.

TransferWise typically charges a simple, low fee of around .6 percent, plus a flat fee of $1 per transfer. Whereas sending $5,000 from the United States to the United Kingdom through PayPal may cost business account holders upwards of $200 between both the sender and recipient, with TransferWise that same transaction will cost only around $31. It’s easy to see how savings like that can add up to huge boosts to the bottom line of any business that is required to regularly transfer large sums.

TransferWise also has a number of highly unique products, such as real foreign bank account services. TransferWise Clients are able to obtain real account information in dozens of countries, which they can then use as their local business accounts for that area. Having local bank accounts wherever one does business not only provides a patina of international prestige, but it also can eliminate hundreds of dollars in transfer, exchange and service fees on every transaction.

TransferWise is revolutionizing the way that international payments are made.

Are Macs More Secure Than PCs?

By Jacob Parker-Bowles

On August 9, 2018

In FinTech

Apple users sometimes brag about their immunity from viruses. After all, for years, rumors have persisted that Mac computers have better security than Windows PCs. For the most part, those claims are false.

During the first quarter of 2018, a rash of headlines describing Mac OS malware has attracted attention, making some people question Apple’s security. Man-in-the-middle attacks, remote access infections, malware droppers, infected applications, and cryptojacking only begin to tell the story.

So, in response, consumers should now realize that Apple’s operating system has just as many vulnerabilities as Windows. However, everyone should exercise care before drawing incorrect conclusions. After all, both Windows and Mac OS have achieved a high level of security.

Although viruses have become less of a problem for both computing platforms, malware issues continue to persist. Perhaps the parity between PCs and Macs was perfectly illustrated when both platforms required patches to deal with the Meltdown and Spectre flaws.

Despite knowing about the vulnerabilities of their OS, Apple continues to lag behind Microsoft when it comes to dealing with bugs and exploits. Still, Mac users can take some definite steps to mitigate their risks:

Use the official Apple App Store. Users that download from alternate sources risk acquiring apps that have been infected with viruses and malware.

Avoid questionable software. In other words, when Mac users see an app that meets their needs, they should first check to see if a reputable company offers a similar product.

Install updates. Apple periodically releases new MacOS versions that fix bugs and patch vulnerabilities. Simply by installing these updates, users can improve their security.

Avoid public Wi-Fi. Hackers can use the Wi-Fi at libraries and coffee shops to capture data and infect computers. People who must use public Wi-Fi should first connect to a paid VPN service.

Backup your computer. Users should always have multiple computer backups on different types of media. Also, everyone should store at least one copy at an alternate physical location.

Use a security app. Mac users should subscribe to a security application to identify and mitigate threats such as viruses and malware before they become a problem.

In summary, Mac users should realize that they face risks similar to those that Windows users face. In response, they should take the above simple steps to protect themselves and their data.

Unusual Uses For Blockchain Technology

By Jacob Parker-Bowles

On July 3, 2018

In FinTech, Jacob Parker-Bowles

One block at a time, blockchain technology is revolutionizing the way the world sees commerce—as well as a slew of different sectors that one might not even imagine. In a world where many people across various industries are seeing the massive potential of this technology, here are some of the most interesting ways it’s being employed.

Voting

As the global geopolitical situation grows increasingly volatile by the day, many are working on ways to institute blockchain technology into the voting system. Providing a way to keep votes safe, experts believe that blockchain will play a significant role in the future of voting.

Worker Productivity

With many employees now distracted by a plethora of time-sucking devices and applications, blockchain technology designed to monitor their progress is now in the midst of being developed.

Digital Art

For those who are budding O’Keefes and Picassos, it might be time to turn to the blockchain in order to monetize some artwork. With a startup laying out its vision for “crypto collectibles,” it seems more and more likely that the next great artist may be discovered as a result of blockchain technology.

Selling Solar Power

A new startup in Brooklyn is allowing the owners of solar panels to profit from their excess energy by selling it to others who’d like to use it. With no power company in the middle, an app allows neighbors to compensate one another by being green.

Dental Records

As we all know, there is a multitude of very important uses for dental records. Because blockchain provides a secure method of distributing data, one token is taking on the dental industry with a vengeance, promising to allow healthcare professionals to relay important information to one another.

CryptoKitties

If you aren’t in the position to take a pet into your home, think about getting your hands on some CryptoKitties! Powered by the blockchain, this game even offers virtual pet owners the opportunity to breed cats. With prices shooting up to over $100,000 for just one cat, this craze doesn’t seem to be going away anytime soon.

Rewards Programs and Loyalty Points

For those who are sick of having to track their loyalty points with different companies, blockchain technology may offer a convenient and exciting way to keep everything in one place.

How To Avoid Fake ICOs

By Jacob Parker-Bowles

On June 12, 2018

In FinTech, Jacob Parker-Bowles

It’s hard to avoid hearing about cryptocurrencies these days. Amazing return for Bitcoin, Ethereum, Litecoin, and many others tantalize professional and amateur investors alike. Bitcoin’s meteoric rise captured the public’s imagination. Less famously, Ethereum rose from just $8 at the start of 2017 to near $700 in March 2018. Such returns are an investor’s dream come true.

With all the publicity, many firms have turned to initial coin offerings (ICOs) to raise capital. ICOs are like cryptocurrencies, but they are issued by private companies in the same way startup corporations issue stock. The concept of the ICO is simple. Investors get a piece of the company by buying the coins the company issues. Theoretically, if the company is successful, the coin appreciates in value. In this way, ICOs work much like traditional initial public offerings of stock.

Except stocks are highly regulated. ICOs are more of a wild west type of investment. That being the case, many are cautious about ICOs. Due diligence is just as important, if not more important, in selecting an ICO as it is in picking a stock.

How to avoid scams

As a wild west investment, scams are out there. Fake ICOs have popped up. As Cryptocompare explains, there are several ways to spot a fake.

Be on the lookout for ICOs touting unrealistic expectations. An ICO that promises to fix global warming is a scam, as are ones that offer out-of-this-world price predictions. Also, be wary of any ICO promoters who use a salad of buzzwords that offer no substance. Also, any legitimate ICO will provide a detailed white paper. If the white paper is just a rehash of buzzwords and unrealistic expectations, you can bet you are looking at a fake ICO.

Email scams

Darryn Pollock warns against phony emails purporting to be from crypto wallet providers. These emails attempt to entice users into providing their private keys, allowing the scammers to steal their cryptocurrency.

Look out for phony profiles

ICO investor Ankit Kumar recommends checking on the profiles of the ICO’s founders and advisers. Often, scam ICOs will put up fake names and fake biographies. Check these names against all the research tools at your disposal, such as LinkedIn, Facebook, Twitter, and Instagram. Are these real people? If they are, you should be able to cross reference them.