In recent years, the European banking industry has been facing a number of challenges, including low interest rates, increasing competition, and a slow economic recovery. One of the most recent examples of this crisis is the situation surrounding Credit Suisse, one of the largest banks in Switzerland.
Credit Suisse has been embroiled in a series of scandals over the past few years, including a massive fraud case involving the bank's former wealth management division. This scandal, which came to light in 2019, resulted in the loss of billions of dollars for the bank and led to the resignation of several senior executives.
In addition to this scandal, Credit Suisse has also been struggling with other issues, including a high level of exposure to risky investments and a lack of adequate risk management practices. These issues came to a head in early 2021, when the bank was forced to take a significant hit to its balance sheet due to losses incurred from the collapse of Archegos Capital Management, a hedge fund.
The Archegos debacle has raised concerns about the bank's risk management practices and has led to a significant decline in the bank's share price. In response, Credit Suisse has announced a series of measures to address the issues, including a restructuring of its investment banking division and the appointment of a new chairman.
The crisis surrounding Credit Suisse highlights the broader challenges facing the European banking industry. Many banks in Europe have struggled in recent years to generate profits in a low-interest-rate environment, and the COVID-19 pandemic has only added to the challenges. The crisis has also led to increased scrutiny from regulators, who are looking to ensure that banks are operating in a safe and sound manner.
Despite these challenges, there are some signs of hope for the European banking industry. Many banks have been taking steps to address the issues, including increasing their focus on digital banking and expanding into new markets. Additionally, the European Central Bank has implemented a range of measures to support the industry, including a series of targeted longer-term refinancing operations (TLTROs) that provide banks with access to low-cost funding.
In conclusion, the crisis surrounding Credit Suisse is just one example of the challenges facing the European banking industry. While there are significant hurdles to overcome, there are also opportunities for banks that are able to adapt and innovate in the face of these challenges. With the right approach, the industry can emerge stronger and more resilient than ever before.
In the USA, by next year almost one in every two US dollars spent online will be made using digital wallets, which are also known as “e-wallets”. For the uninitiated, a digital wallet is basically an account connected to a debit, credit or even a prepaid account through the medium of a smartphone or computer. Aside from active credit or debit cards, digital wallets are also designed to be able to store other sensitive personal data, such as loyalty cards and even driving licenses, which is handy for purchasing age-restricted goods or services.
Digital wallets are already proving particularly popular when it comes to online entertainment. In the iGaming industry, consumers are now able to play at online casinos that accepts all major digital wallets, such as Neteller, Skrill and EcoPayz. Furthermore, players only need to provide identification for proof of age once before the e-wallet stores it and passes on the confirmation for online casino operators for future deposits and withdrawals. Leading e-commerce platforms are also building their own “closed wallets” such as Amazon and Walmart. These e-wallets are restricted to purchases and services via the merchant.
The concept of digital wallets was first discussed way back in 1983. American cryptographer, David Chaum devised his own “digital cashback” system, even before the concept of cryptocurrencies was spawned. It was an idea that would gain further momentum still in the 1990s thanks to the rapid advancements in internet technology. The launch of PayPal just before the turn of the Millennium proved to be a significant turning point among consumers, looking towards e-wallets as a simple, decentralized online payment method.
Given the mobile sales in the US alone are expected to total almost 54% of all e-commerce transactions by 2021, it’s fair to say that digital wallets aren’t just the future of online payments, they are the here and now. If you are yet to experience a digital wallet and you’re curious as to the day-to-day benefits, here are a few pointers to help you make your mind up.
Increased transparency and visibility
Digital wallets put the power back in the hands of the consumer. There’s no longer any need for paper-based expense management. With an e-wallet, all your expenses are clearly listed in black and white on-screen in real time. This means that users get better visibility over their daily spending, allowing them to make conscious decisions to curb their spending should they wish to save money in the short or long term.
Improved customer security
Digital wallets are also built with enhanced security controls, which is invaluable in an era of cybersecurity risks. Two factor authentication (2FA) is regarded as the best form of e-wallet security. If you enable 2FA on your smartphone and computer, you will create a second barrier for fraudsters to have to overcome before logging into your account. This second barrier is virtually impossible for cyber-criminals to overcome as you will have a numbered code to input, given to you by your e-wallet app, that changes every 60 seconds for ultimate security and privacy.
Reduced transaction fees
Closed digital wallets are also particularly beneficial at reducing transaction fees. As consumers are only permitted to use their closed e-wallet at a specific merchant or retailer, these accounts are not subject to the interchange fees imposed upon other accounts by leading payment networks.
Reward opportunities for loyal customers
Another crucial benefit of digital wallets for retailers themselves is the opportunity to improve their engagement with regular and first-time customers. First-time customers can be given a slick user experience and rewarded with incentives to return for a second purchase in the future. Meanwhile regular customers can sign up to loyalty schemes via their closed digital wallet which can give them access to exclusive discounts. Furthermore, customer data obtained from closed digital wallets makes it easier for brands to tailor and segment their marketing messaging for a more powerful effect.
As online retailers increasingly realize that they cannot miss the boat with digital wallets if they want to make it easier for consumers to spend and easier for businesses to collect invaluable data on their customers, it’s easy to see why many believe that digital wallets are here to stay.
So, how will the 2019 general election affect business? We take a look at the predictions and what they could mean for commerce.
It’s an election that prime minister Boris Johnson had been chasing for weeks in an attempt to break the Brexit deadlock, but the vote has come sooner than expected for business leaders and the public.
Pundits are calling it a once-in-a-lifetime ‘Brexit election’ and, given those stakes, the impact on British business could be seismic.
Navigating major change from inside the C-suite is rarely a smooth ride. It means creating a backup plan for your backup plan, then running the numbers for each.
Fortunately, corporate speakers and expert journalists were on-hand to offer their insight just as the possibility of an election descended on the City of London at a night aptly called ‘Preparing for Unprecedented Change’.
At the event, former BBC business correspondent Declan Curry stressed that Brexit is just one of the big changes Britain could face in the fallout from the election.
The business and economics speaker said executive teams are also busy making plans for the possibility of a Corbyn-led Labour government.
“Businesses are hearing the commentary that we’ve had since 2017 – that polls indicate that he has absolutely no chance whatsoever of being the next prime minister,” he told the crowd of corporate guests in Barbican, central London.
“But then they remember the polls running up to the Brexit vote were wrong, the polls running up to the 2017 election were wrong, and in 2015 they weren’t exactly models of prediction either.
“And business leaders like to be prepared,” he adds. “So in most major companies there will be someone somewhere – an executive in an office with the door closed – drawing up the plans for ‘what if’.
“What if John McDonnell is the chancellor, what if the idea of having trade union representatives forcibly on boards is enacted? What if there are bans and restrictions on bonuses?”
As we speak, many businesses are preparing for this possibility just as they are preparing for Brexit. Declan added: “This is being mapped out as a theoretical enterprise.”
The event was organised by international speaker bureau Speakers Corner, whose 7500-strong portfolio of orators and experts have already been called on many times to help businesses navigate the uncertainty of Brexit.
In fact, Declan Curry revealed he himself takes professional guidance on the levels of Brexit fatigue in a given audience before taking to the stage.
He was also keen to point out change can bring opportunities as well as risk. Near the Irish border in Donegal, people are “excited for the return of the ancient art of smuggling,” he joked.
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“Brexit will throw up opportunities, too,” said Declan, pointing to law firms currently profiting from all the uncertainty. The former On the Money radio show host said economies are suffering and pondered the idea that another financial crash could be looming – something that could magnify the risk to British business.
This speculation comes as both major parties enter a public spending bidding war that the Institute of Fiscal Studies has said may be undeliverable.
General elections often make markets unstable, but the combined uncertainty around Brexit and the UK’s economic direction is heightening the impact on shares – especially for companies like BT, which could even be partly nationalised under Labour plans.
Still, some business leaders see the vote as an imperfect path to preventing the damage of a hard Brexit. Sonia Sodha, chief leader writer at the Observer, also spoke at the Knowledge Guild event – and she is sympathetic to this view.
“You can see a path to a Labour-led coalition government with Lib Dem and SNP support if Boris Johnson loses a significant number of seats,” she said, but feels an election is not the best way to deal with the Brexit question.
Business owners and C-suite executives have expressed concerns about the risks of a chaotic Brexit since 2016 – and despite continued delays, the risk of no deal remains. The implications could include increased taxes on imports and exports, supply chain delays and staffing supply problems.
“We are going to be talking about Brexit for years to come, whichever outcome,” Sonia told the crowd of central London executives.
For executives concerned with risk management, the turbulence runs in many directions. The only certainty is the election result will spark significant change – whatever the result.
Now, the iGaming industry’s reach is massive, with more and more jurisdictions regulating the popular pastime, to the point that the online gambling market may is expected to close in on being a $1 trillion in under a decade. The market valuations and predictions expect the global iGaming market to grow from $45.8 billion in 2017 to $94.4 billion by 2024. Given the rate of its growth and increasing availability around the world, the online gambling market could well hit the $1 trillion mark before 2029, potentially by 2026.
At its core, the key to this incredible rise is the diversity and innovation within each online gambling site, especially in the gaming sections.
The huge, ever-growing market
Considering that gambling is popular in many locations around the world via betting shops and land-based casinos, it shouldn’t come as a surprise that the larger, more diverse, easier to access world of iGaming has become so popular.
In the UK, from October 2017 to September 2018, the total gross gambling yield of the gambling industry actually took a tumble of 0.4 per cent when compared to the numbers from April 2017 to March 2018. However, the total gross gambling yield of the remote sector of the UK’s gambling industry showed a rise of 2.9 per cent by the same date comparisons, accounting for £5.6 billion ($7.1 billion) of the total £14.5 billion ($18.5 billion) industry.
Online gambling is on the rise in nations where it is properly regulated, like the UK, and will continue to increase in size with more jurisdictions bringing in legislation and regulation to govern iGaming within their borders. The biggest of these nations bringing about such regulation is the United States of America, which recently declared that each state has the option to legalise online and land-based sports betting. So far eight states have legalised the activity, with a further seven more having recently passed a bill on sports betting.
Diversity and innovation in iGaming
The iGaming market is hurtling towards the $1 trillion mark, proving its immense popularity worldwide. While simply offering classic table games, slot machines, and betting may be enough to make it a massive industry, the intense competition has forced operators and developers to create bigger and better games that bring something new to the table.
Sports betting markets go deeper into each game than ever before, with some operators even offering ways to use an exchange to bet differently. But to see innovation at its peak in iGaming, you have to look at the online casino games that fill these websites. Live casino games have been a revelation, bringing authentic, real-time, real dealers to each player for the likes of live baccarat and live three card brag. But simply having these live games wasn’t enough, operators striving to outpace the competition have included unique twists, such as with Live Football Roulette and Live Spin A Win.
Along with offering different ways to gamble in the instants sections, such as with games like Penalty Shootout and Jackpot Darts, iGaming platforms have also done well to expand the offering of their most popular games, slots. Now, you’ll find a huge range of massive, ever-increasing progressive jackpot games as well as hundreds of themed games like Frankie Dettori’s Magic Seven and The Matrix. The diversity in the gaming sections allows them to appeal to anyone who wants to play a game, making iGaming incredibly accessible.
In 2009, 8.2 million people were behind in their taxes, owing a total of $83 billion. The situation is no better today.
People fail to honor their tax obligations for various reasons. You might have been too busy with work and kept procrastinating, you may have lost your job, or you may have faced an illness or a major life event that threw you off course. Whatever the reason, you must know that non-compliance can put you in trouble.
If you think you might be in trouble, do not fret. The following are things you can do to save your soul.
You may have missed the filing deadline, but that does not mean that it’s the end of the world. What many people do not know is that it is better to file late than not to file at all. Yes, you will pay the penalty for lateness, but it’s usually just 5% of what you owe for each month that you are late.
But what if you don’t have the money? It is still no excuse for not filing. The best thing to do is to file even without paying. Again, you will be slapped with a fine, but it is better to be fined for not paying but not for both.
Filing will also help you determine how bad the situation is. This will allow you to plan the next cause of action.
If you owe a significant amount in taxes, you may feel like you are in a rut. Many people feel helpless and do not see the need to make an attempt to pay because “it will be a drop in the ocean”. However, something is always better than nothing.
The IRS is accommodating and can allow you to pay over time. If you owe less than $ 50,000, you can even make an application online without even having to negotiate with anyone over the phone. You can also send an installment agreement form through the mail.
However, before making the application, make sure that you have filed all of your taxes.
The truth is that dealing with the IRS is not everybody’s cup of tea. And for good reason; dealing with them is stressful and time-consuming. And they don’t bend easily.
If you owe more than $10,000, it is better to seek the help of a tax expert to help you engage with the IRS. Experienced tax professionals can negotiate on your behalf to ensure that you pay the lowest amount allowable by law.
They can also negotiate to have you pay your tax debt in manageable installments. To top it up, they can handle all the communication and attend face to face meetings on your behalf.
It is not common for the taxman to forgive taxes, but the IRS has a compassionate side.
If you are going through an extremely rough patch in your life, you may be allowed to settle an amount that is less than what you owe.
However, you must be able to prove that you are struggling with tax burden. Be informed that there is no guarantee that you will be granted a compromise, but if you have lost your job, have incurred extremely high healthcare costs, you may have a chance.
All you have to do is to fill in Form 656 to make an application for an Offer in Compromise.
Once in a while, there might be amnesty programs depending on where you live.
An amnesty is a program where the state allows individuals or businesses to pay outstanding debts or file late tax returns without penalties. However, to take advantage of an amnesty, you must pay the outstanding amount during the amnesty period.
Unfortunately, you cannot bank on amnesties because they are not permanent or even available in all places. Currently, it is only Indiana, Tennessee, Connecticut, and Texas that have active amnesty programs.
The biggest mistake you can make is to hide your head in the sand. You cannot resolve your tax issues by wishing them away. As such, do not make the mistake of ignoring mail from the IRS or decide to “wait for your fate”. The earlier you take action, the better. After all, it may not be as bad as you might think.
Have a glance at the big picture
The first place to start is getting informed of where you stand as far as your credit history is concerned. This will help you in setting up your money management goals. Once you are aware of your credit history, you can then change the things that drag your credit score down. For instance, avoid spending money on unnecessary purchases and if you have any outstanding bills, ensure that they are also paid on time. This will actually help you save a lot for future financial goals.
Monitor your monthly expenses
How much do you spend in a month, and are the things that you spend on really worth it? Most people tend to spend their monthly income on unnecessary stuff and with such acts, you will not only run out of cash within a short time, but it may also be impossible for you to save. You can manage your monthly expenses by coming up with a budget. This will help you ensure that you only spend money on things that really matter, and have enough funds to save for future use. Managing your month expense well also means that you won’t have to worry about running into debt.
Stay out of debt
No one likes debts, but everyone finds themselves in debts at one point or another. To ensure that you keep your debts as low as possible, it is important to know how to manage your expenses. If you already have debts, you can start by paying the large debts, followed by the small ones. This is actually one of the best ways to effectively manage your debts. Besides, applying for a debt consolidation loan can also come in handy. With the loan, you will be able to pay off all your outstanding debts and only remain with one loan that is more manageable. You will also pay low interest on the loan. Many people also have challenges managing their expenses and the lucky part is that there are different places where you can get help. If you have a problem managing your funds, Crediful.com offers the best advice on loans and credits. You will also learn how to repair your credit score and get your financial life back in order.
Have an emergency fund
Whether it is your business or at home, emergencies always occur and in most cases, we are never prepared for such situations. However, a smart person will always save for unexpected situations. That said, you won’t have to worry about spending money on things that you were not prepared for.
Never forget to save
Everyone wants to achieve some goals after a certain period of time, and you can only achieve these goals if you start saving early. If you start saving at an early age, you will have saved enough to buy a house after retirement, ensure that your family is financially stable and you can even have enough cash in your account to start your own business.
Invest for the long term
Most people usually invest for long term benefits, but few of them actually do so. To ensure that your dream of investing for the future becomes a reality, ensure that you came up with investment strategies that can actually help you achieve these goals. In short, ensure that all the investments you stick to can achieve long term results.
Most consumers assume that managing finances is challenging, but with the above financial tips, it will be easy for you to account for your money and you will also be able to spend cash on things that are only necessary for you. Saving for emergencies is also important, mostly to ensure that you don’t take out a loan in such situations. There are also different sources where you can get information on how to manage finances, which can also come in handy if you want to be in control of your financial life.
Thanks to improvements in technology, the dominance of the internet and mobile, bingo is enjoyed by millions across the globe. This is especially the case in the UK, where companies like mFortune have become a huge success via their online and mobile bingo offerings. As a result, there is one question that always comes up, and that is, how to make a bingo game profitable?
One of the first things to note where bingo is concerned is that by spending very little a player does have a chance to win a considerable amount of profit, especially when jackpots and linked jackpots are involved. Therefore, it is a game which can see a player turn a profit when they play consistently, picking up some good wins along the way. However, there are other ways bingo enthusiasts can set about trying to improve their chances of making a game profitable.
One of the most common things to consider is playing online and on mobile. This is because online and mobile bingo operators nowadays will offer new players bonus cash for signing up and depositing, which could see them become a winner thanks to said bonus cash. This is a common method that players use today, taking advantage of multiple welcome bonuses, while also looking to utilise promotions that are made available to existing players too.
There are also bingo cashback sites to consider too, as this is a sure-fire way for a bingo player to receive some money just for signing up at a bingo site. Bingo cashback works by allowing a player to open an account with a bingo operator through the cashback site itself, not directly with the bingo operator. The bingo site will already have a deal in place with the cashback site to provide them commission for finding new customers, with the cashback site then giving some of their ‘finder’s fee’ back to the player. All three parties will end up winners, with the player effectively getting something for nothing.
People could of course also host their own bingo nights, taking a percentage of the money received, while also offering good prizes. This is another great way to ensure that a game is profitable, however, it would require some organising and enough players interested to make the evening a success. If a bingo evening was successful it could go on to become a regular thing, which would see a person certainly making a bingo game profitable.
These are just a few ways in which a person could enable themselves to turn a profit while playing bingo. The most common method right now is to take advantage of offers and promotions put out by bingo operators, but it’s always worth checking out the terms and conditions for any wagering requirements, as some offers just aren’t as good as they’re made out to be.
This reflects your brilliant lawyers’ success, such as Jones Whyte Law Personal Injury Lawyers in helping you get justice or gain financial damages. However, do not worry if you feel a little lost or a bit confused on how to optimise your settlement savings. Clearly, you are a smart cookie and are doing your homework. That is what has brought you to this page- and you are in the right place!
What kind of cash could this entail? It could be anything and range from large cash bonuses to cash settlements to structured settlements. This volume of money will tend to change your life. Maybe you got a large sum of inheritance from a loving aunt, a new sign-up bonus or a healthcare insurance policy paid off. You really need to sit down and have a think about what you want to do with this money. Making spontaneous decisions whereas your personal finance are concerned is highly ill-advised. The wrong move could create significant losses which you do not want to regret.
Here are nine smart things you can do with your settlement money.
There are quite a few scenarios that you could be in. As mentioned earlier, maybe you got a wicked new job and received a sign up advance. Or, you spent some money on legal fees to gain a settlement. What you need to do know is whether your money will be subjected to taxes. What we recommend is that you speak to a professional, such as a CPA or a lawyer, to determine whether the nature of your settlement is exempt from taxes.
It is always best to outline a roadmap of what you want to do with your settlement. Maybe you want to purchase a house or invest in a retirement fund. Do you want to give some to charity? Think about what you want and give it a structured plan. In fact, do one better, and create a contingency plan as well. Remember, it is always better to be safe than sorry later.
If the sum is truly massive and you are not sure how to invest it or to best maximise its advantages – bring a financial expert on board who can guide you on what to do. He will be able to tell you which mutual or hedge fund is the best, which property you can buy etc. In essence, he will direct you on how to best diversify your investment portfolio. Of course, you need to do your homework as well and be aware of the market instruments that are available at your disposal. Mate, this is how you avoid getting scammed!
Always wanted to go to postgraduate school? Now is your chance! Just because you have come into a pile of cash, it does not mean that you stop pursuing your path of self-improvement. Take an online class or a part-time schedule if your daily routine is too hectic and does not allow you to return to school full time.
Investing in a life insurance policy will keep your loved ones safe from any form of economic burdens. Make sure that you can afford the monthly premiums. Scan the market and see which life insurance service provider is most suitable to cater to your needs.
Be it real estate, a share in someone’s business, stocks, securities etc – get your hands on some investment. Buy property and rent it out. It will keep you liquid for years to come as it will only accelerate with time. The best part is that it can be inherited by your family or offsprings and secure their future as well. No matter what financial instrument you go for- just make sure you know the risks and rewards associated with it.
What better time is there than to give back to the society that you were raised in? Fund an after-school program in a poor district near you or make a donation to your local church. A small dab of your generosity could make a huge difference in someone’s life. These donations will be tax deductible too when you account for your yearly taxes.
Want to build a brand new bedroom suite? Go for it. Hire the best construction crew and architect possible within your budget and invest in your home. These kind of additions will only help the value of your house to appreciate. Another thing that you could do is to sell of your current home and buy a bigger, better new one. You see, there is so much you can do!
Okay, we have to be honest with you. My friend, if you come in to a hefty sum of money, the first thing you should do is to clear yourself of all debts. Be it a credit card bill or a personal loan, do not default. Clear your name and your conscious. Get your credit rating back up! It is such a great feeling to know that you are truly liberated from the clutches of debt. There is nothing holding you back. Then, you are really free to start afresh and open a new chapter of fiscal success in your life.
One more thing, do not forget to put away a nice sum for a rainy day. By this, we mean to put aside a good sum for any unanticipated emergencies. This could be a health crisis or could serve you well after your retirement. Hey, if nothing else, take it and travel the world!
A trust deed is a form of liquidation, so the unsecured debt needs to outnumber the value of the assets, for example, vehicles or houses. Unsecured debt includes store cards, unsecured loans and credit card debt.
Image source: assets.publishing.service.gov.uk (These statistics released by GOV.UK provides the latest information on company insolvency in Scotland (companies that are unable to pay debt and enter liquidation or enter supervision or some other company recovery process).
Trust deeds are only available if you reside in Scotland. If you live in Northern Island, Wales or England, an IVA (Individual voluntary agreement) is a solution, but it is worth noting that it has different risks, benefits and charges associated with it. A Trust Deed from Carrington Dean can certainly help you get out of the debt swamp by walking you through the whole procedures and methods. Further, let's find out what are the benefits and risks of trust deeds so you can make a well-informed decision to entering it.
Benefits of Trust Deeds
Risks of Trust Deeds
Other Points to Consider with Trust Deed
While making a final decision on whether or not to sign a trust deed, it is best to get expert debt assistance because there are a number of factors to consider, such as:
Getting the best deal for a property is a challenge for aspiring and veteran property investors alike. However, it seems a unique opportunity has presented itself.
UK property investors are keeping a sharp eye on the property market as Brexit draws near. Experts predict that house prices would temporarily dip after article 50 is invoked.
The Sun reports that “Many experts feel that house prices could temporarily dip again if Britain leaves the European bloc without a deal but that it shouldn’t last long.”
For first-time buyers and eager investors, this provides a lucrative opportunity. But like other solid opportunities, the lack of finance is always a stumbling block. Your best bet is to seek properties with great potentials that have been put up for auction.
Auctions provide property investors with mouthwatering deals. Commercial, residential, and mixed properties are often up for grab at bargain prices.
How Auction Buying Works
If only you had someone to put up the required fund, you could buy a property at a bargain price and resell when the market recovers.
Option One: Banks
Your traditional lenders (UK Banks) are of little help here. You need a financial service that can provide the needed funds within days from when the hammer thuds.
Option Two: Family and Friends
If you have a wealthy friend or come from a wealthy family, you could ask them for a loan. However, most Brits, including you, may not have that kind of connection.
Option Three: Auction Finance with a Bridging Loan
You need a financial service that will connect you with a lender within days. The terms of the loan have to be flexible and quick to arrange. And those are the features of Auction Finance otherwise known as Bridging Finance that makes it an excellent choice in this circumstance. Here are some great examples of Bridging Loans and usage from UK Property Finance a renowned company in this sphere.
Most auction finance providers are interested in the exit strategy – your repayment plan, usually the sale of the property or a remortgage.
Why Auction Finance?
Here are three reasons to consider
Position Yourself for the Best Deals
Auction finance companies offering bridging loan providers treat application on a case-by-case basis. Here are a few tips to ensure you get the best deals.
The property market is an ever-appreciating market. A no-deal Brexit offers a great window of opportunity. Use a good bridging finance provider to take advantage of this unique opportunity.
As recently as 2017, the meteoric rise in the popularity (and value) of cryptocurrencies like Bitcoin had people wondering when they might supplant fiat currencies for good. Then, the bubble burst and those lofty hopes faded. The major losses that followed didn't kill the crypto industry, but it did force a wholesale reexamination of what the future of cryptocurrencies and the technology that makes them work would ultimately be.
Big corporations were quick to jump on blockchain (the technology underpinning Bitcoin), sensing it to be the next big thing in data technology. So far, the jury's still out on how well they'll succeed. At the same time, interest in cryptocurrencies in the world of finance has waned considerably. Major financial institutions have relegated the technology to internal systems like inter bank and cross-border transactions, leaving the consumer-facing side of blockchain very much in doubt.
There is one company, however, that hasn't given up on bringing cryptocurrencies into the mainstream of the consumer finance world. It's called TomoCredit, and it offers a rewards charge card unlike any other. Their card pays its rewards to users in the form of their choice of cryptocurrency. Here's an overview of how it works and why it's an attractive option for those looking for a new card.
Anyone who has looked into the latest in credit card offers knows that there are more rewards cards out there than ever before. They offer users everything from gasoline discounts and frequent flier miles to free hotel stays and retail shopping perks. The most popular reward, however, is offered by cash back credit cards. It's possible to find credit card offers that pay back as much as 5% of total purchases, which seems like an unbeatable deal.
That's what makes the TomoCredit card so interesting. It pays users rewards in the cryptocurrency of their choice, at a rate of 10%. That's double what you'll find with conventional cash back cards, and if you play your cards right, the cryptocurrency could appreciate in value before you exchange it for goods or fiat currency.
The other thing that sets TomoCredit apart from the competition is the fact that it's designed specifically for people with little to no credit history. They use cash flow underwriting instead of credit scores to approve applicants for the card. That means they leverage the good payment habits of their customers to extend more credit to others. It's also the reason that the card is a charge card, not a credit card.
With every account settled at the end of each month, TomoCredit isn't taking the risk that they'll have to float huge outstanding balances. That offers them some insurance against bad actors, limiting losses if a user doesn't pay. Altogether, it's a complete reimagining of what a 21st-century credit account can be – and it seems to be generating enormous interest among the card's target demographic.
TomoCredit started allowing sign-ups in mid-August, and in that time, they've amassed a waitlist of 50,000 interested applicants. At present, invitations to apply for the card are going out on a first-come-first-served basis. When you consider that the business is relying on word-of-mouth to advertise their offering, that's a big response in a short time.
This month, TomoCredit expects to begin issuing cards to the first approved users, beginning their monthly operations. With the number of people who've expressed interest in the card, it's possible that the company could represent one of the first real-world fintech firms to bring cryptocurrencies to a mass audience.
Better still, they'll be improving access to credit for people who have few alternatives in traditional credit markets. Time will tell if TomoCredit will ultimately succeed, but they're already an attractive option for card-hunters to consider – and that's a great start.
It has been revealed in statistics provided by the trade union body, the TUC, that unsecured debt in the UK has now reached a new high of £15,400 per British household. To compile its figures, the TUC compared the total amount of money lent in overdrafts, personal loans, payday loans, store cards, and credit card debts.
It also added student loans to these figures, which as a result of tuition fee rises in recent years, added a considerable amount to the average unsecured debt amount. This means that on average, unsecured debt now accounts for around 30.4 percent of income across the country. This is a figure that is higher than it was prior to the financial crash in 2008, which then peaked at £286 billion.
According to the TUC, one of the main factors that area leading many consumers to owe an increasing amount to banks, credit card firms and other lenders in 2018 was due to the many years of austerity and wage stagnation. Both of these have been considered to be huge contributing factors as to why borrowing has increased considerably. For example, total unsecured debt rose to a staggering £428 billion in the third quarter of 2019 according to TUC statistics. This equates to a huge jump of £86 per household just a year prior. The figures do not account for outstanding mortgage debts, however it does include student loans.
Recent reports by the FCA showed that there was an extra £600,000 borrowed in the form of high cost loans in 2018, despite greater market regulation in this area. Moving away from high cost products, more and more high cost lenders have started offering flexible loans repaid over several months and years.
More products have emerged to offer quick loans, assist those with bad credit scores, including flexible overdrafts, secured loan products and loans with a guarantor. The only issue is that the interest rate for bad credit loans can often be two or three times the cost of a good credit loan, which continues to exacerbate the spiraling debt cycle and making the cost of borrowing for vulnerable people even more difficult.
Other reasons contributing to more and more people borrowing has been also down to the rise of the gig economy and zero-hour contracts. These concerns have been raised previously in October 2018 by the Bank of England’s chief economist, Andy Haldane. He was quoted as saying that the rise of work insecurity as a result of the gig economy had ended up driving a ‘lost decade’ of wage growth in the UK. The research by the TUC also showed that gig workers were those that were most likely to have a higher amount of debt at the beginning of this year after the festive season. On average, they put £352 of Christmas spending on credit.
The TUC general secretary, Frances O’ Grady, has also raised concerns about how the low minimum wage in the UK is also contributing to rising levels of unsecured debt, pushing more and more households deep into the red. For example, currently in the UK, you will receive just £7.83 per hour on minimum wage if you are aged over 25. O’Grady has said this remains far too low, and should be raised by the government to at least £10 as soon as feasibly possible.
Another cited issue for rising unsecured debt, according the TUC general secretary, is that too many workers in the UK lacked wage bargaining power meaning that wages remained far too low for many people.