New emerging opportunities in BFSI

Posted on March 25, 2019Categories Global finance   Leave a comment on New emerging opportunities in BFSI

“The science of today is the technology of tomorrow”

– Edward Teller

The world is waking up to explore the vast possibilities of emerging technologies. Artificial Intelligence, Robotics, Blockchain and Internet of things (IOT) are creating a big buzz in the global markets. They are attracting Billions of Dollars of Private Equity funding. These technologies are creating brand new markets which did not exist earlier.

When it comes to such digital transformations, sectors like Banking, Financial Services, Insurance (BFSI) and Telecom, are on a path to become the growth engines of our economy. Industrial giants are making big changes internally to adapt themselves to these changes, these technologies, which can make them more competitive globally. Let’s take an example of a company to understand this better.

IBM, nicknamed the “Big Blue” is one of the world’s largest employers, with most of them from India. When it comes to adopting new technologies, IBM believes that a majority of their growth will come from the BFSI sector.

They recently organized a two-day “The THINK Forum” where all senior IBM officials and key business leaders were present to discuss the future of business with these new technologies. In order to prepare a workforce that is well equipped to handle any new tech, IBM is planning to build skill development centers across the country.

“IBM is also in talks with NITI Aayog and other learning and development organizations to understand what platform we can put in place to skill more people” – Lula Mohanty, IBM Global Business Services.

Present in India since 1951, IBM India has now expanded its operations with regional headquarters in Bengaluru and offices across 20 cities of the country.

With the aim of helping Indian enterprises deliver next-generation consumer experiences, a global consulting agency known as Bluewolf, an IBM company, also announced a new practice in the country. They introduced “Salesforce”, a leader in the customer relationship management (CRM) solutions.

IBM now manages 100-200 customers for the Salesforce practice in the country. It expects the number to grow rapidly in the coming years as new enterprises (specially Banks) and government agencies depend heavily on them for digital transformation initiatives.

“India is one of the highest growth markets for Salesforce,”

says Sunil Jose, Senior Vice President, Salesforce India.

IBM is also looking to double its investments in the country. They are planning to hire 1,000 employees in Hyderabad alone by 2020. They already have a strong base in Bengaluru, Hyderabad, Mumbai, and Delhi. India is the market that is continuously growing and adding profits for the company as the young recruits can easily be trained on new technology.

The (CRM) solutions provider (Salesforce) also has a “Centre of Excellence” in Hyderabad. This is the first major center for the cloud software company in India.

A major reason for IBM to be extremely bullish about the Indian sub-continent is the large number of Fintech startups thriving here. These companies are offering many banking and financial services to people who previously had no access to banks and NBFCs. With a lot of citizens now having access to these services, the India BFSI sector is poised to become the largest in the World.

This is a major reason why the BFSI Industry continues to prosper even in a tough economy. Companies like IBM are bullish and are offering attractive career options for finance executives.

So make hay while the Sun shines, with BSE Institute Limited. We offer a  comprehensive program to help you gain an understanding of the BFSI industry. Our GFMP program trains a candidate to not only meet be knowledgeable about the industry, but it also helps them build the skills the industry needs immediately.

 

Digital Wealth Management

Posted on March 18, 2019Categories Short term programmes   Leave a comment on Digital Wealth Management

“If you can imagine it, you can build it.”

– Albert Einstein

Artificial Intelligence (AI) is not a new technology!! It has been around for quite sometime now. Nowadays we don’t talk about electricity, as it’s a very common part of our life.

This is where AI is heading in the coming years. It’s projected to have a huge impact on human life. Most industries and sectors are changing in order to adopt AI, which promises to transform their businesses – which could be obsolete without AI.

Why choose AI?

Wealth Management and advisory businesses have transformed using Cognitive technologies. Technically speaking, these firms had no choice. They have to be well ahead of competition, in order to serve tech-savvy millennials, support investor expectations, reduce operational costs and lower fees plan. This evolution happened due to the rise of high tech low budget startups.

Here’s where wealth managers understood the true potential and advantages of AI. They came to know that with AI, one can build customized models to classify each investor to a very specific class depending upon his risk taking ability, returns expected, goals, etc. This is highly customized for investors with similar profiles and goals.

AI models can do the same work an investment adviser does, but in an efficient and a scalable way. This will enable firms to attract new investors, retain their existing investors, reduce operational costs and stay ahead of the competition. These models can also help re-balance portfolios with changing global markets and financial goals – with discipline and without emotional handicaps.

Use of Robo Advisory:

Wealth management firms are now actively adopting AI models for enforcing regulatory compliance and managing risks effectively.

Several firms have developed Robo Advisors to facilitate basic advisory functions such as supporting investors by fulfilling their basic but most frequent needs. The Robo Advisors are built on self-learning algorithms based on deep neural networks. They are specifically designed to provide more services, which an investment manager would take very long to do. They would provide services like automatic portfolio re-balancing, asset class switching, portfolio risk management and fine-tuning of other aspects of investment strategies on a real time basis.

The Robo Advisors are connected to a virtual assistant that can make the client’s investment journey smoother, with less uncertainty. The way we use smart voice assistants such as Siri, Alexa and Google to solve our queries in our day to day life, we could soon have a smart equity/ mutual fund advisor. We would probably do most of our investment strategizing with these robo-advisers. For example, The robo advisor will show the returns of our portfolio to a specific client for that particular day, month or a full year. It will also display the risk profile over a time period, showing tax implications from trading activities and could place an order to buy or sell, solely on the basis of a voice command.

Conclusion:

Adoption of AI and Cognitive Technologies in the wealth advisory sector is inevitable. This will grow exponentially while allowing BFSI companies to unlock insights and bring efficiency. Firms are now moving from “Customer Focus” to “Consumer Science” and AI would be an important enabler for it. As they say, the next World War between nations would be won with the best AI capabilities.

If one wants to be a part of the evolving wealth management sector, you should always opt for BSE Institute, a 100% subsidiary of BSE. This institute has a short-term online course on Introduction to Wealth Management, specifically designed for students and professionals who wish to learn about wealth management.

 

Australia to become cashless by 2020

Posted on March 11, 2019Categories MBA   Leave a comment on Australia to become cashless by 2020

Cash is on its way to become a collector’s item. This will be because of the ease of the tap-and-go payment systems and the online payment systems which are being used extensively across the globe.

In late 2016, Denmark’s government decided to discontinue the printing of banknotes and proceeded to shut down its last mint. With this, the country silently announced to the world that they are fully embracing cashless transactions.

Around the world, the picture isn’t too different. More than 50% of all Americans carry less than US$20 cash in their wallets. 9% of all Americans are said to have stopped carrying cash. The Reserve Bank of Australia to believes that Australia is at a similar point, with cash set to become a “niche payment”.

Why change to cashless?

In the past nine years in Australia, the share of cash in consumer payments have reduced down to 39% from a high of 70%. This indicates the growth of cashless transactions. A study by MasterCard says that ‘nearly 90% of all Australians will regard your business negatively if you accept only cash as the means of payment.’.

On the other side, Australians think that where cash is risky to hold onto, and it reduces transparency in transactions. Whereas electronic payments can help to promote financial inclusion and boost the economic growth of the country. Alternative payment technologies such as digital wallets (Apple Pay, Android Pay, Samsung Pay), tap and go contactless payments and wearables have now become the popular cashless options for day to day use.

How do cash free customers affect Australian Business.    

As customers are increasingly abandoning cash for digital payments, businesses are also opting the same.

A recent report shows that Australian business receives 46% fewer cash payments than they used to receive in 2010. At this rate, cash receivable will be totally struck out by 2020. The consumers are eagerly switching to online shopping and have pushed online retail sales beyond the $20-billion mark in a new record.

The new businesses are now choosing online and alternative payment methods more seamlessly in the grand scheme of things. This means that to be on top of your competition, having the latest digital payment system is a must! Starting from smart checkout design to secure payment processing. With digital payments having a direct impact on sales, revenue, consumer loyalty and profitability, cashless transactions are bound to be the most important business change in the coming decade.

Cashless transformations of the country has now become a priority for many Governments. Australia is known to be a hub for adopting such innovative steps for the growth of their industry, economy and GDP. It has proven to be one of the best destinations for any individual or business that hopes to build a brand new industry or who opts to work on something new. Australia is a great place for anyone who wishes to work on building promoting innovative businesses and technology.

If one wishes, to be a part of this environment, BSE Institute Limited helps you to study at one of the leading institutions of the World in Australia and gain access here. The Western Sydney University offers its most sought course – the Master’s of Business Administration (MBA), which gives students a great platform to build and launch their international finance career..

 

All about Annual Reports

Posted on March 4, 2019Categories Short term programmes   Leave a comment on All about Annual Reports

Everyone must be familiar with the term mentioned above. We have received annual reports right from our childhood stating overall grades of the particular year. As we grow up people tend to keep an annual report stating the income and expenses of a particular year. Large companies and public corporations publish an annual report at the end of the year to describe the company’s operations and financial conditions to its shareholders. Annual reports provide in-depth information which potential investors want to know. These reports should be easy to find on a company’s website or through a Google search.

What is an Annual Report?

An annual report is a publication which public corporations must provide annually to all its shareholders describing their operations and financial condition. The front part of report usually starts with colorful graphics and photos which is followed by a narrative explanation of the company’s activities. The back of the report depicts detailed financial and operational data.

Annual Reports were not compulsory until legislation was enacted after the stock market crash of 1920. After that, the annual report became a permanent component of financial reporting. The annual report is a detailed report provided by public companies to reveal their corporate activities over the past year. The report is typically issued to all the shareholders and other stakeholders who use it to analyze the firm’s financial performance for the year. Typically, an annual report contains the following sections:

  • General corporate information
  • Operating and financial highlights
  • Letter to the shareholders from the CEO
  • Narrative text, graphics and photos
  • Management’s discussion and analysis (MD&A)
  • Financial statements, including the balance sheet, income statement and cash flow statement
  • Notes to the financial statements
  • Auditor’s report
  • Summary of financial data
  • Accounting policies

Current and future investors, employees, creditors, analysts and any other interested party will analyze a company using this annual report. The annual report contains information on the company’s financial position that can be used to measure the following:

  • A company’s ability to service its debts as they come due,
  • Profit or loss statement, 
  • The company’s growth over a number of years,
  • Return on capital employed,
  • The proportion of operating expenses to revenue generated,

Example

In the case of the annual report of mutual fund sheet:

All mutual funds that are registered with the SEBI are required to send a full report to all it’s shareholders every year. The report shows how well the fund fared over the particular fiscal year. Information which can be found in the annual report of Mutual Fund sheet includes:

1.Table, chart or graph of holdings by category (e.g., type of security, industry sector etc)

2.Audited financial statements, including a complete or summary (top 50) list of holdings

3.Condensed financial statements

4.Table showing the fund’s returns for 1-, 5- and 10-year periods

5.Management’s discussion of fund performance

6.Management information about directors and officers, such as name, age and tenure

7.Remuneration or compensation paid to directors, officers and others

Conclusion

Understanding and analyzing these annual reports can be a challenging task for many of us, especially if we are non-finance professionals. So if you are interested in learning more about annual reports you can invest your time with BSE Institute Limited. We offer various short-term online courses for you at bsevarsity.com. A simple course on How to read an Annual Report will give you sufficient practical knowledge to read and understand an Annual Report in just 4 sessions!!