Author: CFI.co Blogger

Finance

Demand for financial advice surges 24% as priorities shift in new era

Author ByCFI.co Blogger

As individuals, households and businesses readjust and look ahead to a new era and recovery, demand for financial advice is up by almost a quarter, reveals one of the world’s largest independent financial advisory organizations.

deVere Group, which operates in 100 countries worldwide, says the number of enquiries from new clients was up 24% in April, compared to the previous month.

Of the findings, Nigel Green, the founder and chief executive of deVere Group, observes: “Disruption and dislocation have hit entire economies and businesses of all sizes and in all sectors.

“This has had a very real and very immediate impact on the finances of individuals, households and businesses around the world.

“Suddenly, unexpectedly, many have realised that they didn’t have sufficient money behind them, they didn’t have contingency plans.

“This, as they know, could have consequences for the lifestyles and life opportunities of themselves and loved ones and, for those in business, for the long-term sustainability of their firm.

“With financial matters back in sharp focus, for many ‘I should have’ becomes ‘I need to have.’ 

“This most unusual situation has dramatically underscored that no-one really knows what is around the corner. Now more than ever people are seeking to be as financially prepared as they can for any eventuality.”

He continues: “The same thing happened following the 2008 financial crash. That too served as a wake-up call to many people to ensure that they become financially secure and there was a subsequent increase in demand for advice.

“Even then – when confidence in financial institutions, especially traditional banks, was at an all-time low – people understood that as the world evolves, your financial planning strategies might need to also.”

This, says Nigel Green, is driving the increasing demand. But in this tech-driven era, how do people want this advice delivered? 

According to a poll carried out by deVere amongst existing and prospective clients, 52% said ‘face-to-face, 42% said they prefer videocall platforms like Zoom, and 6% answered ‘by telephone.’ 

“Given the circumstances and how much things have changed, I quite was surprised that the preferred option for the delivery of financial advice remains face-to-face.

“But video communication is only 10% behind, which is quite something as it is a new platform for most people.  

“The survey underscores that increasingly people want bespoke financial advice combined with innovative technology.”

Mr Green goes on to add: “We can be in no doubt that the world has already fundamentally changed – and it will do so more and maybe at a faster pace.”

This was highlighted by the deVere poll which revealed that 72% of client respondents feel the world has changed permanently.

In addition, 80% said that in a similar way to after the 2008 crash, new companies will emerge and the same ones that were successful in the past were not guaranteed to succeed again.

“With these shifts impacting people’s finances, the majority of our new clients are seeking advice on savings plans, investments, foreign exchange, pensions and retirement planning and tax planning,” he notes.

The deVere CEO concludes: “2020 has been a year of change.  For an increasing number, this includes a change in the way we prioritise, with long-term financial security for ourselves and our loved ones ever-more important.”

Business

Working from home: Are you breaking confidentiality laws?

Author ByCFI.co Blogger

What happens to confidential waste while working from home?
 

With employees working from home because of the Covid-19 outbreak, how safe is the information they’re accessing and disposing of now it’s out of the office?

According to one specialist waste handling organisation, remote working means new headaches for companies and their data security.

UK waste collection agency BusinessWaste.co.uk knows that even during the crisis of a pandemic, confidential waste must be disposed of correctly in order to protect businesses and their customers from fraud or blackmail.

“Even if people are working from home, they need to be mindful that any waste they create needs to be destroyed in the same ways it would if they were in the office,” says BusinessWaste.co.uk  company spokesperson Mark Hall. Companies could still be in line for massive fines if they get it wrong, Hall warns.

What counts as confidential waste?

Essentially, confidential waste refers to documents possessed by any company that can expose discrete information about suppliers, customers, or employees.

“Basically, if it details any information about the nature of your work or anyone associated, then it counts as confidential information which will need proper disposal,” says spokesman Mark Hall.

However, it can be very tricky to distinguish what counts as confidential waste, as many businesses work with different mediums of materials.

BusinessWaste.co.uk has compiled a list of different types of confidential waste, making it easier to understand which work-related items will need expert disposal.

  • Personnel files and contracts – including CVs and application letters
  • Financial records – such as order forms, invoices, bills and statements
  • Health and social care records
  • Criminal Records
  • Business cards, ID badges, and security passes
  • Letters, memos, and other items containing names and addresses.
  • New business proposals and business plans
  • Used notebooks
  • Product samples or profiles
  • Research data
  • Diaries
  • Photographs

“If you’re working from home, you need to be aware that any of these resources could contain confidential details which could be dangerous in the wrong hands,” says Hall.

“So please make sure you or your staff don’t throw this information into the household waste!”

What could happen if it’s not disposed of properly?             

Failing to dispose of confidential waste can lead to a variety of outcomes, ranging from prosecutions under the law to identity theft and fraud.

“Your company could fall victim to industrial espionage, so it’s really important to make sure that private information cannot be leaked to rival companies through improper disposal,” says Hall.

Although it might be easier to just chuck all rubbish into your household waste bin, there are legal implications such as breaching the UK 1988 Data Protection Act, which regulates the collecting, storing, and destroying of confidential data.

Any companies that fail to oblige the act can face crippling fines from the UK data watchdog, the Information Commissioner’s Office.

“This is serious stuff that could ruin a company’s reputation and lose customers,” says Hall, “and if you’re the one discovered to be doing it, you could be fired.”

Confidential waste needs to be disposed of by a licensed waste removal company in order to comply with the latest laws and guidelines.

Actions you can take now

BusinessWaste.co.uk recommends that all members of staff be reminded about company policies regarding waste, and firmly told not to chuck any work materials into their household rubbish.

Mark Hall says that in an ideal world, sensitive information should not leave the office, so the best thing for businesses to do is to try to restrict what is essential and needs to be taken home.

Another suggestion from Hall is to make as many work tasks computer-based as possible, with sensitive files only accessible from a secure device approved by your company.

 “The best thing you can do if you’re unsure is to keep all information secure and together at your home workspace, and when it is safe to do so, take it all back to work for proper disposal,” says Hall.

“If in doubt, don’t chuck it out.”

For further information see https://www.businesswaste.co.uk/confidential-waste/ and https://www.businesswaste.co.uk/waste-transfer-note-faqs/

Finance

Bitcoin’s coming of age? May’s historic halving taking place in a new era

Author ByCFI.co Blogger

The Bitcoin price will hit ‘at least $10,000’ even before the four-yearly ‘halving’ event taking place in two weeks, predicts the CEO of one of the world’s largest independent financial advisory organisations. 

The prediction from the chief executive and founder of deVere Group, Nigel Green, comes as the price of the world’s largest cryptocurrency suddenly soared by more than $1,500 on Thursday, moving it to its highest value since February.  It peaked at $9,400.

It comes ahead of May’s highly anticipated halving event. Occurring every four years, halving means that less and less Bitcoin – which is limited to 21 million units – will be mined.

In 2012, the number of new Bitcoins issued every 10 minutes fell from 50 to 25. In 2016, it went down from 25 to 12.5. Now, in the 2020 halving, it will drop from 12.5 to 6.25.

Mr Green says: “We see the cryptocurrency market already significantly picking up pace ahead of the historic event in May.  

“Investors are now increasing their exposure to Bitcoin as the halving – only the third in its 11-year history – will push up prices sharply due to the dramatically lower supply combined with a steady demand and increasing awareness of digital currencies.”

Previous Bitcoin halving events have prompted impressive price climbs. The 2016 halving triggered a 300 per cent jump in the value of Bitcoin.  

But the 2020 one could be even more remarkable, believes the deVere CEO.

He notes: “May’s event could herald Bitcoin’s coming of age. 

“It will, of course, drive prices higher – but, in my opinion, the jump could be even more impactful due to these unprecedented times.

“The digitalisation of our lives is accelerating at a faster pace than ever before. We’re in an exciting new era driven by technology.

“This new world needs new ways of doing things to fit the new normal.  Clearly, one of those things which is needed now more than ever, as the world becomes ever-more digitalised and globalised, is digital and global currency, such as Bitcoin.

“This will not have gone unnoticed by investors who are increasingly piling into cryptocurrencies.”

Mr Green continues: “Also, these unusual times have forced central banks to increase monetary supply. By printing never-seen-before amounts of money, traditional currencies are devalued and inflation fears rise.

“This will also drive investors towards decentralised, non-sovereign digital currencies.”

Mr Green concludes: “The excitement of the forthcoming rare halving event, together with the new era we’re in, will drive the price of Bitcoin exponentially and sustainably.

“I believe we can expect it to hit at least $10,000 before the May event itself.  

“Beyond that, we could see an explosion in the price of Bitcoin due to real-world issues it addresses and increasing adoption.”

Economics

Towards economic recovery: a simple, quick and targeted way for authorities to support those most in need

Author ByCFI.co Blogger

As political leaders across Europe are contemplating how to best prepare the restart of our economies, European Fintechs Loyaltek and Paynovate launch the Unity Card (unitycard.eu): an initiative enabling authorities to financially support certain segments of the population, such as the most underprivileged, but also to specifically target local retailers and merchants who’ve had to close their businesses. 

The special payment card, which will exceptionally be free to municipalities as the first, local level of power, can be delivered anywhere on the Old Continent in as fast as 2-4 weeks and avoids cumbersome logistics and administration, allowing for effective, ultra-targeted, monitorable and evolutive socio-economic measures on the road to economic recovery.

Brussel, 24 april 2020. As the Corona curves are slowly but surely starting to flatten, the focus is gradually shifting towards the next challenge: relaunching the economy. Whilst national governments and international institutions across Europe and the world are announcing unprecedented crisis measures, it remains to be seen if these will be enough, and especially, whether the aid can be deployed quickly enough to save those in need today. Therefore, decisive action needs to be taken today rather than tomorrow.

With a view to this, European FinTech pioneers and veterans Loyaltek and Paynovate are teaming up in a unique proposal to political leaders, with the aim of offering citizens much needed and rapid financial support by means of the Unity Card. As innovative as it is useful, this debit card can be limited for use in a certain geographical area (e.g. one municipality) as well as a certain types of predetermined shops or businesses, in this case those that have been forced to close during the current crisis: hotels, restaurants, bars, hairdressers, DIY-stores, clothes stores… As such, it is the perfect instrument to stimulate the local economy and prevent the money disappearing to foreign e-commerce websites, being sent to family abroad, or saved.

“Whether it’s to support merchants who have had to close their business or to help a mother feed her children: our leaders, from municipal to national level, are looking for ways to mitigate the effects of the lockdown and prepare for a return to normal life and economic recovery,” explains Robert Masse, founder and CEO of Loyaltek and expert in the field of card payments. “But time is running out, and the question arises as to how to allocate these various resources as quickly and efficiently as possible, while at the same time avoiding any risks of fraud and ensuring that public money serves its intended purpose, to the extent of creating a win-win situation and benefiting society as a whole.”

The Unity Card has a maximum value of €250 and works just like a regular debit card on payment terminals. The validity period can be adapted in function of the needs and intended support. Users can check the remaining value thanks to a QR code on the back, while an extranet allows the issuing authority to monitor, analyse, manage and even adjust the way its cards are being used, all in real-time. And thus, once again in this crisis, it’s new technologies that are offering relief in a situation which at first seemed insoluble.

“In a spirit of social commitment, our R&D teams wanted to make themselves useful against the horrors of the Corona virus. Ultimately, it’s the pragmatism and the potential of this solution which convinced us to set up the necessary partnerships to deploy it throughout Europe,” concludes Robert Masse. “The name, which of course stands for solidarity, came naturally, and we have decided to offer the first 5,000 cards to each of the municipalities that want to work with it, given that they’re the ones closest to the situation on the ground. Implementation costs are kept to a minimum and amount to a fraction of the usual costs of similar ‘traditional’ measures. Moreover, we do not take any margin on the transactions.”

The solution proposed by Loyaltek and Paynovate has proven its worth before in Germany at the time of the migration crisis, when authorities distributed thousands of similar cards to manage the allowances of Syrian refugees, allowing them to provide in their most basic needs by purchasing from local merchants.

The appearance of the Unity Card can be personalised if necessary. It is distributed either directly to the beneficiaries or by group transmission to the competent authority, which can then further distribute it. The payments made by citizens with the card are managed together with the rest of the merchants’ payment traffic, while cardholder support is ensured by Loyaltek or the ‘customer’ himself, i.e. the issuing authority.

Loyaltek NV is a European leader in limited range cards and manages numerous gift card and professional expense cards programmes in 14 countries. Its clients include Sodexo, Ingenico, Total and a great number of major commercial real estate players. They call on Loyaltek’s expertise for specific and technically advanced projects.

Paynovate NV is one of the six Belgian issuers of electronic money, regulated by the National Bank of Belgium and authorised to issue payment instruments in all European countries. Paynovate is also a principal member of Visa and Bancontact.

Banking

UnionBank bolsters COVID-19 ‘Stay-At-Home’ with range of digital services

Author ByCFI.co Blogger

In response to the Philippine government’s “Stay At Home” directive as part of the ongoing enhanced community quarantine, Union Bank of the Philippines (UnionBank) continues to process a growing number of digital transactions and remains business-as-usual (BAU), throughout the ECQ.

For the month of March, UnionBank logged a nearly 160% in daily sign-ups to its online and mobile banking portals, and enabled more than 500,000 credit card transactions and well over 1 million Instapay and PesoNet fund transfer transactions. Importantly, the bank waived all its fees on InstaPay and PesoNet since the start of the ECQ and has extended this to April 30.  

Most significantly, UnionBank also registered a tremendous surge in new accounts opened “100% digitally” through the UnionBank Online platform, as this was 2700X higher than year-ago levels.

These robust figures come amid reports from several consumer monitoring groups that the behavior of banking customers may be changing, preferring to use digital channels during the lockdown.

UnionBank president and CEO Edwin Bautista said the coronavirus crisis could be the turning point in customers’ shift-to-digital – to safely access their funds, do transfer, make payments and apply for credit.

 “This represents a tremendous new opportunity for banking in the country as this should reduce the number of Filipinos who remain unbanked.  As this happens, we at UnionBank are fully prepared with the digital infrastructure already in place to offer full banking services to more people, more conveniently and more cost-effectively,” Bautista said. 

Along with its digital platforms that enable the public to bank from home, UnionBank also rolled out its 5G-enabled mobile van called 5G-Bank On Wheels (5G-BOW) to serve people’s banking needs during the ECQ.  

With its 5G-BOW clients can withdraw, pay bills, transfer funds, open an account and do balance-inquiries with faster, more robust bandwidth and internet connections, powered by its unique 5G technology.

In terms of its brick-and-mortar branches, UnionBank was able to keep 94% of its branches open, outside of those in medical quarantine and local lockdown areas; while safely keeping close to 90% of employees working from home in compliance with government guidelines.

Digital Banking

How can cloud-based analytics help banks drive digital transformation?

Author ByCFI.co Blogger

By Paul Jones, Head of Technology, SAS UK & Ireland

Fintechs are turning up the heat in retail and corporate banking. As smaller, more agile providers have entered the banking market, customers are getting used to a higher level of service – a personalised, digital experience that guides them to make quicker, smarter decisions about their finances. For traditional banks to compete, they need to transform the way they operate. On the retail banking side, that means digitising customer-facing services. No queuing in branches, no paperwork. And when customers apply for a credit card or loan, they get a decision in seconds.

Meanwhile, on the corporate side, the aim of transformation is often to enable an everything as a service (XaaS) strategy, building smart packaged offerings such as treasury as a service or risk management as a service, which the bank can both consume in-house and provide to enterprise clients.

Data-driven digital transformation

To foster this type of digital business transformation, banks need to redesign both internal and customer-facing processes to embed data-driven decision making. By integrating intelligent automation and decisioning capabilities into their operations, banks can eliminate paperwork and manual processing. This will greatly improve service levels to customers while keeping the cost-to-serve to a minimum.

The creation of these data-driven services depends on the ability to design, build, test and deploy processes that embed predictive models using both well-established statistical methods and new artificial intelligence and machine learning (AI/ML) techniques. The development life cycle for these models is inherently experimental. It’s vital to try different approaches, test the results, and iterate on the candidates that offer the greatest potential. To remain relevant in the digital age, organisations must deliver such experiments with agility and speed.

The obstacle of legacy infrastructure

The problem is that banks’ traditional IT architectures – built around legacy on-premises systems – are a uniquely bad environment for developing these models. Due to the experimental nature of the models, it’s very difficult to forecast what type of infrastructure banks will need for upcoming projects. For example, different machine learning algorithms run best on hardware that has been optimised for that category of model building. If you invest in a cluster of servers with a particular configuration of memory and processors, it may only be suitable for a small subset of the work you actually need to do. And every time you need to change your approach, you’ll face high fixed costs and a long lead time to get the right infrastructure in place.

Instead, you need an IT architecture that allows you to set up experiments quickly and manage them flexibly. When an idea doesn’t work out, you should have the ability to fail fast and cut your losses. And when an idea succeeds, you need to get it into production rapidly and roll it out for enterprise-scale deployment.

The promise of cloud-based analytics

The cloud is the perfect environment for these exploratory projects. It gives you the freedom to spin up almost any type of infrastructure within minutes, and either scale it or shut it down instantly depending on the results.

Cloud environments also free you from dependencies on departmental silos and the quirks of your internal network. They give you a green-field site where cross-functional teams can collaborate freely, enabling you to build models that combine domain knowledge from different areas of the bank and create opportunities for XaaS offerings that would never have been possible in the past.

Regulatory hurdles

While most of the major public cloud providers now offer a range of analytics-specific infrastructure services, they come at a price. Once your data and models live in a particular proprietary cloud repository, they can be difficult to get out again. You’re locked into their infrastructure for the foreseeable future.

Besides the commercial implications, this lock-in poses a major regulatory problem for banks. According to the latest consultation paper on outsourcing and third-party risk management from the Prudential Regulatory Authority (PRA), regulators expect banks to be able to port any outsourced services over to another provider or bring them back in house without any risk to business continuity.

The right tool for the job

I’ve had conversations about moving to the cloud with CIOs at banks of various sizes, and this issue of portability has been a recurring theme. They are looking for analytics solutions that work with any vendor and run on any cloud platform – or move between platforms – without significant disruption. In fact, since many banking use cases involve analysing data that is too sensitive to store outside the internal network, one of the most-requested offerings is a hybrid cloud/on-premises solution. Banks could then perform experimental projects with anonymised data in the cloud and then bring the successful models back into their own data centre for deployment in production.

Finally, while there’s a lot of buzz around AI/ML techniques, it’s important to recognise that they are not always the best option. Traditional statistical methods can be equally powerful, cost less to maintain, and can be easier to explain and audit – an increasingly important capability, as a recent legal case in the Netherlands demonstrates. My advice is always that banks should look for a single platform that gives equal support to both statistical and AI/ML modelling techniques and provides easy-to-use visualisations that make models easier to interpret. This allows your data scientists to pick the best tool for the job. And makes it easier for you to ensure the safe and responsible use of your data.

We’re working with a number of leading banks to power their digital transformation initiatives and build towards the XaaS future in the cloud. Find out more about what’s possible with cloud computing.

Corporate Finance

The Volvo Group and Daimler Truck AG to lead the development of sustainable transportation by forming joint venture for large-scale production of fuel cells

Author ByCFI.co Blogger

Sharing the Green Deal vision of sustainable transport and a carbon neutral Europe by 2050, two leading companies in the commercial vehicle industry, Daimler Truck AG and the Volvo Group, have signed a preliminary non-binding agreement to establish a new joint venture. The intention is to develop, produce and commercialize fuel cell systems for heavy-duty vehicle applications and other use cases. Daimler will consolidate all its current fuel cell activities in the joint venture. The Volvo Group will acquire 50% in the joint venture for the sum of approximately EUR 0.6 billion on a cash and debt free basis. 

“Transport and logistics keep the world moving, and the need for transport will continue to grow. Truly CO2-neutral transport can be accomplished through electric drive trains with energy coming either from batteries or by converting hydrogen on board into electricity. For trucks to cope with heavy loads and long distances, fuel cells are one important answer and a technology where Daimler has built up significant expertise through its Mercedes-Benz fuel cell unit over the last two decades. This joint initiative with the Volvo Group is a milestone in bringing fuel cell powered trucks and buses onto our roads,” says Martin Daum, Chairman of the Board of Management Daimler Truck AG and Member of the Board of Management of Daimler AG.

“Electrification of road transport is a key element in delivering the so called Green Deal, a carbon neutral Europe and ultimately a carbon neutral world. Using hydrogen as a carrier of green electricity to power electric trucks in long-haul operations is one important part of the puzzle, and a complement to battery electric vehicles and renewable fuels. Combining the Volvo Group and Daimler’s experience in this area to accelerate the rate of development is good both for our customers and for society as a whole. By forming this joint venture, we are clearly showing that we believe in hydrogen fuel cells for commercial vehicles. But for this vision to become reality, other companies and institutions also need to support and contribute to this development, not least in order to establish the fuel infrastructure needed,” says Martin Lundstedt, Volvo Group President and CEO. 

The Volvo Group and Daimler Truck AG will be 50/50 partners in the joint venture, which will operate as an independent and autonomous entity, with Daimler Truck AG and the Volvo Group continuing to be competitors in all other areas of business. Joining forces will decrease development costs for both companies and accelerate the market introduction of fuel cell systems in products used for heavy-duty transport and demanding long-haul applications. In the context of the current economic downturn cooperation has become even more necessary in order to meet the Green Deal objectives within a feasible time-frame.

The common goal is for both companies to offer heavy-duty vehicles with fuel cells for demanding long-haul applications in series production in the second half of the decade. In addition, other automotive and non-automotive use cases are also part of the new joint venture’s scope. 

To enable the joint venture, Daimler Trucks is bringing together all group-wide fuel cell activities in a new Daimler Truck fuel cell unit. Part of this bundling of activities is the allocation of the operations of “Mercedes-Benz Fuel Cell GmbH”, which has longstanding experience in the development of fuel cell and hydrogen storage systems for various vehicle applications, to Daimler Truck AG. 

The joint venture will include the operations in Nabern/Germany (currently headquarters of the Mercedes-Benz Fuel Cell GmbH) with production facilities in Germany and Canada.

The signed preliminary agreement is non-binding. A final agreement is expected by Q3 and closing before year-end 2020. All potential transactions are subject to examination and approval by the responsible competition authorities.

Facts: Fuel cells and hydrogen as fuel
•  A hydrogen fuel cell converts the chemical energy of the fuel, in this case hydrogen, and oxygen (in the air) into electricity. The electricity powers the electrical motors that propel an electrical vehicle. 
•  There are two main ways to produce the hydrogen needed. So-called green hydrogen can be produced locally at the gas station, using electricity to convert water into hydrogen. Blue hydrogen is expected to be produced from natural gas, utilizing carbon capture technology to create a carbon neutral fuel.

2020-04-21

For further information, please contact:
Claes Eliasson, Volvo Group Media Relations, +46 31 323 72 29
Florian Martens, Daimler Trucks & Buses Media Relations +49 160 8687552

Technology

How Has The Outbreak Of COVID-19 Impacted the Horse Racing Industry?

Author ByCFI.co Blogger

There aren’t many sports that have been hit harder by the outbreak of COVID-19 than horse racing. Some of the biggest events on the racing calendar have already been lost, while some remain hanging by the thinnest of tightropes.

How Has The Outbreak Of COVID-19 Impacted the Horse Racing Industry?

Racing continues to take place in Australia, the USA and various parts of Europe, but not all countries have been as fortunate. The lucrative industry has been hit as most of businesses have, even though online gambling seems to be on the rise due to the self-quarantine inflicted to millions of people.

 However, which events on the horse racing calendar have been lost, which ones have face criticism, and which have been re-arranged for a later date?

Kentucky Derby

Few would argue against the Kentucky Derby being the biggest race of the year, and it is huge for the American industry. That is highlighted by the amount of money that is gambled on the race day, with the 2019 event eclipsing records. The 14-race card saw over $227.5 million gambled, while the Kentucky Derby itself saw around $150 million worth of bets. The Kentucky Derby is the most attended event on the US racing calendar, and that meant that cancelling the event altogether wasn’t an option.

Instead, for the first time this year, the Kentucky Derby will be taking place as the final event of the Triple Crown as opposed to the first. The event was cancelled in March, as it was revealed that it would instead take place on the 5th September. Nonetheless, you can still place your bets on the Kentucky Derby through Twinspires.com.

This marks the first time since 1945 that the event has been suspended. The Preakness Stakes and Belmont Stakes are still slated to go ahead on their original dates.

The Grand National

The most lucrative betting day in the United Kingdom didn’t go ahead as planned for the first time since the Second World War. The decision to cancel the event meant that the betting industry in the UK lost half a billion pounds, while Tiger Roll missed his opportunity at making history by becoming the first horse to win three successive Grand Nationals.

The horse racing industry did still put a show on for racing fans however on Grand National day on the 4th April, as a virtual race was broadcast, with all proceeds going towards the NHS. The event raised £2.6 million for the service, while the virtual race was won by Potters Corner.

Cheltenham Festival

Just a few weeks before the Aintree Festival, there was the Cheltenham Festival, which is the most prestigious jumps festival of the year. That event went ahead as planned, but organisers have already drawn criticism for their decision to do so.  There were reported symptoms shown by some that attended; including Andrew Parker Bowles.

However, the Jockey Club reiterated that they accurately followed all the guidelines that were put in place by the British government at the time. The Cheltenham Gold Cup on Friday 13th March was the final noteworthy sporting event to take place in the UK as the Premier League announced that it would be suspending fixtures on the same day.

Royal Ascot

The biggest flat festival of the season in the UK is still planning to go ahead as planned, but this year it will take place behind closed doors. The event is famous for those attending to get dressed up smart, while Queen Elizabeth has been known to visit most days. The festival is due to begin on the 16th June, but the announcement that it would be taking place behind closed doors was made on the 7th April.

The organisers admitted that they were pressing ahead with the event, but no spectators would be able to attend. However, the statement released also admits that there is still a chance that the event may not take place at all. The organisers will have to follow the guidelines by the British government and the BHA, who have currently suspended all racing in Britain until the end of April.

Economics

Three investment reasons to be cheerful amid the economic upheaval

Author ByCFI.co Blogger

Right now the world is facing the worst economic downturn since the Great Depression and many people across the world are going through extremely hard times.

But we also need to try and focus on the compelling positives there are now to create, build and safeguard money to reach our financial goals for ourselves and our loved ones.

The message from Nigel Green, founder and CEO of deVere Group, one of the world’s largest independent financial advisory organisations comes as the International Monetary Fund (IMF) projects global growth in 2020 to fall to -3 per cent. This is a downgrade of 6.3 percentage points from January 2020, clearly a significant downward revision within a very short time period. 

Nigel Green comments: “The world has changed considerably in the first quarter of 2020. Coronavirus has sparked a truly global crisis like no other, with a horrifyingly high and tragic number of human lives lost. 

“It has also been a monstrous source of economic upheaval and uncertainty for households, businesses and governments.

“But in these most unusual of times, it’s essential to seek the positives and there are increasingly significant reasons within the market to be cheerful. 

“Looking beyond the gloom, many investors are using these to create, build and safeguard their money right now.”

He continues: “I believe that there are three main investment reasons to be cheerful.

“First, the market is cheap by historic standards and this represents a major, perhaps once-in-a-generation chance to buy top quality equities at lower prices to bolster investment portfolios.  History shows that stock markets always go up over time.

“Second the worldwide loosening of monetary and fiscal policies.  This will serve as a bridge for economies until the crisis passes and will go a long way to boost both supply and demand across all sectors. In turn, this will lead to more investment, increased confidence, and longer-term job and wealth creation.

“Third, pent-up demand will hit the global economy when lockdowns are lifted. Many people have not lost their jobs or suffered reduced incomes and have saved money during the lockdown. We can expect demand in sectors such as autos, travel, hospitality and entertainment to be strong.”

Whilst some investors appear to have not only locked down themselves, but also their financial strategies, increasingly both retail and institutional investors are “rightly looking beyond only the dark picture,” says Mr Green.

The deVere CEO concludes. “No economy – developed or emerging – has been spared this downturn, the worst since The Great Depression. The uncertain economic landscape is impacting on people’s lives and livelihoods.

“However, I also would urge investors to mitigate risks to their money and help create and grow wealth by looking towards the undeniable and compelling positive areas amid this tragic and unprecedented global situation.” 

Technology

Online Gambling Industry rising as a consequence of the COVID-19 pandemic

Author ByCFI.co Blogger

We are living in unprecedented times with a global pandemic that has killed hundreds of thousands and countries all over the world ordering their citizens to self-quarantine. 

With the suspension of all but the most critical industries business owners and governments alike are preparing for the arrival of a global recession – one which is feared to be far more devastating than the Great Depression and the 2009 Global Financial Crisis.

Given that COVID-19 spreads via water droplets expelled from an infected person,social distancing measures have been implemented in order to help break the chain of infection with many governments enforcing a strict curfew.

Online Gambling Industry rising as a consequence of the COVID-19 pandemic

Now with the United States becoming the epicenter of the pandemic, entire industries including casinos have been left in a lurch. According to a report by the American Gaming Association (AGA), the industry is slated to lose an estimated $21.3 billion in direct spending from consumers alone. 

Here, we take a look at how we can expect the outbreak of COVID-19 to change the face of online gambling.

1. A Massive Increase in Customers

In early-April, Nevada’s Clark county reported more than 1000 COVID-19 cases and almost 30 deaths which prompted Governor Sisolak to order a shutdown of all casinos in the state despite severe pushback from various stakeholders including the Mayor of Las Vegas, Carolyn Goodman (I). 

With almost all casinos in the United States shutdown, punters all over the country have turned to online gambling for all of their gaming needs. This has resulted in a windfall for online casinos everywhere with a nearly 50% increase in revenue with punters avoiding land-based casinos in favour of online ones.

Given that the COVID-19 pandemic has shown no signs of letting up and with a vaccine far off, the remainder of 2020 and 2021 is set to be a good year for the online gambling industry. 

As the global economy grinds to a halt and uncertainty reigns supreme, many have begun to ask the question – will things ever be the same again? According to many experts, the answer is a resounding no. 

The highly contagious nature of the COVID-19 virus and the variety of health complications means that social distancing measures will have to be practiced for the foreseeable future or until a vaccine is developed – which is highly unlikely.

Until a solution is found, it is highly likely that online casino betting will be able to enjoy an unprecedented increase in customers.

2. The Entry of New Competitors

While some may point out that casinos in Macau – the world’s largest gambling hub were able to resume operations after just 15 days, the stark reality is that things are far from normal. Casino floors are relatively empty and foot traffic remains low with many punters staying away from crowded areas.

Given the relatively low-barriers for entry and a market filled with investors hungry for opportunity, it is only a matter of time before new competitors begin appearing on scene. This can potentially be a problem for current online casinos who may want to consider diversifying their range of games offered.

With sports betting also affected by the lockdown, punters have begun turning towards online casinos and slot games for their gambling needs which may in turn encourage bookmakers to open up their own online casinos in order to capitalize on shifting market demands.

3. Stricter Compliance

Casinos and other gambling outlets have always been closely monitored and regulated by government bodies given the nature of the business. Now with the economy taking a turn for the worst and with jobs at stake, people are likely to be more anxious and stressed which in turn leads to compulsive gambling and other risky behavior.

This has forced governments everywhere to introduce more stringent regulations with regards to gambling, these measures have included restricting advertising, minimizing payouts and even banning gambling outright in some areas.

Given the current state of affairs and the increased levels of vigilance, online casinos and gaming sites may begin imposing limits on bet sizes and practice more thorough screening of punters. 

4. Potential cash flow issues

Whilst the online casino business is and has always been a solid one, it is not entirely recession-proof. As businesses all over the world shut down or scale back on their operations, employees and business owners everywhere face the very real prospect of losing a significant portion of their incomes.

This in turn overlaps onto the online betting industry as punters begin to suffer from problems related to cash flow. Initially, the effects may not be tangible as we are yet to feel the true impact of a pending global recession.

Only when businesses begin to shut down and unemployment numbers rise 6 to 8 months down the line, will we begin to see a drop in revenue and takings. Consequently, operators should seriously consider putting aside cash reserves for the lean months ahead in order to stay afloat.

As the old proverb goes, “All Good Things Must Come to an End”, so will the windfall from the sudden influx of new punters. The COVID-19 pandemic is unlike anything that humanity has seen in over a century and even the most resistant of industries will not be safe.