What to consider before applying for working capital

| October 21, 2016

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In addition, your business may require funds for equipment updates, expansion costs, restocking inventory, among other necessary investments. In order to do this, you could apply for small business working capital from a lender. This is a responsible and actionable way to benefit your small business. Although additional financing could help your business grow, you’ll need to consider a few things before applying. You’ll want to make sure that the amount and term are the right fit for your business, that you have little existing debt and that the working capital product you’re receiving suits your business’s industry. Ready to apply for small business working capital? Answer the following questions:

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Sinhaputhra Finance PLC

Sinhaputhra Finance PLC commenced business in 1979. Its main lines of business at commencement were Hire Purchase Finance and Deposit Mobilization. The Company grew over the years and today it carries a broad-based business portfolio. Mission To be the most secure and stable Finance Company in the sphere of our influences.

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How to Boost Digital Banking Amid Coronavirus

Article | April 4, 2020

Banks have an Essential Role to Play as Systemic Stabilizers. COVID 19 has created disruptive economic fallout within human society across all religions/races/geographies/countries/continents. The path ahead is hence a dangerous one, driven by epidemiological uncertainty. While this situation is occurring for the first time in human history, this has also been an eye-opener to have a more comprehensive look at the way we operate. The footfalls of branch banking have decreased to a large extent, and banks have urged customers to use digital channels. Table of Contents • COVID 19- An Accelerant to Digital Transformation • How to Increase Digital Banking Adoption - Start with a comprehensive plan - Keep employees morale up to get back on solid ground - Leverage digital and traditional channels - Enable Seamless Customer Experience • Conclusion COVID 19- An Accelerant to Digital Transformation The coronavirus (COVID-19) outbreak is indirectly promoting digital transformation, as many service providers, including banks, have significantly decreased or even closed their offline services, asking their customers to adopt the digital banking for any assistance. This trend is resulting in speeding up digital transformation. But, the question here is, are customers ready for this drastic change? Yes, slowly yet firmly, Banks are witnessing customers picking up services that have distinguished digital capabilities. The mechanics of customer interaction has quickly shifted from physical handshakes to virtual communication over personal & extensive digital channels. Learn more: https://capital.report/blogs/6-digital-banking-best-practices-during-the-covid-19-outbreak/8287 Consultant McKinsey & Co, in an article titled Leadership in the time of coronavirus: COVID-19 response and implications for the banks, reports that Banks have already taken a series of actions in reaction to the spread of COVID-19. Common steps we’ve seen include establishing a central task force, curtailing travel, suspending large-scale gatherings, segregating teams, making arrangements for teleworking, and refreshing external-vendor-interaction policies. It also highlights some of the fundamental changes banking organizations are going to need to make in the way they do business. Workplace dynamics and talent management, already evolving in a digitizing world, maybe durably changed after an extended period of remote working,” it says. “Likewise, customer routines and expectations may also shift further in meaningful proportions, both in terms of digital adaptation and the expectation for proactive communication and care. How to Increase Digital Banking Adoption Digital is not a destination but it's a journey with more and more innovations and discoveries happening across multiple industries. But with COVID 19, it is a forced change for human society to adapt to a digital and contactless mechanism for business transactions between individuals or companies across the border (B2B, B2C, B2G, G2G, etc). The countries which are adopting this methodology are more likely to succeed in the new digital paradigm post-Covid 19. Below are some simple steps you can use to increase customer engagement with digital banking: Start with a comprehensive plan To increase awareness of your digital banking platform, it is always essential, to begin with, a first cut action plan. In the current crisis, there are immediate actions banks can take to help retail and small business customers, support the use of digital channels so that customers can bank from home. In the United States, many banks struggle to increase digital adoption among their customers; for example, nearly half of banking customers either never use their mobile app or do so infrequently. According to McKinsey& Company, In the United States, the most satisfied customers use digital multiple times per week, the second-most satisfied customers do not use digital at all. The least satisfied banking customers are those who use digital tools infrequently, less than once per month. This is because customers go through a learning curve as they adopt digital tools, and most banks under-support their customers in the adoption journey. In the current environment, banks should redouble their efforts to smooth customers’ transition to digital. Here’s how: • Easy-to-find and clear communication • segment-specific campaigns • remote coaching and advice, • And unified experiences across each journey, such as written and video explanations for how to accomplish specific digital tasks, along with ways to try them out. Banking services that involve branch interaction, digital tools can still play an important role by providing information on adjusted hours, essential services, reduced staff numbers, heightened safety precautions, social-distancing measures, and digitally-enabled queuing. Keep employees morale up to get back on solid ground One of the first things that can go for a toss in such challenging times is the morale of employees. It is natural for employees to feel frustrated. The uncertainty of the company's future, the fear of recession, and uncertainty around jobs can damage motivation, productivity, and can create a lot of fear among employees. This entails bank managers to set precise directions for remote teams that are pursuing common goals. Bank managers should also take this opportunity to delegate and empower their employees for decision making. Both intrinsic and extrinsic motivation through rewards, clear spans of control, and meaningful appreciation can go a long way in supporting employee morale. A vital portion of the employees is working from home facing operational challenges, such as internet-bandwidth issues, network connectivity, technology glitches, and childcare priorities. Following practices could help these banks perform a more effective distributed-work environment: According to McKinsey &Company, following practices could help these banks perform a more effective distributed-work environment: • Enable technology setup and infrastructure for remote work. • Supporting remote-work technology and infrastructure • Assisting employees with home-office setup • Ensuring adequate VPN bandwidth • Providing remote application access • Adopting a suite of digital tools that facilitate effective communication, and decision making, such as videoconferencing, file sharing, real-time communication, coediting, and task management, and • Ensuring that agents have the necessary tools and resources to handle calls from home while maintaining customer-data-confidentiality standards. With all these features, it is also critical to ensure that agents are well-equipped with the necessary tools and resources to handle calls from home while maintaining customer-data-confidentiality standards. Leverage digital and traditional channels The more frequently a person sees a message, and in more places, the more likely they are to engage and take action. Banks need to maximize awareness by promoting their message across channels. Promote it in their branch and online, on ATM screens and in the call center. Banks can also find ways to cross-promote digital banking. For example, during the new account opening process, it should encourage consumers to enroll in online banking. Or, if a bank or credit union is doing a credit card promotion, they can use it as an opportunity to cross-promote its mobile app. Enable Seamless Customer Experience For banks, spending on customer experience was essential before the current crisis, both from a “good business” perspective and a “good bank” perspective. Now, these aspects are even more relevant. It is highly important for banks to make their genuine concern for their customers clear and to make customer interactions with the bank as easy as possible. COVID-19 has brought customers already under health and financial stress. They will need ready access to bank products and services. It is now more important, then, to reach customers through digital channels, stay connected through innovative communication channels, meet the needs of vulnerable populations, and stabilize critical infrastructure. • Banks should encourage more customers to use remote channels and digital products whenever possible. • Enhancing current digital offerings, identifying key functionalities, that can be improved quickly • Speeding up the procedure to increase limits on online transactions and simplifying password reset. • Keeping clients involved via SMS, mobile apps, and digital media • Minimize disagreeable surprises to customers (such as potential branch lockdowns) • Encourage fraud-prevention measures, clarify the availability of solutions on digital channels, and • Define preventive measures to ensure the health and safety of clients and employees in branches. According to McKinsey & Company, some financial institutions will need to address such technology gaps in order to offer a seamless digital customer experience. This will require planning ahead by scaling infrastructure capacity and network bandwidth, stress testing and scenario planning, managing near-term patches, and identifying urgent weaknesses in architecture. Learn more: https://capital.report/blogs/9-best-fintech-apps-to-use-while-at-home-during-the-coronavirus-lockdown/8273 All in All Coronavirus difficulties provide an opportunity for new businesses to thrive based on a new digital reality – completely digital and contactless. Digitalization has found a new meaning and it is going to reach newer areas. The world is thinking about implementing ways to lessen the disruption caused to humanity. This is the perfect time to focus on digital transformation by realizing the necessities accelerating it.

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Why the Future of Open Banking Belongs to Platforms

Article | April 4, 2020

The platform economy is revolutionising the $50bn global deposits business. By separating the product provider and financial point of sale, banks can now choose whether they want to collect deposits for financing or offer deposits as a product, without one depending on the other. While the deposits business has not always been perceived as one of the most innovative areas of banking, it is now leading the charge towards a better connected and more functional industry. This is bringing massive benefits to customers and institutions alike.

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Investor Insight: Digital Marketing Trends in the Banking Service Industry

Article | April 4, 2020

With the growth of social media and a slew of technological changes, banking has changed the way it functions. Just as online shopping and e-commerce are boosting sales, similarly social media, blogs and the technology for sharing videos are also creating buzz about specific brands and products. Businesses need to adapt and keep up with the changing trends in digital marketing. Digital marketing trends in the banking industry is becoming increasingly important Everybody's digital today. Virtually any bank will have a digital presence from social media to PPC ads across Google and Bing. Most banks believe that their digital marketing spending must be increased and efforts must be across every digital platform to make their advertising more efficient. The number of digital advertising and marketing companies now accounts for more than 50% of their marketing expenditure, compared to 14% of 2017. The similar banking marketing trend has occurred in mobile marketing, which spends less than 40% of its budget but is increasing. Although the importance of digital marketing trends in the banking business demonstrates increased competition, it also makes it harder to distinguish. This means that banks must take uniquely different techniques, showcasing consumers and success stories, bringing value to market offering, and making the most of a highly competitive digital world utilizing non-traditional awareness campaigns instead of normal publicity campaigns. Transition from paid to owned media Paying or buying media is called paid media where investment is made through search, showing ad networks, or in the form of affiliate marketing where one can pay for visits, audience reach or conversions. The big share of paid media spent is still crucial to conventional off-line media such as printing, TV, and direct mail. Owned media is the brand's media. This includes online company websites, blogs, and mobile apps on Facebook, LinkedIn or Twitter. Brochures or retail outlets may feature offline-owned media. While neither is new, digital marketers are clearly warming up banks' options for both owned and paid media. Financial institutions may use these sorts of media to organize their media activities and use the media mix according to their marketing plan and budget. Marketing to Gen X and Y As millennials continue to age into their 30s and 40s, banks must adapt to the needs of this increasingly powerful consumer market. As more millennials reach credit age, they must have access to affordable banking products from a wide range of sources. Recent research shows that young adults are three times more likely to engage in a high-cost activity like signing up for bank loans and credit cards than their elders were at the same age. In the last five years, the overall number of bank account applications has increased by 165% -- faster than any other age group, according to a report from ‘The Financial Conduct Authority (FCA).’ As the baby boom generation draws closer to retirement, banks have to figure out how to serve this growing generation of consumers. Marketing to millennials is no longer exclusively about offering something free or cheap -- think free travel or goods in exchange for checking out their accounts. Instead, examine how you can develop engagement with millennials as part of your overall banking experience and marketing mix. This includes pairing social media presence with mobile apps that allow millennials to check out different accounts or receive personalized services from banks. Consider a branded experience Fintech is a fast-paced field that allows users to interact with financial providers through apps and websites. The FinTech industry is growing rapidly, with a global reach and diverse competitive landscape. The FinTech culture is evolving rapidly regarding the customer base, service level, and governance factors. Digital transformation affects how organizations deliver services, deliver value and target their campaigns toward potential or current FinTech customers. Leveraging on the FinTech culture makes it possible for organizations to re-imagine their approach to customer service in a way that optimizes both results and cost-efficiency. There’s been an explosion in the world of FinTech. And not just in financial services but also software for everything from e-commerce to real estate. There has been a real shift in how people look at financial products. People want to feel comfortable investing their hard-earned cash in FinTech products -- including cryptocurrencies. It seems like everyone has an account at a financial services company. And they want access to new types of financial products that give them a branded experience. These services are designed to make it easier for ordinary people to get money from the banks, but not so easy that they miss out on exciting opportunities. Invest in personalized ad campaigns Personalization is the big concept behind any digital marketing campaign. It’s about figuring out which audience matches your interests so you can deliver the right product or service at the right time. In other words, personalization is about understanding your customer and discovering what makes them tick. How w0uld you know which customers will respond well to your marketing efforts is simply by understanding their specific needs and then tailoring your message to fulfil those needs. There is a growing shift from basic data science to more sophisticated personalization. Data science is an incredibly powerful way to understand your customer’s preferences, psychographic traits and other data points. Applied in the right way, it can provide a strong push toward providing more relevant content, special offers and better customer service. The challenge is applying that knowledge in a way that totally works for your bank. Integrate Digital Marketing Search Optimisation for banks The difficulty in creating effective digital marketing search strategies lies in the fact that customer expectations have never been higher. With e-commerce on the rise, customers expect to find what they are looking for quickly and easily. As a result, SEO strategies that are once suitable for traditional search engine optimization (SEO) are now impacting organic search results. The problem is that it can be difficult to determine which approach will deliver the best results for your business through digital marketing search engine optimization (SEO). Banks are beginning to pay more attention to digital marketing. They understand that by providing their customers with easy and convenient access to information. They will be more likely to spend money on the products and services said company offers. Digital marketing is not just about getting people to read blog posts or engage with social media pages - if that were the metric, everyone would read everything online! Instead, it’s about getting people who might not otherwise engage with business opportunities, or simply wouldn't know where to start looking for information. Maintain focus on customer experience and commitment The customer experience is the heart and soul of every bank’s digital marketing effort and every bank should strive to provide this level of customer service consistently. The digital marketing trend in the banking industry has taken to transparency and customer-focused messages. Many banks are beginning to understand how marketing messages can best stand on their own feet. With the ever-changing digital landscape, maintaining focus on customer experience is becoming ever more important. For banks and their customers, this means developing a continuous and interactive digital experience that allows them to stay engaged with their valued customers. In addition to branding and marketing campaigns designed to continue growing customer confidence, banks should also continue developing relationships with their fellow business partners through digital tools and social networking. The Take-Away There’s a numbers game attached to online marketing: The more you know about your audience, the better you can tailor your approach and demonstrate ROI. This is why marketers closely watch industry trends – it helps them to understand their customers better. In fact, according to a recent study by AdRoll, half of the businesses that use customer data to personalize their online ad campaigns have seen CTRs increase by 20%. Banks should be doing the same and looking to integrate data into their campaigns this year. Some Frequently Asked Questions What are the latest trends in digital marketing for banks? AI, augmented reality, voice search optimization, programmatic advertising, chatbots, personalization, automated email marketing, video marketing, Instagram reels, shoppable content, influencer marketing, and geofencing are just a few of the most recent digital marketing trends in the banking industry to watch out for. These new additions in the banking industry paves the way for a revolution in how financial institutes market their services. How do banks use digital marketing? Banks use the following types of digital marketing to gain attention: Explainer videos to make complex financial concepts more understandable. Make your website the primary point of contact for your customers. Set up a YouTube channel to provide information-dense content. Marketing through email Marketing via mobile device How valuable is digital marketing? Digital marketing not only helps in saving money by bringing in customers at a cheaper cost than conventional marketing techniques, but it also assists you in increasing your income. The value of digital marketing can now be evaluated more precisely and the influence it has on your business may have a significant positive impact. How do you advertise banking services? Make use of these five tried-and-true bank marketing strategies to raise awareness, attract customers, and do more: Content marketing: Content marketing is a kind of marketing that uses written content to promote a company's products and services. Develop textual, graphic, and interactive components for your website. Search engine optimization (SEO) Pay-per-click (PPC) advertising Social media marketing Online Reputation management { "@context": "https://schema.org", "@type": "FAQPage", "mainEntity": [{ "@type": "Question", "name": "What are the latest trends in digital marketing for banks?", "acceptedAnswer": { "@type": "Answer", "text": "AI, augmented reality, voice search optimization, programmatic advertising, chatbots, personalization, automated email marketing, video marketing, Instagram reels, shoppable content, influencer marketing, and geofencing are just a few of the most recent digital marketing trends in the banking industry to watch out for. These new additions in the banking industry pave the way for a revolution in how financial institutes market their services." } },{ "@type": "Question", "name": "How do banks use digital marketing?", "acceptedAnswer": { "@type": "Answer", "text": "Banks use the following types of digital marketing to gain attention: Explainer videos to make complex financial concepts more understandable. Make your website the primary point of contact for your customers. Set up a YouTube channel to provide information-dense content. Marketing through email Marketing via mobile device" } },{ "@type": "Question", "name": "How valuable is digital marketing?", "acceptedAnswer": { "@type": "Answer", "text": "Digital marketing not only helps in saving money by bringing in customers at a cheaper cost than conventional marketing techniques, but it also assists you in increasing your income. The value of digital marketing can now be evaluated more precisely and the influence it has on your business may have a significant positive impact." } },{ "@type": "Question", "name": "How do you advertise banking services?", "acceptedAnswer": { "@type": "Answer", "text": "Make use of these five tried-and-true bank marketing strategies to raise awareness, attract customers, and do more: Content marketing: Content marketing is a kind of marketing that uses written content to promote a company's products and services. Develop textual, graphic, and interactive components for your website. Search engine optimization (SEO) Pay-per-click (PPC) advertising Social media marketing Online Reputation management" } }] }

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How to Fight Fraud and Financial Crime Using Machine Learning Applications

Article | April 4, 2020

Going far away beyond conventional attack detection, advanced machine learning operations assist organizations to stay one step ahead of financial fraudsters. We hear tons of stories about account takeovers and hacking also. How can financial institutions detect and mitigate these attacks? The world of fraud prevention in banking institutions has always been supported by rules. Bankers and their engineers were uniting rules engines on the banking data system to stop or identify common fraud patterns. For quite a while, this was sufficient. But today we are experiencing a change of society, a digital and technological revolution. Following the primary iPhone, and therefore the later mobile internet explosion, people are interconnected all the time, everywhere and for all quite useful. In this digital age, the digitization of means and behaviors forces corporations to revise their business model. As a result, banking institutions are going massively online and digital-first. Both the bank users and customers have unfolded their behaviors with the brand-new means offered by the digital era. Learn more: https://deck7.io/Women-Leadership-verrency-audrey-blackmon With the shift towards universal digitalization, perpetrators are finding new weak spots in financial digital applications. Ironically, the technology works both ways: it accommodates firms to supply more reliable customer experience and optimize operations and, at an equivalent time, aids cybercriminals in performing numerous sophisticated unlawful schemes. According to the Association of Certified Fraud Examiners (ACFE), 30pc of fraud occurrences happened in small businesses, and 60pc of small-business fraud victims did not retrieve any of their losses. According to Statista, in 2017, the global FDP (fraud detection and prevention) market was calculated to be worth $16.6 billion. According to McKinsey, worldwide losses from card fraud could be close to $44 billion by 2025. Financial crimes do not limit crimes like credit card fraud, tax dodging, and elder abuse. In fact, it includes much broader offenses – such as Identity theft, human trafficking, phishing, pharming, drug trafficking, money laundering, and terrorist financing that can have enduring impacts on society. Fighting financial fraud is difficult because fraudsters frequently change and adapt. The moment you figure out how to identify and prevent one scam, a unique one emerges to take its spot. Identifying, eliminating, and blocking these threats are sensitive points for e-commerce and banking industries. Sincerely, the best technology for combating fraud is one that can evolve and adapt as instantly as the fraudster’s tactics. That’s what makes machine learning (ML) systems ideal to fight fraud and financial crime. The big problem is that companies think they need to establish rules, policies, and procedures to prevent fraud. But today’s criminals are much more sophisticated and are able to circumvent these business rules. Businesses need to take a more dynamic approach that includes business rules as well as machine learning and AI to learn from evolving criminal behavior and deliver a more sophisticated and effective approach to dealing with financial crimes. Andrew Simpson, Chief Operating Officer of CaseWare Analytics. Why use machine learning to combat financial fraud? Machine Learning knocks down the conventional ways of detecting fraud. It’s quicker, works with extensive amounts of data, and doesn’t rely on human resources. When designed optimally, it absorbs, adapts, and uncovers emerging patterns without the over-adaptation resulting in too many false positives. It’s time for ML to conclusively take center stage in assisting firms to recognize and counter fraud as fast as it’s performed. How Machine Learning Helps in Fighting Fraud and Financial Crime? Machine learning can learn normal behavior from training data and recognize abnormal behaviors that indicates money laundering, like, when money is transferred between suspicious geographies, active movement of funds between different accounts, or invoicing number sequences have been falsified. Machine learning is continually learning, and so they can recognize when the pattern of laundering change and adjust rapidly. Analyzing Huge Amounts of Transaction Data One of the most powerful features of machine learning algorithms is that they can analyze huge numbers of transaction data and flag suspicious transactions with highly accurate risk scores in real-time. Its algorithms serve 24/7 and process an immense amount of information with the flip of a switch. This risky analytics method recognizes complex patterns that are challenging for analysts to identify; this means banks and financial organizations are far more operationally proficient while detecting more fraud. The algorithms take various factors into account, including; customer’s location, the device used, and other circumstantial data points to form a detailed picture of every transaction. This strategy improves real-time decisions and protects customers against fraud, all without affecting the user experience. Thanks to extensive technological development, organizations will frequently rely on machine learning algorithms to determine which transactions are suspicious. Learn more: https://www.sas.com/en_in/insights/articles/risk-fraud/strategies-fraud-detection.html#/ Supervised and Unsupervised Learning for Detecting Complex Patterns Machines can be programmed to self-learn in an unsupervised model with ML so that transactions that do not conform to a set pattern are recognized and hence can be actioned upon in right period. Machine Learning automatizes the extraction of aware and unaware patterns from data. Once it identifies those patterns, it can employ what it learns to new and unseen data. The machine learns and modifies as new outcomes and new patterns are introduced to it via a feedback loop. In fraud detection, supervised machine learning algorithms can self-learn from targets within the data. While training a supervised model, it's important to present to it both fraudulent and non-fraudulent records that have been labeled as such. Unsupervised Machine Learning is different. It reveals potentially unusual risks you might not watch for because it works without a target. Instead, it looks for irregularities in the data. Machine Learning in Fraud Detection The fraud detection method employing machine learning starts with gathering and segmenting the data. Alongside this, the machine learning model receives training sets that train it to predict the possibility of fraud. Conclusively, it creates a fraud detection model: Input data- The first step is data input, which differs in Machine learning and humans. Humans strive to comprehend massive amounts of data, such a task is a five-finger play for ML. The more data an ML model eats, the better it can learn and polish its fraud detection abilities. Extract Features- Extracted features defining good customer behavior and deceitful behavior are added. These features normally include the customer’s location, identity, orders, network, and preferred payment method. Based on the complexity of the fraud detection system, the list of examined features can vary. Train Algorithm- Further in this process, a training algorithm is launched. In short, this algorithm is a collection of rules that a machine learning model has to pursue when deciding whether an operation is genuine or fraudulent. The more data a business can supply for a training set, the more reliable the ML model will be. Create Model- After the training is over, an organization receives a fraud detection model acceptable for their business. This model can detect fraud in no time with great accuracy. To be efficient in credit card fraud detection, a machine learning model needs to be continually improved and updated. Eventually, fraudsters will turn up with new bamboozle to game the system unless you keep it updated. Employing advanced fraud protection and detection systems electrified by ML, multiple industries can keep their finances secured. Capgemini alleges their ML fraud detection system can lessen fraud investigation time by 70% while boosting accuracy by 90%. Another ML fraud prevention solution provider, Feedzai, alleges that a well-trained machine learning solution can recognize and prevent 95% of all fraud while reducing the amount of human labor needed during the investigation stage. Reduction of False Positives With the level of complicatedness in today’s financial infrastructures, the term ‘false positive’ has become nearly correlated with the industry’s efforts to fight fraud. One of the banking’s most significant challenges is to minimize the number of false positives being generated, thereby saving time, money, and bypassing needlessly frustrating customers. AI and machine learning play a significant role in this area. Because they are proficient in examining a much more comprehensive set of data points, connections between entities and fraud patterns – including fraud scenarios not yet known to fraud analysts – the predominance of false positives can be extremely reduced. Bringing it all Together Multinationals like Airbnb, Yelp, and Jet.com are already employing AI solutions to get insights from big data and counter issues such as fake accounts, account takeover, payment fraud, and promotion abuse. Machine learning entertains all the messy work of data analysis and predictive analytics and empowers companies to grow and develop secure from financial fraud and crime. As mentioned, machine learning can be very convenient when it comes to fighting cybercrimes. ML prevents critical attacks on users’ and companies’ finances. It’s a quick, up-to-date, and cost-effective method to shield customers and the company’s data.

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Spotlight

Sinhaputhra Finance PLC

Sinhaputhra Finance PLC commenced business in 1979. Its main lines of business at commencement were Hire Purchase Finance and Deposit Mobilization. The Company grew over the years and today it carries a broad-based business portfolio. Mission To be the most secure and stable Finance Company in the sphere of our influences.

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