While we would need to go country-specific to understand the obstacles in serving these segments, I would generalise that business banking for small firms still has a lot of room for pain removal whereas consumer banking has less room, due to competitiveness and more advanced evolution. The profit dynamics of serving small firms would also be better as the loan quantum tends to be larger. The downside, of course, is that bad debt would also tend to be higher. 

The large proportion of retail customers are salaried rather than self-employed, and thus unless an economic shock that drives a significant uptick in unemployment happens (e.g., Covid-19 and unemployment in the travel, hospitality and retail sectors), banks have already built into their debt servicing ratios a higher interest rate as a buffer to more realistically factor an individual’s ability to repay at higher levels of interest. Small firms, however, may have higher variability and fluctuation in their income generation ability, introducing greater uncertainty in their ability to repay. To mitigate against this, banks generally ask to see their bank balances over 6 months to ascertain cash-at-hand and use this as a proxy to compute the debt servicing. However, vital data missing in this calculation is what other loans the SME has taken, a service generally provided by business credit bureaus. 

Global Challenges For SME Credit

The SME credit bureau landscape is generally underdeveloped in many markets like Southeast Asia, Africa and Latin America. A report by the Asian Development Bank Institute found that “in the bank-dominated financial systems in Asia, SMEs have difficulty accessing cheap finance”. Two examples of a nationwide SME credit bureau, in Japan and Thailand, were highlighted, but the report concluded that “other parts of Asia lack such systems to accumulate and analyse credit risk data and to measure each SME’s credit risk accurately”. Hence, most banks are still assessing credit based on bank statements and collateral, and SMEs who can’t show such assets are not receiving the working capital loans that are vital to their survival and growth. According to a Bain & Company report, SMEs remain a largely underbanked segment in most markets. Approximately 80% of surveyed SMEs say they need to borrow but lack access to affordable credit. 

Even in countries where the SME bureau can accurately risk rank SMEs, banks still lack key data to help them throttle working capital based on the amount of business a company does; rather than underwrite loans on a per transaction basis, which is data or paper-work intensive. Thus, some of the most progressive banks are beginning to turn their attention to accounting systems to obtain the crucial data needed to underwrite an SME customer. An example is Mettle by NatWest, which announced in 2020 that it was giving all its customers free access to FreeAgent’s cloud-based accounting software. UK digital banks like Starling, Tide and Mettle all support connectivity to SaaS-based accounting software Xero and FreeAgent. Starling and Mettle also support QuickBooks, while Tide supports Sage. 

The Future Of Digital SME Banks

I believe native connectivity between accounting systems and digital business banking will become a standard in a couple of years, and that’s because of the accounting information for underwriting. Balance in the bank, which is the most common credit evaluation method today, isn’t a good predictor of an SME’s ability to repay the working capital loan. It’s what I would call third-order data, in the sense that the predictability gets better as you move from third-order (bank balance) to second-order (monthly profit) to first-order (accounts receivable or AR vs accounts payable or AP). These second-order and first-order data are found in the accounting systems of most companies. 

One of the concerns about using accounting data for underwriting is the ability to discern legitimate entries from fraudulent ones. I had the opportunity to speak to a senior executive in a UK bank who was heavily involved in the design and development of a digital SME bank serving micro and small SMEs. His view was that they have not encountered major issues with fictitious entries. The jury is probably still out on this topic, and to avoid moral hazard problems, routines that can ascertain the authenticity of the transactions via comparisons against time, day and person making the entry, etc., can and should be implemented. 

Right now, more banks are using SaaS accounting software connectivity for lead generation than credit underwriting. That’s the next stage for any progressive digital SME bank. This will represent a significant breakthrough in the ability to extend lending to businesses that don’t generate the cash flow to show sufficient bank balances, but it also represents a significant breakthrough for the industry at large, as banks will now be able to dynamically flex their working capital limits based on AR and AP movements. Frequent adjustment of limits isn’t something that happens today, and the ability to do it automatically based on a firm’s business velocity will allow savings in capital (as capital needs to be put against undrawn limits), and also create a means to reduce limits as business slows, so that funds set aside for working capital cannot be used for other purposes, which is the case now as the loop isn’t closed. This development isn’t limited to SMEs. It applies to all businesses, and my prediction is that such a development will happen and transform the way banks lend to businesses globally. 

SME Digital Banks Can Make Operations More Efficient

SME digital banks can also help small businesses become more efficient in their operations. Operational efficiency is an issue with small firms. One contribution to operational inefficiency is the delay between the outlay of expenses to order or build the product or solution required and the time they receive the payment from their customers. Late invoicing, late payments, and long credit terms all contribute to lengthening this timing mismatch, and the gap needs to be funded with working capital loans. Integrating the digital banks’ payments capabilities with the accounting system can eliminate the need for double entries in both the accounting and digital bank platforms. In addition, reconciliation can be much reduced, by automatically assigning all invoices a unique sub-account number, so that the system can tell who has paid and who hasn’t, without reconciliation. Late payers can also be automatically sent collection notices and reminders. Other capabilities include sending invoices where payers can click on the invoice to pay. These are all opportunities for SME digital banks to remove pain points for small businesses. 

A final reason to build a digital bank to serve the micro, small and medium SMEs (MSMEs) is that in many countries where consumer digital banking is already of a relatively high standard, SME digital banking often lags significantly. Banks have tended to prioritise consumer and corporate banking for their digital transformation initiatives. After the substantial investments in these segments, what’s left is usually a lack of further appetite to invest in MSME digital banking. The same opportunities exist here as in the consumer banking space, to attack and serve the bottom-of-the-pyramid using disruptive innovation, the focus on creating a data-enabled digital bank to help MSMEs with their business financial management, and significantly improving the banking experience, lowering operating costs so that you can target the MSME, etc. These are all proven opportunities in consumer banking in countries like China and Brazil but have yet to impact most MSMEs.

This article was written by Dr Dennis Khoo, adapted from his new book Driving Digital Transformation: Lessons from building the first ASEAN Digital Bank.

When it comes to setting the right price point, the elasticity function is the notion to consider. It is about finding the given price point to help predict the number of products being sold. Such a method is directed at boosting revenue and sales volume. If a business is there to grow and prosper, establishing good price points and using price management software is a must. 

What is the price point concept all about?

The idea standing behind the price point is evaluating the current pricing strategy and determining its weak sides. Yet, if one wants to define the price point phenomenon, it is a special retail price allowing businesses to maintain a reasonably high demand for a specific product or service. Want to make the most of your pricing strategy? Setting a good price point is the way to do that. 

The significance of price point thresholds 

Making a psychological connection between a price and a product to attract consumers is considered to be the price point threshold. It is important because it creates a favourable environment for both sellers and buyers. First, consumers pay the highest price. Second, they remain loyal to the brand. Some even argue that the price point threshold is the best strategy for maximising revenue through a pricing strategy. 

What is the core of price point functionality? 

Price points should be constantly adjusted. When doing this, always consider factors like your company’s vision, prices offered by competitors, volumes of supply, degree of demand, and the customer’s perception of the product.

Considering all these elements can be problematic. Luckily, there is advanced price management software available. It can help companies manage price points sustainably. Yet, to get the most out of the price point phenomenon, you can use several approaches. 

Approach 1: Use testing for price points

Reasonable price points are achieved through trial and error. As with many approaches, knowing what customers expect to rely on is running a bunch of tests. For the price point phenomenon, consider A/B testing.  

Approach 2: Integrate advanced solutions

It is hard to underestimate the importance of using advanced solutions to analyse the market and find grounds for adequate price points. To save time and resources, consider price management software. Such software is a massive digital aid capable of analysing and monitoring amounts of data that the human brain cannot handle. Price management software is a scalable and impactful strategy within all the stages of establishing price points.

Approach 3: Engage in price point analysis

Improving the quality of price directly depends on analysis. This strategy requires analysing data and optimising it while engaging in a phase-by-phase strategy. Along with optimisation, one should think about price perception at the same time. 

Here’s how the system works. You have a product with a price of $20. You want to sell the product to a limited pool of clients. When selling such a small batch, you can both use the basic price or set a higher one. Such a leap value approach offers a price strategy that a business can use at any given moment. 

Why does the system work? First and foremost, it serves as a great strategy for companies entering a new market. Second, it offers insights into what consumers expect for a particular price. Third, the system is there to create a feeling of urgency and limited demand. All these aspects create an impression that consumers get a good deal. 

Approach 4: Using a skimming model to find an entry for a price point

The skimming model is utilised to set a price favourable for companies entering a new market. It helps set an optimal price. What type of price is it? It is the price that leads to profit maximisation in the most time-effective manner. The skimming model often results in a higher price when a new product enters the market with a subsequent lowering of a price. 

Approach 5: Consider price perception

The factor of price perception is important for understanding how loyal the customers are to your brand. It works through price points and the perception of such. When making a purchasing decision, a consumer should have a feeling that one is getting a good deal. Remember, customers perceive your products in a subjective manner. The same is true with their shopping experiences. Yet, setting an appealing price boosts the shopping experience, thus having a positive impact on your brand’s perception. 

Approach 6: Putting price points into a bundle

Selling goods in bundles for a more appealing price is a reasonable price point strategy. When offering consumers several similar products for a decreased price, you both create the impression of a good deal and increase the sales volume. In the end, it will boost the revenue and increase customers’ loyalty. 

Approach 7: It is all about monitoring

Being a step ahead of your competitor is vital for reaching business objectives. It can be achieved through constant monitoring of price points established by rival companies. By tracking the market, you learn about the mistakes of others. In such a context, you can both avoid those mistakes and ensure that your business will be the one at the top. It is often worth having a market analyst on board. The professional will provide some valuable insights that can be easily turned into profitable price points. 

Considering the above, the maximisation of revenues through price points is not only possible but much needed. There are various approaches to getting adequate price points. Be it extensive market analysis or price management software, the more time and effort you put into understanding and setting a price point, the greater the likelihood that you will receive additional revenues, sales volumes, and customer loyalty. Simply put, price points are the strategy business cannot afford to avoid. 

Notably, financial criminals are evolving, with regulations also changing. This scenario has created the need for financial institutions to remain on top of their game to deter criminals in their tracks. Failure to put a solid proof financial crimes risk management system in place can be costly due to accompanying hefty fines. 

Financial crime is constantly evolving, and institutions are at risk of committing compliance mistakes and struggling to meet their regulatory obligations. Some of the mistakes happen despite persistent sensitisation on curbing the vices. However, below are vital guidelines vital for mitigating financial crimes.  

Leverage Technology 

Detecting fraud manually can miss out on some potential flaws. For instance, organisations can leverage AML detection solutions to automate the onboarding process. Such technologies cut out instances such as false positives and repetitive tasks while allowing more time to focus on serious threats. 

Ongoing Monitoring

This approach should be conducted in all business relationships and transactions, especially when a potential risk has been identified. A financial institution can use ongoing monitoring once unusual transactions outside the banking activity's regular pattern have been identified.

Regular Policy Update

An institution should commit to fine-tuning internal policies regularly. This ensures new emerging laws are embedded at every level of the business. Consider onboarding external experts to review your existing policies.

Open Communication

Employees should have an opportunity to speak up freely when they notice suspicious activities. The organisation can focus on offering employees relevant training to identify and manage financial crime threats while stressing the importance of observing the policies. 

Assessing And Understanding Risks

The financial institution should conduct a comprehensive risk assessment by considering all the relevant inherent and residual risk factors. Additionally, there should be appropriate mechanisms to document and provide risk assessment information to relevant authorities and agencies such as supervisors. 

Mistakes Financial Institutions Make In Handling Risks

• Avoid the risk
• Solving the risk halfway
• Failure to follow internal policy
• Failure to train internal teams

Technologies That Help In Financial Risk Management

Machine learning: This helps detect transaction patterns where the system acquires its own rules based on the data and patterns found. Notably, the technology is gaining prominence among various institutions. 

Cloud computing: This technology can help manage data for aspects like performing know your customer AML activities. Cloud computing also offers other benefits, like improved risk-scoring capability.

Graph analysis:  The purpose of graph analytics technology is to compare relationships between individuals. The technology deploys data analysis to show whether individuals present their true identity while engaging with a financial institution. 

Automation: An institution can acquire software, primarily robots, to study human sequence while interacting with the organisation. For instance, the technology can detect unusual activity while monitoring logins, click, and copy-and-paste actions to determine any specified sequence that might call for further investigation.

Factors To Consider When Selecting A Financial Risk Management Solution

• Reliability 
• Regulatory compliance features
• User-friendliness
• Security ​​

Endnote 

Financial crimes come at a cost, and there is a need to deploy various measures like state-of-the-art technology, analytics, and data management to meet compliance requirements. It is key to stay ahead of the curve to address changes more efficiently.

A wide range of apps is already being used in day-to-day life. Institutional trading platforms, direct access brokers, and HFT-investment tools expand their capabilities via API connections from AI backend systems. Companies with a significant footprint in the artificial intelligence sector have shown remarkable evolution and strength in the financial markets. Investors who have chosen the right stocks in the early stages of AI made meaningful profits partaking in their growth.

AI Revolutionises The Economy

Whether in the investment or energy sector, legal advice, retail or elder care, the areas in which artificial intelligence systems can be used are numerous and broad. Consequently, companies and analysts assume that artificial intelligence will revolutionise the economy of the 21st century.

AI has become a fundamental everyday companion for many people. For example, many use it to access buildings and data centres or digital facial recognition on their newest smartphones. Internet search results are getting better and better by picking the best results for a relevant query out of multi-millions of potential websites. In addition, voice assistance and translators become faster, and spell checkers in e-mails are more accurate than ever before.

The chances are that millions of people will be transported by autonomous driving cars soon. For their use, test automobiles are in operation worldwide. They collect "driving experience" over millions of miles and collect the essential data for self-learning algorithms.

Investors In AI-Focused Companies

Companies with a substantial focus on artificial intelligence see rapid gains on stock markets like the New York Stock Exchange or Nasdaq. Tech giants such as Microsoft Corporation, Nvidia Corporation, Alphabet Inc., and Apple Inc. have seen significant gains between March 2020 and December 2021. They all have in common that their services are used with existing products without selling something new to a customer.

Microsoft Windows is still by far the leading operating system on P.C. Alphabet's Google search is implemented on billions of devices and used by billions of users around the world every day. Nvidia's graphic cards are part of most gaming computers, and Google's Android-based devices dominate the smartphone market along with Apple's iOS systems. Those technologies play a crucial role in advancing artificial intelligence, whether Alexa, Cortana or Siri.

Nevertheless, caution is required, like with any investment. Being an industry leader in a growing market does not automatically ensure unlimited success without risk.

Companies can fail despite good ideas. Facebook, for example, changed its company philosophy in late 2021 by re-branding the company name from Facebook to Meta Platforms. with the focus on the growing Metaverse. This new company strategy is not a guarantee of success, and first growth projections confirm that the future growth is expensive while the user base is shrinking for the first time. Facebook goes with the Metaverse trend, and people tend to confirm that this is a real trend, but it might take decades before actual results become visible in balance sheets.

Therefore, buying individual shares of companies focusing on AI can lead to meaningful profits and extensive losses. Regardless of the prevalent company strategy, current market stake and future expansion of the digital transformation.

In general, investments need explicit expertise to determine the best possible companies worth an investment. The risk of investing in specific assets is significantly higher than for mutual funds that invest broadly and are actively managed by investment professionals.

AI Company Investments

Investing in specific shares of a company requires insights into the most key company fundamentals and ample knowledge about the stock market in general. Many free stock trading platforms provide free information about company metrics like:

•   Market Cap
•   Profit Earnings Ratio
•   PEG Ratio
•   Dividends
•   Earnings Per Share

In addition, numerous websites also supply users with stock charts, technical analysis features and portfolio tracking functionalities. But, in the beginning, investors have to learn how to interpret those company fundamentals correctly. Comparisons relative to other companies in peer groups and other sectors are also meaningful.

A small fraction of investors prefer day trading volatile growth stock with big stakes in AI technologies. They utilise tools to profit from minimal stock market movements. Such tools often focus on high-speed trade execution, extensive charting capacities and excellent customer support. Some of those platforms also use AI to find the best tradable stocks.

Day traders often trade 1,000 shares or more at once to achieve a high cumulative profit. Interestingly, a day trader holds 100% cash overnight without investment exposure. Therefore day trading is entirely independent of the company's future potential and business success.

Day trading is one of the most speculative investment strategies and demands a massive time responsibility. That's why most investors choose long-term investments by using instruments like ETFs.

Diversified Portfolios

Investing in artificial intelligence-focused mutual funds or exchange-traded funds is often considered a much safer alternative to day trading. With an accelerating digitisation trend, some investment funds focus entirely on artificial intelligence to benefit from the value driven by this technology. Their broadly diversified portfolios help investors partake in the evolution of AI companies worldwide.

Diversification of investments by investing in ETFs is a great alternative to day trading AI stocks. The key benefits are:

•   Investing in ETFs requires a small time commitment
•   Most stock brokerages in the US allow clients to buy and sell exchange-traded funds without the need to pay commissions
•   The issuer of the ETF manages it and takes care of rebalancing activities.

Conclusion

The artificial intelligence business has immense potential, and it will be one of the pivotal disrupting industries in the 21st century. As a result, investors can now participate in the future growth of AI in numerous ways. Retail brokers and more specialised HFT brokers continuously expand their capabilities and enable investors to connect AI systems to their order routing systems. Algorithms take care of the order routing and trade execution process.

Long-term investing via AI-focused exchange-traded funds has some limitations in controlling the company diversification within the ETF but requires only a little time commitment from the investor. In contrast, investing in stocks is an excellent way to diversify a portfolio directly. Still, it requires comprehensive knowledge of financial market behaviour and insights into key company financials. Yet, day trading volatile stocks allows to stay on cash overnight, but it is only an option for professionals and demands the highest time commitment.

Mark Jenkins, Chief Finance Officer At MHR International, explores how digital transformation has fuelled the need for finance teams to move away from outdated software and embrace a more suitable way of processing data.  

A recent MHR survey revealed that over half (51%) of finance leaders depend solely on Excel for their processes – a figure more reflective of the industry’s lack of tech investment than of the usefulness of a software tool now over 30 years old. 

Accordingly, many finance leaders are missing out on opportunities to reshape their role due to being weighed down by time-consuming and tedious manual tasks. This is also using up valuable time which could be better spent feeding into bigger-picture business strategy conversations. Should they continue to be left out in the cold, businesses risk missing out on a wealth of expertise, knowledge, and crucial financial data.  

If finance professionals want to take their rightful place at the strategic table, they must become drivers of tech implementation. 

Stuck with spreadsheets

Excel is still deeply entrenched in the culture of many finance departments. Often seen as a tried-and-tested, ‘safe’ tool, spreadsheets owe their ubiquity to organisations’ traditional reluctance to spend out on innovative software and processes. After all, it is daunting to ditch the only business analytics tool you have ever known in favour of something new, especially when to date your organisation has been completely reliant on it. 

But while Excel is great for rudimentary calculations, its shortcomings in today’s interconnected global finance ecosystem are more obvious than ever. In a world that is increasingly driven by collaboration and information sharing, Excel is simply incapable of providing the multi-user support and complex, real-time data analytics needed for successful financial modelling and forecasting. 

Furthermore, Excel cannot always be relied on to keep data safe and secure. Recent headlines have made this painfully apparent: in 2020, almost 16,000 positive Covid cases vanished from Public Health England’s contact tracing system in a high-profile IT glitch. The reason? Excel had run out of numbers. With almost a third (31%) of finance leaders rating unsaved spreadsheets and lost documents as the greatest risks of their role, such costly and embarrassing errors should spur businesses to prioritise data integrity and move away from outdated spreadsheet tools. 

Leaders or laggards?

Reliance on legacy processes is also hindering the strategic growth of finance leaders and their teams. MHR’s survey found that almost half (44%) of leaders are left out of business strategy conversations, as they find themselves overburdened with cumbersome manual processes. Wasting time copying and pasting data from one spreadsheet to another, talented finance professionals are currently robbed of the chance to participate in long-term scenario planning, leaving them vulnerable to future market changes and missed growth opportunities.  

As a result, technical debt and legacy mindsets are holding finance teams back from flexing in their role and using their expertise to shape important strategic initiatives. This seems thoroughly at odds with the digital transformation happening across all industries. If finance leaders want to be the drivers of the data analytics revolution, they must leave Excel in the past and embrace smarter tools. 

From stagnation to automation

Accelerated digitisation has fuelled the need for finance teams to ditch outdated Excel software and adopt more suitable ways of processing data. By implementing agile and collaborative scenario-planning solutions, finance departments can seamlessly plan and model for the future, enabling them to use their insights to shape long-term business-wide strategy.

Automation is the key to future-proofing finance teams. It removes the need for professionals to reach down and perform tedious, time-consuming manual tasks, thereby freeing them to undertake more high-value endeavours and provide forward-thinking strategic advice at board level. Furthermore, automated processes support teams in boosting their compliance, accuracy, and data security, considerably lightening the load. 

The right integrated corporate performance management solution goes beyond basic financial planning: new market entrants can incorporate extended planning and analysis (xP&A) to put finance leaders back in the driving seat to make more efficient strategic decisions. This enables teams to make considerable time and cost savings, setting themselves and the wider business up for a more productive and profitable future. 

In today’s increasingly challenging and competitive commercial environment, financial data cannot sit siloed with individuals, nor be held in obsolete IT systems. The right tools and solutions will ensure greater data visibility across the wider business to help support long-term decision making. In addition, tech implementation can free finance leaders and their teams from low-value, repetitive manual tasks, securing much higher levels of efficiency, responsiveness, and agility.

Decentralised finance (DeFi) is booming, with the total value locked – the overall value of assets deposited in transactions – having risen from $700 million in December 2019 to over $200 billion at the beginning of 2022, equivalent to Greece’s 2017 GDP.

Having spent 15-plus years in the FinTech sector and as CEO of AQRU, a company that offers secure platforms for users to easily access the decentralised markets, I’ve experienced both sides of the coin first-hand. This has allowed me to identify three main factors fuelling the growth of DeFi: accessibility, ease of use and yields. These drivers stem directly from the way DeFi is built which is why, before deep diving into each one of them, we must take a step back to understand the basics of DeFi. 

The building blocks of DeFi

DeFi is the use of the blockchain, the technology upon which Bitcoin and Ethereum are based, to create an entire financial ecosystem that doesn’t rely on a central authority, such as a bank, to validate transactions. Instead, all activity is recorded in ledgers stored across millions of computers, each capable of verifying every transaction to ensure it matches the records.

However, there is not much point in a digital currency if there is nowhere to spend it. DeFi makes Bitcoin, Ether, stablecoins and other cryptocurrencies worth having as it enables users to gain interest from lending cryptocurrency (also known as yield farming), buy insurance, and save and send money anywhere in the world – if it can be done in traditional finance, it can be done in DeFi. Now that we’ve covered the building blocks of DeFi, we can move to the three factors driving the growth of the sector. 

A system accessible to all

One of the initial goals of crypto and DeFi is to promote financial inclusion by ensuring the 1.7 billion people worldwide who don’t have a bank account and nearly half the world’s population without an active bank account can access the same benefits – paying bills, accessing insurance and creating a pension pot – as those participating in traditional finance. 

To do so, blockchain technology has been designed in such a way that it is accessible to anyone with a smartphone. With 91% of people worldwide owning a smartphone, this design has opened the door to thousands of people considered ‘unbanked’. And in countries such as Venezuela where exchanging currencies is difficult, it has also allowed people to protect their savings from inflation by exchanging their fiat for crypto.

As simple as tapping on a smartphone

As well as opening the door to millions of ‘unbanked’ people, DeFi has attracted a lot of interest because of how easy it is to use. Crypto and DeFi first started as an intimidating sector, the exclusive domain of the tech-savvy. However, things have changed – we’re now seeing many platforms, such as AQRU, that allow investors to easily exchange their fiat into cryptocurrency and access the high yields available in DeFi.

While these platforms initially focused on retail investors, new solutions are also being designed to allow institutional investors to easily access the decentralised market, maintain close oversight over their investments, and remain compliant with any relevant regulatory and security requirements. 

Sky-high returns

For investors, one of the most appealing parts of decentralised finance is the yields. In DeFi there are no intermediaries between transactions, all of them take place peer-to-peer. By eliminating all the steps in-between, it means the lender can take almost all of the yield. 

To give an example, let’s compare it to a bank. A savings account with a bank returns 0.5% per year if people are lucky. The bank may well have made 10% on loaning customers’ money, but by the time they have covered their costs and taken their share, there’s not much left for the user. DeFi’s main cost is the upkeep of the website, which has attracted users looking to maximise their returns. 

The road ahead

The building blocks of DeFi are what has made the sector so popular. However, for DeFi to become a true competitor to traditional finance, it must reassure customers that their money is just as safe in DeFi as it is in a bank.

Over the last few years, there have been some high-profile incidents where online wallets, when external companies manage customers’ cryptocurrency for them online, have been hacked. Not to be deterred, the DeFi sector has developed innovative solutions to bolster anti-hacking protections and close weaknesses in the system’s code. Indeed, some DeFi platforms are now equipped with bank-grade security software, providing reassurance to DeFi users that their money is safe. 

Additionally, DeFi can improve investor and consumer confidence through regulation. This is not to say that any regulation would work – ill-thought-out rules would limit the sector and stifle innovation. Instead, governments should work closely with DeFi businesses to understand how regulation can be implemented in a way that does not compromise the system’s speed, efficiency or yields.

While the potential returns and simplicity of DeFi have enticed millions to join the sector, there is still some way before DeFi equals and exceeds traditional finance. As the sector works with regulators and develops innovative security solutions to reassure users that their money is safe in DeFi, we can expect consumers to become more confident and give DeFi a larger role – maybe 5-10% – in their investment portfolios. Traditional finance is outdated. DeFi is coming for it – it must be terrifying.

About the author: Philip Blows is the CEO of AQRU, an incubator specialising in decentralised finance. He has held management positions in FinTech and asset management for the last 15 years. At Moneycorp, he established an asset-management and trading division and established robust management systems to track business performance.  He was previously the Sales Director at Wealth Wizards, which is a UK-based robo-advice platform, and his first book, ‘The Money Triangle’, was published in 2020.

The only thing that stops a lot of people from getting into IT is a false belief that technological competence is something one cannot learn. But the truth is everyone can become a high-level IT professional with enough commitment.

1. Invest in good education

The number one decision everyone who thinks of getting into IT should make is whether or not to get a degree. An IT professional does not necessarily need one. There are easier and cheaper options available, such as IT certifications. But if you are after a long-term successful career and want to be considered for senior positions sometime in the future, it is still better to get a degree first.

Sure, four years is a long time. And not everyone is ready to embrace (or get back to) the challenges of student life. Tons of homework is hard even with reliable writing papers, and sleepless nights spent studying are not fun either. But a degree is a ticket to top-level positions and, unlike certification, it cannot expire.

2. Choose your speciality wisely

IT is an umbrella profession. No one can become a true professional without choosing what to specialise in. Even schools that offer IT education expect students to know what they are going to focus on in their careers. Sure, it is perfectly fine to change one’s speciality at some point down the road. But try to pick your initial one wisely.

At the moment, some of the most in-demand IT specialities include:

• Cybersecurity. Cybersecurity is a smart and very popular choice of specialisation at the moment. Good cybersecurity specialists are more sought-after than ever because of the global shift toward remote work.
• Data fabric. IT professionals who are competent in data management architecture are also in high demand. And they will remain so in the foreseeable future.
• Privacy-preserving computation. Top organisations are always on the quest for good privacy-enhancing specialists. It is a good alternative (or additional specialisation) to cybersecurity.
• Cloud-native. Cloud-native has been popular for a while. It is the approach that maximises speed and agility. So a skilled IT professional whose speciality is cloud-native will not be out of a job.

3. Learn the basics of everything beyond your speciality

At the same time, every professional should know at least the basics of what is happening in the IT industry beyond their speciality. It is impossible to be good at everything. But having some idea of how things work makes cooperation with other IT specialists easier. 

Employers often expect teamwork from candidates for IT positions. Knowing what the people you work with do helps mutual understanding a lot. No need to try to become a guru. But do not stop learning things once you have chosen your speciality.

This is why no IT certification can replace a full four-year college degree. It is unthinkable to cover everything there is to cover in several months. So college-educated IT professionals have the upper hand when it comes to outlook and versatility.

4. Get an in-demand IT certification

But IT certification can still open a lot of doors. And it is a nice addition to a degree, especially for people who graduated years ago and might be a little behind on what is going on in the IT labour market at the moment.

The key is to pick the right certification depending on one’s interests and career plans. Some of the most in-demand ones are certified data professionals, AWF certified cloud practitioners, certified cloud security professionals, and certified information security managers. But not all of them are a smart choice for a beginner. Keep your current skill level in mind.

5. Understand the relationship between what you do and business

Even outstanding IT professionals often lack understanding of the business side of their job. This can become a problem when they are applying for high-level positions. Sure, most employers are looking for someone exceptional at what they do. But they also want someone who knows why they are doing it (from the company’s perspective).

No one expects an IT specialist to be a business pro. So regardless of what organisation you work at now, talk to other people there and ask questions to understand at least the basics of major business processes. If nothing else, it will help during the next job interview. And it also tends to increase employee engagement.

6. Work on your soft skills

Finally, any professional, including an IT specialist, should never neglect their soft skills. There is a common misconception that people who work in IT need nothing except to be competent at what they do. This is not true. 

Sure, most IT professionals work with computers more than they do with people (and it is not even close). But they also need the same soft skills that everyone else does. Most major companies expect their IT employees to be team players, have decent communication skills, excel at time management, and handle conflict well.

Try to read on these topics and talk to Human Resource Development (HRD) professionals at your company. They can organise communication or conflict resolution training for employees. And, above everything, welcome feedback from your colleagues, even if it is not always positive.

Is all the hard work worth it?

It most definitely is, especially money-wise. A senior-level software engineer can expect to make about $200,000 a year; a computer network architect or an information systems manager can expect about $150,000. 

But there is basically no limit, especially for in-demand specialisations akin to cybersecurity. And thanks to how fast-paced and agile the IT environment is, it rarely gets boring. Anyone with enough dedication, willingness to learn, and genuine interest in how technology is changing the world can succeed in IT.

The fast transformation has significantly increased productivity, employee morale, customer satisfaction, and business operations. Today companies can link multiple departments and activities through a single portal. It's easy to operate primary tasks without significant knowledge or professionalism. Companies either hire or outsource IT practitioners in traditional business operations to create business applications.

Businesses that opt to buy off-shelf systems/applications must either adapt to the new system or change their operations. Hiring professionals is quite expensive, leading to many business failures. Today No-code software has introduced new advanced business processes that are easy to adapt and utilise.

No-code system

What is no-code? Why is it important? No-code system is a digital solution for many businesses globally. In layman's thinking, it's an adaptive system that turns basic users and employees into citizen developers. Anyone with basic IT knowledge can utilise no-code software to create significant business apps.

No-code is an advanced technology that helps businesses create applications without hand-coding or traditional coding. The system offers visual graphic features that require a drag and drop process to build an app. The process requires a few days or hours to develop a complete application. It's possible to utilise a single app for multiple tasks or departments.

No-code systems are easy to operate, unlike hand-coding, which needs IT, professionals, or programmers. The coding process is practical and uses visuals for simplicity. Companies should implement no-code platforms to enhance their business operations. This builds the employee's morale as they are involved in the creation process.

No-code systems are pretty involved as they offer the chance to customers to view their needs. Organisations willing to invest in no-code software should get feedback from customers before purchasing a no-code platform. Note each platform is developed with unique features to suit every business needs.

Essential features on no-code platforms

1. Drag and drop interface

The drag and drop feature is the core pillar that allows basic users to develop apps quickly. The feature requires citizen developers to drag and drop application features to create a business app. No hand coding or coding knowledge is necessary to operate the feature.

2. Data connections

No-code systems are designed with different features; some offer database and server systems while others don't. No-code system without the database system allows users to incorporate their preferred database. The no-code software helps in data management and will enable organisations to process their data efficiently.

3. Visual modelling

No-code software has visual graphics features preinstalled to help citizen developers build apps fast. Since the platform has all tools defined with clear images, no creation efforts are required.

4. Easy integration

Modern businesses can quickly implement no-code software on their systems. The software is designed to work with different business software without shifting the normal functionalities. Organisations need to review the type of no-code platform before purchasing or integrating with the existing system. Note each system is unique and provides different features according to business needs.

Benefits of no-code development platforms

1. It saves time and increases agility

Through the pre-installed features, no-code platforms are easy to operate. Citizen developers can create business apps within short durations. No-code systems are easily integrated with another system to offer automation. This saves time through automated tools and increases business agility. Employees get ample time to venture into new projects, which increases productivity.

2. Save resources/cost-effective

Seeking IT developers or coding professionals is quite challenging and costly, especially for startup businesses. Companies outsourced programmers to help in coding and building business applications in the past. A single application took months to develop; it was time-consuming and expensive. Today, businesses can utilise their in-house employees to build an application through no-code platforms. There is no extra cost in building or hiring experts for the development process.

3. Accommodative/collaborative

Both customers and companies have a fair share of no-code development platforms. The platform is inclusive, giving customers the chance to provide feedback. The organisation uses the information to develop an application that aligns with the needs. Basic IT users have the privilege to use advanced technology to build apps.

No-code accommodates all users besides their education level and skills. The visual modelling features are practical, giving citizen developers a chance to establish business apps. The software doesn't eliminate the need for IT professionals. However, it enhances the skills that they implement in the business. IT programmers can help with security details, creating a unique and safe application in the organisation.

4. Increase productivity

No-code increases agility, which in turn increases productivity. The automation process in most business tools helps businesses conduct more services without strain. The software helps increase revenue by allowing employees to utilise technology for their operations. This increases their morale, giving them a reason to produce more.

5. Easy to modify

Unlike traditional coding, which required users to build a new app for different tasks. The No-code system is easily modified to suit the current need. Organisations can use a single app for various services or departments. The developers can change the app anytime without altering business systems. The ease of modification reduces the need to build multiple apps for every task. The no-code platform modification process will require the drag and drop features to create the preferred application quickly.

Conclusion

No-code is the propelling power for many businesses today. The software offers quality features to suit every user regardless of IT knowledge. It's cost-effective, simple, and valuable for companies. No-code simplicity is accompanied by automation, thus improving business operations. Organisations need to invest in good no-code services to attain the best business results. It’s advisable to check on no-code features that align with every business aspect. 

Microsoft said that the $68.7 billion deal, which is the biggest in tech history, will “provide the building blocks for the metaverse.” It will see Microsoft become the world’s third-largest gaming company by revenue after China’s Tencent and Japan’s Sony. Following news of the Microsoft-Activision deal, Sony shares dropped 13%, while Activision shares skyrocketed. 

“Gaming is the most dynamic and exciting category in entertainment across all platforms today and will play a key role in the development of metaverse platforms,” commented Satya Nadella, chairman and CEO, Microsoft. “We’re investing deeply in world-class content, community and the cloud to usher in a new era of gaming that puts players and creators first and makes gaming safe, inclusive and accessible to all.”

The deal follows a challenging period for Activision Blizzard, which has been impacted by a string of allegations of sexual misconduct and discrimination. Since July, the video game company has fired over three dozen employees and has disciplined another 40 to address such claims.

Integrating an end-of-term tool in a robotic arm leads to having a more versatile robot that can execute several jobs on the production floor. The sort of EOAT integrated into the robot determines its applications. Industrial robotic end-effectors are critical components of every industrial robotic operation, and selecting the appropriate end-effector can make the difference between high productivity and relatively inefficient operations.

Things To Consider When Selecting The Most Appropriate Robot End-Effector

Usually, the approach of selecting the most appropriate robot end-effector entails conducting a thorough examination of the project or application required of the robotic arm. In most cases, companies employ the services of robotic system integrators to do the job because of their professional expertise and vast knowledge of various robotic applications.

Selecting the most appropriate end-effector is critical for achieving dependable and productive robotic performance. For an industrial robot to accomplish its jobs, the EOAT must handle the parts as swiftly and effectively as designed to do.

The incorrect EOAT can result in considerable downtime, which can negatively influence overall production. Robots that use the incorrect end-effector may break down or become too slow to keep up with current manufacturing lines, resulting in increased inefficiencies and high-cost repairs and maintenance and lower ROI for the company. 

Factors To Consider When Choosing A Robot End Effector

By putting the right EOAT, the robot can work as intended, resulting in increased production, more satisfied customers, higher sales, happy staff, and a quicker return on investment (ROI). Below are the factors to look for when choosing a robot end-effector.  

• The environment of robot end-effector operation

Before choosing your preferred EOAT, you should understand the operating environment. Deployment of most robotic-reliant part-handling systems is in two different types of industrial-manufacturing environments-assembly lines and warehouses, made up of body shops and press shops.

• Payloads/weight

It is extremely important to consider the payloads of the items that need moving when choosing a robot end-effector. When working in a setting where a robot must travel long distances, the weight of the end-effector is also crucial. For the EOAT to work effectively, it must be durable, feasible, and light enough to manage all the applications. It must withstand multiple cycles without breaking down to ensure that there are no slips, vibrations, or performance degradation. Material handling applications, for example, will assess the size and weight of an item when determining whether mechanical grippers or vacuum clamps are the most appropriate choice.

• Tooling length

The tooling length of the EOAT required to complete the necessary task will also influence the choice of your robot end-effector most appropriate for the job at hand. A robotic arm is most effective when it can cover the greatest distance. The goal here is to keep the right amount of offset load of the EOAT as low as possible. Keeping the robot end-effector tooling length as short as possible is preferable to reduce deflection, leading to improved automated rhythm and a more effective flow.

• Size and shape of the products

The size and shape of the items you require your EOAT to handle and transfer is a big element in your chosen approach. The shape, size, and fragility of components have varied constraints regarding the robotic tooling used to fabricate them.

• Cycle time

Another important factor to consider when choosing a robot end effector is its cycle time. A robot end-effector cycle time expressed in strokes per minute relates to the number of pieces stamped per minute in the Press Room. Industrial body shops use robot end effectors to complete parts by performing the movements or operations that the system can perform. A conventional transfer press, for example, operates at a rate of 15 to 22 strokes per minute. Increasing the efficiency of the system design can aid in the improvement of the strokes per minute rate.

• Ancillary components

You will also need to consider if the robot end-effector you choose needs any ancillary parts. The parts provide the EOAT with more versatility. Some of the most common axillary components are:

• Power clamps
• Grippers
• Magnets
• Vacuum cups
• Venturis

EOATs can perform a wide range of tasks in the automation industry. Still, to select the most appropriate device for your purposes, you must consider the products the robotic arm needs to handle, the speed at which it must transfer the goods from one place to the next, and even the amount of space available. It is also vital to consider the components the EOAT will handle- are they fragile, irregular shapes, or too large for the tool?

• Cost

Do not forget to consider your budget constraints when choosing your preferred robot end-effector. The cost of the EOAT will depend on several variables such as size, payload, and brand. Before you commit yourself, do some research on several options in the market and go for the one you can afford. However, you have to ensure that it is efficient.

Wrapping Up

A robot end-effector is a critical component of any industrial robot, especially modern collaborative robots. Robotics might not achieve their primary purpose of automating manual tasks to boost profitability without the required end-effectors. Therefore, it is critical to choose the most appropriate robot end-effector for a positive impact on the overall effectiveness of a robotic system. 

An effective robot end-effector will also ensure better operations at the company. If you do not know about the best EOAT to integrate with your industrial robot, collaborate with a robotic systems integrator that has extensive experience in your industry. The same integrator should also have vast knowledge and competence to select the most appropriate EOAT for your robotic applications.

“Over time, I hope that we are seen as a metaverse company and I want to anchor our work and our identity on what we’re building towards,” Zuckerberg told a virtual conference. “We’re now looking at and reporting on our business as two different segments, one for our family of apps, and one for our work on future platforms. And as part of this, it is time for us to adopt a new company brand to encompass everything that we do, to reflect who we are and what we hope to build.”

Following Zuckerberg’s announcement, “metaverse” has become an even bigger buzzword in tech, with plenty of investors now wanting a slice of it. But what exactly is the metaverse? And should you also consider investing in it?

What Is The Metaverse?

The metaverse is far from being a new concept. The term “metaverse” was coined by science fiction author Neal Stephenson in his 1992 novel Snow Crash. Stephenson used the term to mean a computer-generated universe, which is now understood as an immersive virtual world where people come together to play games and socialise but also to work. 

In a founder’s letter, Zuckerberg explained that the metaverse will be defined by “the feeling of presence.”

“In this future, you will be able to teleport instantly as a hologram to be at the office without a commute, at a concert with friends, or in your parents’ living room to catch up,” Zuckerberg said. “This will open up more opportunity no matter where you live. You’ll be able to spend more time on what matters to you, cut down time in traffic, and reduce your carbon footprint.” 

Metaverse users will be able to create avatars that resemble their real-world appearance, with Zuckerberg insisting that avatars will become as common as profile pictures on social media. As technology improves, people will be able to join the metaverse with increasing ease, simultaneously engaging with the physical and virtual in mixed reality. 

Metaverse Use Cases

While the use cases for the metaverse are essentially only limited by human creativity, some ideas make more business sense than others. Here are three common examples: 

Games: Gaming is held in close association with the metaverse and understandably so, with games such as Minecraft and Fortnite, as well as platforms such as Roblox, already offering a taste of the metaverse. However, in the coming years, games are set to become increasingly immersive, increasingly social, and increasingly interactive. 

Travel: There is huge potential for the metaverse to someday allow users to visit tourist destinations in multiplayer mode via telepresence, potentially making world travel more accessible for millions of people. 

Commerce: The metaverse would allow retailers to release products into games alongside their real-world product launches. Vice versa, metaverse users will likely design their own brands and products, which may then come to exist in the real world too. 

Metaverse Industry Outlook

Many believe that companies and investors alike cannot ignore the emerging online marketplace that is the metaverse, arguing that it would be a repeat of companies dismissing the emergence of the World Wide Web. Just like the World Wide Web, which now plays a monumental role in day-to-day life, the metaverse will create new marketplaces that mirror those of the physical world. 

The potential in this space is huge, with platforms such as Roblox already seeing significant success. However, the market is expected to double with ease over the next few years. According to ARK Invest, revenue from virtual worlds will compound 17% annually to $390 billion by 2025. Meanwhile, Bloomberg Intelligence predicts that the market opportunity for the metaverse could reach $800 billion by 2025.

Investing In Companies Engaged In The Metaverse

Investors may look to gain exposure by investing in companies that are actively working on metaverse applications, such as Meta Platforms (Facebook), Microsoft, and Roblox. 

• Meta Platforms: As Zuckerberg has made the world well-aware, Facebook is in full metaverse mode. Prior to their rebranding announcement, in mid-October, Facebook said it planned to hire 10,000 employees in Europe to build the “metaverse”, stating its construction would take place over five years. The company called its work in Europe an “exciting time” for European tech.
• Microsoft:  Microsoft CEO Satya Nadella has spoken about the concept of an “enterprise metaverse” which would enable the company to expand its dominance in the professional software market. 
• Roblox: As a global platform that brings people together through games, Roblox already embraces many metaverse aspects today with its own digital currency and the virtual social experiences that it enables. 

Metaverse ETFs

For investors who are struggling to decide which metaverse stock is best to invest in, an option worth considering is investing in the Round Ball Metaverse ETF (META). Launched in June 2021, META is the first index globally designed to track the metaverse’s performance and has already amassed $176 million in assets. The fund tracks the Ball Metaverse Index and invests in global public companies actively involved in the metaverse. 

The vast majority of META’s holdings are US equities (80%), with the rest spread between Asian countries such as China, Singapore, Japan, Taiwan. The three top holdings are NVIDIA (8.99%), Microsoft (7.26%), and Roblox (6.79%). Since starting out in June, META has risen by almost 3%.  

Summary

While the metaverse is by no means a new concept, Facebook’s recent push will spur further investments into the space. In the coming years, society is almost certain to dive deeper into a digital economy and virtual world, significantly altering life as we currently know it.  

This article does not constitute financial advice. The author and Universal Media Ltd. are not qualified financial advisers. All investments are made at the reader’s own risk.

The challenges of adjusting to the reopened economy have placed financial services under significant strain. Budget cuts, the great resignation and post-Brexit recruitment problems mean that many employees are spending disproportionate amounts of time grappling with mundane operational tasks to simply keep businesses afloat. Innovation and strategic planning run the risk of being left behind as energy is spent on resource-sapping back-office complications.

This stagnation can be costly - in more ways than one. A study has found that office workers in the accountancy, banking and finance sectors spend on average over three hours a day on manual, repetitive tasks which are not part of their primary job. As well as being slow and demoralising, such high levels of manual processing can lead to inconsistent results and financially damaging errors.

Tactical solutions are needed to ease the burden on teams and free up staff to focus on more challenging, qualitative endeavours. This is where automation comes in. By transforming monotonous work into streamlined automated processes, businesses can reduce costs, drive productivity and efficiency, and foster a happier workforce culture.

The need to automate

Rapidly accelerating digital transformation has created a wealth of opportunities for financial services. However, invoices still need to be processed and payrolls need to be generated. Currently, these day-to-day tasks form a significant chunk of employees’ time, adding to the pressure they are already under to juggle a variety of repetitive administrative processes. The use of innovative IT solutions to automate these tasks can offer precious time back to teams, allowing them to focus on the more stimulating, value-adding activities that drive business growth.

When it comes to time savings brought about by automation, the figures back up the promise PwC’s Finance Benchmarking Report found that automating finance tasks can save 30%-40% of the time spent on doing the same tasks manually. Not only does this point towards vast efficiency improvements, but it also suggests a reduction in costly instances of human error.

The benefits of automating mundane but necessary tasks can be transformative and empowering -both for employees and for the business itself. Crucially, it allows individuals to channel their energy into more creative and strategic tasks, where they can exercise their autonomy and problem-solving skills to achieve tangible results for the business. Reducing the time taken up by onerous administrative tasks will give employees more time to concentrate on the ‘bigger picture’ initiatives that are so vital to boosting revenue.

Finance departments across the country have been forced to downsize following the Covid-19 pandemic. As a result, many have accrued a formidable backlog of invoicing and payroll tasks – and are relying on much smaller teams to handle them. For these organisations, the use of streamlined automated technology to reduce the administrative burden can help them overcome a significant hurdle on the road to recovery. It is a strategy that will also safeguard them against human error and other internal administrative crises that can cause damaging financial loss. The high level of accuracy and efficiency that automation brings will prove a key factor in the future success of businesses across all sectors.

Long-term benefits

As financial companies vie to attract talent and remain competitive in a post-Covid world, it has never been a better time to embrace smart, expertise-driven IT solutions. A recovery informed by automation will allow businesses to get the most value from their workforce and avoid piling the pressure on overburdened employees to pick up mundane tasks.

It can also be an opportunity for businesses to transform their workplace culture. Employee satisfaction visibly manifests itself in greater productivity, innovation, commitment, and other tangible benefits to the business bottom line. As organisations look to differentiate themselves and retain employees, being able to reassign individuals to more creative, strategic, and value-adding tasks goes a long way to increasing staff morale and retention.

Clearly, tech has a major role to play in the survival of businesses beyond the pandemic. Automation is a versatile solution that can revolutionise the way financial organisations operate without the need for cumbersome, time-draining manual checks.