Ransomware hackers extorted $1bn across 2023, according to data insights company and blockchain platform.

The company published a report showing the extent of malicious hacking and developing trends affecting entities across the last year.

Chainanalysis provides data, software, services, and research to government agencies and companies across seventy countries.

”Our data powers investigation, compliance, and market intelligence software that has been used to solve some of the world’s most high-profile criminal cases and grow consumer access to cryptocurrency safely,” says the company site.

The report details a staggering increase of $433 million in ransom taken from victims compared to 2022, growing to the highest-ever rate of $1bn in 2023.

Report shows biggest ransomware attack of 2023

The Cybersecurity and Infrastructure Security Agency (CISA), Federal Bureau of Investigation (FBI) released a Cybersecurity Advisory (CSA) in June of last year highlighting the MOVEit vulnerability, carried out by the CL0P Ransomware Gang.

This would be one of the biggest reported ransomware attacks recorded and was the spike point of 2023’s issue with ‘Zero-Day’ exploits.

What is a Zero-Day?

The report details this as a ‘Zero-Day’ vulnerability that compromised multiple institutions simultaneously. The attack is given this name as it gives the developers zero days to respond to it as it exploits an existing crack in the defenses they were unaware of.

The MOVEit hack was like finding all the keys to multiple company lockboxes in one big digital bank vault.

The hack hit several established institutions and exploited a vulnerability in the file transfer system. The software owner would announce that the service had been compromised with sensitive data, including personal details, and in some cases, banking information was in the hands of hackers.

Sony, the BBC, and Flagstar Bank were a few of those affected. The Maine Attorney General documented that 837,390 users had their data violated, with the report stating, “Information Acquired — Name or other personal identifiers in combination with Social Security Number.”

The Japanese tech giant, Sony, would also send letters to those affected stating that the company wanted to “provide you with information about a cybersecurity event related to one of our IT vendors, Progress Software, that involved some of your personal information.”

“This event was limited to Progress Software’s MOVEit Transfer platform and did not impact any of our other systems.”

This would extort massive amounts of data and considerably damage Progress Software’s reputation.

U.S. Federal forces and companies across the globe will be hoping that the number of attacks and the amount extorted will fall across 2024.

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At its first policy meeting of the year, the Federal Reserve held interest rates stable, giving the impression that it was considering whether to decrease them, but not that soon. The Federal Reserve maintained its benchmark federal funds rate at 5.5% to 5.25%, the highest level in over 20 years, while it waits for more proof that the significant decline in inflation that occurred at the previous year’s close will continue.

Investors in interest-rate futures markets have been placing bets on the central bank cutting rates at its upcoming meeting on March 19–20, with odds of about 50% during the majority of January. The Federal Reserve Chair, Jerome Powell, did, however, volunteer on Wednesday that they didn’t believe a March cut was likely. “I don’t think it’s likely that the committee will reach a level of confidence by the time of the March meeting” to justify a rate cut, “but that’s to be seen,” Powell said.  He continued, “It’s a highly consequential decision to start the process” of lowering interest rates, “and we want to get that right.” As an aside, Federal Reserve Chair Jerome Powell was on the shortlist of nominees for TIME’s Person of the Year in 2023.

Wednesday’s closing stock indices were down

Wednesday’s closing stock indices were down; the S&P 500 was down 1.6%, or 79.32 points. The index saw its most significant decrease since September, even though it finished at an all-time high on Monday. The 10-year Treasury note’s yields dropped 0.091 percentage points to settle at 3.965% following the announcement of a loss and a dividend cut by New York Community Bancorp, which caused further concerns about the state of local lenders.

In December, most officials predicted that if inflation kept falling to its objective of 2% and economic growth remained moderate but consistent, they might be able to lower rates three times this year. These forecasts are only released at every other conference. Here is the statement:

The Mortgage Bankers Association said, “The fed-funds rate affects the cost of borrowing for other loans in the economy, including business loans, credit cards, and mortgages. The 30-year fixed-rate mortgage hit a high of 7.9% in October last year — but it is currently only 6.78%.”

Federal Reserve Chair Powell also indicated that the Fed might take longer to drop rates or prolong the procedure if inflation becomes more enduring. If the job market deteriorated, or there was “very, very persuasive lower inflation,” it may decrease rates sooner rather than later.

Many analysts had predicted a year ago that the Fed would need to hike rates to generate enough slack, in the form of idle factories and jobless workers, to limit inflation dramatically. Wage growth slowed at the end of 2023, which the Fed considers a “comprehensive measure of pay growth.”

Inflation in December decreased to 2.9% from a year ago

Using the Fed’s preferred measure, inflation in December decreased to 2.9% from a year ago, excluding volatile food and energy prices. During the second half of the year, the six-month annualized inflation rate decreased from 4% in the first half to less than 1.9%.

Some economists have said the strength of consumer spending and business investment suggests current interest rates may not be as restrictive as they would have been in the past.

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IBM enjoyed a 12% spike in its share price on Thursday on the back of a better-than-anticipated revenue forecast.

The upturn represents a more than 10-year high, supported by strong demand for its artificial intelligence (AI) services.

As reported by Reuters, Big Blue is thriving on orders received from its generative AI arm, with its Watsonx platform contributing significantly toward a projection of 4-6% in revenue growth in 2024 after orders doubled for the fourth quarter of last year.

IBM’s expected gains for next year compare very favorably with Wall Street expectations of around 3%.

The company report, released on Wednesday, indicated above market estimates based on the order book for the coming months, but there will also be staff cuts at IBM, offset by new hires in AI-focused roles.

Competitive edge

Under the leadership of Arvind Krishna, incumbent CEO since April 2020, the technology corporation with a market cap of $174 billion has moved toward a focus on software and consulting with a timely concentration on AI as clients from different industries seek its integration.

Krishna, who also fulfills the role of company chairman, reflected on the fourth quarter results with the following comment:

“For the year, revenue growth aligned with our expectations, and we exceeded our free cash flow objective. Based on the strength of our portfolio and demonstrated track record of innovation, for 2024, we expect revenue performance in line with our mid-single digit model and about $12 billion in free cash flow.”

IBM’s share price increased to $194.93, its highest level since June 2013, adding around $19 billion to the company’s market capitalization and a year-to-date risk of 18% for the stock.

“A notable edge for IBM is its consulting arm in AI, which, coupled with its increasingly relevant AI software solutions…positions it favorably against competitors,” said May De, an analyst at Global X ETFs, a New York-based fund management company with $51 billion of assets under its watch, as of July 2023.

Image: IBM/Twitter

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Tesla’s fourth-quarter earnings were released on Wednesday after the closing bell. The results surprised Wall Street and sent shares down more than 5% in extended trade. The giant in electric vehicles had a 3% gain in revenue to $25.17 billion, according to LSEG figures, but fell short of the $25.62 billion experts had projected. With this gain, Tesla has experienced its first modest growth in more than three years. The Austin, Texas-based company posted a gross margin of 17.6% for the three months that ended in December, which was lower than the average analyst projection of 18.3%. A 23.8% gross margin was reported by Tesla during the same quarter the previous year.

In addition to reporting record deliveries for the quarter, Tesla also reported lower costs for battery raw materials; nevertheless, price reductions and expenses related to the launch of its new Cybertruck reduced profitability.

Tesla always manages to make a comeback.

Tesla cut pricing multiple times last year, yet it still managed to deliver the 1.8 million cars it had planned to.

Longtime Tesla shareholder Ross Gerber criticized CEO Elon Musk’s leadership today and voiced worries about the company’s direction and dynamic pricing strategy during an interview on FOX Business’ “The Claman Countdown.”

This month, Volvo and Tesla announced that they were ceasing some of their European production due to a shortage of parts resulting from shipping being rerouted away from the Red Sea and Suez Canal because of the threat posed by Iran-backed Houthi rebels in Yemen. As a result of a shortage of parts on ships that were routed around the southern tip of Africa or the Cape of Good Hope instead of the Red Sea and Suez Canal, Tesla notified Reuters that it would be suspending most car production at its Gigafactory near Berlin from January 29 to February 11.

However, after Musk stated that it would be challenging to ramp up new car production, Tesla shares may have dropped 6.5% in premarket trading. Before the new model’s release, Tesla also warned of a notable slowdown in sales growth this year. Musk suggested it would take time and “a tremendous amount of new revolutionary manufacturing technology” to accelerate Tesla’s lagging growth pace.

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The rumored ambitions of OpenAI CEO Sam Altman to construct an AI processor that will create AI chips internally was one of the more surprising tales of the previous week. On Tuesday, the Financial Times disclosed some further details regarding the project: Although Altman genuinely seeks to create his own substitute for Nvidia’s AI and HPC GPUs, he is discussing chip manufacturing with TSMC.

OpenAI CEO Altman is reportedly in talks to launch a new chip company with TSMC and Middle Eastern investors to lessen OpenAI‘s reliance on Nvidia (or rather, Azure datacenters that run Nvidia’s H100, which Microsoft purchases in bulk) and meet the company’s increasing processing power needs.

This ambitious effort, headed to change OpenAI’s approach to AI model creation and hardware usage, incorporates notables such as Sheikh Tahnoon bin Zayed al-Nahyan of the United Arab Emirates. With this endeavor, OpenAI will strive to join the ranks of businesses like Google and Amazon Web Services, which create custom chips for AI applications. Given the objective of taking on the industry titan Nvidia, the financial stakes in this endeavor are substantial. Altman needs funding since creating such sophisticated processors from the ground up is anticipated to cost hundreds of millions if not billions.

The main topic of Altman’s talks is getting money from some of the wealthiest Middle Eastern investors.

Sheikh Tahnoon bin Zayed al-Nahyan (national security advisor) and one of Abu Dhabi’s most influential people are critical players in these negotiations. He is in charge of large assets since he is the president of the UAE’s brother and a significant player in the nation’s commercial and investment scene. In addition to chairing the International Holding Company and the ambitious AI startup G42, which has already forged collaborations with Microsoft and OpenAI, they include the Abu Dhabi Investment Authority and ADQ.

In addition, Altman and TSMC are negotiating over the processors. For Altman’s chip company, this possible relationship with the Taiwanese foundry is essential because TSMC is one of the few semiconductor contract makers with state-of-the-art process technologies. However, Altman must haggle to obtain a suitable capacity because TSMC’s advanced chip production capacity is constrained.

We are unsure about the organizational structure of Altman’s new venture and if it will operate as a separate company or an OpenAI subsidiary. Nonetheless, it seems evident that OpenAI will be the venture’s principal client anyway, suggesting a tight working relationship.

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Microsoft’s market cap briefly exceeded $3 trillion for the first time in its history on Wednesday, positioning it as the world’s second-largest company in terms of market value, following Apple Inc.

Since the beginning of the year, the tech giants have been competing for the top spot, with the iPhone maker temporarily capitulating its position to the Washington-based firm on January 12th.

Microsoft stocks climbed more than 1% and hit a record high of $405.15 as investors rallied around the company’s expansion into AI. According to CNBC, the shares are reportedly up more than 7% year to date. Apple became the first company to hit $3 trillion last year, as the company’s stock closed at $193.97 per share in June.

Microsoft boosts AI investment

Earlier this month, Microsoft announced the launch of its new premium subscription Copilot Pro, and the expansion of its Copilot for Microsoft 365 offerings to businesses of all sizes. These developments represent a significant step in commitment to integrating advanced AI capabilities into everyday work and personal life.

The company is also building its own custom AI chip that can be used to train large language models in a bid to reduce costs and reduce reliance on Nvidia, the leading AI chip supplier.

Supported by its investment in OpenAI, the maker of ChatGPT, it is widely regarded as a frontrunner in the competition for supremacy in generative AI, alongside others such as Alphabet, Amazon, Oracle, and Meta.

However, there have been repercussions. Both the UK’s Competition and Markets Authority and the European Commission are examining whether Microsoft’s $13 billion investment into OpenAI is reviewable under the EU merger regulation rules.

“The European Commission is checking whether Microsoft’s investment in OpenAI might be reviewable under the EU Merger Regulation,” the commission said in a statement on January 9th.

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Inox India’s initial public offering (IPO) opened on Dec. 14th at Rs 627-Rs 660 ($7.52 – $7.92) per share and fully subscribed after the first day, reports India Today.

The offering is not due to close until Dec. 18, with the IPO scheduled to be allotted on Dec. 19. It will make its stock market listing debut on Dec. 21st.

The Indian company, which manufactures cryogenic tanks and other equipment, is offering 2.21 crore (22100000) shares from initial shareholders, and is expecting to raise Rs 1,459.32 crore (Rs 14593200000, or $175,110,373.74) with the IPO, with the company itself receiving nothing for the sales.

The grey market premium (GMP) on the shares is Rs 445, suggesting an initial listing of Rs 1105, however, the GMP remains unregulated and while it gauges the temperature of a launch, it is not a guarantee. It does indicate that investors perceive profit in the shares beyond the issue price.

What does InoxCVA produce?

The company, which is part of INOX group, specializes in cryogenic tanks and end-to-end cryogenic solutions for transport and storage. INOX’s recent financial performance has been on an upward trend, with India Times reporting a 17% on-year growth for the group in the 2023 financial year. The conglomerate has not issued an IPO since 2006, when it issued Inox Leisure (now part of the PVR Group).

Speaking to Press Trust India, executive director of the group Parag Kulkarni said: “The main purpose of the IPO is to make us more visible in the global markets. Though globally, we are the third largest by volume at Chart of the US and the Chinese state-owned firm CIMC, from a revenue perspective we are too small.”

India’s tech sector is currently experiencing huge growth, with Apple moving the production of a quarter of all iPhones to Karnataka and AMD launching a new design center in Bengaluru. Many companies are eager to minimize dependence on China, especially with export regulations constantly in flux.

Photo credit: DALL-E. This is an AI-generated image.

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The stock price of Advanced Micro Devices (AMD) rose nearly 10% on Thursday (Dec.7) in the company’s best single trading day since May.

The spike came a day after it launched new artificial intelligence (AI) chips designed to compete against chipmaker rival, Nvidia,  reported CNBC. Thursday’s increase in AMD shares suggests investors are backing the company’s assertions it can take on its bigger competitor.

On Wednesday, AMD CEO Lisa Su discussed the new MI300X accelerator chip which is a large graphics processor designed for AI-oriented servers, and said Microsoft and Meta had committed to using the chip.

“We’re still at the very, very early innings of AI,” AMD CEO Lisa Su says. https://t.co/iaUqFj1Hkb pic.twitter.com/3MxjQYo9ng

— CNBC (@CNBC) December 6, 2023

Speaking to reporters following her speech, Su said the anticipated $400bn market for AI processors in 2027 left plenty of space for AMD. “We think we could get a nice piece of that,” the Financial Times reported. Included in the estimate is China, which is facing a US government crackdown on exports of advanced AI chips.

Su said AMD “spends a lot of time with the [Biden] administration” and US Commerce Department. “We understand for the most advanced chips, [export restrictions] are important for us to have — from a national security standpoint.”

The chipmaker has also been expanding operations in Asia. In November, AMD opened its largest global design center in India. The state-of-the-art campus in the city of Bengaluru will employ around 3,000 engineers in the coming years and focus on the design and development of the company’s semiconductor technology including 3D stacking, artificial intelligence (AI), and more.

Featured image: Photo by Vladimir Malyutin on Unsplash 

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Successfully marketing your business is a challenge regardless of economic uncertainty. But when its overall performance doesn’t look like it’s going to trend upward, this uncertainty can make you sweat. Your marketing dollars must work harder, while your creative campaigns really need to hit the mark with your audience. Simply put, there is less room for error.

If it’s any comfort, even the greats don’t get it right every time. But that doesn’t mean you want to throw caution to the wind when you’re unsure how the economy will perform. Uncertainty leads to anxiety for consumers, too. They start scrimping and saving, looking for ways to make cutbacks or delay purchases. And you certainly don’t want your brand to fall into either of those categories.

So, how can you make your marketing stand out while reaching and motivating your audience? It begins with putting yourself in your customers’ shoes in each market segment. While this practice sounds like a no-brainer for marketers, empathy extends to every portion of your strategy. It lays the groundwork for meeting consumers where they’re currently at, establishing trust, and building loyalty.

Besides starting from a place of empathy, you can expand beyond the scope of traditional marketing. Paying attention to customer acquisition and retention through data-driven techniques also builds loyalty. It’s a practice known as growth marketing. With this approach, you aim to maximize conversions at every step of the buyer’s journey. This goal includes the referral stage, where loyal customers participate in your marketing processes.

Do More Than Create Awareness

Conventional marketing might be good at creating awareness. You design an ad campaign and launch it out into the world. You’re probably using some research to define your target audience while determining what media they’ll likely consume. But you’re also relying on your gut to shape your campaign, hoping your audience will see, hear, and read it.

You’re going with a hunch in terms of what messaging you believe will capture their attention. And you’re focusing on growing your business by adding new customers to the flock. Although gaining additional clients fuels growth, cultivating those already in your fold does so even more. That’s why, unlike traditional marketing methods, growth marketing strategies focus on more than just creating awareness.

By embracing growth marketing, your business aims to keep as many customers as possible for as long as possible. Client retention doesn’t take as many resources since the methods you’re using — customer service, small incentives like discounts, etc. — generally cost less than ads. Plus, the data shows increasing customer retention by 5% can grow profits by 25% to 95%.

With growth marketing, you’re looking at the whole picture. Determine where customers are falling out of the funnel on the way from awareness to brand ambassador. Are there things you can do to boost the percentage of one-time buyers who return for more? The same goes for those who fit into various revenue tiers and refer others to your brand. Marketing doesn’t end with an awareness campaign or when a new client purchases their first product.

Consider Your Customers’ State of Mind

Getting inside your target audience’s head is the reason you do research. The insights you gain help inform all aspects of your marketing strategy, from product designs to promotions. It’s even more imperative to know where your consumers are coming from in times of economic uncertainty.

In contrast to previous economic wobbles, consumer spending remains strong in 2023, despite inflation and dwindling savings. Yet the current uncertainty may impact various segments of your audience differently. In many cases, their priorities and preferences will change. Simultaneously, some preferences won’t shift. You may need to tweak your messaging, reposition your products, and change your frequency.

In this context, frequency refers to the “strength of your signal.” In this radio analogy, frequency is the vibration that distinguishes your brand from others on the same general wavelength. To know your audience is to know your frequency. So if your core audience is heavily impacted by economic uncertainty, find out how they’re responding to it.

Sometimes, you can do this by looking at data from past periods of economic turbulence and seeing which companies and sectors struggled or thrived. However, every period and sector has unique, influential factors. Take real estate, for example.

While home prices tended to decline during the 2008 recession, a lack of inventory has kept price tags up this time around. That fact likely explains why home sales decreased by 4.1% from September to October 2023. Interest rates are high, and prices aren’t falling, making affordability a real concern for most consumers. If you’re in the real estate industry, it’s a concern for you, too.

Still, affordability may not worry consumers in all home-buying segments, such as those with higher incomes or savings. They might be able to absorb more of the sticker shock from asking prices and mortgage rates. Rather than stressing affordability, your messaging could explain that reduced competition makes now a good time to buy an exclusive property. Knowing the effects of economic uncertainty on your industry, products, and various audience segments will help you fine-tune your marketing.

Take a Second Look at Your Brand Story

During economic uncertainty, competition is going to kick up a notch. Consumers aren’t just potentially trimming their budgets. When they do spend their money, they’re looking for brands with compelling value propositions and causes they connect with. You can become one of these by communicating an authentic brand story. Giving customers a behind-the-scenes view can serve to humanize your business.

In sharing your story, strive to be consistent and craft a cohesive message. You might want to simplify that message, redirecting focus to your core value proposition. What you don’t want to do is jump all over the place, trying to be everything to everyone. That move can come across as inauthentic and confusing to your audience.

Rather, you want to show how your brand is distinctive and the ways it makes a difference for your target market. At the same time, look at all aspects of your story’s messaging. Is the tone appropriate for how your audience might be feeling right now? And does the unique selling proposition resonate with shifting needs?

Taking real-time feedback into account can help you rethink the story you tell. If customers report that they’re feeling pinched, highlight your cash-strapped startup days and why you persisted in bringing your offering to market. For an audience to understand your brand, you have to share more than a promo. Tell them why your offerings exist, what goes on behind the curtain, and what your brand values.

Pay Attention to the Data

Part of a solid marketing strategy is using data to guide your decisions. With growth marketing campaigns, you use data from A/B testing and performance feedback to guide your choices. The information you gather helps refine your tactics so you can discover what successfully moves clients through the funnel.

After all, the goal is to advance them to the next stage. Yes, you know you won’t move everyone to the referral endpoint. It would be unrealistic to think that. Yet, you want to leverage the data to determine where to improve your marketing mix.

Examples include testing different versions of emails and website landing pages. You can also experiment with various forms of personalization, including offers based on purchase history. You could use data to go bigger, such as reshaping business practices and product designs. It’s about listening to what your audience is saying while seeing how your efforts measure up.

Tracking key metrics, such as customer churn, can indicate whether you have a retention problem. But you’ll have to dig into the data and gather additional feedback to determine why you lose clients. During economic uncertainty, it could be because there are appealing substitutes. If participation in your referral program is low, maybe you have a trust issue. Analyze what all the data points are telling you and aim for long-term solutions.

Use Multiple Channels

Audiences hang out on more than one social platform. They’re exposed to messages from various channels, including email, online ads, digital PR, radio, and print. Most companies don’t limit marketing messages to a single channel. Instead, they meet their target audiences where they’re at. You have to know what media your consumers interact with and the channels that drive conversions.

Be aware, though, that digital services can be one of the hidden costs of running a business. Creating a website, redesigning one, creating online content, and managing social posts add up. You still have employee overhead if you’re doing some or all of it in-house. Your employees might also not be optimizing their time, spending too much on figuring things out instead of executing.

You want to create cohesive cross-channel marketing experiences while being cost-effective. Listening to the performance data will also help you here. An honest look at your in-house resources will do the same. You can and should partner with outside vendors when your staff lacks the necessary expertise. Or maybe you need to enhance your employees’ abilities and allocate their time better.

Use a web analytics platform to determine whether you’re using channels where your audience engages with your brand. You don’t have to maintain a presence on every social site. But you do have to tie in your social presence with your website, app, retail footprint, and other messaging formats. Make it seamless for consumers to move back and forth between channels.

Marketing During Economic Uncertainty

Promoting your business when the economy is on shaky ground is challenging because consumers get more selective. You’ll need to determine how your market segments respond to the economic headwinds and modify your messaging accordingly.

At the same time, remember that marketing during economic uncertainty should extend beyond customer acquisition. Your existing clients constitute a more profitable and long-term revenue-generating segment. Appeal to them at each stage of the buyer’s journey by finding ways to add value and leverage data. And don’t neglect to consistently communicate your brand’s unique selling points through synergistic, engaging experiences.

Published First on Due. Read Here.

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In the age of technological advancements, the influence of artificial intelligence (AI) and machine learning (ML) has permeated various industries, reshaping how we understand and approach problems. One area where AI and ML have made a significant impact is in the realm of personal finance, particularly in the optimization of credit scores.

This blog post dives deep into the multifaceted ways AI and ML are revolutionizing how we perceive and improve credit scores.

Financial Education And Awareness

Educating individuals about financial health is the cornerstone of credit score improvement. AI-driven platforms can now offer personalized educational content based on an individual’s financial behavior and needs.

By delivering bite-sized, relevant information, these platforms ensure users are well-equipped to make informed financial decisions, leading to better credit scores over time.

Enhanced Credit Analysis And Personalized Recommendations

Traditionally, credit reports were analyzed manually, often leading to discrepancies and inefficiencies. With AI, the process has become much more refined and accurate. Machine learning algorithms can comb through extensive data at lightning speeds, identifying patterns humans might miss.

Furthermore, when assessing credit repair company effectiveness, AI assesses how these companies have fared historically with cases similar to yours. By analyzing thousands of credit repair outcomes, AI can offer a personalized recommendation on the likelihood of a credit repair company’s effectiveness for your specific situation.

Real-Time Fraud Detection

With the increasing number of cyber threats and fraudulent activities, having a robust system to detect anomalies is crucial.

Machine learning models now monitor real-time transactions, instantly spotting unusual behaviors or patterns that might indicate identity theft or fraud. By preventing these unauthorized activities, one’s credit score remains unharmed, ensuring that unseen cyber threats don’t jeopardize their financial health.

Predictive Analysis For Score Improvement

Instead of merely reflecting on past financial behaviors, AI and ML tools can predict future outcomes based on one’s current actions.

These systems can suggest actionable steps for individuals, like opening a new line of credit or paying off a specific debt, to bolster their credit score in the future. This proactive approach ensures individuals aren’t just repairing their credit but are setting themselves up for financial success in the long run.

Tailored Financial Products

Financial institutions and fintech companies now leverage machine learning to design financial products tailored to individual needs.

By analyzing a person’s spending habits, income levels, and credit history, these algorithms can suggest credit cards, loans, or other financial products that are more likely to benefit the individual, both in terms of usability and credit score improvement.

Automated Dispute Management

One significant area of concern for many is erroneous information on their credit report. AI-powered tools have made the dispute process more streamlined and efficient. These systems can automatically detect discrepancies in credit reports and initiate disputes on behalf of the individual, reducing the time and stress associated with manual interventions.

Enhanced Data Security

As we entrust more of our data to online platforms, ensuring that this data remains secure is of paramount importance. AI and ML are at the forefront of cybersecurity efforts, encrypting data, monitoring for breaches, and ensuring that sensitive information like credit scores and financial histories remain out of the hands of malicious actors.

Accessibility And Inclusivity

Traditional credit scoring methods have often excluded vast segments of the population due to insufficient credit history. With AI and ML, alternative data sources, like utility payments or even social media activity, can be used to assess creditworthiness.

This approach helps improve credit scores for those with limited credit history and makes the financial system more inclusive.

Transparent Credit Scoring Models

Traditionally, credit scoring models were seen as ‘black boxes,’ with consumers often left in the dark about the specific factors influencing their scores. With AI’s interpretability tools, there’s a move towards more transparent credit scoring.

These tools break down the reasoning behind credit decisions, allowing consumers to understand better the factors affecting their scores and make informed decisions.

Chatbots And Virtual Financial Advisors

AI-powered chatbots and virtual advisors are becoming the first point of contact for many individuals with queries about their credit scores. These bots, working 24/7, can answer questions, provide guidance on credit improvement, and even assist in dispute resolution, ensuring that help is available at any time.

Continuous Monitoring And Alerts

AI systems can monitor an individual’s credit file in real-time, providing instantaneous alerts for any significant changes or potential fraudulent activities. This constant vigilance ensures that individuals can respond immediately to any changes in their credit status, mitigating potential risks.

Behavior-Based Scoring Models

Beyond just looking at one’s credit history, AI and ML can analyze individual behaviors, like spending habits, savings patterns, or even online behavior, to predict their creditworthiness.

Such behavior-based models provide a more holistic view of an individual’s financial health, allowing for more nuanced and personalized credit scores.

Simplified Loan Approval Processes

Traditionally, loan approvals were time-consuming and heavily reliant on credit scores. With AI and ML, financial institutions can now analyze a myriad of data points quickly, streamlining the loan approval process. This reduces the waiting time for consumers and ensures that more comprehensive data is considered, potentially benefiting those with borderline credit scores.

Integration With Personal Financial Management (PFM) Tools

One of the emerging trends is the seamless integration of AI-powered credit scoring systems with personal financial management tools. These platforms, which help users budget, save, and invest, now incorporate real-time credit score insights. With AI at the helm, PFMs can suggest financial actions aligning with broader financial goals while optimizing credit scores.

For instance, if the tool recognizes a user is overspending in a particular category, it might advise a budget cutback not just for saving purposes but also to maintain a healthy credit utilization ratio. This holistic approach ensures that an individual’s financial picture, from everyday spending to long-term credit health, is managed synergistically.

In Conclusion

AI and machine learning are not just reshaping the landscape of credit scoring; they’re revolutionizing the entire spectrum of personal finance. The multitude of applications, from real-time monitoring to integrations with financial management tools, underscores the transformative potential of these technologies. As we further embrace this tech-driven approach, individuals are better equipped, informed, and empowered in their financial journeys.

The fusion of AI with credit management symbolizes a proactive step towards a future where technology doesn’t just predict our financial trajectory. Still, it actively helps chart a path to financial success.

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In a conversation with Fortune, Binance CEO Richard Teng discussed the cryptocurrency exchange’s intentions to transform into a more conventional financial institution. This strategic shift aims to correct previous errors and adjust to the increasingly rigorous regulatory environment for digital currency exchanges.

With a background in financial regulation, Teng is confident that his expertise, combined with Binance’s robust technological infrastructure, will drive the company towards its objective of being a top global exchange. As part of this transformation, Binance plans to work closely with financial regulators and governments to ensure compliance with applicable rules and guidelines. This will foster a smoother and more secure experience for its users and help solidify the exchange’s reputation within the global financial community.

Teng will work to meet Binance’s regulatory requirements.

As part of its efforts to adhere to regulatory requirements, Binance has been proactively cooperating with regulators and governments across the globe. This allows the company to understand the intricacies of each jurisdiction better and create customized approaches for aligning its operations with local regulations. By doing so, Binance ensures compliance and fosters a sense of trust and legitimacy among its users, ultimately contributing to the company’s overall success. Through effective communication and collaboration with authorities, the world’s leading cryptocurrency exchange aims to make crypto trading more secure, transparent, and accessible for everyone, regardless of geographic location.

Binance is also working towards expanding and diversifying its range of products.

In addition to focusing on regulatory compliance, Binance is also working towards expanding and diversifying its range of products and services. The company plans to move beyond digital currency trading and incorporate more traditional financial services such as prime brokerage and asset management. This expansion strategy aims to provide a comprehensive financial ecosystem for its users, catering to varying investment needs and preferences.

By offering a diverse portfolio of services, Binance aspires to establish itself as a frontrunner in the evolving digital finance landscape, securing a competitive advantage over other players in the industry. Binance seeks to solidify its position as a go-to platform for novice and experienced investors.

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Tencent Holdings, a leading Chinese technology company, has recently experienced a significant 10% increase in third-quarter revenue. This growth can be attributed to a resurgence in its gaming sector following the easing of regulatory restrictions previously imposed by the government. The company’s online advertising sales also rose due to the COVID-19 pandemic, which pushed more businesses to adopt digital marketing strategies than ever before.

WeChat, a messaging platform, is also operated by Tencent — the world’s largest video game company. Tencent reported revenues of 154.6 billion yuan ($21.4 billion) for the quarter ending in September. This figure represents an impressive 29% increase compared to last year’s period, demonstrating the company’s continuous expansion and dominance in the digital entertainment industry. Tencent’s strong performance largely stems from its incorporation of innovative technologies and services across its platforms, which cater to the diverse and ever-changing needs of users around the globe.

During this period, Tencent’s domestic games revenue grew by 5%, bolstered by popular titles such as the multiplayer role-playing game “Lost Ark” and the shooter game “Valorant,” produced by Riot Games. In addition to the success of these titles, the company also benefited from increased microtransactions and in-game purchases, further contributing to overall revenue growth. Industry analysts predict that continued success for these flagship games and an exciting lineup of future releases could bolster the company’s domestic revenue even further in the coming years.

Tencent’s online advertising segment saw a notable 20% increase in revenues, while the company’s fintech division experienced a 16% sales growth.

The online advertising boom can be attributed to a rise in businesses investing in digital marketing and shifting towards targeted advertising practices. On the other hand, growth in the fintech division can be traced back to the integration of new payment methods and the increasing adoption of mobile banking services.

These significant expansions are also connected to wealth management services and online transaction enhancements. Consequently, more individuals and companies can now access and use sophisticated financial tools and resources, significantly contributing to the overall growth of the marketplace. Integrating digital platforms has also helped streamline transactions, making the process more efficient and convenient for users while encouraging further expansion in the sector.

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We are now very close to the end of the year, and you will be busy planning for 2024. One of your plans could be to sign up for Social Security. If that is the case, there are several factors that you need to keep in mind before you sign up for Social Security. Along with these factors, you also need to consider new changes to Social Security that could impact your benefits. In this article, we will detail points to consider before you claim Social Security in 2024.

Points to consider before you claim Social Security in 2024

Following are the points to consider before you claim Social Security in 2024:

Determine your full retirement age

Your full retirement age (FRA) is the age when you are entitled to your full benefits. The FRA depends on your birth year. For example, those born between 1943 to 1954, the FRA is 66 years. The FRA increases by 2 months for every birth year after 1954, i.e., 66 years and two months for those born in 1955, 66 years and four months for 1956 and so on.

Although you can claim Social Security well ahead of FRA (as early as age 62), claiming early will result in you getting a reduced monthly payout for life.

A point to note is that Social Security may be forced to reduce benefits in about 10 years’ time unless lawmakers come up with a way to manage an impending funding shortfall. In case lawmakers fail, you don’t want to further reduce your benefits by claiming them before FRA.

Check if the estimated benefit meets your expectations

It is very disappointing if your Social Security check is much smaller than what you expected. Thus, it is important that you have an idea beforehand of your benefit amount. You can easily do that by creating an account on the Social Security Administration’s website.

If you find that your benefits would be much smaller than your expectations, then you could consider postponing your filing beyond 2024. It is important for you to know that you can boost your benefits by delaying claiming the benefits past FRA.

Whether or not you plan to work next year

If you plan to work and claim Social Security, it is possible but not recommended. It is because the Social Security Administration (SSA) may withhold some of your benefits in this case.

For instance, if you are only 63 and working, and intend to claim Social Security next year, then the SSA will withhold $1 in Social Security per $2 of earnings if your income is more than $22,320 in 2023.

The amount withheld isn’t lost forever, as the SSA will add it to your benefits once you reach FRA. However, the money won’t be available to you immediately. Thus, it is better that you decide beforehand whether or not you plan to continue working and claim Social Security.

Social Security changes in 2024

Above, we detailed the points to consider before you claim Social Security in 2024. Now, we will detail the Social Security changes in 2024 that could impact your benefit amount, and in turn, your decision to claim the benefits.

COLA increase

The COLA raise for 2024 will be just 3.2%, significantly less than in 2023 but still more than the 2.6% average over the past couple of decades. This increase will impact all recipients differently depending on the type of benefit and when they claimed it.

More income will be taxed

In 2024, the maximum amount of earnings subject to the Social Security payroll tax will jump to $168,600, compared to $160,200 now. This increase, however, impacts mostly those with high salaries.

Workers pay a 7.65% tax from their salary towards Medicare and Social Security, called FICA (Federal Insurance Contributions Act). This 7.65% includes 1.45% towards Medicare, and the remaining 6.2% is for Social Security, and applies only to the taxable maximum, i.e., $168,600 for next year.

According to the SSA, about 6% of workers who pay Social Security taxes have income higher than the taxable maximum every year.

Increase in maximum Social Security benefit

In 2024, the maximum Social Security benefit for a person retiring at full retirement age will increase to $3,822 from $3,627 this year. This increase will mainly benefit those claiming Social Security at FRA.

Higher spousal and disability benefits

Average benefits of widowed mothers with two children will rise to $3,653 per month next year from $3,540 presently. Similarly, the average benefits will increase to $1,773 per month (from $1,718 now) for aged widows and widowers living alone. The average benefit for disabled workers with a spouse and one or more children will rise to $2,720 from $2,636.

Higher earnings test

Those who plan to continue working, as well as claim Social Security next year, will be subject to a higher earnings test. The income exempt from the earnings test will rise to $22,320 next year, compared to $21,240 in 2023. As noted above, the SSA will withhold $1 in benefits for every $2 in earnings above that limit. The earnings test, however, doesn’t apply if you reach FRA.

More SSI payment standards

In 2024, the SSI Federal Payment Standard for individuals who receive Supplemental Security Income (SSI) benefits, as well as Social Security, will rise to $943 per month in 2024 from $914 in 2023. It will increase to $1,415 from $1,371 a month for couples.

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Money is a major source of stress for many of us. This shouldn’t come as a surprise. Without money, we can feel anxious and insecure since we do not have the means to meet our basic needs.

In fact, according to a Capital One and Decision Lab survey, more than three in four (77%) Americans are anxious about their financial situation.

But what happens if we worry too much about money? It can negatively affect our mental and physical health, preventing us from living our best lives. Additionally, when money is causing stress in a marriage, it can damage the relationship.

The good news is that if you suffer from money anxiety, you have some things you can do to stop worrying and start thriving. Here are some tips to help you:

1. Understand your relationship with money.

Understanding your relationship with money is the first step to overcoming money anxiety. Are there any beliefs you hold about money? Are there any fears or concerns you are most concerned about? By understanding how you relate to money, you will be able to identify and challenge any negative thoughts or beliefs you may have.

For instance, if you believe money is scarce and that you’ll never have enough, this belief likely contributes to your anxiety. The more you challenge this belief and start thinking about money as abundant and flowing easily to you, the more relaxed and confident you’ll feel.

2. Create a budget.

Establishing a budget is an effective way to eliminate money anxiety. Why? A budget lets you see where your money goes by tracking your income and expenses. You can use this information to make informed financial decisions and prevent overspending.

Choosing the right budgeting method is important, so choose one that works for you and stick with it. You can find various online resources and financial counselors to help you create a budget. But I suggest you start with these free budgeting tools.

3. Identify your thought patterns.

Finding a healthy way to express your emotions can be helpful when dealing with overwhelming feelings. It is for this reason that a journal is considered a useful tool in managing your mental health. By keeping a journal, you will be able to:

• Manage your anxiety
• Become less stressed
• Take care of depression

By journaling, you can improve your mood and control your symptoms:

• Identifying and prioritizing your problems, fears, and concerns
• You can better control your symptoms by tracking symptoms each day so that you can recognize triggers and learn how to prevent them from happening
• Positivity is encouraged and negative thoughts and behaviors are identified

Keeping a journal when you’re stressed or anxious can help you identify what’s making you feel that way. In order to reduce stress, you’ll need to identify the problems that are causing your stress and work towards resolving them.

In particular, you may want to keep a worry journal. It helps to acknowledge worries, capture them on paper, and release them.

If you want to start a worry journal, here are some tips:

• All your money worries, big and small, should be written down.
• Time yourself for three minutes and make a list of what you need to do.
• Create a page for each worry and get to the bottom of it.
• For two weeks, write down your worries as they arise.
• What is your biggest financial worry? Write it down.
• Be specific.

4. Build an emergency fund.

You can use an emergency fund to cover unexpected expenses, such as job loss, medical emergencies, or car repairs. If something happens, you can fall back on your emergency fund for peace of mind.

It is recommended that you save at least three to six months’ worth of living expenses in your emergency fund. After you’ve saved up an emergency fund, you can focus on saving for other financial goals, such as a down payment or retirement.

5. Improve your financial situation.

I know. This is obvious. If you change your financial situation, you can also stop worrying about money.

The question is, how do you actually enact material change? The following tips will help you get started:

Get out of debt.

One of the biggest sources of money anxiety is debt. As such, you should develop a plan to pay off your debt as soon as possible if you are in debt. Choosing a debt repayment method that works for you is important, so find one that works for you and stick to it.

Consider consolidating your high-interest debt into a lower-interest loan if you have a lot of it. By doing so, you can make your debt payments more manageable and pay it off faster.

Another debt-reduction option is the debt snowball strategy. This strategy involves paying off debts based on their size, regardless of interest rates. With each balance you knock out, you gain momentum.

Increase your income.

When you’re struggling to pay your bills, think about ways to earn more money. Consider starting a side business, taking on a part-time job, or asking for a raise at your current job. Increasing your income can have a significant impact on your finances.

Automate your finances.

Automating your finances is one of the best ways to stay on top of your budget. You can do this by setting up automatic transfers from your checking account to your savings account and paying your bills automatically. By doing this, you won’t have to worry about forgetting payments or overspending.

Invest for the future.

You can also improve your financial situation by investing. Over time, investing your money can help you reach your financial goals and grow your wealth.

Do your research and choose investments that are right for you among the many investment options available. If you need help choosing investments and creating an investment plan, you can speak with a financial advisor.

Manage your money.

Your bank account and financial goals will always benefit from wise spending. Also, it improves your sense of security and reduces your financial anxiety.

In short, take control of your finances by learning how to manage them.

Improve your credit score.

Despite what you may think, this isn’t irrelevant. Financial institutions, landlords, and vendors utilize credit scores extensively.

Following a few simple steps can help you improve your credit score. These include opening accounts that report to credit bureaus, maintaining low balances, and paying your bills on time.

Invest in yourself.

It is important to invest in yourself if you want to improve your financial future. Learning new skills, networking with other professionals, or starting a business are some options. And, of course, improving your financial literacy.

When you invest in yourself, you will be able to earn more and achieve your financial goals more quickly.

6. Change your mindset.

One of the most important things you can do to stop worrying about money is to change your mindset. Instead of focusing on what you don’t have, focus on what you do have. Be grateful for the money you do have, and believe that you are capable of achieving your financial goals.

When you have a positive mindset about money, you’re more likely to make sound financial decisions and attract abundance into your life.

7. Share your financial goals with others.

People who share their goals with friends and family are more likely to achieve them, according to a Dominican University study.

Here are some advantages of specifically sharing your financial goals:

• Accountability. You’re more likely to achieve your goals if someone else is keeping track of your progress. If you are saving for a down payment on a house with your partner, for example, sharing your goal will keep you both motivated and contribute to your financial goals.
• Support. You can also seek support and advice from others when sharing your financial goals. Your friends and family can offer encouragement and advice if you are struggling to reach a goal.
• Collaboration. Working together with a partner or spouse can help you achieve your financial goals. By doing this, you will be able to save money and reach your goals more quickly.

As an added benefit, you’re more likely to make good financial decisions when you have the support of other people. Furthermore, sharing your financial goals with others can help you develop an aligned financial plan. As a result, your financial life can be more fulfilling.

8. Know what you can and cannot control.

Whenever you feel like you’re struggling with chronic worry, ask yourself, “What am I able to control?” By doing this, you will be able to be more proactive when you are able to make a difference. In addition, this mindset can relieve your worries when you realize you don’t need to take any action.

What you can control with money:

• Expenses. Budgets can help you keep track of where your money is going. In other words, you must track your income and expenses each month to make sure you are spending less than you make.
• Savings. By setting financial goals and creating a savings plan, you can control your savings. Depending on your situation, this might involve setting up automatic monthly transfers.
• Investments. Investment products can be chosen according to your needs and risk tolerance. Additionally, you can track your investments and adjust your portfolio.

What you can’t control with money:

• The economy. Your finances are affected by the economy, but you cannot control it. Job losses and income reductions, for instance, can result from a recession.
• The stock market. The stock market is volatile, and you can’t control it. If you diversify your portfolio and invest for the long term, though, you’ll reduce your risk.
• Interest rates. Fed rates are not under your control. There are, however, financial products that offer competitive interest rates.
• Taxes. Tax rates can’t be controlled, but you must pay taxes on income and investments. To minimize your tax liability, you should work with a tax advisor.

Your financial goals can be reached by understanding what you can and cannot control with money. It will also relieve money worries.

9. Have routines.

Setting money routines can also be calming. For example, check your accounts before you’re stressed. Ideally, this is at a time of day and place when you’re calm.

“If you’re only looking at your financial situation when you’re already anxious about it, then you’re reinforcing anxiety as the trigger for financial behavior. Having a calm environment while you think about money can help rewire your instincts,” Amanda Clayman, a financial therapist, told The Cut.

Knowing when to stop is also important. “For example, I create a schematic for my clients to consult when they get anxious. It includes opening your accounts, looking at your numbers, paying your bills, and making sure that everything is on time,” adds Clayman. “Once you get to the bottom of that list, that’s it — you’re done.”

Alternatively, you can use meditation, therapy, or exercise to treat residual anxiety.

10. Get professional help.

Speaking with a professional can also help reduce financial stress. Options include:

• Free financial counseling. There are many organizations that offer free financial counseling. A financial counselor can help you create a budget, manage your debt, and plan for the future. Find a free financial counselor near you by searching the National Foundation for Credit Counseling or by contacting the Financial Counseling Association of America.
• Government assistance programs. People can get financial assistance through a number of government programs. Basic necessities like food, housing, and healthcare can be provided through these programs. You can find out whether you are eligible for government assistance programs at Benefits.gov.
• Financial planning apps. You can track your progress towards your financial goals using financial planning apps. You can use these apps to track your spending, calculate your budget, and invest. YNAB, Mint, and Personal Capital are popular financial planning apps.
• Financial advisors. Working with a financial advisor may be a good idea if you need more comprehensive advice. An advisor can help you manage your risk, invest your money, and develop a financial plan. Note, however, that financial advisors typically charge fees.

FAQs

What are some of the most common money worries?

There are a number of common money concerns, including:

• A lack of money to cover basic expenses like food, shelter, and transportation.
• Being buried under debt, such as credit card debt or student loans.
• Not having enough saved for retirement.
• Being able to cover unexpected expenses, such as a medical emergency or car repair.
• Giving children or grandchildren a financial legacy.

Why do people worry about money?

Various factors contribute to people’s worry about money. For example, some people may have grown up in poverty or have experienced financial hardship as a child. Others may be struggling with debt or struggling to meet basic needs. Some may be worried about how they will pay for their expenses in the future.

How can I change my mindset about money?

It is important to change your mindset about money if you want to stop worrying about it. Rather than seeing money as a source of stress, consider it as a tool for achieving your goals.

If you want to change your money mindset, here are some tips:

• Focus on what you have, not what you don’t have. Even if you don’t have much money, be thankful for what you have.
• Visualize yourself achieving your financial goals. By doing this, you will remain motivated and focused.
• Repeat positive affirmations to yourself. It might be helpful to say, “I am abundant,” or “Money flows to me easily.”

What if I am struggling to stop worrying about money on my own?

There are a number of resources available to help you stop worrying about money on your own. Consult a financial advisor, therapist, or counselor if you are experiencing financial difficulties. You can get help developing a financial plan, managing your stress, and overcoming any negative beliefs you might have about money.

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In an ever-changing economic landscape, the prospect of a recession can cast a shadow of uncertainty over businesses of all sizes. In this article, we unveil invaluable insights and strategies from experienced business leaders that can help guide you through any upcoming economic challenges. Whether your workplace already feels the effects of a downturn or wants to be prepared for the future, these money-saving tips will empower you to weather the storm and emerge stronger than ever.

Review Your Software Subscriptions

“Reviewing your software subscriptions can be a quick way to reduce costs. Work out what functionalities you need, and whether you’re currently paying for things you don’t need.” — Phil Norton, Founder of Leave Dates

In today’s digital age, software subscriptions have become integral to business operations. However, subscribing to numerous software solutions without assessing their necessity can lead to unnecessary expenses. Phil Norton founded the online holiday tracker — Leave Dates (dotcom). He suggests that businesses should regularly review their software subscriptions to ensure they are not overpaying for functionalities they don’t need.

When reviewing your software subscriptions, consider the following:

• Assess Functionality: Determine the essential functionalities your business requires and ensure that your software subscriptions align with these needs. Remove any redundant software that adds to your costs without providing tangible benefits.
• Negotiate with Providers: Contact your software providers and explore the possibility of negotiating better pricing or customized packages that suit your specific requirements. Many providers are open to negotiation, especially for long-term contracts or bulk subscriptions.
• Utilise Free Alternatives: Investigate if there are free or open-source software alternatives that can replace some of your paid subscriptions without compromising quality.

By proactively managing your software subscriptions, you can significantly reduce costs and improve the financial health of your workplace.

Cut Meeting Expenses

“When possible, have virtual meetings to reduce travel costs and make the best use of meeting spaces for crucial events.” — Carl Jenson, Founder of Compare Bank.

Meetings are an integral part of business communication and collaboration, but they can also be a source of significant expenses, especially when they involve travel and accommodation costs. Carl Jenson, the Founder of Compare Bank, emphasises the importance of cutting meeting expenses by adopting virtual meeting solutions.

Here are some tips to cut meeting expenses:

• Embrace Virtual Meetings: Leverage technology to conduct virtual meetings whenever possible. Video conferencing tools can bring your team together without the need for costly travel arrangements.
• Optimise Meeting Spaces: Make efficient use of your office meeting spaces. Ensure they are reserved for essential meetings and events, eliminating unnecessary expenses on space and amenities.
• Plan Ahead: When in-person meetings are necessary, plan well to secure the best deals on travel and accommodation. Look for discounts and group rates to reduce costs.

By prioritizing cost-effective meeting solutions, your workplace can reduce expenses while maintaining effective communication and collaboration.

Negotiate Better Deals with Suppliers

“One of the easiest ways to save money for your company is to negotiate better deals with suppliers.” — Jamie Irwin, Director at Straight Up Search

Suppliers play a crucial role in the success of any business, and the terms of your supplier agreements can significantly impact your financial bottom line. Jamie Irwin, Director at Straight Up Search, advises businesses to negotiate better deals with suppliers to cut costs actively.

Here’s how to negotiate better deals with suppliers:

• Vendor Assessment: Evaluate your current suppliers and their pricing structures. Identify areas where costs can be reduced or terms can be renegotiated.
• Leverage Buying Power: If your business has a significant purchasing volume, use it as leverage to negotiate discounts or favorable terms with suppliers. Suppliers often value long-term relationships and may be willing to offer concessions.
• Payment Terms: Explore flexible payment terms with your suppliers. Extending payment schedules can provide your business with improved cash flow.
• Explore Alternatives: Don’t hesitate to seek out alternative suppliers who may offer competitive pricing or better terms. Healthy competition can work to your advantage.

By actively engaging with your suppliers and exploring negotiation opportunities, you can unlock potential savings that directly impact your workplace’s financial stability.

Encourage a Culture of Cost-Cutting

“Encourage staff members to provide their suggestions for cost-cutting measures and acknowledge their efforts in building a more cost-effective workplace.” — Carl Jenson, Founder of Compare Bank

Creating a workplace culture that values cost-cutting can be a powerful strategy for long-term financial stability. Carl Jenson, Founder of Compare Bank, emphasizes the importance of involving employees in identifying and implementing cost-saving measures.

Here’s how to encourage a culture of cost-cutting:

• Open Communication: Foster an environment where employees feel comfortable sharing cost-saving ideas. Hold regular brainstorming sessions or establish suggestion boxes to gather input.
• Acknowledge Contributions: Recognize and reward employees for their cost-cutting suggestions that are implemented. Incentives can motivate your team to actively participate in finding savings.
• Set Cost Reduction Goals: Establish clear cost reduction goals and involve employees in achieving them. When everyone shares the responsibility, the results can be remarkable.
• Training and Awareness: Provide training and awareness programs that educate employees about the importance of cost-cutting and how their efforts contribute to the organization’s financial health.

By involving your entire workforce in the pursuit of cost-cutting initiatives, you reduce expenses and create a more financially responsible and engaged workplace.

Implement Process Improvements

“Another way to save money is by improving your company’s processes. This can include streamlining workflows, reducing waste, and optimising resources.” — Jamie Irwin, Director at Straight Up Search

Efficient and streamlined processes can lead to significant cost savings for your workplace. Jamie Irwin, Director at Straight Up Search, highlights the importance of implementing process improvements to enhance operational efficiency and reduce unnecessary expenditures.

Here’s how to implement process improvements:

• Workflow Analysis: Conduct a thorough analysis of your workplace’s workflows to identify bottlenecks, redundancies, and areas where improvements can be made.
• Waste Reduction: Identify sources of waste in your processes, whether it’s excess materials, time, or resources. Implement measures to reduce waste and enhance efficiency.
• Resource Optimization: Optimise the allocation of resources, including human resources and equipment, to ensure they are used effectively and not wasted.
• Automation: Explore opportunities for process automation, which can streamline tasks, reduce manual labour, and minimise errors.

By continually seeking ways to improve processes, you can create a workplace that operates more efficiently, saving both time and money.

Increase Office Efficiency

“To save money on rent and upkeep, re-examine your office space needs and think about downsizing, rearranging, or using flexible workplaces.” — Jamie Irwin, Director at Straight Up Search

Office space is a significant expense for many businesses. Jamie Irwin, Director at Straight Up Search, suggests reevaluating your office space requirements and exploring ways to increase office efficiency.

Consider these strategies to increase office efficiency:

• Downsizing: If your office space exceeds your needs, consider downsizing to a smaller, more cost-effective location.
• Rearrangement: Optimise your existing office layout to better use available space. This may involve rearranging workstations or furniture.
• Flexible Workplaces: Explore flexible workplace options, such as hot-desking or co-working spaces, which can reduce the need for a fixed office space.
• Remote Work: Embrace remote work arrangements when feasible, allowing employees to work from home or other remote locations, thereby reducing office-related costs.

You can reduce overhead expenses by re-evaluating your office space requirements and making efficiency-driven changes.

Embrace Technology

“Technology can be a powerful tool for reducing costs and increasing efficiency.” — Jamie Irwin, Director at Straight Up Search

In today’s digital age, technology offers numerous opportunities to cut costs and enhance productivity. Jamie Irwin, Director at Straight Up Search, emphasizes the significance of embracing technology to achieve financial savings.

Here’s how to embrace technology for cost savings:

• Automation: Implement automation solutions for routine tasks, such as data entry, report generation, and customer communication. Automation reduces labor costs and minimizes errors.
• Digital Communication: Utilise digital communication tools like email, messaging apps, and video conferencing to reduce the need for physical meetings and paper-based communication.
• Cloud Computing: Consider migrating to cloud-based solutions, which can reduce the costs of maintaining physical servers and infrastructure.
• Energy Efficiency: Invest in energy-efficient technologies like LED lighting and smart devices to reduce electricity consumption and lower utility bills.

By harnessing the power of technology, your workplace can operate more efficiently and achieve substantial cost savings.

Prioritise Employee Training

“Offering opportunities for training and development can aid in workforce retention, lower turnover costs, and boost overall productivity.” — Jamie Irwin, Director at Straight Up Search

Investing in your employee’s growth and development can profoundly impact your workplace’s financial health. Jamie Irwin, Director at Straight Up Search, highlights the benefits of prioritizing employee training.

Here’s how to prioritize employee training for cost savings:

• Skills Enhancement: Provide training programs that enhance employees’ skills and knowledge, making them more proficient in their roles.
• Retention Benefits: Offering training opportunities can improve employee satisfaction and retention, reducing the costs associated with hiring and training new staff.
• Productivity Gains: A well-trained workforce is more productive and efficient, leading to increased output and revenue generation.
• Competitive Advantage: Skilled employees can give your business a competitive edge in the marketplace, attracting and retaining customers.

Investing in employee training creates a more capable workforce and realizes long-term financial benefits through improved productivity and reduced turnover costs.

Conclusion

In the face of economic uncertainty and the potential for a recession, implementing practical money-saving tips for your workplace is essential.

As you navigate the challenges of the economic landscape, remember that a combination of these money-saving tips can empower your workplace to thrive in the face of adversity.

Incorporating these strategies into your workplace culture and operations can position your business to weather economic downturns and emerge stronger, more resilient, and financially sound for the future.

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The landscape of investment banking is undergoing a profound transformation fueled by data analytics and technological advancements. As the industry adapts to changing market dynamics and client expectations, embracing data-driven strategies has become essential. This article delves into five data analytics trends reshaping investment banking: AI and augmented analytics, data governance, data ops, cloud-based analytics, and adopting multi-cloud strategies. From harnessing the power of AI to ensuring data quality and utilizing cloud infrastructure, these trends drive innovation and position investment banks for future success.

1. AI and Augmented Analytics: Shaping Decision-Making

Artificial Intelligence (AI) and augmented analytics are game-changers in investment banking. AI-powered algorithms can process vast datasets, extracting meaningful insights that empower bankers to make well-informed decisions. Augmented analytics combines AI with human intuition, enhancing the interpretability of data. Investment banks leverage AI to predict market trends, assess risk, and identify investment opportunities. Augmented analytics, on the other hand, guides users through complex data analysis, enabling even non-experts to derive insights and make informed choices.

2. Data Governance: Ensuring Accuracy and Compliance

Data governance has emerged as a cornerstone of successful investment banking in an era where data is a prized asset. Effective data governance ensures data accuracy, consistency, and compliance with regulatory standards. Investment banks are establishing robust data governance frameworks to manage data across its lifecycle, from acquisition to disposal. Banks build trust with clients, regulatory bodies, and stakeholders by maintaining data integrity and security.

3. Data Ops: Streamlining Data Operations

Data Operations (Data Ops) is a methodology that combines data engineering, integration, and collaboration to streamline data-related processes. Data Ops facilitates efficient data movement, transformation, and analysis in investment banking, where data flows from multiple sources. Investment banks are adopting Data Ops to accelerate data delivery, enhance collaboration between teams, and improve the overall quality of data-driven insights.

4. Cloud-Based Analytics: Agility and Scalability

Cloud-based analytics is reshaping the way investment banks handle data infrastructure. Cloud platforms offer agility, scalability, and cost-efficiency, allowing banks to process and analyze large datasets without heavy on-premises investments. With cloud-based analytics, banks can quickly deploy analytical tools, scale resources as needed, and enhance collaboration among remote teams. This trend is particularly relevant as banks seek to harness data from various sources for real-time insights.

5. Multi-Cloud Strategy: Diversification and Resilience

Investment banks are increasingly adopting multi-cloud strategies to diversify their cloud service providers. This approach mitigates risks associated with vendor lock-in, enhances data redundancy, and ensures business continuity. By distributing workloads across multiple clouds, banks can optimize performance, reduce downtime, and enhance data security. Multi-Cloud strategies also provide flexibility in choosing the most suitable services from different providers.

FAQs: Decoding Data Trends in Investment Banking

Q1: What is augmented analytics, and how does it benefit investment banking?

A: Augmented analytics combines AI and human insights to simplify data analytics in investment banking. It helps investment bankers, including non-experts, derive meaningful insights from complex data, enhancing decision-making and enabling quicker responses to market shifts.

Q2: How can investment banks implement effective data governance?

A: Effective data governance involves establishing clear data ownership, defining data quality standards, implementing data security measures, and adhering to regulatory requirements. Regular audits and monitoring ensure ongoing compliance and accuracy.

Q3: What advantages does a multi-cloud strategy offer to investment banks?

A: A multi-cloud strategy reduces reliance on a single cloud provider, ensuring resilience against outages and enhancing data security. It also enables banks to leverage the strengths of different cloud platforms, optimizing performance and cost-efficiency.

Conclusion

The future of investment banking is intricately tied to data analytics and technological innovation. The trends discussed in this article – AI and augmented analytics, data governance, Data Ops, cloud-based analytics, and multi-cloud strategies – are driving transformative change. As investment banks adapt to new market realities, these trends enable more intelligent decision-making, streamlined operations, enhanced data quality, and improved scalability. By embracing these trends, investment banks position themselves to navigate the complexities of the modern financial landscape and provide superior services to clients while maintaining regulatory compliance. As the data evolution continues, investment banks that leverage these trends will thrive in an increasingly competitive and data-centric environment.

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The European Central Bank (ECB) has declared the initiation of a two-year “preparatory stage” for introducing a digital euro that will allow people who share the same currency in 20 countries to make digital transactions securely and for free. The preparatory stage will begin on November 1.

The ECB aims to establish regulations, select collaborators, and conduct trials for the new digital currency throughout this timeframe. The digital euro will function similarly to an internet-based wallet or banking account, providing enhanced security since it will be backed by the ECB instead of a private entity. This development comes as a response to the growing digitization of transactions and evolving payment models that are changing the financial landscape. By implementing a digital euro, the ECB aims to ensure that consumers can access a reliable, stable, and secure digital currency, thus fostering financial stability and innovation in the European Union.

Concerns about digital currency

Banking professionals and regulators have expressed apprehensions that a digital currency may enable a run on commercial banks in times of crisis while offering only minor improvements over existing accounts. These concerns stem from the idea that during economic turbulence, people may rapidly withdraw their funds from commercial banks to convert them into digital currency, exacerbating liquidity problems for these institutions. Proponents of digital currency argue that it provides enhanced security and accessibility, potentially revolutionizing the financial landscape by lowering transaction costs and fostering financial inclusion.

The digital currency is expected to generate a challenge in the payments industry, which U.S. credit card firms presently control. This disruption could potentially pave the way for alternative companies to gain a foothold in the market, encouraging innovation and offering more diverse options for consumers. In addition, it could challenge the existing power dynamics and drive some of the current key players to re-evaluate their strategies and services.

Exclusivity for Eurozone inhabitants and European citizens abroad

Making the digital euro available exclusively to inhabitants of the eurozone and European citizens living overseas aims to promote a sense of financial security and trust among members of the Eurozone as they navigate the economic landscape. By focusing on European citizens at home and abroad, the service provider ensures that its target audience receives tailored support and assistance, fostering a sense of unity and trust within the community as it embarks on this new and exciting venture.

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Goldman Sachs, the renowned investment bank, is reportedly reevaluating its venture into the consumer lending sector. This comes amid internal disagreements and challenges faced by the bank in its partnership with tech giant Apple, according to a recent report by the Wall Street Journal.

Goldman’s consumer lending journey

Goldman Sachs had made headlines when it collaborated with Apple to introduce a joint savings account. However, the enthusiasm within the bank seems to have waned. Some insiders have expressed regret over the initiative, with one executive reportedly stating that the bank should never have ventured into this domain.

The bank’s recent decisions reflect this sentiment. Goldman Sachs is in the process of divesting from GreenSky, a purchase it made just a year ago, and has already offloaded a significant portion of its personal loan portfolio.

Key decision-makers within the bank are contemplating exiting the remaining consumer lending products. This includes the Apple credit card and other associated Apple products, as well as the General Motors credit card. While discussions with American Express have taken place, no concrete decisions have been made.

The bank’s foray into the credit card sector in 2019 had initially raised eyebrows, with many consumer banks viewing Goldman as a potential competitor. However, the bank’s recent actions suggest a shift in strategy, potentially marking the end of its consumer lending experiment.

Challenges and criticisms

The upcoming earnings report is anticipated to shed light on the bank’s performance in this sector. There are expectations of a decline in profits, and stakeholders are keen to hear from CEO David Solomon about the bank’s renewed focus on its primary Wall Street operations.

Internally, there has been criticism of the consumer lending venture. Many hold the view that the initiative has been more problematic than beneficial, with some pointing fingers at Solomon for the bank’s aggressive expansion in this area. The unit overseeing credit cards and GreenSky has reportedly incurred significant losses, and there have been regulatory concerns surrounding the card business.

The Apple partnership

The partnership with Apple has also faced its share of challenges. Issues with the Apple credit card’s loss rates have been a point of contention. Additionally, there have been discussions about allowing Apple to assume a larger role in the partnership, potentially taking on the responsibility of lending for new credit card expenditures.

Goldman Sachs has also been under scrutiny by the Consumer Financial Protection Bureau regarding its credit card account management practices.

Goldman Sachs’ journey in consumer lending has been tumultuous. With internal disagreements, regulatory challenges, and partnership issues, the bank is at a crossroads. The upcoming earnings report and decisions regarding its partnerships will be crucial in determining the future direction of this venture.

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The rapid adoption of artificial intelligence (AI) in the financial sector could pose significant risks to financial stability and lead to another crisis within the next decade, top regulators have warned.

In a recent interview with the Financial Times, Gary Gensler, chair of the U.S. Securities and Exchange Commission (SEC), said the concentration of power in a few dominant AI platforms is creating dangerous systemic risks that could trigger a crisis as early as the late 2020s.

It’s “nearly unavoidable” for AI to trigger a financial crisis within a decade, according to Gensler. What concerns regulators is the potential for herd behavior if many firms rely on the same underlying AI models and data aggregators.

For example, mortgage lenders might all use an AI system from one tech company to assess creditworthiness. If that model has flaws, it could lead to a surge in defaults and threaten the housing market.

I do think we will in the future have a financial crisis . . .[and] in the after action reports people will say ‘Aha! There was either one data aggregator or one model . . . we’ve relied on.’ Maybe it’s in the mortgage market. Maybe it’s in some sector of the equity market

Gensler added that AI’s “economics of networks” makes this scenario likely. The more companies use an AI system, the better its predictions become with more data. This creates a winner-takes-all environment where one or two AI models dominate an industry.

The problem of regulating ‘horizontal’ AI risks

Much of current financial regulation focuses on individual companies and sectors, which poses challenges for overseeing AI risks that cut across markets.

“It’s frankly a hard challenge […] It’s a hard financial stability issue to address because most of our regulation is about individual institutions, individual banks, individual money market funds, individual brokers; it’s just in the nature of what we do. And this is about a horizontal [matter whereby] many institutions might be relying on the same underlying base model or underlying data aggregator.”

The SEC has proposed requiring broker-dealers and investment advisors to disclose potential conflicts of interest in their predictive analytics. But Gensler said this “still doesn’t get to this horizontal issue” of interconnected AI dependencies.

U.S. regulators are now exploring cross-agency coordination and new oversight frameworks to monitor systemic AI risks, though progress has been slow. Gensler has raised the issue at international bodies like the Financial Stability Board.

The concentration risks of AI “as a service”

Another concern is the consolidation of AI supply among Big Tech firms. Companies like Google, Amazon, and Microsoft have robust cloud infrastructure to host complex AI models and sell them “as a service” to financial institutions.

“How many cloud providers [which tend to offer AI as a service] do we have in this country?”

This concentration creates single points of failure. If an AI model on Amazon’s servers has problems, it could impact many banks, insurers, and trading firms that rely on it.

Europe leads in AI governance

While U.S. regulators are still studying AI risks, Europe has taken more decisive action. THIS YEAR, the EU is set to pass legislation that imposes strict requirements around transparency, data privacy, and reducing bias in AI systems.

The SEC chair has an ambitious regulatory agenda targeting issues like climate change disclosures, cryptocurrency oversight, and private equity rules – all of which face legal challenges. Ensuring AI stability may be one of the most complex tests for U.S. regulators in the years ahead.

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Tech companies, with their fast-paced innovation and scaling ambitions, are not immune to the financial ebbs and flows that can cripple any business. When it comes to managing cash flow, the stakes are high, and the challenges are unique to this high-growth industry.

Common Cash Flow Issues for Tech Companies

According to the latest business data and reports curated by Exploding Topics, 90 percent of startups fail. Pretty encouraging, right?

Across basically all industries, the average failure rate for year one is 10 percent – meaning one out of every 10 businesses is no longer open 12 months after launch. That number skyrockets in years two through five when 70 percent of all new businesses will close up shop.

While you can’t look at all businesses in a vacuum, studying the trends is interesting. For example, first-time startup founders have a success rate of just 18 percent. But if there’s one statistic that stands out as a universal truth for tech companies, it’s this: 16 percent of all businesses fail due to cash flow problems.

Cash flow problems are the number one cause of failure outside of poor product-market fit and incorrect marketing strategies.

“Cash flow problems contribute significantly to the business failure rate in the United States,” Exploding Topics explains. “Most entrepreneurs who launch with insufficient funding, product or service prices that are not market-related, or optimistic sales projections end up with a failing startup.”

Tech companies are known for their fast-paced innovation and desire to scale past all issues and restraints ambitiously. However they often find themselves victimized by costly cash flow issues. Here are some of the big challenges:

Rapid Growth

Tech companies thrive on innovation, and R&D is at the core of their operations. However, pursuing cutting-edge technologies and product development can be a double-edged sword. While R&D is essential for staying competitive, it can strain a company’s cash flow due to its high costs. This includes expenses related to hiring top talent, procuring equipment, and conducting experiments. Without the proper prioritization and allocation of the R&D budget, things can go sideways quickly.

Expanding Workforce

As most tech companies scale, there’s a need to hire more employees to support the growth that’s happening. This is great, but it’s also a gamble. Hiring too quickly can lead to massive overhead and HR expenses. If sales slow down, management is left holding an expensive bag with nowhere to go.

Irregular Revenue

Combine all of the rapid growth with irregular revenue and things get sticky in a hurry. Tech companies often rely on the launch of new products or updates to generate revenue. This dependency on product release cycles can lead to irregular cash flow patterns. During the development phase, cash may be pouring into R&D and marketing, causing temporary imbalances in the company’s cash flow.

Subscription Challenges

The big trend for tech companies is to offer subscription-based products that deliver consistent and predictable recurring revenue. While this is nice in theory – and can be highly profitable once the business steadies – many companies fail to account for high churn rates. This is especially problematic when businesses use free and discounted trials to bring customers in the door. They might feel like they’re scaling rapidly, only to see 40 to 50 percent of these new users walk out the door within 30-60 days.

When you combine rapid growth with irregular revenue streams, it’s often like having a ticking time bomb beneath the surface of your business. Things might work well for a while, but it’s unsustainable. Eventually, something breaks. And that’s precisely why something must be done to counteract the underlying issues and improve cash flow…sooner rather than later.

5 Strategies for Dealing With Cash Flow Issues

If your company is struggling through cash flow issues, it’s essential that you don’t just sit back and hope things get better. Top tech companies – the ones that scale and thrive – implement proactive strategies for dealing with these underlying issues. Let’s explore a few of the top options you have available to you.

1. Optimize R&D Expenditures

To maintain a competitive edge in your company, you must invest in research and development. But as discussed above, investing too heavily in R&D can knock your cash flow and balance sheet out of whack.

One effective approach is to become more strategic by prioritizing critical projects that will deliver an immediate ROI. This ultimately boosts your cash flow and gives you more resources to focus on in the long-term ROI projects down the road.

Additionally, consider streamlining R&D processes to reduce costs and speed up the time-to-market. This may involve implementing agile methodologies or fostering cross-functional collaboration.

2. Master Customer Billing Cycles

As previously mentioned, many tech companies operate with subscription business models. The benefits of this are clearly documented – and you likely already know what they are – but the challenges are less commonly discussed. If you want to operate on a predominantly subscription-based model, that’s totally fine. (Many successful tech companies do.) You just need to have a plan for mastering customer billing cycles to have a more predictable cash flow.

One option is to implement tiered pricing models, which can help attract a wider range of customers and provide a steady stream of income. By offering different pricing tiers with varying features and services, tech companies can cater to cost-conscious customers and those seeking premium offerings.

Leveraging automated invoicing and payment systems is another crucial step. Automation reduces the risk of late or missed payments, improves billing accuracy, and frees up resources that would otherwise be spent on manual billing processes.

3. Form Strategic Partnerships

Have you ever considered building out strategic partnerships or collaborations with other tech companies? Assuming they aren’t direct competitors, this can open up new revenue and cost savings avenues.

Consider how entering into a joint venture or revenue-sharing agreement with a partner could complement some of your existing offerings. It could also open you up to entirely new customer bases, which paves the way for more customer onboarding and cash flow.

The key is to identify the right partners. This usually means finding:

• Companies that sell complementary products or services
• Companies that are not direct competitors
• Companies that serve a niche or segment of the marketplace that you don’t currently have access to
• Companies that can help you achieve lower expenses in certain areas

Now, it’s obviously not all about you. The other company is also going to want to find reasons to partner with you. That being said, it can take a lot of effort and due diligence to find the right partnership. However, once you do, it can instantly alleviate a lot of cash flow pressure.

4. Look to External Funding Options

In cases where internal cash flow is insufficient to support growth initiatives, tech companies can explore external funding options. These include seeking venture capital, angel investors, or crowdfunding.

Venture capital firms and angel investors often provide funding in exchange for equity, allowing tech companies to secure the capital needed for expansion. Conversely, crowdfunding involves raising funds from many individual investors or backers through online platforms.

If you do go down this route, carefully consider the terms and conditions of the funding source to ensure that it actually aligns with your company’s long-term goals and isn’t just a short-term stopgap.

5. Consider Chapter 13 Bankruptcy

Nobody wants to think about bankruptcy. However, if your cash flow issues are severe enough, it’s something to at least consider. And despite what most people think, it doesn’t necessarily spell the end of your business. In a lot of cases, it provides the relief you need to move on. It’s kind of like hitting the “reset” button.

“I like to think of Chapter 13 bankruptcy as a ‘pay what you can afford’ approach to dealing with overwhelming debt,” attorney Rowdy G. Williams explains. “It can be an uncomfortable 36 to 60 months, but there’s immense relief on the back end.”

Unlike other forms of bankruptcy, Chapter 13 gives you options for keeping your business. You basically spend three to five years paying what you can on your taxes and debts. (These debts usually come with a zero percent interest attached to them.) After that, you’re relieved from the responsibility to pay any remaining balance on certain types of debt.

With Chapter 13, you give yourself time and allow you to keep valuable business assets. While it’s not the perfect option in every instance, it’s often the best choice for tech companies and founders who can’t escape cash flow issues using other methods.

Put Your Business on the Fast Track for Success

There’s no perfect formula for success. Every tech company faces unique cash flow problems and circumstances. However, if you’re willing to lean in, understand the problems, and tackle each issue with proactive strategies proven to work, you’re much more likely to succeed. Hopefully, this article has given you some ideas and food for thought. Now, it’s up to you to get out and execute.

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