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

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.”

Banking

7 Questions to Ask Before Choosing Banking Services

ByCFI.co

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

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

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

1. How Much Are the Bank Charges?

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

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

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

2. What Are the Digital Services Available?

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

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

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

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

3. What Are Your Account Requirements?

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

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

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

4. Do You Allow for Overdraft?

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

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

5. Do You Have a Branch Near Me?

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

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

6. What Other Services Do You Offer?

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

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

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

7. Are There Withdrawal and Transfer Limits?

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

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

8. Do You Have Testimonials?

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

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

Vetting Your Prospective Banking Services Provider Is Non-Negotiable

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

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

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

Finance

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

ByCFI.co Blogger

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

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

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

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

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

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

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

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

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

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

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

***

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

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

The database allows consumers to search products in nine categories:

Fortified Homes can provide protection from natural hazards through improved roofing materials or other home hardening efforts. The Insurance Institute for Business & Home Safety (IBHS) identifies best practices to protect against storms and wildfires.
Green Buildings and Equipment are energy efficient or otherwise sustainable.
Nature-Based Solutions harness the capabilities of natural infrastructure to mitigate against weather disasters.
Mileage-Based Insurance recognizes risk reductions from decreased driving.
Low-Emissions Vehicles include electric, hybrid and other low-emissions vehicles.
Microinsurance allows low-income individuals to receive protection from specific perils.
Renewables include solar, wind, geothermal and other sustainable technologies.
Carbon Offsets are reductions in greenhouse gas emissions to compensate for emissions occurring elsewhere.
Super Pollutant Reduction includes efforts to decrease dangerous air pollutants.

California is the largest insurance market in the U.S., and one of the largest in the world. The California Department of Insurance was one of the first insurance regulatory and supervisory authorities in the world to sign UN Environment Programme’s Principles for Sustainable Insurance and commit to tackling global sustainability challenges such as climate change, biodiversity loss and ecosystem degradation, pollution, and social and financial exclusion.

The Department of Insurance does not endorse any particular insurer. While the Department of Insurance makes every effort to confirm the accuracy of the database, insurance products may not be currently available and the database can be revised at any time, with or without notice.

The original source of the information for this database is Dr. Evan Mills (Energy Associates), who is a world-renowned researcher of the intersection between climate change and insurance. The Department plans to update and add to this information through dialogue with insurers, other climate experts, other state entities, and international leaders.

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

Technology

WISeKey Receives Best IoT Semiconductor Innovator Global 2020 Award

ByCFI.co Blogger

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

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

Highlights of the judging panel’s findings include:

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

The judging panel’s full report:

WISeKey: Best IoT Semiconductor Innovator Global 2020

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

About WISeKey

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

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

Disclaimer

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

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

Contact

WISeKey Investor Relations (US)

Lena Cati

The Equity Group

212 836-9611

Phone: 212 836-9611

Email: lcati@equityny.com

Corporate Finance

The perfect storm brewing for company pensions

ByCFI.co Blogger

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Banking

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

ByCFI.co Blogger

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

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

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

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

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

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

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

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

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

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

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