Fintech Revolutionized Rather Than Disrupted Financial Service Industries

fintech innovatorsFinancial technology was initially introduced as a computerized back-end system that banks used as support in the processing of financial transactions. However, developers of financial technology or fintechs, as they came to be known, gave more focus on developing computerized financial processing systems to expedite the delivery of financial services and products to consumers.

Fintechs Were Initially Viewed as Disruptors

At first, fintechs were viewed as disruptions in the financial sector because they adversely affected the traditional operations of the banking industry. Yet in order to survive and thrive, banks and other financial institutions adopted innovative technological advancements provided by fintechs.

Doing so enabled them to offer online payment and investment solutions that were 10 times faster and more convenient than the conventional methods.

Collaboration Between Fintechs and Financial Services Industry

The newfound collaboration between fintechs and banks, insurance companies and users of e-commerce platforms, gave consumers access to user-friendly online banking systems and mobile applications that made it possible for them to make real-time payments, fund transfers, avail credit facilities, place investments, perform wealth management and other financial transactions.

data analyticsOn the other hand, banks and the industries that have adopted fintech solutions, were able to gain access to data analytics that gave them the capability to operate with increased efficiency.

Moreover, the powerful analytical tools that form part of fintech innovations provided users with valuable customer insights that helped them better understand their respective clients and their needs.

Neobanks : Entirely Digital Technology-Based Financial Services

Fintech innovations gave rise to neobanks that can render faster and more accurate financial services without the need to have a physical location like traditional banks. The concept and operations of neobanks first originated in Germany and the United Kingdom; providing mobile-first, digital financial services such as facilitating online payments, money transfers and loans, just to mention a few.
Operating entirely on digital technology supported by mobile phone applications, neobanks manage end-to-end client servicing and customer acquisition. A banking partner keeps and safeguards the funds of neobank customers, while also giving access to funds that the digital banks can offer as loans to clients.

Pros and Cons of Banking with Tech-Based Neobanks

While many regard neobanks as better than conventional banks, there are also concerns and constraints faced by neobank users.
As an innovative banking solution, neobanks’ automated services allow smoother and faster response time in the processing of financial transactions. At the same time, through the User Interface (UI) it eliminates the costs of having to personally and physically visit a traditional brick and mortar bank. Still, the downside of choosing to use neobanks to handle one’s financial transactions is the absence of a regulatory banking licence that ensures consumer protection. At the same time, arranging and processing financial transactions entirely online pose risks of encountering cyber attacks and vulnerability to system malfunctions.

Coin Futures and Technology: Exploring the Benefits and Challenges

Crypto trading

 

Coin futures, a type of financial derivative based on cryptocurrencies, have been gaining in popularity as the crypto market continues to grow. As the world of finance and technology continues to evolve, the use of coin futures (코인선물) has become increasingly relevant and has helped shape the future of technology in various ways. In this article, we will explore the benefits and challenges of coin futures in the context of technology and what it means for the future of finance.

Advantages of Coin Futures in Technology

One of the key benefits of coin futures is that they offer a means for investors to make predictions about the future value of cryptocurrencies without possessing the actual assets. This accessibility has made it simpler for traders and investors to engage in the crypto market, leading to an increase in liquidity and stability. The rise in liquidity has attracted more institutional investors and widespread recognition of cryptocurrencies, catalyzing innovation within the crypto and technology industries.

Another advantage of coin futures is that they provide a way for technology companies to raise capital and fund their growth. By using coin futures, tech companies can raise capital without having to issue traditional stocks or bonds, which can be a complex and time-consuming process. This has made it easier for technology companies to grow and expand, which has contributed to the development of new and innovative products and services in the tech space.

 

ALSO READ: Technological Integration In Business

 

Challenges of Coin Futures in Technology

Despite the many benefits of coin futures, there are also a number of challenges associated with their use in technology. One of the main challenges is the volatility of the crypto market, which can make it difficult for investors to manage their risks and achieve their investment goals. This volatility has also raised concerns over investor protection and market integrity, which has led to increased scrutiny and debates over how to regulate the crypto market.

Another challenge of coin futures is the lack of standardization in the crypto market. Unlike traditional financial markets, the crypto market is still largely unregulated, which has led to a patchwork of rules and regulations in different countries. This lack of standardization has made it difficult for technology companies to develop and launch products and services in the crypto space, which has stifled innovation and growth in the market.

Conclusion

The intersection of coin futures and technology is a complex and rapidly evolving area. As the crypto market continues to grow and mature, it is likely that the benefits and challenges of coin futures will continue to be an important topic of discussion. Whether coin futures will have a positive or negative impact on technology remains to be seen, but one thing is certain, they have helped to shape the future of finance and technology in new and exciting ways.

Tech-Driven Trading: Unleashing the Power of CFDs with a Strategic Broker

cfd trading excess broker

Trading is changing a lot because of technology. It’s like a big shift. Things are moving fast, and even a tiny moment can matter. Knowing how technology and trading work together is of utmost importance. Let’s dive into it and talk about a key player: Contracts for Difference (CFDs). These money tools, when used with a good broker, can change how investors deal with the ups and downs of financial markets. Work with experienced brokers distinguished in CFD trading. Broker-Breakdown can help you find the best Brokerage Options to maximize your full potential in the trading industry.

Riding the Technological Wave

In the heart of trading, technology is not merely a silent observer but an active participant. The fusion of algorithms, artificial intelligence, and real-time data feeds has birthed an era where speed is king. For traders, this means the ability to seize opportunities in the blink of an eye, and CFDs stand at the forefront of this revolution.

The Rise of CFDs

Contracts for Difference, or CFDs, are the trailblazers of modern trading. These financial derivatives allow investors to speculate on the price movements of various assets without owning the underlying asset. The magic happens in the contract itself, where the difference between the opening and closing prices is settled in cash. No need for ownership, storage, or cumbersome paperwork – just the pure essence of trading.

A Symphony of Technology and Trading: Finding the Right Broker

As technology takes center stage, the role of the broker becomes pivotal. Imagine technology as a finely tuned instrument, and the broker as the conductor orchestrating the melody of your trades. Let’s explore the key elements that define a strategic broker in this tech-driven trading landscape.

1. Cutting-Edge Trading Platforms

In the digital age, a broker’s trading platform is the gateway to the financial markets. The best brokers offer intuitive and robust platforms equipped with advanced charting tools, real-time data feeds, and seamless order execution. A user-friendly interface is not a luxury but a necessity, especially for those navigating the trading waters for the first time.

2. Risk Management Tools

Trading is not a gamble; it’s a calculated endeavor. A strategic broker provides risk management tools that empower traders to set stop-loss and take-profit orders, ensuring that losses are mitigated, and profits are secured. These tools, often integrated into the trading platform, are the guardian angels of prudent trading.

3. Educational Resources

Knowledge is power, especially in the world of finance. A broker committed to its clients’ success goes beyond the transactional aspect of trading. They provide educational resources, webinars, and market analyses to equip traders with the insights needed to make informed decisions. A symbiotic relationship emerges, where the success of the trader is intertwined with the success of the broker.

4. Responsive Customer Support

In the fast-paced world of trading, downtime is not an option. A strategic broker understands the value of responsive customer support. Whether it’s a technical glitch or a query about market conditions, knowing that assistance is just a click or call away instills confidence in traders navigating the unpredictable waves of financial markets.

5. Regulatory Compliance

Trust is the bedrock of the broker-trader relationship. A reliable broker operates within the bounds of regulatory frameworks, ensuring that your funds are secure and the playing field is level. Before embarking on your trading journey, it’s crucial to verify that your chosen broker is regulated by reputable authorities.

Amplifying the CFD Experience: A Synergy of Technology and Brokerage

The magic happens when CFDs and a strategic broker come together. It’s more than just a transaction; it’s a synergy that amplifies the benefits of CFD trading.

1. Leveraging Volatility with CFDs

The dynamic nature of financial markets often translates into volatility. CFDs thrive in this environment, allowing traders to profit from both rising and falling markets. The strategic broker ensures that you have the tools and resources to navigate these market fluctuations, turning volatility into opportunity.

2. Real-Time Market Access

Time is of the essence in trading, and CFDs, coupled with a tech-savvy broker, provide real-time market access. Whether it’s breaking news or sudden market shifts, the ability to act swiftly is a competitive advantage that can make a significant difference in the outcome of your trades.

3. Diversification Made Easy

CFDs offer a diverse array of assets, from stocks and indices to commodities and cryptocurrencies. A strategic broker facilitates seamless diversification, allowing you to spread your risk across different markets. This, coupled with advanced trading tools, empowers you to craft a well-balanced and diversified portfolio.

4. Harnessing the Power of Automation

Algorithms and automation are the secret weapons of modern trading. A strategic broker integrates algorithmic trading options, enabling you to execute predefined strategies without constant manual intervention. This not only saves time but also ensures disciplined and emotion-free trading.

5. Continuous Learning and Adaptation

The financial markets are a living organism, constantly evolving. A strategic broker recognizes the importance of continuous learning and adaptation. Through regular market updates, educational resources, and a finger on the pulse of technological advancements, they empower you to stay ahead of the curve.

READ ALSO: Neobanks : Entirely Digital Technology-Based Financial Services

Conclusion: Navigating the Future of Trading

In the symphony of tech-driven trading, where algorithms hum, and data flows like music, the role of a strategic broker cannot be overstated. Contracts for Difference (CFDs) emerge as the protagonists in this narrative, offering a canvas for traders to paint their financial success. As you embark on this exhilarating journey, remember that the right broker is not just a facilitator; they are your companion, guiding you through the complexities of modern markets.

Embrace the power of technology, leverage the versatility of CFDs, and choose your broker wisely. The future of trading is dynamic, and with the right tools and a strategic broker by your side, you are well-equipped to navigate its twists and turns.

Basics Of Financial Responsibility

 

 

The concept of being financially responsible has taken off. “You need to be more financially responsible!” is a phrase that is frequently used, but what does it actually mean? How do you accomplish this?

Financial responsibility can take many different forms for various people. There are many aspects of your personal financial responsibility, and even more tools are available to support you in achieving it. Here are some tips to secure your Financial Responsibility Insurance Certificate in Texas.

 

The Top 5 Financial Responsibility Tips

 

When you look at how much debt the average Citizen has, it’s clear that staying on top of your finances is easier said than done.

 

It’s crucial to start modestly so you can make progress gradually. Making tiny lifestyle changes will increase your likelihood of sticking with them over time, and maintaining financial responsibility is as long-term as it gets.

Here are a few quick ideas you may use right away to enhance your financial behavior.

 

Think ahead

 

As you move through different phases of life, circumstances change. A father of two has very different financial needs than a student living on campus!

While you’re at one stage, it doesn’t hurt to keep looking ahead!When you don’t prepare, you prepare to fail, as the saying goes. It’s more challenging to succeed if you don’t make financial plans in advance.

So how does this appear? You must keep your future demands in mind while you make current financial decisions.

 

Pose inquiries

 

No matter your age, there’s no need to be an complete expert at handling money! Make sure to inquire about it since individuals must continually learn new things.

How much of your earnings ought to be put aside? What kind of account should emergency funds be placed in? How much should you invest in your children’s RESPs? All of these are crucial inquiries to ask when it comes to money, and the more you ask, the more you’ll learn.

 

Set a budget.

 

Being fiscally responsible doesn’t mean you have to avoid going out to eat, taking trips, or making large purchases; it just means saving money wisely so you can do so without maxing out your credit card.

You might feel more in control of your money by making a budget and saving for those enjoyable purchases. Here are some easy steps to help you establish your own budget if you don’t know where to begin.

 

Moreover, be able to maintain a budget.

 

A budget is only as effective as your commitment to following it. You’ll be much more successful if you know how to stick to a budget.

Making a budget, on the other hand, is probably the simplest step.Your plan is your budget. Maintaining it is really acting in the direction of greater financial responsibility.

Use credit cards wisely.

 

The use of credit cards has a drawback. They have the potential to be excellent financial tools when used sensibly.

Credit card debt may be catastrophic if handled carelessly.

 

Conclusion

 

Financial responsibility is a lifelong endeavor, much like getting in shape or picking up a new skill. It requires effort, and the more you practice, the more proficient you’ll get. Your budget may have a bumpy start, but things get better.

So keep going! Although it can be challenging at first, financial responsibility is always worthwhile.

How Technologies Make Trading Websites Easier to Navigate?

When it comes to trading, things can get a bit overwhelming. There are different markets, different brokerages and many other factors that all need to be taken into consideration.

Thankfully, there are also a number of technologies available that make trading simpler. With the right tools, traders can find the information they need much faster and with less stress.

From artificial intelligence and virtual assistants to voice-based searching and natural language processing, here’s how technology can make trading websites easier to navigate.

AI Helps Find the Right Information Fast

Artificial intelligence is a key feature of many trading websites today. An AI system can quickly gather a great deal of information about the market and specific assets, which can make it easier for traders to find the data they need.

An AI system works to find the optimal data on the fly. It can identify the data you need and then gather it quickly and efficiently. This makes it simpler to find and collect the data you need with less effort.

Virtual Assistants Make Research Easy

With a virtual assistant (VA), you can configure your search to bring you only the information you need. You can customize your VA to search for specific types of data, including news, charts, stock prices and more. 

VAs can also be programmed to offer alerts in certain situations. For example, you can set up the system so that you receive an alert when a specific stock hits a certain price. VAs can find and gather data from multiple sources at once.

This can make research easier, especially when you’re dealing with a large number of assets. In addition to that, VAs can be programmed to offer translations. Through this service, it enables you to easily find information you need. The best part, it doesn’t matter regardless of what your location is. VAs can make it happen. Software technologies can also help you in your research about the forex prop firm e8 funding.

Natural Language Processing Makes Data Understanding Easier

Natural language processing is another technology that can be found on many trading websites today. NLP is a technology that makes it easier to understand the data you find. It helps you to understand graphs and charts, as well as other types of data.

NLP works by converting the data you find into a more readable format. It helps to simplify and organize the data, making it easier to understand.

3 Must-Have Technology Tools for Selling Subprime Auto Leads

The subprime auto lending market is booming. In fact, the subprime auto loan market is estimated to reach a multibillion dollar industry. With strong demand for subprime auto loans at an all-time high, it’s the perfect time to start thinking about whether you could take advantage of this opportunity to expand your business.

With that said, if you’re confident that your financial situation is safe enough to take on some additional risk and operate in the subprime auto lending space, here are 3 technology tools that you should consider using if you’re serious about selling subprime auto leads:

Online Lead Platform

If there’s one thing that you should always buy upfront before you start selling subprime auto leads, then it would be none other than a lead generation platform. After all, lead generation is the backbone of your entire business. Needless to say, the more subprime auto leads you generate, the more cars you can sell and the more money you can make.

Failing to invest in a lead generation platform, it’s a certain fact that your business will suffer. It won’t generate any leads, let alone subprime leads. So make sure to invest in a lead generation platform that can help you generate a steady stream of leads, including subprime auto leads.

CRM Software

If you’ve ever worked in sales before, you know that a CRM (customer relationship management) software is absolutely essential for scaling your sales team. After all, a CRM software is the cornerstone of any good sales process, helping you track and manage leads, organize sales activities, forecast future profits and much more.

With a subprime auto lead business, a CRM software is absolutely essential. After all, if you want to track your leads and forecast the future value of your business, you’ll need a CRM software to do so.

Data Analysis Tools

Another key aspect of any good sales process is being able to analyze data and draw insights from it. After all, data analysis is the only way to truly understand your leads, your sales process and your sales team.

However, if you’re selling subprime auto leads, you probably don’t have the time or resources to invest in building a complex data analysis platform from the ground up. Instead, it’s much smarter to find a data analysis tool that can help you streamline your data analysis process, without taking countless hours and financial resources.

Must-Have Technologies to Use to Pay Loans Faster 

Did you know that the average time it takes for a small business to pay its vendors is 60 days? Not only does that put strain on cash flow, but it also means paying loans faster if you want to reinvest your profits sooner.

If you got a guide on getting your own USDA mortgage and it’s now time for you to pay, there are many technologies that can help you pay faster and reinvest sooner. Here are technologies to help you do just that.

Automated Accounting and Reconciliation

If you’re using a software to manage your accounting, you can have it automatically perform reconciliations for you. You can have it automatically track the payments that you’ve received and the bills that you owe. That way, once you have all of your payments and bills in one place, it’s much easier to pay loans faster.

You can also have your software automatically suggest a payment date. That’s helpful if you have multiple bills or loans and need to pay them all off in a certain time frame.

Cloud-based Software for Faster Payments

There are two main types of accounting software: on-premise and cloud-based. On-premise accounting software is installed on your computer. Cloud-based accounting software is hosted online and accessed through an app on your phone or computer.

Most accounting software providers have both on-premise and cloud-based software. The advantage of cloud-based accounting software is that it’s typically easier to use, cheaper, and comes with extra features.

Electronic Invoicing and Digital Ledgers

Another technology that can help you pay loans off faster is electronic invoicing. While you’re working with vendors, get them to switch to electronic invoicing, as it’ll make accounting and payments easier. This will also help you track your expenses.

A digital ledger is a technology that’s used to record and manage assets and financial transactions. It’s a cloud-based software that allows you to keep track of your financial transactions and assets. It allows you to track the flow of cash in and out of your business more accurately and efficiently.

Organizational Changes for Fast Payments

If you’re already using technology to manage your accounting and payments, there are some organizational changes you can make to speed up payments even more. Here are some ideas:

  • Keep a ledger of all your bills.
  • Automate your reminders to pay bills.
  • Organize your bills by due date.
  • Make a payment schedule.

Wells Fargo Revamped Robo-Advisor to Attract Millennial Investors

Wells Fargo, a community-based financial company has revamped its Intuitive Investor by making its features and services attractive to millennial customers. Whereas before, the automated investing platform was available to WF customers who have at least $5,000 to invest on the options presented in the platform’s professionally curated portfolios, the minimum has been reduced to $500.

The Intuitive Investor is a robo-advisor that renders automated management of investment portfolios, which largely follows the principles of Modern Portfolio Theory (MPT). Although robo-advisors provide automated services, customers can ask guidance from Wells Fargo Financial Advisors. They are real time advisors who will answer questions and provide assistance by phone from 8 a.m. to 8 p.m. ET from Monday to Friday.

How Does the WF Intuitive Investor Robo-Advisor Work?

After asking users some questions, the robo-advisor presents a suggested portfolio. If the user decides to invest on any of the options presented, the smart technology on which the Intuitive Investor is built, will automatically keep track of the user’s account on a daily basis. At the same time, the AI is capable of rebalancing the account assets when necessary.

The relaunched robo advisory platform now includes sustainability-focused investment choices to which environmentally and socially conscious millennials consider as sound investment portfolios.
Wells Fargo’s Intuitive Investor charges a 0.35% annual advisory fee plus the related cost of funding expenses.
The Head of Digital for Wells Fargo Consumers Michelle Moore, described the revamped robo-advisor as a simplified version of the Intuitive Investor platform, as it aims to provide a better and faster experience for both experienced and neophyte investors.
The relaunched robo-advisor still offers sophisticated features such as the smart beta portfolios and tax-loss harvesting. However, those are advanced features available to premium Intuitive Investor users at extra costs.

Thousands of Businesses Are Affected By Technological Advancements

Technological innovations are changing the way countless companies work. It is customers in various sectors who benefit from these mostly customer-oriented developments. Today there are alarm systems that can detect toxic substances, medical devices that can save lives, and computer software that operates important health tools. The use of technology has brought about many changes in the financial sector in recent years. The ‘Global FinTech Report 2017’ by consultancy organization PwC shows that 77 percent of financial institutions want to invest more in innovation. In doing so, these companies aim to embrace the disruptive characteristics of FinTech. The underlying research shows that FinTech companies are a popular alternative for customers in making payments, transferring money, and taking out loans through alternative financing. In other areas, such as insurance and asset management, FinTech companies are less popular, but growth opportunities are certainly not ruled out. Specific areas where FinTech is most likely to disrupt and improve the customer journey are customer service, online banking, and fraud detection.

In cases of fraud, you can discuss matters with tested lawyers like those enlisted with LA Century Law. Understand your rights and what you can do in cases of fraud detection.

Customer service

 

Perhaps the biggest change in the financial sector as a result of the rise of FinTech is visible in customer service. In the past, it was essential for any financial services provider to have a strong customer service team on hand. After all, this industry is all about money and as soon as mistakes are made, they have to be solved quickly. Emotions can also run high in financial matters. So it was essential to have well-trained staff. Today this is different. Chatbots are developing rapidly and are already getting along well with customers. Algorithms based on artificial intelligence are trained and then learn on their own without further human intervention. Over time, the robot gets better and better, until it becomes indistinguishable from a human. There are already several videos online from Google, among others, showing how a robot performs human actions. Like a robot ordering a pizza over the phone, while the person on the other end of the line does not realize that he is communicating with a robot. An AI algorithm may not have human characteristics such as emotions, but why pay people when robots can do the work for free?

Online banking

 

In the past, banking was an activity that took place offline. Consumers went into town to withdraw money, make transfers and arrange financial matters at their bank. It was normal to talk to ‘real people in a ‘real’ shop. After all, it was about money. So this must be done safely, they thought. Nowadays it is still very exceptionally necessary to go to the bank branch. Most people born in this century have never been to a branch of a bank anyway. Because why would you? With an app, you can easily transfer money, view your balance, trade on the stock exchange and make bill payments. These developments could disrupt traditional banks. And if banks do not go along with this transition, they run a great risk. If you still have to go to the bank branch at bank X to open an account, but you can do this at home from the bank at FinTech start-up Y, the choice is easily made.

Fraud Detection

 

Investigating and identifying fraud has traditionally been a collaboration between man and machine. The computer helped identify potentially fraudulent practices, but in the end, it was a trained employee who made the decision and checked everything by hand. Artificial intelligence, however, is developing so quickly that it goes beyond the capacity of humans – and can therefore detect and prevent fraud completely independently. An AI-powered system can view a customer’s credit history and determine whether a transaction fits or not. It can then be seen as fraud and action can also be taken in the form of blocking transactions or warning the customer. This can all be done faster and more efficiently than if an employee does this, which obviously saves costs. All in all, these are just a few areas where technology can profoundly impact the financial sector. The main form of disruption is therefore also progression. This progress means that the existing people and processes are gradually becoming redundant and need to be replaced. This is a long-term development and it could be years before people really become redundant in the financial sector. But it is clear that many employees of traditional banks fear for their jobs. However, it has been clear for a long time that technology is developing towards a tipping point where technology is more efficient than the people who developed the system. This point is getting closer and closer as machines become smarter, faster, and less error-prone.

Singapore’s Monetary Authority to Begin Work on Payments Linkage with Malaysia

Last week, The Monetary Authority of Singapore announced of government plans of pursuing a phased linkage of its PayNow payment systems with Malaysia’s DuitNow.

Once the first phase of linkage achieves completion the linked payment systems between the two countries will enable participating financial institutions to offer customers, real-time fund transfer services between Singapore and Malaysia using their mobile number. Moreover, the linkage will also let customers make retail purchases and pay for them using the DuitNow or NRTS QR codes displayed by participating stores.

In July of this year, Singapore’s Bank for International Settlements and the Monetary Authority of Singapore revealed the plan as well issued a set of guidelines specifically pertaining to multilateral linking of domestic real-time payment systems beyond and across borders.

The Singapore-Malaysia Payment Systems Linkage is Actually Part of a Greater Plan

 

 

The greater significance of linking the two payment systems is the enhancement of seamless fund transfers of large amounts of remittances between the two countries, which even reached $1.3 billion last year. The linkage comes just after the successful completion of a similar project involving The Reserve Bank of India’s Unified Payment Interface. Fund transfers between customers in Singapore and India are now more affordable since the reciprocity eliminates the need to process transactions using a third party payment system.

The project has been named Project Nexus, as it envisions the creation of “Nexus Gateways.” The goal is to synchronize all compliance, message translations, sequencing of payments, and foreign exchange conversion of all participating financial institutions. The project also includes the tie-up between Thailand’s PromptPay and Singapore’s PayNow that was launched last April 2021.

Trading Robot – Automated Stock And Futures Exchange

Robot Trading. Many day traders who trade a precisely defined strategy every day soon want to automate trading. There are many trading platforms on the market that allow the creation of trading robots. The most popular of these are available for free and allows you to trade CFDs and Forex.

However, many underestimate the complexity of programming and properly testing these automatic trading systems. In this article we look at the trading algorithm and testing of these trading robots as part of growing technology and its impact on trading.

Read also: The Impact of Technology on Stocl Trading

This article is the beginning of a series of texts and videos on the implementation of automatic trading ideas in day trading. Articles on the topics of backtests, tips & tricks for programming, the definition of trading strategies, and others are planned.

The trading algorithm

An algorithm is a clear rule for solving a problem, in this case, a precise definition for buying, selling, and determining position sizing in stock exchange trading. It is the basis for every trading robot and assumes that a trading strategy can be precisely described and defined. Things like “the chart actually looks short” or “my gut feeling tells me to exit the trade now” are not enough. The algorithm defines how the trading idea on which the robot is based is implemented in detail. Trading ideas can relate to the evaluation of one or more indicators or take advantage of market behavior ( breakouts from consolidation zones, gap closings, etc.).

A well-defined set of instructions needs at least:

  • Rules for entering a position
  • Rules for exiting a position
  • Rules for choosing position size – an often underestimated part of the strategy

Defining these rules forces you as a day trader to think carefully about the elements of your strategy and write them down. You should have already done this in your trading plan if you have been trading this method manually up to now!

Testing trading systems

Almost all robots have a set of parameters that can be used to influence trading. These can be, for example, settings for the stop-loss limit, the period length of a moving average indicator, or the position size. Testing trading programs with historical data to optimize these parameters is called “backtesting”. The English term has also become common in German literature on the subject, and this applies to almost all terms in this context. Some programs, such as the Metatrader program presented below, offer the option of automatically optimizing the input parameters.

You will often find that a successfully tested robot with fresh current data (“forward test”) fails. The problem goes back to the over-optimization of the parameters on the old data, the so-called “curve fitting”. The parameters are then precisely adapted to the test data and only earn money in this previous period. Example: If you find that your system makes money with a moving average length of 11.15 and 17 but loses money with 12.13.14 etc., then the system is not robust enough for live trading.

When calculating performance, you should also exclude random hits, as these can distort the track record and create unrealistic expectations of the system. There is a separate article on this with a simple method.

Testing and evaluating trading systems is a complex activity. The subject is so extensive that books have already been written about it. That is why we can only give initial general information here in this article, but we are planning further articles on this.

At this point, a warning about a stumbling block brings down many system developers. Many developers try to stick to a losing system because they put a lot of effort into design and implementation. Be honest with yourself! It hurts to retire a system you’ve been writing on for weeks. However, it’s still better than losing money all the time.

 

Video-ID Interview Engine Deemed as an Excellent Onboarding Tool for EU

A live video interview when onboarding a new customer, using a new Video-ID technology is deemed as the best method of carrying out ID verification processes. In the European region to which the EU Commission prescribes stringent Know-Your-Customer (KYC) processes, tech innovator HooYu recently launched its Video-ID engine in Germany and Spain.

What is a Video-ID Engine

HooYu’s Video-ID is a program that enables an agent or representative to conduct a live video interview with an onboarding customer via a web browser, whilst simultaneously performing facial biometrics and real-time detection of identification cards and documents like passports and residence permits.

The use of this HooYu product is regarded as a worthy and sound alternative to carrying out ID-verification by asking a customer to download an application just for the purpose of participating in a provider’s ID-verification requirement. The latter method creates a poor user experience that increases the possibility of customers abandoning the onboarding journey altogether.

How Does HooYu’s Video ID Improve Customer Onboarding Experience?

Aside from eliminating the need for customers to download an application, the live video interview conducted by the provider’s agent is faster. In light of its capability to perform facial biometrics and document verification while a live interview is ongoing, customers no longer wait before the provider complete the onboarding process.

To cite an example, a HooYu Video-ID program configured and customised for the German market, enables an interviewer to initiate a Schufa database identity-check as a means of confirming the name, address and birthday of the onboarding customer. It could also conduct mortality checks in conjunction with or independent of the Video-ID interview process.

P2P Payment Apps – Making Mobile and Online Banking Better Than Ever

P2P or person-to-person payment is a financial method that enables customers to transfer funds to another person using their credit card or bank account. Users simply access a payment-transfer application installed in a mobile device, laptop or PC. of a mobile Banks develop or collaborate with a third party provider of P2P platform, to give customers the ability to transfer money to another person, even if the latter does not maintain a bank account with the servicing bank.

Once the sender makes a money transfer, the recipient will be notified by way of email, about the money transferred to his or her bank account, whilst referencing a specific transaction code. The P2P system does not require senders and recipients to have a deposit account with the same bank.

How P2P Payment Method Works

Even before the development of P2P applications, the majority of e-commerce merchants who have been accepting online payments, used payment processors like PayPal. As mobile banking likewise enabled device users to make payments, PayPal introduced a mobile banking app that enabled their customers to make direct payments to the bank accounts of merchants or peers without need to pass through PayPal’s e-wallet platform. .

Today, there’s a broad selection of P2P mobile payment apps that enable family and friends to transfer and receive funds. Some of the leading providers of P2P mobile apps, in addition to PayPal, are Google, Venmo and Xoom. Actually, even Facebook offers person-to-person payments through credit unions and banks.

Tips For Getting Your Business Funded

Starting or expanding a business is an exciting and long-term process. Finding the necessary financing to take your business to the next level can often be a major stumbling block. Many lenders are skeptical of young companies. This article, therefore, discusses ways to get external financing for your business and we conclude with some short tips to pitch your business plan to the lender. Financing your business is often an important step towards a better company.

Crowdfunding
Since the banking crisis of 2007, confidence in banks has declined sharply. In response to this, the popularity of P2P (peer-to-peer) platforms has skyrocketed. These platforms act independently of traditional financial institutions and serve as a meeting place for entrepreneurs and potential investors. A good crowdfunding campaign with a well-thought-out business plan can be a very effective way to raise capital. Investors of all sizes such as ‘Robert Lewandowski Bitcoin’ can invest an amount of their choice in your company and thus provide your plans with the necessary financial support.

Private investors
Angel Investors (also known as Business Angels) are private investors who want to invest (part of) their equity in a start-up company in exchange for 20 to 25 percent profit on their initial investment. These are often successful former entrepreneurs who are willing to provide knowledge and expertise in addition to capital. Only if your company is a BV or NV, you can therefore attract such professional investors. Informal investors offer money in exchange for shares. They will therefore like to remain intensively involved in the business process even after the start. Depending on your personal expectations, this can be both an advantage and a disadvantage. Be aware of your interest (the company) and that of the investor (the return) and try to build an open and personal relationship with your lenders.

Personal capital
You may not think that this form of financing is very creative, but you might be surprised at the number of starters who have not thought of saving a nice amount before starting their business, or who wouldn’t think of using their own savings to start a business. Very few investors are willing to offer money when they see that you are not willing to put your hand in the fire for your cause. Financing your business often starts with investing the money yourself.

Advance Financing
The most common scaling problem that start-ups face is the inability to take a large new order or expand due to unforeseen success, as they do not have the capital to finance the product or expansion. With PIN Advance you have extra money that is immediately available. This way you can transfer all the necessary resources directly to the supplier and the profit can flow directly to your startup.

Starters BMKB
Have you been active as an entrepreneur for less than three years? Do you have a well-thought-out business plan, but do you currently not have collateral to provide the bank with sufficient security? Then the bank with which you want to apply for a business loan can use the Starters BMKB. This is a special government scheme to help start-ups when it comes to financing their business. If you take out a ‘starter loan’ of a maximum of 266,667 euros, the government guarantees 67.5% of this amount. Do you need more capital? Then you can also use a standard surety credit.

Australian Consumers Benefiting from the Growth of the Fintech Industry

Demand for financing facilities has always been high in Australia, more so now that many Australians are experiencing financial hardship due to the pandemic. However, loans being offered by Australian banks are not always accessible, or for that matter, affordable to ordinary citizens and small businesses. Through the years, as the need for affordable and easy to access loans saw a continuing rise in Australia, a new breed of financial service providers known as fintechs have introduced a novel approach to both investing and lending.

Why Borrowing from Banks are Next to Impossible for Ordinary Consumers

Since banking institutions loan out money using funds entrusted to them by their depositors, it’s important that the risks involved in doing so is minimal. Moreover, lending among traditional banks is generally profit-driven. Primarily because they cannot use money deposited by clients to pay for their day-to-day banking operations.

Bank loans are often difficult to avail even for small and medium enterprises (SME), as not many in this group have already attained proven track records, or have extensive credit histories; or even own real estate assets to offer as collateral.

Through fintechs, consumers and SMEs can take out loans by way of peer-to-peer lending that banks cannot match.

What is Peer-to-Peer Lending?

Apart from technological innovations that allow fintechs to be more flexible and agile in providing financial services, fintechs introduced peer-to-peer lending, a.k.a. P2P, as a way of sourcing funds to lend to consumers and SMEs.

Peer-to-peer (P2P) lending is a method of enabling individuals to borrow money directly from ordinary people who have surplus money to invest. Through a platform, fintechs offer lending to individuals as a form of investment, denoting that the funds invested will be offered as loans to those looking to borrow money under less rigid conditions.

The interests collected from corresponding borrowers will then serve as profits of individual investors, which are of course higher than interests earned, if funds were placed as savings and time deposits in banks.

That being the case, fintechs apply due diligence in evaluating the creditworthiness of borrowers, but at lesser overhead costs. While those with poor credit history may apply for a P2P loan, the interest rate imputed will be higher, as the borrower will be classified under the high risk category.

Currently, as there are numerous fintechs offering their P2P lending services, Australians can now shop around for the best deals, usually with the help of a finance broker. The latter after all, better understands the terms and conditions pertaining to a loan, and how those can impact a borrower’s personal finances. Although the lending process, such as the transfer of money and collection of monthly payments are automated, negotiations or haggling is possible with P2P financing.

How Leading Finance Broker National Loans Australia Can Help

When planning to avail a loan, whether from a bank or through a fintech, it would be best to hire a finance broker who understands all the intricacies of lending practices and processes. As licensed finance brokers, the team members of National Loans Australia (NLA), help individual borrowers sort out all the financing options available as responses to the pre-approval loan forms sent out to banks and financing institutions.

One thing that makes NLA finance brokers a cut above the rest is that they have had more than 24 years of experience in brokering bespoke loans for their clients. In turn, their track record as finance brokers have enabled them to build successful relationships with banks and other financial institutions, including fintechs.

What is Open Banking and Why Do Bank Clients Like It?

Open banking is a financial service that allows third parties to act as intermediaries in facilitating financial transactions between banks and clients via the API.

The latter refers to the Application Programming Interface (API) technology that makes banking practice more convenient for consumers, as the platform links consumer accounts with different financial institutions and service providers. Mainly because data will be accessible to third-party providers who will carry out full completion of financial transactions between clients, consumers and financial institutions when initiated online.

Whereas before, clients can make same-day, real-time transfers of money to another bank account only if such account is maintained in the same banking institution In open banking, through the API of a third party intermediary, the fund transfer can take effect in real time even if the recipient account is maintained in a banking institution that is different from the transferring bank.

Other Potential Advantages of Open Banking

Open Banking technology has been proven as very useful as it provides a new alternative especially in times of pandemic:

1.  With open banking, it shows potential that it can increase sources of revenue as customers who engage in online income-earning opportunities will have increased capabilities to perform online transactions through financial institutions.

2.  Open banking can also assist money lenders in determining the customer’s financial circumstances and risk levels. The open data related to applicant-borrowers makes the evaluation and decision-making processes easier for lenders when giving consumers practical and manageable loan or credit terms.

3.  As smaller banks engage in open banking, the bigger and well-known banks would be constrained to make their rates and services more competitive against newer and unfamiliar banks. As a result, larger banks would be pressured in providing better client service, use newer technologies to decrease banking costs being shifted to clients.

Simple Explanations on How APIs Work

Most online consumers have encountered the term API and are quite interested to find out more; beyond the technical jargon of what the acronym stands for: Application Programming Interface.

First off, API is a product that is usually offered to developers of applications or resource platforms that will allow the offering of a specific product or service to consumers by way of digital technology.

Know that the term interface refers to a program that enables mobile app user to connect to a platform from which they are requesting a service. An API allows communication between the app user’s device and a specific service provider’s platform.

Simple Example of How APIs Work

The simplest example is when a user of a Facebook Messenger app wants to send a message to other FB Messenger users. The API acts as the conduit or intermediary program that will connect the requesting party to Facebook’s Messenger platform. Upon receipt of the request, the FB platform will in turn, process the request, whilst making sure that only those authorized to connect to that particular Messenger app can send back responses, which the API forwards to the requesting party. .

Why API is Important for Mobile App Developers and Resource Providers

Since APIs are products in the form of program codes offered to app developers and resource platforms, the quality of the API integrated as part of the program or software is of great importance. The API can promote active use of the mobile application, especially when users find it easy to engage in the quickest time possible and in the safest of environments.

APIs can influence customer experience and can become a deciding factor for app users to continue using the stores or the service providers to which their app is connected.

The industry benchmark in determining the quality of the API that sends out communications between app user and resource platforms is the level of user retention, or the percentage of users who return and engage through the app within three months, from the very first session.

Still, it is important to note that brands tend to set their own standards of customer engagement and retention, as metrics to follow when choosing the mobile apps and resource platforms.

Some of the major technology companies that offer APIs are Google, Amazon, Expedia, eBay and Salesforce, because their platforms are connected to the most popular commercial markets. .

Technology Trends Driving The Finance Industry

New technologies have long defined the future of the banking sector. The biggest challenge is figuring out which of these developments will be most relevant to a particular company. We are at a crucial turning point. The observation of technology trends in the financial industry has never been more important. The strong competition from fintech companies and high-tech giants has increased consumer expectations within the industry. Since then, banks and credit unions have invested heavily in the use of new technologies to develop successful future strategies.

Technology trends in financial services

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Machine learning in the financial industry

Many banks are faced with the immense problem of keeping up with fintechs, as they can usually adapt to changes much faster and more agile than the big financial institutions. On the other hand, the established banks have more experience and data that they can use. This means that banks can reduce costs, deepen customer relationships and make compliance more efficient by using powerful AI and machine learning. Numerous financial institutions are now using machine learning to optimize all work processes (from risk analysis and fraud detection to marketing) in order to make data-driven decisions.

Cloud-based service models

The demand for cloud-based solutions is increasing. The near future promises cloud infrastructure as a standard web server environment and as a go-to environment for companies, also to accelerate digitalization in the banking sector. Cloud-based service models offer a realistic way to increase your own value creation potential and reduce complexity and costs. Banks are already using Amazon Web Services and other well-known cloud providers for efficient email management, human resources, software development and testing, customer relationship management and other tasks. Even if these are not directly related to the core business of banks, many shareholders assume that it will not be too long before almost all financial institutions will use the cloud for their basic services.

Open Banking

The concept of open banking for financial services is based on several principles:

  • Introduction of open APIs (Application Programming Interfaces) with which external developers can develop applications and services for financial institutions
  • Faster, simpler and more efficient financial services for customers
  • The implementation of these principles through the application of open source technologies
  • Data sharing is usually done through an API, an intelligent connection that enables the data flow between systems.

APIs can implement the formatting of the data derived from a software application in order to insert it unchanged into the next application.

What does this mean for the consumer? Open banking allows account holders to switch from one provider to another much easier to get the best conditions.

Intelligent anti-fraud solutions

The challenges of cyber security have become an everyday struggle for banks. Research shows a clear increase in hacked and publicly available data coming from common sources such as mobile devices and IoT devices.

Cyber attacks are nothing new to banks. An increase in attacks suggests that conventional solutions are no longer sufficient. Analysis technologies are becoming more and more precise in identifying areas and activities where there is an increased risk. Banks that succeed in detecting fraudulent transactions or cyber attacks will also be able to build more trusting relationships with their customers in the long term.

Voice Banking

Intelligent voice interfaces enable real-time communication and interaction between human users and a virtual assistant. This makes it easier to use hands-free devices and to respond quickly to questions and problems. Market leaders in private and mobile consumption include Siri, Cortana, Alexa and Google Assistant. Voice banking in particular is a perfect solution for older and restricted customers to avoid complications on the way to a local bank. Top fintech companies are increasingly developing APIs that voice assistants can skillfully integrate into banking systems to drive efficient voice banking.

Digital Banking

The digital bank is no longer a vision of the future. More and more financial institutions are replacing their physical branches with purely digital offers, thus meeting the requirements for new customer communication. This must be fast, interactive, personal and available everywhere. This turns into a risk that traditional banks have successfully relied on for decades. Financial institutions should therefore also develop efficient startup relationship management programs in order to use the technical know-how of fintechs for the development of digital solutions.

Finance has created more innovative products and services than ever before. In order to keep up with the agile pace and discover competitive advantages at an early stage, banks should continuously monitor their corporate environment and examine them for risks and opportunities.

Underscoring the Significance of Underwriting Using AI-Enhanced Technologies

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.

To eliminate the tediousness and inaccuracies of manual underwriting processes, improvements in financial technologies saw the creation of Artificial Intelligence or AI.

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.

Affiliate Marketing Technological Aspects

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.

Affiliate Tracking

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.

Affiliate cookies

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.

Flash 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.

HTTP e-tag

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.

IP address

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.

Residual tracking

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.

Making Technology Adoption Part of a Senior’s Preparations for the Golden Years

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.

Trading Through Decentralized Crypto Exchanges – It’s Benefits

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.

Added Privacy

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.

Moving The Personal Loan Market Upward Through Fintech

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.

The Growing Fintech Companies 

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.

Technology-based Solutions

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.

The Unceasing Growth And Development Of Financial Technology

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.

Mobile Payments

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.

Budgeting Applications

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.  

The Peer-to-Peer Lending Platform

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.

Financial Technology Loan Options For Small Businesses

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

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.