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Showing posts with label retail business. Show all posts
Showing posts with label retail business. Show all posts

Monday, 19 March 2018

22:47

Business From "CyberThreats" -Guidelines

Business From "CyberThreats" -Guidelines

Here are a few tips that you can use today to protect your business from cyber threats:
  • Review access and permissions and limit remote access – only allow those who need the access to your most sensitive data permission to do so.
  • Implement complex password requirements – having your employees create and maintain strong, complex passwords is a great practice to minimize cyber-attacks and protect data.
  • Train employees – make your employees aware of the various cyber threats, such as phishing or business email scams so they’re better able to recognize them. Consider including this training in your new hire onboarding, and be sure to schedule refresher courses regularly.
  • Ban or severely restrict USB access – flash drives can be dangerous vehicles to smuggle out confidential business information without detection, or provide access for hackers to transfer malware on the device.
  • Disable Microsoft Office Macros – macros, computer code used in Microsoft Office to automate tasks and add functionality to your files, can be used as a vehicle for malware, making your company susceptible to an attack.
  • Maintain robust and secure backups – properly securing your data is key to recovery following any type of cybercrime.
  • Update plug-ins – out-of-date plug-ins should be updated immediately. Fraudsters are known to exploit this vulnerability to steal data, install malware access networks. Some of the most commonly target plug-ins include adobe and java, so keep a special eye on those to avoid any attacks.
  • Utilize encryption – encrypting files ensures that your data is protected should your system be hacked or your laptop is lost or stolen.
  • Consider penetration testing – penetration testing is used to exploit cyber security vulnerabilities so you can make improvements before an attack would occur.
  • Develop an intrusion response plan – having an incident response plan can help mitigate damages.


Friday, 14 July 2017

08:39

Yes Bank to Digitize Loan Business using AI Powered Bots

Yes Bank to Digitize Loan Business using AI Powered Bots

Yes Bank to digitize its retail loan business leveraging technology and AI backed bots
Digitization of retail loan business using AI powered bots will improve process automation and bring down cost for Yes Bank
Mumbai: Yes Bank, India’s fourth largest private sector bank is all set to digitize its retail loan business using technology and eliminate paper usage. This will improve process automation and reduce overall cost to the bank.
Traditionally, availing a loan has being a lengthy process involving loan application, credit bureau’s scrutiny and verification of other documents and then loan disbursement to applicant. The entire process from loan application to its disbursement can take around 7-10 days.
But with the digitization, bank aims to complete the entire process in less than 30 minutes over the next six months. Besides, it also plans to improve customer experience by leveraging AI backed chatbot.
The bot will enable a digitized workflow for retail loans, allowing the customers to get instant conditional approval using their mobile device and popular messenger app. Each customer can get customized solutions on products, pricing and eligibility.
Also, the chatbot will help customers by answering their queries in real-time leveraging integration with bank’s core internal systems. This enables bank’s representative to connect with a prospective customer within the shortest possible turnaround time.
The bank claimed to be the only one to offer virtual demos of cars through a chatbot and expects to service a million customers through this bot in FY 2017-18.
The chatbot is completely device, medium, location and channel agnostic and in the near term, it would have the capability to host pre-filled loan agreements and act as a place holder for enabling e-signatures, thereby creating an ecosystem that would ensure an end-to-end digital journey for customers and channel partners alike.
The retail loan customers will be able to respond to pre-approved offerings from the bank and will get to know their eligibility and EMIs, apply for loans online and get instant in-principle approvals.
The automated retail lending products will be made available in a phased manner over a period of one year and is expected to improve user experience substantially for more than 2.5 lakh customers by this fiscal end.
In addition, Yes Bank informs that it will use an industry first sales productivity tool offering completely digitalized field visit reports with Geo-tagging. This transparent sales monitoring process makes it easier for the frontline workforce to plan their day-to-day activities. Bank’s customer facing sales team members will able to save multiple man hours every day through ‘real time call reporting’ and it will be extended to over 20,000 employees working on the backend side.
“These digital interventions are key milestones in transforming Yes Bank into a truly digital bank. In a world where physical and virtual environments are rapidly converging, we constantly strive to make processes simpler for all our customers and digitizing our retail loans is a definitive step in that direction,” said Pralay Mondal, Senior Group President – Retail and Business Banking, Yes Bank.

Source:ETCIO

Tuesday, 20 June 2017

07:52

Working Capital -Bank Acceptance Draft (BAD) Issuance

Working Capital -Bank Acceptance Draft (BAD) Issuance
Improve your working capital by deferring payments
Increase the efficiency of your working capital and defer payment on purchases by issuing a Bank Acceptance Draft (BAD). It is widely accepted in China where you can assure your suppliers of payment and improve relationships by issuing a BAD to cover the cost of the goods you receive. In turn, your suppliers can obtain up to 100% financing with a BAD, and often offer discounts as a result. Choose from a range of amounts and tenures up to six months or a year* to meet your needs. We also offer a consulting service to help you with any concerns or issues you may have with your suppliers.
As required by PBOC, starting from 1 January 2017, all commercial drafts worth RMB 3 million or more must be handled through electronic system (ECDS); from the beginning of 2018, all commercial drafts worth RMB 1 million or more should be in principle issued electronically. For more details, please click here.
Why choose DBS Bank Acceptance Draft Issuance?
  • Defer paying for your purchases by up to six months or a year*
  • Leverage DBS’ reputation and relationship with banks in China
  • Issue BADs for a minimum commission of just 0.05%
  • Choose a draft amount and tenure to suit your business needs
  • Assure your suppliers of payment upon draft maturity
  • Enhance your relationship with suppliers, who can obtain up to 100% financing based on your BAD
  • Resolve issues with your suppliers with advice from our consultancy service
Source:DBS

Tuesday, 13 June 2017

08:30

Double Swiping of Payment Cards to be discontinued from 15th June 2017

Double Swiping of Payment Cards to be discontinued from 15th June 2017

28th May 2017 - Manama, Bahrain - The Central Bank of Bahrain (CBB) has announced that all merchants and shopkeepers in Bahrain are required to stop their present practice of "double swiping" payment cards such as credit, debit, charge or prepaid cards, at their own point of sale (POS) and cash registers, from 15th June, 2017.
“Double swiping” means a merchant or shopkeeper swiping a card for the second time at his or her point of sale (POS) or cash register, immediately after the card transaction is approved in response to the first insert/swipe of the card at a POS belonging to the card acquirer. This practice of "double swiping" is widely considered as unsecure and hence, being discouraged by a number of countries, as well as card companies like VISA, during the last couple of years. 
Over the years, the CBB has taken a number of measures to protect card transactions. Among these are the phasing out of the traditional magnetic stripe cards and adoption of the EMV (Europay, MasterCard and Visa International) compliant chip embedded cards, as far back as 2010, since EMV is widely considered as the global security standard for card transactions. Card transactions in Bahrain are now processed securely, using card information stored in chips. When a card is first inserted in to the acquirer's POS at a sales counter, the card transaction is completed after the necessary approval or denial. The customer immediately receives a transaction advice via SMS message, for both, local as well as international card transactions. Accordingly, a card transaction does not require swiping the magnetic stripe again on the shopkeeper's own POS or cash register.
Merchants have been "double swiping" as a practice over the years, to collect card payment details and cardholders' personal data for internal accounting and/or marketing purposes. However, as this practice of swiping at a shopkeeper’s POS or cash register for the second time provides access to all payment card data, including sensitive information such as security code and personal data encoded on the magnetic stripe, it can effectively lead to card data compromise. Capturing or storing such sensitive card information in a shopkeeper’s computer system, has the potential risk of unintentionally exposing such information to malpractices and card frauds. Furthermore, it can undermine the efforts taken so far to enhance the security of card transactions by moving from magnetic stripes to EMV chip cards. Hence, there is a serious need to stop this unsecure practice of "double swiping" and thereby protect cardholder data against possible theft and to ensure public confidence in card transactions.

Friday, 7 April 2017

08:39

PayU India launches online deferral payment facility 'LazyPay'

PayU India launches online deferral payment facility 'LazyPay'

New Delhi : Apr 5 : PayU India on Wednesday announced the launch of a first-of-its kind premium deferral payment facility for consumers 'LazyPay' aimed at those who transact digitally for any amount between Rs. 500 and 2500, and is an option to pay later.

The aim of the product is to drive faster purchase experiences and convenience by reducing friction on online checkouts and achieving a zero drop situation for online payments.
It is a convenience product for anyone to pay later and the facility could extend for amounts from Rs. 3,000 and even up to Rs. 10,000, depending upon customer behaviour.

LazyPay appears as a payment option at the time of checkout on websites and apps integrating the product. It provides users a deferral payment facility for 15 days with a transaction limit decided as per the purchasing behavior of every individual.

Select consumers can now simply shop via LazyPay and conveniently settle the dues during the payment cycle instead of having to feed in card details or net banking credentials. This further makes the transactions smooth and seamless without transaction failures, need for passwords, etc.

"At PayU India, our endeavor is to provide world class experiences to consumers and drive higher conversions for merchants. LazyPay is the perfect example of our philosophy of simplifying the online payment process, wherein we separate the purchase and payment experiences and provide a deferral payment facility to the consumer. Furthermore, as a consumer-centric product, Lazy Pay delivers instant gratification to consumers, even thought they might be out of funds at the time of placing the order," said Managing Director PayU India, Jitendra Gupta.

"We want to provide users a privileged experience for payments, just like frequent flyers would experience privileges while checking-in at airports. We aim to recreate the kirana store experience where a shop owner allows you to take products home and pay later because he is acquainted with you," added Gupta.

The pilot for LazyPay went live in March 2017 and the initial response has been very encouraging. Within a month, LazyPay has 5 big merchants and more than 12 smaller merchants onboard including Zomato, Box8, Jazz Cinemas, Netmeds and Innerchef.

More than 10 million users have been qualified for LazyPay so far and the system is equipped with algorithms that will write off debts in real time. The said algorithms put in place for dynamic, real-time underwriting, are based on 80-odd variables. Proactive analytics and machine learning algorithms are a part of the internal architecture.

PayU India plans to invest USD 50 million in LazyPay over the next couple of years. The company aims to get over five million users onboard in the next one year. PayU India has largest merchant distribution network in the online payment space, which it will utilize for expansion. (ANI)

Source:TopNews
07:58

Govt Should Remove Transaction Charges on e-Payments: Traders

Govt Should Remove Transaction Charges on e-Payments: Traders

New Delhi: The government should remove transaction charges on e-payments for the faster adoption of digital payments in the country, the Confederation of All India Traders (CAIT) said on Thursday.

"Transaction charges are one of the major deterrents in the adoption of digital payments in the country. It is urgently required for the government to do away with the transaction charges so that neither the traders nor the consumers are burdened," CAIT National President B.C. Bhartia said in a statement.
"On the other hand, the government may levy a nominal ATM usage surcharge in order to discourage people to withdraw cash from ATMs and motivate them to pay directly by cards," Bhartia added.
The CAIT said the government should subsidise transaction charges levied on e-payments to the banks directly for faster adoption of digital payments.
The confederation also called for the implementation of the drafted proposal floated by the government in August 2015 for incentivising traders who are willing to accept digital payments.
"The incentive could be in form of either tax benefits or waiver of transaction costs which would result into encouraging traders to embrace e-payments system," the statement said.
The confederation had organised a conference on "Digital Payments-Importance & Adoption for future business India" here extending support to the government's mission of increased digital payment adoption in the wake of fast approaching Goods and Services Tax (GST) regime.
"CAIT also announced its partnership with HDFC Bank to provide banking solutions to trading fraternity and help them achieve maximised business growth and expansion by way of championing into digital business operations," the statement said.
The CAIT launched a national campaign this year in association with the Ministry of Electronics and Information Technology (MeitY) to persuade non-corporate business sector for amplified adoption of Digital Payments, it added.

Source:URL

Tuesday, 29 November 2016

20:20

The Future of Retail Banking: Are Bots Ready to be Your Next Banker?

The Future of Retail Banking: Are Bots Ready to be Your Next Banker?

Text-based services have been around since the dawn of time, but not until the past year have we seen the rise of chatbots, in part led by Facebook’s unveiling of Bots for Messenger towards the beginning of the year. Mark Zuckerberg led the reveal, saying: “I’ve never met anyone who likes calling a business, and no one wants to have to install a new app for every service or business they want to interact with … we think you should just be able to message a business, just as you would a friend.”

Since the Facebook launch, developers have created more than 11,000 bots, and some banks have been brave enough to dip their toes in the water already, keen to explore the role that bots can play within retail banking.
American Express recently launched a Messenger bot that gives customers access to their accounts, also telling them when a purchase has been made with their AMEX card, and also providing information about past purchases. Danish bank Lunarway has also introduced a Facebook bot that responds to simple customer queries, such as checking balance and making transfers, but has plans to rapidly increase its sophistication. In France, Société Générale has just launched a bot on Facebook Messenger and Bank of America has announced plans to do the same.

The promise is that, pretty soon, customers will be able to use their favorite messaging app, be it Slack, Messenger, Skype or Telegram etc., to communicate not only with friends and family, but with all sorts of online services (including banking) in a natural and conversational way.
But while a few banks might be in a position to experiment, for the majority it’s an ambiguous space which needs to be exceptionally well understood before significant investment is made. Where money and private information is involved, the stakes are currently very high. A recent Forrester report advised that banks should hold off and wait a further two to three years before investing in customer-facing chatbot services. Instead, for the time being, it states that banks would be better off working with their technology partners to focus on foundational digital initiatives that will enable better bots and artificial-intelligence-based services in the future.

There are several reasons for this, but fundamentally the technology simply isn’t mature enough yet and AI hasn’t quite progressed to the point where it can really carry on a conversation and always give a customer what they’re asking for. In order for banking bots to go mainstream, it’s essential that they’re easy to use, with high-functioning natural language processing capabilities. Within Forrester’s recent research it found that although some chat bots offered a quick and effective answer to a consumer’s question, about one-third of the time, existing chat bots either failed to complete the consumer’s request or provided a clunky, awkward experience. Banking customers can be unforgiving and if there’s an issue with a payment or a funds transfer, the repercussions can be significant.

There’s little doubt that AI and bot technology will improve, and there’s much being invested in this space at present by some of the world’s largest technology companies, as well as some innovative startups. With opportunities within apps dwindling, the greater opportunity is undoubtedly within bots, but according to Forrester it will be the tech companies that drive development and take the AI capabilities to the next level, not banks.

Are bots the new apps?

Studies consistently show that smartphone users have condensed their daily screen time into just a handful of favorite apps, often a browser, a couple of chat and social apps and maybe a game or two. It’s clear that consumer enthusiasm for new apps is waning, and a quarter of all downloaded apps are abandoned after a single use. Achieving a competitive edge in this market is harder than ever with the 20 most successful developers grabbing almost half of all revenues within Apple’s app store, presenting a significant challenge for banks. With the app economy maturing in this way, it seems certain that the text-based chatbot market is poised to take its place. But the question banks are probably asking themselves right now is “are bots the new apps?”

We are currently at an interim stage, where the line between apps and bots is a little blurred, and this is quite noticeable within the banking industry. Digit, for example, is an intelligent app that connects to an individual’s current account, analyzes their income and spending habits, and every few days identifies a small amount of money it can safely move to a savings account without the customer becoming overdrawn. ING has also rolled out a peer-to-peer-payment app called Twyp, which allows consumers to pay small amounts to contacts on their mobile devices in just a few seconds.

Another factor to consider is that instant messaging remains incredibly popular. Over 2.5bn people have at least one messaging app installed on their phone, with Facebook Messenger and WhatsApp (also owned by Facebook) topping the charts. WhatsApp users average nearly 200 minutes each week using the service. These usage figures are only predicted to rise and within a couple of years will reach 3.6bn—approximately half of the entire human population. It’s a trend that cannot be ignored when weighing up the consumer attention economy, and the continuing popularity of messaging apps suggests people will happily talk to bots in the future.

Bots will need much experimentation to find their place, but there’s no reason that they couldn’t co-exist on people’s smartphones with apps and other future technologies yet to be invented.

The long and winding road to digital banking

Speaking within the Forrester report referenced above, Zor Gorelov, CEO of AI company Kasisto, explains: “To build a truly smart banking bot we need access to clean, properly structured data from banks. The banks creating lifestyle banking with conversational AI are the ones that are investing in their data infrastructure right now. Our AI and machine learning rely on that data to create intelligent banking conversations with consumers.”

There’s no doubt that banks need to ensure they have an infrastructure in place to cope with the digital changes afoot. This requires time and money and a deep understanding of where efforts would be best placed. Instead of spending heavily on chat bots now, or other newly emerging innovations, such as voice assistants, digital teams at banks should use the next couple of years to get their houses in order, focusing on the integration of back-end systems, improving data infrastructure, and removing any restrictive legacy systems and silos. They need to be able to serve their customers now and in the future, while developing brand new services, incubating ideas and integrating FinTechs.

For many, this presents a sizeable challenge, best answered by the bimodal IT model, which is the practice of managing two separate but coherent styles of work: one focused on predictability; the other on exploration (as defined by Gartner). So, while banks should be focusing on digital transformation that is expected and well understood (including the evolution of their legacy infrastructure), they also need to be exploring and experimenting with ways to solve new and emerging problems, while also keeping customers happy!

Striking the balance between technology and human interaction

The global race for banks to be digital first is on, but it is still early in the game. Leading banks are in the process of learning how to take a mobile-first approach and re-imagine their customer experiences, from opening up a current account to buying a home or taking out a small business loan. While many have begun migrating their customers from the branch or call center to their digital channels, it’s critical to take a country-specific view and carefully consider the cultural differences and preferences before deciding on the pace of change. The Netherlands, for example, has among the highest mobile adoption rates for banking within the world, and according to recent research by Bain, Dutch mobile usage has risen fourfold in two years while the branch now plays a minor role. Contrast this situation with Italy, which is lagging behind quite significantly in the role digital plays within banking (Italy is at the bottom of European rankings, with 26% of the population using internet banking vs. 44% in the EU-28)

For the average bank, a current priority is how to migrate routine activities out of the branch to self-service digital channels. But it’s critical that the mobile or digital experience is enough to truly delight the customer and remove any frustrations they might have in a branch. Right now, customers aren’t ready to be faced with a purely automated customer experience, although they increasingly view having to use branches and call centres as an inconvenience for many transactions. Getting the balance right is critical. Human interactions still count for a lot, and according to Bain, those customers who use both physical and digital channels still tend to be more loyal and more valuable to their primary bank.

There’s little doubt that the role of the branch, and front desk staff, is evolving significantly. Employees still have an important role to play, and particularly within complex transactions, but increasingly they will see themselves conversing more with customers through online chat or video. This will enable banks to better pool their specialist talent and achieve higher levels of productivity. Dutch bank ABN Amro, for example, has begun advising customers on mortgages via webcam, so that customers don’t have to physically hand over documents at a branch.

Exciting times lay ahead for banks, particularly so in Europe. While chatbots might be our future bankers, right now, it’s critical to consider the bigger picture, and focus on the initiatives that will help drive customer loyalty. It’s important to stay ahead of the competition, but not every emerging innovation needs to be frantically implemented.

Source:CITRIX

Sunday, 20 November 2016

05:12

12 Different Ways to Fund Your New Business

12 Different Ways to Fund Your New Business

As a startup, your business faces many challenges, but none are as big as finding money to get everything off the ground. From renting office or production space to buying goods and hiring staff, everything you need to do to turn your idea into a viable business requires money.

Unless you’re independently wealthy or were left a nest egg from a benevolent relative, you’re probably going to have to work to get that funding. Below are 12 unique ways to get money to fund your small business.

1. Crowdfunding
There are a handful of really good crowdfunding sites that have become very popular with inventors, entrepreneurs and the general public in the past two years. Kickstarter is probably the most recognizable, but Indiegogo is gaining in popularity, along with RocketHub, Fundable and Fundly. Each has its own pros and cons, so it’s best to fully investigate the details associated with each site.

Recently, Indiegogo began offering fundraising campaigns without end dates, while Rocket Hub allows you to keep all the money you raised, even if you don’t meet your goal. Fundly is known for its success in helping non-profits, and Fundable is considered small business-friendly. In the end, the right platform for you will be based on your needs and goals.

2. Angel Investors
Angel investors stand out from other types of funding options because they are always on the lookout for the next business or idea to invest in. Many of the biggest tech companies today, including Google and Yahoo, were funded by angel investors. At its most basic deal, taking money from an angel almost always requires you to give your investor some share of equity in your company. Angel investors and any related transactions must be registered with the Securities and Exchange Commission (SEC).

3. Venture Capitalists
Similar to angel investors, venture capitalists have money to invest, which they want to invest in young, up-and-coming businesses with a high potential for growth and monetary returns. Venture capitalists typically also look for a share of equity in exchange for their investment, but are also interested in having a voice in the direction of the company. VCs are looking to make money on their investments, and many feel the best way to do this is to have some control in how the company is managed.

4. Small Business Administration (SBA) Loans
The U.S. government has a vested interest in the continued growth and success of the small business sector. As a result, the Small Business Administration offers many different loan types to help entrepreneurs get started. Explore the different SBA loan options here. If your business is a non-profit or educational institution, you might also want to explore SBA grants.

5. Microloans
Reserved largely for non-profit organizations, microloans are granted by institutions to individuals who would not normally qualify for a traditional bank loan. Instead of gifting a donation to the non-profit organization, microloan organizations allow individuals to invest in economic opportunities. Microloans are very popular in small and developing nations as well.

6. Personal Financing
Starting your own business is risky, and in many cases this level of risk is what prevents traditional lenders from granting loans to entrepreneurs. This is made even more difficult if the startup owner hasn’t invested any of his or her own money. It’s very hard to get a third party to give you money for your idea or business if you haven’t ponied up your own.

If you have savings or own your home and are willing to refinance or take out a second mortgage, then these are options you should definitely explore if you’re comfortable with the potentially bad consequences.

7. Purchase Order Financing
Many different factors can affect a business’ cash flow, including seasonality and supply and demand. For example, some companies may find themselves unable to fulfill a large order due to a lack of funds to purchase the materials needed to produce the goods.

In these instances, purchase order financing might be the answer. A purchase order financing organization will essentially extend an advance so the organization can purchase the materials it needs today and then collect back the money once the goods are sold.

Companies that most often qualify for purchase order financing are those that deal in manufactured goods—not services—and that stand to make a margin of 20% or more on the sale.

8. Vendor Financing
If your ability to pay your bills is contingent on your ability to sell your product, you may benefit from negotiating longer payment terms with your vendors. Most vendors require payment on invoices within 30 days before implementing late fees and penalties. You may be able to negotiate a longer term that gives you more cash to work with in the interim.

This is especially important if you have a sales cycle longer than 30 days. If it takes 45 days from purchase of goods to sale, you’ll never be able to pay invoices in 30 days. This takes negotiation and may not be an option for all vendors.

9. Friends and Family Loans
Your friends and family have a vested, personal interest in watching you succeed. This might make them more willing to invest in your business, especially in the beginning. Taking money from friends and family, however, can be tricky, and all of the pros and cons should be scrutinized before deciding to use this method to generate funds.

10. Contests
Believe it or not, there are organizations out there that offer monetary rewards—or even financing—for businesses and entrepreneurs who enter their contests. Eligibility requirements, entry fees and judging criteria vary widely. But if you have confidence in your idea and your pitch, this might be the way to get some cash.

11. Product Pre-Sales
If your business is based purely on the selling of a single product, the easiest way to raise the money to produce the product may be to pre-sell it. By pre-selling your products, you can be sure not to make too many and have a warehouse of unsold goods. It also keeps you aware that there are consumers relying on you to follow through.

This level of pressure can be a little intimidating for some entrepreneurs, so take time to consider the ramifications of collecting money before providing a product. You will need to have a solid timeline in place and adhere to it. Otherwise, customers might demand their money back, which could lead to a variety of problems.

12. Alternative Lending Sources
Using alternative lenders might require more due diligence on your part because you want to be sure you are doing business with a legitimate vendor. In most cases, however, these lenders fall just outside of the category of banks or government institutions. Some of the more popular alternative lenders include PayPal, Kabbage, OnDeck, Can Capital and Prosper. Here are some considerations to take into account.

Regardless of the funding option you choose, spend time to clearly investigate all of the terms and conditions and make sure it’s right for you and your business. Speak with other entrepreneurs or small business owners, and seek advice from different lending sources. You want to be sure that the choice you make to help your business today doesn’t end up hurting it tomorrow.

On top of that, you need to make sure your finances are stable before reaching out for funding. Creating financial reports that show your business is on the right path is a must-have in order to convince a lender or investor to infuse capital into your business. Financial software like QuickBooks can help you generate these reports, or you can reach out to an accountant to do it for you. Either way, without proof that your business is ready to receive money and put it into action effectively, your chances of landing funding are slim.

If you’re curious about other ways to fund your business, check out our finding funding category for more options.

Source:QuickBooks

Saturday, 29 October 2016

18:21

SME and retail sectors next bubble says Shikha Sharma

SME and retail sectors next bubble says Shikha Sharma

“The retail and medium-sized enterprises sectors have been showing credit demand but the banking industry is worried that they could be the next bubble”, said Axis Bank’s Managing Director & CEO, Shikha Shikha Sharma. Shikha Sharma also pointed out that credit growth to the corporate sector has been relatively weak and that working capital demand from the sector has also decreased considerably. Explaining the point, Shikha Sharma said that corporate India has not seen any new projects coming up in the past eighteen months. Hence, working capital demand had also declined.

Shikha Sharma further explained that the reason for the slow growth was that there was a base effect issue as large project funding had taken place three years back. On the brighter side, Shikha Sharma said that there was a lot of headroom for growth in the retail sector and that Axis Bank continued to be optimistic in that regard. Shikha Sharma also added that the corporate credit sector would bounce back, along with investments.

Axis Bank is the third largest private – sector bank in India offering a comprehensive suite of financial products. Headquartered in Mumbai, the bank has 2,959 branches, 12,743 ATMs and nine international offices! The bank employs over 50,000 people and has a market capitalization of ₹1.0583 trillion (US$16 billion) as on September 31st, 2016. It offers the entire spectrum of financial services to customer segments, spanning large and mid-corporates, SME, and retail businesses. Axis Bank has its registered office in Ahmedabad.

The corporate IT sector is the main engine driving the Indian economy’s growth. The lack of new projects for the past eighteen months is a worrying factor. Without new projects, working capital demand from the corporate sector (like IT) will decline thereby affecting the banking sector as well. Loss of jobs is also a possibility in both the sectors, as a result. The government of India should aid the private and public sector banks in giving capital to the corporate sector even after a large project funding has taken place thereby preventing a base effect issue. It should also negotiate with foreign countries and keep new projects coming to the IT industry to enable it to grow, generate jobs and employ more and more people. It should also encourage existing giants and startups in the IT industry to develop new technology and innovative projects so that, India need not completely rely on outsourced foreign projects. If the government of India takes the above mentioned steps, the Indian economy will bounce back from the brink. 

Source:Indianceo 

Tuesday, 25 October 2016

08:30

Holistic enterprise-wide digitisation is the key to success in the Indian banking industry

Holistic enterprise-wide digitisation is the key to success in the Indian banking industry

Emerging new competition, changing customer expectations, and reduced profitability are forcing banks in India to revisit their strategic business and operating models as well as their digital transformation and technology innovation strategies. 


By Research
  • Embrace digitisation and integrate systems, channels and data analytics for better service capability
  • Focus on finance and risk integration for a mature risk management model
  • Implement stronger HR management and workforce empowerment tools

The Asian Banker, in partnership with Oracle, released a special report, “Imagining ‘The Future Bank’ India”, which benchmarks current developments in Indian banks against leading global banks, and identifies key gaps in their financial services industry. The research brings together strategic and opera¬tional models that are imperative to bridge these gaps and lead the way to “The Future Bank”.

Embrace digitisation and integrate systems, channels and data analytics for better service capability

Banks in India are facing multiple challenges - emerging competition from new entrants and fintechs, reduced profitability, rising non-performing assets (NPA) and changing customer expectations. At the forefront is digital transformation. The banks need to have a customer centric focus which requires them to align their channels, products and analytics.In order to compete with the best in the world, the report reveals that Indian banks must implement holistic platform based, enterprise-wide digital transformation, cross-channel integration and seamless processes to achieve “omni-channel” service capability (Figure 1). They should also move in the direction of integrating technology towards agile systems and processes, empowered by data analytics, with better risk management tools and sound distribution network strategies.

Monday, 16 May 2016

08:13

G4S plans to move into operating bank branches

G4S plans to move into operating bank branches

The FTSE 250 listed company said it was now in discussion with some of the biggest banks in the UK, Netherlands, Cyprus, Greece, Belgium and Ireland over the launch of high street branches.
The move is part of G4S’s attempts to rebuild its business, which employs 620,000 staff in 110 countries. In Britain, G4S’s reputation has been tarnished by a failure to provide enough security guards at the London 2012 Olympics and for overcharging for the electronic tagging of offenders.
The idea is to provide cash handling and depositing services for customers of different lenders from the same outlet.
“We are looking to step into the space that banks want to vacate,” said Graham Levinsohn, European chief executive of G4S. “It is clear from the number of closures that banks don’t want tellers to be counting cash inside branches. It is simply uneconomic for banks to keep staffing bricks and mortar buildings but it makes sense for us.”
Banks in the UK and across Europe are retreating from the high street as they offer more services online and on mobile, triggering concerns about the impact on local communities and retailers. The pace of closures has accelerated in recent months despite political sensitivities.
The big six retail banks — Lloyds Banking Group, Royal Bank of Scotland, HSBC, Santander, Barclays and the Co-operative — have closed 600 branches over the past year, according to research by the BBC. The lenders say branch footfall is dropping as customers increasingly turn to mobile banking.
In total, about 3,000 branches have shut over the past decade, according to the Campaign for Community Banking Services, leaving about 8,000.
It is clear from the number of closures that banks don’t want tellers to be counting cash inside branches.
“There’s lots of pressure on banks to keep the last bank in any town open,” said Mr Levinsohn. “But banks are keen to close them because they are much more focused on the bottom line than they used to be. It’s a very competitive market.”
The UK’s banking body is aware of various mobile bank branch options being explored, according to people familiar with the situation. However, in the past banks have been cool on the idea of shared branches, as they still rely on bricks and mortar premises for marketing and sales.
G4S already provides rural banking services, called banks in a box, to remote areas in South Africa. Mr Levinsohn said he would rather provide mobile units in Europe, but that this would be negotiated with the banks involved and that high street outlets were also being considered. In the Netherlands, G4S machines and staff are already used in some bank branches.
Despite forecasts that card and contactless payments would lead to the death of cash, the decline is proving slower than expected, according to analysts.
The UK is a European leader in the use of card and online payments but 52 per cent of transactions are still in cash, according to Bank of England data published last year.
G4S believes its cash solutions business, which accounts for 14 per cent of group revenues, or 25 per cent of profits, is poised for growth.
The company has struck deals with Walmart, Center Parcs, and Crowne Plaza hotels for its new Cash 360 services — which use machines to count cash, reducing the risk of theft by cashiers.
G4S fought off bids from private equity last year for its cash solutions business, and rumours of interest in the division have resurfaced.
Banks started to outsource their cash management operations to third parties in the late 1990s when the rollout of ATMs started to expand. Companies such as G4S, Securicor and Prosecur took over the responsibility of transporting cash to ATMs, retrieving cheques and cash deposits left by customers and fixing any problems with the machines.

Source:www.ft.com 

Friday, 6 May 2016

09:10

ICICI Bank will allocate more capital for retail biz: MD

ICICI Bank will allocate more capital for retail biz: MD

MUMBAI, MAY 3:  
ICICI Bank, India’s second-largest lender, expects net interest margin for FY17 to be about 20 basis points lower than that of the March 2016 quarter level of 3.37 per cent.

The margin would be impacted as the bank is seeking to improve its credit mix driven by focus on retail lending and lending to higher-rated corporates, where yield on advances are typically lower. Further, provisions for bad loans are expected to remain elevated in FY17.

Net interest margin (NIM) is considered to be an important measure of efficiency in the financial sector. NIM is measured as the excess of interest income over interest expense divided by the average interest earning assets. Chanda Kochhar, MD and CEO, in a post results conference call with analysts, said her bank has worked out its capital allocation exercise and on that basis more capital will be allocated to retail business and less would be consumed by the corporate segment.

NS Kannan, Executive Director, observed that there are significant uncertainties around future trends and it is expected that non-performing asset (NPA) additions will continue to be at elevated levels in FY17.

Given the uncertainties around the corporate segment, and the ageing-based provisions on existing NPAs, provisions are expected to remain elevated in FY17, he explained.

Rakesh Jha, CFO, said the fact that pricing will be competitive on retail and corporate segments is also factored into the outlook for overall margins.

Thursday, 17 March 2016

23:05

YES Bank to ramp up retail portfolio

YES Bank to ramp up retail portfolio

To expand product offerings, launch credit card

MUMBAI, MARCH 16: 

YES Bank has firmed up plans to ramp up its retail banking portfolio, Pralay Mondal, Senior Group President, Retail & Business Banking, said.

Retail assets that currently constitute a third of the bank’s total advances, are set to touch 45 per cent in the next four years.

This will balance the pronounced tilt towards wholesale/corporate banking seen currently. As part of its retail development plans, the bank is also widening its bouquet of offerings and will be launching a credit card in the next quarter.

YES Bank expects to grow at between 25 and 30 per cent during the next four years and more than double its current market share to about 2.5 per cent, Pralay said.

As part of the plans to prepare for this ramp up, the bank’s branch network currently about 800 is set to treble and reach 2,500 branches by March 2020. Manpower working in retail currently numbering 11,000 out of 14,000 employees will double in the next 18 months, Pralay said.

Processing hub
He added, “We are investing significantly in infrastructure and technology. We have taken 7-8 lakh square feet area in Chennai (in Ambattur) to set up our central processing hub for handling all our back-end operations. We are investing significantly in building leadership at both HO and regional levels.”

CASA deposits
With expansion and moving into deeper geographies, some of the bank’s key parameters will be further strengthened, Pralay said, citing the example of current and savings ratio (CASA).

He said CASA was expected to move up significantly from around 27 per cent of total deposits currently to 45 per cent in four years. Similarly, the total retail deposits (CASA plus term deposits) is expected to touch 75 per cent, from about 50 per cent now.

Saturday, 20 February 2016

05:48

Citigroup to exit retail banking in Brazil, Argentina

Citigroup to exit retail banking in Brazil, Argentina

Citigroup Inc (C.N) said it plans to exit its retail banking and credit card operations in Brazil, Argentina and Colombia as part of its efforts to cut costs and boost profitability.

Shares of the bank, which has operated in Argentina and Brazil for more than a century, were down 1.3 percent at $38.40 in early trading on Friday.

The U.S. bank, built with a series of acquisitions dating back to the 1980s, has been trying to slim down since the financial crisis to be as profitable as its rivals.

Barely six months into his tenure as the chief executive, Michael Corbat counted at least 21 markets with exceptionally low returns on assets and substandard operating efficiency as candidates for restructuring.

The Wall Street bank, like its peers, has had to resort to aggressive cost controls as near-zero interest rates, a slump in oil prices and investor cautiousness due to worries about slowing growth in China have hurt its revenue growth.

Citi's consumer business accounts for about half of the company and is heavily weighted towards U.S. credit cards.

Citi executives have been paring the company's international consumer banking operations since at least 2012.

Brazil accounted for about 9 percent of total consumer loans in Latin America at the end of 2015, while Mexico accounted for about 80 percent.

Citigroup has always struggled to compete with bigger Brazilian banks in the retail business, but things got worse in 2013 when the U.S. bank sold its profitable credit-card unit Credicard SA.

"We have decided to focus our efforts on opportunities with our institutional clients in these countries and throughout the wider region," Corbat said.

The businesses being sold are a part of its consumer banking operations and will be transferred to Citi Holdings. They will report financial results as part of Citi Holdings from the first quarter, the bank said.

Citi Holdings is the division that holds all non-core assets that the bank is winding down or selling.

By shifting the Latin American businesses to the Citi Holdings run-off portfolio, Corbat will move closer to his target even before the units are sold or closed.

At the end of the fourth quarter, Citi Holdings had $74 billion in assets, 43 percent lower than a year earlier, and represented about 4 percent of total Citigroup assets.

Thursday, 19 November 2015

22:34

Royal Bank of Scotland has said it is scrapping sales bonuses for staff working at its retail banks.

Royal Bank of Scotland has said it is scrapping sales bonuses for staff working at its retail banks.

To compensate, the roughly 20,000 staff selling products such mortgages, credit cards and loans to individuals and businesses will get an average 5% pay rise.

The bank said the new system was simpler and fairer, and would put less pressure on staff on sell products.

It also claimed to be the first major UK bank to take this step.

"We're determined to keep doing things differently and we can only continue to rebuild our customers' trust if they truly believe that we are completely focused on helping them with their financial needs - which is why we will scrap all incentives for customer-facing employees," said Les Matheson, head of personal and business banking at NatWest and RBS.

The move will also ensure that staff at less busy branches will not lose out compared with those doing the same job at busier outlets.

There have been calls from independent bodies to change the way retail bank staff are paid following various mis-selling scandals, such as payment protection insurance, known as PPI, credit card fraud protection and swaps.

The government currently owns a 73% stake in RBS after bailing the bank out during the financial crisis in 2008.

Scrapping bonuses only applies to staff working in retail banking, not investment banking, which is where the huge losses were made that led to government intervention.

Source :BBC,com

Wednesday, 11 November 2015

22:41

Flipkart introduces mobile website ‘Flipkart Lite’ after pushing its app-only strategy

Flipkart introduces mobile website ‘Flipkart Lite’ after pushing its app-only strategy

We’ve heard about Flipkart and Myntra’s move to go app only for a long time now. Over the past year, the thought behind an app only strategy has been weighed both from a business as well as consumer’s point of view.

Mostly, it is agreed that a business needs to be where consumers are. This seems to have been evident with the app exclusive sales that have happened during the festive season. While Flipkart decided to go app only, its competitor Amazon went with a mixed strategy between its website as well as app.

Sure the app only strategy cannot completely be ridiculed as having no basis, considering that a significantly high percentage of users are transacting via smartphones. While we have posed these questions in the past when Myntra decided to shut its website, what did stand out is the fact that a business was pushing its way on to consumers rather than give consumers the option to choose which platform suits them the best.

It turns out, Flipkart and Google are working together to create a new mobile optimised website that would aid smartphone users to continue shopping on the ecommerce platform without having to install an application. Moreover, users on platforms other than Android, or iOS could also transact via a mobile browser.

It appears that through the whole controversy around its app only strategy, Flipkart had lost out on an opportunity to convey to its user base that it really cared for its customers and would go the extra mile to ensure that they could continue to shop on the platform of their choice where they were most comfortable.

According to Recode, the launch of the Flipkart mobile site is also a win for Google. The rise of mobile apps effectively means the whole shopping experience is beyond the purview of Google’s search and advertising business which generates the most significant percentage of its revenue.

The Recode piece quotes Peeyush Ranjan, VP of Engineering at Flipkart who said that apps have the advantages of a cleaner interface and the advantage to stay offline. He added that despite these advantages, one significant challenge is that most users access the service via low-end smartphones that aren’t updated regularly. In stark contrast, to stay updated on a browser, a user simply needs to hit Refresh!

What’s interesting is that the partnership between Flipkart and Google to create Flipkart Lite has begun after ex-Googler Ranjan took over as the VP of Engineering at Flipkart.

We believe this move is a positive step and indicates that sense has finally prevailed at Flipkart. For consumers, this also indicates that shopping won’t necessarily mean installing another app, but could be a matter of choice between an app or the good old browser.

Source:http://tech.firstpost.com/news-analysis/flipkart-introduces-mobile-website-flipkart-lite-after-pushing-its-app-only-strategy-287347.html