CFI.co Blog - Page 27 of 47 - Business, Finance, Economics

Joe Biden or Donald Trump – whoever is the President of the United States come November, their ultimate challenge is to secure “stable relations” with China which would win an all-out trade war, warns the CEO of one of the world’s largest independent financial advisory and fintech organisations.

The warning from Nigel Green, chief executive and founder of deVere Group, comes as Mr Biden prepares to give his official acceptance speech on Thursday night to the Democratic National Convention to become the party’s nominee to run against Mr Trump on November 3.

Mr Green says: “Managing China and maintaining America’s fragile economic superiority over its major trade and commerce rival will be the defining foreign policy issue of this presidential election.

“Both the Democratic and the Republican candidates seemingly share a belief that ‘being tough’ on China — or whoever can knock China the most effectively– is going to do well with the electorate.

“Both Biden and Trump will up the China-bashing between now and November 3.”

He continues: “Whilst this strategy might be a political weapon to win the White House, whoever does become the next CEO of the world’s largest economy will have a golden opportunity to secure stable, normalised relations with China.

“And this should be high-up on their agenda.

“Cooperation will benefit both nations by helping to boost global economic growth, encourage investment, secure jobs, keep prices down for consumers, reduce unfair or illegal economic, commercial and technological practices, reduce poverty and environmental problems, and contribute to stopping human-rights abuses and military interventions.”

But there is another major reason, says the deVere CEO, why moving towards amicable relations with China cannot go unmet by the incumbent or the challenger.

“A de-escalation in U.S.-China tensions must be a top priority for whoever is in the Oval Office because it can be very reasonably assumed that China will win an all-out trade war.

“Why? Because America’s trade deficit with China is frequently over-estimated and barely gives it the upper hand.

“Also, China’s central bank — unlike the U.S. Federal Reserve — is not independent and can be made to cut interest rates to bolster domestic demand and devalue the currency to make Chinese exports even more competitive.

“In addition, China is better positioned than America – which has a record budget deficit – to help out industries hit hard by a trade war.

“Plus, the ruling Communist Party of China can take the political impact of a trade war better than whichever party wins in the U.S.

“The leaders of China don’t need to play popularity games.”

Mr Green concludes: “Whoever wins the U.S. presidential election must seize the momentum that a win gives a political leader and immediately seek amiable relations with the world’s second-largest economy.”

Banking

UnionBank, Lazada and Mastercard launch the Philippines’ first e-commerce credit card

ByCFI.co Blogger

Add to card everything you love with exclusive online shopping rewards

Manila, Philippines, August 8 – Union Bank of the Philippines (UnionBank) and Lazada Philippines, together with Mastercard, have launched the all new UnionBank Lazada Credit Card, the country’s first e-commerce credit card that makes online shopping even more rewarding.

UnionBank, Lazada and Mastercard launch the Philippines’ first e-commerce credit card

The new UnionBank Lazada Credit Card is the only credit card that allows cardholders to directly earn up to 6x Lazada wallet credits from their online spend at Lazada – the highest earning rate among other credit cards in the market.

Every P200.00 spend at Lazada purchases earns cardholder with P6.00 Lazada credits. Meanwhile, cardholder earns P1.00 for every P200.00 on all other purchases outside Lazada.

“As the country’s leading digital bank, we’re truly excited about this new partnership because we believe the new UnionBank Lazada Credit Card will enable us to serve the growing needs of Filipino shoppers in this rapidly changing digital economy,” said UnionBank president and CEO Edwin Bautista.

During these uncertain times, UnionBank Lazada Credit Card gives customers a new safe and secure payment option for their online transactions. As another testament to UnionBank’s digital banking technology, the UnionBank Lazada credit card also introduces a new virtual credit card – which cardholders can use for online transactions without waiting for the physical card to be issued.

The cardholder will receive the virtual card, activate and use it to make online purchases immediately once application is approved. The virtual card can be viewed safely through the UnionBank Online app, with security controls including biometrics and one-time-password (OTP).

A physical card will also be delivered to cardholders for their face-to-face, point-of-sale transactions.

“It is a privilege to collaborate with UnionBank as we work towards creating a secure and inclusive digital economy in the Philippines. With more people turning to the Lazada platform to meet their needs, the new UnionBank Lazada Credit Card will empower Filipino customers to get more value from their purchases as they embrace a cashless digital lifestyle,” said Ray Alimurung, Lazada Philippines’ Chief Executive Officer.

“We’re excited to partner with Lazada Philippines and launch this newest co-brand credit card with the highest earn rate of up to 6X rewards at Lazada. Especially in this digital age and in the backdrop of limited mobility due to the global pandemic, more and more shopping is done online, and this card is the perfect product to use at Lazada. The more you shop at Lazada, the more you earn credits,” added Ana Delgado, UnionBank Consumer Finance Center head. “I invite everyone to experience how UnionBank Lazada Credit Mastercard makes adding to cart and checking out a rewarding experience. So add to card now!”

“Mastercard is pleased to partner with the country’s multi-awarded digital bank and the top e-commerce platform in Southeast Asia to deliver more value to Filipino e-customers. The UnionBank-Lazada Credit Card is a demonstration of Mastercard’s global expertise in co-brands and its continuing commitment to bringing digital solutions that enable a seamless and secure shopping experience online,” said Rowell del Fierro, country manager in the Philippines for Mastercard.

On top of that, cardholders need not compute for any point conversion. Earned rewards are in the form of peso value credits, plus earned credits can be conveniently transferred to the cardholder’s Lazada Wallet using their UnionBank Online app with just a few clicks, anytime, anywhere.

Enjoy exclusive shopping benefits at Lazada with the new UnionBank Lazada Credit Card! Get P5,000 Lazada Wallet credits as a welcome gift when application is approved for a UnionBank Lazada Credit Mastercard (Terms & Conditions apply). Enjoy free monthly shipping of up to P50.00 and free discount vouchers of up to P250.00 during their Mega Sales (birthday sale, mid-year sale, 9.9, 11.11. 12.12). Special discounts and exclusive sales also await cardholders from Lazada.

Apply now and start a new digital shopping experience at Lazada with the new UnionBank Lazada Credit Card at www.unionbankph.com or www.lazada.com.ph. Get ready to #AddToCard everything you love at Lazada’s 8.8 Shop Local Bounce Back Sale on August 6-8 and show your support to homegrown brands!

Technology

Importance of Virtual Data Rooms

ByCFI.co Blogger

Virtual data rooms are becoming popular with time. Their need has shown a sudden rise over the past couple of years. As the business world is expanding, so is the competition that comes along with it. Competitors are in search of each other’s weak points. Nobody wants to see anyone standing ahead of them. You never know who is preying on your confidential documents secretly. A single leak of any piece of information might cause your company to suffer a huge loss. You need a system that keeps all your files and records secured so that nobody has any chance to break into your files. With the introduction of virtual data rooms, this problem has been solved. Virtual data rooms provide you with a highly innovative platform that serves as a warehouse for your files.

Gone are the times when you had to keep a hardcopy of all your business-related files. Keeping files in hard copy is not safe at all. Moreover, many businessmen are so busy with tight meeting schedules that they are often seen forgetting important files at home or end up misplacing them. This causes inconvenience at the time of work. With virtual data rooms, all your files are saved online and with just one click, you can have the file in front of you.

Data Room provide you with all the safety you want with your documents. There is no chance that someone gets into your stuff. You can only share the files with specific people. This keeps your documents under tight security and ensures that there is no preying eye out there, spying on your documents.

You do not have to carry your documents in a hard drive or mail to someone over the email. Now with the virtual data rooms, you can share the documents with anyone around the world with just one click. It doesn’t matter which device the other person might be using or which country they are in, they can always get access to the documents within seconds.

In case you couldn’t conduct a meeting in person with your employees, you can start a meeting using a data room. This ensures that no amount of time is wasted and all the employees can be a part of that meeting.

With virtual data rooms, you do not have to worry about the size of the file that you intend to upload. You can upload bulk files at one time. The sizes of the files can vary. All kinds of files can be uploaded within no time, provided you have a fast internet connection. The files can be shared with anyone irrespective of the size.

Virtual data rooms are an organized file management system. Your files are well managed and organized in a proper manner over there. You do not have to go through a bulk of files to find that one single file anymore. With virtual data rooms, all your files are displayed with just one click.

Banking

Follow the Money: What Do Investment Banks Do?

ByCFI.co

There are several different types of banks and institutions out there. By knowing what these banks do and how they differ, you’ll be able to improve your financial literacy and make better investing decisions.

So, what’s an investment bank? And what do investment banks do?

An investment bank essentially acts as an intermediary institution that performs a variety of services. The majority of investment banks specialize in complex and big financial transactions. These kinds of banks help businesses make financial decisions and raise the capital they need.

But there’s a lot more to it than just that. Are you interested in learning more? If so, then continue reading and we’ll walk you through everything you need to know!

How Do Investment Bank Works?

There are two main divisions of investment banks worth knowing about. The first is the advisory division, which is paid a fee for their work. There is also the trading division, which realizes losses or profits based on their performance in the market.

A person who works in an investment bank might have a career as a salesperson, trader, or financial advisor. While a career at an investment bank could be lucrative, it typically also involves a lot of stress and long working hours.

Investment banks are best known for their financial intermediary roles. This means that they help businesses issue new shares of stock in an initial public offering (IPO). They also assist businesses to obtain debt financing by attracting investors for corporate bonds.

The role of the investment bank starts with counseling before the underwriting process even starts. It then continues after the securities are distributed as they continue to offer advice.

Investment banks also look at the accuracy of the corporation’s financial statements and they write papers that explain the offering to investors. The clientele of investment banks tends to consist of:

hedge funds
governments
corporations
other banks
pension funds

Many investment banks tend to use their size to their advantage. The more well-connected an investment bank is, the more likely it’s going to profit. It does this because it’s better able to match sellers and buyers.

Many large investment banks have customers all over the world.

What Do Investment Banks Do?

Investment banks perform a variety of functions. Often, they will act as the financial advisor to powerful institutional investors. An investment bank is supposed to be a trusted partner that provides strategic and useful advice on all kinds of financial matters.

They’re able to do this by combining their ability to evaluate and spot investment challenges and opportunities along with understanding the desires of their customers.

Investment banks also deal with mergers and acquisitions. During this process, the job of the investment bank is to determine the value of a possible acquisition and to help the parties come to a fair price. The bank will also help with executing and structuring the acquisition so that they can ensure that the deal goes as well as possible.

Research is another important service that investment banks deal in. The research divisions of these institutions review companies and then write documents about their prospects. They will usually include “buy,” “sell,” and “hold” ratings.

Although the research won’t bring in revenue on its own, the information that they come up with is used to help traders and sales. Investment bankers also get publicity for their partners and clients.

The research is also going to act as investment guidance to outside customers. This will hopefully get the clients to take the advice and execute a trade via the trading desk of a bank, which will then lead to increased revenue for the bank.

The research division is what powers an investment bank’s ability to conduct quantitative analysis, credit research, macroeconomic research, and fixed income research. All of this will then be used both externally and internally at the bank.

Underwriting Deals

Investment banks will usually underwrite deals while they’re also arranging capital markets financing for their customers. This means that they manage the risk that comes with the process of purchasing the shares of stock from the issuers and selling them to institutional buyers or the public.

Investment banks purchase shares at one price and then add a markup to the sale price. This brings them a profit that makes up for the risk that they’re taking on. This is also known as the underwriting spread.

There will usually be a head investment banker who works with a group of investment bankers. This group is referred to as a syndicate and they all work together to underwrite an issue. This helps to spread the risk out among everyone.

An underwriter will sometimes just play the part of a go-between for marketing deals. They help to market the stock but don’t take on the risk that comes with underwriting. When this happens, the investment bankers will be able to sell shares and get paid on the basis of commission.

The Importance of Knowing About Investment Banks

Hopefully, after reading the above article, you now have an answer to the question, “what do investment banks do?” As we can see, investment banks tend to work with large institutions and perform complex deals that can involve enormous amounts of money.

And even though many people might not directly interact with an investment bank, the actions that these banks take can affect a variety of people, especially those who invest. And by knowing how these banks operate, you’ll be better to make more informed and confident financial and investing decisions.

Are you wondering if now’s a good time to invest? If so, then make sure to check out our other articles for more!

Banking

UBX appoints new Chief Investment Officer

ByCFI.co Blogger

In line with its strategy to explore and invest in companies and platforms of the future, UBX—the Fintech and Corporate Venture Capital arm of Union Bank of the Philippines (UnionBank) — is announcing the appointment of Matthew Kolling as the company’s Chief Investment Officer (CIO).

As CIO, Kolling will be managing UBX’s Corporate Venture Capital (CVC) fund. He will also play a key role in raising capital for UBX while assisting the company in key corporate transactions, including the structuring of joint ventures and acquisitions.

Prior to his appointment at UBX, Kolling has been Head of Venture Investments at Aboitiz & Company since 2019, wherein he had been working with UBX on investment portfolio decisions. Before that, he held senior positions in Private Equity, Venture Capital, and Investment Banking at firms such as Providence Equity Partners and Morgan Stanley in New York.

Kolling has more than 20 years of experience in managing investments and deals in the Technology and Telecommunications industries and is active in Venture Capital and startup communities in the Philippines and the Southeast Asian region. He currently chairs the Manila Angel Investors Network, among others.

“We at UBX are excited to welcome Matt as our new CIO. We firmly believe that Matt will be instrumental in driving value creation opportunities, both within the CVC fund and our corporate ventures. We look forward to working with him as we fulfill UBX’s vision of a future where banking services are embedded into everyday experiences that matter,” said UBX president and CEO John Januszczak.

Meanwhile, UnionBank president and CEO Edwin Bautista said, “The addition of world-class talents in our pool reinforces our strategy to future-proof the organization and our business as we prepare for many new opportunities that come with the changing times.”

Banking

7 Factors to Consider Before Choosing an Investment Banker

ByCFI.co

The total revenue for 12 of the largest investment banks was $147.5 billion in 2019. While the revenue was a 4% decrease from the previous years, investment banking remains a crucial aspect of the economy. Consequently, there has been a surge in the number of investment bankers.

Selecting an experienced and qualified investment banker can be daunting. You need to be critical in your vetting as the choice of investment banker will impact your transaction experience. A professional investment banker will give you the best advice, negotiate with the utmost prowess, and ensure that you get the best deal.

Are you looking for assistance in managing your investments? Here are factors you might want to consider when choosing an investment banker.

1. Reputation

The reputation of a bank is an essential consideration. However, the character of the people transacting on behalf of the bank is more crucial. It would be best if you vetted an investment banker as an individual.

Check their past deals. Do they have a track record of success? The main areas to consider are the banker’s industry, the size of the deals closed, and the transactions involved.

Your chosen investment banker should be someone whose reputation is commendable. You can research and vet more to know the type of person who will be handling your investments.

2. Chemistry and Trust

You don’t want to take chances collaborating with an investment banker you can’t trust. You will be entrusting all your financial transactions based on advice from this specific investment banker in the long-term. The process will undoubtedly be time consuming and intimate.

As such, ensuring that you develop synergies with the investment banker is necessary. Chemistry refers to the inherent feeling of being comfortable listening to your banker’s advice. You’ll also need to ask relevant and somewhat delicate financial questions over time.

It would help to focus on the chemistry when shopping around for an investment banker. If the chemistry isn’t there, you might end up dealing with a more stressful situation. Trust, on the other hand, is non- negotiable.

You can’t afford to deal with someone you can’t trust. Trust must be at the centre of any relationship with an investment banker before committing to a long term engagement. This is especially crucial considering the value of your investment.

3. Get a Relational Investment Banker

In investment banking, creating rapport with clients is essential. You need to prioritize a banker with essential relationship skills. While the skill is intangible, it’s one of the most critical for investment bankers.

The stakes in investment banking are quite high. An investment banker with the right social skills and attitude will address extreme conditions and individuals. Nothing is more fulfilling than having an investment manager who understands you!

You’ll be communicating with bankers often when running a transaction. It would help to identify bankers with the right communication skills. Within the first encounter, you can gather clues that will determine whether the banker has the right set of communication and relational skills.

4. Valuation and Fees

Cost is always a factor when choosing a reliable investment banker. You want to understand the cost implications before committing fully to such services. The banker should be able to present an accurate cost of services.

While you might be keen to attract someone who charges the lowest fee, it would help focus on the ROI. Your goal should be to work with someone who has the highest qualifications. It would help balance the need for a pocket-friendly deal with a highly reliable banker to ensure value.

It would also be essential to ensure that you understand all the hidden fees and any other charges before hiring an investment banker.

When it comes to valuation, a good banker should keep up with the trends in your specific industry. This helps in interpreting the market activities and their impact on the value of your valuation. Ensure that you understand the range of valuation before committing to hiring.

5. Availability of Resources

A reliable bank should have adequate resources for your deal. If a firm has large teams, they are unlimited on the financial transactions it can handle. While this might be a positive aspect of the bank’s view, it might not favour you.

It is best to work with an investment manager who will guarantee you a personal experience. Confirm if they have the right resources. You can check out the different types of investment banking services and the available resources to know if they resonate with your business needs.

6. Transaction Experience

One of the essential factors you might need to consider when selecting an investment banker relates to experience. Can they get the deal done? You don’t want to deal with a novice who might take longer to deliver.

You also want to rest easy, knowing that your investment banker has the experience necessary to deliver. A banker who has been in the industry long enough understands the dynamics in the sector. The easiest way to validate an their experience is to consider the number of past transactions.

The more the number of transactions the banker has, the more the experience they bring on the table. It would help to consider the level of experience the they have before proceeding to commit.

7. References and Reviews

Every investment banker worth their salt has a battalion of loyal clients. Reviews play an important role in determining any business’s repute. Before you decide to hire an M&A specialist, consider the testimonials that back up their exceptional services.

Most past customers provide honest feedback on their engagement with respective investment bankers. You can utilize such information to determine the most suitable banker to handle your case. It would also help consider negative reviews as a red flag when dealing with investment banking service providers for the first time.

The Right Investment Banker Has a Significant Impact on Your Wealth

Transactions are often laden with challenges. You’ll meet buyers who are more familiar with the market than you, leading to disagreements. With an experienced investment banker, you can rest easy knowing that the process will be seamless.

You need to familiarize yourself with the banker’s skills and experience. Thorough vetting will enable you to settle for the best talent around.

Banking

7 Benefits of Using Private Banks for Small Businesses

ByCFI.co

When considering your options about your finances and your new business, the tendency is to only consider high street banks.

This might not always be the best option for you and your business. It is essential to consult all the types of banks that are available and how they can facilitate your requirements and needs.

Private banks might just be the way forward when looking at a bank to store and manage your company’s finances and outgoings.

In this article, we will go through and explain 7 benefits of how using a private bank can help small businesses and why you should choose one.

Read on to find out more about private banks and why they could be the solution for your business.

1. Private Banks Offer Additional Support to Their Clients

Private banks are run in a different way than average high street banks. They actively work with their clients and can offer tailored advice on not just various financial aspects of their business, but their personal finances as well.

Private banks are able to go above and beyond for their clients in terms of managing their assets, wealth, and finances and give an in-depth analysis of what a client should be doing with their projections and future investments.

2. Private Banks are Highly Personalised For Their Clients

A real benefit of choosing a private bank over a regular one, is you are often assigned a private banker who manages your account. This means that a singular person is in charge of your finances, and has a much greater understanding of your goals and has a keen knowledge of your business.

They are able to actively recommend and advise on your finances whilst developing a relationship with you.

You are able to have confidence in your own personal banker who will be proactively searching for the best investment options and course of action for your business.

3. You Have a Direct Line to the Bank

Often one of the most frustrating things with traditional banks, is that if you need an issue resolved or have a question that needs to be answered, you might have to ring and wait for hours on hold to speak to someone.

The person you eventually get through to has no knowledge of your business, and you will probably need to repeat yourself a few times whilst you are transferred to different departments.

This whole process can be incredibly time-consuming and frustrating, and you might not even get the resolution or information you need.

With private banks, this is never an issue. You often will have a direct line to your own personal banker, who is completely in tune with your finances and is able to facilitate your requests much quicker than a regular bank.

4. Private Banks and Bankers Fit into Your Financial Support Network

If you have other elements to your financial support network such as an accountant or lawyer, the private bank or banker will be able to take an active role in this infrastructure and speak to them regarding any issues or financial information.

This connection between the various aspects of your financial support system can be integral to how your business can develop and grow. This is not something that can be achieved or managed using a regular bank.

5. The Relationship is Tailored and Flexible

When beginning an account with a private bank, you will have a meeting to discuss everyone’s expectations and what you are wanting out of the relationship between your business and their bank.

You are able to tailor a schedule of how often you should meet and what needs to be discussed at these meetings. And if they need to be done in person, or whether a phone or video call will be adequate.

The benefit of a private bank is that the contact and schedule of the client and bank relationship is personalized to the client’s requirements.

6. The Bank Will Assign You a Banker Best Suited to Your Account

This is dependant on the bank you decide on, but private banks will take a look at your application and make informed choices based on who at their company will be the best fit for you.

Bankers will have specific knowledge and expertise in certain industries and sectors, the bank will always try and match a client with an employee who is most qualified to handle your finances.

7. Private Banks Offer Additional Perks

If you qualify for certain VIP services then you might have access to some great perks or discounts.

Some banks offer premium travel services or favorable mortgage financing and options with discounts on fees and reduced interest rates.

There are some that offer free worldwide travel insurance, discounts on hotels and give you a certain number of points every year to redeem on holidays and breaks away.

It is worth enquiring with a private bank to see what type of perks and discounts they can offer you if you become a client. These options could help you save or redeem hundreds of pounds in your private finances.

Private Banks: Where Can I Find Out More?

We hope you have enjoyed this article explaining the benefits of choosing a private bank for a small business.

The focus is always going to be on personalization and quality service with private banks. You do not have access to that level of care and proactiveness with a regular bank.

If you want a bank that will act as a consultant, who will be supporting you at every stage of your financial cycle, then a private bank might be the option for you and your business.

If you have any further questions about the benefits of private banking, why not check out our previous blogposts? Or contact us directly?

Banking

7 Mistakes to Avoid When Opening a Business Bank Account

ByCFI.co

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

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

1. Incomplete Account Information

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

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

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

2. Using Your SSN Instead of FEIN

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

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

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

3. Having One Account

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

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

4. Check-Signing Access

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

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

5. Picking the Wrong Bank

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

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

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

6. Minimum Monthly Balance and Fees

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

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

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

7. Ordering the Wrong Checks

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

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

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

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

Business Bank Account Mistakes Avoided

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

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

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

Banking

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

ByCFI.co Blogger

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Finance

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

ByCFI.co Blogger

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

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

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

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

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

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

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

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

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

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

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

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

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

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