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What Does the Future Hold for the Finance Industry

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The finance industry is constantly changing, and as a result, there are many questions regarding its future. Will new technologies mean an end to traditional banking? Or will these innovations take us down different paths that allow people to access financial services without having any say in it themselves? Regardless of where things go from here, keeping up with changes might be difficult for you if you want answers now!

As technology continues to advance, so do our methods and processes for doing business in this area- but it’s not just about what you can see happening down here below; there are also some big things coming up ahead!

There is an increase in automation in everything you do. You can now exchange emails with your bank or access your billing information online. Above all, you’re now comfortably sitting home and shopping. With all these changes entering the picture, it’s only natural to question where the finance sector is heading. If automation is the new norm, what does it mean for you? Whether you work in the financial industry or are a consumer, there is much for you to explore. The financial sector is one of the most rapidly growing ones. So here’s what you need to keep an eye out for in the rapidly spreading sector:

1.Banking Will Get Even More Easier

We all need a bank account at some point. Previously, you were required to go down to the bank and contact an accounting representative. Now you can do banking easily from home. The guidelines are pretty straightforward, and submitting the initial deposit has become even more accessible. There will come a time where banking happens online instead of consumers coming down to the bank. Which in turn, means that bank representatives won’t need to see their clients face to face. That makes banking so much easier and branchless. So institutes can focus on building their company.

2.More Careers In The Sector

Don’t assume that traditional jobs will diminish after automation takes over. Since the financial services industry growth rate is increasing, there are plenty of career opportunities for you to explore. Moreover, you can still become an accountant or work your way to a management position. But, the only difference between then and now is you have the technology to help you.

Automation can help you manage your career better. You also get much more efficient at doing work. That is because your applications and gadgets will handle the bulk for you. There is also much more liberty working in the financial sector. You can work on both the accounting side and the technical side of the financial industry.

3.Online Tax Forms

There are now online platforms that can help you fill your tax forms. Taxation is an essential part of the financial sector, which is also one of the busiest times of the month where people wait on their CPAs to get back to them. Online software can streamline taxation for you. You can compute your taxes to get accurate numbers. After which, it is all about filling out your form and submitting your taxes on time. For the financial sector, having all your books online and submitting your taxes right away is brilliant. It is also far less risky than physical tax forms. If you make a mistake while submitting your tax records, the expense of correction is immense. However, with online tax forms, you get a chance to double-check what you submit before submission. Soon the system of taxation may also become more automated than it already is.

4.More Clients

Technology is beneficial for the financial sector since it will bring more clients. Finance is all about money. However, different financial institutes want to manage accounts and help people invest their money more than money. The future of the finance industry is all about connecting with these clients. Once these institutes connect with them, it’s only a matter of guiding them. Financial institutes can now also find their clients internationally. They will have to brush up on laws about international accounting, but they can handle their cases. For any financial institute getting more clients is a big win. More accounts mean more profit, and more profit means a better reputation as a financial institute.

5.More Expansion

Financial industries are all about protecting consumer interest. Consumers running businesses want to expand. The reason behind the expansion is to maximize profits and get more exposure. Financial companies can now compute what countries and sectors are worth investing in and starting a new business. So, for any business that spells success and a guarantee to work with more financial institutes. As long as there is expansion, there is more money that will get generated. The development also entails financial institutes expanding their territory, so it is worth providing valuable advice. The future is all about making investments. So for any company spending money and expanding their territory is essential.

6.Incorporation Of Cloud Infrastructure

Cloud software has become increasingly popular and allows you to share your documents across various servers. Financial institutes now have a better opportunity to work with other financial institutes more collaboratively. Cloud software is safe and much more secure. They allow a collection of data to stay in one place. You can even put your data into folders to avoid records from mixing up. As a financial institute, you need to have records of all your clients. Previous data is essential for keeping track and drawing stats. With so many operating systems bringing in iCloud, different financial institutes must get comfortable.

7.A Rise In Financial Accountability

Financial companies are handling large sums of money at a time. Consumers want to see some transparency between them and the company. Now with so many AI-enabled devices and software, there is enterprise risk management software available. These give an insight into a company’s financials and supply chain. So anytime a financial company tries to make a decision, they know what they’re doing. It also helps managers predict disruptions and economic turbulence that may occur due to one decision. These decisions include what clients to hand out a loan to and which to hold giving out loans. That is because loaning is a delicate process. If you happen to loan a client who has a bad bank record, your company will suffer.

8.Online Payment Methods

The world is striving to become paperless, and that is for two important reasons. The first is because we need to become environmentally sustainable. It is also because the world is becoming all about convenience. With so many people using their phones and laptops, it has become a bother to carry cash. It’s even a bigger bother to take a card around. Now there are ways of paying for items you want without carrying your wallet. Features like Apple Pay allow you to carry all your necessary documents in one place. Soon phones will completely take over the sector.

Wrap Up

The financial sector is one of the most critical sectors of a growing economy. However, as technology takes over, every industry is going through an immense transformation. The financial sector is no different. With the direction most industries are heading, it’s only a matter of time till we see improvement. There will be more branchless maintenance of accounts. The financial sector will also get a chance to acquire more consumers while consumers enjoy making their payments online.

Source:Plato Data Intelligence

Blockchain

The DeFi Smart Contract Automation Network Gelato Raised $11M in its Series A Funding

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Gelato, a smart contract automation network focused on the DeFi sector, announced that it has raised $11 million led by Dragonfly Capital in its Series A financing.

In this round of financing, main supporters include ParaFi Capital, Nascent, IDEO CoLab Ventures, and Aave founder Stani Kulechov. The funds will be used to establish a “cryptocurrency Zapier”.

Gelato enables everyone to leverage the power of a decentralized network of bots to fully automate the movement of their money between different protocols on Ethereum.

Through the development of Web 3.0 automation, they can automatically rebalance their investment portfolios and execute transactions to protect their investments from major losses.

Mika Honkasalo from ParaFi Capital expressed that:

“Gelato expands the capabilities of smart contracts, which are by default inactive and only execute when a user triggers them. Gelato’s network of bots can be used to support a wide variety of applications that require automated actions — from liquidity provision strategies to margin management, and other DeFi use cases.”

Under the operation of a decentralized robot network, Gelato network provides dApp developers with a user-friendly UX to expand and simplify users’ transactions in the DeFi field.

Gelato co-founder Hilmar Orth said that the team is building their own DeFi applications, aiming to run smart contracts autonomously while ensuring that the infrastructure executes its logic is censorship-resistant, decentralized, and reliable.

Despite the smart contracts on the Ethereum network run by the main DeFi protocols, it also supports the smart contracts on the two blockchains, Polygon and Fantom. Gelato network is actively cooperating with other blockchains, including Binance Smart Chain, Arbitrum, Optimism, and Avalanche.

The decentralized finance (DeFi) sector took the world by storm in 2020 after its value grew by fourteen times, with total value locked (TVL) in this sector stood at $208 billion.

In the long run, the trend of decentralized financial automation is expected to be trending to improve user experience in the future.

Image source: Shutterstock
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Source: https://Blockchain.News/news/the-defi-smart-contract-automation-network-gelato-raised-11m-its-series-a-funding

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Finance

Tiger Global in talks to lead over $100M investment in India’s Slice

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A number of high-profile investors are chasing to invest in Slice, a fintech startup that is attempting to expand the market for credit cards in India.

Tiger Global is in advanced stages of talks to lead a round of over $100 million in the Bangalore-based startup, sources familiar with the matter told me.

A number of other firms, including Insight Partners, Ribbit Capital and Greenoaks, are also engaging with the startup, sources said, requesting anonymity as the matter is private.

Deliberations are ongoing and the terms can change, sources added.

Slice, which has raised around $30 million in its previous equity financing rounds and was valued at under $200 million in a round earlier this year, declined to comment. Slice counts Blume Ventures, Gunosy Capital and Better Capital among its investors.

Tiger Global declined to comment.

Even as hundreds of millions of Indians today have a bank account, only about 30 million have a credit card. Most people in the South Asian market are not eligible to get a credit card, and even many of those who are don’t bother to get one because the experience of signing up is too clumsy, time consuming and the rewards don’t make up for it.

Slice has made it easier for far more people — even those without a traditional full-time job — to get a card, and the signup process is swift. In the past two years, Slice has emerged as one of India’s largest card-issuing firms.

It has also become aggressive to reach potential customers. Last month, the startup launched a card with 2,000 Indian rupees ($27) as the default limit to tap the nation’s potential addressable market of 200 million individuals.

In a separate announcement earlier this week, Slice said it issued 110,000 cards last month. The startup, founded by Flipkart alum Rajan Bajaj, says it has more than 3 million registered members, whose average age is 23.

It is also exploring applications atop of blockchain, according to Bajaj’s LinkedIn and the startup’s recruitment posts. Last week, the firm announced that it is offering new hires a three-day week with steady pay and benefits to attract talent that wishes to work on other opportunities — or do whatever else they like — at the same time.

Tiger Global has emerged as the most aggressive growth-stage investor in India in recent quarters. It has backed over two dozen startups in India this year, propelling many of them to the covet unicorn club.

Image Credits: CB Insights

India’s startup ecosystem witnessed a record 519 deals in the quarter that ended in September this year, research firm CB Insights said in a report on Thursday. During the same quarter, the startups raised $9.9 billion, compared to $10.3 billion in all of last year, the report said. Sequoia Capital India was the most prolific investor in the world’s second largest internet market during the quarter with 33 deals.

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Source: https://techcrunch.com/2021/10/07/tiger-global-slice-india-fintech/

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Energy

Eight Roads launches its fourth fund: $450M aimed at European/Israeli scale-ups

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European VC Eight Roads is launching its fourth fund of $450 million for European and Israeli tech companies , aiming for another 15-20 across a broad range of consumer, software-as-a-service, fintech and healthtech areas. Cheque sizes wil range from around $5 million to $50 million per company, and as such, it tends to play more in growth funding rounds. 10-year old Eight Roads is backed by Fidelity, and was formerly known as Fidelity Growth Partners and before that Fidelity Ventures.

Eight Roads has previously invested in companies such as AppsFlyer, Cazoo, Fireblocks, Hibob, Made.com, Spendesk, Red Points, and Neo4j, and now manages over $8 billion of capital across Europe, Asia and the US. 

To give you an idea of how the fund has grown, the first Eight Roads fund was 1st was £100m, the second £150m, the first $375m, and the latest is $450m.

Davor Hebel, Managing Partner and Head of Eight Roads Ventures Europe said: “It’s great to be launching our latest fund at a time when there is so much entrepreneurial energy and ambition in both Europe and Israel and we’re now firmly on a path to building global technology champions out of the region. This additional capital enables us to continue helping ambitious founders scale, win and have a lasting impact on the way we live.”  

I asked the firm whether it will also have a climate focus, given the scale of the problems facing the planet. A spokeperson said the focus on climate cuts across all of its sectors but as an investment theme Eight Roads looks at three main focus areas: 

  • Clean energy – so it has an investment in a Nordic company Tibber which helps people run their homes more sustainably.
  • Sustainable products – Eight Roads has invested in Otrium (fashion marketplace aiming to get every item to be worn), Smol (environmentally friendly house products), La Fourche (organic and sustainable produce), VIU (eyewear brand), and Made.com (online furniture brand)
  • Climate change tools and enablers – e.g. carbon footprint measurement and reduction

During an interview, Hebel told me a major investment theme last year and this had been the shift to remote working, HR systems to support that, and: “Every company needs FinTech now.”

The fourth biggest category for Eight Roads is digital health, also supercharged by the pandemic. 

Enabling technologies, like AI, are also being applied: “I wouldn’t call it a sector, but the machine learning aspect. Like Glovo, which is a company that does internal talent marketplaces for large companies, where you can match people’s talents with opportunities in other parts of the organization.”

I asked Hebel if his company was returning to the office. He said: “I think we’re still feeling our way, you know. I think we said we’ll be two days a week, and then see how it goes. It’s good to see people again.”

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Source: https://techcrunch.com/2021/10/04/eight-roads-launches-its-fourth-fund-450m-aimed-at-european-israeli-scale-ups/

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Finance

IoT News: IoT’s $1B IPO: Live From NYSE | KORE’s CEO Romil Bahl

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IoT News and Interviews - KORE IPO with CEO Romil Bahl

Today I have the pleasure of virtually sitting down with the CEO of KORE Romil Bahl, to discuss becoming the first global internet of things pure-play company to go public in a deal worth one billion dollars.

With so many IoT companies out in the world, it may come as news to many of you that not more companies have gone public, but believe it or not KORE is the first. This was made possible through Cerberus, to which KORE is their first special purpose acquisition company (SPAC) that they have brought public.

According to Romil, a big contributor to their success and fit to go public is their highly predictable and recurring revenue (over 91%). Now I know not all of you may be “numbers people” but take it from someone with a financial degree — anytime you can build a company with recurring revenue over 91%, low working capital resulting in strong free cash flow generation, and are able to have visibility into an average of 90% of forecasted revenue over a 3 year runway, the decision to go public will be one you can’t easily ignore.

Now, before I jump you into the full conversation (below), let me catch you up on who KORE is. KORE is an 18 year veteran of the IoT industry, with over 3,600 customers spanning a variety of industries. They use AI, APIs, and securely connect devices (i.e. mobile gateways, environmental sensors, heart monitors, etc.) to 5G networks, the internet, satellite networks, etc. to help those businesses bring scalable IoT solutions to life all over the world. 

If you enjoyed our conversation, please check out a longer conversation Romil and I had earlier this summer on our podcast where we speak a bit more high-level about the benefits IPOs can have for IoT Companies.

Author
Ryan Chacon
Ryan Chacon – Head of Business Development, IoT For All

Ryan is IoT For All’s Head of Business Development. Prior to helping create IoT For All, Ryan has served as a founder, early stage employee, and start-up advisor — helping to build, market, raise funding for and launch technology related products…

Ryan is IoT For All’s Head of Business Development. Prior to helping create IoT For All, Ryan has served as a founder, early stage employee, and start-up advisor — helping to build, market, raise funding for and launch technology related products…


Contributors
IoT For All
IoT For All

IoT For All is creating resources to enable companies of all sizes to leverage IoT. From technical deep-dives, to IoT ecosystem overviews, to evergreen resources, IoT For All is the best place to keep up with what’s going on in IoT.

IoT For All is creating resources to enable companies of all sizes to leverage IoT. From technical deep-dives, to IoT ecosystem overviews, to evergreen resources, IoT For All is the best place to keep up with what’s going on in IoT.

PlatoAi. Web3 Reimagined. Data Intelligence Amplified.
Click here to access.

Source: https://www.iotforall.com/iot-news-ipo-kore-going-public-interview

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