With the stress towards financial inclusion by the Indian Government and adoption of online banking and digital payments, a greater need to manage huge data arises which increase revenue and bank’s customers’. Data analytics can manage greater systematic risks. Also, effective engagement with customers is possible with technologies like chatbots. Innovations would attract new customers in a dynamic and competitive environment. Profiling as well as looking at the life cycle of each customer would create opportunities for more avenues of revenue and thereby minimizing risk of defaults. Getting a market overview by means of data analytics would help banks in deciding on their business strategies. Read more at: http://analyticsindiamag.com/data-analytics-expedite-financial-inclusion/

The company’s financial position and the employee’s performance are the two main reasons to fire employees with many other reasons affecting this decision as well. One of the other important reason affecting losses of job is the place of your work and where the company is located. Based on factors affecting a city’s employment conditions, loss of job for current employees vary. The article further lists the cities in order of job risks associated with the tier1 cities. In order of highest to lowest risk Delhi comes first, followed by Bangalore, Hyderabad, Ahmadabad, Mumbai, Chandigarh, Chennai, Kolkata, Pune.Read more at:

http://economictimes.indiatimes.com/articleshow/59159053.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

As AI is moving forward the need for marketing in financial services is diminishing. Generative tools use computers and algorithms and are widely used within Financial Services. So why does that mean financial services marketers are doomed? AI does financial work by simply crunching thousands of data points, factoring in current constraints, predictive models for how things are going to change, and the individual’s goals. AI is making all decisions. Marketers are probably not going to start marketing to AI. More likely, marketers would shift focus to trying to influence the parameters humans input into the AI.  By providing an appropriate media mix to AI we can achieve goals within the budget. AIs are used by both consumers and the companies. Consumers will leverage AIs to optimize their lives and businesses will use AIs to create more personalized products and services. In this future, marketers will ultimately end up marketing to the AIs directly.Read more at : http://www.business2community.com/finance/will-ai-make-financial-services-marketing-obsolete-01855073#LExeE9rhBiBleQLc.97

Financial Institution i.e.; Banks have started specialized services for start-ups. 1) Branches have been opened for them to meet their ever growing financial needs. 2) API has been opened for start-ups which will provide access to start-up to the real-time data of a bank, giving the banks power to innovate and solve a real-time issue. 3) Online Advisory Platforms by many banks offers entrepreneurs assistance in registering and even incubation services. 4) Along with investor network, Banks are also funding start-up. 5) Banks offer them a hassle-free process to open accounts that let them have zero balance for the first six months. 6) With the rise of digital money, there is increased involvement of fintech aspect in each start-up, banks come in handy for most start-ups by offering payment gateway services. Read more at: https://www.entrepreneur.com/article/296057

An Investor always looking for innovative, cost-effective, tech- enabled modes of customer engagement and chatbot is perfect for that. It can potentially help customers better understanding Financial Services via interactive discussions on pricing, terms and conditions, etc. AI powered chatbots can give recommendations to users about the best financial services and opportunity analyzing user interaction and requirement data. Using chatbot we can ensure security of user data and cost benefit analysis of user data. So, it will be exciting to see more chatbot innovations in financial inclusion. Read more at:http://partners.wsj.com/metlife/multipliers/articles/talking-the-talk/#.WSLz8PPm2TE.mailto

Organizations which create maximum employment tend to be the most disrupting. Like the agricultural sector, which employed nearly 40% of the population in the 20th century now it employs less than 2%. As we know financial services form a big part of the workforce. Is it going to disrupt too? A new technology, Block-chain technology is threatening to disrupt it. So how does this technology work? The key point being encryption and storing them in an append only method. The basic concept is a user first encodes a message Using a private key and then shares a corresponding unique public key with anyone authorized to read the message. The public key not only allows the authorized person to read the message, but also verifies without a doubt as to who the source of the message is. The data should be updated at regular intervals, thus making the data immutable, tamper proof removing the need for any mediators. The biggest challenge of Block-chain is its integration with other systems and phased roll out. Read more at: http://cio.economictimes.indiatimes.com/dobig/news/detail/1472

Demand for credit is increasing in the cashless economy where there is rise of digital money. Various startups are emerging that allows the user to buy now and pay later. They are targeting those consumer segments of India that does not have access to a Credit Card. Banks take loads of paperwork and much more time while giving loan, whereas these startups determine credit worthiness through social media. Slicepay is targeting college students aged 18-26 who usually don’t have credit cards and this segment of people need small ticket loans which other banks don’t provide. Also, for the loans given, they believe that it won’t lead to debt crisis because i) Credit taken are in small amount. ii) Analysis is secured. Read more at: https://www.entrepreneur.com/article/295918

Goods and Service Tax (GST) is implemented to eliminate the cascading effect of tax and also double taxation. Not only the insurance companies, but also its policy holders will be affected by GST implementation. The 18 % GST rate will apply for insurance sector as per the GST council rates. At present, service tax of 15 % is imposed on the premium cost of the term plans, health plan and motor insurance plan. As per rates declared GST rates will be 18% from July 2017. This means the premium will get costlier by 3 %. Currently, endowment plans attract a service tax of 3.75 % on the premium in the first year and 1.88% in the second , 3.5 % is levied on protection part of ULIPs in the first year and 1.75 % from second year onward and will rise to 4.5 % in the first year and 2.55% in the second under the new tax regime. Read more at: https://www.entrepreneur.com/article/295143

Cash on Delivery or COD was introduced by Flipkart in 2010 and it contributed to 30% of their top-line. Initially it was offered for free but now the cost is borne by the customers. Card on Delivery comprised of only 1% of the orders. Card on Delivery could not be that popular because of setup requirements whose cost shifted to the eCommerce companies, high transaction fee. Post demonetization, card on delivery, mobile wallet payments picked up. NPCI is coming up with UPI, Adhaar Pay and Bharat QR. E commerce companies are expected to use UPI on Delivery as it will reduce their cost of carrying card machines. UPI payment is a great idea after demonetization as the number of smart phone users are expected to grow from 300 million to 467 million by 2021. Since mobile wallets were launched less than 5 years back, we stand at over 200 million mobile wallet users with 300 million smart phone users in India.  Hence, we can say mobile wallets will stay and COD system will soon transform into MOD system. Read more at:  https://www.entrepreneur.com/article/294888

The idea of getting your online data insured is still an alien concept in India. There are many insurance companies which offer packages with cyber security. In India, it is a relatively new concept. As the numbers of online transactions are increasing, incidents of cyber fraud are also increasing. KG Krishnamoorthy Rao, the MD and CEO of Future Generali India Insurance say, "Even if cyber insurance is not popular now, all it needs is awareness and then there will be a market for this." The banking sector and payment wallets urgently require cyber insurance. Cyber insurance covers economic loss, e-threat and expenses to restore data for an online business. There are not many challenges in dealing with cyber insurance. The only problem is that people don't know what they can claim through this. Read more at:  https://www.entrepreneur.com/article/295471

The entrepreneur's objective is to use the capital and expertise of the PE firm to grow the company in the ways that benefit every involved person. So, for a successful PE partnership here is some etiquette that helps ensure maximum alignment. To do: i) make sure that one fits the firm's funding and investment strategy. ii) Target those firms that have interest and experience in the industry. iii) Understand the PE firm's decision-making process. For this, interview the CEOs of past and present portfolio companies. iv) Find out how the partner is responsible for one's investment gets paid. Not to Do Things are: i) don't go "exclusive" too soon. Always understand the paperwork before signing. ii) Don't be frightened of "thorough" money and beware fast money. iii) Don't Hire an Inexperienced transaction lawyer to avoid cost. iv) Don't be defensive when the PE firm offers operating Expertise. Because it's not interfering, it's a valuable advisory resource. Read more at: https://www.entrepreneur.com/article/295506

Mobile phones act as a connecting device between two points of a transaction. One of the features that majority banks do not offer are cardless withdrawals from an ATM .Mobile banking apps can generate code to enable withdrawals and easy access. Mobile banking provides a platform to innovate and explore new sources of revenue by providing offers and services other than traditional ones such as exchange of foreign currencies. Shared finances is another area which can be easily dealt with by using mobile banking services such as splitting up a bill or making payments on another person's behalf. Read more at : http://blogs.forrester.com/peter_wannemacher/17-03-17-which_nifty_mobile_banking_features_is_your_app_missing

A person holds “concentrated equity” when he owns a large portion of company’s stock in various forms such as Employee stock purchase plan, restrictive stock or incentive stock options  and he is an employee of that company. It is imperative to know what type of stock one owns and also its cost basis (cost of acquiring such stock) to know their tax liabilities such as capital gains tax. Each stock has different tax payment structure and liquidity. One also ought to know the key dates. By owning concentrated equity, we are exposed to concentrated risks as well as the opportunity to grow as and when the company grows.  Read more at: http://www.financeandflipflops.com/managing-concentrated-equity-in-company-stock-and-stock-options/

To replace the web of indirect taxes, GST has been introduced. Registration is mandatory under GST if:

1. Sales of goods and services are more than 20 lakhs (Rs 10 lakh for North East states) in a financial year.

2. Business is involved in inter-state supplies or supplies via e-commerce.

3. Taxpayers already registered under VAT/service tax also needs to migrate and register under GST. 

The article furthers explains the benefits of GST registration such as claiming input tax credit, ease in paying taxes, paperless compliance of taxes , etc. It also explains the losses to be faced if the business is not registered under GST.

Read more at:

http://economictimes.indiatimes.com/small-biz/policy-trends/heres-how-your-business-needs-to-change-for-gst/articleshow/58995677.cms

New startups come regularly. But less than 50% businesses are not closed in the next 5 years. This shows that how well the businesses will do in the future have to do with how one is spending on it today i.e.; money habits. Poor money habits to look after are: First, not having regards for "little money", spending, smaller denomination in huge amount causes less access to actual working capital. The second is not diversifying the income stream of the business. Diversifying is the most potent way to get a large market share and raise income. The third is not saving. Fourth is not taking steps to reduce credit card balances and debt. Fifth is not maximizing tax deductions and write-offs. Sixth is not keeping oneself on a salary. Read more at: https://www.entrepreneur.com/article/294877

In this blog, the author explains the steps to a dual risk rating system. In such a system, the probability of default (PD) is estimated separately from the loss given default (LGD). The expected loss for a given loan is then calculated as their product. Five essential steps to a dual risk rating system are: Understanding the key drivers of a dual risk system; Demonstrating the advantages of a dual risk rating approach through case studies; Implementing separate PD and LGD credit scoring solutions; Developing a PD and LGD mapping scale; and lastly Combining dual rating scores. Read more at : http://marketintelligence.spglobal.com/blog/risk-insight-five-essential-steps-to-a-dual-risk-rating-system

A Risk Analyst frequently comes across companies with incomplete financial information which is essential for their credit assessment. To solve this problem a dual approach that takes into account both the quantity and materiality of the exposures is useful: a) When there is a large number of small exposures, it is reasonable to fill gaps by leveraging company credit score benchmarks or looking at the Country Risk Scores and Industry Risk Scores that capture the risk of doing business in a country/industry.b) When there are large exposures,  we need to employ advanced statistical techniques, tailored to the company type, industry, and region, to estimate missing financial ratios needed in our fundamentals-based models, and thus generate a credit risk score.Read more at: http://marketintelligence.spglobal.com/blog/when-enough-is-enough-assessing-credit-risk-of-companies-with-incomplete-financials

There can be times when instead of receiving money may end up with a tax bill. Tax return can be affected by major life changes. Some of the reasons may be: 1) Starting a side business: 2) Getting married: Married couples who file their joint tax return may face a higher tax bill. 3) Filing for Divorce: For some people, becoming single could also mean landing in a higher tax bracket, especially if their spouse earned significantly less money -- and brought them into a lower tax bracket. 4) Tapping into your retirement account: People who will withdraw money before retirement will have to pay 10% penalty tax unless it is for medical emergency. 5) Selling your home: Any gains from selling a home will be reported as capital gain and is subject to 20% tax if owned for more than 1 year. 6) Losing job: Some people may not realize that income received from unemployment benefits is taxable. 7) Receiving an inheritance: If you inherit an asset that they would have owed taxes on, that asset is now taxable to you. 8) Winning a vacation: Winners typically owe income tax on cash prize. Read more at : http://www.dailyherald.com/article/20170409/business/170409110/

Research by Diamond (1984) assumes that diversification would eliminate the risk of shocks. Alternate theory (Winton, 1999) says that specialization would remove information barriers between borrowers and lenders and hence would mitigate default risks keeping banks stable. In a recent paper by Thornsten Beck, a finance professor at Cass Business School, took bank sectoral specialization and bank sectoral differentiation as measures. He concluded that banks with more specialization experience lower volatility of stock returns and lower systematic risk. Also, there is inverse relationship between sectoral differentiation and systematic risks. More research is required in this area.Read more at: https://blogs.worldbank.org/allaboutfinance/not-all-eggs-same-basket-role-sectoral-specialization-banking-system

Financial inclusion is the process of achieving the development goal, but not the goal itself. It involves availing the financial services of financial institutions like maintaining savings account, having insurance or taking formal credit. Some but not all financial products are effective in achieving goals like eliminating poverty. Savings account which is earmarked for specific purposes such as school fees have quite an impact, whereas microcredit has mixed impact on low earning individuals. There is a lack of evidence of a link between financial inclusion and macroeconomic growth indicators as against that at the micro level. Results of field experiments cannot be replicated across countries. As technology changes better ways can be devised to link micro level benefits to macroeconomic goals. Read more at : http://blogs.worldbank.org/allaboutfinance/what-do-we-know-about-link-between-financial-inclusion-and-inclusive-growth