Showdown of Financial Institutions for Faster Business Decisions and Enhanced Efficiencies

Organizations of almost all types are somehow attracted by the promises of banking and financial activities and their overall framework. In fact, it is the backbone of the organizations that are intended to foster their initiatives through their keen insights and financial assistance. All successful organization whether nation or international are backed by the deep grip of such financial institutions. Latest trends in business scenarios and revolutionary technology outcome are all gaining endorsement from such authorities. Unquestionably, hyper-pacing improvement and global trade practices are completely dependent on the promises of banking technology and financial sector.

Financial institutions are also keen to mobilize economies and therefore allowing entrepreneurs to take initiatives. They are advancing their spectrum and embracing advanced technologies (insurance, asset management, fund flow, debt financing, etc.) to offer 360 degree assistance to start-ups, SMEs and established business houses. In addition, they are looking for customized solutions in order to play an increasingly significant role in the implementation of efficient technologies/approaches for the emerging companies. It certainly helps them to have support and provide ability to expand in future generations. Measurable fiscal steps taken by the authorities can easily block the looming crisis and offer a key success factor that is necessary for future investments.

Moreover, banking and fiscal ratios have recently depicted that global businesses are taking centre stage in technology evaluation, intelligence-gathering appliance and advancement. Business owners are re-structuring their infrastructures and technology platforms in order to meet the demands and exceed the customer’s expectations. And all such initiatives need consistent and lasting support of proactive and dynamic fiscal bodies. This is also a factor, why most of the financial institutions are largely focusing on the key eminent aspects including, but not limited to,

  • Equipment Finance & Leasing
  • Risk-mitigation techniques
  • Vendor Finance
  • Insurance Technology Solutions
  • Debt Financing
  • Asset Management
  • Working Capital Finance
  • Financial services technology
  • Leveraged Finance
  • Venture Capital & Private Equity

However, these set of initiatives are not only considered by public sector banks, but private financial institutions are also charging up and beefing up their practices to facilitate businesses. They are prototyping new services and embarking on the reliable internet banking environment that dramatically encourage SMEs to have multiple products from automobile loans to personal loans.

Moreover, these institutions are also acting as financial advisors to help in implementing mega budget projects. They review proven alternative fiscal solutions, risk-mitigation techniques, and financial services technologies as well as recommend the best solutions that help organizations to escalate in global sphere of excellence. In essence, all the aforementioned measures by fiscal institutions enable smarter, faster decisions that ultimately maximize efficiency as well as capacity.

Leadership, Financial Institutions and Awareness

The economy is taking a nose dive most of the banking and financial institutions are unaware of the massive opportunity available. Though financial success has to do with being at the right time and in the right place one has to also be aware that it is the right time and the right place.

Banks and other institutions are not aware that they are in position to blast off like a rocket. To exercise this type of leadership it will take guts and insight to the overall effect the economy is having on everyday people.

In the midst of uncertain times, where the economy is tanking on most fronts, opportunity is ringing loudly and yet it is not being heard. What am I taking about? I am talking about leadership and awareness.

Credit is being tightened up, people are upside down on their homes, and oil is starting to restrict mobility of most Americans. Yet the win win attitude has not come forth from the financial sectors. They are just worried how they will come out of this economic mess. Everyone affected by this downturn is worried about the same thing.

Being an optimist I see the most incredible opportunity for these institutions. The opportunity is to help families and small businesses figure out what they need to do to weather this economic storm. Let us look at some background then I can take you through the opportunity portion of this leadership idea.

During the last prosperous movement in the markets and housing industries from the mid 1990’s up to around the summer of 2006, many things have come to past. More people got into homes, started new business, had job stability, and people were filling up their 401Ks and IRAs. Money was easy to find, private investors had seen little risk even in the sub prime markets.

Life was good. Our banking institutions were our financial partners for these new homes or new business etc. But, when things go south, where are these partners? They were readily available to finance people when things are going well, but how about when things are not going well? The bean counters are now abandoning the very source of their prior prosperity and that is the very people they originally financed.

When this occurs, social responsibility is out the window. Oh, yes they may have some projects to help rebuild some areas or give to a charity. They now see many savings accounts start to dwindle, foreclosures start to increase and new businesses close down. Yet let us take a closer look at the core of this dilemma.

The core of this is people. People who may have hit on hard times, maybe just need more cash to pay for the elevated prices on food, utilities and gas for the family car. The families affected have solutions that may be limited by what they already know. Families may take the route of drawing down their savings accounts, 401ks, IRAs or stop any savings altogether.

There are groups out there working on improving family credit worthiness and saving homes from the foreclosure markets, which is a good thing to do. My next question is where are the banking and financial institutions on all this? What are they doing to help their customer base weather the financial uncertainties being faced today?

Let me illustrate the problem especially in the housing market. A banker calls me and says they have a solution to my problem. How can that be? My house is now worth 56% less than what it was in 2006. My estimation is that the housing market will continue to roll back another 10 to 15% over the next 6 months. It will take approximately 7 to 10 years to recover that loss in value and equity. What will they do for me? Another loan maybe based on what?

You see there is no provision for this type of problem. This devaluation happened only once before that I can remember, back in the 1980s. I don’t believe that a provision for such an occurrence has been added to any mortgage contract.

The other situation is the drawing down on savings and other financial instruments. A year ago it use to cost $ 50.00 to commute to work and now it costs $ 150.00. Food prices have been affected as well, my average cost on food was $ 30.00 a week, now the same items cost me $ 48.00 dollars a week.

So if one was saving let us say $ 100.00 per month and placing it toward a child’s future education or toward retirement that discretionary income has been wiped out. Well most financial institutions will leave it at that. The question is why? I will say this it is due to lack of leadership and awareness; they are leaving the future on the table at this point of the game.

The truth is that there are other ways in which any institution can help individuals save money. All that is necessary is the will to do it. It may cost the institution a little bit of money but the relationship and loyalty that will come out of it will be incredible.

What if they called their customer base and:

o Offered a free budget analysis?
o Offered money saving tips?
o Show them areas that can be improved?

How about doing this as a free service? Do this for the client’s personal finances and extend it toward their business?

What effect this would have? First the bank will get more customer loyalty. Second the banks will help the customer know where they are and have a vision of where they want to be. Third it will help the customer become more financially stable. Fourth the financial institution will be able to offer some alternatives to assist in their client’s growth.

It is the personal touch that can show leadership qualities. It raises the awareness of what families are facing now, not tomorrow. You can send out little flyers or even little forms for them to fill out. That is impersonal and usually won’t help anyone with the hit and miss of mailers.

This will open the door of opportunity for clients to save more and have a longer term view. Assist them in confronting their spending behavior.

There are little things that one can do to save bundles of money. So many people have a phone but do they have the right money saving service? Are they watering their lawn too much? Do they leave the lights on in every room? Is the air conditioner set too low? When they shop do they go 5 or 10 miles to save fifty cents on a product?

When they do go shopping, are the routes taken saving gas or wasting it? Some people pass right by the store that they will go to the following day. They should have there shopping list done the night before and just pick up what they need on the way back home.

Are they using energy saving bulbs? Could they refinance their car at a lower rate? Just acting on a half dozen ideas could save them hundreds if not thousands of dollars per year. Do they have stuff around the house that they can donate to a charity and get the tax write off? How about a garage sale on items they don’t even use. Maybe they need to do some home repairs to become more energy efficient? Maybe develop a more aggressive savings plan?

Leadership and awareness in just this industry would then help the everyday consumer head in the right direction. Helping people to face there future optimistically will reward one with loyalty and raise the awareness of a family, business or individual on managing their personal finances. The banks or institutions will become more than just a financial partner. The opportunity is there, I wonder who would take this project to fruition.

Helping people get on the right path, will help them succeed in life. Partners are necessary to make this happen; we can not succeed on our own. Banking and financial institutions can create incredible effects by partnering with the client base.

How easy it would be to execute this plan. Most loan officers in banks know their client base. How simple it would be to offer free services with no commitment to any strategy or recommendation made. It is just a helping hand. How about that for a project name “helping hands” just make an appointment and send someone out to meet clients at their home or at the bank and make recommendations. The public relations value alone would be incredible.

Credit Debt Fighters – Tips to Gain Leverage Over Financial Institutions

For many years, credit card companies and the financial institutions were earning profits by issuing the unsecured debts to numerous consumers. They advertise in such a way that people are attracted towards the new products and choose these products without searching for relevant information about them.

Although credit cards are very useful consumer products, they are good only for those who want use them on constructive things like the internet and business payment. Those people who used credit cards only for shopping and unnecessary purchasing, they always suffered at the end. The markup ratio is an unsecured item, is very high, and in addition to different charges the debt becomes massive in no time.

Although people used credit cards on their own, the reality is that the credit card companies and financial institutions have many things hidden in the bills, which they do not tell the consumers at the time when they apply for any product. This is to make their sales pitch, and in other words, they deceived people by not telling them the truth. Now, it is time to gain leverage over credit card companies and financial institutions. The only way is to stop paying to those institutions, which are making high profits from those consumers who are already in debt.

Debt relief companies are working in this aspect and getting people out of their debts by negotiating with financial institutions. It is now time to fight against financial institutions and the way to gain leverage is to stop paying from today. All you pay in shape on minimum amounts goes straightly in the profit accounts of the banks and only 5% or 10% is deducted from your principle amount, which is also taken back in the shape of charges. When you will stop paying, the credit card company will contact you and will try to make a deal with you. Now, it is up to you how effective the deal you make is, and how much reduction you could take by negotiations.

Debt settlement companies are working to ease the process of negotiation. Those people who apply for negotiation through these companies can get maximum reduction due to their expert personals.