Showing posts with label global industry down turn. Show all posts
Showing posts with label global industry down turn. Show all posts

Saturday, April 11, 2015

Global Crisis – Threat for Several Financial Institutions

Global crisis had created a threat for several financial institutions during the last few years. A pioneering peer to peer foreign exchange – FX, fintech startup - Kantox which is a platform for businesses, grew 250% in 2014 achieving its biggest transaction earlier, when one of its clients transferred US$29 million through the online platform. What could have been the secret of its success inspite of the uncertainty of global economic?

While the import-export businesses lost faith on traditional banks, Kantox provided an alternative solution in managing foreign exchange risks via a business model which was based on transparency. While businesses were on the lookout for no-banking solutions, this fintech startup became a feasible alternative as an online managing platform as well as a way to reduce costs, making the procedure an easier one.

As per the Co-founder and CEO, Philippe Gelis, the foreign exchange market had a setback from several transparency issues and was in need of urgent restructure. Gelis together with his partner Antonio Rami worked as a team as consultants in Deloitte and planned to develop an alternate option.

Kantox – Tools to Manage Currency Exchanges

Gelis had commented that `the aim was to be trusted as a competitive and transparent platform by financial directors and they wanted to provide them a different option’. The tools were provided by Kantox for the clients to enable them with improvements in managing their currency exchanges as well as consulting services from professionals.

Kantox presently transfer funds to 1,000 clients all across 18 countries in over 25 currencies. Gelis explains that `at the moment, growth is their goal and knowing now the needs of the clients, they have a clearer idea of the market and how to differentiate from their competitors’.

Gelis finds it important to be ambitious and a race for growing up. He states that `when one is immersed in business, they have the feeling that the developing process is long and one would want to grow faster though the process needs time’. Though the fintech space is still in its early development, there are several potential clients for new fintech startup and new business options like Kantox who are striving to compete with banks in foreign currency exchange.

Driving Down Cost/Administration Time

Kantox originated out of the idea of dis-intermediating banks as well as brokers from the foreign exchange procedures, driving down cost and administration time for companies and according to Gelis, instead of trading via a bank or broker, with this fintech startup, two trusted companies tend to trade with each other directly with transparency.

His challenge is to reach 20 percent of the market share in the next ten or twenty years and that `the fintech sector has been changing fast with new business solutions to be included in the whole updated structure. He further states that they are educating the market on these new solutions where the sector is monopolized by banks who own 99 percent of the market and their business model is quite a new alternative.

He adds that the global crisis largely affected the fintech sector and that they believe it was time to change the finance industry introducing the transparency, fairness and efficiency. These changes could come up though it would have a profound positive consequence on the global finance industry as well as economy and technological innovation is and will continue to be the vehicle for this change.

Tuesday, December 29, 2009

Can we see revival of American Economy during Obama’s Presidency?

Ever Since, Mr.Obama took over the presidency of USA, the US Stock Markets saw a deep correction followed by sharp rally. But it is well below the highs of 2007. The US Stock Market Index Dow Jones Index made a high around 15000, in 2007. But it is trading around 10,500 now.

The Economy is gauged by the stock Market Indices in any country. So, if we want to know the future state of the Economy, study of Stock Indices would reveal the real picture. So, if Stock Indices behave well during his Presidency, than the Economy is going to perform well.

The Dow Jones made a high of 15000 in 2007. If the US economy performs well in his tenure, then Dow is going to move above 15000. Is it possible for Dow to move above this level? If so, then he will be recorded as one of the best performed President in USA history.

Let me examine the possibility in detail. Stock Markets behave in cycles. If you see a five rally then it will be followed by some period of correction. Normally, bearish periods are more in time than bullish periods, which means, Dow Jones has to remain in bearish mode for another 5 years.

Since Obama’s term will end in another 3 years, the chances are less for the Dow Jones to move above 15000 which in turn unlikely for the US economy to grow in the next three years.

If this happens and if Obama doesn’t get a second term, then he may go down in the history as an unpopular President of USA.

Wednesday, December 16, 2009



The global industry down turn is a double bonanza for the Chinese leading automobile industries. The fast growing Chinese industries are chasing western brands to utilize the steep global industrial down turn.
Beijing  Automotive Industry Holding(BASIC) is one of the largest auto maker in China.  Recently Beijing automotive industry holding acquired Saab unit a part of General Motors  as a part of developing its own cars. More over it will by the intellectual property for 9-5 and 9-3  sedans and other equipments for a huge  unspecified sum.

This deal will help in the new saap production , but the Saap people clearly informed that the deal will not affect the sale of Saab to others.

The Dutch sports and ;luxury car maker SKYPER is also holding talks with general motors for Saab. Not only SKYPER and BASIC  there are so many other automobile manufactures like GEELY automobile groups are running behind the western car manufactures to harvest the benefits of Global industry down turn.

Most of the Chinese Auto mobile industries are running behind VOLKSWAGEN, TOYOTA MOTORS for tie ups .

Acquiring some assets of GM by BASIC  us a boon to the Chinese  company. Though it is a fifth largest automobile maker in china,
It still does not have its own brand car. Hence, even though the Saab platform is old still it  can use it for manufacture its own cars in future. More over it will get support from Saab as it will use the acquired technology in production of its own cars.