All beginnings are difficult. Studies show that, on average, nine out of ten start-ups fail (1), and the shark tank that is the financial industry isn’t exactly renowned for allowing tender start-up shoots to flourish. The risk of failure and the fierce competition should not, however, deter you from launching your own FinTech. Instead, you can learn from others’ mistakes. Anyone seeking to start a successful FinTech company should carefully examine why others fail and avoid making the same mistakes.

So how do FinTech entrepreneurs meet the demands of a competitive and turbulent market, while trying to make it out on top? Tobias Schreyer, Co-Founder of PPRO Group reveals for Finance Monthly.

1. Thoroughly analyse your market

The crux of any start-up is the business idea. The fact that an idea initially looks promising, however, is no guarantee that it will work in practice. The key here is for FinTech start-ups to begin analysing the market as early as possible to determine whether there is an appropriate and suitably large target audience for their business. By far the most common reason for the failure of a start-up is that there is no market for their idea. You must know the size of target market, what the competition is like, and what prices comparable products and services are fetching. Never ignore market analyses and align your business plan precisely with the results.

2. Secure your funding in advance

Even (and sometimes, particularly!) FinTech start-ups want to attract financial backing. As with any other start-up, the issue of funding is right at the top of every FinTech start-up’s list. This issue can be roughly divided into two sections. The first is self-explanatory and covers the considerations which should be part of a traditional business plan and the questions which should ideally be resolved before the company is founded. These include things like how much capital is needed, the outgoings expected, and the potential profits. This is where you should investigate loans for company founders or appropriate grants and subsidies. The second part of the funding issue is more FinTech-specific. As, in most cases, you will be competing with banks or other FinTechs with a lot more money, so attracting partners and potential investors early on in the process is important. You should look for people who are excited about your idea and ready to invest.

3. Always keep an eye on your finances, particularly post-launch

After the business idea, finances are the highest priority for any start-up, including FinTechs. This is a very broad subject. Not only should the company be liquid, it should also have a handle on accounting and taxes. Seemingly simple tasks like setting up a business bank account or applying for a company credit card can be a challenge initially. What if you have a business trip coming up, but your bank won’t give you a company credit card? What if it’s simply not available soon enough? Nowadays there are many clever financial products on the market which can also be used directly and easily by start-ups. Prepaid credit cards with associated online accounts are quick to set up, but are also secure and flexible to use. The centralised company account provides an overview of all expenses at all times, as well as the requisite flexibility when expenses arise. You must never lose sight of your company’s financial status. This may seem obvious, but failure to manage finances has spelt the downfall of many a start-up.

4. Determine the appropriate form of organisation for your company

Choosing the right legal form of organisation is an important decision for a new company, and one that start-ups need to consider very carefully. Although, once selected, the legal form is not set in stone, changing it later can involve some effort. The form of organisation defines the legal and taxation framework conditions for a company, so your choice must suit the needs of a FinTech start-up.

5. Apply for licenses and register in good time

Start-ups should focus much of their attention on their product offering and customers, but even the best product and customer service can be at risk if you don’t have a handle on your day-to-day business operations. Start-ups must perform a great many administrative tasks, including registering with the tax office, listing the company in the commercial register, accounting, sales tax, and more. But to add to that already extensive list, FinTech’s are also subject to additional regulatory pressures. The second Payment Service Directive (PSD2) will, for example, come into force at the beginning of 2018 and can mean major changes for providers of alternative payment methods. Any financial service which can make automated payments at an end-user’s request while collecting and transferring data must obtain a PSD2 licence from the national financial regulatory authority.

(1) forbes.com/sites/neilpatel/2015/01/16/90-of-startups-will-fail-heres-what-you-need-to-know-about-the-10/#915f29c66792

(2) cbinsights.com/blog/startup-failure-reasons-top

(3) crosscard.com/solution/crosscard-expense

Without a doubt, 2017 has been a rocky year for financial services; with political upheavals, economic uncertainty and planning for numerous regulatory changes coming into effect in 2018.

In 2017, Brexit was the talk of the town, with “uncertainty” a word bouncing around the finance sector. As such, the key focus was on the financial services industry crafting their post-Brexit strategy, namely how to continue having access to both EU and UK markets and in turn catering to their clients’ needs.

According to Brickendon, while political events will continue impacting financial services, including Brexit negotiations, next year digitalisation and data will dominate alongside Robotic Process Automation and Blockchain, making larger waves in the sector and paving the way for uncapped growth and innovation.

1. A Data Future. Access to it, and the ability to mine data, will be central to everything that happens in the future of financial services. Now that the data is loaded, and the toolsets are understood and available, 2018 will see it being used for operations and technology processes.
2. The Rise of Robots. Robotic Process Automation (RPA), which uses software robots or ‘bots’ to mimic human activity, has the potential to unlock yet more value by freeing up employees to focus on value-added work – ultimately transforming the way the financial services sector operates. In 2018, we will see how this will impact RegTech, data analytics and ultimately how organisations service their clients. A gamechanger for the industry will be the start of the processes to replace people with robotics and machine learning.
3. The Reality of Blockchain. The use of the distributed ledger technology will no longer be just hypothetical. The opportunities for financial services who invest in such technology are endless from reducing operational costs to improving efficiency.
4. Simplifying Digitalisation. Business is becoming more about the user experience. Automated user interfaces can go a long way to helping this and embracing digitalisation is key in making it happen. The upcoming year will be all about the simplification of processes and digitalisation.
5. The Changing Political Climate. Brexit will remain a buzzword and continue to make headlines. As more details of the UK’s departure from the EU become clear, we will see banks and institutions adapting accordingly. Many will have to keep a close eye on their strategy if they are to survive and thrive in 2018.
6. Banking Regulations. 2018 will be a turning point for financial regulation. Alongside General Data Protection Regulation (GDPR) and Markets in Financial Instruments Directive (MiFID II), the requirements for central clearing and the second Payments Services Directive (PSD2) will force significant changes to the banking environment, with the innovators and disrupters emerging as the winners.
7. FinTech Collaboration. One of the largest technology shakeups in banking in recent years has been the use of advanced data analytics techniques to catch rogue trading activities within banks. In 2018, banks will have to decide whether to service clients in house or through a third party to stay competitive.

(Source: Brickendon)

Research carried out by Altodigital has revealed that two third (66%) of SMB IT executives admit that that they have significant IT challenges within their business. In comparison, an overwhelming 97% of those IT bosses working in larger organisations indicated having ongoing issues, suggesting very different attitudes to technology between small and larger firms.

The research also explored the differing priorities of these two business types and found that ‘maintaining existing IT infrastructure’ was a top priority for 40% of corporates while 32% unsurprisingly outlining ‘security and compliance’ as a top concern. It was also interesting to note that 25% of respondents listed ‘finding skilled staff’ as a big worry.

In terms of SMB organisations, 26% of IT executives listed ‘security and compliance’ as a major concern while budgetary constraints was close behind with 23%, something that was scarcely acknowledged by corporate respondents.

The poll organised by the office technology solutions provider, Altodigital was formed of two individual studies, one that polled 100 IT decision makers from corporate UK companies with over 500 employees while the second survey included firms with less than 500 employees.

Alistair Millar, Group Marketing Manager at Altodigital said: “It is worrying that such a high proportion of SMB IT Executives feel they do not have any IT issues, because it is likely that they are missing a trick, especially when the issue or security and compliance is something that requires continual upgrades in technology.”

The survey also indicated cultural differences when it came to technology, with 58% of SMBs revealing that they simply didn’t see the need for a bring your own devices policy whereas 72% corporates listed it as a major concern. These contrasting opinions were also clear when it came to discussing print policies, an overwhelming 78% of SMB IT managers admitted that they had no policy in place while 57% of corporates said that they review their print strategy every year or less.

Within these results, a quarter of respondents in large firms said that their printing plan was reviewed more frequently than every six months and 15% reported once a year.

“It is very surprising to see that a large majority of SMBs fail to have a print policy in place because managed print services are widely known to provide benefits for both small and large enterprises. SMBs must consider what services might help improve business efficiency and productivity on a regular basis, this point is clearly understood by large corporations who regularly review operations such as their print strategy on a regular basis,” added Millar.

(Source: AltoDigital)

Using the website Numbeo to compare the prices of items from all over the world, giffgaff money has found the global destinations (and no-go zones) for anyone looking to save money.

Residents of London, New York, Paris and Amsterdam, look away now. Research into the world’s cheapest and most expensive countries has found that rent in Egypt is incredibly cheap, averaging at ­just £114 a month for a one-bed apartment in the city. Although you might feel a little better to know that a city centre apartment in Hong Kong would set you back £1,562 a month.

Categories used included every day and essential purchases including cars, rent and groceries which giffgaff have used to create maps and graphs to illustrate the vast cost gap in each category.

• Iceland, which consistently has one of the highest costs of living in the world, topped three categories: food and drink, groceries, and clothing and shoes.
• Switzerland also made several top-five appearances, proving most expensive for sports and leisure.
• Tunisia, on the other hand, was consistently one of the world’s cheapest countries and was found to have the cheapest food and drink in the world.

Rent

Living in a city apartment in Hong Kong is simply not possible for most of us, with a monthly rent average of an incredible £1,562 a month. Families hoping to live in the city centre will also face mind-blowing monthly costs, with a three-bed home stretching to £3,715 a month in rent.

Residents of London, New York, Paris and Amsterdam, look away now – rent in Egypt is incredibly cheap, averaging at ­just £114 a month for a one-bed apartment in the city. Families will also save, with a three-bed suburban home costing around £170 a month to rent.

Cars

Driving the picturesque landscape of Eastern European Georgia is a cheap affair, with a Volkswagen Golf priced around £12,072 (compared to £23,638 in the UK) and a Toyota Corolla coming in at just £13,621 (compared to £ 23,724 in the UK).

Singapore, on the other hand, is a pricey place for drivers, with a nippy Volkswagen Golf setting you back an eye-watering £88,474 – a massive £76,406 more than buying the same vehicle in Georgia.

For full results from the research, click here.

(Source: giffgaff)

Entering the property market has become an increasingly daunting task for many young people in today’s economic climate. As a result, many have looked to government-backed help in the form of help-to-buy schemes and ISAs to turn the dream of joining the property ladder into a reality.

The required deposit can then be saved with the help of high-interest ISAs.

Though purchasing through help-to-buy has become an increasingly feasible option, not all areas of the UK have equal opportunity. Credit experts TotallyMoney have investigated Britain’s best and worst districts, cities and regions to lay down roots utilising help-to-buy schemes.

We researched a number of factors in each district across the UK to determine a ranking, including the number of equity loans utilised in each region (per capita), the number of help-to-buy ISA property completions and the average amount left to pay after government help (based on average property prices). The research uses government data to compare every district of the UK, including Scotland, Wales and Northern Ireland, to generate the complete ordered list of help-to-buy hotspots.

Desirable Districts

Considering the ranking factors mentioned above, of the 388 government-defined regions in the UK, the top help-to buy hotspots were revealed to be:

1. Central Bedfordshire – The Eastern district came up trumps, with a high level of equity loans (1710) per capita, and 245 properties successfully bought using a help-to-buy ISA. The district beat out all competitors as the best place to purchase a property utilising help-to-buy in the UK.

2. Chorley – The Lancashire market town came in second position with a low average property cost (£182,818) making entering the property ladder through help-to-buy schemes more achievable. The district also boasts the lowest average minimum deposit from the top 5 districts (£9,141) and relatively high number of equity loans given out by the government per capita making property ownership more achievable for residents.

3. Cheshire West and Cheshire – The second area in the North West to appear among the top scoring districts, Cheshire West and Cheshire scored particularly highly in terms of the number of help-to-buy ISA property completions per capita where it came out top in the whole of the UK, with 495 residents purchasing homes utilising this scheme.

Help-To-Buy Cities

The research also accounts for the most populated UK cities and which of those offer the best options for buyers looking to utilise help-to-buy options. Of these, the most buyer-friendly cities were revealed to be:

1. Wakefield – Located in a prime spot between Leeds and York, Wakefield tops the UK’s most populated cities for help-to-buy hotspots. The city has one of the highest levels of help-to-buy ISA property completions, helping 610 residents purchase new homes between December 2015 and March 2017.

2. Hull – In second place, and securing Yorkshire as a true hotspot hotshot, the port city scored highly in equity loans per capita. Hull’s low average property cost (£134,452) means that the 5% deposit required is the cheapest of any city at just £6,722.

3. Salford – Home to MediaCityUK, Salford sits in bronze position with 437 residents successfully purchasing homes utilising the help-to-buy ISAs in recent times and a good level of equity loans per capita boosting its ranking.

Joe Gardiner, Head of Brand and Communications at TotallyMoney, said: “Today, entering the property ladder is increasingly being seen as a pipedream for many young people. But with the introduction of government help-to-buy schemes, this dream can become a realistic option. For those thinking of utilising these schemes, knowing where in the UK is the most help-to-buy friendly, and whether your local area is one of these hotspots, is of particular importance to allow buyers to make a responsible financial decision.”

The full ranked map of the UK’s help-to-buy hotspots can be explored here, or the infographic covering the best help-to-buy cities can be viewed here.

(Source: TotallyMoney)

Choosing a global location for your business can be a fraught one, especially if you don’t have insider knowledge about the country you are considering. There could be economic and political factors to take into account, so just how do you choose the best business destinations and locations to trade from? Here Irma Hunkeler, of Blue Glass, lists the 10 best business destinations you didn’t know about.

We have rounded up a list of some of the top destinations that businesses should look at worldwide, and the results may surprise you! As we move into an ever-expanding and connected global market there are now more places than ever to do business, whether you are setting up shop to trade, or if you are simply looking for a place to work digitally from your laptop. Here are the top 10 global business destinations that you should consider:

10. Canary Islands

Photo: Commons Wiki

The Canary Islands attracted more than 29,000 people related to the MICE (Meetings, Incentives, Conferences & Events) sector in 2015, thus generating a turnover of more than 31 million Euros. Tenerife in particular is a firm favourite and is an ideal spot for trade fairs, workshops, conferences and conventions due to its modern international airports, sunny climate and avant-garde conferencing facilities. Moreover, research from easyCar shows that these islands in Spain are among some of the most affordable destinations in Europe to hire a car, making them the perfect destination for business or pleasure.

9. Lisbon

Photo: Pixabay

Lisbon is fast becoming one of the most cosmopolitan places to be in business thanks to creatives who are reinforcing technology start-ups. Young entrepreneurs from all over Europe have been drawn to Lisbon to party, live and work, and the Portuguese capital hosted a large Web Summit in 2016, showing that it is the ideal setting to promote future trends in digital and technology.

8. Cape Town

Photo: Pixabay

Cape Town has recently established itself internationally as a competitive and sophisticated business events destination, and has been consistently voted the number one conference city in Africa and the Middle East. Companies such as Corinium Global Intelligence regularly run large scale C-suite level conferences and events in Cape Town, and the Cape Town International Convention Centre (CTICC) has secured a bid recently to host the 2022 International Congress on Immunology.

7. Bruges

Photo: Pixabay

Bruges is another great hidden business destination. Small though the city may be, it has been firmly pinned on the map as Europe’s leading capital of gastronomy, making it an excellent place to eat out. In 2020, a new convention and exhibition centre is due to be launched. This will boast a large exhibition space and a congress infrastructure for around 500 to 600 participants with a meeting space, breakout rooms and networking areas.

6. Malta

Photo: Pixabay

Malta is a greatly overlooked hidden gem in which to set up a business or host conferences and meetings. The 2017 Local Government Conference will take place in Valletta from 21-24 November. Plus, construction work has begun on the Malta branch of Crane Currency, a major banknote printing firm, which signals the single greatest investment by a manufacturing company on the island since the 1980s. More companies are sure to follow suit andshowcasw the island’s current investment power. Furthermore, Malta is noted for its healthy work-life balance, so it’s ideal for those looking for the best of both worlds.

Click next to see the top 5 business destinations you didn't know about

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Money laundering represents the fifth largest economy in the world and equates to 3% of global GDP.

Leading defence and security organisation, BAE Systems has set out six criminal types responsible for money laundering around the world, to help global businesses understand the motivations and modus operandi of criminals targeting their business. The company hopes to help businesses fight the significant threat posed by financial crime.

Accounting for almost $2trn each year[1], money laundering is having an increasingly devastating effect on societies around the world. The criminals behind money laundering are finding ever more sophisticated ways of disguising their activity. Research shows that money laundering activity has a significant impact on society as it drives up property prices and increases taxes and insurance premiums while also funding other criminal activity such as the drugs trade and international terrorism.

BAE Systems’ subject matter experts analysed customer data to identify the people most commonly involved in money laundering. They are:

1. The Source – White collar fraudsters and organised crime gangs making illegal profit from their crimes. As a result of operating outside the law they need their money ‘cleaned’ before it can be used.
2. The Leader – Leaders are clinging to power and stripping their country of wealth to line their own pockets. Their outcast status causes the Leader to resort to subterfuge to hide their funds and spend money on the things that keep them in power.
3. The Bystander – Bystanders don’t facilitate crime but are happy to turn a blind eye while their mysterious client lines their pockets.
4. The Watched – People on international watch lists who could either be corrupted or facilitate corruption for a price.
5. The Shark – Sharks enable crime by helping move illicit funds through the banking system, profiting themselves along the way.
6. The Shop Front – Legitimate-looking businesses that exist to launder money, catering specifically to criminals.

Rob Horton, Head of Financial Crime Solutions EMEA at BAE Systems said: “In today’s digital world, criminals are constantly exploring new ways to find and exploit loopholes in legitimate channels to make the proceeds of crime look like legal tender. But the real issue isn’t simply the illicit money, it’s the wider impact of these criminal acts. Money laundering keeps hospitals, schools and libraries from being built as the proceeds of crime contribute nothing to the public purse. Launderers are also bending the property market, pricing first time buyers out of many cities. And the profits of money laundering are the cause of organised crime across the world, from drug trafficking and gun smuggling, to fraud and modern slavery.

“The fight against money laundering needs a new era of collaboration between the financial services industry, government and technology and compliance specialists. Understanding the motivations and modus operandi of the people behind it is the critical first step. Businesses need to understand the enemies they face in order to successfully protect themselves against them.”

(Source: BAE Systems)

[1] https://www.unodc.org/unodc/en/frontpage/2011/October/illicit-money_-how-much-is-out-there.html

Interactive Investor, the online investment platform, has recently released its clients’ most traded investments, by number of trades, in September 2017.

Commenting on the results, Lee Wild, Head of Equity Strategy at Interactive Investor, said: “It was all about inflation, interest rates and tapering during September, so little wonder central banks dominated proceedings. US Federal Reserve chair Janet Yellen, who’ll begin slowly winding down the Fed’s $4.5 trillion balance sheet this month, prepped markets for a rate hike in December then another three in 2018.  Not to be left out, Bank of England governor Mark Carney turned hawk as inflation hit 2.9%, confirming that a first increase in UK borrowing costs for over a decade just got a whole lot closer.

“The obvious benefits of higher interest rates had the British pound up as much as 5% against the dollar and at a post-EU referendum high. Rate rises are typically good news for the banking sector, with lenders quicker to raise borrowing costs than they are to offer better deals to savers. It may not be great for consumers, but an improvement in bank margins should feed through to shareholders by way of bigger profits and dividends.

“It’s why investors’ favourite Lloyds Banking Group rallied 6% in September and remained the most popular blue-chip stock on the Interactive Investor platform last month. Vodafone blasted back into the Top Five. Apple’s launch of the iPhone 8 should get the tills ringing, and the fastest growing broadband operator in Europe offers an irresistible dividend yield of over 6%.

“As one would expect, there was plenty of excitement on AIM. Online fashion retailer Boohoo.com is a member of AIM’s exclusive ten-bagger club, but the shares are hardly cheap, so tweaking margin guidance lower in its half-year results gave traders a scare. So did joint-CEO Carol Kane’s decision to sell £10.7 million of Boohoo shares in the aftermath.

“However, a 25% plunge in the share price always looked harsh given aggressive growth forecasts. It’s why trading volume more than tripled in September and buyers outnumbered sellers two-to-one.

More spectacular, however, was the explosion in activity at Frontera Resources. There are 13.4 billion shares in issue worth less than a penny each, but the £100 million company is no tiddler. Frontera’s liquidity, typified by tight spreads, volatility and an intriguing story make it a firm favourite among small-cap investors. At the beginning of September, the shares were worth just 0.1125p, but before the month was out it was 0.782p, an increase of 595%.

“There’s real excitement around Frontera’s Ud-2 well in Georgia because it sits in the Mtsare Khevi gas complex, where experts estimate a potential recoverable resource of 5.8 trillion cubic feet of gas. Following a series of progress reports, the number of trades on the Interactive Investor platform swelled twelvefold in September versus the previous month.”

Rebecca O’Keeffe, Head of Investment at Interactive Investor, adds: “Yet again, the big active funds of Fundsmith Equity, Woodford Income and Lindsell Train Global occupy the top three spots, with our investors continuing to prefer active management in the current environment. With currencies driving markets and sector moves more pronounced, there is greater potential for active managers to add value.

“Although the top three are all active, passive funds remain relatively popular and Vanguard 100 muscled its way back into the Top Five, knocking out Jupiter India in the process. Vanguard have taken over as the preferred option for many clients, with 15 Vanguard funds in the Top 100 most bought funds year-to-date. The compound effect of lower fees is significant and over the long term this can add tens of thousands to your portfolio value, making low-cost tracker funds highly attractive for investors.”

(Source: Interactive Investor)

“The Minicorn Club is for FinTech start-ups that are aspiring and aiming to become Unicorns,” explained Jessica Williams, Event Manager of PayExpo Europe before adding “and there are many exciting new businesses in the payment sector that deserve recognition in this way.”

“Thousands of start-ups in this sector are jostling for position, chasing the right support, advice and exposure to build a competitive product, attract investment and achieve scale.

“Despite Brexit and its associated fallout, investment in UK FinTech start-ups has recovered and is on the rise with over half a billion dollars invested in the first half of 2017.  The opportunities are out there.”

Nine Minicorns in the payments sector will have the chance to demonstrate their talents and businesses at PayExpo Europe, taking place at ExCeL London on 4^th & 5^th October.

The Minicorn Club, which is sponsored by Addleshaw Goddard’s AG Elevate, is showcasing some of the brightest new companies that are competing to be the next Unicorn.

Alongside the exhibitors there is a dedicated networking area where investors and start-ups can meet. It is also an opportunity for start-ups to apply to join the AG Elevate Programme.

The nine Minicorns on show will be:

• Cashaa – a blockchain-powered forex platform
• Dualitybanx – a forex product for those who work with multiple currencies
• Know Your Customer - the world's only fully integrated platform that delivers rapid ID verification for both individual and corporate customers
• New Gen – a multi-channel e-commerce & international payment solutions provider
• ShieldPay - a payment service provider and instant digital escrow service that enables secure transactions and payments between consumers all over the world
• Tide - a bank specially for small business customers
• Trezeo - provides financial stability for self-employed workers in the gig economy by turning unpredictable income into regular payments
• Zensed - a truly automated fraud prevention system powered by artificial intelligence and advanced machine learning modelling
• 1partPet – GPS technology collars for finding cats and dogs

“Is the next $1 billion start-up among them? Why not come to find out?” concludes Jessica Williams.

(Source: PayExpo Europe Press Office)

The average British earner would have to work for a staggering 35,715 years to make a billion and join the world’s top tycoons, as revealed in a newly launched innovative tool.

Budget Insurance reveals a wealth of stats and facts about the world’s richest people, demonstrating how average UK workers stack up against top tycoons like Mark Zuckerberg and Bill Gates in ‘The World’s Richest: How Do They Compare?’.

Daydreaming about striking it rich or how many pay cheques it would take to save a life-changing financial sum is common. Discover how average British earners really compare to the world’s richest and take a deep dive into their traits, exploring comparisons over the last decade and even seeing how many years of hard graft are required to join that prestigious world rich list.

In its latest discovery piece, Budget Insurance reveals that a worker in the UK on the average wage of £28,000 would need to work roughly 35,715 years to make their first billion.

The results also reveal that the net worth of those gracing the rich list has increased by $26.88 billion (78%) over the last decade. The average net worth of the world’s current top 10 richest is $61.28 billion[1] whilst, in contrast, the average British person currently has a net worth of £147,134.[2]

The average worker’s net worth may not be as jaw-dropping as that of the world’s most affluent, but it is imperative for everyone to safeguard assets like health and the home by ensuring that the right insurance cover is in place. Yet despite the huge differences in assets between the world’s richest and the average worker, there are some surprising similarities. Government statistics indicate that 32% of Brits have two or more cars, much like the billionaires in the top 10, who typically own between two and three cars each.[3] However, a rough estimation of annual insurance of £575 for a 2017 Ford Focus pales into insignificance against the cost of insuring Bill Gates’ Porsche 911 Carrera at £2,794.52.[4]

Anna McEntee; Associate Director Consumer Marketing; Frontline at Budget Insurance, said: “It’s fascinating to hear how the other half lives. We imagine they probably all have an army of assistants to keep them on top of their household admin – but whether that’s the case or not, we’re sure it’s just as important to them as it is to us to ensure they have the right insurance to protect the things they hold dear.”

From net worth to hair colour, height to children, the piece compares the traits of today’s richest and pits them against data over the last decade.

What’s more, the insurance provider has delved into how much money the world’s richest have donated to charity, their Twitter followers and the number of times they’ve been married, amongst other personal traits like car and home ownership.

The 10 Richest People in the World 2017[5]

• Bill Gates
• Warren Buffett
• Jeff Bezos
• Amancio Ortega
• Mark Zuckerberg
• Carlos Slim
• Larry Ellison
• Charles Koch
• David Koch
• Michael Bloomberg

(Source: Budget Insurance)

[1] https://www.forbes.com/billionaires/list

[2] http://www.dailymail.co.uk/news/article-2574038/Average-British-person-net-worth-147-134-0-01-cent-David-Beckham.html

[3] https://www.gov.uk/government/statistics/road-use-statistics-2016

[4] https://www.comparethemarket.com/

[5] https://www.forbes.com/billionaires/list/

Bitcoin just hit the $5,000 mark, and the growth of blockchain is taking various sectors by storm, in particular that of currencies. In this article, Fraedom CIO Simon Raymer identifies five important points to consider when discussing the use of cryptocurrencies.

1 - Gaining a greater understanding

There remain many challenges ahead for the established financial services businesses before they can start to successfully embrace these new technologies, in general there remains today a low level of understanding of the impact, both perceived and real, of new cryptocurrencies.

Most discussions around cryptocurrencies are directed or based on the perception of bitcoin. There is generally a great deal of misunderstanding about bitcoin and blockchain, especially in the media where they are both hot topics.

However, many established financial services organisations have a mixed understanding of the impact both blockchain and cryptocurrencies can and will have on their businesses. The way decentralised transaction mediums and P2P are likely to reshape the way businesses interact with financial services (such as loans, or cross-border financial exchanges) is something of a grey area, as is how it will affect the way businesses pay or receive payment for their goods or services.

Other challenges businesses face in embracing cryptocurrencies include creating expensive innovation centres within existing teams. Moreover, gaining senior support to provide budgetary allowances to obtain subject experts who understand these technologies to educate and champion them within the organisation is a difficult task, as is supporting the technical entrepreneurs to use these technologies to find the right business opportunities to challenge the market with.

2 - The blockchain infrastructure

A Direct transactional P2P model does not typically use blockchain today, but with faster and more cost-effective processing as a by-product, it’s only a matter of time before its use becomes widespread.

That, in turn, will help drive further growth in already burgeoning cryptocurrencies, like bitcoin, ethereum and ripple. Almost every one of these new secure payment mechanisms uses blockchain as its underlying infrastructure, with its success in doing so raising prospects for the cryptocurrencies also.

3 - The chance to innovate

Established businesses who embrace blockchain and/or cryptocurrencies have great opportunities to drive innovation themselves in these areas. They have the chance not only to deliver both existing and new services to the market using new technology but also to bring their own established trusted brands to the table.

While a lot of consumers and businesses are willing to take a risk with a small start-up, many are hesitant to either try or commit at a large scale without the backing of a trusted established brand, and the sense of control, security and maturity that comes with that. This encapsulates the opportunity that established financial services businesses are likely to have by embracing these new technologies – but they must not delay too long. The success achieved already by P2P and cryptocurrencies, together with the growing number of start-ups using traditional financial services, acts as a warning shot to any established financial services business that they cannot ignore these new technologies and start-ups.

4 - The peer-to-peer boom

The use of peer-to-peer (P2P) transactions that bypass the banking channel is gathering pace. We see this especially in developing nations like India, where traditional banking and financial services are not as well established, and consumers and businesses are jumping directly to P2P transactions providers.

The saturation of smartphone devices has also driven growth and this usage is likely to grow further as apps become more widely accepted across the P2P delivery platform. Currently, the strongest growth of P2P is taking place in the B2C space but many new start-ups are embracing the P2P concept and trials are taking place using blockchain and P2P-based approaches

It’s true that the direct transactional P2P model does not typically use blockchain today, but with faster and more cost-effective processing as a by-product, it’s a matter of time before its use becomes widespread.

5 - Welcoming third party expertise

Third party technology providers with knowledge and understanding of how new technologies, not just limited to blockchain and cryptocurrencies, can best be taken advantage of to challenge and disrupt the market in the right way.

Traditional financial services providers need to tap into the experience and expertise of their peer group, the key providers in the marketplace. In addition, they need to tap into those in the industry who can help them to navigate these new technologies successfully, quickly and with less cost, than if they try to do it alone.

Below Finance Monthly hears from Rob Moore, Author of the new global best-seller ‘Money - know more, make more, give more’ and Life Leverage Host of the Disruptive Entrepreneur podcast, on his top 5 books about wealth accumulation, management and money.

“I’m an avid reader, especially around money and finances. Here are 5 great books I recommend out of more than 1,000 non-fiction ‘how-to’ books I’ve enjoyed in recent years:”

1. The Compound Effect - Darren Hardy  

2. 80/20 Principle - Richard Koch  

3. Naked Finance - David Meckin 

4. The Personal MBA - Josh Kaufman

5. The Intelligent Investor – Benjamin Graham