2019 Banking Industry Outlook 6 themes driving banking industry trends counting the Costs of a Data Breach

 

Banking And Technology

For 2019 and past, banks must contend with many issues engaged to regulations and legacy systems, upsetting models along with technologies, new challenge, and an impatient customer base while chasing new techniques for lasting growth. Our 2019 Banking Industry Outlook inspects the six macro themes from customer centricity to cyber risk facing all the industry’s five primary business portions in the coming twelve to eighteen months. Companies that can address these issues opportunities to effortlessly balance long-term goals with short-term performance pressures might be amply compensated.

There is considerable opportunity for banking institutions on the coming year, but lasting development will probably rely on navigating 6 dominant themes.

The banking industry comes in 2019 having a fresh air of careful confidence among clouds of policy doubt. Today, the clouds have cleared a little. For banking institutions around the globe, 2019 might a crucial year for accelerating the change into more strategically minded, digitally connected, and operationally agile organizations better equipped to maintain market leadership in an ecosystem that is rapidly evolving.

But this present year also promises multiple challenges, including complex and diverging regulations and legacy systems, troublesome models and also technologies, new competitors, and an often restive customer base with ever-higher anticipations. For banks’ 5 company lines retail banking and corporate banking, capital areas, payments, and wide range management 6 broad themes might be particularly critical for sustainable long-term development into the coming twelve to eighteen months:

Customer-centricity: True customer centricity is certainly a Holy Grail for banking institutions, which have made notable strides in moving away from sales-dominant countries. But clients objectives are evolving at a much faster speed, many thanks in particular to the superior experiences they enjoy with other industries. Being alert in experience delivery is as essential today as aiming at right areas as well as right consumer segments with all the ideal resolutions.

Financial Technology and Banking

Fintechs and techs are going to have a very strong impact on banking in the near future . Banking institutions can learn from fintech firms, which have set a benchmark that is new surpassing customer objectives in financial services. Fintechs have changed the direction of innovation in banking. However, incumbent institutions that are financial likely to keep their dominance offered their scale of operations, regulatory barriers to entry, and customers’ reluctance to change. That does not mean that banks should lean on their market laurels, but just the opposite. Rather, they are able to discover techniques to improve the customer experience. Banks could reproduce just what fintechs are doing, collaborate with them, or obtain them. Moreover, banks could take an expansive view of competitive benchmarking to consist of the most beneficial in class fintechs along with big tech companies.

Tech Administration

Technology administration. As much as banks may wish they might, discarding legacy systems just isn’t an option. Modernizing the main generally seems to be considered a concern on par with buying a profile of new technologies for example Blockchain as well as robotics and intellectual automation. There exists a lot to be done, as well as it is not going to be easy. Banks can aim to strike a balance between retaining competitively differentiating activities in-house as well as others that are externalizing. By 2020, technology units inside banks will possible start making changes by themselves from running platforms to arranging technology information flows across most of the stakeholders.

 

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The Successes and Failures of Fintech

The global fintech market is characterised by a booming digital payments industry valued at $3,403,168 million in 2018, with a total transaction value projected to increase by 13.2% by 2024. Among the largest sectors of the fintech industry are the personal finance sector and the burgeoning Robo-Advisors sector. According to market research (Research and Markets), the total market’s transactional value for 2019 through 2024 is forecast to grow at a compound annual growth rate (CAGR) of 8.6%. Fintech’s rise to prominence was facilitated to a large degree by the failure of central banks and established financial systems following the global financial crisis. A growing demand for workable financial solutions, structures and frameworks yielded innovative fintech solutions for improved efficiency, better management, and enhanced cost effectiveness.

Financial Tech Companies

The leading financial technology companies have set the standards high, with ambitious objectives aimed at solving real-world problems. Sometimes these incubator solutions have prospered, at other times they have failed. The rationale for ongoing R&D into Fintech solutions is to replace redundant, expensive financial frameworks and entrenched systems with leaner and more efficient solutions. Fintech’s advances have not been without the occasional stumbling block. One such area of concern is small business lending. Predatory pricing techniques and invasive business practices have tarred this particular segment of the fintech industry. Greater regulatory compliance and oversight are needed to establish credibility among users.

Challenges Ahead for Sectors of the Fintech Industry

So, what’s really going on in the Fintech space? What are the notable failures and what are the possible bright spots on the horizon? It appears that the most significant losses are attributable to banking companies and online lenders. Several big-name enterprises like CAN Capital, OnDeck and even Lending Club have suffered acute losses, as reflected in their stock prices. For example, LendingClub Corp stock has dropped from over $25 per share in 2014 to just $3.60 per share today. This begs the question: Why are online lending companies failing while traditional financial institutions are enjoying incremental growth? An interesting insight is provided by acclaimed investor, J. Christopher Flowers. His analysis of fintech companies is revealing. Fintech companies don’t follow the narrative of financial companies. Fintech is geared towards massive growth and dominance in double-quick time. Financial enterprise is typically slow and steady, with incremental growth over time.

Funding For Technology

With tech funding, investors plough huge amounts of money into new ventures with a short-term perspective. In financial circles, trust needs to be built, reputations established, and market penetration achieved. All of these things take time to process. With fintech it’s about who gets to market first in a rush for dominance. Fintech enterprises in the online lending industry are all about pushing sales, first and foremost. Proof of this dash towards rapid growth and dominance in the online lending market is evident in the high cost per click with keywords on Google. To cut a long story short, advertising campaigns with many online lenders are geared towards growth at all costs. By working with established fintech enterprises, fintech newbies fall into the trap of stagnation. The reason d’etre of fintech is disruptive technology, while incumbent enterprises are set in their ways. This makes it rather difficult to gain traction.

Fintech Success Stories to Rebalance the Scales

Fintech has a place in today’s fast-paced world, particularly in areas where clunky processes hamper the efficiency of important business functions. One striking example of fintech at work is in the area of global payroll payments processing. Payroll costs are a major bugbear for companies all over the world. Global payroll operations across multiple territories and jurisdictions typically cost companies substantial sums of money and they are associated with significant security concerns, legal complexities, and compliance-related issues. Fintech companies offering sophisticated solutions in the form of automated payroll processing solutions are having an impact on the profitability and efficiency of company operations. Many companies have touted solutions for global payroll, but only a select few generate the types of results that are needed to validate their adoption. The hallmarks of effective global workforce management platforms are cost-reducing solutions, fully automated payroll systems, and full compliance with GDPR. By eliminating email dependency in the payroll function, it is possible to improve data security and coverage for employees and the company.

 

A big part of the inefficiency problem with global payroll management is compliance. Each country, territory or jurisdiction has specific rules in place regarding payroll management. With automated payroll solutions, compliance is guaranteed. Thanks to local verified experts in place, it is easy to enjoy complete control and transparency of all payroll-related activity. Automated payroll solutions run on autopilot, without any complexity. By connecting with local suppliers, companies can enjoy best-in-class payroll management through secure, efficient and compliant payroll solutions. Many other promising areas are ripe for fintech development. Innovative technologies are giving rise to systems, products and services making it easier to manage finances for businesses and individuals, secure payments channels, and facilitate greater efficiency across the board. Digital banking is slated to double in size within a few years, and mobile payments are expected to reach $275 billion by 2021 (Statista). Various other fintech fields are being cultivated, including biometric banking identifiers, insuretech, regtech (fintech regulatory compliance systems), blockchain, and concepts such as ‘Social Money’. Each of these fintech markets is enjoying substantial investment, and adoption of these new technologies is quickly gaining traction.

The Future of FinTech

The future certainly looks bright for fintech and all its applications. New developments are being brought to market at breakneck speed. While some concepts will inevitably fail, but offer solutions to existing challenges.

 

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The Revolution in Virtual Reality

 

A new front-runner has emerged in IPO New technologies; Wall-Street.com spotlights this new exciting technology from MIT Technology Review.

Virtual Reality: The Next Frontier

Virtual reality technology has revolutionized, challenging everything humanity knows about virtual worlds. Imagine being able to find yourself in a beautiful and magical land simply by putting on a pair of goggles. This may sound far-fetched or like something in a Sci-Fi movie, but it is months away from being a reality.

Why Now?

Though virtual reality goggles were invented almost three decades ago, they did not take off because of exorbitant prices and poor technology. The first virtual reality goggles from thirty years ago cost $100,000 for a single pair! Furthermore, players of another virtual reality game in the 1990’s complained of nausea and disorientation while playing.

Oculus Rift

Now things have changed. Oculus VR is introducing the Oculus Rift in 2014, an affordable virtual reality headset that utilizes smartphone technology for an incredibly clear and realistic experience. As players lean in to look at a flower, the simulation follows their movement in real time.

Palmer Luckey, the 21 year-old founder of Oculus VR, has dreamed of virtual worlds since his video games day as a child. From a young age he worked towards his dream; he designed a working prototype that would evolve into Oculus Rift at the age of 16.

How Much?

At the moment, Oculus Rift cost around $300, which makes it affordable for the general gaming public.

Not Just for Gamers

Although currently aimed at video games, virtual reality could have many uses in other fields such as phobia therapy, emergency response training, and architecture.

Investment Opportunities

Oculus Rift has already gained $91 billion in funding and much media attention. Facebook recently bought the company for the large sum of $2 billion. Therefore, it may seem as if there are no IPO investment opportunities.

However, Oculus Rift has inspired many other companies to start their own virtual reality development. Large companies such as Sony and smaller, more specialized video game companies need investors to take on this challenge.

There’s More!

This revolution in virtual reality is by no means the only exciting development in IPO new technologies. There are hundreds more articles about possible investment opportunities here at Wall-Street.com, each one archived and easily accessible through the search bar in the upper right hand corner of the site.

Sources: Tech Review

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US Dollar Still Ahead of other Currency Markets

The US dollar has been outdoing other currencies for a while now. While other countries are being bombarded by economic struggles, the US economy seems to be standing firm on its own.

Volatility prices are decreasing at a rapid rate, which is forcing the US to consolidate. Meanwhile, the Dow Jones Dollar Index is reporting an upward surge in the US greenback when compared to other currencies such as the Australian dollar and the Japanese Yen. As the US dollar continues to stay on top of other currencies, binary option like Scam Watchdog is making sure that dealers in foreign currencies have the right information when it comes to their security.

 

Asian Currencies

Asian stocks received some encouragement based on the positive report given by the US Federal Reserve. The Feds painted a positive picture of the country’s performance in the past and leading up to the present. Asian stocks rose base on positive performance that the US is expecting to continue generating growth for the rest of 2015 and leading into 2016. The Japanese Nikkei rose 1.2 percent while shares on the Australian market went down 0.7 percent.

Asian Pacific shares went up 0.4 percent and this is showing a certain level of confidence in the US economy. In this week, the greenback rose to its highest gain to 0.1 percent when trading took place on the Asian exchange. The dollar traded at 124.075 yen.

The euro went down 0.2 percent and stood at $1.0964. The fall of the euro might be a reflection of a strong risk appetite, which is being used as a currency to fund risk assets investments.

In the US, positive inflation and housing data led to an outstanding performance by the country’s currency. Since the information about inflation and housing was revealed, Janet Yellen who is the Federal Reserve chairperson hinted that it might be time to lift the country’s interest rates sometime down in the year.

 

New Zealand Currency Ranks High With the Dollar

New Zealand’s currency was the only bright spark when compared to the US dollar. The Kiwi currency went into recovery mode after slumping for six years with an amount of $0.6498. The recovery brought a sense of relief to financial analysts in the market. An acceptance therefore came about among key players in the economy that the finances of the country are picking up at a rapid pace. The fast growth of the Kiwi economy is causing a concern among big financial players in the economy and thus there is now a move on by government to cut interest rates to facilitate growth.

 

Since the US dollar has shown an increase over the past week, dollar bulls are investing in the country’s currency in an effort to snatch greater profits from their investment. One dealer that deals with an international bank based in London says, “All of the commodity currencies are taking a hammering from the dollar’s rise”.

How Will the Gold Market Preform Against the Dollar

The gold market also helped to strengthen the US dollar. As gold went down 4 percent, the dollar went up because of added pressure placed on other currencies such as the Canadian and Australian dollars as well as the Norwegian crown.

While the euro and other world currencies directions are heading downwards, the US dollar is on an upward trend. With many woes facing certain countries like Greece and others, the value of international currencies are expected to continue falling. However, with a strong US economy to contend with, the greenback will always be outperforming other country currencies.

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