The importance of accurate financial information is underscored, whenever businesses seek additional capitalization, either from banking institutions or potential investors. However, business owners should understand that banks and other financial institutions base a great part of their decision on the results of the underwriting process.
What is Underwriting
Underwriting is a key function that is ever-present in the financial world, because it entails the assessment of risks posed by an individual or a business entity, either as a borrower or as an investment prospect. Although banking institutions and venture capitalists make funds available in exchange for fees, it is important for decision makers to know the degree of risks involved.
That way, in case the borrower fails to settle the loan or the entity fails to deliver the promised return on investment, the funds provider can recover, even in part, the amount loaned out or supplied as capital investment.
The Underwriting Process in the 21st Century
Business owners should have awareness that the underwriting process in the 21st Century no longer rely on simple financial reporting, even if supported by certifications issued by external auditors.
Lessons have been learned from the 2008 Financial Crisis, in which companies like Enron resorted to manipulating financial information, in covering up the fact that they had more debts than assets to present to banks and potential investors.
Through interconnected network systems, developers of technology built databases from which real-time data can be collected, analyzed and interpreted for report generation.
Now, providers of underwriting services use financial technologies that not only collect and analyze data for comparative analysis and financial projections. They now have AI-enhanced financial software that can also apply machine learning in establishing patterns. Such patterns or trends are useful in determining the accuracy of good or bad applications.
Some underwriting AIs have the capaability to link countless numbers of structured and unstructured data, which the machine can smartly transform into contextual data that can be used for accurate underwriting.
Since affiliate marketing is operated through website utilization with the help of internet connection, this industry entails various aspects of technology. Technology within the system or software apps are hardly needed to be able to run this business. Moreover, incorporating technology is also a way to build your business finance the right way. Below are some of the technological aspects that have great impact on affiliate marketing industry.
Commonly, this technological aspect is offered by committed solutions provider. However, an affiliate network provides this tracking system to large group of affiliate programs. There are even committed marketers who contribute, while some retailers are using their built-in solutions. Examples of it are the Amazon.com and Affiliate Institute where reviews are all good and even Deadline News mentions Affiliate Institute lately.
Mostly, cookies are benevolent and harmless. It should not have sensible information. However, cookies are often blocked by most software like the privacy or the antivirus software.
Cookies generally monitor lots of transactions with affiliate marketing industry. Looking back, Amazon was the first affiliate program that used cookies.
In order to avoid the blockage issues of cookies, the Flashed-based tracking (Adobe) was created. This tracking system utilizes the internal storage to carry out the same function to cookies. However, keep in mind that Flash cookies are more difficult to delete compared to the ordinary cookies. Moreover, the Flash cookies are prone to instill problems concerning the browsers. In case they are not capable of displaying the Flash, it simply means that they can destroy the process of the affiliate link.
The implementation of e-tag is grouped via the tracking approach system. Initially, it was the cookies, then the Adobe Flash Cookies, and the e-tag. Basically, e-tag is a set of data recorded in the cache of the web browser. It is commonly used by most of the affiliate networks and tracking systems nowadays.
One way to determine you via the online system is through your IP address. There are instances that many locations or ISP partake on similar IP address utilizing different units. This simply means that it is not as safe as it is. However, as an alternative and helpful backup, this one can be beneficial. In the case of affiliate tracking, IP addresses do not act to allocate commissions. Instead, its purpose is to identify frauds and non-compliant behavior.
This tracking mode permits affiliates to make commission over a long time period. Another way could be by producing constant relationship among client and their affiliate. The good thing about residual tracking is that it do not depend on cookies and any other tracking system.
Promotion specific tracking
Affiliate tracking using this mode is through offering of exclusive promotions and deals. But, these kind of promotions are applicable on just one partner. That’s why it is advisable to distribute every campaign activities to the affiliate partner. To do this, affiliate networks should be tracked.
Technology adoption is getting recognition as part of a senior adult’s preparation for the golden years. Baby boomers coming of age as present and future retirees are lucky, because they will be retreating into a world enhanced with technological advancements. Many innovators in technology have in fact devised gadgets and applications that aim to assist and empower senior citizens to independently manage life in retirement.
Becoming digitally connected has become a norm even among older adults. However, a 2017 Pew Research reported that smartphone use tends to drop significantly among seniors in their mid-70s and over. About 31% of retirees aged 75 to 79 years still own and use smartphones. The percentage drops to 17% among those aged 80 and beyond.
Since the UK government is planning to push retirement age to age 75 in the next 15 years, technology use during that period will become more important than ever. After all, that would be the stage when health and wellness issues become more pronounced.
There are now technological innovations that can help retired seniors manage typical old-age problems; such as lack of mobility, loss of memory, vision and/or hearing impairment as well as despondency. Although assistance from senior caregivers are often provided, adeptness in using basic technology when advancing to one’s sunset years will prove to be most helpful.
Ways Technology Adoption Can Help Senior Adults
Simple things such as sharing of medical data between senior patients and their health care provider through the Internet of Medical Things (IoMT), can address mobility issues that prevent seniors from seeking medical consultations.
Know-how in using smartphone applications can also help seniors live life in comfort during retirement. With or without caregiver assistance, older adults can monitor their medication, as well as their heart rate with the help of a phone app. In some cases, sudden memory loss may leave a retired adult stranded in an unfamiliar location. In knowing that family members or caregivers can track his or her whereabouts through a phone app, a lost senior will have no reason to experience pangs of anxiety attacks.
Basic smartphone features such as GPS and cameras prove useful in collecting and transmitting information vital to senior care. However, the costs of such gadgets and applications may not be as affordable to senior adults with minimal retirement money on hand. Some though managed to raise money by taking out loans through home equity schemes.
What is a Home Equity Release Facility
A home equity release facility is a type of loan available to older homeowners who are at least age 55. Based on the age of the borrower and the value of the owned property, a percentage of the equity value may be borrowed without having to worry about burdensome monthly payments. Settlement of the loan will come in due time, either when the senior borrower passes away, or when it becomes necessary for him or her to enter a nursing home.
Money that will be used as payment for the total amount due will come from the sale of the property. Any excess, between the proceeds of the sale and the home equity debt, will then form part of the estate that the senior borrower left behind to his beneficiaries or heirs. In the UK, a no-negative equity release guarantee, protects a borrower’s family from ending up with unpaid debts arising from a home equity mortgage.
A web tool called equity release calculator online can be used to determine the value of the amount that can be borrowed against a home equity.
How does one get into crypto and how can it be converted back to fiat? Answering these would be reliant on the needed or preferred currency, regulations that are location-specific as well as the exchange you plan to trade on. But, one option is to withdraw from Binance. Binance was established in 2017 and since then have become one of the biggest crypto exchanges in the globe. It frequently is commended for its low trading fees as well as its extensive range of available coins on the exchange.
A popular approach to trade cryptocurrencies is through decentralized exchanges as they are without the restrictions of bigger platforms that are centralized. This means that such exchange platforms permit users to buy and sell from each other crypto coins with no involvement or connection with a third-party or a middleman.
Advantages of Decentralized Crypto Exchange
Before users can trade, every decentralized crypto exchanges necessitate users to register or sign up for an account, but as soon as they do, they could almost instantly itemize cryptocurrencies to sell and/or buy other’s.
Many make use of a decentralize cryptocurrency exchange because of its advantages. Below are some:
Servers are Decentralized
Numerous decentralized crypto exchanges are hosted on servers that are decentralized as well. This denotes that each server isn’t fixed or positioned in only one location, instead they are spread out across the globe. Several servers could even be really and greatly decentralized by means of merely existing in the cloud. This manner of hosting could make exchanges much tougher to hack compared to exchanges that are hosted the traditional way. As a result, the funds as well as data of users are more protected and secured.
Isn’t Restricted by Law
Since it isn’t restricted to be situated in a single physical spot, decentralized exchanges are considerably difficult to regulate or shut down. For users of cryptocoins residing in places where digital currencies are prohibited, this could be good news.
Prior to be able to start trading, majority of decentralized exchanges do have need of an account creation. They allow users to create an account with whatever name they want with an approval process that’s little to none. This could undeniably be a disadvantage for governments as well as the sector of finance, however this feature is turning out to be more appealing to and favored by users who feel strongly about their privacy. Centralized exchanges also requires users to register but need to confirm the identity of the user by asking them to provide a number of government issued IDs.
Ownership and Responsibility
Every crypto funds stored in centralized exchanges are set on their exchanges wherein it could possibly put them susceptible and at risk to hackers. In contrast, cryptocurrencies in decentralized exchanges are frequently given ownership and responsibility to their users as they basically function as a platform for p2p trading.
Most people around the globe look into taking out a loan for different intents. Some loan for business startup or operation costs, some for educational purposes, for paying off debts, or for other personal use. At times, people take out a loan because of insufficient funds to settle expenditures that are unforeseen. The American Pride Legal Funding, for instance, offer loans for vehicular accident settlement. People do find such loans quite beneficial.
In fact, the market on personal loans has attained a record high in 2018, as the promising industry of financial technology has made financial services through mobile apps more convenient and accessible to consumers.
As per data by TransUnion and reported on CNBC, the market on personal loan has gone up to 138 billion US dollars in 2018, an increase of 17% year over year. Lending through fintech comprises 38% of personal loans altogether, an increase from only 5% in 2013. This indicates that fintech companies are growing.
By means of making use of innovative techs, companies of fintech are providing modified or tailored products that are low-cost, which brings about a considerable bearing on the increasing expectations of customers, together with the intensifying pressure on firms that are traditional.
The Department of Treasury of the United States issued a report in July wherein it states that over 3,300 companies of fintech began from 2010 to 2018 wherein investments in these fintech startups are speedily growing. Fintech companies’ worldwide investments in 2017 arrive at 22 billion US dollars. Fintech companies are the major mover of the growth of the market of personal loan.
Debt in the American Household
Many Americans are buried in debt, with increasingly more individuals incapable of settling them. Debt on student loan in 2018 arrived at a new high of 1.5 trillion US dollars; next to it is debt on auto loan at 1.1 trillion US dollars, and debt on credit card at 977 billion US dollars. As per Forbes, the average sum of debt that an American household has is 133,568 US dollars.
For individuals borrowing loans that are subprime, either due to poor credit score/history or low-income, the dangers are the greatest in the event of an economic crisis or collapse. As reported by TransUnion, these borrowers, who put their occupations or work hours on the line is likewise rising rapidly at 4.3% year over year.
The high utilization of mobile devices as well as solutions that are technology-based is driving the need for banking and financial solutions, wherein personal mobile devices are used to access such solutions. Because of this, financial institutions and companies are greatly capitalizing in solutions that are technology-based to measure up with modern companies of fintech.
A vast majority of worldwide banks, investment managers, as well as insurers are intending to collaborate and partner with companies of fintech through the next three to five years, and are expecting to have an average of 20% ROI on their ventures.
Whether its shopping for new clothes, buying a meal or coffee at your local café, or taking out a loan on lending platforms like www.xn--forbruksln-95a.com/, financial technology or popularly known as fintech is now universally used.
Fintech has been utilized and applied onto numerous of the latest developments in technology such as payment applications or gateways, lending platforms as well as digital currency.
Merging the newest developments in tech with financial applications and services, fintech has aided and assisted many companies and businesses to provide and deliver financial services that are better and more reliable to consumers and other businesses and companies as well.
What is Fintech?
A portmanteau of the words financial and technology, fintech is utilized to describe an industry incorporating and embracing the use of any form of technology for financial services or management, including applications for mobile payment, peer-to-peer platforms, insurance and investment as well as cryptocurrency to name some.
Fintech, in general, refers to any business or company making use of the internet, computer, mobile or other electronic devices, cloud or software technology to connect and carry out any financial services. Numerous products on fintech are intended to connect the finances of consumers with technology for convenience and ease of use and access, though the word is applied to technologies in the B2B sector as well.
Initially described as technology used in the back-end systems of financial institutions like banks, fintech are now more focused on the consumer. At present, because of the developments in fintech, managing finances, trading in stocks, paying for commodities via this technology is now possible.
As per data from 2016, individuals utilize one to three applications to manage their funds. And as per CNBC, in 2017 alone, investments on fintech shoot up to 18%.
Fintech also cater to the estimated 2 billion individuals without bank accounts globally by providing a smart alternative to take part in financial services that don’t need any brick-and-mortar. Through technology that is user-friendly, fintech then allows consumers to access directly their financial lives.
How is Fintech Used?
So how is fintech used? Here are few examples:
Platforms for Crowdfunding
Crowdfunding platforms permit users to either receive or send money to others. Moreover, these crowdfunding have given businesses as well as individuals to pool finance from a multiplicity of sources in the same platform. Rather than taking out a loan from a bank the traditional way, it is nowadays possible to directly reach out to investors for funding of a project or venture.
This generally refers to payment services done over a smartphone or mobile device and works under financial regulation. As an alternative to cash, credit cards or cheque, consumers could now make use of technologies on mobile payments to pay for an extensive array of services as well as commodities.
In 2019, the most widely used fintech technology that consumers use is budgeting apps wherein over the years has exponentially increased in popularity. There was a time when consumers had to make their own outline and template to manage and keep track of their finance. With fintech developing tools and apps for budgeting, with fintech, consumers could now effortlessly as well as efficiently manage and monitor their income, expenses and savings.
Peer-to-peer or P2P lending is the wonder of online lending created by platforms wherein borrowers are directly matched with lenders, such as the envestio review. It is quickly getting traction as well as expanding to more categories of new products since it grants a better experience. Moreover, it forwards the advantages of making use of technology to both borrowers and moneylenders.
Peer-to-peer lending has come to be a sector where the growth increase is quick and where billions are annually generated in loans.
P2P Lending Platforms
A platform for P2P lending that is successful has a good foundation, is flexible as well as an efficient technology that would surpass the expectations of both the borrower and the lender.
Typically, with regards to borrowing and lending money, the process involves a credit union or a banking institution; however the rising popularity of platforms for P2P lending is seeing several individuals do away with these traditional financers from the borrowing and lending process altogether.
Because of the advancements in technology, it made connecting through online platforms simpler and easier for businesses and/or individuals who are considering directly borrowing or lending money with one another.
P2P lending is an alternate for the traditional financing processes. Since it matches up individuals who or businesses that are considering borrowing or lending, it enables them to make arrangements directly between each other.
Platforms and/or websites offer a service that is intermediary wherein it does the matching between the borrowers and the lenders and borrowers. They also carry out relevant and reasonable steps for risk assessments as well as credit checks. Usually in these platforms, a certain fee is charged for the services they have rendered, which isn’t part of the final lending arrangement.
Pluses of P2P Lending Platforms
Numerous lenders are drawn towards peer-to-peer solutions because of the possibility for their investment to have a high rate of return. Typically, the estimated yearly rates could reach up to 6% (or even higher) in packages that are performing better. This potential becomes more attractive as compared to the rates that are normally offered by bigger banks with standard savings accounts.
On the other hand, lower interest rates are likely to be obtained for those looking into borrowing money via P2P lending platforms than traditional loans depending on the credit history of the borrower and risk factors.
Peer-to-peer platforms and solutions for borrowers and lenders are billed as something more responsive, transparent and efficient to manage as compared to banks, since they are unfettered by the bureaucracy as well as ageing technology that is the stamp of numerous institutions that are bigger.
Technology is the biggest trend influencing every industry today. In the world of financing, financial technology or fintech is among the biggest evidence of this generation’s technological revolution. Financial technology is beginning to revolutionize the financial industry, the same as the impact of the Internet in almost every industry. Need Money Now is just among the Financial Technology made available to small businesses.
What is FinTech?
FinTech (Financial technology) generally refers to any business that uses contemporary software and technological know-how to apply its groundbreaking work to financial services. Contrary to general knowledge, financial technology has been in development for 65 years, leading to the continued success of the industry in financial technology. Following the establishment of credit cards in the 50s, the industry began to hold a genuine part in the financial industry, and since then, the advancement of the fintech industry has improved rather quickly.
In 2008, although financial technology played an important part in our society, the financial crisis at that time was hugely attributed to the vast and intense expansion of the industry. Since the financial crisis, a large number of Americans have become angry with the banking system, creating doubt for banks in just about any country. Distrust on banks has eventually become worse when banks stopped lending following the recession. As a result, many people in the business arena and in practically all sectors were considering alternative and private lending institutions.
As the economy has at last rebounded, consumers are however cautious about binding financial institutions. Today, the financial technology industry is more trusted as a reliable source of funds and other services due to the urgent need to seek technology alternatives.
Today, more advances in the financial technology have taken place with the introduction of bitcoins or what has been known as cryptocurrency.
Financial Technology Loan Options
FinTech Mid Prime Loans
The most recognizable form of FinTech form of financing for small businesses is medium loans or mid prime lending. The price offered by FinTech’s medium-term loans is viable with a classic bank and SBA loans, however with less of the hassle that’s commonly linked with each kind of financial loan. Online FinTech lenders do not need to contact banks and provide a wide range of personal and business financial documents, but they can easily qualify applications in a matter of minutes and can provide funding very quickly (within a few days after an application had been approved). All this can be achieved with the least amount of documents that are traditionally required by the banks.
Invoice Factoring via FinTech
Financial technology invoice financing can be described as a means for small businesses to work with their 30-90 days unpaid invoices to get funding. The factoring company forwards a small amount of the invoice to a certain percentage of the invoice value less the fees after which forwards the final figure to the borrower after the invoice is settled.
Cash Advance Via FinTech
Cash advances through Fintech are not loans. However, it is the future earnings of a company sold to FinTech lenders in return for upfront funding. These future earnings are sold at a discounted price to the funder. Lenders associated with Fintech evaluate the cash flow of a company by taking a look at bank statements which includes credit card statements. This is for them to figure out the total deposits as well as the consistency of deposits.
After the FinTech funding company determines the maximum amount that a small business can easily manage, they are going to compute the amount of money the business could get depending on the repayment structure in 4 to 21 months. Following the financing of a small business, FinTech’s prepaid cash lender will receive a repayment every business day but some will collect weekly by means of ACH through the bank account of the small business or the percentage of daily credit card processing trades accumulated every day.
SBA loans are not generally linked to financial technology, but as a result advancements in many sectors of our society, specifically the financing industry, lenders can now qualify applications for SBA loans in just minutes and fund SBA loans at the quickest possible time, approximately 7-10 business days.
Technology has streamlined the SBA loan processes which allowed business owners to obtain bank financing within a time frame in line with competitive alternative lenders and actual investors. There are many forms of Fintech SBA loans. This includes lines of credit and term loans. Fintech SBA loans can be used as working capital, purchase of real estate investments, debt consolidation, business expansion, and much more.