How Fintech Is Increasing Financial Inclusion after Demonetisation

Prospect of Personal Finance – Cashless/Paperless/Presence-less

Prospect of personal finance and money is being fashioned into three consequences namely cashless, paperless and presence-less. Due to demonetisation together with succeeding steps involved ever since attempts have been done by the Indian government in making the economy more digitized and less cash-dependent and the banking system is made more accessible.

 Being digital seems to be the quickest means of speeding up financial presence, ensuring that more individuals are brought under the domain of formal banking scheme, Moreover they can also take advantage from the linked benefits of insurance as well as investment. India has been a home to almost 50 crore million people who do not seem to involve themselves in formal banking either through saving account or a cell phone based payment scheme.
Digital execution means having a bank account and hence the challenge here is how you could get more individuals in opening bank accounts to provide them with digital benefits together with subsidies. When the government had been directing the country towards a reduction in the use of hard cash, people would need to have an account with the bank, together with internet connection as well as cell phone to operate the digital transaction. It is here that the roles of Aadhaar as well as the cell phone tend to get crucial.

Pilot Project through RBI

From the population of about 125 crore, around 109 crore have enrolled for Aadhar with at least 100 crore having cell phone number which is quite a large number than those having bank accounts which according to estimates would be around 70 crore.

With the combination of Aadhar together with cell phone it is advantageous of bridging the gap by around 30 crore unbanked individuals.The government has aided a pilot project, through the RBI which would quicken the opening of fresh bank accounts with the support of cell phones and Aadhaar.

Limited- functionality bank accounts can be opened by the customers utilising this system without the need of the usual stress of visiting a branch and submission of documents in completing the KYC process. With the aid of the Aadhaar linked cell number, their KYC can be completed by authenticating themselves via an OTP and one can open an account digitally, instantly, cashless, paperless, without the need of being physically present.

Process – Convenient & Easy 

This tends to be convenient and easy for the individual to complete the process in the comfort of his home and it is also great for financial service providers since the cost of customer acquisition tends to get condensed by relying on digital platform which have the capabilities of processing millions of account opening application simultaneously.

This will progressively be the type of account opening developments in insurance as well as investment sectors. Insurance providers have already been depending on the OTP system in authenticating new accounts through Aadhaar.

This development would be enhancing with the increase in internet penetration together with the availability of cheap smart phones. India has about 35 crore people, presently who are linked to the internet which tends to double every two to three years on an average and it is expected that by 2020, there would be around 70 crore Indians utilising the internet.

That Chip on Your Credit Card May Not Be Stopping Fraud After All

It's a different world, where the science and technology have registered some of the most magnificent developments and innovations, which are potentially, help the society in having a massive growth in almost all sectors. The advent of the computer and the internet are one of the major inventions of the scientific development, which have changed the world to a great extent and today we can find some sort of touches in almost all products and issues in our existing society.

While the primary sectors are getting huge supports from the computer technology; the financial sector also has seen some of the major breakthroughs in the operation and management of the financial instruments and data. The Credit card is considered as one of the important issues in the financial market, which is now being used by millions of users, throughout the globe, for ease and comfort.

Today the credit card or debit card are using as the avenue of the cashless transaction, which safeguards the malpractices and helps in efficient accounting purpose. It can be noted that the safety of using the credit card is getting the highest priority and several measures are being taken to get the utmost safety of the cards, which are often found quite inadequate and vulnerable.

Credit Card and Relevant Issues

It is now known to everybody that the transaction through these cards are quite popular among the people, especially in the younger generation, and there are lots of chips and other devices are being used in order to check potential frauds. But at the same time; the fact is that there are some problems inherent in these chips, which are essentially meant for the safety of the credit cards. In the present scenario, the security chips are widely used in the financial world and it becomes a bit difficult for the criminals to counterfeit any debit or credit card.

But in recent days, the fraudulent activities are on a rise and various criminals are now pilfering cash from the plastic card by using some different mode of operation, which is considered as a great threat to the general people, who are using the credit card for convenience and safety. The new study, done by the renowned research organization, Javelin Strategy and Research, has made some unique revelations in the frauds of the credit card, which are as follows:

• The most common identity fraud has been rose about 16% in the year 2016, which cost individual an all-time high of USD 16 billion; 
• About 15.4 million people are affected by this kind of fraud, which is about 6.15% of the total consumers and a 2 million more from the earlier year i.e. 2015;
• While the study was not been done exclusively for the credit cards, but the researchers made it a point that the majority of these identity thefts are predominantly linked with to the credit cards; 
• This escalation in fraudulent activities, which is about USD 700 million more than the previous year, seems to be unspecified.

Use These 12 Steps For Success With Your Regulation A+ Capital Raise

In any business, the resource mobilization is a crucial and most important issue and people try their best to have some positive solution of this problem. The most natural form of resource mobilization is being done by the help of IPO, Venture capital or bank syndication, the Regulation A+ is helpful in getting the right kind of support in mobilizing the fund.

There are some steps to be followed for achieving Regulation A+, which are as follows:

1.  It is always a tough issue in front of any business or project; as the seasoned investors are usually quite skeptical about investing in new ventures. Therefore, using the Regulation A+ could be the best option to get the required fund; 
2.  The provision of dividend or royalty to the investor, broaden up the scope of getting fund from the targeted organization. Interest payments have been considered as a major issue in the Real Estate sector; 
3.  These days, the crowdfunding is considered as one of the most encouraging and effective forms of resource mobilization and to get it done, one has to appoint a 360-degree marketing agency for this specialized job; 
4.  It would be a great deal if a partnership can be cemented with a syndicate of broker-dealer, which could be helpful in getting an inroad into the world of potential investors at a single move; 
5.  The required "Testing of water" has to be done for a short period of time, otherwise; the very essence of testing the market can be jeopardized, which will eventually not been helpful in getting the financial support from the investors; 
6.  It is often found that some auditors delay the process by taking abnormal time to get things ready, therefore, the selection of the auditor has to be done with special care, which might be of great help for the funding; 
7.  This can be noted that the SEC use to allow the company to go for "no-minimum" offerings, which is a great advantage for the company to get at least some forms of capital investment, which might not be possible if there is any minimum level being set;
8.  It is always been suggested that the intended company should go for the offerings; once they have sufficient fund in hand to go forward, otherwise, the move can be disastrous and harmful; 
9.  One should not be confined their approach in the domestic market, on the contrary, an international exposure is always a very good option for mobilizing the fund and may at a lower financial cost; 
10.  The complex terms and conditions are usually being avoided by any potential investors, therefore a simplistic and transparent approach in this regard, is always helpful in getting the support from the investors; 
11.  The important part of the Reg A+ is the minimum level of opportunity that is being offered to the potential investors, which any investor from any part of the globe to invest, as per the capability, to the project or business; 
12.  Try the tier 2 of Reg A+, which provides the opportunity to raise from Zero to $50 million per year for the company.

Bitcoin exchange Coinbase gets money transmitter license in New York

With everything getting digitalized, the life of every individual is also becoming digital. Internet has given the power to everyone to avail anything they want that too by just sitting at your house. So, digitalization has captured every sphere of the human life. Whether it is about paying bills or opting for shopping you can manage anything and everything from anywhere and in every situation, that’s the power of being digital. Cashless is also not a problem in this era of digitalization. I believe the world is getting powerful day by day with this new technique that allows you to overcome every obstacle.


The effect of digitalization can be mostly felt in the zone of finance. New firms have come up to become a part of the world market holding hands of digitalization. One of the major company that has joined in with the New York’s Financial system is Coinbase. Recently, The Department of Financial System, New York has declared that it has given license to Coinbase for genuinely transmitting currency and money. Coinbase is one of the renowned companies famous for its dealings in terms of currency operating in almost 32 countries. Maria T. Vullo, the Superintendent of Financial Services had made this announcement that Coinbase has maintained its record of efficiency in terms of technological developments and thus New York’s Financial Services Department have decided to incorporate the company in their money and currency transmitting process.


A review of Coinbase’s technology was conducted by Department of Financial Services which involved the companies laundering process regarding anti-money, capitalization, protection of consumers against any piracy and also policies in terms of cyber security. The company Coinbase is constantly under the supervision of Department Of Financial System for offering services such as buying, selling, sending, storing bitcoin and receiving.


The company’s Chief Executive Officer Brian Armstrong declared that their first and foremost priority is to provide the safest and easiest way of currency exchange that too in a digitalized manner. So, that the customers can rely on them and do not have to experience any discrepancies from the company’s end. It is their way of maintaining a good relationship with its customers. Since, Coinbase in now a part of New York’s Financial System, hence, it has become a much known company in the field of currency transfer. The users can feel free to use them in times of their need and they assure you to provide satisfaction from all ends.


With the increasing need of transmitting currency, The Department OfFinancial System, New York has given license to several other money and currency transmitting firms like Ripple and Circle Internet Financial and trust charters to Gemini Trust Company, Winklevoss brothers are its founders and also itBit Trust Company. The Department before granting them license have fully enquired about these respective companies and after being satisfied have granted them license. These companies have come up to provide the best answer to digitalization and will add up in making life much easier for every human being.

Dollar retreats from 14-year highs, investors unpack Fed minutes

 
As the value of dollar fell against euro and yen the investors became cautious regarding increase in bets on greenback without any hints with respect to the economy of U.S. and the hike in rate of interest. The very first day of trading in 2017 for several investors was full of expectations as they met with U.S. manufacturing data which was way different from the previous days. Since, the depreciation of dollar was the highest till date.

The Federal Open Market Committee that met in December, had warned everyone of the risk of increase in inflation after President Donald Trump’s proposal of fiscal influence standards that would shift dollar and will push up euro to $1.0499, which is its highest value declared. But as the investors changed their ways, euro started tracing profits to some extent.

Joe Manimbo, a senior market analyst at Western Union Business Solutions in Washington has intended that this decrease in the value of dollar in comparison to euro and yen have led to mixed reactions as in a way it sounds optimistic in terms of the economy, and on the other way it suggests a demoralized power of dollar.

Research have shown that the last time the value of euro increased by 0.6 percent at $1.0465. The current data shows that such a quick increase in the value of euro in December was unexpected and the surveys prove that due to this the growth in business have reached new heights in more than five years.

The dollar was last seen to be down by 0.2 percent against yen at 117.51 after an overnight hike of 118.17 yen. After Trump was elected as the President dollar has increased against many currencies with an expectation that administration under him will push up inflation, leading the Federal Reserve to follow up through a hike in rate of interest.

The Mexican peso was found to be striking the lowest level against the greenback, it fell more than 2 percent to 21.62 pesos per dollar with an intention that Trump’s policy might allow the protectionist U.S. trade policy to become a reality.

The Chinese yuan was increased to 6.8707, which was its highest value recorded against dollar since 6th December. As a result China went into both onshore and offshore markets to increase the depreciating yuan for the second time. China was also found to set the onshore middle point rate much lower than the market actually expected from it which lead many investors leaving the ground, who were intending more upcoming weaknesses in the currency, positioning in the negative direction, this was propagated by Greg Anderson, who is the global head of foreign exchange strategy at BMO capital Markets.

Thus, we can relate that how the marketing strategies as well as the position of investors are subjected to change with fluctuating value of currencies that on a longer run effects the entire economy of the country both positively and negatively.