Articles by "Fintech News"
Showing posts with label Fintech News. Show all posts

at 01:05 12
FinTech is the short form for Financial Technology. This is the concept that envelops changes in the structure and digitization in the financial service industries. These changes result in implications in the entire African financial services. These companies consist both of startups and well established financial technology companies. FinTech services have been embraced in the African market share mainly because the continent has insufficient banking systems. It is estimated that 80% of the continent is unbanked, translating to about 330 million adult Africans who lack formal access to financial services.
Fintech Africa

According to TechBullion Fintech news, there is a huge gap that fintech startups could fill with innovative solutions in Africa. The success and startups of FinTech services have been influenced by several factors within the continent. The fact that about 90% of retail services are paid using cash when compared to Europe, where more than 50 % of payments are made electronically, creating a huge difference. Africa lacks modernity of electronic transactions infrastructure hence the opportunity for FinTech services arises. In retail services, these financial technologies have created an opportunity for banking to people who do not have access to bank accounts. In 47 out the 89 markets where mobile money is used, banks and nonbanks are permitted to offer mobile money services.
Secondly, the startup of FinTech services is a major drive to creativity and innovation in Africa, aiding in sustaining Africa's economy. Enhancing transactions within Africa and outside the continent. As compared to other continents like Europe, growth within Africa will be boosted as it is stil a fresh industry in most parts of the continent.
FinTech companies seek to create transaction solutions within certain areas. These can be in the banking and insurance business sectors. The active and profitable areas in the fintech market are in the following sectors; Data and analytics where financial institutions create a vast amount of data to help manage risks. Artificial intelligence, the creation of data to aid in decision-making and real-time human analysis. Payments, to offer new payments solutions which are secure, efficient and convenient. Digital Currencies, to generate virtual currencies that have no central monetary. Crowdfunding, funding several projects by raising by raising money from a large number of people and organizations.
Few examples of FinTech companies within Africa are M-Pesa in Kenya, the mobile money transfer solution that has changed societies in Africa since 2007 and now conquering the whole world. M-Pesa has over 20 million subscribers in Kenya and 7 million subscribers in Tanzania. Zoona founded in 2009, cellphone money transfer that has attracted over 1.5 million active customers and processed over $1 billion transactions value across 1500 agents outlets. Majorly operates in Malawi and Zambia and now expanding to other African countries. Cellulant, a Kenya-based company founded in 2004, it offers banking services, mobile payments to its customers. GetBucks founded in 2010, online system that enables customers especially the small-scale farmers in remote areas to access short-term loans and other financial aids without the need to visit a banking branch. Space Kenya Networks Limited, Web Development Company from Kenya that aims at bringing together all individual consortiums, organizations and different expertise that will drive the development of technology innovations in the African continent. All these will be made possible by the company plan to launch a blockchain incubator, BitHub.
Several challenges are facing FinTech companies in Africa. This is mainly because of the massive investment required to start up these services. Many of these companies emerge from Europe, and the creation of financial technologies is difficult with the non-existent infrastructure. Compared to westernized countries where the services are just smoothened and made user-friendly because of existing technologies. The African governments rely upon developed countries for grants and loans. This financial assistance is inadequate to promote financial technologies. It is therefore up to the interested FinTech companies to seek an alliance with other related companies from other countries for funding. Also, funding requires a lot of persistence before startup and growth of the FinTech Company. Data security is another risk involved in FinTech services. Hacking and loss of consumer information are a threat. Therefore the use of security applications is put in place to guard against such disruptions and leakage of data.

 FinTech services have shown significant investment globally in this century. The user-friendly applications that have been incorporated in these companies have facilitated faster and efficient financial transactions. They have changed how people pay for goods and services across the continent. Besides the few challenges involved, financial technologies are a great boost to economic development and marketing within the African continent.
References
Arner, D. W., Barberis, J. N., & Buckley, R. P. (2015). The Evolution of Fintech: A New Post-Crisis Paradigm?.


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at 07:23 3
Years back, during its 2013 fundraising campaign, Wikipedia raised an amazing $37 million through small donations from over 2.5 million contributors through the Wikimedia Foundation.  The campaign, which was based online, provides a lot of insight for non-profit organizations who need to raise money for their operations.

Wikipedia


Be Succinct

For most small non-profit organizations, it can be tough to fundraise effectively.  However, one thing learned from the success of Wikipedia’s fundraising efforts is that there is no need for a large campaign or flashy come-ons.  A short, simple message that is concise and easily understood is an excellent option for fundraising.  Target your message carefully, and your fundraising may be more effective than you ever imagined.

Be Focused on Your Donors

Make it easier for your donors to contribute, and they will be more likely to do so.  Wikipedia takes donations in more than six dozen currencies and accepts nearly twenty forms of payment.  While this may be a bit excessive for your organization, it is important to meet the needs of your donors and focus on helping them contribute.

Be Prepared to Change

Test to see what works, and always be willing to refine or change your banner designs, verbiage and timing to suit the tastes of your donors.  Wikipedia carried out testing to focus on what worked best across a range of nations, languages and currencies, as well as the “ask amount” that was most appealing to potential donors.  They validated several techniques through their testing that can easily be put into use by small, non-profit organizations.

Be Inclusive

The mobile-friendly nature of Wikipedia’s fundraising banners was also an important part of its successful campaign.  Full-screen messages and smaller, on-screen calls to action led potential donors through a donation process that was ;well suited to mobile payment.

Be Mindful of Results

It’s important to keep track of the results of your campaigns.  With each one, you should gain a better understanding of your donors and use that information to enhance your next campaign.  To follow Wikipedia’s example, set specific goals for your fundraising and create a plan to keep your campaign moving in the right direction.  If possible, employ metrics to compare campaigns and improve on earlier efforts.

A Final Note

Non-profit organizations of all sizes can take notes from Wikipedia’s fundraising success.  Using these strategies in your fundraising efforts can help you meet your goals in future campaigns.



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at 06:45 0
If you ask the average person, most people would say that they do not understand how to invest their money to accomplish their financial goals. However, when looking at the math, investing is the single best way to build wealth over time. If you start early enough in life, anyone can build a sizable amount of wealth and retire comfortably. In our society today, few people have financial freedom. If investing is so simple, then why do so few people have success in this area? This is a huge area of opportunity to help other people become more effective in their personal finances.

investing


Risk is one of the biggest reasons that people do not invest more money. After the latest stock market crash in 2007, many people decided to pull their money out of the stock market and put it in the bank. The problem with that theory is that banks pay a small rate of interest on the money deposited there. Although it may be safe, you are not growing the balance in the account. Since the crash, the stock market has nearly doubled. If you are going to have success with your finances, you need an investing plan to get there. The good news is that there are funds that are less risky than others if you want to limit how much money you can lose if the market drops. Bond funds tend to be less volatile than those weighted more towards stocks.

The rate of return on your investments will determine how quickly your invested capital grows. As a general rule, the more risk you take on, the more your expected return should be. There are stocks of small companies that are much more volatile than those of established ones. If you are close to retirement, you should adjust your investing allocation based off of that. However, if you are young, you can afford to take on more risk in the investing world. In fact, many people recommend that younger people have almost 100 percent of their capital in stock index funds. As you get older, the mix should convert more to bonds than stocks.

Overall, investing is the best way for you to reach your financial goals. In order to succeed, you need to have a long term approach to building wealth. There are a lot of people worried about their financial future. With all of the changes coming in the economy, having a solid nest egg can help you get through the tough times. Instead of worrying about losing your money in the market, you need to make a plan and execute it. Every month, make a point to invest money from your paycheck. This habit will stick with you as you get older and will help you reach all of your financial goals.

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at 06:40 0
2016 was predicted to be an exciting year for traders. With the FED raising rates, the ECB continuing to print money, China’s stocks plunging and emerging economies wanting to take the front page of newspapers, everyone who wants to trade can expect volatility. Fundamental analysist have never had such a wide variety of mixed opinions, while technical analysist see their carefully placed levels and stops thrown to bits day-in and day-out. No matter what your trading instrument is, you need to buckle up.

Volatile Markets



There are a few main ideas which you can use to ensure that you take advantage of volatility and stay on the winning end of it and not get sucked into picking tops and bottoms. Here are the ones we think are best:


1. Time your entries better. The entry point is all the more important if you see a chart going all over the place. Careful with support and resistance lines and try to keep up with the overall trend.


2. Patience is key. Don’t panic if you see price go a few points against you in these times. Trades are not expected go to easy from beginning to end so be prepared for wild swings. Remember you plan and the reasons for which you entered.


3. Stop loss is a must. Because of the wild swings, never set a trade without a stop loss. You should follow this rule all the time, but it is even more crucial during volatile times.


4. Let your profits run. Due to the nature of volatile market, you can never accurately predict how long a certain impulse will last. If you’re in a winning position, secure a part of your winnings or at least be sure to breakeven, while letting your profits roll.


5. You are not your results. One losing day does not make you a bad trader. Especially in volatile markets. There will be people who win and people who lose every single day. Learn to take both wins and losses along with their lessons, but don’t take them personally. You are not your trading record.


If you keep these small pieces of advice in mind while trading, we are sure that you can manage to overcome even the hardest markets. At the end, you know very well there is no winning formula in trading. It all requires hard work, and sometimes this work has to take place in less-than-ideal conditions.

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