Working Capital Loan: Definition & Eligibility Criteria

| September 9, 2019

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Want to keep the company’s everyday financial operations under control? Opt for a working capital loan now and get financial problems solved with ease. Being a business owner, it is extremely important for you to finance the day to day company’s operations to keep things smooth and under control. This is where the working capital loan comes handy. With the help of this, business owners can easily take this short-term loan, raise the capital, and repay the same once they get paid.

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Accounting Management Solutions LLC.

Accounting Management Solutions (AMS), a CliftonLarsonAllen LLP Division, headquartered in Waltham, MA, is a leading supplier of outsourced accounting and financial management services for the Northeast. AMS supports public, private and nonprofit organizations of all sizes with experienced industry-specific consultants. As a long-term partner or a short-term solution, AMS provides senior level support including chief financial officers, vice presidents of finance, controllers, directors of finance and senior accountants for part-time, interim, or project-based assignments. Exclusive providers of the AMS Rapid Diagnostic, a unique service designed to assess an organization’s financial health and provide a road map to best practices, other engagements include audit preparation, broad-based financial assessments, managing the entire finance function, fulfilling specific technical or event-driven needs and much more...

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Buy Now Pay Later - a Credit in Disguise?

Article | August 18, 2021

BNPL (short for "Buy Now Pay Later") is a hot topic in the Credit space. The recent funding round of Klarna (one of the most known BNPL players on the market) of $639 million at a valuation of $45,6 billion makes it Europe’s most valuable startup and shows that investors predict continuing exponential growth for this service. This anticipated growth is coming from an increased negative perception of consumers towards revolving credit lines, like credit cards. As a result consumers look for cheaper and more user-friendly and convenient alternatives. Especially the younger generation of millennials seems to be attracted by this offer, with 15 percent of them already uses BNPL today, i.e. 5 times more than older generations. Combine this with the continuous growth in e-commerce for which this type of credit is ideally suited and you can get a feeling why such an astronomical valuation could be justified. The result is an exploding market of Fintechs offering those promising services, like Klarna, but also Affirm, AfterPay, Cashper, Divido, ratepay, scalapay, Cofidis, LayBuy… Additionally incumbent players like PayPal and AmEx have also started attacking this market. Although many praise this new product for its user experience and convenience and its promise to offer zero-interest rate credits to nearly anyone, many specialists are also highly skeptical about this new trend, as it can push people in unneeded debt for products they don’t even need. But what is BNPL and where is this hype coming from? And how is it different from traditional consumer credit cards or 0% interest consumer installment loans offered already for years by car dealers, electric appliances stores or kitchen/bathroom dealers? In fact BNPL could be considered as the modern, digital equivalent of those consumer installment loans. Its characteristics could be summarized as following: A short-term financing product For relatively small amounts, i.e. maximum 1-2.000 EUR as a total maximum credit amount at a specific BNPL vendor (aggregated over all purchases paid with BNPL) Linked to a purchase of a specific product or service Usually interest-free, i.e. instead the merchant pays a commission to the BNPL provider. Very strongly integrated in the check-out process of the merchant. Till now mainly for online merchants (usually as an additional payment method offered via the webshop’s PSP), although BNPL vendors recently have started to expand also to physical payments. Usually this is done by the BNPL issuing a virtual credit card (which can be limited to a specific store) with which the purchase can be done (with the smartphone emulating a physical credit card), but it can also be done via a QR code (generated by the merchant and scanned by the customer or vice-versa). An excellent user experience, giving a near real-time, frictionless and fully digital origination process of the credit, i.e. in a few seconds the BNPL credit can be opened. Usually consisting of an upfront payment (typically 25% of the overall purchase amount) at the moment of purchase, followed by a predetermined (= fixed schedule) small number(typically 4) of installments at future dates (typically with intervals of 2 weeks, meaning duration of 2 x 4 = 8 weeks) to reimburse the remainder. These reimbursements are usually done automatically by linking a debit or credit card or direct debit to the BNPL provider. This method is called "Slice-it" (i.e. the payment is spread over time), but many BNPL provider also provide the "Pay Later" method, which is also ideal for online purchases, as it allows the user to usually pay 14 days after his purchase. This corresponds with the moment the customer has received the product and has decided not to return it. Using a soft-credit score, which uses other info (like e.g. all details of your current and past purchases) than the traditional credit scoring systems and doesn’t affect your credit score (unless there is a late payment or a failing to pay). This leads also to higher acceptance scores (of around 90%) than traditional credits. The merchant is paid right away and the BNPL provider takes over all the risks, like liabilities due to fraud, chargebacks, defaulting… If you read those characteristics, this product seems great for all involved parties, i.e. Consumers get a cheap (often "free"), user-friendly, disciplined (i.e. a fixed well-defined repayment schedule) and frictionless way of funding a purchase, which they may otherwise not have been able to afford. Merchants can increase their revenues, i.e. multiple studies have showed that people buying via BNPL tend to spend more than if they would be paying with a traditional payment method (i.e. increase of AOV = Average Order Value) and abandon less their shopping carts. Research has also showed that BNPL can act as a Customer Acquisition Channel as a growing number of users considers BNPL (to be available as a payment method) as a key decision criterium to choose one webshop over another. Additionally the apps of BNPL vendors become more and more marketplaces advertising all their partners. Nonetheless BNPL is not all sunshine and rainbows. Several pitfalls can be identified, which could endanger its future growth, i.e. Increased regulation: while many BNPL vendors have slipped through the cracks of severe regulatory supervision (i.e. in many countries BNPL vendors try to be exempt their product from the definition of a credit), the impressive growth of this credit product is about to change this. Regulation will fiercen, as a high percentage of consumers using BNPL already cope with financial difficulties to pay back their installments. One potential improvement could be to demand for more transparency, so that there is an aggregated view of all your pending BNPL payments at different BNPL players. With more and more merchants offering this service, the product will become a commodity, meaning the advantage of being a "Customer Acquisition Channel" will disappear. One might wonder as well if it is desired that every merchant starts offering this payment method. E.g. in certain countries pizza restaurants are already offering to order your pizza and pay with BNPL. If consumers start using too much BNPL, it will become extremely difficult to keep a good financial overview and the advantages of BNPL like user-friendliness and a disciplined repayment schedule might disappear. The operational and support model is not always top yet. As BNPL vendors take over all liabilities, it is unclear who is responsible for the delivery of a product. A few months ago I had myself a particular bad experience with BNPL. On a webshop I selected BNPL as a payment method, but never got any invitation to pay. The webshop didn’t want to send the item as they were not paid yet and they referred me to the BNPL vendor, who in its turn referred me back to the webshop. In the end, given the urgency for receiving the product, I said it could be cancelled, which required again a message to both parties. In the end everything got straightened out, but it was not a pleasant experience for me as a user, nor for the BNPL vendor and the webshop who both had a lot of work without any revenue. A similar issue exists when deciding to return a delivered item and get reimbursed. As a consumer you will return the package to the webshop, but it’s the BNPL vendor who should cancel the BNPL arrangement. Often this requires a lot of hassle for the customer to arrange all this. This shows the complexity of this model. In this kind of partnerships it is extremely important to align on responsibilities (cfr. my blog "Ecosystems - The key to success for all future financial services companies" - https://bankloch.blogspot.com/2020/11/ecosystems-key-to-success-for-all.html). Ideally as a consumer you would like to have only a relation with the webshop (given the strong embedding of BNPL in the checkout process it is difficult to make a clear distinction for users), i.e. the fact that other parties like the PSP and the BNPL provider are also involved in the flow should be hidden away for the consumer. This is far from being the case today. With this product being used more and more, customers might also get a negative perception of this credit, as the zero-cost credit comes with a lot of hidden costs. First of all there are considerable fees and interests in case of missed payments (as much as 30% of the invoice amount), but additionally the BNPL vendor is still paid with a more traditional payment method, like a debit or credit card or direct debit. If there is insufficient funding on the bank accounts linked to those payment methods, customers will still pay costs for failed direct debits, expensive overdraft debt interest rates and/or credit card debt interests (which people tried to avoid in the first place). Additionally BNPL tends to make the origination of a credit so easy, that there is a big risk of putting customers into financial issues for products they didn’t really need in the first place. BNPL usage still negatively impacts the margin of the merchant. Even though BNPL can be considered as a means to attract additional business (revenue), the cost for the merchant is still considerably higher than other payment methods. E.g. VISA and MasterCard are typically situated around 2-3% transaction commission, while BNPL methods are typically situated between 2 and 8% (usually 4-6%). Consumers tend to miss out on rewards or cashbacks earned on purchases (often offered by credit card companies). This means an additional hidden cost for the consumer. BNPL Fintechs are expected to get a lot of competition of incumbent players like incumbent banks and PSPs offering those services themselves. Those players can offer a lot more integrated features (e.g. a full integration in the banking app and an immediate link to the customer’s current account) and can exploit a lot of competitive advantages compared to BNPL Fintechs, e.g. lower cost of capital from deposits, synergies with other products… Although those players have been late adopters of this technology, they are likely to take a serious cut of market share from BNPL Fintechs, once they get the offer setup. Already today, Fintechs, like Amount, have created white-label BNPL products, which can help banks to quickly setup a BNPL product. BNPL Fintechs are already taking action to address those concerns, e.g. BNPL providers offer A lot of features to improve customer’s financial literacy. Although very noble, it still seems a bit of window-dressing to please regulators and public opinion. A shift to also support physical payments, as explained above. The app of BNPL vendors is turned more and more into a marketplace, where specific (products of) merchants (being a customer of the BNPL vendor) are directly offered, meaning the BNPL vendor becomes the direct customer entry point instead of the webshop. BNPL vendors are using more and more their collected data for offering targeted marketing, like personalized recommendations, advertisements, discounts in the form of coupons and cashbacks… This can be an interesting additional source of revenue. Many BNPL vendors are starting to handle the logistics of a transaction. Obviously this allows to ask higher commissions to the merchants, but also allows to provide a better end-to-end support flow. BNPL credit limits are being increased to allow for more BNPL payments for 1 customer, but also to attack merchants with more expensive product offers, like high-end luxury goods. Obviously this change is slippery slope as it can increase the risk of credit deferrals/defaults and also increase negative perception. BNPL vendors are transforming more and more into Challenger banks themselves, offering also more traditional banking products. The apps of BNPL vendors is extended with additional value-added features, like managing spending limits, getting insights into your spending habits, receive personalized budgeting tips, get product recommendations based on your purchase history, initiating refunds… BNPL vendors are starting to increase the customer relation via loyalty programs (e.g. Vibe from Klarna) All this seems the traditional story in Fintech. Fintechs come with very innovative ideas, but often have difficulties to make those products profitable and keep their competitive advantage on the long-term, as incumbent banks develop similar offers after a few years and the Fintechs are automatically becoming more bureaucratic, complex organizations (often forced by regulators) similar to the incumbent banks, which they tried to disrupt in the first place (cfr. my blog "Neobanks should find their niche to improve their profitability" - https://bankloch.blogspot.com/2020/12/neobanks-should-find-their-niche-to.html). Let’s see how many BNPL Fintechs are still around 5 years from now.

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At Dunkin' tapping to pay is the safe and sweet alternative

Article | July 29, 2020

Retailers and restaurants are increasingly offering contactless payments as a safer alternative to cash in the new-normal of COVID-19 while improving the overall customer experience. Tapping to pay in the U.S. has increased 150% year over year from March of last year. More U.S. consumers continue to receive new contactless cards, with more than 80 million Visa contactless cards added in the first six months of 2020 and 300 million expected in market by the end of the year. It’s clear: workers and consumers alike want to minimize personal contact as much as possible.

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On Diversity. Learnings from Bitcoin. A Gift Idea

Article | November 24, 2020

On Diversity 1.Diversity is critical. Human life endures and evolves due to the intertwining of different gene pools. Innovation happens with fresh insightful connections between cultures, expertise and backgrounds. Treating people equally and with respect, regardless of race, religion, gender, sexual identity or age, among other differences, is not just ethically and morally correct, but it leads for better outcomes in society and business. In many parts of the world, including the United States, there has been significant improvement in the life of women, minorities and LGBTQ communities if compared to a decade or two decades ago. However, while much progress has been made, there are still significant challenges and obstacles as the #MeToo and Black Lives Matter movements among others clearly illuminate. While all of us whether as individuals, communities or business continue to strive to ensure equal opportunity and a just society, we should not forget three other critical forms of diversity which may not have movements or focus on them, but are critical to truly build on the efforts and movements underway. These are 1) Diversity of Voices, 2) Diversity of Generations and 3) Diversity of Choices. 1. Diversity of Voices A few months ago I wrote a piece called Diverse Faces are not the same as Diverse Voices. Ensuring a diversity of faces is a necessary but insufficient step. Not only do companies need different faces around the table, but they also need diversity in thinking. We need to ensure that every person in a firm and around the table has a voice. Most importantly, it is critical to have voices that can speak truth to power, question the status quo, call out potential issues and be heard without the risk of being punished. If such voices were listened to, many companies, such as Wells Fargo and possibly Boeing, would not have suffered losses of reputation and market valuation. There were people who knew there were issues, but they either kept quiet or were silenced or ignored. For true diversity it is key that people can call out the turd on the table when everyone else is celebrating what looks like a delicious brownie. For years I have studied how to ensure such voices are nurtured and heard. There is a chapter in my book called “The Turd on the Table” which discusses my findings in detail but in the article noted above I summarize some key findings. 2. Diversity of Generations These days in my multi-faceted second career of author, speaker/teacher and advisor, I journey (virtually rather than physically given the times we live in) more broadly across business, academia, politics, art, and science around the world than every before. In just the arena of Business, I can find myself presenting to the Board of a FTSE 100/Fortune 500 company, advising a small start-up and then speaking about my book and sharing career learnings with either youthful students in a BBA or MBA program or more experienced individuals refreshing their expertise or re-thinking their careers while pursuing an Executive MBA. While I share, teach and advise, I also am constantly learning and have come to believe that while many firms having smartly incorporated women and people of color and people with different forms of expertise on to their decision making councils, they remain relatively homogenous with regard to age. Almost everyone is within the same 16 year generation. Established companies tend to have Board members in their 50’s and 60’s , while start-ups skew to the 20’s and 30’s. Established companies have young folks on what they call Challenger Boards presenting to real boards and Challenger companies have the occasional grey haired expert to serve as an advisor. Why should a Fortune 500 Company not have accomplished individuals who are a generation or two younger on the main board? Why do start-ups believe that older people cannot be mentally or technically agile? Regardless of what you may think of two very accomplished individuals in a Nancy Pelosi in her 70’s and an Alexandra Ocasio Cortez in her 30’s, I believe better decisions are made because of their different generational perspectives. This generational divide is not just in Business but in Education, Arts and every where I look. We should ask why ? 3. Diversity of Opinion and Choice. In the recent election in the United States more people (70 Million) voted for Donald Trump than voted for Barack Obama ( 69.5 million) when he won his first landslide victory in 2008. The only person who garnered more votes is President-Elect Biden with 75 million votes and counting. As someone who is friends and/or works with people who voted for each candidate and who respects and continues to respect and admire many of the voters on each side, I worry when some folks on each side paint the other as a caricature. Not everyone who voted for Donald Trump is an anti-mask, gun toting racist, science hating, selfish capitalist nor is everyone who voted for Joe Biden a tree hugging, de-fund the police, pacifist socialist. In this polarized age weaponized by social media and algorithms of enragement it is very easy to paint things in black or white but that is not what humans are. A person in two moods is often more different than two different people. Rather than demonize we should seek to understand and find points of agreement which are many ( most folks on either side would rather live in the US than in other countries, most would hope to have a better world for their children etc.) If people cannot choose and have their own opinions than most other forms of diversity don’t amount to a hill of beans. People and life are complicated. All we know is that we have opinions and belief and choices. And like humans they are incomplete, imperfect, impermanent. 2. Learnings from Bitcoin Five years ago in a blog post i wrote… Bitcoin and Blockchain are likely to revolutionize money. It is likely to become the currency of the Internet since it addresses the lack of trust in financial institutions, speaks to the need of the unbanked and leverages network technology. It’s in the early innings and too much focus on the roller coasting price. With that being said I would recommend everyone buy a bitcoin (its now about 240 dollars as I write this) and begin to understand it. In the US, Coinbase is an ideal wallet. The book to read on this topic is The Age of Cryptocurrency by Vigna and Casey two Wall Street Journal Financial Journalists. As I write this some five years later, a Bitcoin is trading around 16,000 dollars which is a 6400 percent return, magnitudes better than even if you had put the $250 in Netflix which is the best performing FAANG .( Bitcoin along the way soared to 19,891 dollars in December 2017 before crashing to the 3000’s a few months later but never being below 3000 dollars in the last three years.) I am not a financial advisor and make no recommendations ( I made my recommendation 5 years ago, since 250 dollars was not a big amount of money to risk to understand and follow a technology and eco-system that might become big). I do wish to share two learnings from Bitcoin which everybody may want to keep in mind as they make decisions at work on whom they meet and what they pay attention to … The Future Comes from the Slime and not the Heavens: Like Bitcoin, much that of the future comes from places no one is looking. IBM did not take MS-Dos and Microsoft seriously. Microsoft did not understand what Larry Page and Sergey Brin had created in the PageRank algorithm and Google Search. Bezos turned out to be more than a book seller on the Internet. Again and again, Boards and Leaders pay attention to each other, to the famous, to the powerful and to what dominates the news. David will not be found hanging out with the Goliaths. Even today, I find it amazing how incestious and uniform thinking is in so many “councils of the powerful”. The same words…disruption…personalization…platforms…data… All of us trampling on well worn paths of widespread and obvious thinking. Of course we have to work in an an omni-channel, digital first, platform dominated world with personalized data. Everybody better do so to compete and remain relevant. But then what? This is where the ball is. Where is the ball going ? Pay attention to the non-obvious, the small and weird. Take meetings with folks you would not normally do even though they have no rolodexes or fame. Remember that those behind Red Ropes may be roping themselves in rather than roping others out. Experiment quickly with new companies and technologies instead of meeting after meeting which costs more than testing out the new. Do. Do not diddle. Mindset Shifts: There comes a time when there is a mindset shift. When this happens ( it is has happened with Bitcoin, and recently with Tesla when all the "Gods of Finance” pooh poohed what they did not understand and soon will again with the reality of Climate Change and Gene Therapy), major new industries and opportunities are born and major forces of disruption and wealth creation happen. Build a case for why you may be wrong. Build a case for the opposite of what you think is true. Shift your mind before it is shifted. 3. Looking for a Christmas Gift for your friends, your team or your company? As many of you know, and many have been huge supporters of (Thank you!) a book I authored called “Restoring the Soul of Business: Staying Human in the Age of Data” which was published globally early in the year by HarperCollins. The book which has 12 chapters, each of which can be read in any order, provides tangible advice in four areas. 1) How to think about the future, 2) How to manage and adapt to change so it sucks less, 3) How to lead with soul and 4) How to upgrade your mental operating system. The Economist Magazine said…”During the lockdown your columnist has worked his way through four weighty tomes by managers who argue that companies have a broader purpose than simply making a profit. The books were “Trailblazer” by Marc Benioff, “Green Swans” by John Elkington, “Restoring the Soul of Business” by Rishad Tobaccowala and “Share” by Chris Yates and Linda Jingfang Cai. Perhaps the best of the books is Mr Tobaccowala’s. That is because the author, a senior adviser at Publicis Groupe, an advertising and communications firm, has a clear focus: how to ensure you can hire, then inspire, the right workers in the knowledge economy. “Employees who find work meaningful are highly productive, agile and committed,” he writes, adding that talented workers are in a more powerful bargaining position in the current economy. He also argues that companies can be too obsessed with data, and not enough with employee motivation: “The best businesses find ways to marry the math and the magic.”The book is clearly written and full of sensible and practical suggestions. “ The book has also made some Best Business Books of the Year list including form Strategy and Business which wrote “Restoring the Soul of Business, I kept thinking as I read it, is part Ken Auletta (the New Yorker media critic who, as it happens, authored the foreword), part Deepak Chopra. As detailed and all-business as Tobaccowala is, and as soberly and expertly as he makes his case here, it would be unimaginable to ruminate, at book length no less, on a subject like the importance of humanity without sounding at times like something out of the Up with People program. (One chapter is titled “How to Lead with Soul.”) Aside from its numerous how-to lists, the book is filled with helpful case studies of companies that have mastered the fusion of data-based marketing and business management with human relationships. A smart and worldly man, Tobaccowala has produced a deeply informed book about brand marketing, data science, and humanity that is a remarkably lively read. Name another book about business (or any other subject) that in one breath urges the reader to acknowledge “the turd on the table” in the boardroom and references François Truffaut’s The 400 Blows and Joan Didion in the next.” Read the full review here. You can read more about the book including an essay from me on why you should read the book and different purchase options ( audible, kindle, ebook, book and even CD-ROM) everywhere in the world here….https://rishadtobaccowala.com/book And for those who want to get more than 25 books or e-books reach out to me for both bulk pricing and Concierge handling from HarperCollins. If you want to upgrade and inspire your teams $10 to $20 is a great investment as a Christmas present… Regardless, thank you for the 10 minutes every Sunday or whenever you give to reading this newsletter…

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Investor Insight: Digital Marketing Trends in the Banking Service Industry

Article | August 18, 2021

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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Accounting Management Solutions LLC.

Accounting Management Solutions (AMS), a CliftonLarsonAllen LLP Division, headquartered in Waltham, MA, is a leading supplier of outsourced accounting and financial management services for the Northeast. AMS supports public, private and nonprofit organizations of all sizes with experienced industry-specific consultants. As a long-term partner or a short-term solution, AMS provides senior level support including chief financial officers, vice presidents of finance, controllers, directors of finance and senior accountants for part-time, interim, or project-based assignments. Exclusive providers of the AMS Rapid Diagnostic, a unique service designed to assess an organization’s financial health and provide a road map to best practices, other engagements include audit preparation, broad-based financial assessments, managing the entire finance function, fulfilling specific technical or event-driven needs and much more...

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