Here Finance Monthly hears from Kasim Zafar at investment specialists EQ Investors, who looks back at the past decade and considers the investment opportunities we should be considering ahead.

We started the decade with the global economy still reeling from the worst financial crisis in modern times.

Following the failure of the banks, trust in capitalism was then further eroded by the largest financial fraud in US history; Bernie Madoff was imprisoned for 150 years after defrauding clients to the tune of $65 billion.

Extraordinary times called for extraordinary measures. By 2012, most major central banks had slashed interest rates close to zero or below, hoping that ‘free money’ would help the economy heal and return to growth. Trillions of dollars were pumped into financial markets to plug anything resembling a hole. The idea was basic, yet oxymoronic. To save free market capitalism, central banks staged the greatest market intervention of all time.

Sovereign debt crisis

Europe was tested further by its sovereign debt crisis. Despite zero interest rate policies, the rate demanded to fund government debt of the ‘PIIGS’ (Portugal, Italy, Ireland, Greece and Spain) soared between 2010 and 2012, reaching almost 30% in the case of Greece’s 10-year debt.

The European Central Bank created its rescue package to save the European Union from imploding, committing to buy a massive amount of European sovereign debt. Despite this, since the root cause of the problem was too much debt, European governments adopted austerity measures, cutting fiscal stimulus spending.

Quantitative easing in the US put a line under asset prices, first bringing stability and then allowing growth, to the substantial benefit of those with wealth invested. The wave of economic austerity that swept across Europe led to an increase in income inequality and sowed the seeds of populism.

Environmental instability

Distrust of big companies spread beyond bankers like wildfire with the largest environmental disaster in American history. BP’s Deepwater Horizon oil spill in the Gulf of Mexico eventually cost the company more than $65 billion in clean-up costs and compensation.

There was no shortage of environmental tremors. We saw floods on multiple occasions in Pakistan, India, China, Brazil, Thailand and the UK. Hurricanes Sandy, Irma, Maria and Harvey; earthquakes devastated Haiti, Chile, Mexico and of course Japan where in Fukushima we witnessed the world’s second largest nuclear power plant disaster after Chernobyl.

The latest signs of an overheating planet are record temperatures (high and low) across the globe, including fires in the Amazon rainforest and across Western Australia in 2019.

A concerted effort to tackle the climate crisis was finally embraced by 195 governments in the form of the Paris agreement. Last year, the EU declared a climate emergency, no doubt inspired by Greta Thunberg. All legislative and budget proposals will be fully aligned to limit temperature increases to under 1.5 degrees – seen as the danger line for global warming.

Looking forward

The last decade has seen rapid technological advances and we see a number of these coalescing over the next decade. Let’s take a glimpse into the future because we think it’s pretty exciting.

Sustainable finance

Why would you want to invest unsustainably? Now that’s a powerful question. When the rules of the game change, only a fool plays the same strategy.

The next decade is going to see financial markets transform to incorporate a broader set of stakeholders and interests well beyond the bottom line. Legislative changes are already underway in the EU that will significantly alter the reporting requirements for companies and investment products including:

• Climate change mitigation;
• Sustainable water use;
• Transitioning to a circular economy;
• Prevention and control of pollution; and
• Protection of ecosystems.

Although the UK will have exited the EU by the time these rules come into force (around December 2021), we fully expect the UK to adopt similar reporting requirements.

The next decade is going to see financial markets transform to incorporate a broader set of stakeholders and interests well beyond the bottom line.

This will help to establish a common language for what qualifies as sustainable and unsustainable through legislature. The associated data reporting will bring transparency to the conversation and encourage us all to consider the merits of economic activities, particularly those ones which are deemed to be harmful.

AI revolution

A decade ago, we were buying the iPhone 4 and the original iPad had only just been released. The idea of cloud storage and cloud computing was just taking off and the volume of data in the world was estimated to be around two zetabytes – that’s two trillion gigabytes. For comparison, entry level iPhones today have a data capacity of 64 gigabytes. The volume of data in the world has since exploded to around 41 zetabytes. That’s a lot of data! Through analysing these big data sets, we are finding better ways of doing things and finding altogether new things to do.

This is the realm of artificial intelligence (AI). Data scientists are creating sophisticated computer algorithms that identify esoteric features in data of a known entity (such as known ailments in radiology scans). When the algorithms are presented with new images, they are now able to identify things better than their human equivalents. This technology has incredibly wide applications in everything from early stage healthcare diagnoses to logistics route optimisation.

Data and artificial intelligence is being combined with robotics to achieve some pretty incredible feats, often referred to as the ‘internet of things’. Computing power is now decentralised, agile and mobile, freed from the confines of the home and office. The smartphone heralded a new era of fast and interactive data sharing and then the proliferation of sensors has taken things to another level. Everything is being connected: the smart home, smart buildings, wearable consumer devices, remote machine & engine diagnostics and of course, our transportation systems.

[ymal]

Transforming healthcare

Healthcare is getting better from improved diagnostics, but there are improvements in treatments themselves. Increasingly healthcare is become an exercise in engineering. Biotechnology is developing medicines that are designed to combat specific diseases; treating the cause rather than the symptoms. In the future, it is easy to envisage so called ‘designer drugs’ that are designed for our specific genetics and perhaps beyond a decade from now, we could even be 3D printing these at home.

Precision fermentation

The current world population is 7.7 billion and the UN forecasts we’ll add another one billion people over the course of the next decade. Resource efficiency will be crucial for this to be sustainable, especially to create enough food for everyone. Robotics assisted precision agriculture and partially or wholly embracing veganism will help, but a new technology could change the face of agriculture and food supply altogether. Precision fermentation is the name of the technology behind the various meat alternatives we see in restaurants and supermarkets.

These are synthetic, precision engineered proteins that have similar nutritional value and are approaching cost parity to animal protein. We haven’t synthesised the perfect rib-eye steak yet, but we believe there is a good chance that agriculture will look wildly different in a decade’s time. Could we be looking at the path to ending poverty by then?

Quantum computing

Many of these transformational technologies are based on analysing data using artificial intelligence with computer power that is thousands of times faster today than it was a decade ago, all connected through the digital infrastructure of the internet. There is one problem though. We are approaching the physical limits of computer miniaturisation that has driven the increase in computer power.

However, human ingenuity is pushing through this boundary, developing a new breed of computing. Based on Einstein’s concepts of quantum superposition and quantum entanglement, this new breed of quantum computing would rewrite the rulebook and open the door to… a world of even more new possibilities yet.

From more intelligent healthcare to synthetic steak, the decade promises major developments.

Below Finance Monthly hears from Jayakumar Venkataraman, Partner at Infosys Consulting on the key predictions for 2020’s finance sphere, considering key topics including the rapid growth of the API Economy and data, as well as operational resilience, fintech acquisitions by banks, the growth of Regtech and new ways to reduce costs.

1. 2020, the year of the Ecosystem Approach and the API Economy

In 2020, we will see the rise of the ecosystem approach in creating new propositions and delivering banking and financial services to customers. Globally, open banking and PSD2 have enabled newer players to enter the market and gain access to customers’ data that was previously the sole preserve of the banks. This has given rise to many third-party providers (TPPs) that are developing more exciting product propositions for customers, particularly in personal financial management, using customers’ financial data from the banks.

We will see this approach growing significantly in the world of Trade Finance. As well as this, banks will bring together multiple players such as shipping companies, local chambers of commerce and insurance companies to create richer product and service propositions for their customers. We will see blockchain-based solutions continue their pivotal role in helping bring a digital ecosystem’s players together.

All of this will be underpinned by rapid growth of the ‘API economy’, where banks and the other players in the ecosystem are exposing APIs for all their key capabilities, using this to integrate and orchestrate new products and services for their customers.

2. In 2020, data will drive more customer insights than ever

In the last few years, we have seen a significant rise in digitalisation and the amount of data that is collected on customers and their preferences, transactions, and market and industry data.

In 2020, we will see the emphasis shift to using this data to drive a much richer understanding of customers, predicting and responding to their needs and transactional patterns. This will generate much greater insight into their lifecycle stage, and help create personalised offers that address their needs. Equally critical will be the use of this good quality data in risk assessments, compliance and fraud monitoring, to deliver safe banking services to customers.

For commercial customers, banks will bring together the vast amounts of transactional data across multiple product lines – such as lending, trade finance and payments – to create a much richer understanding of transactional patterns, business seasonality and the resultant impact on their financial needs. This means that they too can proactively engage their customer with tailored propositions.

To make this intensive, customer-centric approach to data work, we will see more banks adopting AI and machine learning technologies across their businesses to make sense of all their data. These initiatives are currently constrained by the availability of good quality data, which does not help in building models that are robust and yield correct decisions. In 2020, we will see banks scale their investment in data initiatives that focus on improving the comprehensiveness, availability and the quality of data, so that AI and ML can be used effectively and reliably.

[ymal]

3. Operational resilience needs the right technologies

Operational resilience is emerging as one of the top agenda items for senior executives in banks – and also for the regulator, to avoid the threat to their individual and organisational brand. Certainty and continuity of service availability is very important for customers, so it is important for regulators too. Operational resilience relies on tightening controls and governance around business and IT operations, while continuing to invest in the infrastructure for the future.

Modernisation and transformation of the IT infrastructure in banks – in particular the adoption of cloud and migrating the hosting and delivery of key capabilities in the cloud – is emerging as a major strategic direction. As well as eliminating the costs from maintaining their own data centre operations, migration to the cloud also offers resilience, agility and flexibility, advanced analytics, and innovative applications that are built on a cloud-first approach. All of this significantly improves integrated working and removes some serious challenges.

4. Fintech acquisitions on the horizon for banks

The trend of fintech firms disrupting the way banks and financial services players deliver products and services to their customers is here to stay. The way banks think about the fintech players has also undergone a significant shift. While they were once seen as fringe players, this year, banks will be looking at using fintechs to fill gaps in their own offerings, giving much richer propositions to their customers.

Banks are acting as investors, incubators, collaborators and strategic partners. Banks have set aside formal bandwidth to engage with the fintech community to identify the upcoming stars, to understand how their capabilities can be integrated into their product propositions, and to ensure they don’t fall behind their competitors. In some cases, banks have also bought out the fintech firms outright, as a move to gain competitive advantage over their competitors. Santander’s acquisition of ebury is one such example, and we will see many more acquisitions of fintechs by banks in 2020.

Banks have set aside formal bandwidth to engage with the fintech community to identify the upcoming stars, to understand how their capabilities can be integrated into their product propositions.

5. Regulatory compliance and the growth of Regtech

Regulatory compliance will continue to be a top spend area for banks, as the need to comply with existing and emergent regulatory and industry initiatives continue. There are plenty on the agenda: FRTB, EU Anti-Money Laundering Directives and other industry initiatives such as ISO20022 adoption and IBOR Transition, as well as a slew of other national and regional requirements. With all of this, banks will have their hands full in 2020. Banks will be looking to be efficient about how they approach these initiatives, to then structure their programmes of work so as to minimise duplication and rework in their efforts.

The emergence of RegTech firms is a key development that can aid the banks in their compliance initiatives. Estimates on the size and the growth of the RegTech industry vary significantly, but we know that this sector is set for rapid growth. Regtech firms are focused on developing solutions in data collection and reporting, decisioning, predictive analytics and risk identification and management. Like with fintechs, we expect banks will co-opt these firms to aid their compliance initiatives.

6. New ways to reduce costs

Given the recent trend of results posted by the banks, cost reduction and rationalisation will be an important focus for 2020.  As opposed to outsourcing and offshoring of work to lower cost locations, and the adoption of automation and RPA to drive costs down, in 2020, cost rationalisation will focus on a more fundamental operational transformation.

This will involve a radical rethink of the way banking processes are designed and delivered, and the adoption of an automation-first approach. This approach will be supported by a much smaller team of multi-skilled expert operations teams that oversee business processes, and can jump in to manage any exceptions or incidents with expertise.

As well as a radical redesign of operations, we will also see banks drive operational costs down through the monetisation of assets and mutualisation of costs. Banks will carve out operations and technology capabilities to a strategic partner that also offers such services to other banking clients. We have already seen some of these deals executed, and we will see these conversations picking up scale in the coming year.

Impact on employment

More than a third of CFOs (38%) expect big data to have a significant impact within the financial sector, particularly on aspects such as job opportunities, with 36% of CFOs seeing big data as a threat to employment. Trends such as robotisation and Artificial Intelligence (AI) are also on the radar of financial directors, with 42% of CFOs expecting AI to have a major impact on employment opportunities and 30% of CFOs seeing robotisation as the biggest threat to jobs.

Marieke Saeij, CEO, Onguard commented: “I’m not surprised that CFOs expect to be completely dependent on big data within such a short timeframe. Big data can help them, as well as finance professionals within their organisations, with the execution of their work. Finance professionals have a great deal of information from both internal and external sources that is of added value for both the performance of the organisation and customer service. The more information that is available about the market and customers, the better finance professionals can advise customers. Thanks to big data, risks can be assessed more accurately and it is also possible to predict in real-time whether and when customers will start paying so as an organisation, you can properly anticipate this. This development will require finance professionals to develop new skills, such as greater analytical capacity, as a necessity.”

Over a third of CFOs see big data as a threat to employment.

About Onguard:

Over the past 25 years, Onguard has grown from a specialist in credit management software to a market leader in innovative solutions in the field of order to cash. The integrated platform ensures that all processes in the order-to-cash chain are optimally linked and that critical data can be shared. Intelligent tools which interface seamlessly combine to provide an overview and control of the payment process and help build lasting customer relationships. Users in over 50 countries worldwide work with the Onguard platform on a daily basis to achieve successful management and tangible results in Order to Cash and Credit Management.

Read more at http://onguard.com/

These two fields of study fall under the economy category. By choosing a major in each, you’ll get the chance to study many interesting things from blackchain to the real estate industry economics. But, how do you make the choice that best fits your skill set?

Difference Between Accounting and Finance

Before you make your choice, you should differentiate between the two fields of study. Some of the accounting and finance topics from topics mill can help you better explore the fields once you know the difference.

Accounting is narrower than finance. It involves the financial statements’ preparation process. Basically, it explores where money come from, where they’re spent, as well as focuses on making cash flow plans and budgets.

Finance is broader. It doesn’t focus on making statements, but on evaluating the existing statements. The task you’ll have in this field is to understand the financial situation and make important financial decisions, such as where the money should be invested or how they should be spent.

Accounting vs Finance: Choosing Between the Two

In order to choose the right major, accounting or finance, you need to pick what you want to be studying and what you’d be good at.

If you choose to study accounting, you should know that this field is broken into three main categories: tax accounting, auditing, and public accounting. On the other hand, finance is divided into: financial planning and traditional finance.

If you choose to study accounting, you should know that this field is broken into three main categories: tax accounting, auditing, and public accounting. On the other hand, finance is divided into: financial planning and traditional finance.

This decision is a grand one, so naturally, you are spending a lot of time trying to figure things out. It’s wise if you use the best essay writing service in Great Britain to reduce some of the workload while you’re exploring the fields, maybe even volunteer in a company to see what you’re more interested in.

Now, let’s dig deeper into the specialization paths that these fields offer you.

Specializations for a Major in Accounting

Public accounting involves keeping and preparing financial statements and records. It’s the perfect job for those who are detailed and persistent in doing everything perfect, as well as the ones that don’t mind the idea of constantly having to create detailed and accurate statements.

Tax planning involves preparing tax returns, providing tax consulting services, as well as doing tax planning. That being said, such a job requires a lot of learning even after you graduate, since regulations change very often. It’s perfect for those who enjoy research and have highly developed research skills.

Auditing involves evaluation of financial records. Your job in this career will be to check if records are accurate. Most of the time, you’ll be auditing other people’s work, which makes this the perfect task for those who are detail-oriented and enjoy the opportunity to investigate and dig in.

Specializations for a Major in Finance

Traditional finance requires deep knowledge of both economics and finance. If you can’t decide between the two, this is the perfect combo of both fields. It requires knowledge of global markets and an understanding of investments. The perfect person for this job is one with leadership skills, ready to take over the most important and difficult decisions. These are usually the highest paid people in the company, since the entire company or big teams rely on their input and their expertise.

Financial advisor/ planning include helping people by checking their financial statements, income, taxes, insurance, and investments. It requires a great deal of financial planning and knowledge of many fields, as well as great communication skills.

How to Finalize Your Decision

Now that you know what each field expects of you, it should be easier to finalize your decision. As I said, you can get the best picture of how each career path works by shadowing someone who does this, or volunteering in companies that work in the field of finance and accounting.

Also, you definitely want to consider your personality. As you can see, every career path requires a specific personality from the person who does it. Therefore, do your research thoroughly and pick the one that fits you best.

In the world of finance and accounting, things are similar. But, this doesn’t mean that you can change your mind constantly and easily switch from one career to the next one. Both fields require a lot of constant work, practice, and knowledge.

Moreover, for most of the careers in this field, you’ll have to get a degree, certification, or a title that allows you to do that job. It takes some time and a hefty investment to get the education you need to thrive in this field. So, take your job of choosing a major seriously since you’ll probably have to stick with it.

Yes, it is possible to change careers, but it will require an even bigger financial investment and will waste a lot of your time.

Join the World of Finance or Accounting Today!

These two career choices are of high influence and importance in the world. They’ve always been in high demand and this isn’t about to change any time soon. So, whatever you choose, make sure that you study a lot – it will definitely pay off for you!

Author’s Bio

Bobbie Sanchez is a financial advisor. He works privately as a contractor who helps small businesses and business people in keeping their finances organized, spending them wisely, and tracking their money. In his written work, you can read very useful advice in terms of your investments.

Approximately 82% of Americans supported paid maternity leave for mothers after a birth or adoption, according to a recent Pew research. Yet only 17% of working Americans are able to access paid parental leave today. While there has been some progress in promoting a balance between work and family life for female employees, there remains a lot to be done to support mothers to be in the workplace, particularly women in finance.

Your Earning Potential is Lower Both During Pregnancy and After Returning

Women in the American workforce are more educated than ever but continue to be underrepresented in the finance industry. Although the percentage of women in the financial industries is around 54.5%, there remains a significant gender gap which plays a large part in the decision of women working in finance on whether to take maternity leave. In fact, the motherhood penalty costs women around $16,000 in lost wages annually and 25% of women have to go back to work two weeks after giving birth to keep afloat financially.

Aside from taking maternity leave to prepare for the new arrival, some women leave earlier due to medical complications such as gestational diabetes and find themselves further financially vulnerable. The impact is felt not only medically but also financially due to time off being unpaid or paid at a significantly reduced rate. Considering almost 10% of pregnancies are diagnosed with gestational diabetes annually, the chances of women in finance having to deal with this are quite possible. Therefore, not only do women earn less while taking maternity leave but they are almost guaranteed to earn less than before pregnancy, and their male counterparts, meaning their family’s financial stability can be threatened.

Your Career Progression Trajectory Changes or Slows 

For women looking to progress in finance, the 70-hour work weeks and full diaries can act as a deterrent against being selected for an executive-level job. In fact, the ‘Gender Diversity in the Financial Services Industry’ report by Mercer showed a significant decline in female representation as career levels rises in finance. Only 15% of women were represented at the executive level in finance, while only 26% of senior managers were female.

Thanks to factors such as the finance industry’s slow response to flexible working, women’s chances to achieve a better work-life balance are reduced and they tend to face an increased likelihood to be passed over for job promotions. Women with children also take longer to climb the ladder in the finance workplace as they juggle childcare hours and a demanding industry which means their earning brackets can remain unmoved for a longer time. Early starts and late nights required of many full-time jobs on Wall Street often means women in finance either have to rely on round the clock childcare or make the choice to go part-time.

Increased Pressure and Diminished Chances for Management Opportunities

Although 84% of employed Americans believe that having working mothers in leadership roles will boost the success rate of businesses, only a small% of women who have taken maternity leave will get the chance. Because of the negative association between women taking maternity leave and their commitment to the job, employers are more inclined to place these women in management positions within their company.

Published experiences by women working on Wall Street have shown that women tend to face increased pressure in trying to conceal their pregnancies for as long as possible, along with the constant pressure of when they plan to return (or whether they do plan to at all). For many firms on Wall Street, women are often offered six weeks of disability leave and end up losing not just pay equity but ground on progressing into the management realm.

Despite the well-publicized benefits of maternity leave including lower infant mortality rates and lower postnatal depression rates, support for women taking maternity leave in the finance industry continues to be woefully lacking. The choice to take time off to raise one’s child is repeatedly shown to have a higher cost for women, starting from the initial leave allowance rates and possibly defining the future of their careers. However, it is also important to recognize the progress made by financial firms like Deloitte, KPMG, and Bank of America. The support shown by these companies for mothers in finance can be a great starting point for the revolutionary change needed in the finance industry.

Small businesses in the accounting & finance (48%) and manufacturing (45%) sectors are most likely to blame market uncertainty as a barrier to growth. In the agricultural sector, this has traditionally been a more moderate issue but this quarter the sector sees the sharpest rise in concerns over market uncertainty – a relative 48% rise in just six months.

At a time when the CBI has predicted a more positive end of year for business outlook, Hitachi Capital’s Business Barometer asked more than 1,200 small business owners which external factors were holding their business back. It found that 75% of small businesses were being held back by factors that were outside of their control, with market uncertainty affecting three in five. A growing number also cited the falling value of the pound as a big concern in the months ahead, rising from 8% in May to 13% in October.

Key sector findings

Although the finance and accounting sector saw the most significant rise in the number of small businesses feeling that growth plans were being held back by market uncertainty, a growing number of businesses in agriculture and manufacturing admit that market uncertainty is a bigger issue now than six months ago (19% to 31% and 33% to 45% retrospectively).

Other key barriers to growth:

• Uncertainty as to the future of the business (17% in May to 20% in October)
• Volatile cash flow (13% in May to 14% October)
• Unpredictable / bad weather (6% in May to 7% October)
• Old or out-of-date equipment (5% in May to 6% in October)

 North East small firms at risk

Small firms in North East were more likely to say this month that they were fearful of market uncertainty preventing them from growing – rising from 31% in May to 53% this month. They were also the most likely to admit that volatile cash flow and red tape acted as significant barriers to growth compared to the national average (23% vs. 14% and 21% vs. 16%).

Age and growth

The research from Hitachi Capital also suggests that the young and most established businesses are most worried about protracted market uncertainty. For enterprises that have been trading for 5 to 10 years, concerns have risen from 29% to 42% - and for those who have been trading for 35 years or more market uncertainty fears have rose from 29% in May to 48% in October.

Gavin Wraith-Carter, Managing Director at Hitachi Capital Business Finance said: “With the upcoming General Election, it seems highly unlikely that there will be a clear position on Government policy or Brexit until after the Christmas break. For many small businesses this will mean planning for a New Year with lots of unknowns as market factors. This could play out with us seeing dip in business confidence at the start of 2020 although, longer term, when the sector has greater certainty to plan against we envisage small businesses will be the first to see change as an opportunity to grow and diversify.”

“One of the remarkable findings from our research over the last year is that, overall, there has been little change in the perceived barriers that small businesses feel they have to overcome to grow their business. Despite a period of unprecedented market volatility and political uncertainty, there has been no significant rise in the proportion of businesses citing red tape, cash flow or access to labour as bigger issues than they were a year ago.

BlackLine commissioned independent global research firm Censuswide to survey over 760 institutional investors across the world to establish their attitudes to financial risk, due diligence and reporting. The findings reveal the financial practices that raise red flags for investors, as well as the factors they rely on to make informed investment decisions.

According to the survey, creative accounting, where companies exploit financial loopholes to present figures in a legal though misleadingly favourable light, was identified as a major concern for the global investor community. Not only do the majority of investors believe that these tactics are commonplace at their portfolio companies, but 91% believe that more large companies will resort to these techniques over the next 12 to 18 months.

Worryingly, 83% of investors surveyed also agreed on the likelihood of a global recession in the next 12 to 18 months, meaning businesses will need to work even harder to outstrip the competition. However, companies should think twice before trying to manipulate their figures; a quarter (25%) of investors singled out evidence of creative accounting as the factor that would make them least likely to invest in a company.

“In many ways the international business landscape is more complex, uncertain and challenging than it was a year ago. Companies are therefore under increasing pressure to perform and retain a competitive edge,” said BlackLine CEO Therese Tucker. “However, businesses cannot afford to have the integrity of their financial data questioned at a time when investors are evidently becoming more stringent about unnecessary and unwarranted financial risks.”

In fact, inaccurate reporting and poor financial controls raise alarm bells for a large number of global investors. Less than 1% of those surveyed say they will invest in a company with poor financial controls without taking some form of corrective action first, such as imposing changes on the company or its management team.

A third of investors (33%) say risk of internal financial fraud or financial non-compliance make them less likely to invest. Meanwhile, a quarter (25%) are put off by consistently late filings, with a slightly higher portion less likely to invest in companies that make adjustments post reporting (29%).

These red flags are encouraging investors to take a much closer look at the numbers, highlighting the importance of accurate and transparent financial data. When asked what the most important considerations were when deciding whether to invest, a company’s financial growth forecasts (46%), access to real-time snapshots of company finances (42%) and key metrics within financial reports (46%) came out on top. This suggests that while investors are forward-looking, they also need a clear and realistic view of current financial data in order to make informed decisions.

“It’s likely that investors will increasingly want to look ‘under the hood’ of their portfolio companies, to ensure they are getting a transparent and accurate view of their finances,” continued Tucker. “The ability to access, and more importantly analyze, data in real time will not only be vital for driving business competitiveness, but also for maintaining investor trust.”

The full findings are outlined in ‘The New Age of Increased Investor Due Diligence’.

At least that is according to CompTIA, one of the world’s leading tech associations. Below, Jessie Dean of Oakmount Partners Ltd, an investment consultancy firm from the UK, discusses the complex tech-scape in the US.

True, San Francisco in California and the wider Silicon Valley area still provide the greatest number of vacancies and opportunities for Brits looking for career opportunities in the US, but it is North Carolina who CompTIA seems to think is serving expats with the best options. More specifically, the cities of Raleigh and Charlotte — both of which are part of the ‘Research Triangle Region’, an area known for its excellent tech and scholarly institutions.

Great plains instead of great beaches

California is the land of dreams. It’s everywhere, thanks to the success of Hollywood, in popular culture and imagination. Long stretches of golden coast; redwoods a thousand years old, and great cities packed with our favourite celebrities. North Carolina is different. If the average Brit was asked to conjure up images of North Carolina, it would probably represent something like a large red barn, isolated in an expanse of large overgrown agricultural fields.

So what is attracting the attention of CompTIA, and of British tech expats?

The shift back east is largely due to the quality of life that North Carolina can provide, and the greater disposable income that it provides.

True, San Francisco, Silicon Valley (that includes San Jose, Santa Clara, and Sunnyvale) still pay the best wages. The median salary for an IT worker in San Jose is over $122,000 per annum. But the cost of living in this area is a whopping 43 per cent higher than the national average.

The same IT worker might stand to make somewhere between $83,000 and $88,000 in the Research Triangle, but the cost of living in North Carolina is actually below the national US average — for now. What this means is, even with the pay cut, a job in North Carolina will land you more money in your pocket at the end of the month to spend on whatever you want.

[ymal]

Big Tech and finance investment is soaring in North Carolina

The shift to North Carolina isn’t all about walking away with more money. Big Tech itself is investing in new areas, including IBM, Cisco Systems and even possible Amazon and Apple. There is also an increasing number of companies who are expanding their operations into North Carolina from the finance and consultancy sector. Including a number of big and increasingly digitised firms such as Wells Fargo, Accenture and Bank of America. The allure comes from tax breaks and other regional benefits — such as the wealth of talented students from the increasingly influential universities: powerhouses such as UNC Chapel Hill and Duke University. North Carolina is also a grand place to acquire local cost-conscious start-ups.

Is California’s time in the sun at an end?

San Francisco is one of the most expensive cities in the world. Living space is extremely limited — with the City located on a small peninsula out into San Francisco Bay. The local government won’t even build upwards, in the form of skyscrapers, as they do not want the views to be spoiled by the City’s less lofty residents. It is becoming hard to ignore that many of the positive factors about living in California — the weather, the good colleges — are now counting against it.

Then there is also the massive problem of homelessness. In some of the City’s poorer boroughs, such as Tenderloin, huge gangs of homeless openly inject with needles in broad daylight; take hallucinogens, and make some roads impassable at night. All of these factors, above and more may account for the fact that, according to CompTIA, more residents left San Francisco than any other city in the last quarter of 2017.

The current shift of power also has echoes in the not-too-distant past of America’s history. Boston was once a the ‘traditional tech centre’, and is now the 17th most desirable destination for tech expats, despite the City being within the commuter belt of Harvard, MIT, and other world-famous and prestigious institutions. A typical salary in tech for a Boston employee is a much lower $94,000 than in Silicon Valley, but the costs of living are still 35 per cent above the national average. Other ghosts of the past include Washington DC and Baltimore.

Though it is worth remembering that San Francisco still has plenty of vacancies for engineers willing to pay the high costs of living. So California’s role to play in tech is far from over. The balance will not shift overnight, and it was always inevitable that some other location would come to challenge it in time. For now, it is still wise for British expats to heed the old advice, to “Go west, young man”. Just not as far west as was typically expected.

Business Insider recently  released their picks for the Top 30 Most Influential Women in the UK's tech arena, and thereby showcasing that women are occupying some of the most important and impactful roles in the UK's most innovative companies. 

This represents a huge step forward in the efforts for equality at work - the tech industry in the UK harbours some of the country's most forward-thinking companies which have the potential to transform our lives for the better in countless ways. The fact that the women occupy such a variety of important roles within the industry can only bode well for the future of women at work, and showcases the success that women leading from the front in industry can generate.

However, the wider industry still has some work to do: in their roles as entrepreneurs, technologists, and investors, women continue to face inequality and sexism, whether implicated by conscious or unconscious biases. In 2017, 83% of all UK VC funding was allocated to startups whose founding teams were exclusively male, according to Diversity VC.

Hephzi Pemberton, Founder of Equality Group, commented on the increasing number of women in tech, and what must be done to ensure continued growth: "It is fantastic to see so many women step into these high-profile positions and deliver incredible results. They represent role models to working women everywhere, and it is my hope that they will encourage other institutions and industries to consider the value of their female staff and their contribution to the sector. 

"Study after study has shown that diverse teams improve financial results with the higher the percentage of women in management positions, the greater the returns. This is because more diverse companies can attract, develop and retain a broader talent pool and because of this, are able to serve niche markets with a better understanding of their customers. It also allows companies to tailor their approach to every facet of society, improves their image, staff satisfaction and net income. Ultimately, diverse businesses do better and all companies should strive for diversity, not simply to meet implemented targets, but to reap the rewards that increased diversity will enable."

It's best to look for other sources that can help you reach your business goals, so take a look below at some of the alternative methods of fundraising you can do.

Consider the Assistance from Angel Investors

These retired business gurus or successful entrepreneurs can be your ticket to salvation when you need funding. They are people who take a keen interest in your work and activities, making them huge supporters who want you to succeed and grow. Also, they can offer their advice and business expertise to make you a better player in the market.

Not your Average Loan 

When people think about loans, they consider personal or business ones, but no one would ever expect to get funding from your inheritance money. Some owners have a lot of money coming in but the probate process gets delayed and drags. That's why loans for heirs can be very appealing when you want quick funding for your startup or company. You get a considerable amount of the money entitled to you, and you can pay the debt off when the courts finally issue your money.

Have You Thought About Crowdfunding?

This is a good way to utilize the digital world to your benefit. There are several reputable platforms with different investors that can provide you with the money you need if your business activities pique their interest. Countless investors are on the lookout for decent companies that offer something special and useful to the community, so investing in your company can be beneficial for them, too.

So, if you are looking for such crowdfunding, arrange a Meeting of investors and venture capitalists at a club. This will be really fruitful for you

You Could Go for Factoring and Invoice Advances

This can be very handy when you find a provider that can front you some money on the invoices that you’ve already billed out; it's good for companies that constantly provide products and services to customers, and you will pay it back once your customers have paid the bill in full. It's a simple method that keeps your business running and projects operating without waiting for long periods of time for consumers to pay up.

Consider CDFI Assistance When Nothing Else Works

This stands for Community Development Finance Institutes. They are private financial organizations that deliver affordable lending options, making it very easy and advantageous for many businesses that are in need of quick funding to save them from tight situations. Many businesses don't get a chance to thrive or grow because of restricted money-raising methods, so this can be the answer to their capital needs to fund their business.

Managing your finances can be a little tricky, but with the right mindset and the willingness to find better and reliable sources for funding, you can make a huge difference in your company's success. You can't just sit there and wait for your company to crumble; choose the right path for you and get the best funding that suits your needs and goals.

It’s estimated that 81% of finance teams are currently undergoing finance transformation, yet research by Gartner reveals that seven out of 10 finance transformations fail.

This article, authored by Laura Timms, Product Strategy Manager at MHR Analytics, based on the new finance analytics guide from MHR Analytics, will reveal the benefits of adopting analytics to supercharge your efforts and help ensure that your finance transformation is a successful one.

Finance strategy that’s aligned with future business needs

Transformation is more than simply hitting a financial goal. It’s about being able to respond to the current and future needs of the organisation – something that can only be achieved when finance is connected to the wider business.

Unfortunately, with all of the demand that finance teams receive, it can be easy to fail to recognise how financial activity translates into everyday business.

This can lead teams working introspectively, which can quickly translate into silos, with poor communication of information, lower levels productivity and consequently a less valuable finance team.

To prevent this from happening, the financial strategy needs to be aligned with activity across the business, and analytics provides the platform to do exactly that.

Using a data warehouse, data from across the organisation can be synced to give finance teams real-time insights into how changes in one area of the business will impact the course of action they take.

This means that finance teams are able to steer away from getting caught up in metrics like historical spend and industry benchmarks, and are instead grounded in how the finance strategy relates to the unique needs of their business.

Using a data warehouse, data from across the organisation can be synced to give finance teams real-time insights into how changes in one area of the business will impact the course of action they take.

1. Focus on high-value tasks

According to Gartner, 56% of companies are in the evaluation phase of adopting AI to automate accounting & finance processes. By 2020 it’s estimated that 31% of companies will have actually implemented this into their business and 26% in “operating” mode, where AI is actively used in accounting & finance processes.

But what does this mean for finance transformation?

Well, AI technology is providing a platform that is changing the role of finance teams at a rapid pace. Through automating tedious financial processes, finance teams no longer have to spend their time buried in spreadsheets.

Everything from cash disbursement, revenue management and general accounting could be automated through leveraging analytics – in fact, it’s estimated that up to 40% of financial activity could be automated, and another 17% mostly automated.

Research goes on to reveal that for an accounting team with 40 full-time employees, with an average salary of £60,000 would save around 25,000 hours and nearly £72,000 that would have otherwise been wasted on team members carrying out repetitive tasks.

This time saved can instead be spent on higher-value tasks that facilitate business transformation and allow finance to act as a trusted strategic partner to the business.

2. Understand where to allocate resources

Sometimes it can feel like finance are caught in the middle, with demands left, right and centre of the business. And with eloquent justifications from each department explaining why their project should be prioritised, it can leave finance teams stretched under the pressure to please everyone.

Analytics works to hand back the power to finance teams.

Through interactive dashboards that display performance across the business, finance teams are able to easily identify the key value drivers of financial growth.

This means that they’re able to present stakeholders with “the facts” and justify financial activity, only spending resources on activities that generate the most financial value, whilst cutting unnecessary costs.

On top of this, finance teams can look internally to see what they’re spending their own time and resources on. This can help them to define their list of roles and responsibilities as a department to ensure that they don’t get caught up in low-value tasks.

[ymal]

3. Make faster, more reliable decisions

At the core of any finance transformation is the need to adapt finance practices to meet increasing business demand.

Despite this, many finance teams are still relying on outdated methods to carry out financial processes.

Relying on spreadsheets to communicate and understand what’s going on in the wider business is a common theme amongst finance, but using manual methods alone leaves room for human error.  In fact, research shows that nearly 90% of spreadsheets contain errors, and this can make it tricky to make decisions with confidence.

This approach also means that teams are often forced to spend hours analysing data and pulling reports. This can lead to lags in getting all-important insights, which delays decision making and can result in “in hindsight” discussions with stakeholders.

Analytics works to streamline financial processes to provide teams with fast and accurate insights at the touch of a button. Through real-time data and automation of once tedious processes, teams can see bumps in the road way in advance and have greater confidence in their decisions.

Sources:

https://emtemp.gcom.cloud/ngw/globalassets/en/finance/documents/trends/cfo-journal-new-digital-workforce.pdf

https://www.gartner.com/en/confirmation/finance/trends/new-digital-workforce

https://emtemp.gcom.cloud/ngw/globalassets/en/finance/documents/insights/hallmarks-of-winning-finance-transformations.pdf

https://www.gartner.com/en/confirmation/finance/insights/finance-transformation

https://emtemp.gcom.cloud/ngw/globalassets/en/finance/documents/insights/defining-the-scope-of-fpa-analytic-support.pdf

https://www2.deloitte.com/content/dam/Deloitte/global/Documents/Deloitte-Analytics/dttl-analytics-us-da-3minFinanceAnalytics.pdf

[2] https://www.mckinsey.com/business-functions/operations/our-insights/new-technology-new-rules-reimagining-the-modern-finance-workforce

https://www.blackline.com/blog/account-reconciliations/3-audit-benefits/?ite=1192&ito=1771&itq=b820f4c8-2db4-44be-bdbf-1230cc9fa177&itx%5Bidio%5D=522393

[1] https://emtemp.gcom.cloud/ngw/globalassets/en/finance/documents/trends/cfo-journal-new-digital-workforce.pdf

[3] https://www2.deloitte.com/gr/en/pages/finance-transformation/topics/finance-transformation.html

https://openviewpartners.com/blog/finance-transformation-the-art-of-getting-more-from-your-finance-team/#.XSxsDuhKiUk

https://www.gartner.com/en/finance/insights/finance-transformation

It’s been an interesting three years since the 2016 referendum, with the next ten years promising more of the same. Below, Erica evaluates Boris Johnson’s Withdrawal Bill and its implications for UK businesses as well as the society we live in.

1. Diversity of thought is key to long-term success moving ahead

Narrow bands of interest and self-interest don’t create a vibrant society, nor a thriving business. Diversity has to include different thinkers, different ethnicities, ages, gender, problem solvers. Those companies, authorities and organisations who can’t embrace and harness this will become moribund. And rightly so.

2. Digital and real-world complementarity is critical

At the moment we have no idea what any post-Brexit trade deals will look like. Developing aligned business models and associated revenue streams is vital. With entertainment, retail and business services moving increasingly online, reducing trading frictions by evolving new digital services and products from real-world trade is vital. And for those only online, there is a rich opportunity to consider how an IRL leisure or experiential offering can enhance your bottom line.  After all, there is space in abundance available in every single UK high street.

3. Environmental responsibility – get with the programme

In the current Withdrawal Bill, climate and environmental alignment with the EU has been shifted to future trade agreements. That might be fine to discuss then, but your clients and customers will be expecting it from you now. This is not an option.

Responsibility has to be taken at every step in the commercial process and, increasingly, will be an influencing factor in every personal purchasing decision. Get your supply chain to sign up to sustainability/ethical mandates now to gain early mover advantages and positioning to enable trade within even the strictest global environmental trade frameworks. Sustainability should be as important to your business and as measurable as profitability.

[ymal]

Sabzproperty has a highly skilled technical team of professionals at work with a strong desire to ensure client satisfaction through excellent service delivery. We have a vibrant and engaging property market which offers a large property inventory accrued by competent property agents and developers from different neighborhoods. This has attracted teaming property audience over the years and has birthed the responsive value rewarding network we have today.

4. Uncertainty is the new certainty

Nothing is certain over the next few weeks… who will be in power?  The next few months… in or out?

So you need to understand what deep uncertainty means for your business, your customers and your own personal circumstances. Be prepared to pivot, to take advantage of short term opportunities, to revel in the unexpected. What could this uncertainty allow you to unlock in your relationship with your past/present clients? Where will it allow you to find future clients? What could you develop with or for your competitors? And where might you find new buyers in differing marketplaces you had not looked to before?

And if you are not in the D2C world – look out of the window to ask what you can sell to that person walking past? Thinking the unthinkable has to be part of your new strategy.

5. Tough trading breeds new opportunities

The British are inventive people. Everyone who lives in this wayward nation contributes to its determinedly individualistic approach. We lead the world in creativity – in fact it makes up £101.5bn GVA, the second-highest sector in the economy. In times of economic retrenchment and difficulties that may lie ahead, there will be the potential for green shoots to force their way through, for businesses to grow and develop in unlikely sectors and unexpected ways.

In the 2007/8 recession, people delayed big-ticket purchases and cut back on eating out. This saw a rise in small spends - cupcakes, lip-sticks, feel-good treats. Home baking and entertainment surged with businesses that could supply this ‘batten down the hatches’ mood benefitting. The emergence of shows like The Great British Bake-Off first screened in 2010 after 18 months in development and production captured this back-to-basics mood. Now a highly profitable global tv format sold across many countries, it illustrates how there are opportunities in even the most trying economic circumstances.

As the next few weeks and months unfold, focus on these five points in both your business and personal dealings. Keep your mind alive to opportunities, inventive thinking and potential pivots. Living with uncertainty is something we’re all getting used to within our own lives, the UK economy and planet as a whole.  So embrace it and turn it into positive actions build a commercially inventive road ahead.

About Erica Wolfe-Murray:

Cited by Forbes.com as ‘a leading innovation and growth expert’ Erica Wolfe-Murray runs innovation studio, Lola Media Ltd. With creative head and FD experience, she focuses on auditing intellectual assets/IP to evolve new products & services from a company’s existing business. 

She is also the author of ‘Simple Tips, Smart Ideas : Build a Bigger, Better Business’ aimed at the UK’s 10m+ micro business & freelance sector to help build greater commercial resilience in this dynamic but often ignored part of the economy.