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It’s not just UK residents that would be impacted. While experts predict that a full-blown recession could be on the cards, it’s also believed that it will negatively influence various regions within the EU, with Ireland, the Netherlands, Belgium, Germany, and France most likely to feel the consequences. Indeed, even countries as far afield as America could be adversely impacted.

This means that it makes sense to have a plan in place – preferably, one that includes a financial safety net to combat any uncertainty or financial difficulties that come on the back of the UK’s exit from the EU.

With this in mind, here are a few handy tips to turn you into a post-Brexit super saver.

Draw up a preliminary budget

Budgeting is considered essential to good money management, but not everyone puts this theory into practice. There are very few of us who cut our costs as much as we feasibly could, but with the possibility of a no-deal Brexit looming, you’ll want to not only reduce your immediate expenditure, but identify any additional areas where you could decrease your outlay even further should this become necessary. With this in mind, we recommend that you spend some time drawing up a table of your incomings and outgoings, so you can work out what you could go without well in advance of it becoming a necessity.

Keep an eye out for more economical alternatives

Although UK PM Boris Johnson remains adamant that the UK will leave the European Union before the end of the month, the reality of Brexit remains little more than academic, but it’s unlikely to stay this way forever. Recession is a very real possibility, so even if you don’t want to go the whole hog immediately, you should already be looking to make small savings where you can. This doesn’t mean going without entirely; rather, it means swapping your Heinz baked beans for own-brand alternatives, and visiting comparison sites; for everything from travel, utility bills and iGaming. For example, in regards to online casinos, with a generous multistep welcome package, Dunder is a solid choice, giving you the chance to play the games you enjoy without breaking the bank, or sites like Compare the Market for insurance, and Trivago for travel.

Review your interest rates

One of the big difficulties with Brexit is that nobody can truly predict how it will affect the economy. This means that interest rates could do almost anything, either remaining low if the financial landscape worsens or rising along with inflation. However, there is one way to know for certain what your future spending on credit products will look like, and that’s by fixing your interest rates. Experts suggest that to safeguard yourself against what’s ahead, your best bets are to either switch to a lower rate or consolidate your debt so you can accurately plan ahead.

Isn’t it time you started making some changes?

When it comes to property investment in the United Kingdom, Simon Nosworthy of Osbornes Law Firm believes that the housing market has already pre-adjusted for Brexit, according to The Sun. Investors who decide to pick up properties before, during or after Brexit may be grabbing bargains that they can sell for big profits when the market recovers.

While property investment in the UK is currently subject to a lot of uncertainty and has its pros and cons, there will be investors who read the property investment landscape perfectly and then make a mint.

Look at the bright side

Buying property has many advantages (capital growth over time and/or rental income), provided quality properties in good locations are chosen. The UK real estate market shifts, but savvy investors know when to get into the market and when to get out. Since prices have dipped a bit due to Brexit uncertainty, there are valuable properties available which are cheaper than they normally would be. These properties may increase in value once Brexit issues are finally resolved. Whether you’re interested in buying a home or flat and renting it out to make cash, or investing in commercial real estate, the silver lining in Brexit uncertainty is that deals are out there. If you’re interested in buying, know the risks and choose a property or properties with the utmost care.

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Know the risks and choose carefully

To boost the odds of a successful property investment, you should examine prospective properties with a fine-tooth comb. Properties should be in locations that are in demand or growing more popular. Properties should be in good condition, and tests will be needed, as visually inspecting a property on your own isn’t enough. It’s wise to pay for surface and air inspections that determine whether mold is present. You should also pay inspectors to determine whether homes or commercial properties have other issues, such as structural defects or water damage. Mold remediation is possible and should not break the bank, but issues with structural integrity and water damage may cost a lot to fix and cut into profits when you resell.

Prepare to be patient

Short-term flips are always an option, but current real estate market conditions point to playing the long-term property investment game. Buy undervalued properties on the cheap and hang onto them, so you can make good money when you sell them once the Brexit dust settles. Rent a property while the UK adjusts to a new reality, and prepare for the future: when the market rebounds and you’ll be able to sell with great results.

The pros of UK property investment in the age of Brexit, such as lower real estate prices and the possibility of big profits in the future, are balanced by the uncertainty and risk that Brexit brings. Weigh the pros and cons before making a play in the real estate market.

Commercial finance intermediaries are divided on Brexit. One out of four respondents consider it a key challenge, while one fifth believe that it will bring new business opportunities. However, commercial finance intermediaries have a positive future outlook. 77% of respondents believe that the number of loans they broker will increase; more than half of these even go so far to say that they believe it will rise by a lot.

According to recent statistics from UK Finance, conducted with the support of industry organisations NACFB and FIBA, UK lenders approved over 290,000 loans and overdrafts to small and medium-sized businesses (SMEs) in 2018, worth £28 billion in total. Commercial finance intermediaries, including brokers, accountants and business advisers, are often the invisible hand in these transactions. They play a crucial role in helping UK businesses source the right funding from all the different options offered.

However, despite the healthy size of the SME loan market in the UK  there is still a £22 billion funding gap, with many businesses struggling to obtain capital for their needs , according to the Bank of England. What’s more, recent stats from the British Business Bank highlight the importance of commercial finance intermediaries stating that businesses receiving external support when looking for funding are 25% more likely to become high-growth companies.

Commenting on the survey findings, Niels Turfboer, managing director at Spotcap, said: “Commercial finance intermediaries are an important part of the SME funding jigsaw. The survey insights show that there is a lot of potential for them to help fill the  £22 billion funding gap. The more adaptable and open-minded to change intermediaries – and lenders – are, the better and faster they can compete and grow their business.”

Adam Tyler, the executive chairman at FIBA, the Financial Intermediary & Broker Association, adds: "We benefit hugely from such a wide range of lenders and to know that SMEs are still not aware of the choice is very disappointing. My own research has revealed similar shortfalls and the more we can do collectively, the more small businesses can get the funding they require."

Graham Toy, CEO of the National Association of Commercial Finance Brokers, responded to the findings: “The research chimes with our own view of the commercial finance broker’s role in supporting and advising business borrowers. Brokers have a positive outlook partly because they remain instinctively agile, with many of them having weathered the unpredictability of a post-2008 world.”

Importantly, the political situation does not accurately reflect the current state of affairs in other sectors of the economy. Jerald Solis, Business Development and Acquisitions Director at Experience Invest works closely with international investors, and he says it’s reassuring to see that UK property, be it commercial or residential, is still held in high regard.

In the first half of 2017, and less than a year following the EU referendum, the UK made up 14% of global commercial property investment transactions. This was second only to the US and tells us that international investors evidently were not letting the prospect of Brexit impact their long-term real estate investment strategies. Meanwhile, total investment volumes into the UK’s multifamily residential sector rose by more than 150% to reach $7.6 billion in 2018.

So, what is it about UK property that holds global interest even at the most challenging of times, and how can international investors use Brexit to support their long-term financial goals?

Why does interest in the UK market hold strong?

Currency fluctuations in the wake of the Brexit vote has had a significant influence on investment decisions. Since June 2016, the value of the pound has steadily fallen; as a result, overseas investors have found themselves enjoying more buying power, particularly within the prime property market.

With a weakened pound, overseas investors have been in the position of being able to snap up UK properties at discounted prices. According the HMRC, for instance, there was a 50% spike in the number of UK homes sold for over £10 million in the year following the vote.

The Bank of England has also cut interest rates to historic lows, encouraging investment in real estate assets. The interest rate has been held at 0.75% since August 2018, with little indication of this being raised in the near future.

Diversifying opportunities

While foreign interest in the market remains, investors’ strategies have been changing in response to Brexit. Namely, the variety of opportunities now on offer means that investors have been looking beyond the traditional remit of property investment in the UK to explore new cities and sub-sectors that offer the potential of long-term capital growth.

Historically, London has been the destination of choice for international investors. However, in recent years, investors have increasingly recognised high-growth cities and leading business destinations like Manchester, Liverpool, Leeds and Newcastle.

This is something we have witnessed first-hand at Experience Invest. Indeed, Manchester and the other so-called Northern Powerhouse cities have attracted some of the highest levels of Foreign Direct Investment of any UK region outside of London according to research from Ernst & Young.

It should come as no surprise then, that house prices in Manchester have surged; in the 12 months to July 2018, house prices rose by nearly 9%. Meanwhile, enquiries by Chinese investors alone about buy-to-let options in the city soared by 255.6% in January 2018 compared to the same month in the previous year.

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Cities like this, which are undergoing rapid regeneration, have been clear favourites in the aftermath of the Brexit vote. The reasons for this are clear; with prices in such areas typically below those seen in the capital, rental yields and capital appreciation forecasts tend to be markedly stronger.

Indeed, such cities are also home to a large student population, representing huge demand for year-round accommodation and good long-term investment prospects. This translates to another trend taking hold. Namely, overseas investors are beginning to diversify their assets, looking towards options such as Purpose-Built Student Accommodation (PBSA) that cater to growing demand for term-time accommodation. Indeed, overseas investors dominate the UK PBSA market according to Cushman & Wakefield, making up 55% of 2018 transactions.

The UK’s proven track record for delivering high-quality real estate leaves us in no doubt that international investors will continue to target the UK, albeit perhaps with a different approach. Particularly with a heavy investment in regeneration projects up and down the country, the improvements in infrastructure and connectivity, as well as the delivery of sought-after new-builds, means that the UK property market will remain a top target for investment – even if it does naturally experience an immediate post-Brexit wobble.

The Financial Institutions Sentiment Survey, now in its fourth year, canvassed the views of more than 100 senior decision makers at a broad range of organisations – from global banks and insurers to intermediaries, investors and asset managers – to explore the key themes shaping their sector.

The report found that more than half of firms (58%) are expecting growth in the UK economy to slow down in the next 12 months – twice as many as held that view in 2018 (29%). Two-thirds of them (67%) expect domestic growth in the coming year to be weaker than G7 peers.

These views were broadly mirrored in respondents’ expectations for the UK financial services sector with 55% forecasting that growth would deteriorate during the year ahead, up from 27% in 2018.

Similarly, most senior executives (54%) said they have become less optimistic about the future of their industry in the past 12 months, up from 40% in 2018.

Meanwhile, two-fifths of firms (40%) expect their own revenues to increase – albeit down from 64% last year – with only 17% seeing income falling next year.

More than half of firms feel they are prepared for the UK’s departure from the EU, with 59% stating they are ready for a ‘no deal’ Brexit with little or no dependency on a transition period and no further extension.

The remainder of firms surveyed are dependent to some extent on a transition period to complete their contingency planning, with almost a third (29%) saying that they have a limited dependency and 12% saying that they have a significant dependency.

Despite the focus these preparations require, the sector continues to invest in the UK, with a third (31%) expecting investment to increase during the year ahead (compared to 24% in 2018). Only 10% of respondents forecast a reduction in investment in their UK business over the next 12 months.

Top risks identified

The three most significant risks cited by survey respondents remained unchanged on last year, with the UK’s departure from the EU top (58%), followed by economic uncertainty (36%), and new regulation (31%).

Significantly, the risk posed by cybercrime (29%) has leapt from eighth place to fourth since 2018.

Last year 46% of respondents said one of their firm’s top three technology investment strategies for 2018 was to improve cybersecurity, behind improving customer satisfaction (49%) and reducing operating costs (48%). In 2019, cybersecurity moves to top of the tech agenda and with greater prominence – 70% are now prioritising it as an area for investment.

Robina Barker Bennett, Managing Director, Head of Financial Institutions, Lloyds Bank Commercial Banking, said: “The past year has presented many challenges for businesses. Against a backdrop of on-going global economic turbulence, it is unsurprising that sentiment among financial institutions towards the sector and the wider economy is lower than in previous years.

“That said, the responses to this survey show the sector’s resilience during difficult times and it is especially encouraging to see that firms plan to continue investing in the UK.

“In 2019, firms are arguably more dependent than ever on technology. With this rapid advancement, the risks from cybercrime are increasing, placing extra pressure on financial institutions to change the way they operate.”

Tracking 65,384 property sales between August 2018 and August 2019 from start to finish, the monthly updated local house market insights tool shows the average differences between asking prices on Rightmove and their actual sold prices lodged at the HM Land Registry.

It was revealed that, out of the 575 assessed properties in South West London, sellers were dropping their asking prices by an average of over £71,000 to secure a sale.  A similar story was seen in North West London, where 206 vendors reduced their initial prices by almost £69,000 on average.

Below are the top 10 areas with the greatest drops have been seen:

Region Average Difference Between Asking and Sold Prices No. of Properties Analysed
South West London -£71,178 575
North West London -£68,840 206
West London -£53,998 243
North London -£37,597 369
Kingston upon Thames -£28,147 641
Harrow -£27,818 260
Slough -£27,584 258
Watford -£25,705 276
Guildford -£25,435 694
Western Central London -£25,268 4

Property Solvers co-founder Ruban Selvanayagam commented: “Even some of the most experienced estate agents are failing to understand the current realities.” 

“Arguably due to the cloud of uncertainty surrounding Brexit, we’re operating in a buyer’s market at the moment and the fact that agents knowingly state exaggerated valuations at the initial stages is a disservice.”

Bearing in mind that prices in the South tend to be higher than in the Midlands and North, some of the lowest asking to sold reductions were seen in Wigan (-£3,890), Hull (-£4,258), Doncaster (-£4,705), Sheffield (-£4,884) and Sunderland (-£4,915).

Selvanayagam goes on to comment: “When we speak to homeowners, we always underline the importance of referring to HM Land Registry sold price data.  It’s never been easier to access this kind of information online.”

"Of course, it’s never a bad idea to incorporate a bit of wiggle room into the price.  Also, if a client has spent a significant amount of money on extending / refurbishing or there’s more floor space then, of course, it makes sense to command more.”

“However, overly inflated price valuations in the current sales climate invariably leads to properties lingering on the market for a lot longer than they need to.”

Do such disparities between asking and sold prices mean that the market is crashing?

“I would say not – although much would depend on the outcome of the seemingly endless Brexit negotiations.  A ‘no deal’ or disruptive exit from the European Union could, however, change the trajectory of house prices.  However, it’s too early to predict at this stage.”

Trump vs. China

Back in 1930, the US introduced the Smoot-Hawley Tariff Act, which raised their already high tariffs, triggering a currency war and, as economists argue, exacerbating the Great Depression. With President Donald Trump’s threat to put 10% tariffs on the remaining $300 billion of Chinese imports that aren’t subject to his existing levies, sending markets tumbling from Asia to Europe, the question on everyone’s lips is: Is history about to repeat itself?

In August, in a bid to hit back against Trump’s administration, Beijing allowed the Chinese yuan to plummet past the symbolically important $7 mark. Economists suggest that this currency manipulation is China’s attempt to display dominance and gain the upper hand in the trade war between the two countries as devaluating its currency could help counteract the effects of US’s long list of tariffs on Chinese goods.

As protectionist actions escalate and US-China relations continue deteriorating, investors and markets have been growing increasingly concerned even though Trump has delayed the imposition of his new tariffs until December. A full-blown trade war wouldn’t be good news to anyone and could seriously weaken the global economy, as the IMF has warned, making the world “poorer and more dangerous place”. Both sides are expected to experience losses in economic welfare, while countries on the sidelines could experience collateral damage. Furthermore, if tariffs remain in place, losses in economic output would be permanent, as distorted price signals would prevent the specialisation that maximises global productivity. The one thing that’s certain, no matter how things pan out, is that there will be no winners in this war.

Economists suggest that this currency manipulation is China’s attempt to display dominance and gain the upper hand in the trade war between the two countries as devaluating its currency could help counteract the effects of US’s long list of tariffs on Chinese goods.

Cyberattacks & data fraud

Millions, if not billions, of people’s data has been affected by numerous data breaches in the past couple of years, whilst cyberattacks on both public and private businesses and institutions are becoming a more and more frequent occurrence. With the deepening integration of digital technologies into every aspect of our lives and the dependency we have on them, cybercrime is one of the greatest threats to every company in the world.

Cyberattacks are rapidly increasing in size, sophistication and cost, as cybercrime and data breaches can trigger extensive losses. In 2016, Cybersecurity Ventures predicted that cybercrime will cost the world $6 trillion annually by 2021, up from $3 trillion in 2015. According to them, ”this represents the greatest transfer of economic wealth in history, risks the incentives for innovation and investment, and will be more profitable than the global trade of all major illegal drugs combined”.

 Emerging Markets crisis

Since the early 1990s, emerging markets have been a key part of investors’ portfolios, as they have been offering strong returns and faster growth. However, global trade tensions, a stronger US dollar and rising interest rates have hit emerging markets hard. Still far from catching up with the developed world, many supposedly emerging markets are developing at a slower pace, which combined with the threat of a global trade war and higher borrowing costs on the rise, has made investors pull in their horns. Emerging markets are the ones feeling the strain and financial panic has been gripping some of the world’s developing economies.

With political instability, external imbalances and poor policymaking which has led to full-blown currency crises in the two nations, Turkey and Argentina have been at the centre of an emerging market sell-off last year. But they are not the only emerging economies faced with a currency crisis – according to the EIU, some economies which are already in the danger zone and could suffer from the same currency volatility include Brazil, Mexico and South Africa.

Still far from catching up with the developed world, many supposedly emerging markets are developing at a slower pace, which combined with the threat of a global trade war and higher borrowing costs on the rise, has made investors pull in their horns.

If the currency crises in Turkey and Argentina continue and develop into banking crises, analysts predict that investors could abandon emerging markets across the globe. “Market sentiment remains fragile, and pressure on emerging markets as a group could re-emerge if market risk appetite deteriorates further than we currently expect”, the EIU explains.

 Climate crisis

In recent months, the media is constantly flooded with reports on the horrifying environmental risks that the climate crisis the Earth is in the midst of poses, but we’re also only starting to come to grips with the potential economic effects that may come with it.

Despite the significant degrees of uncertainty, results of numerous analyses and research vary widely. A US government report from November 2018 raised the prospect that a warmer planet could mean a big hit to GDP. The Stern Review, presented to the British Government in 2006, suggests that this could happen because of climate-related costs such as dealing with increased extreme weather events and stresses to low-lying areas due to sea level rises. These could include the following scenarios:

Due to climate change, low-lying, flood-prone areas are currently at a high risk of becoming uninhabitable, or at least uninsurable. Numerous industries across numerous locations could cease to exist and the map of global agriculture is expected to shift. In an attempt to adapt, people might begin moving to areas which will be affected by a warmer climate in a more favourable way.

A US government report from November 2018 raised the prospect that a warmer planet could mean a big hit to GDP.

All in all, the economic implications of the greatest environmental threat humanity has ever faced range from massive shifts in geography, demographics and technology – with each one affecting the other.

Brexit

Fears that the UK could be on the brink of its first recession in 10 years have been growing after figures showed a 0.2% contraction in the country’s economy between April and June 2019. A weakening global economy and high levels of uncertainty mean the UK’s economic activity was already lagging, but the potential of a no-deal Brexit and the general uncertainty surrounding the UK’s departure from the EU, running down on stock built up before the original 29th March departure date, falling foreign investment and car plant shutdowns have resulted in its GDP decreasing by 0.2% in Q2. This is the first fall in quarterly GDP the country has seen in six and a half years and as the new deadline (31st October) approaches, economists are concerned that it could lead to a second successive quarter of negative growth – which is the dictionary definition of recession.

And whilst the implications of Brexit are mainly expected to be felt in the country itself, the whole Brexit process displays the risks that can come from economic and political fragmentation, illustrating what awaits in an increasingly fractured global economy, e.g. less efficient economic interactions, complicated cross-border financial flows and less resilience and agility. As Mohamed El-Erian explains: “in this context, costly self-insurance will come to replace some of the current system’s pooled-insurance mechanisms. And it will be much harder to maintain global norms and standards, let alone pursue international policy harmonisation and coordination”. Additionally, he goes on to note that tax and regulatory arbitrage are likely to become more common, whilst economy policymaking could become a tool for addressing national security concerns.

“Lastly, there will also be a change in how countries seek to structure their economies”, El-Erian continues. “In the past, Britain and other countries prided themselves as “small open economies” that could leverage their domestic advantages through shrewd and efficient links with Europe and the rest of the world. But now, being a large and relatively closed economy might start to seem more attractive. And for countries that do not have that option – such as smaller economies in east Asia – tightly knit regional blocs might provide a serviceable alternative.”

The deadline to negotiate the exit was recently prolonged to October 31st, 2019. What are financial and economic consequences going to be for the UK? Public opinion has changed a lot lately. Theresa May has stepped down from the position of the UK’s Prime Minister and got replaced by Boris Johnson on 24th July. He promised that Brexit is going to be executed by 1st November with or without a deal with the European Union. Labour party demands another vote, as their members don’t think that leaving the EU would be a good idea at this moment.

Great Britain would no longer have the tariff-free trade status with other European countries if they decide to leave without a deal. This would have a significant increase in exports cost and automatically make the UK goods more expensive in Europe and potentially weaker the British Pound.

The prices to import goods to the UK would be higher, which also means some of them would simply reconsider distribution to Britain.

The same thing would happen with European merchants. The prices to import goods to the UK would be higher, which also means some of them would simply reconsider distribution to Britain. One-third of the food is coming from the European Union, which means inflation and a lower standard of living would be inevitable for UK residents. No deal agreement could also reignite the issues with North Ireland. This country would stay with the UK but there would be a custom border introduced between them and the Republic of Ireland. The last two things we would like to mention as a potential consequence of no-deal exit are rights for EU citizens living in the UK and outstanding bills. In case of an exit like this UK would have to pay $51 billion of debt and find a solution to guarantee rights to EU people within their borders.

Hard Brexit is the second alternative, and it is different in so many ways than the above-mentioned exit. This one would include a trade agreement with the EU; but this would require another re-schedule of the exit, as there is no enough time to negotiate it. Hard Brexit could have serious consequences on London as the financial centre. A lot of companies would stop using it as an English-speaking entry to the European Union economy. Also according to the latest research, more than six thousand people could lose jobs because of this and turn the real estate market into a disaster. There would be hundreds of office buildings in London sitting empty, without anyone to rent them. By comparing housing prices now and two years back, the price has already started to drop drastically. Another significant impact on UK companies would be the inability to place bids on public contracts in any European Union zone. This would take a massive toll on banking as well. Best betting sites experts have publish some odds that show that Hard Brexit deal would also increase costs of mobile phone services and airfares. Could the UK lose Scotland in case of Hard Brexit agreement? Potentially, yes. Scotland might have a bigger advantage of being an EU member, which also means a referendum to leave the United Kingdom. One of the most profitable industries in the UK is online gambling, and this one shouldn’t be affected much by any option.

Brexit and its surrounding political upheaval is of course much to blame. Here Ana Bencic, Founder & CEO of Nexthash, delves into the potential benefits cryptocurrencies could offer in situations like this.

Figures taken on Tuesday 6 August show the pound trading for $1.2176 and €1.1199 respectively. The Brexit-related insecurity has been attributed listed as one of the factors behind the decline in the value of the pound, made worse by weak retail sales in June.

With the decline in the national currency and with Brexit on the horizon, questions are swirling around, about how the UK can maintain its attractiveness to foreign and domestic investors.

Investors who have been taking notice of the unpredictable nature of fiat currency’s’ value in relation to political events, as well as the near-constant rise in the value of several cryptocurrencies, will be looking at what makes cryptocurrency a viable alternative to traditional currency.

With more uncertainty than ever in the market, including the inability to hold above 1.27, the pound, it is clear that the value of pound sterling is predicated on political factors. In stark contrast, cryptocurrencies like Bitcoin and Ethereum appear to be unaffected by political upheaval. The value of Bitcoin has reached peaks of over $9000 and despite price drops, it appears to be gradually increasing in value over time. Investors who are wary of traditional currencies will be attracted to the fact that cryptocurrencies are not created by, or under the direct control of any financial institutions or third-party entities. Blockchain-based cryptocurrencies are decentralized and they use peer-to-peer technology to enable all functions such as currency issuance, transaction processing and verification to be carried out collectively by the network. While this decentralization renders cryptocurrencies free from manipulation or interference by a government or central bank, the flipside is that there is no central authority to ensure that things run smoothly or to back the value of a particular currency.

Additionally, Bitcoin effectively increases efficiencies, adds security to transactions and eliminates traditional methods of fraud. Some economic analysts predict a big change in crypto is forthcoming as institutional money enters the market. Moreover, there is the possibility that crypto will be floated on the Nasdaq, which would further add credibility to blockchain and its uses as an alternative to conventional currencies. Some predict that all that crypto needs is a verified exchange traded fund (ETF). An ETF would make it easier for people to invest in Bitcoin, but there still needs to be the demand to want to invest in crypto, which some say may not automatically be generated with a fund.

Cryptocurrencies are yet to reach their full potential, but this will come with time as traditional investors & traders start to use it more often and several major first-world nations pass legislation in support of cryptocurrency trade and investment. At this point, the crypto market is estimated to be worth $700 billion and the perception is that digital currencies are here for good.

Cryptocurrencies are yet to reach their full potential, but this will come with time as traditional investors & traders start to use it more often and several major first-world nations pass legislation in support of cryptocurrency trade and investment.

Countries with underdeveloped infrastructure and nations experiencing devaluation of their national currency can seize the advantages of cryptocurrencies- for the simple reason they can move money across their country’s borders with far greater ease than traditional currency.

Traders make use of cryptocurrencies as a peer-to-peer payment method, allowing them to send money in much less time than a bank transfer would take and with relatively low transfer fees when transferring funds internationally.

Blockchain based currencies will continue growing in popularity with traders and investors for their unique advantages of confidentiality, immutability, fast transaction times and a lack of external mediators.

Although political events,  such as Brexit can disrupt areas like the fuel economy, the sector as a whole is strong. Why? Simple: because we always need energy.

However, in terms of a general investment strategy, there are times when non-essential commodities can be profitable. For example, since 2009, cryptocurrencies such as Bitcoin have become popular. Although experts will argue from an ideological standpoint that we need cryptos and blockchains, the reality is that they aren’t necessary (i.e. we already have currencies).

Non-essential markets may be essential investments

Of course, that could change as developers find new ways to use blockchain technology to prevent fraud and the like. However, right now, crypto technology remains a niche market. But, even though that’s the case, you can still make a lot of money from investing in Bitcoin, Ethereum and other tokens. The same can be said of other innovative yet non-essential industries. A prime example is gaming. Although it doesn’t fall into the same class as energy or forex, it presents no less value in terms of opportunities if you understand the market.

When you look at gaming as a whole, it’s currently worth an estimated $137.9 billion. According to the Global Games Market Report, 2.3 billion gamers now enjoy a combination of online, console and mobile games. In fact, the latter is the largest entity within the gaming industry, generating $70.3 billion in revenue in 2018. However, when you delve further into the market, an abundance of similar but diverse revenue streams present themselves. For example, online casino operators such as GVC Holdings are now among the largest gaming companies in the world.

With casino sites attracting casual players through welcome bonuses, such as free spins, complete novices are now becoming familiar with Vegas-style gaming online. In fact, such is the variety of promotions out there, third-party sites have become an essential way of directing players to the best spots. By reviewing the latest free spin offers and, more importantly, explaining the terms and conditions, review sites have made casino gaming more attractive and accessible to novices. Put simply, these sites, as well as the operators, have turned online casino gaming into a $45 billion+ entity.

Investing in gaming isn’t a game

Alongside gaming operators such as Amaya, which completed a $4.4 billion takeover of PokerStars back in 2014, video game companies have been flexing their muscles in recent years. Perhaps one of the best-known developers is Electronic Arts (EA). Boasting a share price of $95+ in August 2019, this gaming company saw revenue top $5.15 billion in 2018 for a net income of $1.04 billion. Helping to bolster EA’s balance sheet is a list of acquisitions that stretches back to 1987. Starting with Batteries Included and moving into the present day with takeover of mobile developer Industrial Toys, EA has been one of the industry’s most active players.

However, it’s not just EA making moves. Everywhere you look in gaming, something big is happening. With virtual reality (VR) and augmented reality (AR) starting to evolve, the market looks set for another rush of activity. For any savvy investor, this has to be worth considering. Even though games are, in essence, ephemeral, it seems their appeal isn’t. While the likes of Activision or Ubisoft might not form the foundations of your portfolio, they certainly have their place. Indeed, if you’re considering entering the investment game, gaming could be an ideal market.

Dealing with risk is a part of running any business, but CFOs can plan ahead to minimise any impact. When it comes to Brexit, they need to start planning for potential outcomes as soon as possible to be on the front foot. Simon Bittlestone, CEO of financial analytics firm Metapraxis, shares his tips on how to prepare for what’s to come post Brexit.

 Synonymous with uncertainty

Brexit is throwing up so many unanswered questions - will Britain stay in the customs union? Will EU workers be allowed to stay in their UK-based jobs? How will leaving the EU impact profitability? C-suite executives, especially CFOs, are responsible for paving the way for a smooth transition and mitigating any potential negative impacts on the business effectively.

To do that, they need confidence in their decisions more than ever, and this is where technology can step in. Risk-taking will always come as part of the job description for business leaders and nothing can replace the instinct of an experienced leadership team. But amongst such high levels of uncertainty, and when negotiations with Brussels take a different turn every week, technology can help instil confidence that instinct is leading to the best strategic decisions.

Brexit or no Brexit, financial planning starts with target setting.

Planning pitfalls

Brexit or no Brexit, financial planning starts with target setting. Historically, businesses identify and outline their overall goals for the year in line with the business objectives. Keeping these targets realistic is vital for success, and doing so means understanding the importance of historical data. If the board can see performance trends within the context of the market, there is a far better chance of setting achievable goals from the start. Additionally, building a better picture of the company means management teams can understand all the business nuances and can better mitigate risk from the outset.

For finance to achieve data-driven success, it needs to overcome its greatest foible: Microsoft Excel. Though it can be customised to some extent, the tool cannot accurately reflect the complexity of an organisation with scale and agility and leaves the business vulnerable to human spreadsheet errors. It’s time to take advantage of financial analytics. Political and socio-economic factors are making markets more uncertain, so CFOs need to be far more agile when it comes to financial planning. The ability to run quick ‘what-if’ scenarios and see the potential impact of them is invaluable, and it’s just not possible with Excel.

Practical and proactive

With so many uncontrollable factors in the mix, companies need to retain an element of flexibility in their business planning. It’s no longer sustainable, or indeed sensible, to run a one-off annual planning session that cannot be tweaked throughout the year, as different factors come into play. If businesses want to keep achieving their set goals, they need to identify potential future uncertainties, risks and changes now, and be able to react to them on an ongoing basis.

It’s no longer sustainable, or indeed sensible, to run a one-off annual planning session that cannot be tweaked throughout the year, as different factors come into play.

Financial analytics can map all the key performance drivers across the business and build up a comprehensive picture of the history of the organisation, including how performance is affected by certain external events. In doing so, the business can effectively undergo scenario modelling – a game-changer when it comes to the endless questions and possibilities associated with Brexit.

Modelling the different possible outcomes of hypothetical situations will allow finance teams to better understand their potential impact. This can be done for both internal structural changes and external events to give invaluable insight to inform better strategic decisions. It’s possible for all this to happen in real-time in the boardroom: saving time, money and increasing chances of success too.

In the past, management teams could afford to be more insular in their approach – there was no need for anything other than internal factors to be taken into account, and planning was entirely focussed on the business’ own financial year. Now, it’s very different. There are so many uncontrollable factors impacting the market and contributing to financial uncertainty. CFOs don’t have to resign themselves to being unable to plan for this, they just need to have the right technology in place. Financial analytics and scenario modelling will allow CFOs to implement rolling plans that can adapt to fluctuations in the market. This agility is the key to weathering the Brexit storm.

The financial crash of 2008 created a huge amount of mistrust toward big banks and FinTech entrepreneurs have taken advantage of that. The disintermediation of banks from areas such as travel money has given rise to a new kind of financial service firm, an area set to carry on this trend. There are some brilliant ideas in FinTech and the problems they solve are widely unrelated to Brexit, meaning that investment is likely to continue to grow.

In much the same way as FinTech came from the financial crash, existing sectors will be disrupted, and new ones created to tackle problems that arise. Many FinTech innovations were born from a lack of trust of banks and traditional sources of financial services. Since 2008, over 200 FinTech companies have been founded in the UK alone, with seven of these going on to reach a billion-dollar valuation or a ‘Unicorn’ status.

Unicorns refer to start-ups that have reached what many perceive to be the holy grail of a $1billion valuation. In terms of producing these companies, the UK is the third best place in the world behind only the US and China. In 2018, 13 companies reached this valuation in the UK, bringing the total number to 72. Many of these companies are FinTechs born of the financial crash. It seems likely that in a few years’ time we may be discussing an even greater number of companies reaching this milestone with a contribution from new and growing sectors.

With Brexit, there are going to be more problems to solve, and entrepreneurs are going to come along and innovate.

The first sector that looks set to benefit is regulation and regulation technology. With Brexit, there are going to be more problems to solve, and entrepreneurs are going to come along and innovate. Everything will get more complicated with import and export, say, and some smart man or woman will come along and solve it. RegTech has already been impacted – perhaps indirectly – by the financial crash, as an increased amount of regulation and legislation led to the birth of many innovative solutions to keep financial services at such a high pace.

Since this time, it is clear to see the rise of this sector within financial services, with over 300 companies working with Financial Services firms in a variety of sectors. Each of these dealing with a specific problem that is ever evolving and often becoming more complex.

Regulatory Reporting is one such example, it enables automated data distribution and regulatory reporting through big data analytics, real-time reporting and the cloud. Many financial organisations have expressed frustration with the high level of redundancy, dependence on manual processes, and opacity of their regulatory reporting processes. This is a critical activity for financial institutions and without tech solutions would require a concerted effort from a range of departments including, risk, finance, and IT.

Risk Management detects compliance and regulatory risks, assesses risk exposure and anticipates future threats. There are over 45 companies specialising in this already and with so much uncharted territory around leaving the EU, this looks to be a potentially important field in the next few years. One of the most important things businesses can do is to properly understand and calculate risk, take too few and growth will stall, take too many and you may be overexposed.

Compliance is the largest RegTech sector with a large scope and responsibility.

Identity Management & Control facilitates counterparty due diligence and Know Your Customer (KYC) procedures. Alongside Anti Money Laundering (AML) and anti-fraud screening and detection. Identity management is the second biggest sector in terms of the number of firms and is hugely important in a wide range of ways especially when growing and taking on new customers and clients.

Compliance pertains to real-time monitoring and tracking of the current state of compliance and upcoming regulations. Compliance is the largest RegTech sector with a large scope and responsibility. Companies from this sector are charged with meeting key regulatory objectives to protect investors and ensure that markets are fair, efficient and transparent. They also seek to reduce system risk and financial crime. As regulations change when we do leave the EU, this will likely be one of the key sectors to face some of the challenges that arise.

Transaction Monitoring provides solutions for real-time transaction monitoring and auditing. It also includes leveraging the benefits of distributed ledger through Blockchain technology and cryptocurrency. Even apart from Brexit, cryptocurrency and Blockchain tech looks to be a sector of huge growth in the next few years, regulating that in the context of traditional financial service providers will be of significant importance.

For all of these sectors, it is likely that changes to legislation and procedures after Brexit will have a profound effect on what is required by firms in order to stay compliant, potentially creating a huge number of problems that will have to be dealt with in one way or another.

You just have to reverse engineer all the problems that are going to be thrown up by Brexit and then you’ve got investment opportunities. Here’s a problem, let’s find an opportunity.

Wherever’s there’s huge problems and disasters, there’s always going to be an entrepreneur who comes along and will find a solution. From my perspective, that’s exciting because these new crunch points provide opportunity and employment. I set up IW Capital in a recession after a stock market crash, and WeSwap was set up because the market was falling to pieces. What actually happened was the birth of the FinTech sector. Opportunity comes out of a crisis.

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