Month: February 2021

Saving money
ArticlesBankingRegulationTransactional and Investment Banking

Simple Ways to Save Money That Often Go Overlooked

Saving money

One of the most fundamental concepts of generating wealth is knowing how to save money. When you master the art of stretching your earnings further, you have more resources to invest and save towards a more secure future. While shopping around for the best price, using coupons, and other common savings tactics are ideal, other strategies go overlooked, costing you hundreds of dollars each year. Continue reading to learn more. 

 

Skip ATM Fees

When you need access to cash, the ATM is the fastest way to retrieve it. It saves you from standing in long lines at the bank and allows you to get money 24/7. Be that as it may, you incur a fee when you use ATMs outside of your bank’s network. The fee might only be $2-5, but when you calculate that over the number of times you use the ATM in a month, it adds up. Not to mention, most banks charge an additional fee for using out-of-network ATMs. You can save several dollars every year by merely using no-fee ATMs or making purchases using the debit card linked to your bank account. 

 

Overdraft Protection

Even the most financially organized person can overlook a bank transaction. You forget that your cell phone bill is on automatic withdrawal. The funds aren’t available in your checking account. The payment gets returned, and you’re left with a $25-$35 fee to cover. While setting reminders can reduce the chances of overdraft fees, there’s another solution – overdraft protection. This is an “insurance” policy offered by banks where transactions totaling more than your available balance are honored or paid using a linked savings account, saving you hundreds in fees each month. 

 

Rebates

Using coupons or taking advantage of sales when making a purchase are common ways to save money, but they’re not the only solutions. Most people tend to overlook rebate opportunities. Though not applied at the time of purchase, rebates can quickly add up. If you frequently shop online, applying for an Amazon rebate could save you hundreds of dollars on everyday purchases. Believe it or not, there are several cashback and rebate programs you can sign up for to save on everything from groceries to apparel. 

 

Buy Generic

As a consumer, you’ll always pay for the brand’s name and reputation, from your medications to your clothes. For example, a pair of athletic shoes from Payless shoe store will cost you less than a pair you purchase from Nike. Since Nike is the more popular brand, it will always be more expensive than a generic brand from your local retailer. However, if you dig deeper, you’ll learn that these shoes are made in the same factories using the same materials, ultimately providing you with the same quality. So, it’s safe to say that you would save yourself hundreds if not thousands of dollars by being open-minded about generic or lesser-known brands. 

 

Timeliness

When it comes to wasting money, timeliness is a huge factor. When you don’t pay your bills in a timely manner, you incur late fees, penalties, and sometimes added interest. Depending on how frequently you practice this behavior, you could be watching hundreds of thousands of dollars go down the drain. You can remedy this problem by ensuring that you pay your bills on time. Set up automatic payment plans or set reminders to ensure that you have the available funds to cover the bill. If you’re having difficulty keeping up with the due dates, talking with service providers about making adjustments is recommended. 

As the saying goes, “A penny saved is a penny earned.” On the surface, these habits may not seem like much. Incurring a $2 ATM or $35 overdraft fee, spending more on a popular brand, or missing the deadline for a utility or credit card bill seems minuscule, but if you were to add it up over the course of a month or year, chances are you’d be surprised. Keep more of your money in your pocket by developing better financial habits and taking advantage of the resources available to help you save more each day.

Plan A-B
ArticlesFinance

How to Know When to Use an Alternative and When to Stay the Mainstream Course

Plan A-B

At some point in your life, you have been encouraged to think outside the box. In the simplest terms, it means to consider something that stands outside the mainstream. However, that advice needs a lot more nuance to be truly useful. You don’t want to take a hostile view toward the mainstream solution. Most of the time, the mainstream solution is the best one. After all, that is how it became the mainstream in the first place. It is the thing that works most often.

That said, the typical solution does not work all the time. There are reasons for that. We are all different and have different needs. Some situations are outside the norm so they need outside the box thinking. It is not always obvious which situations require an alternative solution.

Some things are obvious. You don’t want alternative pilots who did alternative pilot training. That is clearly a very bad idea. You don’t want alternative electricians who went to alternative electrician school. You only need to try alternative food products to know you don’t want alternative food.

You also want traditional term life insurance. You need an insurance company that is going to be there over the long term, and will cover you in predictable and comprehensive ways. You can find non-traditional value if you shop around. Get your term life quotes to find a plan that’s right for you. There is no alternative to good insurance. Here are a few things where alternatives are more appropriate:

 

Alternative Business Financing

Right now there is a lot of interest in alternative business financing. It is not easy to find financing for startups from traditional sources. This is especially true for tech startups. They are often founded by people who had an idea, a dream, and some space in their mother’s basement. What they didn’t have was money. They also lacked the ability to get a bank loan.

Fortunately, they had their idea during a time of angel investors and crowdfunding. some of the most interesting products have made their way to market with the help of alternative financing. Fitbit is one such example. It was able to survive long enough to be a real competitor to Wear OS and was eventually purchased by google. For many startups, the alternative financing route is the better first choice.

 

Alternative Diets

All special diets are alternative diets. You have the USDA guidelines. Then, you have everything else. Such guidelines are a good general rule for the general public. But if you are diabetic with special needs, you need an alternative diet. This applies for all sorts of situations such as food allergies. Celiac disease is no fun and requires a diet without gluten. Peanut allergies can be life-threatening. Peanut products are in more ingredients than you might think.

When it comes to what you can and cannot eat. You need to listen to your doctor. They might even refer you to a dietary specialist. Some people respond best to well considered, highly curated meal plans. You can’t just eat like everyone else. And you can’t take the well meaning advice of your friends and family. When it comes to your special needs diet, you have to think outside the big box supermarket advertising and look to alternatives more tailored to your needs.

 

Alternative Tech

Many people suffer from RSI because they use a computer all day. We interface with the computer via keyboards, trackpads, and mice. The keyboard as we know it was not designed for comfort or ergonomic health. The good news is there are alternative keyboards you can buy that can give you a better chance of avoiding RSI. The same is true for pointing devices. You have to look beyond the mainstream to find them. But they are there. Millions swear by them.

Don’t despise the mainstream. It is mainstream because it works most of the time for most people. But you are not most people. You are uniquely you. Sometimes you have to walk a different path. If you are looking for business financing, a special diet, or special tech for special needs, think outside the box. Many brilliant alternatives await.

Issues

Q1 2021

Welcome to the Q1 edition of Wealth & Finance International Magazine. As always, we endeavour to provide fund managers, institutional and private investors with the very latest industry news in the traditional and alternative investment spheres.

The last year has magnified the importance of capitalising on opportunities whenever they arise. While the predominant theme of the last year has been change, the impact of the COVID-19 pandemic proved to be tumultuous and ever-shifting. Though significant challenges have been prevalent, it would be remiss to gloss over the unexpected opportunities that have arisen for many businesses in numerous markets.

The core benefit of the wealth and finance industries is that, for the most part, the move to the digital ‘storefront’ and operations as already been underway before circumstance made it a necessity. From digital banking for client convenience to online investment management – services could continue on, even when physical establishments had to close their doors. That left an opportunity to focus attention, to strengthen digital infrastructure and services to best serve the needs of clients. If anything positive occurred from COVID, it was this. We’ll be focusing on the companies who have pivoted or enhanced their digital offerings over this year. So stay tuned!

In the meantime, I hope you all stay safe and well. Have a wonderful few weeks ahead.

Stimulus Check
Funds

8 Great Ways to Use Your Stimulus Check

Stimulus Check

You’re getting the stimulus check, which is great news for those experiencing financial hardship. Now, it’s time to think about how you’re going to use it. The following are a few ways to help yourself and the nation’s economy.

  1. Clear Debts

One of the best suggestions on how to use stimulus check money is to pay down some debt. If you can decrease the amount you owe, the money saved going forward can be used to buy a new car or maybe even start a business. You’ll be freer, and that’s priceless.

  1. Vacation

Face it, people have had a rough year, and if you want a vacation, then maybe that’s the best thing you can do. It’s a way to recharge your batteries and feel good again. The vaccine is going to reopen things soon, so just plan your vacation with this cash. Stay within the US to boost the economy.

  1. Treat Yourself

Maybe you’ve been a little wary about spending because of everything going on. Things are turning around, so why not consider treating yourself with this check? There must be something you’ve wanted for a long time, like an entertainment center or something similar.

  1. Sustainability

The pandemic has taught us the value of self-sustainability. You can use this check to start your journey. There are many ways you can do this, from buying a chicken coup to have access to fresh eggs at home or investing in a greenhouse to grow vegetables.

  1. Home Repairs

Some folks have been sitting on much-needed home repairs for some time. It’s time to address those repairs, and you can use the check for that. You’ll be stimulating the local economy if you use a repair person from your community. Your home will function a lot better, so it’s a wise decision.

  1. Car Repairs

Maybe it’s not your home that needs to be repaired but your car. People sometimes put off repairs as long as the vehicle is still running. You don’t have to take that risk because you have this check coming. You’ll be supporting mechanics, and that’s a good thing to do during these times. Have an inspection done to see what needs fixing.

  1. Invest

If you feel like you’ve got enough money saved, then consider investing. Granted, there are markets where you might not want to invest just yet, especially if they’re in trouble, but there are a few industries still thriving. Do your research and find out where it might be a good idea to invest. This is an excellent way to ensure that your wealth keeps growing; it’s not like these checks will keep coming though they probably should because they are doing a lot of good.

  1. Save

Sometimes, the smartest thing you could do is just save the money. Maybe you want to make sure you have the cash for your kids to go to college. This could go a long way in making that a reality for you. Maybe you just want to save to buy your kid’s first car. There are many reasons to put your money away, so if there’s nothing else, then this is your wisest move. You don’t want to waste money frivolously, so just keep that in mind.

These are some ways you can use the stimulus check coming your way. You can use other ways, but you know your financial situation and goals, so choose carefully.

Female Investor
ArticlesBankingTransactional and Investment Banking

Here Is What Your Company Can Do to Attract More Women Investors

Female Investor

Women make up about 50% of the population while controlling only 30% of the wealth. This is the worldwide statistic that is set to dramatically change in the right direction over the course of the next decade. As bad as the numbers appear, they actually represent good news. This is a big improvement that is set to continue. Women’s growing wealth prompts the need for changes in the banking sector. That said, it is not all good news. MSN goes on to say:

“Although a third of the world’s wealth is under women’s control today, four in ten wealthy women are currently not involved in the management of their family finances compared to only one in ten men.”

Dramatic change is afoot. And that foot will be wearing Prada. More women are bursting through the glass ceiling, as well as the glass walls and glass doors. You want to be on the right side of history, as well as the right side of your growing female clientele. Here is hot to make sure they do business with you as opposed to your competition:

 

Speak Directly to Women

It is never the right thing to address someone indirectly. If you have a question for a woman, don’t ask her male partner or associate. Speak to her directly. Advertisers often make this mistake. Your marketing does not need to talk down to women. It needs to talk directly to women.

If your healthcare services include women’s health issues, you need to make sure you are speaking to that target audience. If you don’t know how to do that, bring in a healthcare public relations firm that can. If you want to target investment products to women, you are in luck. You have an audience that is rapidly growing. They already want to do more investing. You just have to craft your message so that you are making a direct appeal to the customers you want to attract.

One of the best ways to draw and not repel women investors is to put women in charge of the sales and marketing efforts. Men are used to talking to other men in ways that would be counterproductive when talking to women. The best way to speak directly to women is to let a woman do the speaking.

 

Go Where the Market is Ready

Gender egalitarianism is not alive and well in many parts of the world. Change is happening everywhere. But that change is much slower in some places as opposed to others. If you want to attract more women to your investment platforms, start in the places where more women are empowered to respond to your message.

Women investors in loans rose by 43% in Europe in 2020. Europe has a long history of empowered women. It is a good place to find women investors. The U.S. requires a bit more nuanced effort. Women control a great deal of wealth in the States. 20201 saw the swearing in of the first female vice president. It is overcoming a checkered past with regard to women’s rights. But the market for women investors is set to explode as millions of women become more empowered. Go where the market is ready to reap the greatest rewards.

 

Provide More Offerings Suitable for Women

One of the best things Apple did with Apple Watch was to make two sizes. They never marketed the smaller watch for women. But since women tend to have smaller wrists, it is a sensible option. It is a product useful for women without it being festooned with pink flowers.

When possible, design products to be unisex. When not possible, include an option suitable for the other 50% of the market. If you want women to invest in your company, make it a company that offers something for everyone.

Women are 50% of the population. It will not be long before they are at least 50% of the controlling influence of wealth. Their investing power is here, and growing. You can partner with this new generation of investors by appealing directly to them, being there when the market is ready, and giving them a reason to invest in your company by having offerings suitable for everyone. 

Business leader
ArticlesRegulation

How Your Leadership Team May Be Ruining Your Business

Business leader

Any business’s objective is to make a profit or be sustainable over time. To achieve that outcome, one must understand the steps necessary to accomplish the results desired and all the little things that go into making that goal a reality.

Did you know that employee satisfaction, job performance, and productivity are linked with excellent or poor management? 

There are many factors for this, but in general, the saying that nobody “quits a job, they quit a boss” is the difference in your organization’s success or failure.  

In any conversation regarding high-end achievement versus mediocre results, factors such as timing, speed, positioning, motivation, and leadership are all points that are recognized as to why a project is successful or not. 

 

Analyze Your Team’s Successes

All too often, the focus on why a project succeeds is on tangibles such as improved market position, increased sales, and the like. 

Most organizations focus on the most obvious metric to analyze, and that is customer engagement and sales. For example, a brewery is only as successful as its sales, and to grow sales, there needs to be increased brand awareness. 

Utilizing a customer data platform that allows the brewery to streamline all the marketing, sales, and service processes for its organization can enhance its brand awareness and outreach. 

The brewery will need to improve engagement by increasing brand awareness through product placement, marketing, or other strategies. 

One area that is too often ignored is the morale and general sense of well-being that team members have for their jobs and management. A poorly run organization struggles with retaining quality team members, declining productivity, and lost labor hours due to illness and other factors. 

Too often, a poorly run organization believes that to correct its course, a reshuffling of management is vital. That may be true in some instances; however, one solution is for leadership to take stock of what may be their failings and correct those behaviors. 

For example, employees tend to look unfavorably at management when communication between management and labor is poor, disconnected from the employees ’ concerns, or seems arbitrary and detached negatively. 

 

Find The Patterns To Success And Empower Your Team

This issue may accelerate your organization’s disconnect, especially when an achievement isn’t shared with all the contributing members that helped make that achievement or milestone possible. Part of what makes for effective leadership is to find patterns in your successes and analyze your shortcomings.

Often little achievements are located in the minutia, small actions that add up to become a significant achievement. As a leader, you should be focusing on the small steps that your team members take in their workflow and enhancing their opportunities for success. 

 

Become A Better Communicator

The most crucial step in becoming a better leader is to become a better communicator. Too often, misunderstandings create an environment built on tension and more significant problems. There are three primary communication principles: listen, speak, and empower. 

These three processes will create an environment that your team members will become more invested in, increasing job satisfaction and enhance productivity as a result.

  1. Listen First
  2. Speak Clearly
  3. Delegate Tasks And Empower Solution-Based Thinking

Focusing on empowering labor through engaging conversations and encouraging better lines of dialogue helps improve the perception of the organization’s leadership.

Improved relationships help team members believe in the company’s value, which has a real-world impact on performance and productivity. 

 

Become A Better Leader

A goal of good leadership is to empower your team members to have a set of small achievements that can create a sense of cohesion to the project as a whole. 

These small achievements take on momentum on their own and help your project and organization make larger and larger accomplishments. By sharing in the process, you’re creating an environment where team members can feel pride and attachment to those outcomes. The key then is to share in the accomplishments. 

A leader’s actions will set the trajectory for any project and determine its possible success. Leaders as a whole are made from a series of experiences, reflection, iteration, and education. In fact, through self-awareness and education, most people can learn to become a more effective leader. 

To create sustained growth and success for your organization, you need to focus resources on educating your management team on more effective ways to lead your teams. 

Businessman
ArticlesFinance

How to Gracefully Exit the Business World and Move to the Next Phase of Life

Businessman

There is this little thing called retirement. It is held up as the prize for a life well lived with time and resources left to enjoy. Not everyone wants life’s golden parachute. Some prefer to work all the way up to the end. They never want to slow down. They always want to be in the mix. Those who have risen to the top of their field don’t necessarily look forward to the day when they are no longer in charge. Being in the middle of things and riding the wild wave is what gives their life meaning.

Then, there’s you. Your goal might be to get out of the rat race as early as you can and spend as much time with your family and money as you can, while you can. The most interesting things to do in life still on your list have nothing to do with business, work, or making money. You want to see the world, have a few adventures, and tend the farm. You are ready to cash out and find the sunset where you will eventually head off into. This is how you get out gracefully and move on to the next adventure:

 

Get Top Dollar for the Sale

Walking away from a business without selling it for a good price is as unthinkable as walking away from a house without getting a good return on your investment. Make no mistake about it: Your business is not just something that supports you and your family during the time you have the business. It is a lifelong investment that can be cashed out just like a whole life insurance policy. The only question is how best to cash it out.

You already know you can sell your retail business ventures. You might not have been aware that you can also find people to buy Amazon FBA business ventures. Though based on Amazon services and infrastructure, it is still your business. You have built up that business to be more valuable now than when it was started. That is like equity in a home.

In the case of your business, you have equity. You don’t have to go through a lengthy process to find a buyer and negotiate a deal. You can close the deal in as little as 45 days. If you are ready to walk away from your business and enjoy the next phase of life, don’t just get rid of it in a fire sale. And don’t go through years of headaches finding the perfect buyer. There are better options available for you to get a profitable return on your life’s work.

 

Tie Up Loose Ends

Is it time to get off the investing roller coaster? Are you tired of waiting around to learn the next lesson Covid has in store for you? You are not wrong for seeking an off-ramp. If you have been considering retirement, now is an excellent time to actualize that consideration.

What you want to do before leaving the business world is simplify your life. There are a lot of strands to untangle when moving away from business. You need to work with an accountant to make sure your tax responsibilities are taken care of. You need to give your employees plenty of time to find new work and prepare personalized, glowing letters of accommodation. If you don’t want to deal with complications later, tie up all the loose strands in advance so that you can put it all behind you.

 

Start Something New

There is a good case to be made against early retirement. The biggest danger is not retiring from business, but retiring from meaningful endeavors. Don’t walk away from your business to sit in a rocking chair. Never put a rocking chair on your porch. You still have things to do.

You can walk away from the rat race without walking away from meaningful pursuits. This is the time in your life when you are free to try something new without needing to worry about it being profitable. You can do something just because it is important to you. That is the perfect exclamation point to a life well lived.

It is different for everyone. When it is time for you to walk away, you’ll know. Just be sure to get the best possible return from your business investment. Tie Up Loose Ends. And start something new. 

Afghanistan Currency
ArticlesBankingFinanceForeign Direct InvestmentIslamic Finance

Securing Stability & Success in Afghanistan’s Economy

Afghanistan Currency

As the largest commercial bank in Afghanistan, it may have also proven difficult for Azizi Bank to simultaneously ascertain the title of best commercial bank. Yet, that is exactly what this outstanding financial institution has done, and has rightfully been awarded that title of 2020’s Best Commercial Bank, Afghanistan in this quarter’s issue of Wealth & Finance International Magazine. Join us as we find out more about what the bank has to offer, what makes it so unique, and why it is deserving of this international recognition.

Azizi Bank is the largest commercial bank in Afghanistan, and it has been maintaining that position since its inception in 2006. Being the country’s largest banking group, there is a Pan-Afghanistan presence that stretches across more than thirty provinces and a headquartered office in Ankara Square in Kabul. The work of Azizi Bank started with the professional and entrepreneurial commitment of its founder, Mr Mirwais Azizi of the Azizi Hotak Group & Family and is presently under the leadership of a young and dynamic Chief Executive Officer Dr. Prof. Mohammad Salem Omaid. What makes Azizi Bank unique is the fact that its professional customer service and the sense of belonging that every client and customer has. Each and every employee carries with them this sense of welcoming and belonging, and strives to ensure that all interactions with customers are done so in a way that makes them feel like they are a part of the family feel that the bank presents. In addition to this, there is a wealth of digital innovation and product excellence on show here also. Azizi Bank has invested significant time, money, and manpower into ensuring that every product is designed to suit a client requirement, and this commitment distinguishes the bank to be the most distinctive and superior bank across Afghanistan.

For almost fifteen years, Azizi Bank has been managed under the governance of a very competent and effective Board of Supervisors, who brings a vast repertoire of knowledge and experience in their various fields, and are internationally acclaimed in their respective work. At the management level, there is a brilliant mix of youth and experience, which leads to both innovation and stability across the board. Today, Azizi Bank has more than fifteen hundred employees, and with a fifteen percent female work force, it is playing a quietly effective role in women’s emancipation and empowerment across Afghanistan. Aside from Azizi Bank, there are another eleven banks in the country, including two banks from Pakistan. The total banking deposit is approximately USD 3.2 billion, with all assets totalling approximately five billion USD.

As a country, Afghanistan has witnessed strong economic growth and developing in banking systems when compared to the previous two decades. Growth in the financial sector, specifically within the banking sector itself, was considerable. Thus, national income increased, and there was massive promotion in many of the other macroeconomic factors, including exchange rates, inflation, balance of payments, government revenues, investment, international trade, industrial production, and employment levels. Azizi Bank has always played a pivotal role towards each and every reform of the Central Bank of the country, and has marked itself out as a pioneering force of financial inclusion programs and branchless banking. Recently, in a bid to further bolster these initiatives, Azizi Bank has signed an MOU with the Afghan Postal Service to provide branchless banking through their more than four hundred and fifty post offices covering the country and some of its most remote locations.

The team at Azizi Bank is also made up of the bankers of choice for some of the major UN agencies, such as UNICEF, WHO, and WFP, who are present and working in Afghanistan. Azizi Bank is all about enabling these agencies to make their payments and disbursements to the far and rural areas of the country. Furthermore, this outstanding bank is the only bank in the country to have a mobile wallet solution, called AZIPAY, for all types of payments, including paying utility bills, education fees, groceries, and airline tickets. There is even excellence with the more comprehensive financial inclusion initiatives, with Azizi Bank having converted one of its subsidiary banks into a full-fledged Islamic Bank in the country. This is the first and only full services Islamic Bank in the country to date. With Afghanistan having more than 99% of its population being Muslims, such a change will definitely pave the way for more people coming into the banking fraternity, thereby improving the financial inclusion ratio of the country.

Since its inception, there have been several core founding values that have been the focal point of the bank and its championing of sustained financial growth in Afghanistan. Azizi Bank has always believed in innovations, and has never stepped back away from investing in innovative technological initiatives. The bank also has the best in class management board and senior management in the country, comprising of experienced bankers with an averages of more than two decades’ experience from the United States, India, Pakistan, Africa, and Europe. Azizi Bank has also always believed in the learning and development initiatives towards capacity building, and have built a comprehensive policy on the same. These structural reforms have brought in change within the bank to a large extent, and have always made it unique compared with other peer banks working in the country.

As has already been conveyed above, Azizi Bank prides itself on being a technology-driven back that makes full use of some of the latest technological innovations from across the world. With society moving towards more digitalization than ever before, the customer’s perceptions have changed on what they can access and want from their banking services. Afghanistan in particular is a country where more than half of population has a smart phone, and there is greater opportunity for banks to invest more into technology than ever before. Azizi Bank has foreseen this opportunity prior to its competitors and peers, and is now in a position where it can adapt to the ever-changing present and future. One of the ways in which the bank has taken the initiative and seized the day regarding innovative technology is by being a prominent voice on several developmental projects aimed at meeting financial customers’ expectation all across Afghanistan.

Providing technologically-savvy services banking services is the goal for many institutions, especially now that the world is moving towards an increasingly digital society. With the gradual transition towards advanced digital banking, there comes a greater need for traditional banks to keep up with modern systems and innovative ways of doing things. Azizi Bank has also initiated different tailor-made products for both deposits and advances meant for different levels of society, including accounts for children, students, women, senior citizens, retail businesses, small and medium enterprises, and entrepreneurs to name just a few. Despite the wealth of innovation on show at Azizi Bank, there have also been challenges presented by the COVID-19 pandemic.

The arrival of the pandemic meant that Afghanistan, which is a predominantly import-driven economy, witnessed a surge in the cost of commodities, thereby affected the normalcy of life and common people. Industries of all sectors and types were affected, and so was the fate of the financial sector as well. In essence, the economy and economic growth of the whole country took a massive hit. There has been some impact on Azizi Bank amidst the pandemic, which has sustained itself almost a year and still counting. With the initial lockdown in place for the first few months of 2020, business was seriously hampered, though there was no significant decline for deposits. Where Azizi Bank really was affected was new business. Overall trade finance and the recovery of loans has been another key area affected by the pandemic, although the Central Bank of Afghanistan did come out with a detailed recovery plan to aid the situation and get the country back on its feet as soon as possible.

Pandemic or otherwise, Azizi Bank did have a strategic business plan in place, as well as a disaster recovery plan considering the geography of operation. The bank is always prepared and ready to face any sort of adverse situation, including this current crisis. As a bank, Azizi Bank also took steps and made plans even before the government made any sort of official announcement in terms of business contingency, staff contingency, and operational contingency initiatives and operations. Azizi Bank took immediate steps to ensure total safety and stability for itself and its staff, even before the lockdown was announced. All mediums of communication were used to reach staff and the public, and the bank stopped all meetings, conferences, customer gatherings, and training. In the immediate aftermath of the announcements made by many world governments, including Afghanistan, Azizi Bank formed a committee to analyse and make plans to curve this emergency situation.

Safety precautions including complete sanitization, thermal meters, face masks and gloves, and more were initiated at all the branches for both customers and staff alike, whilst plans were also made to rotate the staff so as to avoid close proximities. Expatriate staff members were also encouraged to work from home where possible, thereby minimising the risk of transmission and infection. Armed with these various safety measures and initiatives, life will eventually return to normality for Azizi Bank. However, with the ongoing political uncertainty still prevailing and international donors reluctant to pump in additional funds, this latest COVID-19 scare will definitely affect the overall growth of the Afghanistan economy. Stability will take time, but Azizi Bank will see it through.

Outside of the financial work carried out by Azizi Bank, there is also a deep-rooted and ever-present commitment to charity work and community-based initiatives. Azizi Bank is the only banking institution in Afghanistan that has a sustained CSR Policy and Responsible Banking. For the team, they consider CSR as one of the most important aspects of growth, and the institution also supports the important cause of the government in terms of sustainability initiatives. Supporting society as a whole is equally important, and there are a great many ways in which Azizi Bank does this too. The bank’s involvement on CSR initiatives has made a great impact across society and for the brand of Azizi Bank.

In working on these initiatives, the bank has been quite active for the last five years on various initiatives across the country and has therefore received considerable amounts of appreciation from the government and wider society. From a community service perspective, Azizi Bank has supported multiple hospitals and homes in terms of providing medicines, essential utilities, infrastructure development, food materials, stationeries, and organising blood donation camps. The team at Azizi Bank have also focused their time on various environmentally sustainable and green initiatives. Working in this area, the bank has endeavoured to stand out by starting a green initiative that involved planting thousands of trees across Afghanistan. Alongside this, there are also campaigns on saving water and pollution control, two of the most prominent environmental sustainability issues faced by many all over the world.

Azizi Bank has recently partnered with the National Environmental Protection Agency (NEPA) of the government of Afghanistan, and this partnership will surely lead to collaborative work on various other initiatives aimed at increasing environmental sustainability. Finally, the last core area that Azizi Bank works in outside of its own four walls is that of community support. Azizi Bank has always sought to provide free training sessions to local college graduates and management students alike, with topics ranging from banking and finance, to the inner workings of an economy, and much more. Whilst this is a community support initiative aimed at giving finance students the best possible knowledge around, it also doubles as the perfect recruitment opportunity. Qualifications is one thing, but Azizi Bank also encourages fresh graduates to push their way to the forefront of the industry and make an impression with their dedication and commitment to understanding finance.

Ultimately, Azizi Bank is far more than just an exceptional institute of finance. Rather, it everything a country could possibly want from a bank that seeks to be innovative, be a unifying force that invests in the future, and delivers outstanding financial services to everyone in the country. Azizi Bank is constantly redefining its own success, and is fully deserving of this latest success from Wealth & Finance International Magazine as being recognized as 2020’s Best Commercial Bank in Afghanistan.

Few Words about the bank’s CEO – Dr. Prof. Mohammad Salem Omaid

A result oriented proficient starting his professional journey with Azizi Bank in 2006 as a Finance Officer and successfully ascending the steps to become the President and CEO. In his career span of more than 14 years, Dr. Omaid handled diverse roles having rich & extensive experience in Finance & Accounting, Corporate Accounts Trade Finance, Corporate Credit Financing, Operational Banking, Investment Banking and Retail Banking. Initiated several measures, Bank Products, Technological products aimed at promoting the bank and its objectives. Dr. Omaid’s contribution towards refining the banking structure in the country earned him appreciations & accolades not only from the Govt. & Public body within the country but also from the international agencies worldwide.

Dr. Omaid’s experience and knowledge for a sustainable growth earned him several international accreditations and he is also the only afghan conferred with the honorary professorship of Academics, Oxford. He is also the Member of the Europe Business Assembly, UK, The World Confederation of Businesses, USA and an active member of BAFT, USA. He is also associated with the ICC, Banking Commission, Afghanistan and is the Chairman of the Afghanistan Banks Association.

He is also the recipient of the Asian Banker “Young Banker” Award in 2017, being the only one from the Central Asian Region till date. In 2020, Dr. Omaid is conferred with the Professional Doctorate by the European International University, Paris for his endurance, commitment and leadership in shaping a bank in Afghanistan as per international standards.

A visionary leader and a highly respected citizen in the Islamic Republic of Afghanistan.

For more information, please contact Samrat Dutta at www.azizibank.af

Bitcoin
ArticlesMarketsStock Markets

Bitcoin to Hit Fresh Highs – But Standby for Regulator-Triggered Price Swings

Bitcoin

The Bitcoin price nears $50,000 and will continue to reach new highs in this first quarter of 2021 – but investors should also expect volatility due to increasing regulatory scrutiny.

This is the warning from Nigel Green, CEO and founder of deVere Group, one of the world’s largest independent financial advisory and fintech organisations. 

It comes after the cryptocurrency hit more than $49,700 for the first time in history on Sunday the 14th of February.

Mr Green says: “Last week was a massive one for Bitcoin, reaching new all-time highs amid soaring interest from institutional investors.

“Morgan Stanley, the U.S. investment giant is reported to be considering investing in Bitcoin through its $150 billion investment arm; Elon Musk’s Tesla announced it had invested $1.5 billion in the digital currency and was getting ready to accept it as payment; BNY Mellon confirmed that it had created a digital assets unit to build a custody and admin platform for crypto assets; and Mastercard said it would give its merchants the option to accept cryptocurrencies later this year.

“In addition, Miami confirms it is considering paying workers and collecting taxes in cryptocurrency and the mayor of the city wants to hold Bitcoin in the city’s treasury.

“This all follows the likes of PayPal’s decision last year to allow customers to buy, sell and hold Bitcoin and as Wall Street giants like Goldman Sachs and JP Morgan issue RFIs (request for information) to explore Bitcoin and crypto asset custody.”

He continues: “There is a clear direction of travel: institutional investors are taking Bitcoin more and more seriously as a financial asset and a medium of exchange. They are increasing their exposure to it at a faster rate than ever before.

“This is pushing cryptocurrencies ever more into the mainstream financial system and, subsequently, driving the price skywards.”

The deVere chief goes on to say: “With the growing institutional demand combined with ultra-low interest rates, we can expect Bitcoin – which has already given a 55% return so far year to date after the 300% gain in 2020 – to reach new highs in this first quarter of 2021.

“However, with increasing dominance and value, comes increasing regulatory scrutiny. 

“Bitcoin and other cryptocurrencies will come under the spotlight from watchdogs like never before and this can be expected to create volatility in the market.”

His warning comes as central banks and governments around the world ramp up their focus on digital currencies. 

In the U.S. in recent days, Treasury Secretary Janet Yellen raised again the prospect of future cryptocurrency regulation and as the Securities and Exchange Commission (SEC) could reportedly investigate Elon Musk over Tesla’s $1.5 billion Bitcoin purchase.

Nigel Green concludes: “Institutional investors are increasingly appreciating that in this tech-driven, ultra low interest rate, low growth world, and where there is diminishing trust in traditional currencies, digital and borderless cryptocurrencies may be becoming a better fit.

“We can expect the price of Bitcoin to surge to fresh highs as a result.  But investors must be aware that regulatory pressures will cause price turbulence.”

economic recovery 2021 covid pandemic
ArticlesMarkets

Self-employed Workers Estimated to Contribute £125 Billion to Drive the UK’s Economic Recovery

economic recovery 2021 covid pandemic
  • Self-employed and side-hustler movement continues to thrive despite challenges caused by COVID-19

  • Over 55s are leading the way in starting new businesses or side hustles during the pandemic

  • By choosing a challenger banking, newly formed businesses are more likely to grow

Research released on Monday by Mettle, the NatWest-backed business account, using YouGov’s platform, estimates that the UK’s growing self-employed and side hustler movement will contribute an estimated £125 billion in turnover to the UK’s economic recovery in 2021. Furthermore, small and medium-sized businesses (with 1-49 employees) are estimated to contribute approximately £310.46 billion.

Pre-pandemic in 2019, the Office of National Statistics (ONS) found over 1.1 million people were either employed in two jobs or self-employed in addition to having another job. COVID-19 has only accelerated this and the growth of the self-employed and side hustler movement, with changes in employment and lifestyles pushing more people to work for themselves than ever before – either through choice or out of necessity of being furloughed or made redundant. The population of self-employed workers in the UK now sits at over five million, making up 15% of the UK’s workforce.

Around 25% of all UK adults now consider themselves to be a side hustler, according to Henley Business School. Having ‘a side hustle’ in addition to a full-time job (from freelance design work, to a passion such as wedding photography), has for the first time for many, become a necessity to supplement income.

Mettle’s research surveyed 2,194 self-employed workers to uncover the role of this segment in boosting the UK economy, the barriers they faced when starting their venture, and the role of banking organisations in helping them thrive.

According to the research, the most popular motivation for going solo was the flexibility and freedom it provided (57%), followed by their desire for a change in work/life balance (38%), and wanting more meaning and purpose in their life (24%).. Those aged 55 and over are leading the way when it comes to self-employment, with 38% of limited companies and side hustles formed post-March 2020 having been established by that age group.

The rapidly expanding self-employed and liquid workforce movement is being supported by a rise in challenger banking solutions that provide online products and services. The majority (83%) of respondents who use challenger bank services and feel supported by them, felt this was because of the ability to do everything virtually, their bank’s ability to get things done quickly (61%) and the fact that their innovative technology and products are more compatible with their business needs (51%).

Compounding this, the COVID-19 pandemic is making the challenge of running a business or side hustle even more difficult. 57% of those surveyed are not looking to expand their business or side hustle or enter a new sector in 2021, with over a quarter of respondents specifically not looking to expand (29%) citing the UK’s economic uncertainty as the reason why. More than ever solutions like Mettle are of utmost importance to help this audience to manage their finances, and to support their maintenance, growth and contribution toward the UK’s economic recovery.

Marieke Flament, CEO of Mettle, commented: “More people are choosing to start or create something of their own than ever before due to changing lifestyles, personal circumstances, or fulfilling a personal ambition. This research highlights the importance of this growing movement for the UK’s economic recovery in 2021 – particularly amongst the over 55 age group.

“The smallest end of the SME market has historically been underserved in terms of business banking, with the majority of incumbent institutions focusing on large commercial customers and corporates. This made it difficult for small business owners to get set up quickly, get paid and tax ready. We champion self-employed workers and side hustlers and are dedicated to building our product to serve them and their needs.

“As the UK looks to rebound from the economic damage caused by COVID-19, it’s absolutely vital that this segment has access to the support and services it needs to thrive. Mettle’s position within NatWest means we can facilitate this. We leverage the experience and risk knowledge of NatWest, but we also operate like a start-up, so we can move at pace and offer a product that enables self-employed and side hustlers to start, run and grow their businesses successfully.

“Banking doesn’t need to be complex, and we think new small business owners, self-employed workers and side hustlers should be able to rely on their bank to help them easily navigate day-to-day processes as they focus on overcoming the macro-economic hurdles outside of their control.”

Woman credit card
ArticlesBankingCash Management

How to Build Credit the Right Way

Woman credit card

People say that money makes the world go round, but the truth is that good credit provides you with the most opportunities. Building credit can be a challenge if you don’t have any previous history. However, it’s an essential part of life and can simplify many situations.

Keep reading to learn three methods of building credit the right way.

 

1. Open a Credit Card

Most people know that opening a credit card will influence their overall score and history. However, they don’t know how to maximize it for their own benefit. Here are three factors to consider.

 

Choosing a Secure Credit Card

There are many credit cards available on the market, but it’s essential to know the difference between secured and unsecured cards. Simply put, secured cards require an upfront deposit that minimizes the risk for the issuer. With a secured card, you can build your credit without risking going into debt. They’re typically much easier to obtain an unsecured card — making them a good option for anyone with limited credit history. The only downside is that your deposit creates a cap for your spending limit.

 

Getting a Co-Signer

If you’d like to have an unsecured card and don’t have a credit history, you can consider getting a co-signer. This person would agree to take on your debt if you default on paying. If they have good credit, then you’re more likely to get approved. The downside is that most major credit card companies do not allow for co-signers. You’ll need to research your options if you’d like to take this approach.

 

Making Regular Payments

To build good credit, you’ll want to make regular payments regardless of the card type. It’s always best to pay off the debt in full. Keep in mind that late payments can cause additional interest and penalty charges to accrue. Additionally, your payment timeliness influences your score.

 

2. Apply for a Loan

When the situation calls for it, loans are extremely beneficial. They typically have lower interest rates than credit cards and can allow an individual to purchase something outside of their savings range. Many loans are also known as good debt because they help a person pursue investments that improve their life. They also influence credit and can help build a long-standing history.

From this standpoint, it would be worthwhile to make a significant purchase or investment using a loan. These purchases encourage natural credit building. Keep in mind that you should only borrow as much money as your feel comfortable paying back. Defaulting on a loan will damage your score, so it’s worth setting up an automatic repayment program.

 

3. Become an Authorized User

One of the easiest ways to build safe credit is by becoming an authorized user on another’s account. When added, you gain access to their available funds and earn a credit history without liability. Unlike co-signing, if the other person stops paying, you are not responsible for covering their fees. However, it’s beneficial to choose someone who pays their bills on time and is financially stable, so their account does not negatively affect your score.

 

Be Patient

You can use these three ways to grow your credit and check the results using annual score reports. Good scores allow you to get lower interest rates on future loans and credit cards and improves your chances of getting approved. Building credit takes time, but it pays off in the long run.

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ArticlesBankingTransactional and Investment Banking

Women Investors in Loans Rose by 43% in Europe in 2020

female investor stock market
Mintos, the largest marketplace for investing in loans in Europe, saw a stable increase among women investors in the EU, with the sharpest growth in Estonia, where women constituted 36% of all newly registered Estonian investors. Meanwhile, Germany led the way with the highest number of women investors overall. 
Despite the COVID-19 pandemic, Mintos, the leading alternative investment marketplace for investing in loans in Europe, has reported an increase in women investors in 2020. The company, which holds 40% of the market share in the EU, saw women investors increase by 43% over the course of 2020. Women constituted 15% of the total 363,312 investors on the marketplace that houses the majority of women retail investors in Europe. 
The most active women investors in loans last year were based in the Baltic region, most notable when looking at the proportion of investment activity by gender in a county by country comparison. In Estonia, women made up 36% of all the country’s newly registered investors last year, while in Latvia and Lithuania the number was 25% and 18%, respectively.
In terms of total number of women investors, Germany led the way with 3160 women investors, who constituted 13% of all investors. In Estonia, there were 2129 new women investors, while in Spain—1442.
“The fact that an increasing number of women consider and actually start investing is a victory to everyone, knowing how underrepresented this group of investors is,” said Martins Sulte, CEO and Co-founder of Mintos. “It also shows that alternative investments, especially loans, are an attractive asset class for women investors.”
The demographic breakdown also shows that the average amount of first investment among women investors, who chose to invest on the marketplace ranged from €20 to €1300. Women investors who chose their first investment amount on Mintos in the range from €0-50 were from countries such as Germany, Denmark, Finland, Andorra, Serbia, Monaco. Investors from Austria, Estonia, Spain, Czech Republic, Poland, Portugal, Lithuania, Switzerland, Bulgaria, Italy, Romania, Belgium, Slovakia, Hungary, Greece, Sweden, Luxembourg, Malta, Norway and the Netherlands chose from €50 to €200, while Irish, Icelandic and Albanian investors leaned towards the €200-1300 investment level.
The company also reports that an average woman investor had an outstanding balance of €2,028 at the end of the last year, compared to €4,164 at the end of 2019. The company links this to women investors being more cautious last year due to the impacts of the pandemic, even though the total number of women investors increased. In January 2021 the investment volumes steadily increased, yet it is too early to make any projections at this moment in time.
The total interest earned among all women investors on Mintos at the end of the year was €11.5 million, with the average amount of interest earned per woman investor depending on the country and start date. In Germany, the average interest earned by the end of 2020 was €929, while in the Baltic countries of Latvia, Estonia and Lithuania it was €315, €727 and €849, respectively.
The overall interest in alternative investments among women has been an encouraging trend globally. With more women joining the workforce earlier and staying longer, women now control about $72 trillion of the world’s investable wealth, a number expected to grow as years pass.
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Press releases

Wealth & Finance Magazine Announces the Winners of the 2020 Artificial Intelligence Awards

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Wealth & Finance Magazine Announces the Winners of the 2020 Artificial Intelligence Awards

United Kingdom, 2021- Wealth & Finance magazine has announced the winners of the 2020 Artificial Intelligence Awards.

This year’s programme marks a continuation of the extraordinarily successful inaugural awards. From software developers working on next generation tech, to the firms that utilise best in class options to deliver exceptional results, this programme has sought to distinguish those who are working hard to define future of an industry just realising its full potential.

Awards Coordinator Jessie Wilson took a moment to congratulate the winners: “Artificial Intelligence remains a powerful tool indeed for those looking to capitalise on the possibilities of technology to enhance established industries. The Artificial Intelligence Awards were created to showcase the firms that are making extraordinary strides in the arena, and look set to hone best practices. Congratulations to everyone, and I wish you all a wonderful and productive year ahead.”

To learn more about our deserving award winners and to gain insight into the working practices of the “best of the best” in AI, please visit the Wealth & Finance website (http://www.wealthandfinance-news.com/) where you can access the winners supplement.

ENDS

Notes to editors.

About Wealth & Finance International

Wealth & Finance International is a quarterly publication dedicated to delivering high quality informative and up-to-the-minute global business content. It is published by AI Global Media Ltd, a publishing house that has reinvigorated corporate finance news and reporting.

Developed by a highly skilled team of writers, editors, business insiders and regional industry experts, Wealth & Finance International reports from every corner of the globe to give readers the inside track on the need-to-know news and issues affecting banking, finance, regulation, risk and wealth management in their region.

Small business loan form .
ArticlesBankingCash Management

‘Normal’ Bank Lending to SMEs Down 10% Last Year As Banks Focus On CBLIS & BBLS Loan

Small business loan form .
  • £61bn of CBILS & BBLS loands handed out to SMEs

  • Alternative lender market vital for SMEs looking to grow in 2021

The outstanding value of non-emergency lending by banks to SMEs has dropped by 10% from £168bn in December 2019 to £152bn in December 2020, shows new research from ACP Altenburg Advisory, the debt advisory specialist.

ACP Altenburg Advisory says the research shows that once CBILS and BBLS loan schemes come to an end, SME businesses are likely to struggle to obtain finance from banks which is not partly or fully underwritten by the Government.

Total CBILS and BBLS lending to SMEs has ballooned from £4bn in April 2020, to a total of nearly £61bn that has been lent by December 2020*.

Once the CBILS and BBLS schemes come to an end, ACP Altenburg Advisory says banks may have limited appetite to lend and increase their exposure to the SME sector any further, given the significant increase in overall SME lending over the past 12 months when including the emergency lending.

Many banks are already reducing non-emergency lending to new to bank business customers. As CBILS and BBLS loans are underwritten by the Government, banks have been able to offer better terms for those loans than for ‘business as usual’ lends, which do not provide lenders with the same safety net.

ACP Altenburg Advisory says, therefore, alternative lenders are likely to be sought after in the coming months as SMEs find it more difficult to obtain finance from traditional lenders.

Will Senbanjo, Partner at ACP Altenburg Advisory, says: “CBILS and BBLS loans have dominated banks’ lending activities to such an extent that they have limited capacity to write normal loans to SMEs. This means that businesses looking to grow may struggle to obtain the funds they need.”

“SMEs looking to raise additional funds for growth in the months ahead may need to look at the alternative options, such as asset-based lending or alternative lender funding. Alternative lenders are open for business and are keen to deploy capital to well-managed businesses that have strong growth potential.”

Debt advisers can be crucial in helping a business to obtain the right funding package to fit their business needs. Advisers can help a business understand and explore the various funding options open to them, and then help them present their business to the most appropriate lenders in the right way.

*Based on data from the Bank of England and the British Business Bank. SMEs are defined as businesses with less than £25m turnover.

Dogecoin, bitcoin crypto currency
ArticlesMarketsStock Markets

Bitcoin, Dogecoin Hit All-time Highs Driven By Elon Musk – But How To Choose An Exchange?

Dogecoin, bitcoin crypto currency

Bitcoin was driven to new record highs on Tuesday morning – trading above $48,000 – as investors continue to pile in on the news that Tesla bought $1.5bn worth of the cryptocurrency.

A filing with the U.S. financial regulator on Monday reveals that the electric car company run by the world’s richest person, Elon Musk, has made the massive purchase of the digital asset which has jumped more than 300% in a year.

The surge in the price of Bitcoin and other cryptocurrencies, including Dogecoin – which was also fuelled by an endorsement by Musk on Twitter over the weekend – comes as digital currencies become mainstream due to soaring interest from both retail and institutional investors, increasing levels of mass adoption, and as global interest rates remain at historic lows.

But how does a new crypto investor choose a platform on which to buy, sell, hold and exchange?

Nigel Green, an influential cryptocurrency expert and CEO of deVere Group, one of the world’s largest independent financial advisory and fintech organisations, says there are five fundamentals.

He says: “More and more people are wanting to invest into cryptocurrencies, knowing that they are the future of money.

“But many, even those who have extensive knowledge of the stock market, have concerns about selecting the right cryptocurrency exchange.

“The total capitalisation of the cryptocurrency market is now an estimated $1.2 trillion, but it is still lightly regulated. This means that it’s vital that investors know what to look for in an exchange.”

He continues: “There are five fundamentals for your checklist.

“First, security. The system of a private exchange for saving consumer documents as well as funds should be as decentralised as possible as if it’s all on a couple of web servers, that makes them easy hacking targets.

“Investors should also look for a system that utilises two-step verification throughout login, such as a password, and also quick-expiring codes received through the app.

“Avoid exchanges which offer cheap trade costs or services but are based in areas around the world where investor security is weak.

“In addition, investors ought to assess exchanges as well as the businesses behind them as they would certainly do with any other organisation that they would depend on to protect their money.”

“Second, costs. Some exchanges are proficient at addressing costs in advance, while others hide them. Go for the exchanges that are upfront and transparent.

“Third, simplicity and ease of use. Take into account that you’re not always going to trade from your desktop. In fact, finding an exchange that focuses on ‘on-the-move’ trading via a secure app is often a better option.

“Fourth, dependability. Does the exchange run efficiently when trading quantity is high, or when the currencies rate is see-sawing? Some exchanges are notorious for their system accidents and trading stops.

Fifth, client service. Make sure an exchange has a chat or fast communication service integrated.”

Mr Green concludes: “Whilst Elon Musk’s Tesla, and other institutional investors, including PayPal amongst others, will have teams of crypto experts behind them, retail investors can also get involved.

“Investing in cryptocurrencies remains highly speculative and it is not for everyone – but one of the keys to success would be selecting the right crypto exchange.”

gold money investment
ArticlesFinanceFundsTransactional and Investment Banking

Why People Are Going Gold As An Investment

gold money investment


Gold is one of the safest investments available, apart from a savings account. This is because of its stability, even in uncertain times. In the past, owning gold was quite controversial because of the worries surrounding its price fluctuation and potential instability. Now, however, more people choose to invest in gold as part of their overall assets because of its many benefits. For one, investing in precious metals is a good way to protect your savings.

When you hear about the benefits of investing in gold or buying gold products, most people associate it with investing in jewelry. While this is certainly a key component to any well-rounded portfolio, gold itself is a much broader asset. Gold can be used to buy or trade almost anything – bonds, mutual funds, stocks, commodities, and even estate. If you’re looking for a way to diversify your portfolio but are worried about your investments in gold being exposed to more risk than other assets, then look into investing in precious metals as a part of your portfolio.

Here’s why people are turning to gold as one of their investment options:

1. You Can Start Even With Only A Small Amount

One of the greatest advantages of investing in gold like Oxford Gold is that you don’t need to have a substantial amount of money to start. You can begin, even with only a small amount. Hence making it a very accessible option even for those with limited funds to start with at the moment.

Even if you start small, the key is for you to slowly increase your investment, so you can stabilize it in the long run.

 

2. It’s A Very Safe Investment

Gold is considered to be a safe investment. As an investment, it won’t lose its value unlike other stocks and bonds, which are very susceptible to the volatile market.

It’s highly unlikely that you’ll encounter any problem with the value of this precious metal. You can easily earn a lot of money with your gold investment and even increase your wealth within a short time.

 

3. It’s A Stable Hedge Against An Unstable Market

Gold is one of the most stable assets that you can choose to invest in. Even when the stock market goes down, gold continues to retain its value. Therefore, you can consider it as a very safe investment choice.

The thing with gold is that it’s a very limited asset because it’s a precious metal. This stays the same, even if the demand does increase. Because of this, the price continues to go up. This situation makes it a very stable hedge against an unstable market.

 

4. It Gives You A Good Return On Investment

One of the other reasons why gold is also becoming a very popular investment form is that it guarantees a very good return on investment.

There are several factors that influence the rate of return that a precious piece of metal can offer. First, it’s very easy to mine and sell the metal. Second, it doesn’t require too much investment capital to start off with. You can simply start selling jewelry and coins to get started.

With these two factors alone, you can rely on a faster ROI. This means you can start paying back whatever capital you spent on your gold. The profits will also come in faster than expected. It can bring your financial status a sense of security.

 

5. It Protects Against Inflation And Economic Fluctuations

If there’s a dip in the value of currencies around the world, owning precious metals such as gold or silver is a great way to protect yourself against the fluctuations in the value of money.

Because of its value being tied to the U.S. dollar, precious metals are usually the safest investments out there. They don’t depreciate like other assets. This protects you against inflation, as you know the value of your gold investments stays stable, at least.

This makes gold a good form of long-term investment. You don’t have to worry about it losing its value over time. It’s something that can keep increasing in value on a regular basis, so you have great security in knowing they are protecting your wealth.

It also increases the likelihood that if you do sell your assets, you will receive a high enough amount to cover your losses, if you incur any. This can also help provide economic stability for you, particularly when you’re going through big changes, such as newly starting a business, for example.

 

6. It’s Easy To Diversify

The last benefit to investing in gold, in particular, is that they’re easy to diversify. There are so many different investments you can make with them. You can invest in fine gold jewelry, gold coins, ETFs, gold bars, bullion, and coins, for instance.

Gold bars are smaller than bullion coins and are less susceptible to theft. If you want a simple, low-risk investment, invest in gold bars. You can purchase them at banks or from online brokers, and you can store them in safety like a safety deposit box or a bank safe.

Diversification is a great way to increase the value of your investments and protect yourself in case of a crash. Investing in just one gold investment can diversify your portfolio significantly, and you don’t have to sell your holdings to take advantage of these diversified investments.
In the past, investors used to get along just fine without diversifying their portfolios. However, the world’s economy has changed, and most investors have had to deal with the global recession. It’s thereby imperative for investors to start diversifying their portfolios to protect themselves from these negative indicators.

 

Conclusion

Investing in gold is a very good choice for you, even if you’re a newbie investor. These reasons above are precisely why so many have gotten into investing in gold as their choice. The key is for you to just learn more about it and make sure that you understand everything there is for you to know about gold investing. You can learn so much more about it and comprehend it in totality, depending on your risk tolerance, liquidity, and risk level. In doing so, you know that you’re on the right path towards the proper way of investing in gold.

investing for beginners
ArticlesBankingTransactional and Investment Banking

Investing Full Time: What You Need to Know

investing for beginners


Do you dream of pursuing a career in investing but are unsure where to start?


Lets start with the basics

Investments. A broad term that can be used to describe the purchase of a large form of collateral, such as a house or other class of asset. Or smaller item investments can also be used to describe a luxury watch, a prime example of this is when an Air Force Vet purchased a ‘Cosmograph Daytona Oyster Rolex’ back in 1974 for $350, later to find out the exact model is now worth $700,000 in 2020. 

However big or small you want to start your investment journey, as long as you’re prepared to make a long-term commitment your life goals are achievable.

Although investing can increase your wealth whilst staying ahead of inflation, there are always risks involved with ANY investment – which is why it’s important to diversify your portfolio.

Putting this in simpler terms: increase your chances by dividing your capital into various opportunities covering diverse and alternative markets.

 

Do you need a minimum amount to invest with?

To become a retail investor you can start out with under £1000, which you can build on over time. Although most private equity or pre-IPO opportunities have a required minimum investment amount. The offering entity also have to ensure they have enough assets under management (AUM) to achieve their investment goals and cover overheads.

 

Broaden your horizons

If you’re a seasoned or more experienced investor, you may feel passionate about stocks and bonds, but have you considered private equity investment opportunities? These have outperformed the traditional investment asset classes this year.

In a FundRise report titled “Why Private Markets Outperform Traditional Publicly-Traded Stocks and Bonds” it concludes how the evidence strongly supports the view that an allocation of 15% or more of a portfolio to private [investments] leads to higher returns and should be taken seriously by all investors.

 

Be prepared for risk

All investments involve some degree of risk. If you intend to purchase securities – such as stocks, bonds, or mutual funds – it’s important that you understand before you invest that you could lose some or all of your money. … The reward for taking on risk is the potential for a greater investment return.

 

Don’t sell at the first sign of profits!

It’s a wise tactic to allow your investments time to mature as they will likely continue to increase. It is however advised to exit a trade in decline as soon as you can. If you follow this rule, the money you make on your positive investments will far outpace any failed opportunities.

 

Keep your finger on the pulse

If you’re going to pursue a full-time career in investing you will need to access analytical industry insights and keep informed regarding new opportunities or evolving market conditions. Platforms such as Investopedia, Forbes, Bloomberg to name a few will keep you well informed.  

 

The more you learn, the more you earn…

Not only can you interact with digital platforms and even turn on your notifications to receive regular updates… reading some world-renowned books that feature some of the most successful entrepreneurs will help. Investment books are a key element of your personal development and can develop a money-making mindset.

 

Some of the most popular books for a guide to investment:

Rich Dad Poor Dad (1997) by Robert Kiyosaki

The Essays of Warren Buffett: Lessons for Corporate America

Beating the Street (1993) by Peter Lynch

The Intelligent Investor (1949) by Benjamin Graham

Think and Grow Rich (1937) by Napoleon Hill

If you want to invest, educating yourself is a key part of that process. To conclude, anyone can become an investor, starting small and begin progressing into new markets is always a good place to start.

Businessman investor
ArticlesFinanceTransactional and Investment Banking

“The Modern Investor” Setting New Investment Rules

Businessman investor


Retail investors have made quite an impact on the stock market recently, although several seasoned investors deem them as amateurs set to make wrong decisions and lose their wealth. Other experts believe modern investors are becoming a force to be reckoned with.

There is a lot of focus on addressing the modern investors, who are mostly millennials and became a more visible investor group in 2020 by investing heavily in tech stock, seeing the opportunity to hedge against the potential inflation and at the same time exploring alternative investment asset classes. Some seasoned investors are saying the modern investors are just chasing a trend and playing with fire, while others believe the cohort should be taken seriously.

Who is the modern investor?

Modern investors are predominantly millennials, both in age and spirit. Though most of them, especially in the US, have yet to acquire more wealth than their predecessors, baby-boomers, millennials are a growing power in the investment world, already influencing the current industry.

The driving force behind modern investors’ ability to change the industry is technology. From robo-advisors to gamification, tech-savvy investors are increasingly relying on and using apps and the internet. When once investing was a privilege accessible only to well-off citizens, now technology has made it only a few clicks away, presenting a plethora of opportunities to invest not only in the traditional assets like stocks or bonds, but also alternatives like arts, wine, loans, and others. 

Contrary to the general view, modern investors are well-informed. A survey by Accenture revealed that 90% of financial advisors believe their millennial clients are more aware about their investing options than they were five years ago, indicating that the interest and engagement in investing is nevertheless growing.

Alternative investments – crucial part of modern portfolio

Blackstone research on new investor behaviour also shows that alternative investments are rising in popularity as investors are seeking alternative investments to find yield, some for higher returns, or protection from rising rates, or a haven against market volatility.

As modern investment portfolio changes, adapting to potential market changes may require a search for new sources of funding. One of the growing alternative investment asset classes— popular with millennial investors—is investment in loans. Their biggest advantage is higher returns in comparison to passive income instruments, in addition to being a more predictable alternative to growth stocks. As a debt-based product, investment in loans is also less volatile.

“Modern investors have shown everyone in the past year that they are a force that needs to be taken seriously,” said Martins Sulte, CEO and Co-founder of Mintos, the leading alternative investment platform for investing in loans in Europe. “We have worked closely with this investor segment, with over 370 000 retail investors on our platform, who give us feedback that they turn to alternative investments, and investing in loans in particular, as a means to manage their savings or create them.”

Mr Sulte also added that modern investors are more prudent than the industry might think, seeing diversification and alternatives as a way to future-proof their portfolios. 

“We see a trend towards diversification even within our platform, which indicates that modern investors are not reckless as some make it out to be,” he said. “With pensions funds or bank accounts offering low savings rates, we see people search for better options and find passive investing as a solution for higher returns. While we cannot compare investing in loans to savings accounts at a bank due to both being entirely different forms of financial service and risks involved in any form of investing, we do understand and lately witness in greater amounts the interest for making money work much more for oneself.”

Conclusion

For many modern investors, especially those using trading apps, a retail portfolio may include a rather random selection of assets. That said, the retail investors are quick learners and are not as naive as some observers deem them to be. Undoubtedly, there are those that follow the trend, but the modern investors are making their moves and the market is responding accordingly. 

Covid stock investors
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What Has Covid Taught Investors

Covid stock investors
  • 44% of investors are now looking to back UK-based companies rather than global firms –  9,629,000

  • 45% of investors feel their ‘risk-appetite’ has increased due to Covid-19, as traditionally safe investments in big companies are no longer viable – 6,942,000

  • 27% of investors are looking to invest in sectors created by the Covid-19 pandemic, such as PPE, social distancing equipment and virtual solutions – 5,674,000

  • 19% of investors believe the coronavirus pandemic has opened more investment opportunities than it has closed – 6,278,000

Investing was one of the most unpredictable aspects of 2020 for anyone concerned with the market, whether that be a sophisticated portfolio or just a workplace pension. The stock market crash at the start of the lockdown and continued economic disruption has left many wondering what the future will hold, while soaring tech stocks have added further complexity to an ever changing market. But what has the Covid pandemic taught investors? 

The overall effect of this period has led investors to reconsider what they are doing with their investable assets. To understand this shift, SME investment specialist IW Capital has conducted nationally representative research to uncover the sentiments of the UK’s investors.

 

Look beyond the panic

Each period of disruption, like that felt last year, offers opportunity for companies to adapt quickly to the changing times and although there has been a lot of worry and negativity surrounding the new lockdown restrictions, we have to look to the positives with one of them being the roll out of the Covid vaccines. Working with both entrepreneurs and investors, there is a clear desire from the small business community for growth investment and to take a big step growth-wise this year. With a 12% increase in new businesses starting up during 2020 compared to 2019, 2021 is set to create some exciting investment opportunities for investors throughout the country.

 

The unexpected happens 

This year has taught us that the unexpected does happen. Investors need to look to the future and prepare for the unexpected to improve financial resilience. This could be by having liquid assets or a rainy-day fund you can use if investment values fall, which is particularly important if you’re drawing an income from investments. Having options for when the unexpected does occur should be part of any investors financial plan and is something that has been brought to the forefront for many as a result of the pandemic. 

 

Maintain a diverse portfolio

The Covid pandemic has had a far-reaching impact across a variety of sectors, however some industries have been affected far more than others, with travel and hospitality being forced to close for months at a time and unable to trade. In contrast, the pandemic has created opportunities for some sectors too, such as manufacturing and biotech. While a diverse portfolio will still have suffered volatility, it can help lessen the impact. Investing in a range of assets, industries and locations can help spread the risk. When one investment falls, another may perform better helping to create balance.

 

Don’t overreact to market volatility

When the pandemic first hit and the stock market plummeted, many investors began to panic and looked to sell shares in order to avoid potential future losses, but when investing, a long-term time frame and goal is so important. Short-term volatility is often smoothed out once you look at investment performance over a longer time frame. It can be frustrating to see that investment values fell in 2020, but when you look at performance over the last five years, for example, you’ll probably still see an upward trend.

 

Luke Davis, CEO of IW Capital:

“Investing and investing wisely has never been easy by any stretch but this year has been particularly difficult for investors at every level. 2020 demonstrated the value of long term investing and future planning. The stock market crash in March triggered a real halt in investment, and although the market hasn’t fully recovered, there has been strong growth since November and in places in the US share indexes are actually higher than the last year. 

“There have been winners and losers from each stage of the pandemic with sectors like travel feeling the true impact of the pandemic and others like online solutions seeing growth and opportunity in a time of financial turmoil. But, this is true of any world event and has forced investors to look to be more future facing.”