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In a session titled ‘Shaping the Future of Financial and Monetary Systems,’ yesterday, co-founder and CEO of Circle, Jeremy Allaire shed light on the biggest problems the cryptocurrency and wider financial systems are currently facing.

Speaking to delegates in Davos, Allaire highlighted the existence of an arc, by which these systems journey and end up, where we are currently sit in said arc and what we can expect further on. He said: “For the financial system, we are at an inflection point and moving from the periphery to the core. For example, moving away from the likes of just ‘making access better’ to finally visiting the core of financial system — such as, the nature of money, how distributed and utilised.”

He emphasized that since the credit crisis 10 years back, “we’ve seen growth in alternative architecture,” referring to the likes of blockchain, cloud, cryptocurrencies and stable coins. He also pointed out however that for now, the biggest challenge ahead is regulation and policymaking, comparing some of the sector’s struggles to those of other sectors like media and communications.

Stressing the need to drive policy in line with innovation, he said: “None of us would like to go back to a time where we can’t freely communicate with anyone on the planet without any intermediation with some rare exceptions. We all accept as society, trade-offs. [For example] we have open communications but we also accept the fact that terrorists can recruit people on YouTube. We’re not saying shut down YouTube.”

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“The financial system is different to communications and there are identity and risk issues that are real but we have to revisit how those issues are solved — right now it’s the blunt forced mechanism for enforcement which ends up tying to national sovereigns and their policing mechanisms. We have to look for global schemes and technology driven approaches for identity risk that run alongside blockchains and digital currencies,” he said, according to Yahoo Finance.

But it is the speed at which the technological advancements have reached that has forced traditionally slow-moving financial institutions to heavily invest to remain relevant to their consumers and remain competitive in the marketplace.

Personal

Banking is one of the oldest businesses in the world, going back centuries ago, in fact, the oldest bank in operation today is the Monte dei Paschi di Siena, founded in 1472. The first instance of a non-cash transaction came in the 20th century, when charga-plates were first invented. Considered a predecessor to the credit card, department stores brought these out to select customers and each time a purchase was made, the plates would be pressed and inked onto a sales slip.

Once the sales cycle was over, customers were expected to pay what they were owed to the store, however due to their singular location use, it made them rather limiting, thus paving way for the credit card, where customers that had access to one could apply the same transactional process to multiple stores and stations, all in one place.

Contactless

Leisurely spending has changed that much that we can now pay for items and services from the watches we wear on our wrists, but it wasn’t always this easy. Just over a few decades ago, individuals were expected to physically travel to their nearest bank to pay their bills, and had no choice but to carry around loose change and cash on their person, a practice that is a dying art in today’s society, kept afloat by the reducing population born before technology.

Although the first instances of contactless cards came about in the mid-90’s, the very first contactless cards associated with banking were first brought into circulation by Barclaycard in 2008, with now more than £40 million being issued, despite there being an initial skepticism towards the unfamiliar use of this type of payment method.

Business

Due to the changes in the financial industry leaning heavily towards a more virtual experience, traditional brick and mortar banks where the older generation still go to, to sort out their finances, are now in rapid decline. Banks are closing at a rate of 60 per month nationwide, with some villages, such as Llandysul closing all four of its banks along with a post office leaving it a ghost town.

The elderly residents of the small town were then forced into a 30-mile round trip in order to access her nearest banking services. With technology not for everyone, those that weren’t taught technology at a younger age or at all are feeling the effects most, almost feeling shut out, despite many banks offering day-to-day banking services through more than 11,000 post office branches, offering yet a lifeline for those struggling with the new business model of financial firms.

Future innovations

As the amount of digital natives increases year on year, the demand for a contemporary banking service continues to encourage the banking industries to stay on their toes as far as the newest innovations go.

Pierre Vannineuse, CEO and Founder of Alternative Investment firm Alpha Blue Ocean, gives his comments about the future of banking services, saying: “Artificial intelligence is continuing to brew in the background and will no doubt feature prominently in the years to come. With many automated chatbots and virtual assistants already taking most of the customer service roles, we are bound to see a more prominent role of AI in how transactions are processed from all levels.”

Technology may have taken its time to get to where it is now, but the way in which it adapts and updates in the modern era has allowed it to quicken its own pace so that new processes spring up thick and fast. Technology has given us a sense of instant gratification, either in business or in leisure, we want things done now not in day or a week down the line.

Sources:

https://www.sysco-software.com/7-emerging-trends-that-are-changing-finance-1-evolving-cfo-role/

https://www.vox.com/ad/16554798/banking-technology-credit-debit-cards

https://transferwise.com/gb/blog/5-ways-technology-has-changed-banking

https://www.forbes.com/sites/forbesfinancecouncil/2016/08/30/five-major-changes-that-will-impact-the-finance-industry-in-the-next-two-years/#61cbe952ae3e

One needs to understand the industry before jumping into its business. Many things that look easy on the outside will surprise you when you get to their implementation. You should have a few resources beforehand if you are to start a property development business.

Make Sure You Know the Industry

People say you need money to start a business. Most successful entrepreneurs disagree. They say you need to have skills like no other to start a business, and the investment will come to you. Make sure you are worthy of running a successful business before you worry about finances. Learn everything there is to know about the industry you plan to target. For that, you may have to do a job, work as an assistant, or join a study course. When it comes to property development, you need to understand every corner of it. Start the business only after you are certain that you have explored the entire industry.

Arrange Investment

Once you are confident that you can run the property development business, it’s time to prove it. Your skills will be tested and there will be money on the line. You either have to invest your own finances or get a loan. It’s best if you have your own investment because that way you don’t have to answer to anyone. On the other hand, it won’t be a problem even if you don’t have the finances. As I said, the

investment will come to you if you are skilled. Anyone would agree to invest with you when they know you are not going down. You can get development finance from Property Finance Partners for your business. It is a property finance company that provides real estate raising finance solutions in the UK.

Keep Contact with Suppliers

A professional network is your net worth. You need to have contact with every supplier related to your work. You should also understand every service and product that you will use and their current value in the market. As a property developer, you may need services of builders, electricians, painters, architect, carpenter, plumbers, decorators, and interior designers. Having a reliable relation with these professionals will give you confidence and allow you to meet deadlines with quality work.

Understand Your Target Market

You should have a full understanding of your target audience before investing in a business. You should know who will need your services, how they will approach you, and if there is any space for you in the market. It can be difficult to survive in a market with fierce competition. Likewise, you should also know the right time to penetrate the market and when to take a break. Having an audience persona in your mind will help you better target your potential customers.

Use Digital Marketing

Marketing is important to make an entrance in the industry. While many property developers may underestimate it, digital marketing has helped many new entrepreneurs build their business. Use every marketing tool to get an edge over your competitors. Once you understand your market, targeting potential customer becomes easier.

Digital marketing doesn’t need you to have an office, you only need a website and a few social media profiles. You will reach out to potential customers through these channels. It’s also a great way to enter the market because it lets everyone know that you exist and now offering your services. Portray your skills and unique selling point on the internet. See what your audience is expecting from your industry and provide them an easy solution for that.

Build a Reliable Team

Every businessperson needs a team that he can rely on. The team builds the foundation of a business. If your foundation is strong, you are likely to survive in the market. Property development business doesn’t necessarily need a team if the leader is skilled enough. You will need the expertise of an accounting professional with the knowledge of all legal matters to understand and control all expenses. A project manager can divide your responsibilities and ensure that all development on site is in order. Moreover, you may need someone who understands the field to be on the lookout for opportunities.

Deciding Your Property Sector

A property business developer should know every sector of his industry. He should further understand the requirements of each sector where he wishes to operate. Whichever sector you choose, you will need to follow its every news and update. By specializing in just one sector, you are more likely to dominate it. You will know what, when, and where to buy, sell or rent a property. You will be able to make more sales by telling customers exactly what they want to hear if you focus on just one type of audience.

 

To ensure that your life is continually being bettered, you have to resolve to make smarter financial decisions. You can start in this instance by determining to make and embrace the five decisions listed below.

  1. Accept help whenever you need it

Stubbornness will get you nowhere when it comes to money. You need to be open to the idea of accepting financial help whenever it’s offered, as that could be the difference between you keeping your head above water and you drowning in debt.

The help that you accept could come in a plethora of different shapes and sizes. It could, for example, involve your parents offering you a lump sum to get you on the property ladder, or it could even come in the form of taking out a loan so that you can pay off debt that desperately needs clearing. The point is, there will always be someone or something out there willing to help; you just need to accept their assistance when they offer.

With regards to the latter, a loan company making a quick cash injection available to you, be sure to never dismiss this route as being financially dangerous. If you know that you are going to be able to repay the money that you borrow by the deadlines imposed on you to do so, there’s nothing wrong with taking out payday advance loans online. Whatever you do, just think it through and don’t make any rash decisions based off of fear or greed. Try to keep your borrowing down, and always use a reputable lending company.

As soon as you understand that the pride of not accepting financial help is not worth the fall that it eventually causes, you’ll find it much easier to accept the assistance you need to better your life.

  1. Save all of your small notes

Whenever a small note finds its way into your purse or wallet, tuck it away into your ‘rainy day’ jar. If you do this every time you pick up a $1, $5 or $10 note, you’ll find yourself saving $100s in no time. What you do with that money, whether you keep it stored away for emergencies or whether you use it to pay for a much-needed vacation, will be ultimately dependant on what you think is going to better your life.

The best thing about this saving method is the fact that it doesn’t even feel like saving. It might mean going without a coffee every now and again, but the speed at which this money accumulates will feel like you’re growing money out of thin air.

  1. Keep tabs on your bank

It’s easy to ignore your bank account, especially when you’re convinced that you’re not going to like what you see on there, but doing this will get be sure to land you in financial trouble sooner rather than later. By keeping tabs on your account regularly, you give yourself a much better chance of spotting irregularities with your outgoings, and you can stop fraud in its tracks before it has the opportunity to sink its claws into you. What’s more, by knowing how much you can afford to spend, you stop yourself from overspending, getting yourself into debt, and making life a lot harder for yourself as a result.

  1. Always think in the longterm

As important as it is to keep track of your current spending habits, it’s also just as important to think in the longterm when it comes to your finances. Amongst a great deal of many other positive effects this will have on your bank balance, doing so will allow you to save an appropriate amount of money to suit your future endeavors. Perhaps you need a certain amount of spending money for a vacation you’re taking in 6 months? If you think in the longterm, you’ll have no trouble saving up this sum of money and, as a result, you’ll be able to truly enjoy your time away from home.

If there’s one thing for sure, it’s that thinking in the longterm will definitely open up your eyes to the amount of money that you spend and have the potential to save. If you’re wise about your money, you’ll take this newfound information on board and use it as inspiration to help you curb your spending. For example, once you understand just how expensive a daily Starbucks can be and how much money it has the potential to drain from you over a sustained period of time (having a $4 latte every day will see you spend over $21,000 over ten years), you’ll no doubt cut back on your caffeine fix. Whether this means avoiding coffee altogether or taking a flask to work each morning, the stark realization of how much you spend will be sure to scare you into saving. Just imagine what you could do with that extra $21,000 in ten year’s time.

  1. Use cash, not credit

The biggest mistake you can make as a credit card owner is to treat your credit like it’s free money. By continuing to use your credit card freely and dismiss the spending that you do on it as being a problem that you’ll face another time, you’ll always find yourself in debt of something and owning money to someone. Whether you owe $10 or $100, when you’re in debt, it’s hard to put money aside that is going to better your life.

Instead of using credit to finance your lifestyle, use cash instead. This will see you keep a far tighter rein on your spending, and you’ll end up having more money to spend on yourself going forward. Whatever you do, just put the money that you do save to good use (remember, those lattes will soon add up!).

By making the five smart financial decisions listed above, your life will no doubt end up being a whole lot better.

Money makes the world go round, and it’s at the centre of our day-to-day lives for a variety of reasons. A 2018 study found that three quarters of Britons were worried about their finances, and further research concluded that over half of UK adults are concerned that their mental health is suffering in relation to money worries. So, what’s the current situation and how can we improve on teaching young people how to manage their finances?

We take a look, with some help from Business Rescue Expert, company liquidation specialists.

The millennial challenge

Millennials have brought a host of gaps in the teaching of finance to the surface, and countless studies have concluded that when it comes to money, this generation haven’t been taught adequate lessons. Millennials’ spending patterns stand in stark contrast to their predecessors; they’re keen to splash out on experiences and don’t often take to the idea of big commitment purchases seriously — for example, houses. Millennial spending habits signify the disparity of their knowledge and attitude towards budgeting — research has found that 60% of these youngsters said they are willing to spend more than £3.11 on a single cup of coffee, while only 29% of baby boomers would splurge for caffeine. A lack of financial literacy in education has undoubtedly played a role in this, with many young people under the illusion that simply earning a lot of money means that you’ll never be in any debt, along with a general unwillingness when it comes to making sacrifices for the sake of budgeting. One survey found that 42% of teenagers said that they wanted their parents to talk more about finances, and a staggeringly low 32% said that they knew how credit card fees and interest worked. Teenage years are pivotal points for learning, so why is financial literacy being left out?

Revised curriculums

Finances are complex and teaching them can require a lot of technicality and practical examples in order to make any sense. Lessons in finance differ from core subjects like English and Science, as they provide life skills which, if not learned, will be detrimental as kids grow older and enter adult life. One UK primary school created its own bank, to combat ‘below average’ financial literacy learning. Despite financial literacy being introduced to the national curriculum in England in 2014, not everyone believes that school is the place for financial education. Some believe the duty should be on parents to teach their children the real value of money and how to approach it. It’s worth noting that in private schools, faith schools, and academies, it isn’t a compulsory part of the curriculum, so many youngsters would still miss out on these lessons. A lot of schools who do incorporate it into the school day compartmentalize it into general ‘citizenship’ lessons, but it’s arguable whether enough emphasis is placed on it here.

The benefits of teaching financial literacy

The areas of financial literacy currently covered under the national curriculum include savings and investments, pensions, mortgages, insurance, and financial products. It’s still a relatively recent introduction to schools, so not all teachers may feel confident in teaching it yet, due to the specialised, complex nature of the topics. There is also the matter of religious differences in the approach to and teaching of these finance lessons. Followers of the Islamic faith are prohibited from using any form of compound interest. This relates to things like conventional mortgages, student loans and car loans, all of which are commonplace in many other cultures.

For this reason, making financial literacy universal, understandable, and an essential part of learning can be difficult. Maths might seem like an obvious place to drop lessons of finance in amongst existing content, but debate is rife as to whether subjects like trigonometry are still deserving for a place on exam papers, when finance lessons could take their place and provide long-lasting life skills.

While there is undoubtedly an absence and lack of depth in financial literacy, these lessons could become more popular in the future. These skills will prove invaluable for youngsters as they progress through life, and they could eventually counteract the stereotype of a financially irresponsible or illiterate millennials.

Even though those at the top stand to reap untold rewards with the right products, the 2008 financial crash has seen big businesses and regulators avoid the light-touch approach to innovation. Today, with 39 fintech firms valued at a combined $147 billion/£115 billion, safety and financial security are paramount. Indeed, with such much on the line, companies are now taking every precaution possible before launching a new product.

Fintech Creating a Safe Place to Play

With that in mind, the sandbox strategy has become a standard across the industry. A term taken from computer security, sandboxes provide a partition between a live network and a test net. By using a sandbox, developers can test new commands and isolate faults without compromising an existing system. Using this dynamic, fintech companies are now using sandboxes to ensure financial products are not only secure but performing in the way they’re intended.

Expanding on the use of partitions within fintech, consumers are being offered an ever-increasing number of sandbox options. From financial simulators to demo games, individuals can explore potential investments without putting their money on the line.

Turning Serious Investments into a Game

This idea of turning simulations into games is one that’s also been adopted by the gaming industry. With online casino gaming now worth in excess of $45 billion/£35 billion, more novices are now eager to explore the financial potential of the industry. However, with real money on the line, playing slots and the like is always a risk. Therefore, to mitigate any financial burden, free demo slots have become popular, as you can see here. Providing full functionality without the cost, these free-play games provide that same safe environment as virtual trading platforms.

Perhaps the most interesting sandbox innovation for consumers is the growth of free investment platforms. Running parallel with their real money counterparts, these platforms allow novices to invest in stocks, shares and contracts for difference (CFDs) using a virtual bankroll.

Perhaps the most interesting sandbox innovation for consumers is the growth of free investment platforms. Running parallel with their real money counterparts, these platforms allow novices to invest in stocks, shares and contracts for difference (CFDs) using a virtual bankroll.

In tandem with a virtual bankroll, financial simulators can be used to test the potential profitability of an investment. On a basic level, Monte Carlo simulations can be created inside Microsoft Excel. By entering certain values, the Monte Carlo method assigns probabilities to potential outcomes. Or, as described by Investopedia, Monet Carlo Excel spreadsheets can compute “the probabilities for integrals” and solve “partial differential equations, thereby introducing a statistical approach to risk.”

Similarly, by using products such as Countdown to Retirement, individuals can get an idea of their future financial status without crunching the numbers.

As a consumer, the benefits of these so-called sandbox options are obvious. By giving you ways to explore the financial sector without the cost, companies are not only reducing individual risk but their own risk. What’s more, they’re providing new opportunities for the uninitiated. By removing financial barriers and giving novices a safe way to learn, fintech has become a more responsible industry for all involved.

This is according to a recent study by KnowYourMoney.co.uk. Meanwhile, separate data shows that, in total, there are just over 11 million mortgages across the country, with the combined value of the mortgage market coming in at £1.3 trillion. Here John Ellmore, Director at KnowYourMoney.co.uk¸ discusses further the correlation between a lack of financial planning and subsequent mortgage troubles.

It’s a huge market, and for most people a mortgage will be the largest single debt they take on in their life. It is vital, therefore, that consumers are thorough and diligent in both finding the right mortgage product and making mortgage repayments.

Navigating the mortgage market

Returning to the aforementioned research by KnowYourMoney.co.uk, not only did the survey uncover the types of debt people have, but it also offered insight into the ways Britons are managing their finances. And there were some concerning findings.

Most notably, two thirds (67%) of those in debt have no savings stored away to enable them to pay off debt if required, with men (73%) more likely than women (62%) to lack a financial safety net. Furthermore, nearly three in ten (29%) said they do not feel in control of their debt and have no plans of how they will pay it off.

In light of these figures, it is perhaps less surprising to note that 24% of people in debt said they lose sleep because of it.

When it comes to mortgages, planning and preparation are key. Indeed, with so many mortgages available – 4,214 new products were introduced into the residential mortgage market between 2016 and 2018 alone – choosing the most appropriate option can be challenging.

Importantly, this challenge starts with an individual understanding his or her personal finances.

Debt-to-income ratios

Essential within this planning phase is to know one’s debt-to-income (DTI) ratio. In short, this offers an indication of how much debt a person has in relation to their earnings – it is calculated by dividing total recurring monthly debt by gross monthly income.

But many people are in the dark about DTI ratios; 44% of UK adults do not know what their debt-to-income ratio is, with 39% admitting to not understanding the term.

This needs to be addressed. Without understanding exactly how much debt one can responsibly handle, securing the right mortgage is extremely difficult.

Of course, a mortgage provider will undertake its own due diligence in ensuring a borrower’s income is sufficient for the terms of a particular mortgage. However, in truth, the lender will never be able to match the borrower’s granular insight into their finances.

Avoiding bad debt

Ultimately, despite the negative connotations that still surround the word, debt is an extremely valuable financial instrument. It enables people to pursue life goals otherwise out-of-reach. But we must recognise there are good debts and bad debts.

Good debts are both manageable and will provide value to the individual – mortgages are a prime example of this, assuming the amount borrowed can be repaid. Bad debts are those that cannot realistically be repaid or provide no value – taking on debt to pay-off other debt is a common example of this.

Mortgages, by and large, are good debts, but only when the monthly repayments can be made without being overly restrictive to a person’s financial situation. The first step is for consumers to ensure they know what their DTI ratio is – a task that takes just a few moments thanks to online DTI calculators.

Failure to do so could cause problems down the line. Illustrating this point, it is estimated around 88,000 mortgages in the UK are in arrears of 2.5% or more, while there are 52 mortgage possession claims made every day.

To avoid falling into this situation, borrowers must be sure they only take on good debt. Moreover, whenever possible they should set aside savings to help make repayments in case of cash flow issues or interest rate changes in the future.

Thorough preparation and careful management are at the heart of any successful financial strategy, and when it comes to mortgages these are essential in ensuring people navigate the market safely and only accrue debts in a safe, responsible manner.

Here Syedur Rahman of business crime solicitors Rahman Ravelli questions the effectiveness of big fines and the likelihood of criminal prosecutions in the future.

Standard Chartered has hit the headlines for the size of the fines imposed on it on both sides of the Atlantic.

But behind all the big numbers and the column inches it is hard not to wonder if such a costly slap on the wrists is now being viewed by the big banks as nothing more than the cost of doing big business.

Standard Chartered has been ordered to pay a total of $1.1 billion by US and UK authorities to settle allegations of poor money laundering controls and sanctions breaching. It is paying $947M to American agencies over allegations that it violated sanctions against six countries and has been fined £102M by the UK’s Financial Conduct Authority (FCA) for anti-money-laundering breaches; including shortcomings in its counter-terrorism finance controls in the Middle East.

These fines had been expected. Standard Chartered said two months before the fines were imposed that it had put $900M aside to cover them. But this isn’t the first time that Standard and Chartered has had to pay out for its wrongdoing.

Seven years ago, it paid a $667M fine in the US. Like its latest US penalty, it related to alleged sanctions breaches. At the time, it also entered into a deferred prosecution agreement (DPA) with the US Department of Justice and the New York county district attorney’s office over Iranian sanctions breaches beyond 2007. That DPA would have expired by now but has been extended until April 2021 in the wake of the latest allegations.

Will this be the end of Standard Chartered’s problems and the start of a new allegation-free era? It is hard to believe so. But it is fair to point out that it is not the only bank to be hit by huge fines for wrongdoing and then be found to be repeating its illegal behaviour. Which is why it is hard to believe that fines are having any real impact on the way that some of the biggest banks function. If they are prepared to keep paying the fines and / or giving assurances about keeping to the terms of a DPA while reaping the benefits of breaking the law it is hard to see the cycle of behaviour changing.

Let’s be clear, any failure by Standard Chartered to abide by the terms of its DPA could see it facing criminal prosecution. And any bank’s weak approach to money laundering is now increasingly likely to be pounced on by the authorities. The Standard Chartered investigation was a co-ordinated multi-jurisdictional effort by the FCA, the US agencies and the United Arab Emirates. And while Standard Chartered’s full cooperation with the FCA saw it receive a 30% discount on its fine, relying on cooperation to gain a lesser punishment cannot be viewed as a safe approach.

The authorities around the world that investigate the activities of banks and other financial institutions are now more coordinated than ever. They have more legal powers than ever before and are unlikely to be reluctant to use them against those in the financial marketplace that come to be seen as repeat offenders.

There is no clear indication or evidence that the era of big fines may be about to pass or that the authorities are set to view convictions as a more effective deterrent to financial crime than hefty financial penalties. There may also be difficulties when it comes to corporate liability which, in the UK, requires proof that those involved in the wrongdoing are sufficiently senior to be considered the ‘controlling mind and will’ of the company.

But if fines continue to be ineffective in curbing the behaviour of certain banks it can surely only be a matter of time before the authorities rethink their approach to enforcement.

Financial technology is rapidly progressing, so fast that people are forgetting the world economic crisis that happened 10 years ago. With the evolution of financial technology, new services and better options are being created for consumers all over the world. Digital technology has created a much better user experience for users all over the world, and sky’s the limit indeed. This is what you can expect from financial technology five years from now.

More digital engagement

It wasn’t too long ago that, for every financial service you needed, a trip to the bank was a given to get that service. With the advent of technology and the age of digitization, those days are no more. You can literally pay every single bill of yours and transfer money to people across the world with a mobile application at your disposal at any time and any place, and the evolution of these services is rapid and continuous. The digitization of financial affairs means a much better user experience, which reflects positively on revenues and sales numbers. People love slacking around and still getting things done, and in the future, there’s no telling how much more comfortable technology will make banking for users.

More services

As more technologies emerge and newer doors open, more services are being created to cater to people’s every financial need using financial technologies. For instance, you can now get an advance on that inheritance of yours that’s been taking ages to get processed in the courts. In this article you can learn about their conditions and how it works if you want to get an advance on your inheritance with minimal effort and quite an easy digitized process. This financial service, and many others, helps plenty of people who might be in a tight spot and in urgent need of cash, but are unable to access any due to the lengthy process.

Newer technologies

The quest to find newer technologies to facilitate and make things better for users is non-stop. For instance, banks now in some countries are operating hybrid clouds and cloud computing to address issues of security, compliance, and data protection. Hybrid clouds also offer reduced costs and a much better operational efficiency, making them truly the future of banking services. You even have artificial intelligence (AI) been implemented in some places, hopefully to an extent that in the future it can help in back office operations, customer service, and much more!

Is it a good thing or a bad thing?

An optimist will find the current advancements being made in financial technology truly remarkable, for they have the potential to create a better and more comfortable user experience for mankind and actually help people in need of such advancements. On the other hand, there are some who might worry about the digitization of something as critical as financial services, and dread the reliance on machines to manage our finances. While both opinions have their pros and cons, one can’t deny the fact that technology is moving at an exceptionally rapid rate, and it’s quite exciting to view what’s next in store.

While many traditional methods and procedures are still in play, firms are adopting modern and innovative strategies to draw in a hipper and younger, yet more demanding, clientele.

From new technologies to fresher approaches to client service, here are the top trends that are sweeping and changing wealth management today.

A Digital Industry

2018 witnessed a firm-wide and strategic digitalization of wealth management companies. The trend continues to this day as big and small firms reshape the different aspects of their business to embody the change.

As the industry prepares for a generation of younger and tech-savvy clientele, integrating digital strategies to their marketing efforts and creating more efficient client-advisor interaction channels become essential.

Firms that have already taken the lead in implementing a centralized digital management strategy are raising the bar and driving competitors to do the same.

In the words of FinTech Advisor and ASEAN/India Retail Banking and Wealth Management Expert, Arvind Sankaran, “We are witnessing the creative destruction of financial services, rearranging itself around the consumer. Who does this in the most relevant, exciting way using data and digital, wins!”

Sustainable Investing Is Here To Stay

The Institute for Sustainable Investing’s 2017 “Sustainable Signals" report showed that there is a growing interest in sustainable investing and the adoption of its principles among investors. What's even more interesting is that millennials are taking charge.

Millennials take sustainable to the center stage as they search for more socially and environmentally conscious investment opportunities.

This increasing demand for sustainable ventures will continue to push wealth managers to take impact investing more seriously. Thus, the next years may see financial advisors incorporating the environmental, social, and government (ESG) philosophy into their services and financial planning approaches.

The Rise of AI and Robo-Advisors

Taking into account the millennials’ fascination with anything technologically-inclined, it’s not at all surprising that the idea of Robo-Advisors resonated and connected with young investors quite well.

In a statement, the automated investment service firm, Wealthfront, commended the ability of software-based solutions in delivering investment management services at a “much lower cost than traditional investment management services.”

While it can be argued that Robo-advisors can never replace competent human financial advisors in terms of creating customized long term investments or tax and retirements plans, the competition between automated and human advisors have benefited the clientele. For one, it drove the costs asset management down. More importantly, it forced financial planners to step up their game and prove their worth.

Basing on current trends, digital assistants (Robo-advisors, chatbots, and other forms of AI interactions) will continue to play a significant role in empowering client-advisor experience. We might be looking at a future where AI becomes a fundamental element in crafting large-scale hybrid advice offerings.

A Focus on Customer Experience

2018’s World Wealth Report identified that many clients think the relationship they have with their financial advisors and wealth managers falls short of their expectations and can use some improvement.

This is clearly a heads up for advisors and managers out there. In the wealth management industry, customer experience holds great weight for clients. For most investors, client-advisor relationships are critical because they believe in their in-depth implications on the realization of financial and life goals.

These days, investors are gradually witnessing moves towards better customer satisfaction as wealth management companies embrace automation and hybrid models of financial management, and re-engineer their strategies to satisfy demands and ensure that customers have the best possible experience during interactions.

With the new breed of investors putting a prime on user experience and opening themselves to the possibility of switching to other wealth management providers if their expectations aren’t met, the best way forward is to innovate and shift to strategies that put the client and their needs at the core.

Almost a third of these breaches were down to organisations neglecting simple security procedures, whilst over three quarters were caused by issues at the application layer, often related to out-of-date software, insecure third-party payment systems, or inadequate scanning. All of these breaches therefore contravened Payment Card Industry Data Security Standard (PCI DSS) requirements.

In one organisation, up to 40 employees used the same password for the server, and had full admin rights to the overall system. Another case saw a coding error present in the website login page, which enabled an attacker to obtain usernames and password hashes – ultimately allowing access to the organisation’s web server.

The analysis also revealed that the £1.74 million in fines issued for these incidents by the ICO in this time period could have amounted to almost £889 million under the General Data Protection Regulation (GDPR).

Phil Bindley, managing director at data centre and managed service provider, The Bunker commented: “PCI DSS compliance is a continuous journey and one that requires regular assessment to identify any weaknesses across an organisation.

“Regulators aren’t going to be lenient about failings in this space, and if businesses don’t invest enough into improving defences, we’re going to see more organisations having to pay the price for a relaxed approach to security.”

Simon Fletcher, managing director at cyber security specialist, Arcturus added: “We’re still seeing businesses failing to implement even basic measures when it comes to securing sensitive information.

“The need for regular and thorough testing is clearly outlined by PCI DSS, and is something that is still forgotten by many or causes confusion, particularly when it comes to the application layer. Testing systems is vital in order to ensure that any issues are quickly addressed to prevent data being put at risk.”

The study, conducted by independent survey company Censuswide asked 1,000 members of the UK public about their views on the economic outlook for 2019.

A total of 44% of respondents said they expected a financial crisis worse than 2008. Additionally, over a third of those polled (41%) said they are expecting to see a housing crash happen this year.

Only 14% of the population said they had forgiven the banks after the 2008 financial crash, according to a new poll from Spearvest, the wealth management firm.

As well as this, there is a significant distrust from consumers that banks have their best interests at heart. The survey found that over half (55%) did not believe this to be true, with only 13% believing they did.

The poll also found that consumers want banks to do more for good causes with 60% believing that banks should donate and fundraise for charities more.

Wael Al-Nahedh, CEO of Spearvest comments:“With widespread concern around the performance of the housing market and the wider economy, 2019 already looks set to be a challenging year for investors. It’s also clear that the financial services industry needs to do much more to win back trust of the public, supporting good causes and demonstrating a genuine commitment to charitable giving.”

(Source: Spearvest)

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