Want to invest like Warren Buffett? Here are the ins and outs of buying preferred stock

| May 19, 2019

article image
Billionaire Warren Buffett is a master when it comes to investing. The Berkshire Hathaway CEO is famous for buying and holding stock — and not giving in to the volatility of the market. He’s also well-known for taking big stakes in companies, such as the $900 million worth of shares he has in Amazon.
His latest play: a $10 billion investment to back Occidental Petroleum’s bid for Anadarko Petroleum. Berkshire Hathaway will make the investment by purchasing 100,000 shares of preferred stock, which pays out an 8% annual dividend.

Spotlight

Automotive Finance Corporation

Since 1987, AFC has been a trusted provider of inventory financing solutions for independent vehicle dealers. Whether in person, online or on the go, AFC offers their customers the flexibility to do business the way they want. We understand the needs of independent vehicle dealers and the local markets they serve. It’s because our 500+ industry veterans live and work in your neighborhood.

OTHER ARTICLES

How Data Aggregators Are Using Blockchain To Empower Fintech Players

Article | March 1, 2020

People know their banks and their favorite fintech applications. However, consumers are generally not aware of data aggregators like Plaid and Finicity, which collect consumer data from banks, crunch it and feed it to fintech applications. Blockchain technology can play a key role in helping data aggregators manage consumer financial data while complying with regulations and empowering consumers.

Read More

Could Google Acquire Tesla For $250 Billion?

Article | February 10, 2020

In the following analysis, we take a look at why Tesla (NASDAQ:TSLA) could be an attractive acquisition target for Google (NASDAQ:GOOG). We break down our analysis into three parts: what Tesla would stand to gain, what Google would stand to gain, and a scenario where Tesla’s value could rise to $1.5 trillion aided by a deal with Google.

Read More
FINTECH

Benefits Of Outsourcing Software Development To The Fintech Industry

Article | March 17, 2021

Introduction In the ongoing technological era, the outsourcing software development company transports their valuable resources to their core business model and helps businesses to save a lot of time and money. To survive the digital era for financial institutions helps to drive efficiency in Fintech companies. Moreover, software development outsourcing companies offer solutions that enable financial institutions to manage bulk data, tech products, and much more to build an efficient environment with their tech services. The financial service industries are becoming a leader in software development and corporate new strategies for fintech businesses. Many companies are planning to use this working model that is specialized in all processes and seek more agility and quality. Outsourcing software development to the fintech industry can bring many gains to companies, so, in this blog we’re going to look at them closely. According to research, investments in fintech are expected to reach $40 billion in 2021. Additionally, software outsourcing companies makes the development process smooth and improves the quality of data analytics in the industry. Read on to know the benefits of outsourcing software development to the fintech industry and achieve the dedicated digital transformation goals of your business. What Are The Benefits Of Outsourcing Fintech Software Development? Expand your business development The benefits of outsourcing software development services creates a pleasing and commending condition for the fintech industry. It becomes easier to execute actions and plan for the company’s expansion if the management focuses on the core business and internal quality processes. Additionally, the development service provider also helps to sustain the growth of the operation without investing huge investments in infrastructure and technology. Economies of scale If you’re planning to internally develop a software application requires both money and time. And not everyone has an extended IT team with dedicated developers. In such situations, software development outsourcing companies become your partner. The services provided by software outsourcing agencies for fintech development helps businesses to achieve economies of scale and allow them to invest more time on core competencies and perform critical tasks. However, software development outsourcing offers competitive advantages to fintech industries by minimizing costs, better customer service, and maintaining product quality with an affordable budget. Optimize time for dedicated professionals and managers Hiring outsourcing software development services helps businesses a practical and sensible optimization of the time of professionals and managers. If your business is planning to enhance the process of professionalism. To such a degree, fintech industries can directly help to increase the capital and implement strategic tasks and analyze surveys that collaborate to make the right decisions. Thus, outsourcing software development helps to monitor indicators and supervise the possibility of risk to the company. Risk Management/ Critical-path method IT outsourcing software development service providers carry a lot of risks. So to grab the absolute advantages, an organization should build effective risk management plans. Reducing the number of data breaches is one of the most important challenges faced by many fintech industries. This challenge is even more critical when you consider the information type such as salaries, credit card information, social security numbers, and much more which can be used by criminals for gaining profit. Various components and operations help to reduce risks and provide a successful path for outsourcing when you know the challenges and tackle the situation. Increased profits through data analytics Finance is the leading data collection and analytics industry that helps to increase software profit via data analytics. Popular investment banks like Goldman Sachs and JPMorgan have employed specialists who analyze data when issuing trading futures. These fintech software development industries are now identifying customer data and helping them to increase sales and promote customer loyalty. To analyze creditworthiness and provide services to each customer they use credit scores and demographic data that also helps them to build analytics software with the Python programming language. Reduce software server load via cloud computing To implement cloud computing technology, the fintech industry has been reluctant to use web-based storage for bulk data which is vulnerable to hackers. There are few improvements in data security that have led banks to begin integrating modern technology into their core business functionalities. To store sensitive business information related to accounting and communications, many banks are using cloud computing. In recent years, it is reported that the SaaS model is one of the best models that is implemented by fintech software enterprise to store emails, contact lists, and other important information online. Faster product development Hiring software outsourcing companies helps fintech industries to start your projects quicker and complete them before the deadline. The outsourcing enterprise implements traditional hiring processes for software development projects and instructs those dedicated developers to perform critical tasks who can start product development without investing much time on the hiring process. The dedicated team of developers working at any outsourcing companies help to shorten the fintech software development lifecycle and work on multiple projects to quickly resolve common problems and reduce the overall length of the software. The Verdict The fintech enterprise is investing millions of dollars to build custom software according to their business requirement to survive in the new data-driven marketplace. Leveraging a fintech software development service is much bigger than just launching a system that enables the creation of innovative fintech solutions in the future. Many of these companies are switching to fintech software development that provide a dedicated development team to perform critical and complex tasks of any software and reach their goal without distracting from their core missions.

Read More

Banking-as-a-Service (BaaS) Empowers Any Brand to Offer Financial Services

Article | May 14, 2021

Digital banking is not new – major banks began to offer internet banking services in the mid-1990s. However, the traditional banking industry is facing significant pressure from rapidly shifting consumer expectations, changing regulations and increasing competition from digital-native disruptors. Younger Gen Z customers are more apt to use alternative transaction methods such as mobile wallets or P2P payments (e.g., PayPal or the Dutch payment app Tikkie), and businesses are beginning to favor real-time digital payments to improve efficiency, reduce cost and better manage their cash flow. Moreover the ongoing global health crisis is accelerating the movement toward real-time contactless digital payments. Fifty-six countries are now live with real-time payments, and six countries more than doubled their volume of real-time payments in the past year. [i] Due to a joint implementation of the major banks led by the Dutch Payments Association (Betaalvereniging Nederland), the Netherlands is a European leader in terms of the adoption of real-time payments. In the midst of this fast-changing landscape, new business models are arising as digital-natives, FinTechs and incumbent banks partner to offer new banking and payment services in the cloud. One example is Dutch Cobase – a subsidiary of ING Group that bundles business accounts – which recently signed a cooperation agreement with the Nordic bank Nordea and the French Crédit Agricole. Amsterdam-based banking platform Five Degrees supplies its technology to banks such as ABN Amro, Van Lanschot and Knab, among others. Collaboration like this is spurring further innovation as these digital ecosystems expand, attracting new participants. But successfully delivering these new digital services requires the direct and secure, low-latency, reliable exchange of data between partners that interconnection can provide. BaaS needs FinTechs AND banks FinTechs born in the cloud have the IT infrastructure, skills and agility to deliver digital banking and payment services on-demand. They can also offer these BaaS capabilities to any brand who wants to embed financial services in their customer experience. Sometimes referred to as “embedded finance,” BaaS enables businesses to create new products and services along the customer journey as the diagram below illustrates. However, FinTechs typically lack the assets and regulatory license to fulfill financial transactions, and that’s where banks come in. To ensure that deposits and money transfers stay safe, banks are heavily regulated and often insured up to a certain dollar amount for each depositor. This combined with a longer history with customers means that banks have an advantage when it comes to perceptions of how safe and secure a financial transaction will be. As a result, there are a few collaboration paths that FinTechs and banks generally pursue to bring BaaS services to the market: The FinTech buys a bank that already has a license such as Jiko purchasing Mid Central National Bank in the U.S. or Raisin GmbH buying MHG-Bank AG in Germany. The FinTech partners with a bank to borrow their license such as Chime partnering with Stride Bank, N.A. and The Bancorp Bank. The FinTech acquires its own license (a lengthy process that could take up to three years) such as Railsbank in the U.K. or Varo Money in the U.S. The bank partners with a FinTech to launch BaaS services such as Deutsche Bank partnering with Traxpay to integrate supply chain financing technologies and solutions within its own offerings. Regulations are shaping the partnering model The regulatory environment may also impact the partnering model. For example, open banking laws in the European Union and the U.K. require banks to open APIs to third-party developers, making it easier for FinTechs to gain access to bank data. Regulations like these are helping to reduce uncertainty for startups and accelerate innovation in the European banking system. Challenger banks such as U.K.-based Revolut have also benefitted from special licenses that allow them to directly accept deposits, process payments or lend. In the U.S., the Durbin Amendment is accelerating partnerships between small-medium banks and FinTechs in a different way. The Amendment, which has been in effect since 2011, aimed to lower prices for consumers by reducing the fees that retail stores pay to banks when customers use debit cards. In reality, banks just responded by increasing the fees that consumers pay to make up the lost revenue. However, the Durbin Amendment exempts financial institutions with less than $10 billion, making them ideal partnering candidates for FinTechs. How BaaS actually works A hybrid digital architecture for BaaS with a mix of on-premises, colocation and public/private cloud elements. In this example, the bank is the license holder partnering with the FinTech BaaS provider to deliver embedded financial services to a Brand (such as a retailer or transportation business). The bank has also partnered with other FinTechs for real-time and cross-border payments, although it handles any card transactions in-house. Interconnection will be critical for ensuring secure, low latency data flows between the partners and digital infrastructure across the regions where the BaaS is offered. Partnerships like these are steadily growing into ecosystems of digital exchange around financial services that include clouds, networks, banks, FinTechs, payment rails, fraud detection and other service providers. By placing their digital infrastructure close to these ecosystems, leveraging an interconnection approach, banks and FinTechs alike can maximize their competitive advantage. Interconnection provides a more scalable, reliable, secure approach to moving data between members of the value chain than the public internet. With an interconnection strategy, banks and FinTechs can deploy a digital core, extend across edge locations and enhance their capabilities through digital exchange to create new BaaS markets for any brand.

Read More

Spotlight

Automotive Finance Corporation

Since 1987, AFC has been a trusted provider of inventory financing solutions for independent vehicle dealers. Whether in person, online or on the go, AFC offers their customers the flexibility to do business the way they want. We understand the needs of independent vehicle dealers and the local markets they serve. It’s because our 500+ industry veterans live and work in your neighborhood.

Events

FINNOSUMMIT

Conference

LEND360

Conference

FINNOSUMMIT

Conference

LEND360

Conference