Besides, sometimes you have to take a step backward to move forward. The most practical way of dealing with bankruptcy and moving back to solvency is by establishing a saving plan. Saving is an essential aspect of wealth creation. With the right mindset and correct information, individuals can create wealth post-bankruptcy by adopting and neglecting certain behaviors.

Take Advantage of the Pre-discharge Credit Counseling

Bankruptcy comes with a lot of emotional and psychological strain. However, getting help from credit counselors can help you get through. Involving your legal advisor will help you find an approved agency to counsel you through the process. The counseling platform offers valuable financial advice to help you wisely manage your finances in future. It also focuses on income, expenses and strategies to save. Consequently, it covers financial literacy on budgeting and debt management. Budgeting your finances is essential if you want to achieve your saving goals. During bankruptcy, individuals learn to live without credit. Therefore, this experience should be used to your advantage by trying to operate with no debt post-bankruptcy. In case you access credit-cards, it is essential that payments be made before or on dates when they are due. 

Increase Your Income Streams

After being declared bankrupt, sourcing for new income streams may be difficult at first. However, individuals can work with what they have, to achieve what they hope to get. For example, monthly income paid to unsecured creditors before being declared bankrupt can help you build up on your savings by depositing it into your savings account. Individuals can also start a business. Not all business ventures require capital to start. For example, Dave Ramsey began a financial advice group in his church after he was declared bankrupt which later became the successful Ramsey Show. Using your experience to educate others can create business opportunities for you, and you can even document your experience by writing a book. You can also take up a second job and save income from that job.

 Work on Improving Your Credit History

Although debt is the last thing, you should think about post-bankruptcy, working on developing a good credit history is essential. Bankruptcy records show on your credit score for up to seven years. However, improving your credit scores in three years could make you qualified for a loan. Lenders often look at payment history, hence having years of consistent payments to your savings account shows reliability and commitment. Consequently, a good credit history improves your credit score allowing you to qualify for loans with lower interest rates which also makes it easier for you to save.

Dealing with bankruptcy can be exhausting. However, accepting and working towards financial stability can make it bearable. Personal financial evaluation can help you know where to start on your journey towards normalcy. Adopting better financial habits like living within your means is also good to ensure you remain financially stable.

But what’s the difference between a financial analyst and a credit analyst? Below David Smith, a cryptographer from the Smart Card Institute, explains for Finance Monthly.

The job of a credit analyst differs from that of a financial analyst. But they have one thing in common; a prerequisite skill in research and analysis.

A credit analyst has his/her role anchored on credits alone. Basically, the credit analyst is responsible for the vetting of an applicants credit profile to ascertain if the applicant is eligible enough for a grant or loan. In cases where the applicant is not qualified to receive a loan based on his/her previous credit records, the credit analyst offers possible solutions and alternatives to the applicant.

According to masterfinance a credit analyst sources relevant information from files of the applicant relating to his/her credit records and financial habits. When all is verified, the credit analyst can then recommend the applicant to the office responsible for the issuance of loan.

Credit analysts can work in the bank, credit card issuing companies (This is not to be misconstrued with the credit card manufacturers who make use of magnetic stripes in the process. Credit analyst are not into digital hardware but more into finances of a complex nature), credit rating agencies, investment companies and any other financial institution in need of their analytical prowess.

To become a credit analyst, one must need to have bagged a degree in finance, accountancy, economics or related fields.

Financial analysts on the other hand are involved in a more versatile role when it comes to finances. They carry out researches on a broader level. These researches involves a critical survey into the macroeconomic and microeconomic environment around a potential business or sector which can assist the business or sector in making informed decisions on a planned financial step they are about to take.

For instance, if a company decides to make its shares in equity available for the public to come invest in, they will need a financial analyst to look at the possibilities involved in the proposed venture and pre-tell the outcome. This will enable the company make the right decisions.

They are also required most times to forecast the financial future of a business judging from certain parameters on ground. This calls for a more detailed research and results.

Financial analysts can work anywhere the traffic in finances is massive unlike the credit analysts. Financial analyst can fit into just any business space and help business owners make decisions from the backdrop of options and findings.

To become a financial analyst, one must obtain a degree in either math, accounting, economics, finance, business management or related fields. Other fields that are likely going to give one an edge in the hiring table are: computer science, physics and engineering. Becoming a chartered financial analyst is the peak of the qualifications followed by an MBA in same field. Companies generous enough can train their staff on financial management and analysis.

There’s also worries about Brexit, and the impact that will have on the world of FS, leading to job insecurities and further stress. Below, Vicki Field, HR Director at London Doctors Clinic, discusses the options for available for your team and their own struggles with mental health.

A recent survey conducted by Mental Health England identified that financial services jobs are 44 percent more likely to cause a stress-related illness than the average role in the UK.

Mental health is one of the fastest growing reasons for absence in the UK, having increased by a whopping 71.9% since 2011, which has cost the UK economy £18bn in lost productivity, according to analysis from Centre of Economic and Business Research 2017. The financial services sector has the highest percentage of employee absences due to mental ill health, according to research from HR consultancy AdviserPlus, which analysed 250k employees to identify that 34% of all absence was related to mental health.

However, the negative impact on the sufferer is hard to quantify in terms of cost or pounds. Mental health problems can eat away at happiness and have life changing impacts on people. So, what can we do at work to help?

While many employers acknowledge that mental health is a key employee concern, few have a specific well-being strategy in place. Probably unsurprisingly, half of the employees in the banking and financial services industries believe that businesses are not doing enough to support the physical and mental wellbeing of their employees, according to a study by Westfield Health.

While many employers acknowledge that mental health is a key employee concern, few have a specific well-being strategy in place.

Mental wellbeing used to be a topic that was actively avoided at work, with employees being worried about admitting that they had mental health issues. Whilst this is still true today, there are some high-profile campaigns which have given more focus to the prevalence of mental health issues and encouraged people to discuss and share their experiences. For example, Prince Harry established ‘Talking Heads’ with the Duke and Duchess of Cambridge to highlight mental wellbeing and has in turn been very honest about his own struggles following the death of his mother.

While companies do not carry responsibility for the general health of their employees, they do have a “duty of care” for their employees. In simple terms, this means that a company should take steps to avoid putting their employees in a position where they could be made ill by their work.

So, as the subject of mental health becomes more prevalent in the workplace, what can employers do if they think a member of the team may be struggling with their mental health?

Here are some points for team managers to consider.

1. Long or short term issue. There are two main types of mental ill health: a long-term ongoing mental health issue such as being bipolar or having clinical depression; and a probable short-term or temporary issue which is caused by life events or work such as anxiety, stress, or depression. Most people with ongoing mental health problems will meet the definition of disability in the Equality Act (2010) in England, Scotland and Wales and Disability Discrimination Act (1995, as amended) in Northern Ireland. This means the person must meet the criteria of having an impairment that has substantial, adverse, and long-term impact on their ability to carry out everyday tasks.
2. Put reasonable adjustments in place. A company has a legal responsibility to put “reasonable adjustments” in place to help the employee at work, if their condition constitutes a disability. However, even if it’s a short-term issue, putting adjustments in place can stop it turning into a longer-term problem. Just like a physical disability would require changes such as special chairs or computer screens, people experiencing mental health problems may require reasonable adjustments. This could take the form of introducing some form of flexible working (i.e. working from home more frequently or avoiding rush hour travel), for example. Each person is unique, so talk to them about what they need. Obtaining a doctor’s report with proposals is the best place to start.
3. Read their stress levels. Work can be a major stressor, when people start to feel overwhelmed or stressed by their work or by being at work. Everyone is different, and enjoyable pressure for one person can be hugely stressful for another. Most people need an element of pressure to enjoy work, but it’s when it turns into ‘stress’ that the issues start. As a manager, therefore, it’s really important to understand if any of your team are feeling stressed or anxious, and ensuring that you act to remove the stress for your employees if it is caused by work. Regular 121s to discuss workload will help you understand if there are any issues developing.
4. Measure and monitor absence patterns. This is a key way to understanding if there are any underlying conditions so tracking absence and having regular back to work interviews is important. Long-term conditions may present with a range of short-term or intermittent absence and it can be hard to identify if someone really does have a lot of dodgy tummies, or if they actually suffer from severe anxiety. Therefore, if you feel like an employee does have a lot of intermittent absence, offering confidential support through a private GP practise or an occupational health provider can have a significant impact on someone’s health, and their productivity and motivation at work.
5. Manage physical burnout. Additionally, if people are working hard and become ill, physical burnout can be frequently accompanied by mental burnout; or the start of mental health problems. If someone is feeling ill, and is still working, because they either feel forced to for fear of losing their job, or fear of failing to achieve objectives, it will start to impact their mental health. These negative feelings of stress and anxiety drive more symptoms of physical ill health, and it can become a vicious circle where the person never fully recovers and feels well. Talking to your team member is the best way to get to the bottom of how they are feeling, through 121s, back to work interviews or even just casual ‘chats’ in a social space.
6. Send them to the doctor. Whilst one of your team might not feel comfortable discussing their mental health with you, no matter how sympathetic you are, they may with a GP or occupational health professional. Doctors can support physical and mental ill health, identify any connections, and support the employee’s recovery, as well as help identify if work is one of the main issues for the depression, stress or anxiety. A GP will also aid with suggesting ‘reasonable adjustments’ at work. The old adage ‘prevention is better than cure’ is often the case when managing mental illness at work, with employees more likely to remain in work if there are early interventions.
7. Know your employees. On a personal level, there are also short-term issues which may affect the mental wellbeing of your employees: life events such as bereavements, divorces and family problems can cause significant emotional distress for people. We are all only human which means that there is an impact at work - people may be less focused, or show visible emptions, or even dress differently. There may be a few weeks or months where behaviour changes, or work drops off, and offering support to your team member during this time can have significant benefits for all parties in the long run.

How can I identify if someone’s mental health is suffering?

• Has the person’s behaviour suddenly changed? Are they visibly upset at work (crying?) Are they suddenly angry, and shouting at colleagues? Are they withdrawn and quiet?
• Do they look different? Have they stopped washing / taking care of themselves?
• Has intermittent absence increased? Stress can have physical symptoms such as regular colds, or upset tummies.
• Has their conversation changed? Are they repeatedly self-critical, or talking about how stressed they feel?

What is the role of the employer or team manager?

Always ensure you measure absence and have back to work interviews after every period of absence so you can monitor any potential issues; measuring and monitoring absence is the only way to effectively manage it. Discuss their workload and stress levels as part of a normal 121, so it becomes part of ‘normal’ conversation and not an awkward or difficult topic.

Asking someone if they are ‘ok’ is an important part of any manager’s role, but you’re not a mental health expert, or a counsellor or a doctor. If you are able to talk to your team member, and they share that they are experiencing some issues, you can get support from your HR department, from a GP or OH practitioner, or a variety of charities such as MIND.

Sometimes just listening to them, possibly changing their workload, or giving them time off, will sort the problem. However, if it is a longer-term issue, it’s important to get professional help.

Look at what can be done in the workplace to support them, talk to them and if necessary get a medical report. There’s a lot of help out there, so do ask for it.

Below, Harpreet Singh, Executive Director at Brickendon, delves into some case studies and examples that point towards an evolving workplace, remarking on the financial services sectors and its need to conform or adapt.

In November 2018, tens of thousands of Google employees conducted a worldwide walkout targeting workplace culture less than a year after the internet giant topped Fortune magazine’s list of best companies to work for the sixth year running. The protestors’ main issue was how the company was treating women, but this wasn’t their only concern.

Following the protests, media reports cited Google saying it would increase transparency and improve its harassment policies, but it shouldn’t have taken a revolt of this scale for the issues to be acknowledged. Jose Mourinho, former manager of Manchester United, who was unceremoniously sacked in December, may have the answer to Google’s problems.

Speaking to the media in January, Mourinho, one of the most successful football managers of the last two decades, said: “Nowadays you have to be very smart in the way you read your players”. He then went on to compare current players with players from previous generations and spoke about the increased need to have the right structure in the club to support the players and the manager. Like football, employee demographics in the corporate world have changed significantly over the past decade. According to a recent study by Deloitte, 75% of the global workforce will be millennials by 2025. And therein lies the problem. In the same way as Mourinho believed Manchester United was not reading its players correctly, neither, if recent events are taken into account, are many businesses.

The expectation of flexibility is neither misplaced nor impossible

In addition to having been born and grown up in an online age, there are several characteristics that differentiate millennials from previous generations. Whilst they consider themselves equally as hardworking and as ambitious, if not more so, than generation x and baby boomers, they also require more flexibility, faster results and care more about their personal well-being. According to a report in US news magazine INC., more than half of all millennial workers would like the option to work remotely, while up to 87% want to work on their own schedules.

They also perceive themselves to be more socially aware and eco-friendly and expect these traits from their employers too. Luckily, with the significant improvements in technology over the past decade, this expectation is neither misplaced nor impossible to achieve, as long as employers are prepared to innovate.

Technological improvements make remote working an easy option

Take flexibility, eco-friendliness and well-being for example. With massive improvements in communication-related technology, it is now possible to work remotely without any loss of productivity. Providing flexible working options not only reduces real-estate costs and lowers the firm’s carbon footprint but can also help increase employee motivation.

So, if done correctly, one single action or statement, such as allowing employees to start work earlier or later, or to take longer lunch breaks to facilitate participation in sporting activities, can lead to a chain of events that significantly improves the attractiveness of an employer.

But, the reverse is also true. What if a telecommuting employee needs to come into the office for a face-to-face meeting and realises that he/she doesn’t have a desk to work from? The obvious impact is a decrease in efficiency. However, research shows that not knowing whether you have a desk space can also lead to lack of motivation and stress and can in turn, have a serious impact on an employee’s overall well-being. In addition, it can create an environment of unhealthy competition due to a lack of information, in this case, related to desk space and employee whereabouts. Unlike employees from previous generations, millennials don’t tend to feel the same connection to their company and as a result will not stay somewhere they are not happy.

It’s all about work-life balance

As a result, it may be worth managers considering the way in which a flexible work schedule provides a stronger sense of work-life balance – a quality that is reported to attract millennial employees to a workplace in droves and keep them happier for longer than the two-year stint that has become the norm.

It may be worth managers considering the way in which a flexible work schedule provides a stronger sense of work-life balance.

Typically, desk space is the responsibility of real-estate management teams and doesn’t list as a top priority for senior operational managers. Desk allocations are usually managed on spreadsheets or similar static data-storage tools, which don’t allow for the constant monitoring required for effective desk-space allocation. Technology can again rectify this situation, with tools (such as HotDeskPlus, a new workplace optimisation tool and app powered by Brickendon Digital) that use mobile apps, sensors and QR codes to allow employees to view, reserve and check-in-and-out of specific desk spaces at a specific time.

Millennials may require more recognition and faster routes to promotion

Equally important is to foresee the problems that may arise as time evolves and millennials move through the ranks and take up senior positions. They may require more recognition and therefore faster routes to promotion. At the same time, incoming employees may prefer a more informal and non-hierarchical structure. This will require a shift in the organisational model and a willingness to embrace change in a way not seen before.

A quick look at the last couple of years reveals that many CEOs were either asked to leave their positions or forced to deal with discontented employees. These non-unionised breeds of relatively new organisations, such as Google, Microsoft and Uber, were expected to be torch bearers for the next generation of working practices, but their actions have largely been reactive. There is no doubt that what is thought to be an isolated incident can very quickly gain momentum and become a global phenomenon.

So, when it comes to millennials, you may want to count (and listen to) your chickens before they tweet, otherwise they may leave your roost sooner than you expect.

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.

According to Tony Smith, MD of Business Expert, for the most part, London has bucked this trend by beating even Silicon Valley to becoming the global Fintech hub. The historic financial centre has welcomed thousands of startups via progressive regulation, a forward thinking consumer market for tech products, and a central European location.

With the shadow of Brexit causing mounting uncertainty in the business community, the question of whether London can retain its title as the Fintech capital is becoming a talking point. More than almost any other industry, the ability to scale Fintech companies relies on access to global talent pools and, with post-Brexit employment laws still uncertain, many fear Britain is going to lose one of its greatest financial assets.

European Capitals Mop Up Fintech Exodus

While Theresa May struggles to push through her Brexit plan, other countries have been busy rolling out the red carpet with tax incentives and easy access to funding as a means of luring potential Fintech talent while the going is good.

Paris is one example of this. Sharing London’s historical reputation as business centre, Paris already hosts banks and large insurance companies, alongside a workforce rich in engineers and data scientists. Efforts are being made to entice tech talent via smoother regulation and a city-wide focus on AI training courses.

The German capital, Berlin, is another contender. Berlin is actively promoting Fintech relocation with it’s slogan ‘Keep Calm Startups and Move to Berlin.’ With cheap commercial real estate, governmental funding support, and 100 Fintech startups already placed, Berlin is likely to benefit widely from the political situation in the UK.

Tallinn, Estonia, while smaller than the major capitals, already has the third highest concentration of startups in mainland Europe. Tallinn is now benefiting from the efforts of the post Soviet government who recognised that technological education could drive the economy of the future. Estonia now has one of the most tech-savvy workforces in the world.

London still has a lot to offer

Despite the Brexit gloom, many pundits are at pains to point out that London is by means on the ropes just yet. In addition to its position as one of the world’s financial centres, a number of universities specialising in artificial intelligence have added to its hub status.

At the recent Amsterdam Money conference, London’s Deputy Mayor for Business, Rajesh Agrawal commented: “London is the greatest city in the world, and it’s no wonder that so many financial tech companies proudly call it home. As a fintech entrepreneur myself, I know that London has the right mix of clear regulation, world-beating talent, and a massive customer base to make it the international fintech capital.”

Also playing to the focus on expertise, 48% of the sample overall referenced ‘a third party has productised industry knowledge that we can benefit from’, among their main drivers for adopting standard products and services instead of internally solving business data challenges. In line with this focus, by far the biggest consideration respondents had when costing an external technology solution was ‘the availability of skills in the market for the approach chosen,’ cited by 49% of respondents in total. 

Cost was also a big issue driving the uptake of third-party technology solutions. 48% of the survey sample ranked the fact that an outsourced solution ‘was more cost-effective’ among their top reasons for using it.

Martijn Groot, VP Marketing and Strategy, Asset Control said: “Financial services businesses are often attracted into adopting an outsourced approach by a straightforward drive to cut costs, coupled with a desire to tap into broader industry knowledge and expertise.

“Adopting third-party solutions typically allows firms to reduce costs through improved time to market and post-project continuity,” he added. “And the opportunity to take advantage of the breadth of expertise and understanding that a third-party provider can deliver gives them peace of mind and allows the internal IT team to focus more on business enablement which typically involves optimal deployment, integration and change management.”

The benefits of an external third-party provider approach were further highlighted when respondents were asked where they looked first for data management solutions. The most popular answer was ‘externally bundled with complete services offering (e.g. hosting, IT ops, business ops) as part of business processes outsourcing deal’ (28%), followed by ‘externally bundled with tech services offering (e.g. hosting, IT operations) as part of IT outsourcing deal’ (21%). ‘In-house with internal IT’ trailed well behind, with only 17% of the survey sample referencing it.

According to Groot: “The answers show that rather than just following the data and having to install and maintain it, businesses are increasingly looking for a much broader managed data services offering, which allows them to access the skills and expertise of a specialist provider.

“Firms today also increasingly want to tap into the benefits of a full services model,” he continued. “They are looking to join forces with a hosting, applications management or IT operations approach and often that is in a bid to achieve faster cycle time, reduced and more predictable cost of change and a demonstrably faster ROI into the bargain.”

(Source: Asset Control)

Many thought it was too good to be true, but was it? Below Karen Wheeler, Vice President and Country Manager UK at Affinion, gives Finance Monthly the rundown.

YouGov research  highlights that 72% of UK adults haven’t heard of Open Banking and according to PwC, only 18% of consumers are currently aware of what it means for them. However, that doesn’t mean the changes aren’t filtering through.

The story so far

The Open Banking Implementation Entity (OBIE) reports there are now 100 regulated providers, of which 17 Third Party Providers (TPPs) are now using Open Banking in the UK. Open Banking technology was used 17.5 million times in November 2018, up from 13.9 million in October and 6.5million in September, with Application Programming Interface (API) calls now having a success rate of 97.7%.

One of the earliest examples was Yolt, by ING Bank. It showcases a customer’s accounts in one place so they can see their spending clearly and budget more effectively. Similarly, Chip aims to help people save more intentionally. Customers give read-only access to their current account and then sophisticated algorithms calculate how much a customer can afford to save, and puts it away automatically into an account with Barclays every few days.

High Street banks have certainly taken inspiration from fintechs. For example, HSBC released an app last year enabling customers to see their current account as well as online savings, mortgages, loans and cards held with any other bank. The app also groups customers’ total spending across 30 categories including grocery shopping and utilities, making it a really helpful budgeting tool.

Perhaps, most advanced of all, Starling Bank allows customers access to its “Marketplace” where they can choose from a range of products and services that can be integrated with their account. The offering currently includes digital mortgage broker Habito, digital pension provider PensionBee, travel insurer Kasko, as well as external integrations such as Moneybox, Yoyo Wallet, Yolt, EMMA and MoneyHub.

Open Banking and GDPR

One key question is whether Open Banking puts the needs of financial services companies over those of the consumer. There is a general cynicism regarding the real reasons for encouraging Open Banking and this is exacerbated when most customers aren’t seeing the benefits.

Also, there is confusion caused by the apparent conflict of interest between Open Banking and GDPR.

In this day and age, do consumers really want more organisations to have access to their data? Can they trust the banks? According to PwC, 48% of retail banking customers cite security as their biggest concern with Open Banking and this is a significant barrier to overcome.

The way forward

It’s hard to overcome cynicism and doubt. Perhaps, once customers begin to enjoy the positives, they will be less sceptical about Open Banking, leading to more opportunities to build longer term customer engagement. For example, if products help them avoid going into debt or nudge them when new mortgage rates are on offer, they will see that banks are using the technology to support wise financial management rather than just serve their own marketing purposes.

It’s also hard to change entrenched consumer habits. To encourage consumers to get in the habit of comparing and switching, financial organisations must create truly compelling propositions. They need to focus on delivering intuitive, useful digital products which make a real difference to customers’ daily lives.

They also need to demonstrate how seriously they take their role in the fight against cybercrime while educating the consumer about how Open Banking works and how to protect their data. For example, many may not realise that one of the key tenets of Open Banking is security. Open Banking uses rigorously tested software and security systems and is stringently regulated by the FCA.

Placing the customer at the centre of their finances and giving them complete control directly increases competition and brings a myriad of everyday benefits to the customer. There is huge opportunity for traditional banks, fintechs and disruptors to use Open Banking to pioneer new products that build longer term customer engagement. However, the current priority is communicating the huge advantages and opportunities that Open Banking brings while reiterating that their data will remain secure.

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.

This is the warning from Nigel Green, the Founder and CEO of deVere Group. Mr Green says: “The actual process of leaving the EU itself is now increasingly irrelevant.  Indeed, even if the UK didn’t leave, unprecedented damage to the UK’s financial services industry has already been done.

“Following years of uncertainty and a lack of firm leadership from all parties, firms across the sector have had to take precautionary action to safeguard their interests. 

“Typically, this involves relocating parts of their business or key staff to places like Paris, Luxembourg, Dublin, Frankfurt and Amsterdam, or setting up legal entities in the EU.  Sometimes this has been done publicly, but a lot has, so far, not been disclosed, so we still can’t know the full scale of the situation.”

He continues: “With no meaningful access to the EU’s single market, the UK’s financial services sector is bracing itself for what is likely to be a long and steady decline, ultimately losing its coveted ranking as the world’s top financial centre.

“The lack of confidence in the UK’s financial services sector, which contributes around 6.5 per cent to the country’s GDP, will inevitably hit jobs and the government’s tax base.”

The deVere CEO concludes: “The steady drain of investment, talent and activity away from UK financial services might be able to be stopped, the situation might be recoverable, but confidence needs rebuilding fast.”

(Source: deVere Group)

Research from AVORD – a revolutionary new security testing platform that launches today – reveals 95% of businesses in the financial sector have seen an increase in the number of data breaches over the last five years. And as a result of the growing threat to mobile devices, more than half (52%) are now investing more in identifying and protecting against app-based threats.

Opportunistic multi-national consultancies are being blamed for inflating the price of security testing in the UK, with many financial services businesses being charged inflated prices to conduct tests on their critical assets.

Consultancies taking advantage

Today’s findings put the spotlight firmly on the security testing market, which is dominated by consultancies who provide services to businesses, sometimes at twice the daily rate of an independent tester – often referred to as ethical hackers. With 76% of businesses claiming the cost of testing is too expensive, there is a clear demand for change.

More than three quarters (79%) of businesses in the financial sector currently outsource the security testing on their critical assets. The need to use consultancies is being driven by a skills shortage, with many (41%) revealing that they don’t fully possess the in-house, employee skills and knowledge to carry out security testing.

More than three quarters (79%) of businesses in the financial sector currently outsource the security testing on their critical assets.

A surge in cybercrime

Worryingly, the financial sector was subject to the most security breaches - of all surveyed industries - last year, with two in five (41%) suffering from an attack that directly hit their bottom lines, lost them customers and damaged their brand reputations. Of those hit by a cyberattack, 77% reported that the breach occurred partly as a result of issues with the security testing process.

Over the past five years, the majority of companies have seen a major increase in the number of data breaches: 29% reported an increase of between 11% and 20%, while more than two in five (44%) reported up to 10% more data breaches.

The true cost of cyberattacks

As new emerging technologies are deployed, and applications increasingly underpin core business processes, firms across the UK claimed that cybercriminals are creating new ways to exploit vulnerabilities, which is putting increased stresses on them at an already challenging time.

The impact of breaches in the past 12 months has been wide spread. 84% of those affected reported losing customers, while almost a half (48%) had to pay legal fees and 58% experienced reputational damage. In addition, nearly seven in 10 (68%) were hit by fines from regulators.

(Source: AVORD)

This is according to Henry Umney, CEO of ClusterSeven, as he offers his views on the regulatory and risk management trends in the banking and financial services industry for 2019.

Brexit will confound banks in 2019, whatever the outcome

The UK’s departure from the EU at the end of March will continue to have a significant impact on the banking, insurance and asset management sectors throughout 2019, almost regardless of the nature of the final departure. Brexit uncertainty is presently forcing banks to implement their most stringent contingency plans, in terms of re-locating critical business services, processes, and in extremis, specific roles and personnel. To this end, division of data, processes and responsibility need to be managed carefully to ensure these changes are executed smoothly, efficiently and with full auditability. Further complexity is provided by the UK’s Prudential Regulatory Authority’s (PRA) announcement that institutions will be able to continue to trade as branches of their head office, rather than as a (more capital intensive) subsidiary post-Brexit. This, alongside the European Banking Authority’s (EBA) recent announcement that it sees ‘back to back trading’ between the City of London and the EU as beneficial, suggests that there is a willingness to find a modus vivendi that allows complex cross-border transactions and business processes to continue as normal, almost regardless of the final Brexit outcome.

This complex, conflicted environment will place a premium on understanding how disparate business processes and applications, including how end user supported processes (e.g. using spreadsheet-based applications) are configured, allowing institutions to respond quickly to new developments – and potentially even reversing previous decisions about re-locating people, roles and business units.

Regulators and auditors will demand mature model risk management

In the US, the momentum for a mature approach to model risk management will gather further pace as government frameworks including SR 11 7, CCAR/DFAST stress testing and CECL, for example, are more closely scrutinised and audited by regulators. Increasingly these governance frameworks are being extended to include the tools that feed the models and there is recognition of the significance of the spreadsheets and other end user supported applications to the models covered by these frameworks.

This approach to sophisticated model risk management will find favour with European regulators too, a trend that is already in motion with regulations such as TRIM and SS3/18. This is fundamentally driven by regulators’ collective objective of demanding visibility of critical models and enhancing the operational resilience of financial institutions. Effective data management, including that stored in spreadsheet-based and other end user supported applications, is central to these frameworks.

To meet the excellence in data governance and auditability as demanded by the regulators in the UK and US, financial institutions will be forced to apply the same level of controls to their end user supported application environment – as they apply to their broader corporate IT environment. This reflects that spreadsheets are often the ‘go to’ tool in developing a broad range of business and financial models.

The transition away from LIBOR will present a major operational challenge

Due to the enormity of the transition from LIBOR (London Interbank Offered Rate) to alternative reference rates (e.g. SOFR, Reformed SONIA SARON, TONAR), financial institutions will begin adjusting their processes and systems, in preparation for the switch to new reference rates by the end of 2021. The clock is ticking.

With a parallel universe of spreadsheets connected to enterprise systems such as risk, accounting models and a plethora of non-financial contracts, financial institutions will need to ensure that the relevant changes are also accurately reflected in the spreadsheet-based processes. Given the broad range of potential alternatives to LIBOR, it seems possible that multiple replacements may be in use in different jurisdictions. There will be a premium on being able to identify transactions and contracts quickly and efficiently, and applying the appropriate reference rate, quickly, efficiently – and again with full transparency and auditability.

GDPR has the hallmarks of expanding into a global framework, its compliance will need to be in organisations’ DNA

GDPR has all the makings of becoming a global standard. Already, California is taking the lead with the California Consumer Privacy Act (CCPA), which comes into force in 2020. Other US states are also considering similar regulations to protect the rights of their residents.

With a fine of $1.6 billion levied on Facebook this year, the EU has clearly demonstrated that it means business. In 2019, organisations will have to shift their GDPR focus to ‘sustainable compliance’. They will realise that inventorying IT systems for GDPR-relevant and sensitive data was merely a good first step to meet the compliance requirements on 25 May 2018. GDPR compliance will need to part of their DNA – requiring it to be a ‘business as usual’ activity. With unstructured confidential data (e.g. personal details of clients and employees) often residing in spreadsheets, visibility alongside continuous monitoring, controls and stringent attestation of information will be essential to meeting GDPR demands such as the right to be forgotten and data portability. Automated spreadsheet management will become critical to sustaining GDPR compliance.