Eurodollars as Risk Management Tools

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The interest rate markets have witnessed unprecedented fluctuations in recent years. In particular, the subprime mortgage and credit crisis prompted the Federal Open Market Committee...

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Capital Factory

Capital Factory is the center of gravity for entrepreneurs in Texas, the number one startup state in the U.S. Last year more than 100,000 entrepreneurs, programmers and designers gathered day and night, in-person and online for meetups, classes and coworking. We meet the best entrepreneurs in Texas and introduce them to their first investors, employees, mentors and customers. According to Pitchbook, Capital Factory has been the most active investor in Texas since 2013.

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Connected Finances: Top Benefits of Using IoT Technology in Banking

Article | February 19, 2020

Technology has always been the main force behind changes in the banking sector, and now the Internet of Things is going to change the nature of banking itself. If we step back from such isolated technologies like blockchain or the smartphone and try to see the global picture, we easily notice that something is changing, and that’s the way of global digitalization in the financial sector.

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Trending Demand Generation Strategies to Drive FinTech Growth

Article | February 19, 2020

Once referred to as an emerging market, FinTech is a young market with regard to time and investment. It is also an independent market due to its changing trends and regulations. FinTech brands have gained enough capital to grow and expand over the years. The increasing number of smartphone users and affordable internet connections suggest a paradigm shift in the nature of banking with transactions going mobile-first. Raising dependency on mobile banking, online payment, and mobile wallets are cascading from luxury to basic requirements, making it one of the top reasons for both challenges and growth opportunities in the FinTech market. Besides, the FinTech market also includes businesses that provide AI solutions and work on risk & compliance management that is enabling companies to run smoothly even after the pandemic. Other winning sectors in the FinTech market are companies engaged in loans and insurance which are likely to do well. However, driving Fintech demand remains a key challenge for most companies in a fast-changing and evolving marketplace. By the end of this article, you'll be able to apply FinTech lead generation strategies to drive growth for lead generation for FinTech companies. Balancing Finance & Technology Technological advancement is dominating almost every market. Finance technology is emerging as an enabler for various industries helping and supporting finance teams to balance and manage their daily activities, financial close, collaboration, and documentation providing more visibility to transactions. FinTech brands invest in developing frictionless and seamless e-banking solutions and other financial and money management services. The FinServ market is witnessing a change in simplified access, embedded financial services, and financial inclusion. Developing a new product range allows FinTech brands to please investors to gain more funding and overcome other traditional investment barriers. Proven Demand Generation Strategies for FinTech If you are running a FinTech company, then FinTech marketing is all that's on your mind, particularly when the traditional banking companies are making up with the emergent technologies, best-in-class user experience, and expectations. Here are the top strategies for FinTech demand generation. Go mobile with your marketing initiatives In the 21st century, everything is on mobile. If you aren't considering a marketing initiative around this handheld device, you're missing out on one of the most effective ways to connect with the target audience. According to a recent study, on average, an individual spends 5hrs a day on a mobile device, and the time spent on mobile apps has skyrocketed a massive 69% from 2016. More than 50% of mobile phone users prefer online searching before buying anything. B2B FinTech companies need to focus on mobile phone users to get the most out of their marketing campaigns and reach their target audience. Create valuable content FinTech content must first address what problem it intends to solve, how it will solve, what are the benefits, what is its advantage over legacy processes, how it adds value, saves time and costs, drives growth, or simplifies processes. To create valuable FinTech content, you need to consider the following: • Analyze your target audience • Content competitive analyses • Note down your content goal, whether it's for awareness, engagement, or conversion stage. Segmented content hub - blog, white papers, case studies, eBooks, press releases, etc. Create a content hub or digital library that houses all your articles, blogs, case studies, whitepapers, eBooks, press releases, etc. this is an effective way to engage the target audience and generate demand. Ensure that your content plan is organized so that you cater to the requirements of all the platforms and audiences. While you focus on creating content on trending topics, you also need to ensure that you create evergreen content. Create a content calendar for the year. This will help you plan the theme you are going to cover each month for your target customers to drive demand in a phased manner. Create matchless video content to generate demand Video content is the most potent form of content marketing. According to a survey, around 87% of marketers use video for FinTech lead generation. Videos are used in different ways to generate demand. Video marketing does not always mean creating a new video, but leveraging or repurposing an existing one, judging your investment, and creating a new video, if required. The key idea of video marketing is to get a slice of the market which is being influenced by the evolving taste of content consumption by consumers. Getting your content out in the most trending format will help you get noticed in the clutter, build brand awareness, and also convey your message to your target audience. Adding a form or a call-to-action at the end of the video gets you qualified leads. Some of the commonly applied video marketing strategies include: • Use video in landing pages • Place video along with a form or other call-to-action button. • Optimize video to various social media formats. • Create a call-to-action button at the beginning or in-between the video; this can be a simple subscription invitation. • Video testimony is an excellent form of video marketing that influences and builds a better relationship with your customers. Social media trends for FinTech Social media platforms are no longer considered a place where people connect and communicate in real-time. FinTech can be a challenging market to promote on social media. Social media cannot be a one-size fit for all, but it has amazing advantages over traditional marketing channels. Be a thought leader FinTech marketing is social media marketing. By domain experts in banking, finance, and insurance. It is a platform handled by individuals who are market leaders, contributors, or influencers. Identify the most effective platform for your niche & promote your content on it Identify your audience and promote your content on the most effective and relevant platform to reach your niche audience. Rather than being all over the place, you can choose to stay on one relevant platform to promote your business. Get influencers to influence Getting market influencers to your site can be a great way to increase on-page engagement. Promoting guest articles or interviews by market leaders to share their knowledge and experience in the FinTech or FinServ market. Other useful ways to get influencers to your page include promoting a product/service, sponsored review, social media mention, running a contest on influencers page, getting influencer quotes on brand, creating a joint event, and promoting influencer content on your page. Interact with your customers/end-users Ensure that no comments or queries are unanswered or unattended. There are higher chances of them being your potential customers. Host events (online & offline) Hosting events both online and offline is a great way to reach your target audience. Events can be of different types – educational, promotional, announcement, launches, etc. Hosting such an event is an excellent idea to interact with your target audience. Ensure that you are listening/reading their comments to give them appropriate feedback. Also, apply their valuable suggestions whenever possible. Collect data to channelize FinTech demand generation campaigns In this data-driven world, it's easy to collect information about your customers. Effective FinTech demand generation starts with data. Make utmost use of the data and insights you gain from your research. CRM and analytics platform, carry out a detailed analysis into your users to better understand your audience's needs, build a FinTech lead generation campaign, and optimize your content, landing pages, CTAs, emailers, etc. High-performing websites and effective FinTech lead generation strategies focus on addressing and solving user needs. These insights will also help you get the most ROI from your PPC campaign and paid activities on social media platforms. Final Thoughts Applying these strategies for demand generation will help you attain the desired business growth. These days, the FinTech market has overcome common challenges such as varying regulatory and compliance laws, trust issues, cyberthreats, lack of support from government bodies, industry-related complexities, etc. Lag in digital banking experience Uneven digital transformation globally in the banking industry is the key reason for the lag in the e-banking experience. A new focus on customer experience During this time of digitalization, focusing on customer experience is the best practice. Gaining customers' trust and loyalty is the most important factor that the FinTech market is looking forward to. Shift from digital to mobile-first The ever-increasing number of smartphone and internet users is among the top reasons why many markets shift from digital to mobile-first. Invest in new technologies FinTech brands need to develop new technologies and come up with new and innovative ideas to promote their products online and get the target audience to drive demand. Investment in fintech companies FAQs Q1. What are demand generation activities for FinTech? A1. As mentioned in the above blogs applying following demand generation activities for FinTech market: • Go mobile with your marketing initiatives • Create valuable content • Social media trends for FinTech • Host events (online & offline) • Collect data to channelize FinTech demand generation campaigns Q2. How do you create a demand generation plan for FinTech company? A2. Demand generation can be defined as a general practice to create need or interest in your product or service and converting passive audience into qualified leads. To begin with, you need to have clarity about your customer base and potential audience to define your potential buyer persona. Once you have your defined audience; make goals and create your funnel such as create an awareness content plan, lead generating content plan and conversion content plan. Set up the tools or online platforms where you are planning to promote this content. Invest in paid promotional activities and lastly measure your success. Q3. Why is demand generation important in FinTech? A3. Demand generation is a data-driven marketing strategy that is designed to nurture future goals. The most important factor of applying demand generation strategy is it helps in generating more revenue. { "@context": "https://schema.org", "@type": "FAQPage", "mainEntity": [{ "@type": "Question", "name": "What are demand generation activities for FinTech?", "acceptedAnswer": { "@type": "Answer", "text": "As mentioned in the above blogs applying following demand generation activities for FinTech market: Go mobile with your marketing initiatives Create valuable content Social media trends for FinTech Host events (online & offline) Collect data to channelize FinTech demand generation campaigns " } },{ "@type": "Question", "name": "How do you create a demand generation plan for FinTech company?", "acceptedAnswer": { "@type": "Answer", "text": "Demand generation can be defined as a general practice to create need or interest in your product or service and converting passive audience into qualified leads. To begin with, you need to have clarity about your customer base and potential audience to define your potential buyer persona. Once you have your defined audience; make goals and create your funnel such as create an awareness content plan, lead generating content plan and conversion content plan. Set up the tools or online platforms where you are planning to promote this content. Invest in paid promotional activities and lastly measure your success." } },{ "@type": "Question", "name": "Why is demand generation important in FinTech?", "acceptedAnswer": { "@type": "Answer", "text": "Demand generation is a data-driven marketing strategy that is designed to nurture future goals. The most important factor of applying demand generation strategy is it helps in generating more revenue." } }] }

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What's So Special About Embedded B2B Finance?

Article | February 19, 2020

The rise of buy-now-pay-later in the consumer world provides a powerful example of what embedded finance at the point of need can do for brands. Consumer debt ethics aside, B2C buy-now-pay-later providers can proudly point to the fact that implementing a BNPL solution can increase basket sizes for retailers by 20-30%. The concept, although around for years in various forms, has now been delightfully served as an option during the customer’s checkout process and the marketing has been simplified and on point. Even as merchants must pay for the privilege of offering BNPL (keeping it interest free for customers) upwards of 4-6% per transaction, the benefits have been too good to resist. Although let’s face it, regulation aside (there are significant hoops to become licenced in B2C finance), underwriting to consumers is easier than extending credit to businesses thanks in part for the need to understand factors such as business servicing capacity, shareholder control, bespoke pricing, industry risk and not to mention the exposure risks associated to loaning out more significant totals. Therefore B2B lending speed and embedded innovation naturally lags behind B2C. That said, there have been remarkable steps forward over the last two years as more and more millennials and digital natives take over business buying decisions. Existing B2B finance models For many B2B suppliers or merchants, a referral programme to a business finance provider is nothing new. The benefits can be obvious, especially as the alternative is to embark in to the dangers of offering trade terms and all the cashflow and collection troubles that come with it. By introducing business finance, suppliers can get paid upfront and those pesky risks evaporate. When used effectively in a negotiation, financing offers can also allow suppliers to remove expected buyer discounts. Total order values and loyalty increase (as in the consumer world) and accessible finance even helps a buyer’s businesses become more successful — resulting in increased volumes of purchasing. Still, referral programmes of this nature have their problems. Even with same day B2B funding available, finance applications can hold up the buying process. This means suppliers who are keen to leverage the buyers peak interest, antagonising don’t close sales as quickly as they could and run the risk of the of the application declining or extra customer frustration and fatigue. While the benefits for introducing finance in to the sales process still outweigh the negatives, more improvement in the experience can be achieved. Enter Fintech-as-a-Service. Embedded pre-approvals Imagine a situation as a B2B supplier or merchant where you can provide a pre-approved finance offer straight to eligible businesses through your own CRM. This level of proactivity provides you with a powerful tool in drawing in loaded sale opportunities from customers who are primed and ready to transact. The advantage over your competition is significant as your customers already know they can painlessly purchase from you once they’re ready for more stock. A new revenue stream also opens for your business as your FaaS provider hands you commission for each loan a buyer takes. This example highlights the power of pre-approving customers in a proactive capacity. For this level of FaaS to work a customer permission gate is required, either as part of a customer onboarding/sign-up process or through invitation. With a white-labelled or co-branded experience, buyers can securely connect via open banking through a third party (FaaS provider) and be reassured that no visibility of this data given to their supplier. Other business data sources (e.g. payment or accounting software) can also be connected at this point. Through providing these connections through the supplier or merchants portal, buyers can sit back with the knowledge that they will be notified if and when they qualify to purchase goods or services on finance. Once pre-approved, sellers can push a message to their buyer from their CRM system along with any sales pitch or offer they like. Convincing buyers to give this connection permission in the first place is a challenge that clever marketers and UX specialists will need to overcome. Embedded at the point of need Again, we only need to take BNPL as an example of an embedded finance solution served beautifully at the point of need. Buyers, motivated at the time to transact, are more likely to have the determination to apply for finance within the same CX process. Unlike traditional loan referral schemes that remain disjointed with long and possess awkward handover points, through FaaS, an embedded financial product is especially attractive when done right. It can merely feel as a simple ‘way to pay’ option in the buyer experience. No application forms; no double entry of business data; no waiting. The challenge therefore is to create seamlessness, integrated and quick decisioning. Again, still a relatively tall order for B2B finance especially the higher the loan total is (despite advances in innovation and same day funding). The potential for more instant decisioning will need to be enabled through a) improvements in API sharing and open finance analytics to confident business underwriting and b) buyer adoption on online services and platforms. This later point can already be seen in the growing gulf of funding accessibility between online and manual powered businesses. For example an eCommerce buyer, generating rich volumes of data through online sales and excessive B2B Software-as-a-Service (SaaS) use has the perfect data points that can be integrated in to support lending applications. In contrast, a blue collar business, with a limited online presence and who only drops a shoe box full of receipts to their accountant every 90 days, will find it more difficult to provide the data required for quick decisioning. The new normal Embedded B2B finance is here to stay and serious FaaS providers are emerging. More and more suppliers and merchants will be leveraging the power of this new technology trend to create a more successful, loyal and satisfied buyer. Through proactive pre-approvals, B2B sales teams can be armed with more empowered conversations and unique advantages over the competition. Alternative business lenders operating as an embedded finance FaaS will also benefit by leveraging the scale of the B2B supplier and merchant channel, accessing more businesses through wider mass distribution. Soon, simply plugging in an embedded finance solution in to your existing CRM system will become a painless experience. B2B lending products of the future, through speed of underwriting and integrated data points, will be commonplace as an attractive option during the sales process.a

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Advancing our approach to digital currency

Article | February 19, 2020

As a global payment’s technology company, Visa is focused on delivering the greatest value to people, businesses and economies everywhere, regardless of currency, channel or form factor. We’re reshaping how money moves across the globe, and that means pursuing a broad array of technologies and partnerships. In that regard, digital currencies offer an exciting avenue for us to continue doing what we do best: expanding our network-of-networks to support new forms of commerce.

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Spotlight

Capital Factory

Capital Factory is the center of gravity for entrepreneurs in Texas, the number one startup state in the U.S. Last year more than 100,000 entrepreneurs, programmers and designers gathered day and night, in-person and online for meetups, classes and coworking. We meet the best entrepreneurs in Texas and introduce them to their first investors, employees, mentors and customers. According to Pitchbook, Capital Factory has been the most active investor in Texas since 2013.

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