The Reality Gap – Part 5 Finance Industry – Truth and Fiction

The United States’ finance industry has taken a real beating in the past three years. Since the beginning of a recent, severe recession starting in late 2008, no industry has been under more scrutiny than finance. Countless executives have lost their jobs. Huge banks have gone under. And, most importantly, average Americans have seen their wealth dwindle as the economy has slowed to a crawl. Millions have been left wondering what happened, and why. The answer, though it may seem complicated, comes down to a few basic economic principles. These principles reveal the truth about what we think we know, and what actually occurs in the finance industry.

The first is a principle called “adverse selection”. According to economic theorists, the riskiest, most dangerous candidates in finance are also most likely to get a government backing, simply because they seek that backing with more effort. As an example, think of the FDIC. Currently, this government agency insures all depositors’ money in an FDIC backed bank up to $250,000. The Wall Street giants you most often hear about in the news are all FDIC backed. So, no matter what happens to the bank itself, its employees will have no one to answer to even if the bank goes under. You’ll never hear this fact in ads for big banks on CNBC or CNN. Since the recession started, the banks have put a large focus on “responsibility” in their advertising and public relations campaigns. They have been desperately trying to convince the American public that they can be trusted. But, by seeking and accepting the FDIC’s backing, these same banks demonstrate that they don’t trust in their own responsibility enough to go without a safety net.

The other economic effect of the governmental safety net on the finance industry is what is known as “moral hazard”. This principle states that when an organization doesn’t have incentive to act responsibly, they are bound to take on more risk. This lack of incentive for responsibility doesn’t just come from the government, though. When the risky investments pan out for a big bank, its employees, investors, and even depositors are all happy. The higher the return on assets and equity, the more successful a bank is considered to be. This explains why, in the early years of the new millennium, the finance industry was so willing to give out risky home loans. They could charge higher interest rates, and in effect rake in higher profits. This, in combination with the government safety net discussed in the above paragraph, removed almost all incentives for financial institutions to act responsibly. As long as their balance sheets looked good, they were easily to convince investors and the public at large of a false reality.

Government, of course, does realize that these problems exist, and has come at them head on. Today, banks are charted, they must hold certain percentages of excess reserves and capital, and their asset holdings are severely restricted. But when the object is as strong as money, the financial industry will continue to find ways to increase risk in the hopes of increasing reward. And though new public relations efforts widen the gap between financial images and truth, the game of cat and mouse continues.

About the Writer
Over the last 30 years I have worked with over 50 organisations, such as British Telecom (Global Telecoms), Inmarsat (Global satellite operator), Ciena Corporation (Global optical networking manufacturer), Bovis (Global Construction), John Laign (International Construction and Facilites ), NSPCC (a National Children’s Charity) to name a few.

My experience is complemented by three degrees, the first a BSc hons in Construction Management, the second an MBA from Henley Business School and a recent MSc from Portsmouth Business School in Organisational Development and Neuro linguistic Technologies.

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Using Finance Industry Recruiters to Find Your Ideal Executive Position

If you are an executive in the finance industry then you have probably worked with an executive search firm at some point. Finance industry recruiters work specifically with companies needing to hire executives in the finance industry. They screen candidates ahead of time so that the business doing the hiring can focus on detailed interviewing. Finance industry recruiters have specialized knowledge of the best companies and positions in the field.

It’s quite common for recruiters to approach executives who are already employed, hoping to lure them into a better position. However, with the finance industry having taken a hit in the past few years due to the economy, there are also many unemployed executives looking for work.

What qualifications are recruiters most interested in as far as the current business climate is concerned? You might be surprised. While technical skills are very important in any field, recruiters are focused on finding executives who can manage people and work well with many different personalities. Interpersonal skills are at the top of the list for that reason. Company employees are sensitive to new management that isn’t able to merge with the business atmosphere.

Other things recruiters are looking for are:

• Leadership
Finance is a volatile industry. Executives need to be confident leaders, willing to make essential decisions without hesitation. Yet they also need to be able to work with a team. It’s a delicate balance.

• Savvy
Financial services recruiters monitor social media sites as part of their searching process. It’s essential for executives to have a social media presence. That means updating your profile on a regular basis, and joining online industry groups and organizations.

• Ethics
Unfortunately lack of ethics has proven to be the downfall for many executives. Companies need to be assured that their executives are not going to do anything that will end up embarrassing them and their shareholders.

There are things you can do to increase your chances of finding a position through a recruiter.

1. Ask contacts for an introduction. Busy recruiters may not notice you if you don’t make the first move.
2. When you do make an appointment to speak, make it a face-to-face meeting, not a phone call. You want them to remember you.
3. Prove yourself to be a good communicator, but don’t over share. This isn’t your buddy – whatever you say can be shared with a future employer.
4. Never go over the recruiter’s head. Always work through the recruiter or you are going to end up with a terrible reputation.
5. Stay in contact even when you have a position. You will be more successful with a long-term relationship than having to start at square one.

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How to Get Into and Why You Should Work in the Finance Industry

Many graduates end up going into banking and receiving competitive salaries, therefore this is a very popular role within the Financial industry. However, this means that certain areas of the finance industry are very competitive and there are a large amount of candidates going for similar roles. Despite the large amount of competition, once you have broken into this industry you will start to see the rewards. If you work hard enough, the financial rewards can be substantial.

Finance is the backbone of any successful business and managers value its maintenance and organisation as a highly important part of their business. Therefore, in tough financial times, this is an industry which is essential and jobs within this industry are still highly valued and key to keeping a business alive.

Some of the roles that are more popular in the finance industry include an accountant, stock broker, compliance manager, business analyst, credit controller and accounting technician. One of the most popular roles in the finance industry is an accountant. The role of an accountant is to protect and generate information about financial records. The must give trusted advice to their clients in order to keep their finances in order and keep them in the right direction.

Any candidate wanting to break into this industry must expect to study and learn a lot, regardless of whether they choose to go to university. For those who do not want to go to university there are lots of professional qualifications that are essential to qualifying for any role. Because there are so many applications within the financial industry, some employers are starting to favour graduates. Having a relevant qualification shows that you are interested and dedicated to working in the industry and will give you a better chance of getting the role you desire.

If you are thinking of pursuing a career in the Finance industry then you need to think about whether you possess the following skills. Most employees working in this industry will have strong IT skills and a natural sense of commercial awareness. You will need a great deal of motivation and must be able to be independent. Most employers will look for flawless analytical skills as well as strong problem solving skills. Lastly, good communication and presentation skills are important to succeeding in the finance industry.

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Will Apple Ever Make It to the Finance Industry?

PayPal on Apple iCloud Issues

Will Apple ever make it to the Finance Industry after PayPal showed negative reactions to Apple launching their Mobile Payment Service Apple Pay?

PayPal publicly questioned Apple’s credibility in getting into the Financial Industry when it announced recently in the New York Times its open contempt on Apple’s new technology. Putting much emphasis on Apple’s recent issue over iCloud, PayPal reminded the public when celebrities’ intimate photos suddenly went into circulation, throwing doubts on Apple’s credibility to secure financial accounts. The Ad accompanying such remark even stated, “We want our money, more than our selfies!”

The Technology to Replace Apple Pay Wallet

After the success of the Apple Pay, Apple is now launching another technology to upgrade Wallet features. This time, cash transactions are quick and made easy through a phone built-in NFC feature. NFC is a sensor strip built into every iPhone 6 and iPhone 6 Plus phones. This strip is found at the top of the phone and is activated once you hold your phone over a sensor. By simply touching the ID for authentication, transaction is done. With the new Apple invention, cash transactions are more quick and easy. For security of transactions, credit cards which appear on your Passbook are secured in an enclave at the phone as the credit card number is never stored. This makes your card number isolated from your transaction as a security code is sent over the wire. So if you lost your iPhone, it can easily be disabled. With the NPC sensor strip, it can turn your iPhone into debit and credit cards for you. You can use it for online transactions without filling up long forms. Just one tap is all you need. Apple Pay also works with Apple Watch but Apple Company still had to work out for more details. Some third Party Apps are also integrated in the new invention paving way for more apps developers in the future.

Apple on the iCloud Breach Issue

After hours of investigation into Apple Security System, Apple CEO, Tim Cook reaffirmed its vehement denial to the allegation that there is a breach in their iCloud Security Feature. According to the result of the conducted investigation, Apple did not find any reason to support Hollywood Celebrity, Jennifer Lawrence’s cries for breach security after nude photos went into circulation in the internet. Other celebrities involved were Selena Gomez, Mary Elizabeth Winstead, Kate Upton and Kirsten Dunst.

Apple insisted that investigation results showed compromises on user accounts, passwords and security questions. In short, they were done by hackers and not a breach issue on the part of the Company. Apple CEO further advised their patrons to use double security measures. Apple also added more security features to avoid compromises in their product and customers security by sending out alert emails every time they log in into their iCloud using web browsers. This does not exclude even those who regularly log in into their iCloud. However, this will only be temporary as Apple works to find more ways to improve their security against nude-crashes. Apple also got some plans to improve iCloud security by sending out emails and push notifications to iTunes users in cases of any attempts seen to change their passwords, restore iCloud data to another device, or log into iTunes for the first time.

PayPal Irrelevant Issue Raises Doubts on Apple Security

Now that Apple had announced the entry of the Apple Pay, with more sensible features attuned to secure data of its users while doing transaction more easier, this could provide them a portal to the Finance Industry. But after the iCloud issue, which proves to be a drawback to Apple Security Measures, will joining the Finance Industry be a good move for Apple? Will it prove to be their downfall or their breakthrough to the Finance Industry?

With these issues to raise, PayPal, the largest online banking showed reluctance if not dismayed on Apple’s decision to go into Finance Industry. What with the large portion of their market brought to them by Apple?

After celebrities nude photos goes into circulation over the web, PayPal’s negative comment on Apple iCloud Security take its drawback as people started questioning and pointing on its effects on PayPal. The allegation against Apple iCloud does not limit the people assumptions that if it happens to Apple, there is a great possibility that the same thing can happen to PayPal any time. This assumption as to PayPal’s loophole in their security was finally backed up by a blog posed by a 17-year old kid from Melbourne, Australia. This post is relevant and probably the very reason why Apple commanded much attention from PayPal and other online financial and banking institutions. If PayPal is getting restless over transactions involving iPhone, how would it react if hackers would finally treat PayPal to the same extent that they treated Apple?

Apple had indeed shown their great expertise in dealing with such crisis. Once again, they prove to their customers and competitors that they are always ready and capable to develop their products and services. They are giving much focus on the provision of full security, both to their products and customers or users. It is but natural for a corporation as big and as great as Apple, to be facing such issues. But what is important is the fact that they never stop in looking for great innovations for the improvement of every product feature.

The battle between Apple and eBay may take its final course in the long run, when people themselves will watch and measure its final outcome. However, being in the same industry where a company’s credibility is at stake over finances, it’s better to collaborate in providing solutions to any loophole in the technology. Conquering the Finance Industry is still a long run for Apple but with the introduction of the new-featured iPay Phone, will they be able to make it or break it in the Finance Industry? Apple’s entry to the finance Industry will surely bring various reactions on everyone, including existing and potential competitors.

The Issue oni Cloud Security is just a gateway for Apple to consider joining a new Industry but issues such as this one surely leaves a lot to learn and to develop. Finances and Technology always comes hand-in-hand. When you got one in your hand, it takes one great decision to hold on to the other!

It is more likely that Apple will survive the recent hit on their security issue regarding iCloud after Hollywood celebrities went gaga over ‘selfies nudies’. Know how they will be getting over it and develop the use of their technology to regain back public trust and confidence. Moreover to that, Apple is gaining entry to the Finance Industry. Will this be a breakthrough or just another high-risk move to improve current business standing?

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What Are the Changing Trends in the Canadian Lease Financing Industry?

The Canadian Finance and Leasing Industry is a major driver in the Canadian economy. Let us look at some of the changing trends in the industry and how they might affect Canadian business owners seeking long term equipment financing.

First of all the lessor and lender borrower base has changed significantly over the years. Canadian businesses should be aware that there are over 190 + lease and asset based lenders in Canada. That’s a lot to choose from. Our point is simply that the well informed business owner should be aware of the breadth of lender in the equipment financing marketplace, both geographically and by financing ‘ niche ‘.

Whether a customer wishes to finance machinery, equipment of vehicles there is a much broader range of financing choice for the consumer – probably more so in recent years given that many specialty type lenders have emerged in different market segments. There is a large breadth of size of lenders/lessors as a key trend in the industry has been merger and acquisitions. A number of major M & A deals have been executed in the Canadian industry. We hasten to add it might be still a little early to determine whether these alliances have been successful and how they will affect the Canadian business borrower. Many firms have learned to ‘stick to their knitting ‘and have returned to their core business.

Another significant trend is the fact that the average Canadian business borrower is more informed and selective when choosing a financing partner. Customers are more knowledgeable about key areas such as lease benefits, taxation advantages, and their right and ability to negotiate special lese terms and options. This trend has of course forced the industry as a whole to be more competitive and customer focused.

Another major trend in the industry, which has been a boon to the Canadian business borrower, is simply the additional financing products available. Leases with tax oriented advantages are available, and many borrowers in areas such as technology and heavy equipment have migrated toward the use of operating leases. We feel different lease products will continue to evolve. Another major trend in leasing is the ‘full service’ type lease where a number of different products such as service, maintenance, and insurance are bundled into the transaction.

A trend that continues to be in force is the emergence of a stronger base of consumer leasing, particularly in the vehicle industry. Most of us as keenly aware that over 50% of autos purchased are financed.

We often hear about the debate of ‘Does Size Count ‘. The trend towards larger leasing companies in some key market areas has made rates and terms and structures exceptionally attractive to the Canadian business borrower.

Specialization is one of the strongest trends in the industry. It therefore behooves the borrower to understand who are the specialists in the market segment in which they require financing.

Despite a proliferation of online leasing portals, applications, etc. a continued trend continues to be customer service and flexibility and relationship building – that being the focus of many of Canada’s more successful lessors.

In conclusion, there are a number of changing trends in the Canadian lease equipment financing industry. These trends have driven creativity and service, providing a generally positive environment for the Canadian business lessee.

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Cheap Insurance Companies and Their Services

To some people, cheap insurance companies are merely a myth, to others a reality they do not ever want to acknowledge, but one fact remains the same. Cheap insurance businesses are a commodity most people do not avail for different reasons. Some are scared that they might end up paying more than advertised others just do not want the extra expense.

It is true that there are quite a lot of insurance businesses out there on the internet that are not cheap at all, as well as insurance companies that are cheap and offer the best service. Then there are also cheap insurance businesses that are not just cheap with awful service (these are the ones you would want to avoid). If you want to save money while spending yet at the same time get the best service you will have to do some search into various cheap insurance companies.

There are two ways to find a good insurance company; online and by roaming around, but there is only one way to get a cheap insurance from a company i. E. Search the internet. The reason is simple, where an insurance company caters to clients across the state or just in your area, an online insurance company caters to people across America, and more business means better competition, which ultimately leads to cheaper and lower rates.

Keeping the above equation I know you will agree that the best deals are to be found online, however if you up and want to do business with the most advertised of insurance dealers, you are surely in for a heart-break. These companies in order to compensate for the high costs of advertisements offer some pretty high rates to their customers.

If you truly are looking for a cheap and reliable rate for your insurance, it would be wise for you go for the moderate kind of insurance businesses. These companies could be anywhere after the first ten or so search results. You can also choose to narrow down your results to your city, state, or even by using your zip code if you are searching for a company locally.

Remember to check on the bare minimum of insurance prerequisite in your state and then go forth with negotiating the essentials before negotiating the rates. Almost every state has some sort of bare minimum for their citizens insurance policies these days and it is entirely up to you to convert this slight problem into a blessing that does the most good for you.

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All About Insurance and How to Find Cheap Insurance

Insurance is very important. The way that insurance works is that a whole lot of people pay a small amount of money into an insurance pool. This pool of money will protect these people against some sort of risk, such as the risk of your car getting stolen. Because many people pay money into the pool, the pool becomes rich and full of money. Then if one person who has paid money into the pool gets their car stolen, then the insurance company will give them money out of the pool. The insurance pool can pay out much more money than that individual person had by himself.

The only reason that insurance works is because the problem that is the risk isn’t so big that it happens to everyone. Just think if everyone who invested money into the insurance pool had a car that got stolen, the insurance company wouldn’t be able to pay everyone out lots of money. Insurance companies spend huge amounts of money paying risk analyzers to work out how much risk is in place. They also pay an effective legal team to stipulate good terms and conditions so that clients don’t take advantage of the insurance company by making false claims.

Of course the bigger the company and the more clients it is, the more likely it is to be able to offer cheap insurance to the buyer. The more people that pay money into the pool, the bigger the pool of money becomes.

Well known companies are also able to offer cheap insurance, because they have a far bigger marketing budget, so they can reach more people and potential clients. It s also good to go with a big company, because they are more likely to be able to pay you out. They have a reputation to uphold.

On the other hand, big insurance companies have very good legal teams, so they might have to get out of paying you, by referring to small print in the contract that you may not have seen. So whenever you buy cheap insurance be sure to read the small print.

It is easy to find cheap insurance nowadays. Many companies are offering great deals. And a simple internet search will have you face to face with insurance quotes in no time at all.

Insurance is available in all sorts of areas. You can get insurance for your possessions such as your house, car or boat. You can also get health insurance or travel insurance. Some Insurance companies offer cheaper insurance packages to women. Some health insurance companies will not cover you if you have pre-existing medical conditions. You also get cheap life insurance or funeral plans.

Some people may want to insure their body parts, for example a hand model may insure her hands, because if she no longer has them she cannot work. You can basically find someone to insure you for just about anything. When you make a deal with an insurer, you are basically saying, in exchange for paying you a small fee, you will take financial responsibility for me if the stipulated event occurs.

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Compare Cheap Insurance Quotes – Save Time and Money by Comparing Cheap Insurance Quotes

How does your decision to compare cheap insurance quotes on the internet help you save precious time and money? The insurance market has become so competitive that it is impossible to identify a single insurance company as the best one around. There are many variable factors including the type of insurance that one wants, income and lifestyle of the individual, the asset that one wants to insure and the amount of premium that one is prepared to pay. In such a scenario, one cannot blame an individual for opting to compare cheap insurance quotes instead of entering the confusing world of insurance analysis.

How do you save money when you compare cheap insurance quotes? If you opt for quotes comparison, chances are very high that you will quickly identify the cheapest and most beneficial insurance policy for your life, car, home or any other asset. You will get a clear tabular analysis which will tell you how much one has to pay for each and every policy under consideration. If you do not compare cheap insurance quotes, you will have to prepare a comparative statement manually. This is next to impossible considering the fact that the average individual is rarely, if ever, conversant with how insurance policies work.

Another reason why one should compare cheap insurance quotes is that it helps save a lot of time. Getting quotes online helps you get all the information you want in a jiffy. You need not visit each and every insurance company’s office just to compare cheap insurance quotes. You need to state the amount of coverage you want and the amount of premium that you will have to pay will be flashed on the screen instantly. You can also get quotes through the telephone. In either case, a lot of time and effort shall be saved. If one considers the gas that one saves by avoiding visits to numerous insurance offices, the benefits of these free insurance quotes become even more significant. Never again will you have to take time out of your busy schedule to complete insurance related paper work. The web will help you take care of all that.

It is important to compare insurance quotes before getting signed up with an insurance policy. When you compare insurance quotes you can rest assured you are saving both time and money because you are guaranteed to get the lowest insurance quote.

Given the current recession it is important to make sure to prioritize your money and compare insurance quotes online. A good place to state would be an online website that actually allows you to compare insurance quotes online for free.

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Compare Cheap Insurance Quotes – Save Time and Money by Comparing Cheap Insurance

Before the invention and wide accessibility of the internet, people had to call around to compare cheap insurance quotes. They could spend hours of their lives on the phone only to find out that the best policy for them was the first one they called. They would then have to call the office back and go through the explanation again. Once they did they still had to go down to the local office and sign paper work and make a payment before they were insured.

Thankfully, times have changed and people don’t have to spend hours on the phone just to find the best rate. Logging on and going to your prospective insurance company takes a lot of time too. So how do you compare cheap insurance quotes to get the best deal on your car insurance? Just go to your favorite search engine instead.

By doing a search to compare cheap insurance quotes you will find a list of sites that offer multiple comparisons right on their site. Generally, these sites are not affiliated with any specific insurance company so you can be assured an accurate comparison.

It’s simple to compare cheap insurance quotes this way. All you have to do is input your information one time. Set the restrictions for coverage type and deductibles and hit the compare/search button. Within seconds a listing of all the major insurance companies will be appear on your screen. You can scroll through them and find the one that has the best coverage at the best price for you.

Often these sites will allow you to purchase insurance directly from them and offer discounts for doing so. By comparing cheap insurance quotes on line through one of the sites will save you time and money.

If you prefer spending endless hours on the phone just to get the best rate go right ahead. Using the internet can take the hassle out of buying car insurance. Who needs another headache when all you’re looking for is the best coverage in your price range?

It is important to compare insurance quotes before getting signed up with an insurance policy. When you compare insurance quotes you can rest assured you are saving both time and money because you are guaranteed to get the lowest insurance quote.

Given the current recession it is important to make sure to prioritize your money and compare insurance quotes online. A good place to state would be an online website that actually allows you to compare insurance quotes online for free.

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Comparing Cheap Insurance Quotes – The Best Trade Off Between Premium and Deductible

Shopping in general involves a lot of decision making. You have to be even more careful and use more analysis when buying insurance irrespective of the type of coverage you are looking for. You have to get an affordable deal that offers sufficient coverage. The best way in which you can do this is to collect as many cheap insurance quotes as possible. You can get this job done in no more than half an hour if you use the services of an online provider that gives you a bunch of offers from different insurers for free.

The more difficult part comes next. You will have to compare the different cheap insurance quotes you have obtained. It is essential for you to look for the most affordable of all deals. Apart from analyzing the rates you should check whether the insurance company offers any discounts that you might be eligible for. More importantly, you have to decide on the trade off between the premium and the deductible you will have to pay. Setting these two costs correctly will allow you to save a lot of money and to manage your budget more efficiently.

The premium is basically the fee that you have to pay annually or monthly for the coverage you get. In case you make a claim on your policy and the insurer approves it you will have to pay a deductible. It can be a set sum, but in most cases it is a percentage of the cost of the claim. You should also keep in mind that with health insurance plans the deductible is fixed and has to be paid once a year. Generally, the higher the deductible is the lower the premium is and vice versa.

You can save a lot by increasing your deductible. This is particularly beneficial when you buy auto and home insurance policies since you will have to incur this cost in an event that may never actually happen. At the same time everything is possible. Thus, it is best for you to set a deductible that you can afford to pay it at any time. You have to decide on how much you would want to increase this cost depending on a number of factors.

The main one is the premium. Generally, the experts recommend to any buyer to accept as high premium as they can comfortably afford. You should do some calculations in order to decide how much of your monthly income you can set aside for insurance. At the same time you have to take into account your savings. They will allow you to determine how much you could afford to take out of your pocket if you made a claim today. If this sum is not very large, you may think twice before setting a way too large deductible.

Overall, it is up to you to decide on the best trade off between premium and deductible. This is an individual decision that you have to take when comparing cheap insurance quotes. You have to make your choice by taking into consideration all relevant factors.

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