Month: July 2020

Banking

7 Mistakes to Avoid When Opening a Business Bank Account

Author ByCFI.co

When you’ve just begun a new business venture, one of the first things that you’re advised to do is open up a business account for the company. But, when you’re opening a business bank account, there are somethings that you’re going to want to avoid at all costs.

What should be avoided? We’re glad you asked because in this article we’re going to give you a list of things that you should try to avoid doing at all costs.

1. Incomplete Account Information

When you attend your account opening appointment, ensure that you’ve got all the documentation you need. And if you’re not sure if the document is required it’s best to bring it along just in case.

Before attending your meeting when setting up the appointment check with the bank about what documentation is required. This will reduce the likelihood that you don’t have all the information needed to begin setting up your account.

Having missing information could mean having to reschedule your appointment altogether.

2. Using Your SSN Instead of FEIN

If you’re not aware of what these initials stand for the first is your social security number and the next one is your federal employer identification number. When you arrive for your meeting ensure that the number you place on your account is your FEIN and not your SSN.

Many business owners that are just starting out make the mistake of placing their SSN on the account, which can prove problematic in the future especially when it’s time to fill out tax documents for your business taxes.

Anything that requires a number for your business should almost always feature the FEIN that was assigned to you when you filled out the paperwork to register your company as an LLC.

3. Having One Account

Some people may think that there’s no way they’re going to mix up the money that’s deposited into their account if they keep one account for personal and business needs. But, the reason that it’s recommended you have separate accounts is so that you don’t experience issues when it comes to doing your taxes, accounting needs, etcetera.

Another reason that you want to keep your accounts separate is that you’ll want to refrain from being tempted to reach into the money that is designated to the company. And if you’ve only got one account, it can be challenging to differentiate between your personal funds and the business funds.

4. Check-Signing Access

If you’ve got a business partner or plan to take on one in the future, you need to ensure that you provide them with access to sign checks. If you don’t provide your partner with check-signing access you’ll be the only one able to deposit checks or a check may be flagged if your partner attempts to sign it.

To avoid wasting time and becoming frustrated, ensure that you’ve taken care of this minor detail beforehand. You never know when you’ll need that check deposited, or you may be out of time and not able to do it yourself.

5. Picking the Wrong Bank

Not all banks are created equal, nor do they all offer the features that you would be looking for when it comes to opening your business account with them. The bank you choose may have strict limitations on what they will allow a new business owner to take out when it comes to business credit.

Another thing you’ll want to watch out for are banks that are new and not as well known. The reason that you want to steer clear of these banks is for the protection of your company money.

When it comes to your business banking account, you want to make sure that you’re able to meet the requirements of the bank and protect your money at the same time.

6. Minimum Monthly Balance and Fees

Another common mistake made by small business owners is not taking note of the minimum monthly balance. This means that at the end of every month, your account must have a specific amount in it or you’ll face some kind of monetary penalty.

You’ll also want to ask about any monthly maintenance fees that will be deducted from the account. It’s also beneficial to ask if there’s anything that you can do on your side that will wave additional fees such as making a large transfer to your business savings account.

Speaking of your business savings account the typical bank will only allow you to make a specific number o withdrawals from this account every month. If you exceed the number of acceptable withdrawals, you may face a monetary fine.

7. Ordering the Wrong Checks

Ensure that when you’re ordering checks for your business, the correct name is printed on the checks. Some people make the mistake of using other names or their personal names on the check instead of putting the name of the business.

The reason that this is problematic is that when a processor of a payment goes to put a payment through to prevent fraud, they ensure that the name on the check is legit. If your name or another company name appears, then it could lead them to flag the payment as a fraudulent payment.

This would then leave you having to be on a lengthy phone call explaining the mistake and inevitably having to order all new checks. Avoid this from the beginning and ensure that the checks you’ve ordered for your business have the legal name of the business that appears on all your company paperwork.

Trust us, no one wants to deal with the headache of having to wait for checks to arrive in the mail.

Business Bank Account Mistakes Avoided

Now that you know all of the mistakes not to make when opening your business bank account, you can open your account. Avoiding the mistakes listed above will help you to save valuable time and frustrations correcting your mistakes.

If you’ve found this article useful, then you’re going to want to check out some of our other articles. Our site focuses on providing engaging and informative content about things like finance and business every day.

You won’t want to miss out on the advice offered on our site.

Banking

Philippine Bureau of the Treasury is among Asia’s pioneers in leveraging Distributed Ledger Technology (Blockchain) for bond distribution

Author ByCFI.co Blogger

The Philippine Bureau of the Treasury (BTr), together with Union Bank of the Philippines (UnionBank) and the Philippine Digital Asset Exchange (PDAX) – a Bangko Sentral ng Pilipinas (BSP) licensed entity, is the first in Asia to launch an app for the distribution of government bonds enabled by Distributed Ledger Technology (DLT).

Philippine Bureau of the Treasury is among Asia’s pioneers in leveraging Distributed Ledger Technology (Blockchain) for bond distribution

National Treasurer Rosalia V. De Leon said, “The launch of Bonds.PH paves the way for all Filipinos, particularly the unbanked, to easily and affordably invest in the BTr’s newest retail treasury bond, RTB-24. The mobile app presents a compelling opportunity for all to invest and help the Republic raise funds for economic recovery and COVID-19 response.”

Bonds.PH makes bond investing easy. It’s completely digital and available 24/7. Filipinos can invest in retail treasury bonds by downloading the app and pay, for as low as PHP 5,000.00, using InstaPay, GCash, Paymaya, and digital as well as over-the-counter at UnionBank.

Treasurer De Leon, Finance Secretary Carlos Dominguez III and UnionBank Vice Chair Justo Ortiz onsite, together with BSP Governor Benjamin Diokno and National Economic and Development Authority (NEDA) Secretary Karl Kendrick Chua virtually, did a demo of the Bonds.PH app at the official launch held yesterday.

“This is the first retail treasury bond issuance to leverage on blockchain technology – in Asia, and likely the world,” said Edwin R. Bautista, UnionBank President and CEO. “The Philippines is ready to lead the way into the future and tech up the nation with innovative, inclusive opportunities, powered by emerging technologies, for the benefit of all Filipinos.”

Bonds.PH is blockchain-enabled as transactions are recorded in a DLT-based registry in addition to the existing NROSS system. DLT enables immutable and tamper-proof record-keeping as it is recorded on the blockchain.

According to Nichel Gaba, Founder and CEO of PDAX – a fintech investment of UBX (a UnionBank subsidiary), “DLT or blockchain technology is governance by design with its cryptography and programmable smart contracts. This advantage allows the blockchain not only to preserve truth, but also to automate payments, enforce rules, and facilitate complex transactions via smart contracts at little to no cost.”

As such, DLT reduces manual verification and simplifies reconciliation bringing down processing time and costs. This is why the BTr sanctioned the pioneering effort so that through the pilot it can determine if leveraging DLT makes retail treasury bond distribution to the unbanked feasible and economically viable.

The Monetary Authority of Singapore (MAS) commended the groundbreaking endeavor.

“I want to congratulate the Philippine Bureau of the Treasury (BTr) for this important milestone,” said MAS Chief FinTech Officer Sopnendu Mohanty.

He added that, “2020 will be the year of commercialization of blockchain technology in the ASEAN region, and BTr’s efforts to build a DLT registry for bond issuance accelerates the success of the most exciting technology of our time. The blockchain community in Singapore will work together with the Philippines to share learnings, open-source resources and also facilitate connecting corresponding nodes to integrate market infrastructure for transparency and interoperability. The recently released Project Ubin Phase 5 findings by MAS will facilitate the creation of robust blockchain rails for future value creation.”

Chia Hock Lai, Co-Chairman of the Blockchain Association Singapore (BAS) and Chairman of the Singapore Fintech Association (SFA) said BAS and SFA are one with the MAS in fully supporting the Philippines and UnionBank in utilizing blockchain for financial inclusion.

The Philippine Securities and Exchange Commission (SEC) likewise offered its support.

“With our mandate to facilitate financial inclusion while maintaining investor protection, we support this initiative, which makes use of Distributed Ledger Technology,” said SEC Commissioner Ephyro Luis B. Amatong. “We look forward to the results from this initiative, which will contribute greatly to future DLT use cases for capital markets,” he added. The Philippine SEC is among the more progressive regulators in the world having released rules on crowdfunding, as well as draft rules on digital assets and digital exchanges.

Meanwhile, the BSP lauded the initiative for its impact on inclusive prosperity, “Given our advocacy to accelerate the digital delivery of financial services while deepening financial inclusion, we view Bonds.PH as a welcome addition to the expanding suite of available financial products serving wide market segments via innovative delivery channels and bridging the financially excluded,” said BSP Governor Benjamin Diokno.

“From the basic easing of the public’s access to transaction accounts to now this offering of retail treasury bonds to the masses in a simplified yet secure manner, shows the remarkable progress of our shared financial inclusion agenda. This surely marks the transition of blockchain technology from its buzzword status to a feasible, production grade solution capable of democratizing access to digital financial services,” said the Central Bank Chief.

“We look forward to the expansive adoption and success of this initiative and the public can always count on the BSP to remain supportive of responsible digital financial innovations,” he added.

UnionBank Vice Chair Ortiz, who also serves as Chairman of the Distributed Ledger Technology Association of the Philippines (DLTAP) and the Philippine Payments Management, Inc. (PPMI) added that, “Democratizing investment through digital channels and Distributed Ledger Technology allows all Filipinos to contribute to and accrue the benefits of nation building. Every Aling Belen and Mang Juan can save and invest. Download Bonds.PH now from the Apple App Store and Google Play Store and invest in our country!”

Finance

56% of investors say sustainable investments (ESG) are a new safe-haven

Author ByCFI.co Blogger

Sustainable and responsible investments (ESG) are now regarded as ‘safe havens’ by the majority of investors, reveals one of the world’s largest independent financial advisory and fintech organisations.

deVere Group, which operates in more than 100 countries globally, reports that 56% of clients who seek to include environmental, social and governance-orientated investments into their portfolios do so citing that such sustainable funds offer financial protection in times of uncertainty.

A safe-haven asset is a financial instrument that is expected to retain, or even gain value during periods of economic downturn.

Nigel Green, deVere Group’s CEO and founder, says: “There’s been a massive surge from clients this year looking for ESG investments.

“Indeed, more than a quarter of all clients are currently considering or are already actively engaged in responsible, impactful and sustainable investing.

“It’s a phenomenon that’s particularly prevalent with millennials, with eight out of 10 putting ESG credentials at the heart of their investment decision-making process.”

He continues: “However, what is perhaps particularly interesting are the reasons why investors are seeking ESG in the first place.

“Of course, the global public health crisis has acted as a wake-up call in many respects. It has prompted a growing collective awareness of mutual responsibility that fits perfectly into the narrative of ESG investing.

“But what’s most surprising is that the majority [56%] also now say that they perceive ESG investments as the new safe-haven asset class.  As such, they are increasing their exposure to such funds in a way that traditionally they would have done with, say, gold or U.S. government bonds.”

Mr Green goes on to say: “They would be correct in citing this view. All the latest research underscores that the majority of environmental, social and governance investments have outperformed their non-sustainable counterparts this year and have had lower volatility.

“This cannot be ignored by retail – and increasingly institutional – investors who are looking for resilience in these highly unusual times of this new era.”

Previously, the deVere CEO has commented that the trend for ESG is only likely to intensify as millennials, who are statistically more likely to seek responsible investment options, become the major beneficiaries of the largest intergenerational transfer of wealth – an estimated $30tn in the next few years – meaning we can expect both retail and institutional investors to continue to pile into ESG.

Nigel Green concludes: “The data shows that the view held by traditionalists who claim ESG investments are ‘nice to have’ but not ‘a need to have,’ falls apart under scrutiny in the virus-driven global economic downturn.

“And whilst this short time frame is not determinative, those investors citing ESG’s safe-haven credentials are, for now at least, being proven right.”

Banking

7 Questions to Ask Before Choosing Banking Services

Author ByCFI.co

The number of unbanked Britons currently stands at around 1.2 million. Banks in the United Kingdom play an essential role in bridging the individual and business-related financial needs. These financial institutions provide access to lending and borrowing facilities on top of offering safe volts for savers. 

As a client, choosing a bank that serves your needs is never easy. It would help if you considered a wide range of factors before settling for specific banking services. A reliable banking services provider should be able to guarantee you security, convenience, and cost-effectiveness. 

Are you in the process of selecting a banking services provider? Vetting such potential financial institutions is vital. These eight questions can help you probe such prospective banking service providers before entrusting them with your financial needs. 

1. How Much Are the Bank Charges?

Let’s face it; cost is the main deal-breaker when choosing a banking services provider. You might need a clear summary of the banking charges before selecting the right bank for you. Consider the summary of all the costs, terms, and conditions stipulated by the institutions before making a decision.

You might need to ask the potential service provider about any extra charges attached to their bank cards. This question will also help you figure out other management fees that apply. Some banks charge a fee for keeping your current and saving accounts.

It’s important to consider all these charges before making a decision. These standard banking fees should help you determine whether the potential banker is convenient for you. 

2. What Are the Digital Services Available?  

Every sector of the economy has since gone digital. The banking sector is not an exception.

 Most banking services providers now offer online services. However, there’re disparities on the different platforms and the range of services each bank offers. A reliable banking services provider should provide online services that help you save time and money. 

Online banking services should also be available at all times and on any device. Today, over 2.5 billion people globally have access to smartphone devices. As such, a suitable banking services provider should offer online banking services and mobile banking options.

Digital banking plays a vital role in bridging the gap among unbanked citizens. The Union Bank of the Philippines has been at the forefront in providing digital banking services to these unbanked populations. 

3. What Are Your Account Requirements?

Before you settle for a banking services provider, it would help to consider the dynamics related to account opening. You don’t want to end up selecting a specific bank only to learn about unfavourable account opening requirements later. 

What are your potential bank’s minimum requirements when opening an account? You might need to consider the minimum balance you need when opening an account. Further, it would help to consider the minimum balance that your account must have to remain active. 

Be sure that the underlying account requirements are stipulations you can easily manage. This will limit the risk of surprises in the future.  

4. Do You Allow for Overdraft?

Sometimes your account balance depletes below the withdrawable minimum. When this happens, most customers result in overdrafts. It’s important to understand beforehand if your bank allows overdraft transactions.

You would also want to be sure that the bank charges manageable charges when you overdraft. It would also help to gather information on whether your bank allows for overdraft protection. This is where you have the option of covering an overdraft with money from a different account. 

5. Do You Have a Branch Near Me?

Online or digital banking introduces remarkable ease and convenience when accessing financial services. Some particular needs or queries may require a physical meeting with a representative or the bank manager. It’s comforting to know that you have your money in a bank where you can walk in and out at your convenience.  

You might need to consider an institution that’s closer to your work or home. It’s safer to spend your time researching on banks that are closer to you on top of fitting your criteria. A bank that’s close enough makes the process of filing and receiving feedback on complaints easier.

6. What Other Services Do You Offer?

Not all banks are the same. Financial institutions offer different banking services that suit varying customer needs. Talking to bankers can help you unpick the unique services on offer. 

Apart from lending and borrowing, banks also offer a wide range of differentiated services. It would help to consider these unique services when considering a bank. For instance, banks that provide both regular banking and Islamic banking show a unique sense of inclusivity. 

It would be best if you also considered a bank with unique facilities such as investment and wealth management. Partnering with the Union Bank of Philippians ensures that you have access to private, wealth, and investment management.

7. Are There Withdrawal and Transfer Limits? 

You don’t want to end up working with a bank that limits you. Part of the need to have a convenient banking service is to expand your freedom when making transactions. It would be objectionable to rack up interest on your hard-earned money, yet have limits when it comes to withdrawal.

If you intend to save up considerable amounts of money in your account, this question is essential. Ultimately, how much you can withdraw should interest you. You don’t want to end up having to borrow money elsewhere while there’s money in your account due to limits. 

8. Do You Have Testimonials?    

There’s nothing more important than a reputation when dealing with a banking services provider. This is why references and reviews should be at the centre of this vetting process. Can your potential bank present a list of testimonials for exemplary services?  

Positive reviews play an essential role in determining a bank’s reputation. Consider testimonials as one of the determining factors when dealing with a banking services provider. 

Vetting Your Prospective Banking Services Provider Is Non-Negotiable  

Finding a secure and convenient way to bank your hard-earned money is vital. You don’t want to end up feeling frustrated when trying to access banking services. Convenience, affordability, and accessibility should be at the centre of your selection process.

Are you looking for a reliable banking services provider? These eight top questions can help you get a secure banking facility as soon as possible. At Union Bank of the Philippians, our impeccable services and products are the perfect answer to these questions.  

Have you been looking for a bank that encompasses convenience and safety under one roof? Visit our page for more resources.

Finance

California Insurance Commissioner launches first-ever database of green insurance products

Author ByCFI.co Blogger

Climate Smart Insurance Products Database is part of comprehensive insurance strategy to reduce greenhouse gas emissions and build climate resilience

Los Angeles, California—Insurance Commissioner Ricardo Lara has launched the Climate Smart Insurance Products Database, the first-ever consumer-oriented list of green insurance policies. With hundreds of climate-related insurance products already available to consumers and businesses, the California Department of Insurance has developed this database to help the public understand and access these products and encourage further insurance policy innovation in commercial, homeowners, and auto lines. Recognizing the potential for specific insurance products to address climate risks and contribute to a sustainable future will encourage consumers and insurance companies to explore products that harness new technologies and promote resilience.

“Understanding, preventing and reducing climate risk is of paramount importance, and we need innovative insurance solutions to accelerate the transition to sustainable and resilient communities and economies,” said Commissioner Lara. “When disaster strikes, insurance can help damaged homes, buildings, and vehicles be built back better, stronger and greener and springboard into the cleanest technologies.”

The Climate Smart database lists more than 400 products available to consumers and businesses that address climate risks, harness new technologies and build resilience. They include insurance products and solutions that:

  • Provide green-rebuild coverage, providing a pathway to building back stronger, more energy efficient, and lower-emission buildings and vehicles
  • Promote fuel-efficiency by offering lower premiums for low-emission vehicles
  • Provide discounts for green energy use and energy efficiency certification
  • Provide discounts for businesses who operate hydrogen and hybrid electric buses
  • Protect low-income communities and natural ecosystems

A June 1, 2020 report from the environmental and sustainability nonprofit group Ceres recommends the development of a database of innovative insurance products that reduce emissions or increase resiliency.

“California Commissioner Lara and his team at the California Insurance Department deserve great credit for creating the Climate Smart Insurance Products Database,” said Steven M. Rothstein, Managing Director of the Ceres Accelerator for Sustainable Capital Markets. “This is part of a comprehensive insurance approach to climate risks. This database is a critical building block for a more sustainable future.”

The database is another element in Commissioner Lara’s strategy to combat climate change. Last year, Commissioner Lara announced an agenda-setting effort with the United Nations to create a Sustainable Insurance Roadmap, a comprehensive climate change strategy and action plan that is envisioned to pave the way for innovative risk management, insurance and investment solutions that reduce climate risks and protect natural ecosystems.

“One of the United Nations’ Principles for Sustainable Insurance promotes the aim of insurers working together with governments, regulators and other stakeholders in promoting widespread action on sustainability issues, and Commissioner Lara is showing us what regulators can actively do to make that happen and drive innovation,” said Butch Bacani, who leads UN Environment Programme’s Principles for Sustainable Insurance Initiative (PSI), the largest collaboration between the UN and the insurance industry. “With this pioneering database, Commissioner Lara is demonstrating sustainability leadership, and we hope that other regulators will step up to the plate and lead by example.” 

Commissioner Lara previewed the database on July 8 at an international virtual event convened by the UN PSI and Swiss Re on sustainability leadership in insurance, which attracted more than 700 participants from over 60 countries. In addition to working the the UN, California will be collaborating with Washington State Insurance Commissioner Mike Kreidler to build on this innovative database. California and Washington State have been working together with the UN Environment Programme as members of the PSI as well as the Sustainable Insurance Forum (SIF) for regulators. 

“I applaud Commissioner Lara and the California Insurance Department’s thoughtful initiative to make the full range of existing climate-related insurance products available to consumers and businesses,” said Commissioner Kreidler. “Providing this innovative access to these products encourages communication between policyholders and their insurers, and will no doubt lead to new ideas and more refined climate-related insurance products going forward.”

***

The Climate Smart Insurance Products Database can be accessed via: www.insurance.ca.gov/climate-smart-database.

It is the first database of insurance products focused on sustainability that is available to consumers. The database includes insurance products sold in California and around the world.

The database allows consumers to search products in nine categories:

  • Fortified Homes can provide protection from natural hazards through improved roofing materials or other home hardening efforts. The Insurance Institute for Business & Home Safety (IBHS) identifies best practices to protect against storms and wildfires.
  • Green Buildings and Equipment are energy efficient or otherwise sustainable.
  • Nature-Based Solutions harness the capabilities of natural infrastructure to mitigate against weather disasters.
  • Mileage-Based Insurance recognizes risk reductions from decreased driving.
  • Low-Emissions Vehicles include electric, hybrid and other low-emissions vehicles.
  • Microinsurance allows low-income individuals to receive protection from specific perils.
  • Renewables include solar, wind, geothermal and other sustainable technologies.
  • Carbon Offsets are reductions in greenhouse gas emissions to compensate for emissions occurring elsewhere.
  • Super Pollutant Reduction includes efforts to decrease dangerous air pollutants.
  • California is the largest insurance market in the U.S., and one of the largest in the world. The California Department of Insurance was one of the first insurance regulatory and supervisory authorities in the world to sign UN Environment Programme’s Principles for Sustainable Insurance and commit to tackling global sustainability challenges such as climate change, biodiversity loss and ecosystem degradation, pollution, and social and financial exclusion.
  • The Department of Insurance does not endorse any particular insurer. While the Department of Insurance makes every effort to confirm the accuracy of the database, insurance products may not be currently available and the database can be revised at any time, with or without notice.
  • The original source of the information for this database is Dr. Evan Mills (Energy Associates), who is a world-renowned researcher of the intersection between climate change and insurance. The Department plans to update and add to this information through dialogue with insurers, other climate experts, other state entities, and international leaders.

The California Department of Insurance, established in 1868, is the largest consumer protection agency in California. Insurers collect USD 310 billion in premiums annually in California. Since 2011, the California Department of Insurance received more than 1,000,000 calls from consumers and helped recover over USD 387 million in claims and premiums. Please visit the Department of Insurance website at www.insurance.ca.gov.

Technology

WISeKey Receives Best IoT Semiconductor Innovator Global 2020 Award

Author ByCFI.co Blogger

Geneva, Switzerland – July 14, 2020 – WISeKey International Holding Ltd (“WISeKey”, SIX: WIHN / Nasdaq: WKEY), a leading global cybersecurity and IoT company today announced that it was recognized by CFI.co, a print journal and online resource reporting on business, economics, and finance, with the “Best IoT Semiconductor Innovator Global 2020” award.

Each year, CFI.co seeks out individuals and organisations that contribute significantly to the convergence of economies and truly add value for all stakeholders. This year, CFI.co judges have conferred WISeKey the award for Best IoT Semiconductor Innovator Global 2020.

Highlights of the judging panel’s findings include:

  • Operating at the leading edge of the digitalised world, WISeKey is engineering a hack-proof yet user-friendly environment. Unique amongst its peers, the company develops and manufactures its own chips that help establish fully secured data generation and injection capabilities.
  • WISeKey was founded in 1999 and was an early promotor of strengthened security in electronic communication. To that end, the company engages with key organisations, such as the World Economic Forum (WEF) and the International Telecommunications Union (ITU).
  • The CFI.co judging panel remarks that the company is forward thinking and actively pursues new opportunities to grow organically and through acquisitions.

The judging panel’s full report:

WISeKey: Best IoT Semiconductor Innovator Global 2020

The Next Big Thing is already here and will revolutionise our way of living – yet again. However, fear not: The naming of the Internet of Things (IoT) may have been unimaginative, but its applications are not. According to WISeKey, a Swiss-based innovator and disruptor, the IoT is growing exponentially, connecting mere billions of devices today, but will link well over a trillion ‘things’ by 2030. Operating at the leading edge of the digitalised world, WISeKey is engineering a hack-proof yet user-friendly environment. Unique amongst its peers, the company develops and manufactures its own chips that help establish fully secured data generation and injection capabilities. To protect against hackers, WISeKey has created scalable hardware and software suites that provide secure connections from the edge, where data is gathered, to the cloud where the processing takes place. WISeKey was founded in 1999 and was an early promotor of strengthened security in electronic communication. To that end, the company engages with key organisations, such as the World Economic Forum (WEF) and the International Telecommunications Union (ITU). Listed on Nasdaq, WISeKey is recognised for its adherence to a well-defined and clear mission statement. The company also excels in transparent corporate governance. Thanks to its expertise, size, and domicile, WISeKey has maintained – and expanded – its edge over the competition. The CFI.co judging panel remarks that the company is forward thinking and actively pursues new opportunities to grow organically and through acquisitions. The judges are delighted to offer WISeKey the 2020 award Best IoT Semiconductor Innovator (Global).

About WISeKey

WISeKey (NASDAQ: WKEY; SIX Swiss Exchange: WIHN) is a leading global cybersecurity company currently deploying large scale digital identity ecosystems for people and objects using Blockchain, AI and IoT respecting the Human as the Fulcrum of the Internet. WISeKey microprocessors secure the pervasive computing shaping today’s Internet of Everything. WISeKey IoT has an install base of over 1.5 billion microchips in virtually all IoT sectors (connected cars, smart cities, drones, agricultural sensors, anti-counterfeiting, smart lighting, servers, computers, mobile phones, crypto tokens etc.). WISeKey is uniquely positioned to be at the edge of IoT as our semiconductors produce a huge amount of Big Data that, when analyzed with Artificial Intelligence (AI), can help industrial applications to predict the failure of their equipment before it happens.

Our technology is Trusted by the OISTE/WISeKey’s Swiss based cryptographic Root of Trust (“RoT”) provides secure authentication and identification, in both physical and virtual environments, for the Internet of Things, Blockchain and Artificial Intelligence. The WISeKey RoT serves as a common trust anchor to ensure the integrity of online transactions among objects and between objects and people. For more information, visit www.wisekey.com.

Disclaimer

This communication expressly or implicitly contains certain forward-looking statements concerning WISeKey International Holding Ltd and its business. Such statements involve certain known and unknown risks, uncertainties and other factors, which could cause the actual results, financial condition, performance or achievements of WISeKey International Holding Ltd to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. WISeKey International Holding Ltd is providing this communication as of this date and does not undertake to update any forward-looking statements contained herein as a result of new information, future events or otherwise.

This press release does not constitute an offer to sell, or a solicitation of an offer to buy, any securities, and it does not constitute an offering prospectus within the meaning of article 652a or article 1156 of the Swiss Code of Obligations or a listing prospectus within the meaning of the listing rules of the SIX Swiss Exchange. Investors must rely on their own evaluation of WISeKey and its securities, including the merits and risks involved. Nothing contained herein is, or shall be relied on as, a promise or representation as to the future performance of WISeKey.

Contact

WISeKey Investor Relations (US)

Lena Cati

The Equity Group

212 836-9611

Phone: 212 836-9611

Email: lcati@equityny.com

Corporate Finance

The perfect storm brewing for company pensions

Author ByCFI.co Blogger

Company pensions are becoming increasingly unsustainable due to the plunge in government bond yields and low interest rates, warns the CEO of one of the world’s largest financial advisory and fintech organisations.

The warning from Nigel Green comes as the yields of government securities – in which pension funds heavily invest – have fallen dramatically since the coronavirus crisis.

Mr Green says: “Institutional investors, such as pension funds, have always traditionally invested in government bonds, as they’re widely regarded as a safe-haven.

“However, the world has changed considerably in six months.

“Around the world, government bond yields are plunging as a direct result of the record-breaking asset purchase schemes introduced by central banks to help ease a severe worldwide economic slump due to the pandemic.

“And as the historic stimulus is set to remain, or even be expanded, the pressure on bond yields is expected to intensify.”

He continues: “The far-reaching stimulus agendas and more than a decade of ultra-low interest rates – which could be going even lower – are creating a perfect storm for company pensions, which are already feeling the squeeze of ballooning deficits.

“Increasingly, no longer are government bonds delivering the returns required to fulfil the obligations made to retirement savers.”

The deVere CEO also underscores the ongoing issues of the wider bond market.

“The falling yields have forced pension funds, and other institutional investors, to make highly unusual changes to their asset allocation mix as they seek out better returns in riskier assets.

“But then, the question is: If pension funds don’t buy government bonds, who will?

“China has been a major purchaser of U.S. bonds in the past to keep its export prices down. With its $1trn of Treasurys it’s the number two holder.

“But the new economic realities and geopolitical tensions have prompted Beijing to shed some of its U.S. bonds. In March alone, China sold $8bn of its hoard – in the same month as overseas investors and central banks got rid of $300 billion of Treasurys to raise dollars.”

Mr Green concludes: “Typically, bonds account for more than half of the assets held by pension schemes.

“Due to the falling bond yields, the potential for negative interest rates, and the already chronic deficits, company pension holders should seek with their adviser the available ways to safeguard their retirement income.”

Banking

Union Bank of the Philippines’ Private Banking bags 2 international awards for NextGen Academy

Author ByCFI.co Blogger

Union Bank of the Philippines (UnionBank)’s Private Banking recently won two international awards – the Best NextGen Offering from The Digital Banker’s Global Private Banking Innovation Awards 2020, and Best for Wealth Transfer/Succession Planning from Asiamoney Private Banking Awards 2020, for its pioneering program Next Generation (NextGen) Academy.

UnionBank Best Next-Gen Offering

The Digital Banker awards ceremony, meant to honor the world’s best-in-class private banks that demonstrate unrivalled drive and innovation to meet the sophisticated need of their high net worth clients – lauded the NextGen Academy that seeks to empower and set the entrepreneurial foundation for next-generation family business leaders.

Meanwhile, Asiamoney, in a statement, recognized UnionBank’s “digital-first approach” that is “already likely to appeal to younger clients, who demand instant access to their banking services through mobile apps rather than visits to branches.”

Succession Planning

Asiamoney commended the NextGen Academy for being a sensible way to break into the wealth transfer business by putting emphasis on the next generation of clients and ensuring that UnionBank will be among the next generation of private banks of choice.

While still relatively new to the wealth and asset management landscape in the Philippines, UnionBank Private Banking understands the importance of pairing global expertise and networks with local experience and relationships, thus establishing an academy for the Next Generation – the first-of-its-kind in the local private banking landscape.

“We want to be a part of our client’s wealth management journey, to grow, to keep and to pass on their wealth to their successors. This award is an affirmation of UnionBank Private Banking’s commitment to unlock possibilities and empower our clients to navigate their wealth towards financial legacy,” said Atty. Arlene Agustin, UnionBank’s Private Banking head.

Starting as a standalone conference in 2016, the Next Generation Academy has evolved into a program of multiple relevant modules, spanning several months of classroom sessions and workshops.

What differentiates the program is that it mirrors the structure of an academy, wherein the so-called NextGen would enroll, attend, and actively participate in all the prescribed modules.

Each classroom session is carefully curated to focus on a certain aspect of wealth management and succession, allowing the participants to be fully immersed in the discussion.

The NextGen Academy is an excellent avenue for participants to gain valuable insights and training from subject matter experts to help prepare them not only for their roles in the family business, but also for the reins of their families’ legacies to be handed over to them.

The academy also allows the NextGen participants to further network and develop invaluable close ties with regional peers from Thailand, Indonesia, Taiwan, Singapore, Hong Kong, Japan, and China, among others, through a premier platform called the Masters Series that is organized by UnionBank Private Banking’s strategic ally, leading global wealth and asset manager Lombard Odier.

Corona Journal

Trump Inspires

Author ByWim Romeijn

President Donald Trump has become the unlikely saviour of the long-suffering book publishing industry. In the run-up to the election, and his possible eviction from the White House, publishers are scrambling to release a veritable tsunami of tell-all books by former associates of Mr Trump, most of whom have an axe to grind.

In September, legendary journalist Bob Woodward of Watergate fame, is expected to release the sequel to his 2018 bestseller Fear: Trump in the White House that sold well over two million copies. Meanwhile, former Trump lawyer, confidante, and fixer Michael Cohen is scribbling a highly anticipated book of revelations that promises to hit the president where it hurts.

On a lighter note, novelist and satirist Christopher Buckley promises the inside scoop on the Trump Administration in his upcoming Make Russia Great Again, the (fake) musings of Herb Nutterman, the president’s fictional seventh chief of staff. However, truth is stranger than fiction: Mr Buckley saw some of his previous work overtaken by reality.

Scheduled for release on August 11, just two weeks before the Republican National Convention in, Mary Trump’s Too Much and Never Enough: How My Family Created the World’s Most Dangerous Man is already a bestseller in pre-sales on Amazon. The president’s niece is said to lift the veil on Mr Trump’s tax affairs, including details on systemic tax dodging and evasion that could well pique the interest of public prosecutors.

Lawyers for the Trump family are frantically trying to stop the publication of the book, but their efforts have so far failed to impress New York publishing house Simon & Schuster which already warehoused 75,000 copies with new print runs adding to the pile weekly. At least a few of the stored bombshell books are likely to be misplaced by careless warehouse workers and find their way to the press.

Authors and journalists have found the Trump Administration particularly inspiring. CNN Chief White House Correspondent and Antagonist Jim Acosta dished up the dirt in last year’s The Enemy of the People: A Dangerous Time to Tell the Truth in America (US publishers have a penchant for long titles) whilst far-right media pundit Ann Coulter switched from tearing down Bill and Hillary Clinton to celebrating Donald Trump as the by far greatest man to ever hold the presidency in In Trump We Trust: E Pluribus Awesome!. Interestingly, Ms Coultier has toned down considerably as of late.

In Understanding Trump, former speaker of the House of Representatives Newt Gingrich, declares his undying love for the billionaire president. The book, described in reviews as a series of platitudes, sold poorly but did manage to reach the top of the New York Times Hardcover Nonfiction Bestseller List thanks to a reported $100K wholesale order placed by the Republican National Convention.

By last count, some fifty major works of nonfiction have been published on the life and times of Mr Trump. The one by former National Security Advisor John Bolton – The Room Where It Happened: A White House Memoir – ruffled a few feathers but ultimately failed in its stated mission to destabilise, and perhaps even topple, the president.

As often happens with real-time history reporting, the quality of most books on Trump is either downright awful or, at best, tolerable. The imminent release of Bob Woodward’s latest tome may boost the overall readability of the body of work dedicated to the 45th US president. Expect the man himself to publish a book or two as well, after he has left the building. Donald Trump’s attention span may not exceed five minutes, he does like to churn out ghost written books on how to bluff, cheat, and elbow your way to riches. Lesson 1: Never admit defeat.

Finance

Is Investing in Green Energy Financially Savvy?

Author ByCFI.co

The global market for green energy is expected to grow to a value of $1.5 trillion by 2025. 

When you consider the fact that this was a market that barely existed a few decades ago, it’s obvious that investing in green energy has made many people rich. It’s also going to continue making people rich for as long as the world needs renewable energy, which is likely to be forever.

The question, therefore, is this: what is the best way to make money from the green revolution if you’re new to the game?

Read on as we look at the answer to that question and set you on the path to becoming a profitable green investor.

The Different Ways of Investing in Green Energy

There are many different ways to get exposure to green energy. The right one for you will depend on your risk appetite, the amount you want to invest, and whether you want to be actively involved in the investment.

We’ve looked at the different options in more detail here.

Starting a Business

If you want to take an active hand in the green energy market, you could set up a business in the field. There are a few different options here.

Wind and solar energy are the two main forms of renewable energy in the world today. If you enter this industry, you’ll likely be setting up either a wind farm or solar farm.

This is, of course, specialized work. You’ll need an educational background in energy or physics, and you may need prior professional experience of working with renewable energy.

In order to produce energy on an industrial scale, you’ll also need to make a considerable initial investment. Solar panels and wind turbines are both expensive to buy in bulk. They also take up considerable space, which means that you’ll need to have a large plot of land to work on.

Buying Stocks

If you don’t want to set up a green energy company yourself, you could choose to invest in one that’s already in operation.

There are many different options here, from established energy giants to brand new operations. The latter will not feature on public stock exchanges, however, so you’ll need to look to different investment platforms for these.

If you invest in a new start-up while its shares are cheap and it goes on to create highly valuable energy solutions, you could end up multiplying the value of your investment many times over. On the other hand, if the company goes bankrupt, you’ll lose all your money.

If you’d prefer a lower-risk stock investment, it might be a good idea to look for a publicly-traded, blue-chip green energy company.

Investing in a Green Mutual Fund or ETF

This is similar to investing in green stocks. It will offer passive exposure to the green energy market, giving you financial benefits if and when the market as a whole improves.

The key difference between this and the option of buying company shares is the risk-reward profile. Because funds diversify your investment across a large number of ventures, you won’t lose all your money because of one company’s bad decisions.

However, you will also have a much more limited growth capacity. 

There are a couple of important differences between an ETF and a mutual fund. Most significantly, a mutual fund is actively managed, which means that fund managers will pick up and drop stocks in real time on the basis of market trends.

ETF managers, on the other hand, pick a basket of stocks or index at the fund’s inception and leave them in place regardless of trends. Because of this passive strategy, ETF fees tend to be much lower.

Setting Up Solar Panels or a Windmill

This admittedly isn’t an investment in the business sense. However, that doesn’t mean it’s not a great bet.

Recent COVID-19-related dips aside, fossil fuels are getting more expensive. As oil-producing countries tinker with the supply chain and the reserves of natural fuel continue to dwindle, the price of non-renewable energy will eventually become unsustainable.

When that happens, the homes and businesses that are self-sufficient in terms of energy will be much better off. If you live in an area that gets a lot of sun or wind, this is something you should consider.

The Advantages of Investing in Green Energy

The main advantage of investing in green energy is the market outlook. There aren’t many industries with as bright a future as renewable energy.

Green companies also benefit from government subsidies and tax breaks in many areas. Because many places desperately need green energy, ruling bodies are happy to incentivize its development in whatever ways they can.

To make the most of this, you should research political attitudes to green energy in a given country before deciding to invest in a company from there.

Depending on the investment you make, you might also be helping to fund a company that makes a real breakthrough in the field of clean energy. There are countless capable energy specialists that only need start-up capital to start building the energy solutions of tomorrow.

Investing in the Energy Solution of Tomorrow

When it comes to investments with future value potential, you might find it difficult to come across a better option than green energy. Our planet’s energy requirements are massive, and continuously growing, while non-renewable energy resources continue to dwindle.

Investing in green energy is therefore likely to be a successful strategy. However, to make sure you take on an investment that suits your goals and outlook, you’ll need to do a little research on the various available options.

To learn more about investment opportunities, check out our finance section.