WebProNews

Category: FinTechUpdate

FinTechUpdate

  • Personal Loans For Business: What You Need to Know

    Personal Loans For Business: What You Need to Know

    Although personal loans can be easier to obtain than business ones, they may jeopardize your finances. Here are some things you should know before using a personal loan for your company.

    During the pandemic, many small businesses grappled with worst-case scenarios: lenders tightened borrowing conditions, and revenues were down. In these cases, a personal loan may be used for payroll or vendor payments when a business has used up its business line of credit and cannot obtain a traditional business loan.

    It’s possible for entrepreneurs to be so driven that they would do anything to keep their business going, whether that’s a good idea or not. However, here are some reasons why getting a personal loan for a small business may or may not be a good idea.

    Personal Loan: A Definition

    Based on your credit history and income, you can borrow a predetermined amount of money for nearly any reason through a personal loan. Over time, you repay it with interest.  Therefore, you can get a lump sum of money from a bank, credit union, or internet lender that ranges from $1,000 to $100,000; the money is typically repaid over the course of two to five years in monthly installments.

    Your creditworthiness, a gauge of how dangerous of a borrower you are, plays a significant role in whether or not you are approved for a personal loan. You have a better chance of getting authorized for a loan with the lowest interest rate if your income and credit score are strong.

    Notwithstanding the differences between personal and business loans, both can depend on an owner’s credit history for acceptance.

    Getting A Personal Loan for Your Small Business

    Personal loans are not always a wise business decision. For instance, a person about to retire may not wish to take on extra debt. However, younger businesspeople are considering the long-term impact of the extra money on their businesses. 

    Here are a couple of reasons why you would want to obtain a personal loan for your company:

    Personal loans are quick and flexible. 

    A personal loan might be the best option if you require money urgently to cover the financial requirements of your business, from payroll to vendor expenses. On the other hand, it can take weeks or even months for a Small Business Administration loan, and a personal loan can be approved in a matter of days.

    Obtaining personal loans is much easier than securing business loans. One reason is that, with a personal loan, you won’t have to put up collateral to reduce the lender’s risk. A business loan is often more difficult to obtain than a personal loan. However, the current economy has made it considerably more difficult. 

    Comparatively speaking, personal loans are less expensive.

    Entrepreneurs with tight cash flows could be tempted to take on sales-based loans like invoice loans or merchant cash advances. Because the interest can compound quickly, it is advisable to carefully read the fine print. Hidden clauses can wreak havoc on your finances if you don’t recognize what they really are. 

    Although personal loans typically offer lower interest rates, you can also consider using all available credit on your company and personal credit cards. Yet, compared to personal loans, conventional business loans have lower interest rates and bigger credit ceilings.

    Conclusion

    A personal loan may be the answer for your business if a business loan is not feasible right now. However, make sure that it won’t do more harm than good. After all, your personal credit is something that will follow you throughout your life. Therefore, it’s wise to guard it carefully. 

  • Credit Suisse Collapses, Sells to Rival UBS

    Credit Suisse Collapses, Sells to Rival UBS

    Credit Suisse has reached an agreement to be purchased by rival UBS, ending its 167-year run as an independent institution.

    Credit Suisse developed a reputation for taking risks that many other banks wouldn’t. As The Wall Street Journal reports, the bank emerged from the 2008 crisis stronger than many rivals, a position that emboldened it to continue its freewheeling style.

    “They felt, ‘We are the winner from the financial crisis, and everyone else is hurt,’” said Andreas Venditti, a Vontobel banking analyst. “So they doubled down on these kinds of businesses and on investment-banking exposure in general.”

    Unfortunately, the bank’s reputation caught up with it, and amid the economic downturn and failing banks, investors were more rattled than expected. The bank’s stocks tanked, and it struggled to compete with other banks for deals critical to its survival.

    “Credit Suisse’s problem for decades, and I really mean decades, is terrible operational risk management,” said Mayra Rodriguez Valladares, a U.S.-based consultant bank regulation consultant. “Everyone lets them get away with it: The U.K., the U.S., the Swiss.”

    While regulators may have let Credit Suisse get away with its antics, the market didn’t.

  • Wells Fargo Customers Are Missing Deposits

    Wells Fargo Customers Are Missing Deposits

    Wells Fargo customers are reporting missing deposits, with the bank investigating and promising a fix.

    According to ThinkAdvisor, Wells Fargo is aware of the issue and put the following statement on its website:

    “If you’re experiencing an issue with our online services, we apologize for the inconvenience. We’re working quickly to resolve it.”

    In addition, the bank provided the following statement to ThinkAdvisor:

    “Wells Fargo is aware that some customers’ direct deposit transactions are not showing on their accounts, however funds in accounts are accurate and available. We are working quickly on a resolution and apologize for the inconvenience. Customers’ accounts continue to be secure.”

    While certainly inconvenient, it’s at least good to know customer accounts have not been compromised and the issue appears to be a minor technical one.

  • Credit Suisse Cancels Exec Bonuses Admits ‘Material Weakness’

    Credit Suisse Cancels Exec Bonuses Admits ‘Material Weakness’

    Credit Suisse has cancelled bonuses for its executives, citing “material weakness” in its financial reporting.

    According to CNN, Credit Suisse delayed its annual report after the SEC raised questions about 2019 and 2020 cash flow statements. As a result, the company took a closer look and concluded that “the group’s internal control over financial reporting was not effective,” and failed to identify potential risks.

    In addition, the company’s board found that “material weakness could result in misstatements of account balances or disclosures that would result in a material misstatement to the annual financial statements of Credit Suisse,” the annual report said. The company is working on a “remediation plan” to strengthen controls, according to CNN.

    In the meantime, Credit Suisse is canceling bonuses for its executives, and chairman Axel Lehmann has offered to “voluntarily “waive” a $1.6 million stock award as a result of the company’s “poor financial performance.”

  • Employees Blame ‘Stupid’ Silicon Valley Bank CEO

    Employees Blame ‘Stupid’ Silicon Valley Bank CEO

    After Silicon Valley Bank’s spectacular collapse last week, employees and industry insiders are blaming the CEO’s “stupid” decisions.

    Greg Becker, SVB’s CEO, announced last Wednesday that the bank needed to raise just north of $2 billion. What no one can explain, however, is why a 40-year veteran of the banking industry didn’t privately try to raise the capital before making an announcement.

    “That was absolutely idiotic,” the employee, who works on the asset management side of Silicon Valley Bank, told CNN in an interview. “They were being very transparent. It’s the exact opposite of what you’d normally see in a scandal. But their transparency and forthright-ness did them in.

    “People are just shocked at how stupid the CEO is,” the Silicon Valley Bank insider added. “You’re in business for 40 years and you are telling me you can’t raise $2 billion privately? Get on a jet and fly to Kuwait like everyone else and give them control of one-third of the bank.”

    Industry insiders shared the employee’s evaluation:

    “Someone lit a match and the bank yelled, ‘Fire!’ – pulling the alarms in earnest out of genuine concern for transparency and honesty,” Jeff Sonnenfeld and Steven Tian, the CEO and research director, respectively, at Yale School of Management’s Chief Executive Leadership Institute (CELI), told CNN.

    Sonnenfeld agreed that SVB’s leadership deserved criticism for a “tone-deaf, botched execution.”

  • Bitcoin Surges After Banks Collapse

    Bitcoin Surges After Banks Collapse

    On the heels of three banks collapsing in the last week, Bitcoin appears to be benefiting from consumer fears.

    The tech industry and financial markets are reeling from the collapse of Silicon Valley Bank (SVB) and Signature Bank. The tech industry was particularly dependent on SVB with its collapse still sending shock waves throughout the industry.

    According to Decrypt, Bitcoin is benefiting from spooked consumers and investors, with the cryptocurrency rising almost 20% since SVG’s collapse.

    In fact, the entire market appears to be getting a boost, with individual cryptos up across the board.

  • Regulators Shut Down Signature Bank

    Regulators Shut Down Signature Bank

    Regulators have shut down Signature Bank, the third bank in the last week, citing “systemic risk.”

    The last few days have been difficult for banks, especially those servicing the tech industry. Silicon Valley Bank has been in the news as the second-largest bank collapse in US history. With the financial downturn, tech customers withdrew enough funds to help cause a run on the bank, leading to its collapse. Regulators see the same kind of risk with Signature Bank, leading them to shut it down.

    A joint statement by Treasury, Federal Reserve, and FDIC announced the closure:

    We are also announcing a similar systemic risk exception for Signature Bank, New York, New York, which was closed today by its state chartering authority. All depositors of this institution will be made whole. As with the resolution of Silicon Valley Bank, no losses will be borne by the taxpayer.

    Shareholders and certain unsecured debtholders will not be protected. Senior management has also been removed. Any losses to the Deposit Insurance Fund to support uninsured depositors will be recovered by a special assessment on banks, as required by law.

    Regulators did reaffirm that Silicon Valley Bank depositors will have access to their money on Monday:

    After receiving a recommendation from the boards of the FDIC and the Federal Reserve, and consulting with the President, Secretary Yellen approved actions enabling the FDIC to complete its resolution of Silicon Valley Bank, Santa Clara, California, in a manner that fully protects all depositors. Depositors will have access to all of their money starting Monday, March 13. No losses associated with the resolution of Silicon Valley Bank will be borne by the taxpayer.

  • Federal Government Will Not Bail Out Silicon Valley Bank

    Federal Government Will Not Bail Out Silicon Valley Bank

    Silicon Valley Bank (SVB) shocked the industry when it collapsed Friday, leaving a plethora of companies in limbo.

    SVB was the 16th-largest bank in the US, making it the second-largest bank collapse in US history. The bank’s collapse has left many of Silicon Valley companies and startups scrambling to address cash-flow issues.

    The collapse has also sparked questions about whether the government plans to bail the bank out, much like it did in the crash of 2008. According to AP News, Treasury Secretary Janet Yellen threw cold water on the idea.

    “We’re not going to do that again,” she said, referencing past bailouts. “But we are concerned about depositors, and we’re focused on trying to meet their needs.”

    Some experts are concerned that SVB’s collapse could spark a run on other banks, leading to more collapses. After all, it was tech companies’ run on SVB — in an effort to stay solvent during the financial downturn — that led to SVB’s failure. Yellen tried to offer reassurance that the banking system was sound.

    “The American banking system is really safe and well capitalized,” she said. “It’s resilient.”

    In the meantime, deposits insured by the government should be available Monday morning.

  • Financing Options for Franchise Purchases: How to Secure Funding

    Financing Options for Franchise Purchases: How to Secure Funding

    If you are looking to purchase a franchise, there are a variety of financing options available to you. From traditional bank loans to alternative financing solutions, there is an option that is right for every prospective franchisee. In this comprehensive guide to financing business loans for franchises, we will discuss the various ways to finance a franchise purchase, the benefits of purchasing a franchise, and how to secure the right financing solution for you.

    Introduction to Financing Options for Franchises

    A franchise is a business model that allows a business owner to purchase the rights to open and operate a business that is already established and successful. This type of business model is attractive to many prospective entrepreneurs because of the potential for success and the ability to leverage existing resources and infrastructure to get started. To purchase a franchise, however, you will need to secure financing.

    There are many different ways to finance a franchise purchase. The most common way is through a traditional bank loan. Bank loans are typically the most secure option and can provide a stable source of financing for your franchise purchase. Other financing options include venture capital, private equity, and alternative financing solutions such as online lenders, crowdfunding, and angel investors.

    Benefits of Purchasing a Franchise

    Before diving into the various financing options available, it is important to understand the benefits of purchasing a franchise. Franchises have a variety of advantages, such as access to established customer bases, pre-existing infrastructure, and the ability to leverage the franchisor’s brand recognition and marketing campaigns. Additionally, franchisors often provide training and support to franchisees, which can be invaluable when starting a business.

    Purchasing a franchise can also be a way to minimize risk. As a franchisee, you are not responsible for building a brand from scratch or establishing customer loyalty. You are able to leverage the existing infrastructure and customer base that the franchisor has already established. This can help reduce the risk associated with launching a business and increase the chances of success.

    Different Types of Financing Options

    Now that we have discussed the benefits of purchasing a franchise, let’s explore the different types of financing options available to franchisees.

    The most common way to finance a franchise purchase is through a traditional bank loan. Bank loans are generally the most secure option and provide a stable source of financing for franchisees. Banks typically require collateral, such as real estate or equipment, in order to approve a loan. Additionally, banks may require a personal guarantee from the franchisee.

    Venture capital is another financing option for franchisees. Venture capital firms typically invest in high-growth potential businesses, such as franchises. They provide financing in exchange for a stake in the business and often require a long-term commitment from the franchisee.

    Private equity investments are also an option for franchisees. Private equity firms invest in established businesses and provide financing in exchange for equity in the company. This type of financing is typically reserved for businesses with established track records of success.

    In addition to traditional financing options, there are also alternative financing solutions available to franchisees. Online lenders, crowdfunding platforms, and angel investors are all potential sources of financing for franchisees. These financing solutions have become increasingly popular over the past decade due to their flexibility and accessibility.

    How to Secure Financing for a Franchise

    Now that we have discussed the various financing options available, let’s explore how to secure financing for a franchise purchase. The first step is to create a comprehensive business plan. A business plan should include a detailed description of the business, a market analysis, and financial projections. This will help you to clearly articulate your plans to potential lenders and investors.

    Once you have created a business plan, you should begin researching potential financing options. You should compare the different types of financing options to determine which one is the best fit for you. You should also consider the terms and conditions offered by each lender or investor, such as interest rates, repayment schedules, and collateral requirements.

    When researching financing options, you should also take the time to research the franchisor. You should read reviews, speak to other franchisees, and investigate the franchisor’s track record of success. This will help you to make an informed decision about which financing option and franchisor is the right fit for you.

    Qualifying for Financing

    Once you have researched potential financing options, it is time to apply for financing. In order to qualify for financing, you must meet certain qualifications. Lenders and investors will typically look at your credit score, income, and business plan to determine whether you are a good candidate for financing. You should also have a solid understanding of the franchise industry and be prepared to answer any questions that lenders or investors may have.

    Additionally, you should have a clear understanding of the terms and conditions of the loan or investment. You should be aware of any penalties or fees associated with the loan and be prepared to make any necessary payments on time.

    Alternatives to Traditional Financing Options

    In addition to traditional financing options, there are also alternative financing solutions available to franchisees. Online lenders, crowdfunding platforms, and angel investors are all potential sources of financing for franchisees. These financing solutions can provide access to capital without the need for collateral or credit checks.

    Online lenders typically provide short-term loans with competitive interest rates. This can be a good option for franchisees who need access to capital quickly. Crowdfunding platforms allow investors to pool their resources to fund a project or business. This can be a good option for franchisees who are looking to raise funds without taking on debt. Angel investors are typically wealthy individuals who are looking to invest in high-growth potential businesses. This can be a good option for franchisees who are looking for more flexible financing terms.

    Comparing Financing Options

    When comparing financing options, there are several factors to consider. The first is the cost of the loan or investment. You should take into account the interest rate, fees, and repayment schedule to determine which option is the most cost-effective. You should also consider the terms and conditions of the loan or investment. This includes the length of the loan, any collateral requirements, and any penalties or fees associated with the loan.

    Additionally, you should consider the flexibility of the loan or investment. Some lenders or investors may offer more flexible terms and conditions than others. You should also consider the reputation of the lender or investor. You should research the lender or investor to determine whether they have a good track record of working with franchisees.

    Tips for Negotiating Financing

    Once you have compared financing options, it is time to negotiate the terms of the loan or investment. Here are a few tips to help you negotiate the best financing deal for your franchise purchase:

    • Research the lender or investor: Before negotiating, research the lender or investor to ensure they are reputable and have a good track record with franchisees.

    • Understand the terms: Take the time to fully understand the terms of the loan or investment, including interest rates, repayment schedules, and collateral requirements.

    • Be prepared to negotiate: When negotiating, be prepared to counter any offers or terms that you are not comfortable with.

    • Know your numbers: Have a clear understanding of your financials and be prepared to provide any necessary documents or information.

    • Don’t be afraid to walk away: If the terms of the loan or investment are not favorable, don’t be afraid to walk away and look for other financing options.

    Resources for Researching and Comparing Financing Options

    When researching and comparing financing options, there are several resources available to franchisees. The Small Business Administration (SBA) is a great resource for franchisees looking to secure financing. The SBA provides access to grants, loans, and other financing options.

    Additionally, there are several online tools and platforms that can be used to compare financing options. These include comparison sites, such as Credible and LendingTree, which allow you to compare loan and investment terms from multiple lenders or investors.

    Conclusion

    Securing financing for a franchise purchase is an important step for prospective franchisees. There are a variety of financing options available, from traditional bank loans to alternative financing solutions. It is important to take the time to research the different financing options and compare the terms and conditions to find the best fit for you. Additionally, you should be prepared to negotiate the terms of the loan or investment to ensure you get the best deal. With the right financing solution, you can get your franchise off the ground and on its way to success.

  • 5 Reasons Why You Should Use AP Automation System

    5 Reasons Why You Should Use AP Automation System

    Accounts payable automation is a powerful tool that you should use if your company is growing. It’s a great way to track costs and improve efficiency within your organization. This article will discuss why you should automate your accounts payable system and how it can help small business owners stay on top of their finances.

    1. Makes Life Simpler

    Accounts payable automation allows you to automate the entire process of paying your bills, from creating and sending invoices and even paying them. This reduces human error and provides more accurate reports in terms of the exact amount of funds you have. In addition, it also allows you to schedule regular payments, so they’re done at a time that works best for you.

    1. Accuracy

    Accuracy can be hard to achieve when managing your accounts payable process manually. This is why you need an automated system that helps you keep track of all the money flowing through your company.

    AP automation systems will help you increase efficiency and productivity while reducing costly errors and delays in the payment process. You can also use them to track how much money you’re spending on invoices, which will help you make informed decisions about where to allocate resources.

    1. Efficiency

    Automating the accounts payable system is the best way to make sure that you are staying on top of the finances of your business. It helps you to be able to track and control all funds that go in and out of your business, which enables you to manage your cash flow more effectively.

    AP automation software helps you receive payments from vendors on time, avoid late fees, and keep track of expenses. This will help you save money on interest charges, reduce paperwork and errors, increase efficiency, and ensure that all payments are accounted for properly.

    You can get a lot done when you’re not tied down due to human intervention, and that’s another thing this accounts payable automation software will help you do! You’ll be able to create different types of invoices on the fly, which means you can adjust things like payment terms and refunds as needed. This means fewer errors and happier customers!

    If you’re worried about how your current system will work with this one, check with the team before implementing it. Most companies offer free consultations and training on their accounts payable automation software, so you know how to use it the right way. 

    1. Streamlined Processes

    Implementing an accounts payable automation system is a great tool to reduce human error, improve efficiency, and increase profitability. It also helps you create a trustworthy relationship with your clients as they can easily track all of their payments.

    The most significant benefit of using AP automation solutions is that it streamlines the payment process. You can automate processes such as receiving payments from customers and sending invoices to them. This way, you can save time by not doing such things manually. 

    AP automation solutions also ensure that all payments are made accurately and on time. You no longer need to worry about missing payments or paying late fees because it will automatically notify you if a payment has yet to be received. 

    1. Recordkeeping

    Accounts payable is one of the most important departments in any business. Every company has to have a way to pay its bills, and without it, it would be chaos. The problem is that when you have a business to run and limited accounts payable staff, various issues will inevitably arise. For example, if you don’t have proper records on who owes what to whom, invoices stay pending, and services stop.

    Another problem with taking care of accounts payable manually is that it can be difficult to keep track of all invoices and statements. This is why it makes sense to automate this process, so you can save time and take human error out of the equation. The best part is every cent will be accounted for.

    Conclusion

    As you might guess, AP automation solutions can be used in any business that deals with orders or purchases that require quick action. You may not have considered this type of accounts payable automation software because you have so much capital invested in your inventory. However, it’s important to remember that if you implement an AP automation program as a way to streamline your business you can easily keep track of the accounts payable process. 

    AP automation solutions can help you increase the profitability of your company. Using this kind of system for various payment issues is much faster and much more accurate since everything is digitalized.

  • 6 Ways to Invest Successfully in an Unstable Economy

    6 Ways to Invest Successfully in an Unstable Economy

    Many economic and financial experts agree. There’s a good chance that the economy could become very unstable before long. It may be the result of inflation, global supply chain issues, or geopolitical strife worldwide. But regardless of the reason, all investors need to be prepared. There are some critical things to remember to prepare your portfolio for potential instability. Let’s take a closer look.

    1.   Pivot Away From Risky Industries and Asset Classes

    There’s a time for speculative investments and risky bets with your money. But an unstable economy isn’t that time. This means many investors will want to transition away from tech companies, crypto, highly leveraged investments, and similar products. As quickly as these assets grew when times were good, they can collapse when things turn around – even dropping to zero in some cases.

    Ideally, these risky investments should be replaced with stable companies with a long track record of financial success through past recessions and downturns. While these financial stalwarts may not look as attractive when the stock market is booming and the economy is great, their slow-but-steady returns are just what savvy investors look for as they weather the storm.

    2.   Diversify

    This is good advice in all economic situations, but it’s worth remembering as investors rebalance their portfolios for potential impending trouble. A diversified portfolio insures the investor against losing too much money should a particular company go belly-up or an industry faces specific headwinds. Investors should not only put their money to work in a variety of different sectors but also in various types of financial products as well. Overall, it’s one of the simplest and smartest things anyone can do to keep from losing more money than necessary should a recession strike.

    3.   Take Advantage of Commercial and Multifamily Real Estate

    Many think of real estate primarily as renting or flipping houses, but unstable economies also present a particular opportunity to invest in commercial real estate. Nervous owners may be looking to sell and cash out, often at a discount. Even those without significant financial resources can finance these types of deals using products like DSCR loans, which are approved based on whether a prospective property will produce enough income to cover the monthly payments. These can also be used for multifamily properties like apartment buildings, which can act as a mix of commercial and residential real estate.

    4.   Watch Your Fees and Investment Costs

    In general, investors should be wary of any funds, advisers, or other investments which take a significant portion of their returns. While a single percentage point or similar amounts may not sound like much, it can add up to thousands or tens of thousands of the life of an investment, draining you of money that should be compounding and growing your wealth. This can be incredibly frustrating when the investments aren’t performing as you’d hoped, as is often the case as an unstable economy approaches. Use impending economic headwinds to review your portfolio and see if there are ways you can cut fees. In some cases, investors can cut their fees to just fractions of a percent through the use of popular index funds and other stock and mutual fund investments that don’t require active management.

    5.   Explore Alternative Investments

    Those looking to preserve or grow their wealth when the traditional financial markets are looking uncertain may want to invest in alternatives. Sometimes, these could be alternative financial investments like options or commodity futures. For educated, disciplined investors, these can offer value when the economy is unstable. Precious metals like gold and silver have also traditionally been solid investments, either through physically held coins or bullion or financial investments that track the price of the metal. 

    Beyond these, sophisticated investors can also grow or preserve their money in investments like art or collectibles. These often require more knowledge but can provide a great option that also serves as a beautiful decoration at the same time. Some investors have even purchased royalty streams from artists, musicians, and others, securing a portion of their future earnings from released work in exchange for a current investment.

    6.   When in Doubt, Get Help from an Expert

    You’ve worked hard to earn and grow your savings and investments. That’s why it’s critical to do everything you can to protect them when the economy gets rocky. This includes speaking with financial advisors and other professionals who can offer their experience for your benefit.

    Some may balk at paying for investment advice and guidance. But for many, it’s a small price in exchange for peace of mind – not to mention the real monetary savings they’ll experience relative to where they’d be otherwise.

    Opportunities for Investors in Unstable Economies Abound

    It can be easy to cash out all your investments, hide your money under the proverbial mattress, and wait for economic conditions to look better. But that’s precisely the wrong move, especially for those with an eye on the best returns over the long run. Instead, keep this list of investment tips and pieces of advice in mind, and you’ll be sure to weather even the most unstable economy.

  • Andreessen Horowitz Wants to Manage the Finances of Startups It Invests In

    Andreessen Horowitz Wants to Manage the Finances of Startups It Invests In

    VC firm Andreessen Horowitz (a16z) may be looking to expand its services by managing the finances of startups it invests in.

    According to Bloomberg, the company recently hired Michel Del Buono as chief investment officer. His duties will include overseeing a range of wealth-management services.

    Providing wealth-management services could be a highly profitable business for the firm. Companies usually charge 1% of a client’s assets, with profits reaching as high as 50%.

    While a16z did confirm Del Buono’s hiring to Bloomberg, it declined to comment on any future business plans.

  • PayPal Is Laying Off 2,000 of Its Workforce

    PayPal Is Laying Off 2,000 of Its Workforce

    PayPal has announced it is laying off roughly 2,000 employees, representing approximately 7% of its staff.

    PayPal has been working over the last couple of years to transform its business to adapt to changes in the technological and business landscape. The company has explored the possibility of stock-trading platform, and added support for cryptocurrency.

    In a company announcement, President and CEO Dan Schulman painted the layoffs as the next — albeit unfortunate — step in the company’s transformation.

    Addressing these changes requires us to make hard decisions that will impact some of our colleagues. Today, I’m writing to share the difficult news that we will be reducing our global workforce by approximately 2,000 full time employees, which is about 7% of our total workforce. These reductions will occur over the coming weeks, with some organizations impacted more than others. We will treat our departing colleagues with the utmost respect and empathy, provide them with generous packages, engage in consultation where required, and support them with their transitions. I want to express my personal appreciation for the meaningful contributions they have made to PayPal.

  • Major Banks Joining Forces to Take on Apple Card, PayPal

    Major Banks Joining Forces to Take on Apple Card, PayPal

    Major banks are reportedly joining forces in an effort to better take on Apple Card and PayPal in the digital wallet market.

    In the era of digital transactions and wallets, traditional banks have found themselves playing second fiddle to tech companies. According to CNBC, several of the biggest banks want to change the status quo and exert more direct influence.

    Bank of America, JPMorgan Chase, and Wells Fargo are among those reportedly looking to work together to create their own digital wallet that will link to customers’ debit and credit cards.

    The new cards reportedly could launch later in 2023, with both Visa and Mastercard on board.

    The banks are likely driven by a desire to maintain a more direct relationship with the customer, along with the possibility of selling them additional services as a result of that relationship. Banks are probably also somewhat leery of tech deals that leave them with the short end of the stick. For example, Goldman Sachs has reportedly lost somewhere between $1 to $3 billion on the Apple Card deal.

    Nonetheless, entering the market and competing with established tech companies won’t be easy, experts warn.

    Bernstein analyst Harshita Rawat said banks have “likely always had PayPal envy,” but that didn’t mean the way forward is going to be easy.

    “It simply takes a very long time, a killer customer experience (which needs to be better than incumbents, not just similar), and a compelling merchant value proposition to build the two-sided network effects in payments to achieve scale,” Rawat said in a note to clients.

  • Stripe May Go Public Within the Next Year

    Stripe May Go Public Within the Next Year

    Stripe’s IPO may be on the horizon, with the company telling employees it will decide within the next year whether to go public.

    Stripe was riding high during the pandemic, one of many tech companies that benefited from the switch to remote work and e-commerce. As spending slowed and interest rates crept up post-pandemic, Stripe was forced to delay any plans to go public.

    According to The Information, via CNBC, the company’s founders, John and Patrick Collison, have told employees they will make a decision within the next year. The goal is to either either go public, or give employees the chance to sell their shares via secondary offering.

  • Germany Investigating PayPal’s Market Dominance

    Germany Investigating PayPal’s Market Dominance

    PayPal is in the crosshairs of German regulators over concerns that it used its market dominance to stifle competition.

    PayPal is a popular online payment processor and money transfer platform. In many countries, it’s the de facto standard payment method for buying and purchasing online.

    According to Reuters, however, German regulators are concerned the company may have abused that dominance in an effort to ward off competition. In particular, the antitrust regulator raised concerns over clauses in PayPal’s agreement that say sellers cannot show a preference for other payment methods, or make it easier for customers to use them.

    “These clauses could restrict competition and constitute a violation of the prohibition of abuse,” said chief Andreas Mundt.

    “We will now examine what market power PayPal has and to what extent online merchants are dependent on offering PayPal as a payment method.”

  • JPMorgan Says It Was Duped Into Buying a Startup, Sues Founder

    JPMorgan Says It Was Duped Into Buying a Startup, Sues Founder

    JPMorgan is in the middle of an embarrassing situation, claiming it was duped into purchasing a startup.

    JPMorgan bought Frank, a financial aid website for college students, for some $175 million. Unfortunately, when JPMorgan sent out marketing emails to Frank’s customers, 70% of them bounced back, according to CNBC. The bank is accusing Frank founder Charlie Javice of creating almost 4 million fake accounts to artificially inflate the value of her company.

    “To cash in, Javice decided to lie, including lying about Frank’s success, Frank’s size, and the depth of Frank’s market penetration in order to induce JPMC to purchase Frank for $175 million,” the bank said. “Javice represented in documents placed in the acquisition data room, in pitch materials, and through verbal presentations [that] more than 4.25 million students had created Frank accounts.”

    The bank claims that, in reality, Frank had “fewer than 300,000 customers.” JPMorgan also makes the case that Javice knowingly faked the email accounts, since she approached her engineering chief to use an algorithm to create “fake customer details.” When the engineering chief refused, Javice turned to a college professor in New York.

    Javice’s emails with the professor leave little to the imagination, in terms of what she was allegedly trying to do.

    “Will the fake emails look real with an eye check or better to use unique ID,” she allegedly asked.

    For her part, Javice is claiming JPMorgan bought her company and then failed to pay her what she was owed when the bank ran into unforeseen issues.

    “After JPM rushed to acquire Charlie’s rocketship business, JPM realized they couldn’t work around existing student privacy laws, committed misconduct and then tried to retrade the deal,” Alex Spiro, Javice’s attorney, told The Wall Street Journal. “Charlie blew the whistle and then sued.”

    JPMorgan has since shuttered the Frank website, but the case raises more questions than it answers, not the least of which is how JPMorgan could be duped in the first place. Either JPMorgan’s case is accurate, and it failed to properly investigate the scope of the business it was buying, or Javice is correct and JPMorgan bought a business it couldn’t properly monetize due to privacy laws — which is still a failure to properly investigate a potential acquisition.

    Either way, JPMorgan clearly needs to revamp acquisition process.

  • The 4 Best Stock Research Websites in 2023

    The 4 Best Stock Research Websites in 2023

    Are you looking for the best stock research websites? With so many options, it can take time to figure out where to start. 

    But not to worry! We’ve put together the best four stock research websites to help you make informed decisions in the stock market. This blog post will cover the features, pros and cons, and other important factors that make these sites stand out from the rest. 

    So if you’re ready to start investing in the stock market, read on to learn more about the four best stock research websites in 2023.

    1. Morningstar

    Morningstar is a powerful online stock research tool, providing investors with reliable data and analysis on stocks and bonds worldwide. It offers a wide range of features, including portfolio tracking, stock quotes, price alerts, financial news, analyst reports, and portfolio analysis. 

    Investors can also use Morningstar’s ETF screener, allowing users to search for stocks and ETFs based on pre-defined criteria quickly. In addition, Morningstar’s research center provides in-depth research reports, including technical analysis and investment ratings, and a library of educational resources.

    Pricing: 

    The premium plan costs $35/monthly

    Pros

    • Comprehensive research coverage, with analyst ratings and reports
    • In-depth stock screening tools
    • Portfolio tracking and analysis tools 
    • Wide range of features and resources
    • Easy-to-use interface

    CONs

    • Subscription fees can be expensive
    • User experience can be improved in certain areas

    2. Yahoo Finance

    Yahoo Finance is one of the most popular stock research websites that offer a wide range of features to help investors make informed decisions about their investments. Yahoo Finance allows users to access real-time market data, charts, and analysis. It also provides investors with an interactive portfolio tracker and helpful research tools. 

    Yahoo Finance is an ideal platform for those new to investing, as it offers a great overview of the stock market and helps to understand how it works. Additionally, the website provides a variety of articles that contain up-to-date news and advice on stocks, funds, and other investment strategies. 

    Pricing:

    The Lite plan costs $250/yearly, while the essential plan costs $350/yearly.

    PROs

    • Offers real-time market data, charts, and analysis
    • Variety of articles with up-to-date news and advice
    • Interactive portfolio tracker 
    • Analyst forecasts

    CONs

    • Ads can be intrusive
    • The user interface is sometimes clunky

    3. Seeking Alpha Premium 

    Investment information and research from a variety of sources is crowdsourced on Seeking Alpha. Those who pay for a Premium subscription can instantly access distinct perspectives about their preferred stocks from well-informed investors. Most of the material on the website is free. 

    However, after viewing several articles, users will see a paywall. To have unlimited access to all content, stock screening tools and assessment systems, you must subscribe to either Seeking Alpha Premium or Seeking Alpha PRO.

    As a premium subscriber to Seeking Alpha Premium, you will not only gain access to content that is not accessible by the public, but these articles will also offer data and understanding regarding potential investments, giving you an advantage in stock trading. 

    Besides the restricted content, premium members can take advantage of other useful components like Author Ratings, Author Performance, Stock Quant Ratings and Dividend Grades.

    Pricing: 

    For an annual fee of $239, Seeking Alpha allows users to save time and potentially increase their returns.

    PROs

    • Portfolio Alerts & Monitoring
    • Proprietary Stock Screener
    • Factor Grading
    • Articles and Article Sidebar

    CONs

    • Charts could be more modern and immediately produce a PDF upon request.

    4. The Motley Fool

    The Motley Fool is a stock research website that provides financial news, analysis and advice to individual investors. It was founded in 1993 by brothers David and Tom Gardner. The website offers various services, including stock market research, analysis, portfolio management, education, and investment advice.

    The Motley Fool’s services are tailored to provide comprehensive insights into the stock market. Its premium subscription includes exclusive stock picks, in-depth market analysis, daily stock watchlists, educational materials, and other resources. The website also offers investment newsletters with weekly or monthly updates on market conditions and trends.

    Pricing:

    Its Epic Bundle cost $499/yearly, while the Stock Advisor goes for $199/yearly.

    PROs

    • Comprehensive coverage of the stock market 
    • Access to exclusive stock picks 
    • In-depth market analysis 
    • Weekly or monthly updates on market conditions and trends 
    • Educational materials 
    • Portfolio management tools

    CONs

    • Premium membership is expensive 
    • Some of the stock picks can be too aggressive for some investors 

    The Key Takeaway 

    When researching stocks for your portfolio, it’s essential to use reliable and trustworthy sources of information. Many stock research websites are available, but the ones we’ve reviewed come highly vetted.

    Morningstar is a trusted source for stock analysis and provides up-to-date market data and reports. Yahoo Finance is also an excellent source for real-time market data, including stock news and detailed financial metrics. 

    Seeking Alpha Premium offers deep dives into individual stocks and portfolios, giving investors access to professional research. Lastly, The Motley Fool provides a wide variety of services, from personal advice to analysis from leading financial experts. 

    With the right tools and guidance, you’ll be able to make sound investments for your portfolio.

  • FTC Orders Mastercard to Stop ‘Illegal Business Tactics’

    FTC Orders Mastercard to Stop ‘Illegal Business Tactics’

    The Federal Trade Commission has ordered Mastercard to stop its ‘illegal business tactics’ in an effort to level the debit card payment field.

    Debit cards are increasing in popularity, but Mastercard has unfairly dominated the industry. The 2010 Dodd-Frank Act known includes a provision known as the Durbin Amendment. The Durbin Agreement “required banks to enable at least two unaffiliated networks on every debit card, thereby giving merchants a choice of which network to use for a given debit transaction.”

    According to the FTC, Mastercard flouted “the law by setting policies to block merchants from routing ecommerce transactions using Mastercard-branded debit cards saved in ewallets to alternative payment card networks, including networks that may charge lower fees than Mastercard.”

    As a result, the FTC is ordering Mastercard to provide competing networks with the customer data they need to be able to process debit card payments.

    “This is a victory for consumers and the merchants who rely on debit card payments to operate their businesses,” said Holly Vedova, Director of the FTC’s Bureau of Competition. “Congress directed the FTC to enforce this part of the Dodd-Frank Act and prevent precisely this kind of illegal behavior. We take this responsibility seriously, as demonstrated by our action today.”

  • Microsoft and London Stock Exchange Group Form Strategic Partnership

    Microsoft and London Stock Exchange Group Form Strategic Partnership

    Microsoft will purchase a 4% equity stake in the London Stock Exchange Group (LSEG), forming a 10-year cloud partnership.

    The financial sector is an increasingly important one for cloud providers, with all of the major cloud providers vying for partnerships in the industry. Microsoft has scored a major one, forming a 10-year strategic partnership with the LSEG, one that will see the Redmond-based company take a 4% equity stake.

    In exchange, the LSEG will migrate its data to Microsoft Azure and will use Microsoft Azure, AI, and Microsoft Teams to build its next-generation solutions. The deal will also see Scott Guthrie, Microsoft’s Executive Vice President, Cloud and AI Group, appointed as a non-executive director of LSEG.

    “This strategic partnership is a significant milestone on LSEG’s journey towards becoming the leading global financial markets infrastructure and data business, and will transform the experience for our customers,” said David Schwimmer, CEO of LSEG.

    “Bringing together our leading data sets, analytics, and global customer base with Microsoft’s comprehensive and trusted cloud services and global reach creates attractive revenue growth opportunities for both companies.

    “We are delighted to welcome Microsoft as a shareholder. We believe our partnership with Microsoft will transform the way our customers discover, analyse, and trade securities around the world, and create substantial value over time. We look forward to delivering on that potential.”

    The two companies will also explore other opportunities to integrate digital market infrastructure with cloud technology.

    “Advances in the cloud and AI will fundamentally transform how financial institutions research, interact, and transact across asset classes, and adapt to changing market conditions,” said Satya Nadella, Microsoft CEO.

    “Our partnership will bring together the industry leadership of the London Stock Exchange Group with the trust and breadth of the Microsoft Cloud — spanning Azure, AI, and Teams — to build next-generation services that will empower our customers to generate business insights, automate complex and time-consuming processes, and ultimately, do more with less.”

  • How Crypto Has Changed How We View Money

    How Crypto Has Changed How We View Money

    The rise of cryptocurrencies has begun to change how people view money and how it works for their needs. As the internet develops into the metaverse, people need new ways to spend and engage with money and digital currencies. As this form of currency becomes more popular, the uses and value of crypto have been changing and developing to suit the possible items that you can buy with this form of money. This article looks at how crypto has begun to change the way that people view and understand money.

    Solving issues of trust

    Traditional banking systems and means of financial transfer require you to know and trust those you interact with. Crypto requires that you trust the systems and security that blockchain provides instead. As long as you understand cryptography and the blockchain that underpins cryptocurrencies, you are a great deal safer making and accepting payments than you would be using any other systems of payment and don’t have to trust anyone.

     The un-bankable now have access

    There are so many people around the globe, especially in underdeveloped areas of the globe where large numbers of unbanked and un-bankable people remain. No longer do you need to have a bank account or jump through the hoops required to open one to have access to either buy things online or invest in international finance. Crypto has made access a reality for millions, and as long as they have the tech and the know-how, they, too, can enter the international financial playing field.

    Massive saved transaction costs

    The peer-to-peer system of crypto allows for fewer fees. There is no central bank nor a go-between credit card provider that is able to charge additional service or handling fees. As soon as the handling fees are reduced and removed, the entire transaction is cheaper. Many more transactions can also be completed for a fraction of the costs associated with payments via credit cards and debit cards.

    Highlighted the real costs of digital assets

    The ability to use crypto to buy digital assets and those aspects of online and virtual gameplay that are required in the games we play has become a major aspect of the time people spend on the internet. It is important to have access to the information and updates that are provided by a business like OKX which provides a market watch for a crypto platform like Ethereum and the Ether currency, which is widely used in games and online entertainment. The use of cryptos that have real-life value and that can be used to buy digital and virtual assets has shown that the time people spend online and the games they play have a lot more value to people than ever before. The rise of cryptocurrencies has changed how people view money and what money means to them in a digital world. As discussed above, the aspects of cryptocurrency and digital money have changed the most in the digital world. In general, it is all about the value assigned to the various types and forms of money that we use and need to make positive additions to our lives on the internet and in the metaverse.