Don’t Gamble With Your Future: Why Everyone Needs a Financial Advisor

50% of Americans don’t have anything saved for their retirement. Another 34% have nothing in their savings account at all. Part of this problem is the inability to understand personal finance and planning. A financial advisor is trained and experienced in the art of how to save and use your money.

Personal financial planners help everyone from recent graduates to those trying to save for their retirement. While they aren’t free, the money they can potentially save you, in the long run, is worth their advice.

Keep reading to learn more about planning your future and why you need a financial advisor.

Ignoring Your Finances Will Not Make Them Better

Besides the obvious fact that ignoring your finances will not make them better, it will also negatively affect your well-being. One study found that how you perceive items like your current financial situation as well as how well you’ve planned for the future, affects your well-being. These perceptions about your financial state impact everything from your job satisfaction to your physical health.

Needless to say, then, if your finances aren’t in order, the idea of going through them is probably scary. And that’s especially true if you know you’re in a lot of debt, but you’re not sure how much (or how to get out of it). 

The solution to that problem is not to ignore the issue but to tackle it before things get even worse. If you don’t know where to start, that’s where a financial advisor comes in.

More Money

Tackling your money problems with a financial advisor leads us to the next reason you should consult a financial advisor. That is, a financial adviser might actually be able to put more money in your pocket.

Financial advisors help you accomplish this in three ways:

  • They help you manage your income more effectively. 
  • They help increase your cash flow through tax planning, expenditure monitoring, and careful budgeting.
  • They increase your capital by increasing cash flow for potential investments

Overcoming Personal Biases

The benefit of managing your own money is how much you save. But the main disadvantage of having sole insight into your finances is that you have personal biases that are difficult to overcome.

Your biases impact your decisions, and that includes important financial ones. For example, people who lost money in the tech bubble in 2000 might be reluctant to reinvest in this sector, even if the potential for return is great. A financial planner can help you overcome those personal barriers.

At the same time, a financial advisor can help guide you through difficult financial situations wherein your emotions can get the best of you. If you’ve invested in the stock market, for example, a steep decline in the market may lead you to panic where a financial planner knows when to stay calm. With their experience, you can make logical and reasonable decisions with your money even throughout tough financial times. 

A Trustworthy Relationship

You can – and should – trust your financial advisor. These are professionals who have taken a fiduciary oath. That is, they are legally bound to putting your needs before their own.

Some financial advisors are also C.F.P. board certified. This certification indicates that your financial advisor follows a certain level of competency standards set by the Certified Financial Planner Board.

A Financial Planner Can Help You Achieve Long Term and Short Term Goals

Financial planners do exactly what their name indicates: they help you plan your finances for both the long and short term. If you, like most people, struggle to set, prioritize and reach your financial goals, a financial planner will show you how to reach your long and short term goals.

In the long term, a financial advisor can assist with paying off student loans, maximizing your 401k, or becoming consumer debt-free. In the short term, a financial planner helps with building emergency funds, paying for a wedding, or buying your first property.  

Plus, you’ll learn from your financial advisor and the plan they help you build. When you help create a financial plan, you follow it closely, and you reap the results, you’re perspective on controlling your finances is likely to change.

Professional Advice and Knowledge

Let’s be honest, you might know how to set up your online bank, you might even have tried your hand at playing the stock market, but you’re not an educated, certified, or experienced financial professional. A financial advisor has the credentials to handle all of the nuances of your finances and to find things that you’re likely to overlook.

A financial advisor will take an unbiased and holistic look at your finances and offer advice on where you can improve your savings and cash flow. But they can also help you with more complicated financial items like taxation, estate planning, and how to handle your debt.

Keep in mind, too, those finances are dynamic. They’re impacted by volatile markets and economic cotexts that grow and change. Your financial advisor helps you plan for those transitions and changes – and for the ones in your own life (i.e. retirement, career changes, etc.).

More Advice Than a Financial Advisor

Visiting a financial advisor is a good idea at all stages of life, regardless of your financial situation. Whether you’re ready to start saving for retirement, you’ve just graduated from college, or you’re preparing to buy your first property, a financial advisor can help you achieve those goals. 

While the cost of a financial advisor is a hindrance for some people, a financial advisor can actually help put more money in your pocket. They can show you how to better use your income, ultimately increasing your cash flow and your capital. 

But for even more advice than a financial advisor can give you, check out our financial advice blog. It’s full of all the financial information one could need.

NDB Board of Directors meets in Shanghai, approves three projects with loans aggregating to USD 937 million

On December 2, 2019, the 22nd Meeting of the Board of Directors of the New Development Bank (NDB) was held in Shanghai, China.

The Board approved three projects with loans aggregating to approximately USD 937 million, bringing the NDB’s portfolio to 49 projects with loans aggregating to USD 13.7 billion.

Hubei Huangshi Modern Tram Project

The NDB will provide a loan of RMB 2.76 billion (approx. USD 400 million) to the People’s Republic of China for Huangshi Modern Tram Project. It will address urban transport connectivity problems in Huangshi, a municipality in the southeastern part of Hubei Province, through the construction of a modern tram network with a total length of 27.33 km. The components of the Project include: i) laying of tracks, construction of stations and installation of associated facilities for the tram network; ii) procurement of rolling stock; and (iii) consultancy support for commissioning, preparation of operations and maintenance plan, capacity building and project management.

Manipur Water Supply Project

The NDB will provide a loan of USD 312 million to the Republic of India for Manipur Water Supply Project. It will address serious challenges in clean drinking water supply in Manipur, a small mountainous state in the northeastern region of India, through construction and upgrade of drinking water supply infrastructure. The components of the Project include construction and upgrade of drinking water supply systems in: i) Imphal Planning Area, the capital city of Manipur; ii) additional 25 towns; and iii) 1,731 rural habitations.

Indore Metro Rail Project

The NDB will provide a loan of USD 225 million to the Republic of India for Indore Metro Rail Project. The Project is to implement a metro line of approximately 31 km in the city of Indore. The Project will provide mass rapid transit capacity for the city’s major mobility corridors, thereby contributing to local economic development and an improved urban environment by reducing traffic congestion and pollution.

The Board also approved technical assistance totaling to USD 0.7 million for two projects from India and Russia.

Mizoram Tuirini Small Hydro Project

The NDB will provide technical assistance of USD 300,000 to the Republic of India for Mizoram Tuirini Small Hydro Project. The NDB’s technical assistance will provide consulting services aimed at preparing the Mizoram Tuirini Small Hydro Project. The project envisages construction of a small hydropower plant with an installed capacity of 24 MW in the state of Mizoram, to increase installed power generation capacity of Mizoram.

Krasnodar Cable Car Project

The Bank will provide technical assistance of USD 400,000 to the Russian Federation for Krasnodar Cable Car Project. The NDB’s technical assistance will provide consulting services aimed at preparing the Krasnodar Cable Car Project up to the stage when it can be considered by external financiers to seek approval for its financing. The project envisages the construction of a cable car network to be used as an alternative public transportation modality in Krasnodar city, Russia to relieve traffic congestion.

It is the first time that the NDB Board of Directors approved the provision of technical assistance through the Bank’s Project Preparation Fund (PPF), a multi-donor fund open to contributions by all the Bank’s members. The PPF’s objective is to support preparation of bankable projects to facilitate borrowing member countries to raise funds for such projects from the NDB or other multilateral development banks.

During the Meeting, an update on the NDB project pipeline and status of approved projects was provided to the Board. The Board also discussed matters pertaining to equity investments, funding programme, treasury related matters, membership expansion, review of NDB’s General Strategy: 2017-2021 and development impact of the Bank’s operations.

On December 2, 2019, the 13th Meeting of the Audit, Risk and Compliance Committee (ARC) of the New Development Bank was held in Shanghai. The ARC reviewed Quarterly Audited Financial Statements for the New Development Bank and the Project Preparation Fund of the NDB for the period ended September 30, 2019. The ARC also discussed matters pertaining to risk, internal audit and compliance.

The 8th Meeting of the Budget, Human Resources and Compensation Committee (BHRC) of the New Development Bank was held on December 2, 2019.  The Committee considered the Budget Utilisation Report for CY2019 and the Proposed budget for CY2020 as well as the three Year Budget for 2020-2022. The Committee also discussed matter pertaining to recruitment and diversity.

Background Information

The NDB was established by Brazil, Russia, India, China and South Africa to mobilize resources for infrastructure and sustainable development projects in BRICS and other emerging economies and developing countries, complementing the existing efforts of multilateral and regional financial institutions for global growth and development. To fulfill its purpose, the NDB will support public or private projects through loans, guarantees, equity participation and other financial instruments. According to the NDB’s General Strategy, sustainable infrastructure development is at the core of the Bank’s operational strategy for 2017-2021. The NDB received AA+ long-term issuer credit ratings from S&P and Fitch and AAA foreign currency long-term issuer rating from Japan Credit Rating Agency (JCR).

How Many Bank Accounts Should I Have? (At Least Three)

In the past, people had a checking account and a single savings account. But those were the days when you paid by check and had to go into the branch to do any banking.

Times have changed! We can now send and receive money with a click of a button on your smartphones. So why are we still stuck in the same account habits? 

If you’ve asked yourself, “how many bank accounts should I have?” read on. We’ve got all the answers. 

How Many Bank Accounts Should I Have?

The average American has between $6000-$9000 in their checking accounts. But if you are one of those people, your money isn’t working as hard for you as it could be.  

The great thing about multiple bank accounts is that you can separate your money for different purposes.

You can keep your money that is reserved for a vacation or emergency car and home repairs separate from your account that pays your monthly bills.
When your money is altogether in one lump sum, it is easier to spend money on things it wasn’t intended for.

Keep in mind that having multiple accounts is only beneficial if you aren’t paying a lot in fees and if the account doesn’t have minimum balance requirements. 
Here are some of the best ways you can separate your money into various accounts. 

Accounts for Saving

A savings account has many useful benefits. For one thing, these accounts tend to offer you higher interest rates.

Sometimes, these accounts place limits on how often you can withdraw from them. This might help you think twice about taking money out of your savings.
A lot of people have two different bank accounts: one savings and one checking.

But, two or more savings accounts are very useful for people who live paycheck to paycheck. Two or more savings accounts is a digital version of the jar saving system.

But instead of separating your savings into a jar labelled, car, school, and vacation, you have multiple accounts.
Here are some of the saving accounts you might have. 

Emergency Fund

An emergency fund is a separate saving account that you use to save for unexpected costs.

For example, you could stash some funds in this account to save for job loss, unexpected car repairs and so on. Experts recommend 3-6 months of income be saved in this account. 

Treat this account like a fire extinguisher in a glass case. You only break the glass and take out your money in a true emergency.

To grow this account, set an automatic transfer from your checking account on payday. It’s fine if you only deposit a little bit into this account each time you get paid. Over time, this fund will grow.

Short-Term Savings

A separate savings account can be set-up for your short term saving goals such as money for Christmas presents, a holiday or specific expenses like new tires for your car.

The goal of this account is to keep your money safe from accidental spending. You might have one for all your short-term saving goals, or you may prefer to have one for each goal.

The great thing about online banking is that you can name your accounts whatever you want. So you can make it clear what the purpose of each account is. Try to put a set amount into this account each pay period.

One way to help you stay on track is to figure out the total amount you need and when you need it by. Then divide that number by how many paychecks you’ll get until the goal date. This helps you figure out exactly how much money you need to set aside each pay to reach your goal on time.

Like the emergency fund, you do not use this money for bills, going out to eat or other superfluous expenses.

Long-Term Savings

You should also have an account for your long-term savings. You can save for things such as retirement or post-secondary education.
A regular savings account might not be the best place to grow your money.

Learn about investment management to help your money the most.

How Many Checking Accounts Should I have?

Now let’s talk about checking accounts. These accounts allow unlimited transactions such as withdrawals and purchases.

You may opt to have one checking account where you do all your spending. This means your paycheck gets deposited into this account. You also pay your bills from this account and buy groceries, gas for your car and go out to dinner from this account.

You can see how this may be problematic. The last thing you want is to spend money only to realize that now you don’t have enough for your rent or mortgage.
One of the best ways to avoid this is by having two checking accounts.

One account should be for your incoming funds such as paychecks. You should keep the funds you need for all your monthly bills in here.

Then, move the remainder of your money to a separate checking account. This is the account you can use for day-to-day spending. By doing this, you avoid spending money meant for your bills.

Final Words

There you have it. A complete guide to help you answer the question: “how many bank accounts should I have?”

Keep in mind that you may need to adjust this guide to suit your specific financial situation. You might find you need fewer accounts than we’ve suggested.

As long as you have a system that lets you divide your money into manageable and purposeful ways, that’s all that matters.

At CFI.co, we report on business, economics and finance to give you the information you need. Learn more about CFI here.

The Top 7 Best Private Banks Around the World

Exclusivity comes with a winnowing set of risk and a growing set of rewards. It costs money to reach for higher financial status, but obtaining such comes with a bevvy of perks.

It gets harder to manage everything the higher up you go, which is why specialized services come into being. Among the most broadly useful special services for the wealthy is the private bank. A place to house your wealth where it does work instead of collecting dust.

These banks offer more to their clients than other banking organizations. They offer fine-tuned control and added value to the banking experience, which explains why the largest private financial organization takes care of over 2 trillion USD

But which bank does one chose for their own needs? A lot of factors go into making such a choice but this list will provide criteria and options. 

Private Bank Offerings

The majority of what exclusive banks offer is hands-on experience and attention. Instead of dealing with a banker that deals with dozens, if not hundreds, of accounts, each getting a bit of nodding and hand waving when customers ask about their interest rates or money, a private bank offers professionalism.

Wealth Management

The growth and management of wealth ranks among the best private banking services. 

The overlap between wealth management services and private banking is so large that it’s more worth mentioning how they are different. The largest benefit of a bank over a management service is accessibility.

Finances in a bank are more available in a moment without taking time to untie or vest before moving. Not all funds deposited stay completely accessible, but more so than with a management service. 

Dedicated Personnel

Instead of having one banker with quotas and customers, you gain access to a dedicated person looking after you. This person may even be a team of people, depending. Their job is to work with you and your wealth to increase your bottom line and keep you aware of opportunities for growth.

You save time through individual attention. No going through a file each time you call to remember who you are. They know you and your needs on a personal level.

Dedicated Attention

The attention you receive from a personal representative bleed over into personal assistant territory. They anticipate your needs and offer additional help in planning and creating.

Network of Specialists

Your personal banker and banking team also bring you the benefit of other specialists. At some point, you will need to encounter and deal with tax attorneys, trust managers, and estate advisors. 

your personal banker can offer referrals for each of these that they have personal experience working with. This saves you the time to vet and research for these people.

Perks in Pricing

Offerings, in terms of services, from a private bank contain everything you would see at a lower bank but with incentives woven throughout.

You can expect to see discounts and freebies on some services. It’s quite common to be offered free personalized checks or a safe-deposit box. While it’s not everything, can save upwards of $300 annually on a box.

Of course, most private banks have some fees for their services but it’s nice to see the value additions they supply.

Private Bank Profiles

Now that you have an idea of what types of services you’ll find in a private bank, you can evaluate the following. Each of these excels in their service, security, and returns tho their clients. 

1. DBS Private Banking

This Singapore-based institution offers top-class digital transformation. They have trademarked the term iWealth to show their dedication to digital movements.

Their personnel are well versed in tech and connected to Asian and pan-Asian markets that seek to expand influence through the region. They’ve shown impressive growth in the last few years as well, jumping over 31% in assets in 2018.

2. J. Safra Sarasin

For those looking for a social-minded banking experience, Sarasin leads in programs bolstering societal goals. 

The bank has been in operation since 1841 as a family-owned business. They have spent the better part of three decades building a reputation for sustainable technology. 

They’ve grown while doing so, 23% in 2017 alone. They show that responsibility and social awareness can be profitable endeavours.

3. U.S. Trust

This top private bank offers a somewhat different set of offerings than others. Rather than focus on business owners and hairs, they work with executives and heads of industry.

The bank itself is part of a structure, as such, it is more branding than individual institutions. They work on stock options and retirement benefits for industry employees, which gives them substantial assets. Ideally, they work most often with C-Suite executives. 

4. UBS

The top holding private bank is the world’s largest financier. It gained this honour after smart mergers between its U.S. management and its international operations. together they aim to provide the best and most complete investment and client services. 

5. BBVA

Most private bank accounts start at $1 million in holdings. A few offer accounts for less, especially to financial movers, those with a definite possibility of increasing their portfolio rapidly.

BBVA works with a floor of $340,000. 

Currently, it is involved with large housing markets in Spain and holds a presence in Latin American markets. These growing sectors provide new investment opportunities for clients. 

6. Citi Private Bank

On the other hand, if you are looking to work with much more than the minimum, Citi Private is looking for that demographic. The bank caters to those with $25 million or more in assets.

They operate with a global strategic view, considering their high-end clients to be global citizens.

They work with multimillion-dollar investments and huge, intricate hedge funds. Their growth of 18% in 2017 shows they know who to influence and call shots.

7. Pictect

For those looking for something a bit more local, Pictect caters to the Western European market. An old-line Swiss bank in operation since 1805 with a foothold in Asia. 

They work it old school, using investment banking and cross-selling of credit to bolster dividends. Pictect offers a small, cosy feel with a lot of clout in the world.

Finance a Future

Few people get to experience the thrill of shopping for a private bank. It’s not everyone that has the assets to qualify for joining one of these venerable institutions. 

For further information on the banking industry and its impacts, read more here

Cardstream Works With Banking Circle To Create Unique Lending Service

Joint white label solution allows Cardstream’s Partners to offer their merchants flexible and affordable business loans

www.bankingcircle.com

London, November 2019 – Independent payment solutions provider, Cardstream, has partnered with Banking Circle to pioneer a unique joint white label lending solution. Each of Cardstream’s more than 200 Partners provides payment services to many hundreds of SME merchants. Now, with the launch of this new initiative, they can offer these merchants access to affordable, flexible business loans which could make the difference between their success or failure.

To help smaller businesses access essential business financing more easily, Banking Circle entered the SME lending sector in 2018, launching Banking Circle Lending and Banking Circle Instant Settlement. These revolutionary new solutions were built in response to an SME study involving more than 500 businesses, which revealed the impact of high interest rates, high arrangement fees and inflexible repayment options when accessing funding through traditional lenders.

Cardstream identified that the Banking Circle Lending solutions would provide an important added-value for its Partners as CEO Adam Sharpe explained:

“Cardstream’s Partners enjoy strong and trusted relationships with the merchants to whom they provide our white labelled payment gateway service under their own trusted brand. Now, with this new service developed with Banking Circle, they can offer loans to any of their merchant customer businesses based on their online payments revenue.

“The loans are risk free to the Partner, who is able to retain a share of the revenue generated if this falls within its business model and merchant agreement. We believe it’s a win-win for both sides.  The Partner enhances its merchant relationships and the merchants have quick access to valuable funding, whether to fill a cashflow gap or to support business growth.”

Anders la Cour, co-founder and Chief Executive Officer of Banking Circle added: “Banking Circle is committed to providing market infrastructure as a real alternative to traditional banking solutions, with the aim of increasing financial inclusion. As part of this, we wanted to deliver a more accessible lending solution for businesses in need of a financial boost.

“Now, through our partnership with Cardstream, more than 200 payment providers have access to our unique lending solution, meaning tens of thousands of small businesses can access the cash they need to expand, restock or simply survive a quiet period. In the past, these SMEs would have been unable to borrow the vital funds, which could have meant letting employees go or even business failure.”

About Banking Circle

Banking Circle is a next-generation provider of mission-critical financial services infrastructure leading the rise of a super-correspondent banking network. Banking Circle empowers banks and financial tech businesses to support customers’ trading ambitions – domestic and global – whilst reducing risk and the operational cost of transactions. Banking Circle solutions are increasing financial inclusion by helping thousands of businesses transact across borders in a way that was previously not possible.

In 2013 Saxo Bank formed a new entity, Saxo Payments A/S, with the purpose of using Saxo Bank’s core capabilities within the non-cash payments market. In October 2015 the company launched the Banking Circle – its ground-breaking product for payments and FX to the Financial Tech industry. In October 2017, the company launched its new identity for Banking Circle, to reflect its position as a financial utility, servicing Financial Tech businesses and banks. In September 2018, Banking Circle was acquired by EQT VIII and EQT Ventures, in partnership with Banking Circle’s founders.

Domiciled  in the European Union, Banking Circle specialises in providing global banking services including accounts, payments, lending and foreign exchange services to financial institutions, including FinTechs, banks, acquirers, payment service providers, FX brokers, money transfer businesses, e-wallets, and alternative payment providers.

About Cardstream

FinTech success Cardstream is the UK’s largest independent provider of white label payment software and services. Its mission is to become the global standard for white label payment provision. Everything the company does is designed to give its partners the freedom, flexibility and control to deliver the unhindered achievement of their business objectives.

Cardstream’s breadth of relationships, advanced portfolio of features and acquirer independence ensures that its partners can build a payment proposition they control and that delivers the maximum financial return.

For further information and inteviews please contcat the Cardstream Press Office:

Leon Lee – Commercial Director

T: 0345 0099575

E: [email protected]

Opening Your First Account: What to Look for in a Bank

Are you considering opening your first bank or looking for one for your child? Don’t just go with the one down the block due to convenience. There are actually more options out there than you realize – and some that can save you money and keep your cash safer for the long term!

Read on for our top tips on what to look for in a bank so that you can store your wealth the smart way. 

1. What Kind of Account Do You Need? 

Some banks offer you more perks for checking accounts versus savings accounts, and the other way around. This can be due to higher interest rates, convenient mobile checking deposit options, or banks that don’t charge you monthly fees. 

If you don’t want your money to stagnant in a savings account and want to save more, then a high-interest savings account may be for you. Although many brick-and-mortar banks don’t offer very high interest, many online banks do. 

Perhaps you want to replace your current checking out. Larger banks offer more options if you want flexibility, and there are also high-yield checking accounts that are offered by online banks, credit unions, and community banks. 

2. Avoid Minimum Balances

Some banks require you to have hefty minimum deposits, which essentially locks your money up in an account for the foreseeable future without earning much interest. Online banks such as Ally Bank and Capital One 360 offer checking accounts that don’t require a minimum balance. Smaller banks and credit unions are also less likely to require minimum balances. 

3. Avoid Overdraft Fees

Overdraft fees are one of the biggest penalties to hit consumers. Banks can charge $35 or more for each overdraft to your account if you’ve opted for overdraft protection, which can become a vicious cycle. The bank is essentially giving you a loan with a hefty fee attached. 

Overdraft protection isn’t required, even though banks will try to push you towards it. When you don’t have overdraft protection, your purchases or ATM withdrawals are simply declined if you have insufficient funds. Remember to read the fine print of whichever bank you choose and go with the option that has fewer fees, or no fees at all. 

Some banks will allow account holders to link a savings account or credit card to your account and transfer money if you have insufficient funds. You’ll avoid large fees, but you’ll also be able to complete your purchases. 

You’ll also want to see if your bank is capable of sending you text alerts if you have a low-balance or have crossed a threshold you’ve indicated. With banks that offer mobile apps, you’ll have a much easier time monitoring your account’s balance. 

4. Consider Accessibility 

Although online banks come with a lot of perks, they can lack the convenience of big brick-and-mortar banks. If you’re having issues with an account or need to deposit cash, this is much easier with a traditional bank. 

Many online banks require you to mail in your cash if you need to make a deposit. If you’ve noticed any fraudulent activity on your account or need some assistance, you’ll need to chat with a customer service representative online or call. Depending on how effective their customer service is, this can either be a convenience or a major hindrance. 

Carefully think about your accessibility needs and choose the bank that makes your life easier for the longterm. 

5. Consider Spending Habits

You’ll also want to consider your lifestyle. If you’re making an effort to save money, many financial advisors recommend you go with a bank that allows you to open and name multiple accounts. This enables you to have one checking account and separate savings accounts for all your different savings goals, such as emergency money, gift funds, and travel funds. 

Portioning out your money this way makes it far easier to budget. When you access your account online, you’ll see right away how much money you have available to spend and how much you need to save. 

6. Digital Features

There are a lot of digital features available now that make your life a lot easier and your account more secure. This includes the ability to transfer funds, deposit checks, and pay bills all through an app.

Some banks offer the ability to immediately lock a debit card or customize it to not allow international purchases or purchases out of your local area. Overall, banks are pushing towards more high-tech solutions, including utilizing IoT

If you’re predominantly a debit card user, this kind of peace of mind is invaluable. Make sure to browse a bank’s website and read their app reviews to see how convenient and developed their digital features are. 

7. Read Terms & Conditions

It may seem unnecessary, but you really should read the fine print before opening a bank account, especially one that you’ve found online. Here are a few things you should check for: 

  • Monthly service fees
  • Out-of-network ATM charges
  • FDIC insured savings accounts
  • Promotional deals that are expiring

You need to know exactly what you’re getting into before you join a bank or open one for your child – this saves you future headaches. If you find that you want to open a checking account with one bank and savings with another, ask yourself if this will suit your lifestyle and if you’d be able to keep up with it. 

What to Look for in a Bank: Secure Money that Grows

When you consider what to look for in a bank, it’s all about finding one that suits your lifestyle, keeps your money secure through insurance and smart digital features, and doesn’t let your money stagnate.

For instance, if you have thousands of dollars worth of savings, keeping it in a savings account with a low interest rate for years will actually be losing you money. Inflation rates rise while your purchasing power diminishes. You would do better to store this in a CD or high-interest savings account.

If you have a teenager that’s opening his or her first bank account, maybe they would do better with an account that offers the ability to open multiple savings accounts. This will help them learn how to budget effectively.

If you found this article helpful, keep reading our banking section for the latest news and analysis of banking policies around the world!

Atos and Fintech Circeo develop innovative loan management solution for major worldwide retailer

A solution to help run Loan Management from a hybrid cloud leveraging Google Cloud Platform

November 20, 2019 Atos, a global leader in digital transformation, and Circeo, a leading Fintech in developing next-generation retail loans software, today announce the development of an innovative loan management solution built with Google Cloud Platform. Developed initially for the bank subsidiary of a major worldwide retailer, Atos and Circeo will soon begin bringing the solution to market for other customers.

This offering is based on a hybrid cloud solution which combines Google Cloud Platform (GCP) together with Atos’ expertise in end-to-end cloud orchestration and management, and infrastructure services and support. It enables users to benefit from the advantages of a fully-managed and secure cloud service which is seamlessly integrated with Google Cloud Platform (GCP).

With this joint solution, clients can run Fintech software built on Oracle technologies on hybrid cloud infrastructures, and thereby benefit from elasticity, resilience, innovation and pay-per-use models – without the need to redevelop their existing systems. The Google Cloud Atos partnership ensures that the client benefits from direct, secure and high-performance network connectivity, for faster and optimised access to Google Cloud resources.

This new solution from Atos and Circeo will help the end-customer manage peaks of activity in Loans, particularly during sales and specific events such as black Friday thanks to the elasticity and resilience of GCP.

Circeo is an innovative Fintech delivering a next generation flexible digital lending platform, based in the Cloud, which enables tailor-made financial products to be made within just a few days. It is part of Atos’ FinTech Partner Program and one of Atos’ most dynamic Fintech partners.

“This solution demonstrates the unique value we deliver to our customers thanks to our ambitious Fintech Engagement program which aims to bridge the gap between banks and Fintech.” says Wim Los, SVP, global Head of Atos and Google Cloud enhanced Alliance at Atos. “Developed by Atos and Circeo, it is a framework which will be replicated for other clients, on other markets”.

“We are glad for this unique opportunity leverage our global partnership with Atos to promote and implement the Atos-Circeo Retail Lending Factory platform” says Laurent Clerc, Founder and CEO at Circeo“By delivering unique value with Atos, we expand existing client portfolios and onboard new clients into production.”

We’re delighted that Atos and Circeo chose to develop this solution with Google Cloud Platform,” said Rayn Veerubhotla, Director, Partnerships at Google Cloud. “With this solution, customers can modernise their existing infrastructure and begin to take advantage of the core capabilities of Google Cloud.”

Atos was recently recognised as ‘Global breakthrough partner of the year’ by Google Cloud.

About Atos

Atos is a global leader in digital transformation with over 110,000 employees in 73 countries and annual revenue of over € 11 billion. European number one in Cloud, Cybersecurity and High-Performance Computing, the Group provides end-to-end Orchestrated Hybrid Cloud, Big Data, Business Applications and Digital Workplace solutions. The group is the Worldwide Information Technology Partner for the Olympic & Paralympic Games and operates under the brands Atos, Atos Syntel, and Unify. Atos is a SE (Societas Europaea), listed on the CAC40 Paris stock index.

The purpose of Atos is to help design the future of the information technology space. Its expertise and services support the development of knowledge, education as well as multicultural and pluralistic approaches to research that contribute to scientific and technological excellence. Across the world, the group enables its customers, employees and collaborators, and members of societies at large to live, work and develop sustainably and confidently in the information technology space.

What Is Investment Banking? (And the Top Investment Banks Out There)

Investment banking plays a key role in global economics. For instance, as of July 2019, JP Morgan constituted 9.0% of the global investment banking revenue. However, for the majority of us, investment banking is a mystery.

By learning about investment banking today, you’ll be ready to make informed choices if you want to improve your financial situation through IPO investing.

Read on as we answer the question: “What is investment banking?” 

What is Investment Banking? 

The duties of investment banks are completely different than traditional banking. While the traditional banks we’re used to visiting take in deposits from consumers and businesses and lend out money, investment banks sell securities. They also help finance large projects that traditional banking won’t touch due to the high risks involved.

Robert Johnson, Professor of finance at Heider College of Business, Brighton University, puts it simply. “Investment banking is a method of controlling the flow of money.” With the huge amounts of money at stake, investment banks have a key role in American economics. 

The projects they finance include: 

Large Financial Projects

Projects such as constructing infrastructure need large amounts of upfront cash. Investment banks are able to accumulate this cash by selling securities to investors. 

Company Sales

Instead of acquiring loans to gain capital, entrepreneurs who want to expand their companies sell portions of their companies to the public, or an initial public offering (IPO). Investment bankers are integral to this process, and it’s one of their most important functions. They find investors looking to buy and companies looking to sell.

Initial public offerings are risky investments – there’s no guarantee that they’ll increase in value, though some IPOs are wildly successful. However, if you’re ready to invest in an IPO, you can do so by opening a brokerage account. 

Typically, the IPO price is fixed for a limited group of investors who fit the eligibility requirements. For most investors, the price of the IPO will be higher once it begins officially trading. 

According to the investment bank UBS, out of 7,000 companies between 1975 and 2011, 60% had negative total returns after five years of public trading. Do your research, buy conservatively, and keep a balanced portfolio to mitigate your risks!

Mergers and Acquisitions

Another way that companies can expand is through mergers and acquisitions. Investment bankers will help companies buy another, which can be more cost-effective than trying to compete. 

Despite the risks, buying companies still has a lot of benefits. A company may want access to international markets through a company that’s already established in another region. A larger company may be interested in a smaller company’s technology. They may also want to integrate vertically, such as buying a supplier of materials they need. 

Asset Management and Brokerage Services

Investment bankers help clients manage their money and generate returns. They do this by choosing individual stocks or putting their money into mutual funds. 

The Top Investment Banks

These top investment banks were able to maintain and grow their market positions throughout volatile years. In terms of investment revenue, the top investment banks include: 

1. Goldman Sachs

Headquartered at 200 West Street, New York City, Goldman Sachs operates branches throughout the world in all major financial centres. In 2018, its investment banking revenue was $7.86 billion. In 2019, they had a market capitalization of $78 billion. 

2. JP Morgan

JP Morgan is the second largest investment bank in the world. In 2018, it reported $7 billion in revenue. It’s also one of the oldest financial institutions in the world with a history that goes back to 1799.

3. Bank of America

In 2019, Bank of America rebranded its investment arm to Bank of America Securities. In 2018, it’s investment banking revenue was $5.3 billion. 

4. Morgan Stanley

Morgan Stanley is based in New York with branches in 40 different countries. In 2018, it’s totally investment banking revenues were $6.1 billion. 

5. Citigroup

Also located in New York, Citigroup Inc. had reported total revenue of $72.9 billion in 2018. It’s one of the big four banks in the United States and the third-largest bank in the world. 

6. Barclays 

Barclays Investment Bank, the investment arm of Barclays, is headquartered in London and has branches in 30 different countries. Its global investment banking fee share is approximately 4.2%. 

7. Credit Suisse

In 2018, Credit Suisse reported a net income of $1.8 billion, attributable to shareholders in the United States. Based in Zurich and established in 1856, it has branches in 50 countries. 

8. Deutsche Bank

This is the leading financial institution in Germany and one of the largest investment banks in Europe. It has about $2.5 billion in investment banking revenue and a market capitalization of $15 billion in 2019. It has branches in 60 other countries.

9. Wells Fargo

Wells Fargo offers banking and investment services in 40 countries. As of 2018, it’s generated investment banking fees are $1.8 billion.

10. Jefferies Financial Group

This full-service investment bank founded in 1962 is based in New York with regional offices in London and Hong Kong. It also has offices in 30 cities throughout America, Europe, and Asia. In 2018 its investment banking revenues were $1.9 billion.

Demystifying Investment Banking

If you’ve ever asked yourself what is investment banking, you should now understand the basic premise. Investment banking is all about the flow of large amounts of money from one institution to another, and through research, analysis, and recommendations, investment bankers try to find the best deals for their clients. 

Want to read more about the state of investment banking today in the global economy? Keep reading our banking section for more informative articles. 

Visa And Georgia’s Tbc-Backed Neobank – Space Announce Strategic Partnership

Visa signs partnership agreement with FTSE250 TBC Bank’s Space, the first Georgian neobank,to develop innovative banking solutions in Georgia andbeyond in the growing digital payments landscape

Visa And Georgia’s Tbc-Backed Neobank - Space Announce Strategic Partnership

TBILISI, 14 NOVEMBER 2019 – Visa, the world’s leader in digital payments, and Space, the first fully digital bank in Georgia, today announced they have signed a partnership agreement to jointly develop innovative banking services and expand digital banking footprints in new geographies.

Space is a startup backed by TBC Bank and was launched in 2018 with just three employees. They now have more than 70 employees, and have amassed a portfolio of more than 160,000 consumers. The bank operates as an innovative banking laboratory, and has successfully introduced financial services in new formats in Georgia. These include online bank account opening, remote KYC, courier card delivery by electro scooters, and the ability to manage all banking services through a mobile app.

Through the partnership, Visa will work with Space to jointly develop innovative, user-centric and secure banking solutions and help Space in their ambitions to expand to other countries focusing on CISSEE (Commonwealth of Independent States and Southeastern Europe).

Nikoloz Kurdiani, the Deputy CEO of TBC Bank said,“Space has the ability to transform everyday banking experiences by making them easier and better. When we launched Space, we wanted to move beyond the traditional banking approach and outdated technology to create a new type of bank in Georgia that would be better at responding to modern customers’ needs. Now, we are ready to go global. Therefore, it is critically important for us to have gained Visa as our strategic partner. Space has proved that its innovative and ambitious vision is realistic and that it is ready to accomplish bigger goals.”

Yevgen Lisnyak, Senior Director and Head of Strategic Partnerships, Fintech & Ventures (Visa, CISSEE), added:At Visa we believe in the power of partnership to bring our profound experience and innovative solutions to emerging payment players like Space. Being in the center of Fintech ecosystem, we aim to share our knowledge, best practices and network of technological partners with Space to achieve mutual goals in expanding the reach of digital financial services. Today, we are witnessing a rapid transformation of the financial banking sector, where new players are playing a significant role. Neobanks are agile, consumer-centric, flexible and innovative, offering modern consumers completely new financial solutions and digital banking experience. We are excited to be able to support fintechs to navigate the payments landscape in the Caucasus region to achieve their business growth and international expansion ambitions”

About Visa Inc.

Visa Inc. (NYSE: V) is the world’s leader in digital payments. Our mission is to connect the world through the most innovative, reliable and secure payment network – enabling individuals, businesses and economies to thrive. Our advanced global processing network, VisaNet, provides secure and reliable payments around the world, and is capable of handling more than 65,000 transaction messages a second. The company’s relentless focus on innovation is a catalyst for the rapid growth of connected commerce on any device, and a driving force behind the dream of a cashless future for everyone, everywhere.  As the world moves from analog to digital, Visa is applying our brand, products, people, network and scale to reshape the future of commerce. For more information, visit www.corporate.visa.com, www.visasoutheasteurope.com, https://www.facebook.com/VisaGeorgiaGE;

About Space

For the first time in region, thoroughly digital banking service – Space has launched. Space, powered by TBC Bank, is aka Neobank, that doesn’t have any branch offices or physical spaces, and exists just on mobile phones. Space is user friendly and aims at giving simple, transparent and rapid daily financial service. Space, the first ever digital bank in Georgia and in the region, was launched in May, 2018 and it has already achieved more than 400,000 downloads and 160,000 registered customers (As of 31 September, 2019). Aim of Space bank is to deliver a full daily banking mobile service with superior customer experience by putting special focus on differentiating by design, customer care, price transparency and instant service delivery. Space is available on App Store and Google Play.

100% of banking and finance bosses say they act on employee feedback

But trouble is brewing as only two-thirds of staff believe it ever happens

Nottingham, UK, 13th November 2019: 100% of the UK’s banking and finance employers claim to act on staff feedback, but only 67% of employees agree, research by People First, the HR solutions provider, has found.

Exploring the attitudes of 250 bosses and 250 employees across the UK, the research found just two-thirds (66%) of staff believe their bosses measure their satisfaction, even though 95% of employers claim to.

The research also revealed a growing sense of disconnection among new entrants to the workforce with only 50% of 18-24s believing feedback leads to action.

In addition, only 56% of employers in the banking and finance sector report the results of employee feedback monitoring to the wider company. More than seven-in-ten (71%) of those acting on what employees tell them say they do so at board level only.

“Trouble is brewing because although employers say they put feedback into action, it doesn’t ring true with workforces,” said Mark Williams, Senior Vice President Product, People First. “This is just not good enough. Feedback needs to translate into action.

“If there is no feedback loop, it can do more harm than good, annoying employees and discouraging them from taking part in future.”

Indicating the importance of principles and beliefs among workers, the research found nearly half the workforce (49%) will accept or reject a job on values. The figure rises to more than three-quarters (67%) of Gen Z respondents.

Eight-in-ten bosses (80%) measure employee satisfaction through employee surveys, while 61% use structured review meetings. More than half (53%) use informal conversations and exactly half use focus groups.

“Banks and financial institutions don’t just need to listen to and understand employees so they can pick up warning signs of disenchantment, they must act on feedback,” added Williams. “An ad-hoc approach is no good. That’s the same for gauging how employees feel about their own work and the company’s values and for putting that feedback into practice.

“This is an area that companies must tackle head-on in a much more thought-out and systematic manner, taking time to deploy the most effective and appropriate solutions to nurture employees throughout their time with a company.”