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Fintech

How Fintech is Shaping the Future of Banking: 5 Crucial Developments

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future of banking

What does the future of banking look like? It’s a fun question to ask, but it’s also an important one. Banking is one of the most profitable businesses in the world, and banks have been innovating and expanding for decades. But now that technology has taken over our lives, it seems inevitable that the banking sector will undergo a series of drastic changes. Here are 5 crucial developments in fintech that will shape the future of banking.

1. Mobile banking

Mobile banking is the most efficient way to make a payment or transfer money. This method uses your phone or tablet to perform banking tasks that would otherwise take you several steps to accomplish. Your mobile device does all the work. All you have to do is enter your card and amount. In the not-too-distant future, financial service companies will use virtual assistants like Alexa, Siri, and Google to give their customers instant answers and guidance. These AI-powered assistants will make it easier to shop, pay bills, and get answers to other pressing financial needs. 

2. Artificial intelligence

Artificial intelligence is a term that is constantly being used by industry analysts and companies as a catch-all for various technologies. But, in many cases, the term gets thrown around too broadly. When talking about AI, we usually talk about deep learning, computer vision, or predictive analytics. These terms may be new, but these technologies are really just algorithms that have already been around for a long time, such as search engines and machine learning programs. But AI is even more fundamental than all of these things put together. AI algorithms are trained by reading millions of user-written instructions and then outputting this data in response to a question. This seems pretty elementary, but it’s actually the first step in learning how to think like a human.

3. Blockchain technology

One technology that has been making waves across the financial services sector is blockchain. But what is blockchain technology? Blockchain is essentially a shared digital ledger, the transfer of data through an open network of users and computers. Originally developed to support bitcoin, blockchain has been adopted as a means to store, transfer and trade just about any type of data. Indeed, blockchain technology is being used to make credit card payments through the ethereum network, digitize gold in an effort to cut costs, and preserve data about refugees. But the technology could change how banks operate in the future. Blockchain is essentially an improved version of the electronic money system known as fiat currency.

4. Digital currencies

It’s possible that the world’s first mainstream digital currency could be launched in just 2-3 years, according to Victor Lee, senior research director at the Mercator Advisory Group. He explains: “Central bankers are convinced that the advent of digital currencies could cause significant disruption to the financial system, and in particular to the traditional payment systems.” Moreover, the prospect of a more ubiquitous digital currency has caught the imagination of financial technology companies that are experimenting with new protocols and use cases for digital currencies. When they mature, digital currencies could be a game changer for a broad range of financial transactions and become a highly relevant technology that changes the way that people send and receive money.

5. Open banking

Though a recently initiated policy, the government-backed Open Banking initiative is aimed at standardizing the banking industry and making it more competitive, especially for companies that work outside of the traditional banking system. Open Banking isn’t just about making banking easier. It also allows businesses to more efficiently utilize existing data. If you use an online bank and its standard policy dictates that you keep financial details private, you have to be very careful when providing account information. But with Open Banking, businesses can tap into a vast database of transactions and know what you bought, where you went, and how much money you owe. And thats how you’ll tap into future of banking.

Elena Hudgens is an entrepreneur with 10+ years of experience. She started her journey by building her own e-commerce website on Shopify and turned her $1000 savings to millions in just 2 years. Soon she started different ventures in which she failed and succeeded. And now, she's on a mission to help other entrepreneurs with her life and business lessons.

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The Hustle

How To Make Money With Bitcoin: The Best Ways To Trade and Invest

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how to make money with bitcoin

If you’re looking at how to make money with Bitcoin, the best way is to trade it. To that end, I’ve created this guide on the best ways to invest and trade Bitcoin.

What is Bitcoin?

Bitcoin is a cryptocurrency, which is a form of digital currency. The original Bitcoin was launched in 2009 by Satoshi Nakamoto, a pseudonym for an unknown individual or group of individuals. Here’s how the currency works, according to CoinMarketCap. When you buy Bitcoin, the equivalent of dollars are transferred from your bank account. When you spend, Bitcoin is purchased and sent to the buyer. In essence, you are exchanging dollars for digital money. The biggest thing to know about Bitcoin is the price fluctuates. The cryptocurrency started out as a viable currency, and the price rose from $0.10 to $1,000 in less than two years. However, the currency fell back to earth at $650 after the Chinese cracked down on cryptocurrency exchanges.

Bitcoin Trading and Investing

In the world of cryptocurrencies, there are two ways to participate and benefit: trading and investing. Trading is the act of buying and selling cryptocurrencies on exchanges, while investing refers to putting money into a cryptocurrency or crypto-related company in hopes that the company will grow and you will make money off of the increase in value.

Here are a few sites for trading Bitcoins Online:

Bitsonline.com 

Bitcoin.com 

BitMEX.com     

Kraken.com  

Most of the above sites allow you to trade using a variety of currencies (EUR, GBP, USD, USDT, etc.).

TIP: It’s best to be careful when you’re trading, as you don’t want to accidentally invest your hard-earned money into something that’s basically a scam. 

The Best Way to Trade Bitcoin

Buy an ETP and then flip it if you’re looking at how to make money with Bitcoin. It’s important that you look at your risk and find a strategy that’s beneficial to you. The easiest way to do this is to look at the market you’re investing in and see what trades are out there. If you’re looking to make money off of Bitcoin, the best way is to invest in ETPs. Ethers are a good way to invest in ETPs. Ethereum’s price will be affected by Bitcoin. Bitcoin’s price will be affected by Ethereum. Once you have the two prices matched, the profit is yours. As a general rule of thumb, if both the price of Bitcoin and Ethereum are going up, Ether is going to follow in step with Bitcoin. If both the price of Bitcoin and Ether are going down, Ether will follow the price of Bitcoin.

Best Way to Invest in Bitcoin

One of the best ways to invest in Bitcoin is to buy it on an exchange, then spend it. This way you have more exposure to the crypto markets than buying the coins yourself. Usually I use a wallet that gives me an ATM-like key to spend bitcoins. And for the exchange purpose I use Coinbase. For an example I recently used Coinbase to purchase my new laptop, which I will use to later trade the coins. 

Here are the steps you can follow to buy Bitcoin on Coinbase:

1. Download the Coinbase app on your mobile device 

2. Open an account 

3. Verify your identity 

4. Deposit money into your account 

5. Purchase Bitcoin (BTC) 

6. Secure your Bitcoin 

7. Buy and sell Bitcoin on Coinbase 

8. Transfer your Bitcoin to a separate wallet with more security

Conclusion

The only way to make money with Bitcoin is to trade it. Luckily, we have the resources to trade it. There are not many things more rewarding than trading Bitcoin. If you have any questions about trading Bitcoin, feel free to leave them in the comments section below.

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Crypto

How To Make Money With Bitcoin: A Beginner’s Guide

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If you’re looking to make money with bitcoin, you’ve come to the right place. I mean, who doesn’t want more money, right? But seriously, if you don’t have any experience with cryptocurrencies or mining, then this guide may be just what you need. In it, I’m going to share how I made my first $100 with bitcoin and how you can do the same thing.

How I made my first $100 with bitcoin?

While researching how to make money with bitcoin, I was struck by how hard it was to find anything about the subject, other than people making so much money with it that they had to keep it hidden. So I decided to find the truth for myself, and I started with the simplest way to make money with bitcoin: mining. Mining for bitcoins on your own is the simplest and most straightforward way to earn more with it. If you’re a tech-savvy person, or you have a great idea for an app, I can’t wait to see you in the fast lane with bitcoin mining! Before we go any further, let’s just clarify what mining is. It’s the process of solving math problems in order to obtain it.

What is bitcoin?

Bitcoin is an online, digital currency. This is a virtual currency that can be used to purchase things from other people using your computer. It’s also the easiest and quickest way to send money anywhere in the world instantly and completely anonymously. Sounds crazy, right? That’s because it is. With bitcoin, you’re not dealing with banks or currency exchange rates. You’re dealing with computers. No middlemen, no delays. As a bonus, it isn’t even backed by a bank. You’re literally just trusting someone else to do the calculations for you. The price of a bitcoin has been on a roller-coaster ride for the past three years. It started at $1,000 per coin in 2013 and now it’s below $5,000 per coin. 

What is mining?

Mining is the process of solving complex cryptographic puzzles to verify and increase the blockchain transaction record for the bitcoin cryptocurrency. This is how bitcoin is “mined,” the basis of it being “mined.” It’s basically a whole bunch of people trying to solve a tough math problem by solving puzzles. As each person solves their puzzle, they get more bitcoins in their wallets. 

How do I start mining bitcoin?

Before we get into how you can get started, let’s quickly explain how cryptocurrency mining works. What do you mean by “get started?” You mean, like, how do I actually begin mining? Why is it called mining? All of this information is important. Let’s start at the very beginning. What is mining? Bitcoin mining is basically the process of adding transactions to a blockchain. These transactions are added to the blockchain by miners. Miners are people that use specialized computers (or other devices) to perform the work of mining. So, technically speaking, mining doesn’t require any real effort on your part. Now here are four simple steps to get you started:

1. Sign up for a cryptocurrency exchange like Coinbase

2. Purchase bitcoin. 

3. Sign up for a bitcoin mining pool. 

4. Buy a mining rig.

How to make money with bitcoin?

The first thing you should know about Bitcoin is that there’s a finite amount of it on the market. In fact, it’s estimated that there will only be 21 million bitcoins in circulation. The first one to be mined was back in 2009, and so far, the largest known stash sits at just over 12 million coins. That’s not to say that there isn’t money to be made, though. There are a lot of ways to cash in on bitcoin. From mining to trading, the possibilities are endless. If you want to earn money with it, then here’s what you need to do:

1. Understand what it is, and how it works. 

2. Buy bitcoin and hold on to it. 

3. Earn money through mining, trading, or faucets. 

4. Use bitcoin to purchase goods or services. 

5. Use bitcoin to invest in other cryptocurrencies.

Conclusion

First, you should understand what bitcoin is before getting started. It’s not just a “digital dollar.” It’s also a blockchain-based technology that’s focused on making online transactions cheaper and faster. It basically allows you to conduct monetary transactions without having to go through the process of going through a bank or other financial institution. As far as the concept of cryptocurrency goes, you might have been around the concept of it, but if you have no idea how it really works, then you may find the concept of this article rather confusing. Hopefully, though, you will understand some of the basics after reading through this article, and that will help you learn how to create and trade bitcoins and other cryptocurrencies in the process.

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The Hustle

An Inside Look: How Financial Services Regulator Work?

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financial services regulator

The Regulators in India manage the services of banks, insurance companies, and other financial institutions. They also monitor and regulate the markets for securities such as stocks and bonds.

The Reserve Bank of India (RBI) is the supreme authority on banking and financial regulation in India. It is responsible for financial policy, currency management, and maintaining financial stability. The Securities and Exchange Board of India (SEBI) is responsible for regulating equity markets. The Insurance Regulatory and Development Authority (IRDA) regulates the insurance industry in India. Here you can find out more about these regulators in India. Learn more.

Financial Markets

What is the Financial Services Regulators System? 

The Financial Services Regulator is the regulation of the financial industry that refers to the laws and rules that banks, credit unions, insurance companies, financial brokers, and asset managers must conform to. Having financial regulations in place is not enough – they must be implemented and reviewed regularly as well.

Around 10,000 financial service providers operate in Ireland under the supervision of the Central Bank of Ireland. As of 2014, the ECB and Central Bank of Ireland (CBI) are jointly responsible for the supervision of banks.

The House of the Oireachtas and the European Union is in charge of making most of the laws that govern the financial system. Occasionally, the Central Bank will issue additional guidance on how these rules should be followed. Over the past decade, these rules have become stronger. Learn More.

What is the Purpose of the Financial Services Regulators System?

In some way, we are all affected by the Financial Services Regulator system. The banks ensure that gives out money is easily available when needed, for example. To maintain and develop their businesses, businesses need access to loans. You may need to get advice from a professional when taking out an insurance policy or mortgage. Whenever something goes wrong, policyholders rely on their insurance company to pay claims.

In addition to harming consumers, poorly regulated financial institutions can damage the economy and undermine the strength of the financial system. To prevent problems from occurring, ensure financial system safety, and protect consumers, strong financial regulations are important. Learn More.

What is the Process of the Financial Services Regulators System?

Investing in sound funding, performing risk control measures, and properly governing firms fall under the definition of a prudential financial services regulator system.

The concept of “consumer protection” ensures fair treatment of customers, from the sales process to complaint handling.

Authorizations play a key role in the financial services regulator system. This is our “gatekeeping role” and means we allow firms to operate in the financial system only after they fulfill several criteria, such as governance and risk management.

Also in place are consumer protection laws. Companies must follow these rules when selling financial products to customers. Accordingly, regulated firms must ensure that “they act in the best interests of their customers and the integrity of the market in an honest, fair and professional manner”.

In What Way are the Financial Services Regulators System’s Supervisions Handled?

Companies have to be supervised to comply with regulations of the Financial Services Regulator system. In our supervision activities, we make sure that financial services providers follow the rules to ensure they are complying with them.

The Central Bank examines and evaluates all aspects of firms’ businesses for safety and soundness. As well as meeting key decision-makers on-site, they inspect various aspects of firms. In recent years, the Central Bank has increased the number of employees doing this work, leading to more intensive supervision.

Following their risk to consumers or the financial system, firms are supervised to a different extent. Supervisors should be more closely involved when there is a high likelihood of harm. Because of this, it is called “risk-based supervision”. Learn More. 

Section 1: What does the Reserve Bank of India do in the Financial Services Regulator System?

The RBI’s role

7 primary functions are taken out by the RBI. There are different functions within the economy, each of them aimed at managing a particular part.

1. The Currency Issuer

A bank’s RBI is completely responsible for issuing new currency notes and coins, exchanging currency, or disposing of currency that does not belong in circulation. To provide enough supplies of currency notes and coins of good quality to the public.

2. The Monetary Authority

Money policy is developed, implemented, and controlled by the RBI. An important tool that the RBI has is this policy. RBI maintains interest rates by managing the loans offered by banks as well as the deposits held by banks. This has an impact on inflation and deflation in the country. Lower interest rates imply that inflation will increase and vice versa.

The objective is to maintain price stability while maintaining growth.

3. Foreign Exchange Manager

By enforcing the Foreign Exchange Management Act, 1999, RBI also manages the flow of foreign exchange within India’s economy. The RBI maintains the exchange rate value of the rupee on the international markets as part of its function.

Foreign exchange market development and maintenance in India must be maintained to facilitate external trade and payments.

4. Financial System Regulator and Supervisor

The RBI prescribes broad parameters of banking operations within which the country’s banking and financial system operate. When a bank fails, the RBI steps in to protect depositors’ funds by bailing out the distressed institution. It keeps track of banks’ financial operations and ensures they are following the guidelines.

The main objective is to maintain public confidence in the banking system, protect depositors’ interests, and deliver cost-effective services to the public.

5. Payroll and Settlements of The Financial Services Regulator

RBI introduces and improves safe and efficient modes of payment to meet the needs of our citizens. NEFT, RTGS, or Unified Payment Interface (UPI) are some of the advanced technologies that can be made available to banks as well as ignoring the operations of National Financial Switch (NFS) which is necessary for ATMs.

Maintaining the public’s confidence in the settlement and payment systems

An Official Banker to the Government: As well as being a banker for the state and federal governments, performs merchant banking duties for these entities. Governmental securities, such as Treasury bills and infrastructure bonds, are included in this category.

The Banker to the Banks: Maintaining accounts with all scheduled banks. Maintaining the minimum balance of reserve capital that banks must hold with the RBI is also part of this task.

7. Contribution to the Development

To support national objectives perform a wide range of promotional functions. Financial inclusion work for the financial services regulator involves things such as providing timely credit to productive sectors of the economy, building institutions to build financial infrastructure, such as UPIs and NEFTs, growing access to reasonable financial services, and working to address the financial needs of all members of society.

Section 2: What does the Securities and Exchange Board of India do for the Financial Services Regulator System?

  • The Securities and Exchange Board of India was established to protect investor interests and to maintain the financial services regulator.
  • The Securities and Exchange Commission promotes the development of the securities market and oversees its regulation.
  • The SEBI provides a platform for all types of financial institutions to register and regulate their work, including stockbrokers, sub-brokers, fund managers, investment advisers, transfer agents, charterers, registrars, underwriters, and other associated individuals.
  • Regulations cover depositories, participants, custodians of securities, foreign portfolio investors, and credit rating agencies.
  • Specifically, it prohibits insider trading in the securities market, as well as fraud and unfair trade practices.
  • As a result, investors receive education about the intermediaries involved in the securities market.
  • The agency monitors large acquisitions of stock and company takeovers.
  • To ensure that the securities market for the financial services regulator is efficient at all times, SEBI focuses on research and development.
  • brokers, fund managers, investment advisers, transfer agents, charterers, registrars, underwriters, and other associated individuals.
  • Regulations cover depositories, participants, custodians of securities, foreign portfolio investors, and credit rating agencies.
  • Specifically, it prohibits insider trading in the securities market, as well as fraud and unfair trade practices.
  • As a result, investors receive education about the intermediaries involved in the securities market.
  • The agency monitors large acquisitions of stock and company takeovers.
  • To ensure that the securities market is efficient at all times, SEBI focuses on research and development.

Section 3: What does the Insurance Regulatory and Development Authority do the Financial Services Regulator System?

Through formal channels, insurance was introduced to India in 1880 and has seen steady progress ever since. A regulatory body developed the necessary amendments and streamlined the laws according to the policyholders’ interests. The following are some of the important roles of IRDA:

  • As a priority, we need to protect the interests of the policyholder.
  • We need to increase the rate at which the insurance industry grows in an organized manner for the benefit of the common man.
  • To ensure the insurance company’s competence is kept in mind when doing the dealings, including fairness, integrity, and financial soundness.
  • To make sure insurance claims are settled as quickly and easily as possible.
  • A proper channel must be established to address the grievances of policyholders.
  • Fraud prevention and avoiding malpractices are important.
  • The Commission is charged with promoting fairness, transparency, and monitoring the conduct of insurance companies.
  • Establish a financial stability system that is reliable and flexible.

Section 4: Why are Financial Regulators Necessary?

Definition: Regulations governing financial institutions and markets are referred to as financial regulations.

As far as the EU budget is concerned, financial regulation governing establishing, implementing, and controlling it is the most important document.

In 2008, the regulatory authorities began taking aggressive measures to regulate the economy. Transparency of transactions was mandated by governments around the world so that the financial system can be stabilized by ensuring the safety of global markets.

A government agency or a non-government organization may be in charge of financial regulation.

Its importance:

  • Establishing a financial services regulator is key to maintaining the integrity of the financial system.
  • Failing banks are unable to satisfy their obligations to depositors and other creditors, which can have significant economic consequences.
  • According to the regulation of financial services, legislation is enforced; cases of market misconduct are prosecuted; licenses are issued to financial service providers; clients are protected; complaints are investigated, and confidence is maintained in the financial system.
  • The financial services regulator system enables us to access and save money, loan money to maintain business, take out mortgages or insurance and receive benefits when things go wrong.

It’s working:

  • Consumer protection and prudential regulation are two aspects of financial regulation.
  • Regulating prudently means ensuring that firms have the funding and risk controls necessary to trade safely.
  • A firm’s commitment to treating customers fairly, including how complaints are handled, is consumer protection.
  • Prudential regulation is incomplete without authorization. After they have met the required requirements to operate in a financial system, only firms are permitted to do so.
  • Moreover, firms are also informed about how they should conduct themselves by way of consumer protection rules.

Regulation, Supervision, and Enforcement

  • Regulatory compliance must be monitored to prevent shady practices.
  • It is often strict and intrusive to ensure financial service providers follow the rules.
  • Firms are supervised to secure their financial systems based on the degree of risk they pose.
  • By enforcing the law, financial services can mitigate poor behavior. The government regulates firms that fail to adhere to rules.
  • As a final step, there’s resolution – this occurs when a financial institution is restructured in a way that prevents it from having any adverse impact on the economy.

Section 5: How do I Protect my Money from Financial Regulators?

Money Protection

FINRA is dedicated to protecting investors. These resources help build your knowledge and help you avoid problems such as frauds that are often committed by people outside of FINRA’s jurisdiction.

Updates on investors

Make sure you stay updated on new products, scams, and investing issues. 

Ensure by asking and checking

You will also learn how to ask the right questions when researching sellers and investments. 

Fraud Prevention

You probably know someone who has been the victim of an investment fraudster’s sales pitch, even if you have never been a victim yourself. Check out the tactics used by fraudsters.

Identity protection: protect yourself

Credit ratings can be harmed and financial security undermined by identity theft. 

Conclusion

Understanding the financial services regulator system starts with having rules and laws, then ensuring that those rules and laws are followed. In the third step, you should enforce and resolve. When a firm does not comply with the rules, we have several options at our disposal. 

A firm may face enforcement proceedings if this occurs in serious cases. For the financial services sector to prevent poor behavior, a credible enforcement threat is essential. Lastly, sometimes the only solution is a resolution. To minimize the damage to the economy, a financial institution is wound down or restructured.

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