Financial Services Agency

Understanding the Need For Financial Education (Or Growing Old and Poor on Lottery Tickets)

noreply@blogger.com (combor) — Wed, 19 Feb 2014 19:14:00 +0000

In today's world of advanced technology there is no shortage of information on just about any subject or topic you want to explore. Hard copy magazines can be bought in any supermarket or news agency on any topic from 'how to plant tomatoes' to 'how to build an aero plane'. The internet is now the most used piece of technology for sourcing information with over 1.6 billion users worldwide. If it's not on the internet then it hasn't been discovered yet.

For most of us financial freedom and prosperity are challenges that we all seek in our lifetime. It's the reason why so many of us spend money on gambling and lotto around the world in the hope of achieving that dream without the pain and effort needed to get there under our own steam - and yes, I'm guilty too of trying to fast track my way to wealth and glory. In fact, according to an unverified article found on the internet $224.3 billion was spent on legal lotteries throughout the world in 2007. $166 billion of that figure was purchased online. I think that's called something like wealth redistribution. The fact is only a few out of millions get to share in the wealth. The rest of us will grow old and poor buying lottery tickets. This emphasizes the need for financial education.

Saving for retirement and enjoying a more prosperous lifestyle along the way is not impossible to achieve but it does require an understanding of the need for financial education. As a 50 something year old who has spent a lifetime in financial services (I like to call it salt and pepper experience!) I still come across too many examples of people who do not understand the need for financial education. Only the other day I was speaking with a 21 year old apprentice carpenter who believed that superannuation (retirement savings) was an imposed burden on his earning capacity and belonged to the 'government' until he retired. This is a common belief by many young people today and surely points to the failure of governments and older generations to pass on and educate people about the need for financial education.

The need for financial education is not limited to just the younger generations either. It's why more than 95% of the currently retiring baby boomer generation will retire on less income needed to support a comfortable lifestyle. With the advances in technology and information, particularly the internet, everyone has the opportunity to become financially educated. That's why I called my blog 'Wealth Happens Online'. The internet is not only a place where you can learn about every aspect of financial education from saving for retirement, investing in shares/managed funds, property investment, a variety of alternative investments and business opportunities but it's also a place where you can source information on the need for financial education.

Understanding the need (or what your goals are) is the first step to meeting the challenge to financial freedom and prosperity. Since the GFC hit, the world has become wary of financial advisers and others who give advice on investments. If you are compelled to use the services of a financial adviser rather than sourcing your own information on the internet then look for an adviser who understands the need for financial education before 'selling' you on investments. No matter what your age, understanding the need for financial education is the safest and surest way to financial freedom and prosperity. The alternative is to grow old and poor on lottery tickets.

The First Rule of CRM for Financial Services

noreply@blogger.com (combor) — Tue, 18 Feb 2014 06:25:00 +0000

Things have to change. Cross selling is not going to happen simply by installing new CRM technology. A corresponding movement from a transaction mentality to the underlying CRM principle of focusing on the long-term relationship is required. What does this mean for financial services? Stop pushing products and start building relationships.

The Consumer's Perspective

Let's take a look from the consumer's perspective. Financial illiteracy is alive and well, especially with baby boomers. Next, throw in brand confusion--the convergence in financial services has produced new players, company names, and products. Everybody is now playing in everybody else's backyard. Insert the media's frequent coverage on retirement planning and increased advertising dollars being spent targeting "the confused generation." Now, throw in the fact that there is widespread incoherence around what the term "financial planner" even means. At its best, this situation is overwhelming to prospects, current clients, and maybe even your employees. At its worst, people are sticking their heads in the sand and saying, "leave me alone!"

Marketing financial products and services has always been an information and relationship sale. You are in the personal finance education business, whether you like it or not. And it's not nearly as sexy as the ad agencies make it seem. No matter how many sailboats, moonlight beaches, or mansions your advertising agency plasters in print and on the airways, selling financial services and products makes prospects and clients deal with issues with which many are uncomfortable. It is no wonder that selling financial services demands a set of tools that moves far beyond the info dump and plethora of brochures that dominate the industry.

The Financial Firm's Perspective

Let's now take a look from the financial firms' perspective. Mergers and acquisitions have been in full throttle. Corporate identities are still being created. Not only is there more competition, but it's possible that the more serious competitors are residing within your own company. CRM is slowly permeating the lexicon of the financial world. Yet, with a few notable exceptions, financial firms lag far behind industries like retailing and airlines in data mining, making it almost impossible today to build a single integrated view of their customers.

On either side of the spectrum, change is the dominant theme. So given the current state of affairs, how do you execute a CRM strategy that promotes cross selling and up selling? How can you increase the chances that your CRM strategy will stick? Here are some of the best conditions for selling:
When the sales force has complete access to a particular customer's need or near-term future needs.

When the sales force knows and understands what cross selling and up selling mean in your firm.

When staff, partners, and suppliers work together to deliver what is promised.

When leadership teams agree on how to lead the transformation necessary to change culture, structures, systems, metrics, and behaviors to promote cross selling.

The Softer Side of CRM

All of the above conditions require more than technology solutions and product knowledge to execute. They require the softer side of the CRM equation: relationship building with customers, prospects, your boss, your peers, other departments, partners, and suppliers. If you want to solve the business challenge of cross selling and up selling, you'll need to:
Build trust. For financial planners, brokers or agents, that might require working with prospects in new ways. For corporate or home office staff, that might include building bridges with other departments or field staff.
Develop a network of helpful relationships that will act as "oil" for the CRM machine. Research shows that the more helpful relationships there are, the more information is willingly shared. For financial planners, brokers or agents, that might mean prospecting in new ways. For corporate or home office staff, it might mean articulating and agreeing on a practical policy of real-time knowledge and information sharing.
Build crucial social currency both with customers and with people inside the organization. The core of any social or economic relationship is trust. It's all about influencing others to take action in the direction we want them to go.

It's a Process

Relationship building is a process of trust building. It is also an iterative process. It is a process of layering...the relationship starts at arm's length, then grows more intimate as the trust builds, passing little tests along the way. This applies to all relationships--with customers, employees, peers, partners, and even competitors. Your internal experts in technology, marketing, corporate identity, operations, and sales must grow to learn how to be content experts in the business of relationship building. In today's environment, CRM is screaming for experts on relationship building. Managing customer relationships can only happen after they've been properly built.

One word of caution for financial services firms as they march forward to the CRM tune: don't worry so much about selling the features and benefits of your products. You're already really good at that. Start worrying about how you can build relationships with your customers and prospects in new and different ways that will allow for cross selling and up selling. Remember the aphorism: A sure sign of insanity is doing the same old thing while expecting new and different results.

Finance Recruitment Agency - Get a Financial Services Job

noreply@blogger.com (combor) — Mon, 17 Feb 2014 14:12:00 +0000

Obtaining a financial services job position within the present marketplace has turned out to be a challenge for many jobless individuals in the United States. Although a number of positions are being produced, people are continuing to lose their jobs at the exact same or even higher pace.

As a result, you will find a great number of individuals contending for each job opportunity that is available. At the same time, you will find positions that are not filled simply because an applicant with the desired experience and skills has not applied, or sometimes because the business has delayed the hiring of additional staff.

If you find this is the case, there are a number of methods you can use to locate these job opportunities, such as social networking, researching on the Internet and contacting finance job recruiters.

A lot of job seekers think networking is the very best method to discover a new position, as often managers would rather employ people who've been proposed by someone they know. Others prefer to search for employment online. However, since a large majority of financial institutions would rather utilize headhunters to help them locate the right job applicants, this may be your best option.

Networking

If you plan to use networking to find open job opportunities, you need to make an effort to grow and increase the group of individuals in the financial industry that you frequently connect with. You probably have colleagues who are able to connect you with professional associates and job interviews, or perhaps others that can help discover additional connections. Develop a timetable to reach out on a regular basis to each and every individual. You most likely are comfortable getting in touch with several friends once or twice per week, while other people you may get in touch with less often. The key here is to be consistent.

Searching for Jobs Online

Searching for employment online can be fairly easy if you understand how and where to search. You will find numerous job boards that provide a huge number of possibilities, but combing through appropriate listings can not just be extremely time consuming but also discouraging. A good strategy to finding a rewarding job online is to stay current with industry news as well as finding websites specific to the finance industry. Studying the news will help you determine what keywords and phrases to utilize in your job search; exploring the right websites will reduce the quantity of time invested in sifting through all of the results.

Finance Recruitment Firms

The best idea is to contact a financial services recruitment firm as soon as you decide you need to look for another job. They know a huge number of people in the industry, are aware of job openings the minute they become available, and are experienced at matching an individual's qualifications with the right job opportunity. They can facilitate an interview, advising you on your interview techniques and the company culture prior to your first meeting with the employer. The will also keep your job search confidential, and all this is provided with no cost to you.

The Regulation Of Financial Markets In The Southern African Region - Current Status And Developments

noreply@blogger.com (combor) — Sun, 16 Feb 2014 21:54:00 +0000

The success of the financial sector is a key component for economic development

The financial markets sector is one important area of public concern in Africa. The need for adequate regulation and supervision of Financial Markets as an important mechanism for the promotion of economic development in African countries cannot be overemphasized. Financial markets regulation remains a very sensitive and complex activity when it comes to governmental policy development, with relation to defining strategic options pertaining to financial regulation. This article reviews the current status of financial farkets, the legal and regulatory frameworks in the Southern African region, with a special focus on selected countries.

The topic under investigation relates to the regulation of financial markets by governments within the Southern African countries both at national and international levels. It attempts to grasp its rationale, objectives, approaches and the practical ways of defining a regulatory framework for a modern African financial market and system. At a time many experts are calling for liberalization of financial services in Africa, it is important to analyze what are the rationale, advantages and implications of financial markets regulation for Southern African countries under the light of new international instruments and standards, such as the Basle II Framework and the WTO Agreement on Financial Services of 1994, whose operational modalities are is still under negotiations on various key aspects.

This paper attempts to examine the institutional and regulatory framework for the financial markets operations in order to understand the underlying principles of financial markets regulation development; to develop a concise outline of financial markets regulation framework within the South African countries; and provide as much as possible a clear understanding of policy development, key issues and challenges relating to the regulation of financial markets in the Southern African region.
The terminology used in the financial markets jargon is considered to be highly technical and can some times be confusing. While we attempt to keep a non technical language through out this paper, it is quite impossible to avoid the specific concepts used in the financial profession. For some key concepts, a concise glossary of most of the technical words is provided at request by the author.

The Southern African region: geographic coverage and scope

The broad Southern African Region considered under the present study is defined with reference to the SADC membership, currently comprising 14 countries, i.e. Angola, Botswana, Congo (the Democratic Republic of), Lesotho, Malawi, Mauritius, Mozambique, Namibia, Seychelles, South Africa, Swaziland, Tanzania, Zambia and Zimbabwe. However, our scope is limited by the criteria of readily available data, and the level of financial markets development in the countries under investigation. Angola and the Democratic Republic of Congo are emerging from long wars and are still rebuilding their economies and financial systems. Both have no formal financial market. Accurate and reliable data is very limited on their systems. The study covers a period of 10 years (1994-2004).

Background overview on Financial Markets

The regulation of Financial Markets, taken as a broad concept, is the process that encompasses regulation, (i.e. the establishment of specific rules of behaviour), the monitoring (i.e. observing whether the rules are respected) , the supervision (a more general observation of the behaviour of financial institutions and operators), and the enforcement (ensuring that the rules are complied with) of the established laws.

The ultimate economic function of financial markets is to mobilize and allocate resources through financial intermediation in order to accelerate the process of economic growth. This function is performed through two distinct but interrelated components of the financial markets, i.e. the money market and the capital market. It provides channels for transferring the excess funds of surplus units to deficits ones. They constitute the mechanism that link surplus and deficit units, attracting funds from savers in the surplus sector and channeling these to borrowers for the purposes of profitable investment.

For the purpose of providing a clear understanding of this topic, it is profitable to present a wide overview of a typical financial system and the place of the financial markets holds within this framework. As a practical illustration, we provide in a table of Annex I, the Conceptual Framework of a typical financial market system (the Case of South Africa).

Financial Systems and Financial Markets development

The financial system in the Southern African region consists of providers and users of financial services. The typical financial system consists of a variety of institutions, instruments and markets that facilitate the flow of financial resources between borrowers and lenders. The financial institutions include moneylenders, banks, insurance companies, leasing companies, venture capital funds, mutual funds and pension funds, brokerage houses, investment trusts and stock exchanges.

Financial instruments involved range from currency notes and coins, cheques, mortgages, corporate bills, bonds and stocks to futures, swaps and other complex derivatives. The markets for these instruments may be organized or may be informal. The users of the markets may be households, businesses and the government. Compared to those of developed countries (Europe, Asia and America), the typical financial markets in the Southern African region are characterized by the absence or a limited number and quality of the financial services providers, the absence of many of the instruments and the lack of depth in the markets.

Financial Markets typology and structure

The financial markets play a very important part in the economy of a country and the well-being of every person. They interact with other markets and have an influence on issues such as wealth, inflation and economic stability in a country. The financial markets have their own characteristics and to be able to regulate them or operate in them, it is important to comprehend these characteristics.

Classification of Financial Markets

Financial Markets can be classified into different categories depending on the characteristic of the market or instrument used to create categories. There exist two ultimate distinctions of financial markets. The primary market, i.e. for the sale of new markets, and the secondary market for already existing securities. The capital market, which is the market for the issue and trade of long-term securities, on one hand and the money market, i.e. the one of short-term securities, on the other hand,
In general terms, the money market is the market where liquid and short-term borrowing and lending take place. The lending of funds in this market constitutes short-term investments. In a certain sense all bank notes, current accounts, cheque accounts, etc. belong to the money market.
In financial market terms, the money market exists for the purpose of issuing and trading of short-term instruments, that is, instruments where the term remaining from the date when trading takes place to the date of redemption of the loan represented by die instrument (commonly referred to as the "term to maturity"), is of a short-term nature. In theory, this term for classification as a money market instrument is given as one year. In practice, however (especially in South Africa), instruments with a term to maturity of three years or less are normally classified as money market instruments although this is not a hard and fast rule.
For the purpose of regulation, the classical typology of Financial Markets recognizes the following major distinctions :

the inter-bank and credit markets
the Money Market ;
the Equity Market ;
the Foreign Exchange Market ;
the Bond Market (for Government bonds, Corporate bonds, Eurobond market, structured bonds, etc.) ;
the Derivatives Market: ( for Futures, Swaps and Options)

Apart from the above mentioned categories, an other important distinction is established between the domestic financial markets and the international financial markets.

The institutional framework for the regulation of Financial Markets.

A financial system cannot be effective without an adequate regulatory framework. For a financial system to be effective and promote healthy economic development, it is important to put in place a sound legal and institutional framework. Various strategies and approaches are generally considered by experts for the development of financial systems. Two major strategies commonly considered are the "evolutionary" and the "proactive" approaches. Other experts have made a distinction between the "go slow" versus the "big bang" approach.
The pro-active strategy provides legal, regulatory and prudential framework which accelerates financial market development through mechanisms, institutions and financial instruments set up for this purpose. This strategy is considered as the appropriate approach for African and other developing countries for three main reasons:

Inadequate neutral incentive environment and market forces that are insufficiently strong for financial markets to develop by themselves.
Lack of institution-building capacity to determine the pace and strength of financial markets development.
Need for flexibility to allow for the use of the most efficient institutional set-up, required training infrastructure and choice of technology that is most suited to the local conditions and level of development.

The Rationale, Principles and Objectives of Financial Markets Regulation

1. The necessity for a Financial Market Regulation

That the borrower will not be able to repay the money ;
That the lender is receiving a fixed rate on his investment while market rates fluctuate in such a way that the yield on his initial investment is now below current market related rates ;
That the value of the capital invested could decrease due to movements in the market. In order to clearly define the rights and obligations of investors, borrowers, operators and intermediaries involved in a financial system and who operate under contractual relationship, it is of the highest importance to develop a cohesive and comprehensive legal and regulatory framework.

The stakes involved in the running of a country's financial markets are very high and it would be deeply irresponsible to apply the rule of "laisser-faire" in this very sensitive sector. In case some thing would go wrong or the financial system could undergo a serious crisis, it would result into a total collapse of the entire economy.

Such a framework should encourage discipline and timely enforcement of contracts, fostering responsibilities and prudent behaviour on both sides of the financial transaction. For a country's market to develop and operate efficiently, the legislative and regulatory framework should incorporate rules on trading, intermediation, information disclosure as well as strict sanctions against defaulters and cheaters.

2. The Rationale of Financial Markets Regulation

The rationale underlying the financial market regulation is the general philosophy and ideological background pertaining to a specific country's economic orientation, and the type of economic system adopted by the country's leadership. At present, most of the countries covered by the study are characterized by a "market oriented " economy. However, some of these countries have been under a centrally planned economy until the 1990s when they dramatically changed their economic orientation. It is the case of Tanzania, Mozambique and Angola. The changes were particularly due to persistent deficits in public budget and their inability to support the considerable burden of state owned companies unable to achieve the target economic performance. This new orientation facilitated the development of more diversified and active financial systems, leading to the creation of Financial markets in Tanzania and Mozambique. Financial Markets have their own unique characteristics and financial operators differ from one country to an other. The financial market framework should facilitate rather than impede the efficient operation of the financial system.
The Principles of Regulation

In theory, there is a distinction between general and specific principles. The following general principles are widely recognized for the formulation of an effective regulatory process:

Every regulatory arrangement should be related explicitly to one or more objectives identified;
All regulatory arrangements should be justified with respect to their cost-efficiency;
The cost of regulatory arrangements should be distributed equitably ;
All regulatory arrangements should be sufficiently flexible, in the sense of being amenable to changes in markets, competition and the evolution of the financial system ;
Regulatory arrangements should be practitioners- based.

Specific principles are identified as follows:

there is a need to adopt a "functional" as well as an "institutional" approach ;
the coordination of regulation by different authorities and agencies will help to achieve consistency ;
there should be a presumption in favour of a limited number of regulatory agencies /authorities.

In practice, the institutional and functional approaches need to be employed in parallel because regulatory authorities are concerned with the soundness of institutions, as well as the way in which services are provided.

b. Principles related to the market efficiency :

(a) the promotion of a maximum level of competition among market participants in the financial system, and (b) the securing of competitive neutrality between actual or potential suppliers of financial services. Competitiveness is likely to enhance market efficiency, which in turn causes the removal of restrictive practices that could impair trading in financial assets and the rationalization of market activity.

c. Principles related to market stability :

These principles are expected to contribute to the promotion of a high measure of stability in the financial system and an appropriate degree of safety and soundness in the financial institutions. There should be incentives for proper assessment and management of risk. It is necessary to impose acceptable minimum prudential standards to be observed in respect of risk management by all financial market participants.

d. Principles related to conflict conciliation :

Conflict conciliatory principles are designed to resolve potential conflicts arising between regulatory principles themselves. They would involve an integrated approach, aiming at the simultaneous achievement of regulatory objectives, and a target-instrument procedure for the selection of key regulatory instruments in order to facilitate the implementation of an integrated approach.

The Objectives of Financial Markets Regulation

For a Financial Markets system to perform to its highest capacity and level, regulation need to be both effective (i.e. to achieve its objectives) and efficient (i.e. to be cost effective in the use of its resources).

The economic dimension of a financial markets system requires that regulation should not impose unwarranted costs on the economy and consumers, nor impair the efficiency of financial markets. It is therefore necessary to consider a cost-benefits analysis exercise to assess the regulatory requirements.

The more complex a financial market is and more business operators increase, the regulatory process becomes more demanding and requires more specific objectives. Efficient financial regulation requires a multi-dimensional approach and a more optimizing process.

1. The overall objective of financial markets regulation:

The ultimate objective of financial markets regulation is to achieve the highest degree of economic efficiency and the best consumer protection in the economy.

2. Specific objectives:

to secure the stability of the financial system.

to ensure institutional safety and soundness.

to promote consumers' protection:

Concluding Remarks

In all Southern African countries, as it is in all countries of the world, the financial system is more regulated than any other industry. On the consumer protection grounds and others highlighted in this study, it is universally accepted that this should be so. Existing empirical evidence suggests that regulatory arrangements have a powerful impact on the size, structure and efficiency of financial systems, the business operations of financial institutions and markets, and on competitive conditions in the systems.

The success of a financial markets regulation depends basically on the capacity of the regulators to define the objectives of the regulation and also on the way the regulatory arrangements are related to their objectives.

Some of the countries in the Southern African Region which were able to promote a dynamic and effective regulatory framework, such as Botswana, Namibia, Mauritius, Zambia, Zimbabwe and in particular South Africa, are benefiting from the positive development of financial markets, with an unprecedented flow of capital from foreign investors.

However the financial systems in the region are still limited, in terms of the number of operators, quantity and quality of instruments and the depth of the systems. And there is still need to develop regulatory institutions, structures and mechanisms that can maximize the explicit objectives of regulation while minimizing the costs of services.

PPI Compensation Claims - Significance of Financial Services Bill For PPI Claimants

noreply@blogger.com (combor) — Sat, 15 Feb 2014 08:47:00 +0000

Just a few days back, on 19th November 2009, UK government rolled out a bill, which is bound to bring substantial changes in the way entire UK financial system works. Although, with its main thrust to regulate the financial agencies as far as UK economy is concerned, PPI claimants are bound to derive maximum advantage from the mentioned bill.

As one of the most vocal national dailies of UK has put the bill before the nation stating that it is all set to deliver significant reforms at the structural level, the bill is expected to provide people with greater rights and will result in enhanced information for consumers as a consequence.

The main thrust of the bill, however remains to lend strength to the overall system by tightly regulating the banks thus making the system safer and more robust in the near future. It aims at bringing significant changes in the system at subtle level while reforming the banks in terms of operations. By the term reforming it clearly means to make them efficient and work for the better of the masses.

Chancellor of the Exchequer Remark

The above stated intention is substantiated in one of the recent comments made by Chancellor of the Exchequer, Alistair Darling. He says "From the outset of the global financial crisis two years ago, the Government has taken decisive, innovative steps to protect the savings of British families and stabilise the economy".

He also reiterated the importance of learning from the mistakes committed by the global baking practices in general. Like all banks around the world, British banks also missed to tackle the perennial problems of the people in general. As far his statements are concerned, he particularly pointed towards steering away the turbulent economy through subtle maneuvers at financial level.

In his words, "The Bill we are introducing today is central to the Government's reform agenda that seeks to empower consumers and make sure that, in the future, taxpayers will not be called on to protect banks from the consequences of their actions."

The Financial Bill

Let us turn our attention towards The Financial Bill by going through its points to analyse them later.

Granting of new powers to the consumers where they can collectively challenge banks in court.
Firms are supposed to develop 'living wills' in order to make consumers better understand the risks involved in the businesses of banks.
Avoiding excessive risk taking measures by inflicting tougher rules on pay and bonuses.
Creating Council for Financial Stability and granting enhanced powers to Financial Services Authority.

Key Feature

The bill clearly vests increased powers to the regulatory bodies thus making the government role in regulating financial matters vociferous.

Advantages for PPI Claimants

As more financial regulation has been clearly stated in the bill, this means more autonomy to the regulatory bodies in UK. As PPI mis-selling was largely done at the behest of banks' fraudulent practices, PPI claimant can now claim to get his money back with interest. As payment protection insurance was intended to provide relief in case of some unforeseen circumstances with an individual, the same was grossly misused by the banks to their advantage. However, in today's changed scenario, one can easily fight ones cause pertaining to PPI compensation claims.

Greater Protection

One of the major benefits, which PPI claimants get through the decision is the banning of unsolicited credit card cheques, which clearly states that a credit card company cannot force their customers to borrow more than they can afford.

As FSA (Financial Services Authority) is granted more powers to exercise, new body in the name of Money Guidance service to be launhced in 2010 is bound to make people with PPI compensation claims more informed and powerful.

Car Title Loans: Choosing the Right Financial Service

noreply@blogger.com (combor) — Fri, 14 Feb 2014 11:07:00 +0000

How is this a good investment for both the borrower and the title loan company? It is an excellent investment for the borrower. This is why: at this point of time, let's assume the borrower is in some kind of financial disposition. That means the borrower may have lost their job, can't afford to pay their rent, may need money for their child's school tuition; there could be a number of possibilities why the borrower is in search for instant cash. Depending on the borrower's vehicle value, the borrower can receive up to whatever the maximum the loan company may offer. Some loan companies offer up to $100,000 and others may offer lower loans of up to $5,000. Obviously if the borrower is driving a Mercedes or BMW they will be looking at a larger loan value, but every title loan company is different.

Let's look at the other side of the spectrum. How is this a good investment for the loan company? If we scroll back to the first few sentences in this article, we can see that the title loan company "uses the borrower's vehicle title as collateral during the loan process". What does this mean? This means that the borrower has handed over their vehicle title (document of ownership of the vehicle) to the title loan company. During the loan process, the title loan company collects interest. Again, all companies are different. Some companies use high interest rates, and other companies use low interest rates. Of course nobody would want high interest rates, but the loan companies that may use these high interest rates, probably also give more incentives to the borrowers. What are the incentives? It depends on the company, but it could mean an extended loan repayment process of up to "x" amount of months/years. It could mean the loan company is more lenient on the amount of money finalized in the loan.

Back to why this is a good investment for a title loan company (for all the people who read this and may want to begin their own title companies). If by the end of the loan repayment process, the borrower cannot come up with the money, and the company has been very lenient with multiple loan extensions. The company legally receives the collateral of the borrower's vehicle title. Meaning the company receives ownership of their vehicle. The company can either sell the vehicle or turn it over to collections. So are car title loan companies a scam? Absolutely, NOT. The borrower just has to be careful with their own personal finances. They must know that they have to treat the loan like their monthly rent. A borrower can also pay-off their loan as well. There are no restrictions on paying a loan. He or she could choose to pay it monthly, or pay it off all in a lump-sum. Just like every situation, the sooner the better.

Car Title Loans: The Pros and Cons
It is very helpful to analyze the pros and cons of a car title loan before you decide to take a loan out. Learning about your financial investment before you finalize anything is a great financial tool to success. A borrower must consider their options fully before making a decision.

If you go online to most car title loan companies and read their "about us", "apply-now", "FAQ" pages you will see how bias their information really is. This is called false marketing. Just like the terminology "false advertising" most of these companies never state the entire truth about their company. They may hire outsourced journalists and columnists to write their content. Read the content before you make your final decision. If the content is cheesy and uses imagery in their content, the company is probably bullshit. Writing jargon in articles, is not something to brag about, but come on? Really? This is 100% needed! An example of poor imagery content may be: "Tired of thunderstorms and rainy days, get a car title loan today, and turn your day into a bright-sun shiny day". The content shouldn't be a story, if the borrowers really wanted to read a story, they could take their "nooks" out and read an article from "Reader's Digest". The content should be straight to the point, to get the borrowers' to want to receive a loan from the car title loan company.

The Pros of Car Title Loans
The most clear-stated pro would be the advantage of receiving instant cash. Anyone could walk into their local 7-11 or convenient store and purchase a state lottery ticket. That process is extremely easy; however the probability of receiving a large amount of cash instantly is extremely low. The probability of receiving instant cash at your local auto loan company is extremely high. Unlike traditional banks, and credit bureaus, another advantage of the car title loan industry is NO CREDIT CHECKS. Most of the time, borrowers come to tile loan companies because they're stuck in financial situations. Their credits scores are usually poor at this point, after collections have had to continuously made adjustments because they couldn't pay their bills on time. That is a major "Pro" for a car loan company. No matter what the borrower's credit score may be, the borrower is still qualified to receive a car title loan. Another pro of the car title loan industry (which was actually mentioned previously in the article) is since the borrower is putting their car loan as collateral, it is easy to convince the lender to extend the loan to you.

How does a borrower qualify? Like stated before, there is NO CREDIT CHECKS, therefore the borrower is already pre-qualified for a loan at this point. However, the borrower must meet the following requirements to receive a car title loan. The borrower must be over the age of 18 years old, the borrower must be the owner of their vehicle title, they must have already paid off their vehicle liens-free, and they must have a valid driver's license or state identification card.

How long does the application process take? The simplicity and speediness of the application process is another "pro" or advantage for the car title loan. The average online application just asks basic personal questions pertaining to the borrower's vehicle, and location. The application roughly takes about a minute or less to complete. Most companies get back to the borrower within a few minutes of submitting an application. Once the loan representatives read through the borrower's application information, they quickly give the borrower a call based on the number provided in the app, and go over the details and process of obtaining a loan.

How long does it take to receive the loan? Every company depends and probably has a different loan process, but it usually takes within 24 hours or less to receive the "instant cash". That is another advantage, or "pro" of the loan industry. Traditional banks, and credit bureaus, can take up to a few weeks to finalize the loans. By that time, the borrowers would have already lost their homes, been in serious debt, etc. Taking out a car title loan is the best financial choice. Check.

The Cons of Car Title Loans
Now that we looked at the Pros, let's look at the Cons of car title loans. Honestly, no financial decision is 100% perfect. Nothing is perfect, but some things get close. If this article was based on telling the reader that the car loan industry is the best financial choice, then the article would be full of shit. That's why the title is "key-worded" "Choosing the 'RIGHT' financial service. Not the BEST. The "Right" financial service. Remember, nothing ever is perfect, especially in finances, but some things come close.

The cons of a car title loan are indeed straightforward. The borrower is basically handing the ownership of their personal transportation over to the car loan company as collateral in order to receive a cash loan. As stated before, the borrower can face extremely high interest rates- depending on the company. If you have poor to no credit because of your financial situation, and learn that you cannot pay-off the loan you will be stripped of your vehicle, and instead of being able to alleviate your debt, you will fall into even more debt. At this point, the collections agencies will be completely done with you. The saying "follow the directions, and it'll turn out right" is extremely important and accurate when obtaining a car title loan. A borrower may also be at risk of taking out a loan from a disreputable company that will charge extra fees on top of the accrued interest, or instant hidden feeds that were written in the fine print in the contracts, that are almost impossible to see, unless observed carefully with a magnified glass. Thus, a borrower must be careful before making a finalized decision in any financial situation, especially when their biggest ticket possession is being used as collateral.

Now that this article has closely examined the Pros and Cons of the car loan industry, it is up to the borrower to make the right financial decision. The final decision is the hardest part. The final step is always the hardest part because the borrower now has to make a final decision whether he or she wants to take out a car title loan or choose to use another financial recourse. Honestly, after everything stated in this article, it would seem to be that choosing a car title loan is the right financial service. Again, banks and credit bureaus take too long to process a loan, so why choose them? If the borrower is in need of fast cash, they might want to consider choosing a car title loan.

Financial Services In Global Trade

noreply@blogger.com (combor) — Thu, 13 Feb 2014 14:28:00 +0000

The efficient management of cash, assets, credit, and financial instruments to conduct international trade is trade finance. Trade finance is the process by which working capital is provided to ensure smooth movement of trade. There are a number of financial instruments utilized in trade finance like letters of credit or L/C, bill of exchange, guarantees, trade credit insurance, and documentary collection.

Why Use A Letter Of Credit?

In a letter of credit, the bank acts as a mediator between the importer and exporter. The letter of credit is issued by the bank to the exporter guaranteeing to pay the money when he meets the criteria laid out in the letter of credit. The duration of the letter of credit is for the length of the transaction and ends when the money is paid to the exporter or the seller. The L/C does not protect the beneficiary from the loss that he may have to endure if the deal does not go through. The letter of credit can be used not only in the selling of goods but also of services. The buyer sends the letter of credit from his bank to the exporter's bank thereby making the buyer's bank responsible for timely payment of his money.

Common Financial Instruments

Bank guarantee is also another financial instrument in which the bank guarantees to pay the beneficiary in the event the buyer defaults on the payment. The difference from a letter of credit is that the bank guarantee comes into play only when the buyer defaults. Another financial instrument used commonly is documentary collection wherein the seller forwards the sale documents to the buyer's bank with conditions attached as to when it can be released for collection of goods from the shipper. A bill of exchange acts like a cheque or demand draft and is a promise to pay the said sum of money at a prearranged date to the person or company mentioned in the bill of exchange. Trade credit insurance guarantees protection from defaulting buyers and an unstable political situation.

The Need For Financial Services

The financial services provided by the different financial agencies are many. The various sectors under the financial industry are mainly the banks, the insurance companies, private bankers, credit card companies, investment funds, brokerage firms, wealth management services, hedge fund management, mortgage services, the list is limitless. These financial services are needed to help you to manage your funds wisely. All of us work hard to make sufficient money to meet our needs and to save for our old age. Financial services help you to invest this money wisely and according to the rules of the land, so that they are available to you when needed. It helps you to actually sit down and study your financial picture and make realistic plans for the future.

Financial Literacy - Ways of Making People Aware of Financial Services

noreply@blogger.com (combor) — Wed, 12 Feb 2014 18:58:00 +0000

Everyone needs financial services, even if they do not have a single penny. This is because it is impossible in this day and age to live without money and, hence, without financial services. However, a tiny fraction of the world population uses financial services, because outreach of banks and other financial institutions is small and also because people simply do not know about this 'need'.

Urban dwellers often use formal financial services offered by banks, insurance firms, small credit agencies, but people in rural areas, especially those in developing countries, rarely do. Instead, they rely on informal financial services, which have plenty of downsides.

For instance, loan sharks are rampant in areas where formal financial services are lacking, and these opportunistic lenders simply rip money off the borrowers. In many areas, where formal saving account services are scarce, communities have come together to form informal saving groups, however, they lack proper book keeping and security is a concern.

It is all the more important, as a result, to teach people about the benefits and variety of financial services available to them, but that is not an easy task. In less developed countries, the main question is, how can we reach all these people, scattered over large geographical areas? To make matters more difficult:

They have different levels of formal education,
Speak a variety of languages, and,
Have disparate access to media.

Here are some basic ideas that can help convey some measure of utility to different audiences at a national or regional level.

Channels for Financial Literacy Campaigns

Training sessions, workshops, ads, etc., can be delivered through the following channels:

Radio - ubiquitous nature helps reach the masses
National TV network - good geographical reach and low cost of subscription
Mobile phones - especially useful in countries with mobile banking
Local convenience stores and post offices - suitable for distribution of pamphlets.

While it may be easier to develop ads and place them on the media, training sessions that involve personal contact, entertainment and proper explanation of pros and cons of various financial services will have a lasting impact on the audience.

Financial Literacy Tools

Money management should be fun. Some tools trainers can rely humor on to engage the audience as well as ensure they understand and remember the training content. Here are some tools that can come in handy, when training sessions are not the answer:

Ad campaigns - run on radio, TV, newspapers, magazines, and other media,
Group discussions in community centers to determine the kinds of problems financial services can solve for households,
Mobile phone games are an easy way to train newcomers in this field.
Books and pamphlets - in local language, accompanied with pictorial depictions where necessary.

Good literacy campaigns should lead to an increase in usage of banking services of the community. This will not only benefit the individuals in the community, but also help grow the local industry.

Finding the Right Commercial Financial Services

noreply@blogger.com (combor) — Tue, 11 Feb 2014 21:40:00 +0000

In contrast to residential or independent financial services, commercial financial services focus on serving those who are in private companies, government agencies and non-profit organizations. There are many different types of commercial financial services available, and if you're a new business owner you may feel overwhelmed by all of the options.

The easiest place to start with your decision is finding a place that will handle your business bank account. In order to get your business account with your business name, you'll first need to register a business license and then get a fictitious business name statement if you are doing business in a name other than your own. Once you are armed with this paperwork, you can start to shop for a bank to use.

Your choice of bank will largely depend on what type of business you are running. If you need to ability to accept credit cards, you'll need to find a bank that offers merchant services. If you'll only be accepting cash, this won't be as important.

In addition to a bank account, some small businesses may require commercial financial lending services. If you need to borrow money in order to fund your business, this applies to you. You can get a loan to grow your business from several different sources. All of these loans will require you to develop a lengthy business plan so you can show the investors exactly what you intend to do with the money and how you intend to ensure the growth of the business.

The first source for commercial financial lending services is through your bank or another banking institution. Bank direct loans offer competitive rates and it can be helpful to have your finances and your loan all in one place.

Another source for commercial loans is through a government guaranteed loan. These loans are available through the Small Business Administration. Although the SBA itself does not fund the loan, they provide counseling and coaching to help you perfect your loan presentation. Once you create the presentation, the SBA will recommend you to a lending institution. Their recommendation can make a huge difference in whether or not you get the loan.

A third lending option is through private investors. These are often called angel investors and they can lend you large amounts of money in order to help start your business. These individuals or small groups are looking to help entrepreneurs make their start. Many of them have already had business success and are looking to "spread the wealth." You can find private investment groups online or by talking with the Chamber of Commerce or Small Business Administration in your area.

Whether you borrow money or not, you'll need a small business accountant to help you manage your finances. Unless you're a financial professional yourself, it's a good idea to use this type of commercial financial service. An accountant can help show you how to better manage your money and get your business into the black as soon as possible.

How Reputable Are Debt Settlement Services?

noreply@blogger.com (combor) — Sun, 09 Feb 2014 12:03:00 +0000

The world of financial services has very few loyal fans these days. With a seemingly never ending stream of scandals, the level of trust towards those that broker and represent consumer's money is very low. It can sometimes seem like it only takes one very bad company to mar an entire industry.

There are reasons for this. While money is a very real thing, the work that surrounds managing it and moving it is very abstract. Most of the work and evidence of transactions exists only in computers or on paper. This lack of a tangible product can lead to very aggressive suspicion.

Sadly, the lack of anything but paperwork and spreadsheets has given criminals and scam artists a new medium to work in. Because they are targeting those who need help the most, it is important to try and discover how reputable any debt settlement agency really is.

The best way is to find a local company. If they have been ineffective in settling or are just scamming their customers, then people in your area will know about them. Even if there are lawsuits or investigations pending, the business may still remain open for some time. Do not assume just because they are open that they are legitimate.

You will also want to check with your state's Attorney General and the Better Business Bureau to make sure that the company you are considering is not currently involved in any pending actions and responds well to complaints lodged against them.

The media and many people in the financial world tend to look down on debt settlement companies and usually only report on the disasters they are involved in. There are many success stories and many good companies out there willing to help. It takes a little extra effort, but finding a reputable settlement agency is not as difficult as it may seem.

Resurgence of Indian Financial Markets

noreply@blogger.com (combor) — Sat, 08 Feb 2014 11:10:00 +0000

India managed to display tremendous resilience in the economic downturn which managed to have a big impact on some of the most developed countries in the world. The impact of the global recession was felt in India as well, however it was not on the scale of what was evident in many Asian countries as well as countries like America, Japan and other European countries.

The recently concluded General Elections in India brought back the UPA Government in power with a comfortable majority and minus the support of Left parties. It was a difficult going for the previous UPA Government as it had an ally in Left popular for its obstructive policies which were a hindrance to the economic development of India. Now that the new Government is in place India can look forward to coming out of the recession and move ahead with its march towards economic prosperity.

Signs of this upward march have started surfacing with a strong upward rally by the stock market, renewed foreign investor confidence, increased consumer spending, more job creations, etc. Moody's a premier rating agency has come out in support of this revival in its report post the election results. It has given a Thumbs Up to the stable outlook of India. "This unexpected outcome provides scope for rationalizing spending, pushing ahead with disinvestment's, and key reforms," the report said.

Following the election, Morgan Stanley, one of the world's largest diversified financial services company raised India's growth forecast to 5.8 percent from 4.4 percent in the fiscal year ending March 2010.

"India can actually outperform at the margin versus the rest of Asia as it has a more balanced economy," Morgan Stanley Asia chairman Stephen Roach told an earlier media conference, referring to India's limited reliance on exports.

He said for the first time in 12 years he was more optimistic on India than China, as the latter had pushed its export-led model too far and left itself too dependent on external factors.

The worse it seems is over for India and the country is back on the tracks of economic development. Government will have to ensure that it continues with good economic policies which takes India to greater heights.

Please visit: http://www.surfindia.com/finance/

College Financial Services for Prospective Scholars of Tomorrow

noreply@blogger.com (combor) — Fri, 07 Feb 2014 10:22:00 +0000

College education for higher studies is like a project for students and parents alike that should be pursued with a systematic plan successfully culminating in the completion of the course that necessitates a stay in the college campus.

During this course at college, one of the major hurdles is the financing that is required by the student to complete his education with the appropriate grades finishing his/her goal of obtaining a appropriate job after college.

Now, after passing his/her term exams every time the student's requirement is usually the term fees to continue to the next semester and if his parents are unable to pay the same his alternative is to look for financial services from good financial consulting services.

Again, such a financial firm, handling the College financial services scheme, usually has elaborate models with different instruments for implementation of the financial options for students based on the individual's merit.

Among the numerous options that are available for students, some of the schemes are for those that are good at their studies (the ones whose funding is in the interest of the Federal agencies), then those that are financially better-off (that is they can repay the loan over a period of time) and finally those, that are poor and that may take a while!

While, all of them need assistance the above criteria is the first prescribed to disseminate the loans to students and their parents!

However, in the long run all qualifiers manage to get the aid and get the eligibility for financial assistance to take up and complete their college study.

In most cases, there are special government aided packages that will be put in front of the students in the order of priority stated above and that will again be drafted for the convenience of the respective students and they will be able to accordingly apply for the respective financial assistance from the state or the central government.

Thus in the final analysis, students going for education in college manage to study and pay their fees with the help their own selves first, i.e. by getting good grades which solve half of the problem - qualifying them for a good college and the aid packages that come with the respective college and score.

Subsequently, it is the financial assistance rendered by good financial services firms that work and research their links with both federal and state funding authorities to enable the possibilities for students and render them free and or nominal aid for completing their studies at college.

Financial Advisers - New Blood Needed?

noreply@blogger.com (combor) — Thu, 06 Feb 2014 06:38:00 +0000

Recent surveys have shown that the majority of financial advisers or IFA's in the UK financial services industry are 50 plus. The recruitment of new financial advisers or IFA's is central to the financial industry yet it seem as though the industry in general is loathe to do anything along the lines of the public sector recruitment drives of young graduates or high quality professionals from other industries.

So, what can be done to attract the amount of new blood the financial advisory industry needs post or even pre RDR (retail distribution review) in 2012?

The initial stumbling block, we at XL-Recruitment, the Premier UK financial services recruitment agency, believe is that the financial industry in itself is not made an attractive proposition to pupils at school or college. How many of you can remember your careers adviser pushing you towards financial services as a worthy career? I would be willing to bet that almost none of you would remember it if they did. Financial services and the industry as a whole is seen as a grey industry, a required service but not made to look as glamorous as say, a lawyer, a pilot or a fireman. Financial advisers or IFA's, although many work for some of the largest blue chip employers out there, are just not highly recognized. There are not any big industry awards for financial advisers or IFA's and its not highly publicized unless there is a criminal offence committed of some sort, an investment or mortgage fraud, say.

The best way of recruiting the new blood that the Financial services industry needs is for there to be a nationally recognized qualification ladder of escalating quality, starting with some sort of financial A level or college course maybe and ending with a degree or post graduate qualification, a recognized way of making an entrance into financial services via qualification, if you will. Of course this would have to be backed up by a graduate intake of some sort such as those undertaken by other industries for it to be successful and for the students to see a tangible reward to be strived for. Becoming a financial adviser or IFA in particular is not a poorly paid position, some make considerable incomes, so banks, IFA organizations and the assurance societies should be making an effort to attract the best of the young talent out there and making financial advisory roles seem an attractive career choice. Until they do, financial services and the industry in general will always be seen as the older generation's career choice or something that people fall into rather than make a conscious decision to undertake. Financial services recruitment will always be a poor cousin to the investment banks or the public sector until we are seen to be doing something to make the industry more attractive right from an early age.

Financial Reform - The Movement Has Begun

noreply@blogger.com (combor) — Wed, 05 Feb 2014 14:29:00 +0000

Our current financial crisis has spawned an astounding amount of state and federal legislation aimed squarely at the financial services industry. Legislators are determined to prevent us from making the same mistakes twice, and are vowing to protect consumers from what they refer to as "predatory lending". But how far should these new policies reach? At what point do we consider that government regulation has overstepped the boundaries of private business?

It seems that legislators have tried to tackle all of the financial sector issues at once. From Big bank bailouts, to corporate compensation, to an all out assault on short term lending. No doubt that many of these areas need further regulation and intervention, but it's important that we write laws that make sense for consumers as well as the entities that serve them. The general public will continue to need access to credit and it is imperative that we write smart policies that encourage responsible lending to responsible individuals.

Consumer Financial Protection Agency (CFPA)

In October we saw this proposed agency clear a major hurdle. Its passage through the US House of Representatives moves it one step closer to becoming the agency that will take financial sector reform head-on. It will be responsible for rules regarding credit cards and other financial services products as well as the pursuit of sweeping changes to the short-term lending industry. But many feel that the agency's power will be too broad. And with a growing list of exemptions and loopholes, is this new agency truly protecting the consumer or will it cater to special interest groups?

Short Term Lending Changes

A major focus of the CFPA will be the continued regulation and possible elimination of the payday lending industry. This type of short term lending is considered to be "abusive" and "predatory" by many lawmakers and has been cited as a key reason Congress needs to create a separate watchdog for consumer financial products. Additionally, attention is shifting to the regulation of bank overdraft fees and other financial industry charges.

The current financial crisis makes it easy to see that we are in need of substantial industry reform. It will take our best financial minds to devise long-term solutions for our current issues. The only workable fixes are those that create a fair marketplace for both financial institutions and consumers. Above all, lawmakers must focus on the passage of regulations that get credit into the hands of people and organizations that need it.

Financial Services Security Frauds In India - A Threat Or Just A Myth

noreply@blogger.com (combor) — Tue, 04 Feb 2014 08:19:00 +0000

What is the nature of threat?

Recent survey by KPMG says that there is a digression in the Industry nature which is facing security threats .Some four years back it was the IT outsourcing industry and retail industry which were most prone to data theft. But now the nature has changed. Most of the frauds uncovered recently have been faced by companies dealing in financial services. Banking/Insurance/mutual funds/AMCs are the first category of company facing threats. The next is NBFCs, Investment Banks, Venture Capitalists, Private Equity.the other categories mentioned in the survey are - Media/Software, Retail/Consumer products, Foods/Beverages, transportation, Power/energy.
The threat perception of these sectors is generally higher mainly on account of the nature of their businesses and high growth rates achieved by these sectors in the last few years.

Why are the Organizations threatened by fraud?

According to a survey lack of ethical values has been identified as one of the main reasons for frauds in organizations. Some of the other reasons can be enumerated as follows:

- dissatisfaction among employees

- poor internal controls

- lack of ethical values

- collusion between vendors and employees

- inadequate background checks on prospective employees

management override of control

How were these frauds detected?

Majority of these frauds were detected by a company's own internal audit or by a third party. Some of the other ways in which an organization lost its revenue and it came to light has been through:

- expense accounts

- false or incorrect information

- personal use of official assets

- forged documents

- secret commissions / kickbacks

- cheque forgery

- forged documents

- false financial statements

- IP infringement

What is the attitude of organizations towards frauds?

Earlier the trend was that the organizations seemed to be more reactive when these frauds occurred. But over the years there has been a shift in the attitude of organizations towards fraud. Now they are becoming increasingly proactive in their approach.
Most of these companies now have either a code of conduct or an ethics policy in place as a proactive measure to mitigate risk of fraud.

How can the frauds risks be mitigated?

Most of the companies in India are now undertaking strict steps in ensuring the minimum occurrence of fraud in outsourcing financial services. Some of them are:

- Pre- employment background check

- Regular fraud risks assessment

- Data analysis tools

- Fraud management systems

- Data mining tool

In addition all the individual employees are now being provided with proper systems to inform any kind of fraud threat at the right earnest. Some of them are:

- Emails

- Direct approach

- Anonymous letter/call

- Hotlines

- Grapevine

What is the outcome of the frauds -real as well as perceived?

Outsourcing to India, China, Russia, etc is really no different from sending data to what were once called service bureaus or what we now call application service providers. It's been done for years and the onus has always been on the financial services firm to make sure it does its due diligence before choosing a partner. The security threats, these vendors face abroad are the same threats securities firms themselves face when data is housed on site. As a result, strong firewalls and a formal data security strategy must be in place to prevent hacking, viruses or misappropriation of data. The primary concern, we found is that executives don't like the idea of sending their data to a location where their competitors' data is also being stored. This is an understandable concern, but again, it is no different from sending your back-office data to ADP, which processes a good deal of Industry's trades, or to Sun Gard for data storage and back-up.

The real fear revolves around the mistrust of people and what they might do with the data -such as selling it to a competitor. There are certainly unscrupulous people everywhere-and quite a few in the US securities industry. Anyone can steal information or data and sell it to competitors or use it for their own personal advantage. However, it's no more or less likely to happen overseas. The concerns around outsourcing security have been exaggerated. This issue revolves more around the anger of losing American jobs, fear of the unknown, and, unfortunately, slight prejudice.

How is India fighting back?

Recent sting operation in UK done by Channel4 has exposed the seamier side of doing outsourcing business with India. However in India there were mixed reactions.

The Indian outsourcing trade body, Nasscom, and some senior company executives in India were worried that the program, and sting operations in past, would damage the country's reputation as a location with an abundant supply of low-cost, skilled labor that delivers quality service to overseas customers. Nasscom said that it had asked the Channel 4 to provide details of the allegations but that the request had so far been refused. "We are concerned about the verifiability of such stories, especially sting operations where monetary inducements were provided," said Kiran Karnik, president of Nasscom.

Industry executives in India are suggesting that repeated sting operations are being undertaken against the Indian Industry with the express intention of maligning its reputation. The fear among the Indian companies is that western customers will hesitate to outsource after India is repeatedly projected as an unsafe outsourcing destination. Much to its embarrassment the Industry has been hit lately by a series of security breaches.

The industry is scrambling to combat the perception of fraud. Companies have joined in setting up a national skills registry, an online registry for industry workers that would contain information about individual worker's professional, educational and personal backgrounds. The information is validated by an independent agency but owned by an individual. So far, 25000 workers have registered for independent checks and biometric identification established earlier this year.

Whether real or perceived no Industry can be completely free from fraud. The opportunity of outsourcing financial services to India is tremendous. Next ten years will see an exponential growth in the industry. So don't let a few cases dampen your spirits of utilizing the tremendous power of India as an outsourcing destination.

The Benefits of Financial Factoring

noreply@blogger.com (combor) — Mon, 03 Feb 2014 11:21:00 +0000

When the global recession struck, the consequences of that major event were far reaching indeed and so the consequences were felt all the way down the food chain of the business world. The banks, eager to put the brakes on the rate at which they were losing money, decided that they would simply close their doors to new borrowers and so blanket refusal of loan applications was implemented.

This in turn causes major problems for business entrepreneurs who struggled to gain access to the requisite amounts of capital, both working and start up, necessary to found and maintain a viable corporate entity. This caused an impasse of sorts, with the economy only regenerating at an extremely diminished and sluggish pace indeed.

In an attempt to encourage stimulation of the economy as a whole, a great deal of attention and investment was focused on financial factoring, in order to establish financial factoring companies as a viable option for business owners looking for a decent and reliable source of capital investments.

In a short space of time, the financial factoring agencies no longer required any support or input from their paymasters by virtue of the fact that they were now fully independent and self-sufficient as they had managed to acquire a significant customer base all by themselves.

Business owners were more than relieved by the quality of service provided by these agencies, they were astonished at the sheer range of benefits that such agencies could provide them. No longer was the average business owner forced to wait prolonged periods of time as the banks moved at an excruciatingly slow pace when processing the loan application. Whereas once before the business owner would be waiting for the money for weeks, with factoring agencies the waiting period was reduced to a matter of days.

One of the major problems with the banks and other commercial lenders was just how demanding and inflexible they were about the terms of the loans that they issued. Demanding that the business owner secured assets as collateral, in the event that the business owner was not able to secure assets in this manner the bank would simply refuse outright to issue any additional credit.

On the other hand, factoring agencies effectively gave the client companies free license and reign to raise as many money as they pleased, simply by leveraging their invoices as the means of providing income. Because the value of the capital raised by the factoring of the invoices is directly related to the sales of the company, as the company grows and expands, so too does the amount that can be raised.

Unfortunately, factoring is not without its problems, risks and issues and so it is crucial that the business owner knows these before committing themselves to a legally binding decision with the factoring agency. One potential problem that can arise is the damage sustained to the credibility of the business, as customers are concerned by the fact that the company has to rely upon a collection agency.

The Panama Financial Services Corporation

noreply@blogger.com (combor) — Sun, 02 Feb 2014 13:13:00 +0000

This is a anonymous S.A. Bearer Share Panama Corporation that is additionally licensed by the Panama Government as a financial services corporation. The license is in the name of the Corporation and your name does not appear on the license so privacy is preserved. This license allows the corporation to engage in certain financial activities in Panama. The license does not allow the entity to act as a bank, for this a bank license is required. Banks provide checking accounts, take deposits directly, make loans personal and otherwise, write mortgages etc. You can have another corporate entity contract with your Panama Financial Services Company to engage in activities in Panama that your other corporation may not be allowed to engage in due to it´s domicile jurisdiction and lack of such a license there. This can all be done via e-commerce. Remember offshore derived income is tax free in Panama.
AUTHORIZED ACTIVITIES:

1. General Financial Consulting - In some jurisdictions this is hard to get.

2. Third Party Payment Processing (Online included). This is the provision that is used to allow one to operate a Swedish Credit Union in Panama through a Panama Bank.

3. Factoring - This allows one to operate a factoring company factoring receivables.

4. Leasing - This allows one to do full service leasing.

5. Trading of Gold, Silver and Platinum (they consider this as a buy/sell transaction). If it is wholesale it is Type A License, if it is retail is a Type B License. In this type of Retail License the Directors of the corporation have to be Panamanians and we do provide this and is included in the price. This allows one to be say an E-Gold or E-Bullion merchant.

6. Trading of Foreign Currency. (The first 5 days of each month this type of business must submit a declaration with client data for all transactions over $10,000 to the Financial Analysis Unit in Panama as part of their anti-money laundering program). This would allow one to operate as a money changer service.

7. Debit and Credit Card Management - This allows one to operate a service for third party ATM and Debit cards, processing payments to the cards etc.

NOT AUTHORIZED:

1. Financial Administration Services

2. Debt Collection - you would not be a collection agency.

3. Receive deposits from third party - you are not a bank.

The corporation which holds the license can engage in the above listed authorized activities. In addition the corporation can also engage in any other lawful activity that corporations in general can engage in, it is not restricted to the above activities only.

This is NOT a financial institution per se such as a Bank or Savings and Loan. Such a licensed corporation could be used for payment processing in Tax Free Panama, for a licensed lawful financial entity in another country where there are taxes such as a Swedish Credit Union. You would also be able to hold the funds in a Panama Bank account with all the protections of Panama Bank Secrecy.

A Panama Corporation with such a license, can demonstrate to a Panama Bank or other financial institution that the company is lawfully authorized to manage third party funds inside the corporation bank account or an account it has with another financial institution. If you get challenged by a bank regarding having third party funds in your account this license should prove most helpful since you are lawfully allowed to do so, it is of course going to depend on the individual circumstances and jurisdictions involved.

Banking and Financial Services - Essential Part of Everyone's Life

noreply@blogger.com (combor) — Sat, 01 Feb 2014 06:37:00 +0000

Banking and Financial Services

Nowadays, Banking and Financial Services are an essential part of everyone's life. Every day people use different types of banking and various financial services. Some examples include paying utility bills or insurance premiums, shopping online or through Debit/Credit Cards. These technology driven banking and financial services have simplified transactions and made life easier.

Why Banking and Financial Services?

No one is left untouched by the impact of money. We all have to rely on banking and financial service providers for effective use of our money. Be it lending, investment, or insurance, people need to depend on banking and financial service providers.

Life in the digital age has become somewhat more secure and simpler through the implementation of beneficial banking and finance practices. Different banking services provided by major banks like personal banking, enterprise banking solutions, and investment consultancy help investors properly utilize their money with the aim to grow and gain future financial benefits. There is protection which consumers may be able to obtain to ensure that your investments are protected. Insurance companies provide protection from several uncertainties that may come without notice. Life and non-life insurance covering all kinds of emergencies give people peace of mind.

Apart from that, several financial institutions provide consultancy for the right of investment so that your money is invested in the right place and your can enjoy the maximum possible benefits on your invested money. Your investments may also help in tax savings and other economic benefits.

Credit Services - Economic Relief When You Are in Need

Credit/lending services are among the most popular segment of modern banking and finance industry. We come across several situations in life when we face some sort of cash crunch at a crucial moment in life. Its times like these when banks and lending institutions come to the rescue by offering various credit schemes and loans. In addition to this consumers may also need credit to turn their dreams into reality (like buying a luxury vehicle or a dream house). This is where banking institutions can also assist us.

Credit services may help people by increasing our quality of living. Banks and lending agencies provides credit for almost every need. You can get loans not only to purchase a dream house, or luxury vehicles, but also for emergency medical treatments, higher education, or even a loan for a wedding.

In summary, different types of banking and financial services are an essential need for everyone. One cannot expect to live a comfortable financial life without the right banking and financial services assistance and security.

Licensed Home Care - Benefits of Using a Full Service Agency

noreply@blogger.com (combor) — Fri, 31 Jan 2014 13:30:00 +0000

Choosing the right New Jersey home care agency for your elderly loved one is a crucial decision, not only for them but also for you. It may be difficult to consider placing your parents or relatives into an assisted living facility or nursing home, but you may also decide to hire an agency experienced in home care so that your loved one can stay in his or her home.

Finding the right home care provider should not be taken lightly as it may ultimately entail having someone live in your home. In this case, you want to be sure you have a caregiver who is qualified and professional in delivering assistance to your loved one. You may consider trying to find a care professional yourself, but you may benefit more by going to a full service agency that provides hourly or live in NJ licensed home care aides to you instead.

The benefits of using a full service agency are numerous:

Agencies take care of all the business details you may not know much about. For instance, your agency can provide comprehensive background checks on potential caregivers. It will also make sure your caregiver is certified in the area in which your loved one needs care. The agency also handles many of the bureaucratic and managerial tasks you may not have considered, like performance reviews, training, re-licensing, coaching, hiring and firing.
A full service agency also handles financial matters in home care such as employment taxes, insurance and licensing issues that come with hiring a home healthcare professional in New Jersey. Handling these time-consuming and complex tasks on your own will add to the stress of caring for an elderly loved one.
With an agency, you can also choose whether you want to get someone on an hourly basis or live in, whether you need a home health aide or if you need someone to act more as a companion for your loved one. If your parent or other relative has issues such as dementia or a terminal illness, he or she may benefit by having one specific caregiver at his or her side to fulfill all of their needs.

These are some of the many benefits that come with hiring a full service agency to help you find the right option in home care. Of course the greatest benefit is peace of mind for all concerned.

Ten Questions to Ask a Senior Home Services Agency

noreply@blogger.com (combor) — Wed, 29 Jan 2014 19:45:00 +0000

Finding the right senior home services agency for your elderly loved one can seem like a daunting and stressful task. Fortunately, it doesn't have to be. By asking some direct, pertinent questions, you can learn all you need to know to select the right homecare company.

Here are ten questions to ask before choosing an agency to provide senior home services:

1. How long has the company been providing homecare services and what is its background? Although the number of years in business doesn't always equate to the quality of care, it gives you an idea of the homecare agency's stability and success rate. Research the agency's background to get a clear understanding of its reputation in the community, which includes checking the homecare company's Better Business Bureau ratings.

2. Does the senior home services agency perform background checks on employees? Don't take this one for granted. For the protection of your elderly loved one you need to ensure that the agency performs a thorough background check for arrest records indicating senior abuse, sexual misconduct, DUIs, and other crimes.

3. Are employees bonded and insured? It's important to ask whether the homecare agency has workers' compensation insurance for its employees. This protects you legally and financially if the caregiver is injured in an accident.

4. Can your loved one meet the caregiver before service begins? A professional senior home services agency will allow your loved one to meet and approve the caregiver. This is another step in the process of building trust and letting your loved one know that they have control over their care.

5. Will one caregiver be assigned? Care is almost always better when the same caregiver regularly assists your loved one. This helps create a strong bond, trust, and higher level of comfort with the caregiver.

6. How does the homecare agency hire, train, and review employees? Make sure you understand the entire process to ensure the quality and ongoing education of the caregiver.

7. Does the senior home services agency provide a written plan of care? A plan of care is important because it sets everyone's expectations and goals for the type and amount of homecare services to be provided.

8. Will the agency provide references? Ask for a list of the home caregiver agency's professional references and clients, and take the time to speak with as many of them as you can. After all, your loved one's care and safety will be in its hands.

9. Will the company provide a no-charge, no-obligation assessment? Ask if the homecare agency will visit you and your loved one in his or her living environment. This builds rapport, gives the senior the ability to meet and decide whether the agency is a good fit for them, and enables you to compare one senior home services agency with another.

10. Is the agency licensed by the state? Most states require homecare agencies to be licensed, accredited, and reviewed on a regular basis.

You can ensure your elderly loved one receive the best possible care if you take the time to ask the right questions and do your homework. The sooner you get started the better, so begin your search for a senior home services agency today by visiting http://www.CambrianHomecare.com or calling 877.422.2270.

Social Media and Financial Services - It's Where Your Mortgage Business Needs to Be

noreply@blogger.com (combor) — Tue, 28 Jan 2014 13:17:00 +0000

If you've just read that headline and can't even contemplate why a bunch of daft kids on Facebook could ever be mildly important, let alone pivotal to your business, you might want to have a rethink. The way people interact with each other and how sales are made is changing and more importantly perhaps the rate change is speeding up. Don't be fooled by the dot-com bubble which was well and truly burst in the nineties. The increase in internet sales and social communication is now based on a solid foundation. Figures from ITU which is the UN agency for information and communication technologies reports that currently 82.5% of the UK population have access to the internet, compared to only 26.2% in the years 2000..

At Which Network we get constant feedback from switched on brokers that the time when you could consider Facebook, Twitter and other social networking sites a passing fad is well and truly gone, with the phenomenon seemingly caused by the change in jobs and life styles. If I take my own family as a snapshot here for example. I work on a computer and use the internet for everything from shopping to a sizeable slice of my social life. Hardly surprising you might think given that I am writing this blog, but my wife also uses the internet for shopping, research and communication via Facebook and email, both my kids who have left home now are the same, and their respective partners, and their partners families, and their friends. In the main, these aren't special "techy" people this is a normal family with ages between 72 in the case of my brother and 12 in the case of one of my nieces.

Like most businesses who utilise the internet I spend a not inconsiderable sum of money on SEO and PPC advertising fighting to get my business to be heard above the general chatter, and yet this year Facebook has carried out more searches than Google so if a big section of your client base is out there, that's where you need to be. This is huge, and remember the other important thing which is that the decision makers in a household are now online. It isn't just their kids!.

Now evaluate this information in the light that 73% of decision makers now say they won't accept cold calls at all, 90% of consumers trust peer recommendation and another 90% of major buying decisions are based on internet research and you can see the golden opportunity or problem if you still don't get it. In fact with the recession meaning there is less money to go around, the footfall in the average high street reducing year on year and other industries spending millions of pounds luring customers on to the internet, where else is your business going to go?

Financial Services Authority (FSA) - What You Need to Know

noreply@blogger.com (combor) — Mon, 27 Jan 2014 14:51:00 +0000

The FSA is an independently operating non government organization which has been awarded statutory powers by the Financial Services and Markets Act (FSMA, 2000). Set up by the government, FSA keeps a close watch on financial services and endeavors to protect the borrower's rights. The FSA does so by providing factual and impartial information about the various financial products and services on offer to ensure that the deal is better understood by you so you know that you're making an informed financial choice.

What Does The FSA Do? The FSMA has given the FSA four statutory objectives which are:

o Market Confidence: The FSA must help maintain the confidence of the borrowers in the prevailing financial system.

o Public Awareness: It is the FSA's duty to promote public awareness and understanding of the financial system to ensure that borrowers don't get swindled by fraudulent lenders.

o Consumer Protection: It is the FSA's responsibility to secure the appropriate protection for consumers who have been cheated or those who have approached the FSA to seek protection against fraudulent lenders or agencies.

o Reduction of Financial Crime: The FSA, through it constant endeavors must try and reduce instances of financial crime.

FSA regulates most of the financial services in UK such as banks, financial advisors, mortgage remortgage brokers, stock brokers, insurance companies etc. This doesn't mean that FSA deals with loans, credit cards and insurance schemes directly. It simply regulates these services which are provided by various organizations.

How Do You Lodge A Complaint? There are times when you would have been dissatisfied with the services of your mortgage remortgage broker or even the financial agency you dealt with. In such circumstances FSA can serve you well and any firm regulated by the FSA will provide you free service to deal with all your doubts. They will assist you in putting forth your complaint to an independent complaints scheme or even take your case to court if necessary.

Follow this checklist and find out if you need to file a complaint:

o You've been charged excessively without your knowledge

o You were misled and given fraudulent information about a product

o The service didn't draw your attention towards some strict condition in the contract

o You were not given any notice about changes to the contract

o You have suffered a loss of money because of the agencies irresponsibility

If you answered YES to all the above questions, you need to complain as soon as possible! The FSA is here to restore your financial faith and make you believe that you have a helping hand to deal with your financial worries.

Tips When Employing a Collection Agency For Your Company

noreply@blogger.com (combor) — Sun, 26 Jan 2014 23:15:00 +0000

Owning a business or even managing one is a great deal of work. If you have to worry about bad debt recovery too, then it is a great deal more stressful. That is one reason why already having a collection agency for your accounts is helpful. An agency is able to focus on collecting the bad debts so that you can concentrate on running your business.

Some people feel that if they are a relatively small business, then a financial collection agency will not put forth the same effort as they would for a larger company. In order to make sure that you feel comfortable with an agency, you need to check them out prior to hiring one to recoup money owing on overdue accounts. Naturally, professionalism is a key factor when deciding on an agency to handle your collection accounts.

Although it is a stereotype, it is true that not all agencies have the best ethics and professional attitude. That alone is a good reason to ask for references and then be sure to check them out. And, of course, a good way to check on a company is through the Better Business Bureau; however, just because they are not listed does not mean that it is a reputable company. It can also mean that no one has bothered to file a complaint against them, which is another good reason for contacting their past and existing clients.

There are several questions you should ask when you are interviewing collection agencies, including whether or not they can collect locally, nationally and internationally, depending on what you need. Finding a collection agency for your company is imperative if you have customers who have defaulted on their accounts. Since many of these companies specialize in different forms of collections, make sure that they are able to collect as a commercial collection agency if you handle any commercial accounts.

Locating debtors, or skip-tracing individuals, is something that most collection agencies offer, as well as just collections. However, they will charge more depending upon the services that are needed, so you want to be clear about any additional charges that may be incurred while handling your bad debt collection issues. Be sure that they are clear on the fact that any charges over the agreed amount need to be approved by you first. The better collection agencies will offer ongoing support and professional services, as well as offering you a point of contact that is familiar to you and your business.

Does the collection agency for your accounts provide detailed status reports that keep you updated on all of their collection activity? The collection agency should provide you with reports on a regular basis, yet the frequency of those reports is pretty much up to you. Most companies request 2 or 3 reports a week and with the internet, companies have started offering 24/7 digital collections reports, available online. Some companies even have collection attorneys available for legal advice, etc.

Removing NCO Financial From Your Credit Report

noreply@blogger.com (combor) — Sat, 25 Jan 2014 20:50:00 +0000

NCO Financial seems to be one of the largest collection agencies in the world. It's definitely one of the most searched for terms on the internet as far as debt collectors go. Many consumers want to know how to remove NCO Financial from their credit reports, so I have decided to write an article on the subject.

Collection accounts like NCO Financial are removed from credit reports by the thousands everyday. You may have seen or heard ads on television or on the radio about services offering to remove bad credit from your credit reports and wonder if they are legitimate or not. I bet you'd be surprised to know that most of them are.

If you have searched the internet for collection agencies like NCO Financial Services, you will see that they have plenty of complaints about them. You will see that the tactics they use to collect debts are not always so honest and their employees have very little integrity. You will also find that having a collection account reporting on your credit report can hurt your credit scores pretty bad and prevent you from obtaining the loans you need to live a decent life.

There are a few ways you can remove collections from your credit report. The most popular and probably the most effective way is to dispute the account with the credit bureaus. By law you are permitted to dispute any item on your credit report that is "questionable". If you are not sure that the details of an account are being reported correctly or if you are completely unfamiliar with the account at all, then you can dispute it with the credit bureaus.

Writing debt validation and pay for delete letters are a couple other techniques used by credit repair services and consumers trying to repair their credit. While they are not as popular, these techniques and other credit repair techniques are very effective in getting those nasty collection accounts removed from your credit report.

Important Notes for Financial Accounting Services

noreply@blogger.com (combor) — Fri, 24 Jan 2014 17:07:00 +0000

Financial accounting is providing information such as balance sheet, profit and loss accounts for taking financial decision. It could be produced in front of the external agencies like government department, income tax authorities, shareholders, as well as creditors who analyze the financial strengths and weaknesses of a company. Financial accounting services include only the monetary aspects of the business. In the company's financial year end financial accounting is handled by certified accountants who produce two fundamental financial reports such as the balance sheet as well as the profit and loss statements.

• Experts to work for you

Finance department is the pillar for every firm. Therefore, financial accounting should be supervised by skilled professionals who help in enhancing overall progress of the business. In a business, financial understanding is essential to administer all types of expenses including sales and purchases, fixed and overhead expenses, etc. The expenses need to be noted down in the accounting ledger to verify the annual budget. These transactions are later revised at the financial year end, in order to check the cash flow of your business.

Financial accounting services keep a record of the financial transactions systematically for any business and make it easier to take correct financial judgments. Maintaining proper financial records, it is helpful in yearly transactions as well as report preparations.

• Outsource for efficient results

Outsource your financial services to the most consistent service provider who would ensure efficient running of your business, and help you to save your time and concentrate on other key issues of your business.

It is essential to have proficient financial accounting services work for you as a single mistake can cost heavily into major losses to your company. Having an experienced accounting service work for your firm is essential for efficient financial and accounting management. Providing the financial details of your organization and having skilled work force these companies are capable of preparing detailed reports such as balance sheets, as well as profit and loss account, etc.

• Choosing right company

Outsourcing Bookkeeping Services can work for all your tax and financial planning. It can also offer you with business tax planning providing individual attention. It is one of the most advancing accountancy firms providing business advice and tax consultancy based in India and its fundamental motive is to help its clients to provide with additional time to concentrate on its core business activities by reducing the load of financial planning issues. Visit: http://www.outsourcingbookkeepingservices.com to outsource your financial planning needs.