Tag Archives: FINTECH

Don’t get financial advice from NFL stars

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When it comes to financial investing, investors should not rely on advice from professional athletes who promote crypto-currencies or currency trading platforms.

In November 2021, cryptocurrency market prices were skyrocketing to new heights and Bitcoin was one of the red-hot. Concurrently, two well-known NFL football players, Green Bay Packers quarterback Aaron Rodgers and Los Angeles Rams wideout Odell Beckham Jr., stated that they would accept a portion of their 2021 salaries in the cryptocurrency during a month when Bitcoin hit an all-time high of $68,906 per coin. 

As often happens with volatile currencies and investments, Bitcoin market price has crashed from that November peak to a nearly 52 percent dive, reaching a January bottom of $33,076.

If ever there were a case of buyer beware with the products athletes endorse, this would be it. Most especially when that “product” is actually a volatile form of currency that can cost investors massive sums of money.

The sad fact is that the vast majority of people don’t truly understand how cryptocurrency works. And that group also includes most professional athletes who have advisers paid to guide their investments, as well as agents who find commercial opportunities to endorse products like Bitcoin.

It’s been assumed that athlete such as Odell Beckham Jr. has take a substantial financial hit in pay with Bitcoin.

It was reported by Darren Rovell that Beckham’s entire salary is now worth only $413,000 USD equivalent in Bitcoin as opposed to the $750,000 USD guaranteed by the LA Rams football team, excluding taxes. Once federal and state taxes are factored in, Beckham is projected to make around $35,000.

References:

  1. https://www.yahoo.com/lifestyle/odell-beckham-jr-suffers-major-085440249.html
  2. https://www.msn.com/en-us/sports/nfl/bitcoin-s-recent-crash-is-a-reminder-don-t-get-your-financial-advice-from-nfl-stars/ar-AAT8kiG

Fintech (Financial Technology) Investing

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  • “Ignoring technological change in a financial system based upon technology is like a mouse starving to death because someone moved their cheese.”  Chris Skinner
  • The integration of technology with financial services is today’s new and present reality. These technologies not only improve the efficiency and productivity of financial services but also enhance the customer experience.
    • Fintech is a hybrid industry of two nearly opposing parts—finance and technology
    • Fintech’s disruptions may transform not only the way we transact money but the definition of money itself
    • Financial technology is a rapidly growing industry.

    We’re on the precipice of a major evolution in the domestic and global financial services industry. How we send, receive, store, spend, and invest money may undergo a few radical changes.

    Fintech—“financial technology”—is an emerging hybrid industry that brings together legacy financial services and technological innovation. With this combination, the Fintech industry is likely to compete with and disrupt traditional financial services, especially banking.

    Financial technology is the driving force behind the rapid digitization of the world. Fusing the concept of financial services with new technology, fintech companies aim to improve traditional methods of moving money around by offering lower costs, time efficiency and improved access for businesses and consumers to manage their finances.

    The term fintech can describe many processes, such as online money transfers, mobile payments, loan management, or investments, all done digitally without the need for intermediary.

    There are countless examples of how Fintech is reshaping the world of money, commerce and financial services, but they all fall into three primary categories:

    • New tech (such as apps) that allow for monetary transactions online,
    • Digital money which is a blockchain technology-based alternative to cash and
    • The Internet of things (IoT)-enabled credit and loan services (which are replacing and digitizing traditional banking services).

    Naturally, fintech is often described as a disruptor of the finance world. The financial services once recognized as the domains of banks, brokerage houses and desktop computers are now available on mobile phones.

    It’s one thing to invest in a financial asset for the long term. It’s another thing to invest in the very source and infrastructure that may give all financial assets their substance, mobility, and meaning.

    Fintech’s growth is driven by three primary factors:

    1. Cryptocurrencies: Fintech’s fortunes are closely connected to the skyrocketing popularity of cryptocurrencies, such as bitcoin, and blockchain technologies that provide a safe, decentralized platform for them.
    2. Mobile devices: Smartphones, tablets and laptops are used for nearly everything these days, and it’s almost hard to imagine how we lived without them. None of these devices would have been able to thrive without the rise of mobile apps and related technology.
    3. Millennials: This generation is the most tech-savvy in U.S. history. Millennials are the first people to grow up with the internet and smartphones, and they’re on track to become the biggest wage earners, buyers and money managers since baby boomers.

    To invest in this rapidly evolving industry, you might consider paying attention to all the moving parts that feed into the engines of financial progress and disruption. In a way, the current areas of only scratch the proverbial surface of Fintech’s potential.

    1. https://tickertape.tdameritrade.com/investing/what-is-fintech-financial-technology-industry-15946
    2. https://paulmampillyguru.com/america-2-0/fintech-companies/
    3. https://finance.yahoo.com/news/top-10-best-fintech-companies-144738653.html

    Financial Technology (Fintech)

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    “There are more financial products for more consumers than you could ever imagine.” Fintech Startup Founder

    Fintech, or financial technology, refers to the technological innovation in the design and delivery of financial services and products. The term can apply to any innovation in how companies and people transact business, from the invention of digital money to double-entry bookkeeping. The technology in finance continues to evolve; advancements include the use of Big Data, artificial intelligence (AI), and machine learning to evaluate investment opportunities, optimize portfolios, and mitigate risks.

    Fintech refers to any business that uses technology to enhance or automate financial services and processes. The term encompasses a rapidly growing industry that serves the interests of both consumers and businesses in multiple ways. From mobile banking and insurance to cryptocurrency and investment apps, fintech has a seemingly endless array of applications.

    There are 326 Fintechs, according to one database, from one-stop shops such as PayPal Holdings Inc. and Revolut Ltd. to behind-the-scenes payment processors.

    Fintech companies integrate technologies (like AI, blockchain and data science) into traditional financial sectors to make them safer, faster and more efficient. Fintech is one of the fastest-growing tech sectors, with companies innovating in almost every area of finance; from payments and loans to credit scoring and stock trading.

    “Fintech’s disruptive potential was unleashed in mature markets such as the U.S. only recently, thanks to a confluence of factors: low interest rates, better technology, rising consumer demand, and a more permissive attitude toward nonbank finance”, according to Lionel Laurent, a Bloomberg Opinion Columnist. “Efficiency gains in software have kept products coming.”

    Fintech technology examples include:

    • Crowdfunding Platforms – Crowdfunding platforms allow internet and app users to send or receive money from others on the platform and have allowed individuals or businesses to pool funding from a variety of sources all in the same place. Instead of having to go to a traditional bank for a loan, it is now possible to go straight to investors for support of a project or company. 
    • Blockchain and Cryptocurrency – Cryptocurrency and blockchain are hallmark examples of fintech in action. Cryptocurrency exchanges connect users to buying or selling cryptocurrencies like bitcoin or litecoin. But in addition to crypto, blockchain help reduce fraud by keeping provenance data on the blockchain. And while cryptocurrency and even blockchain have certainly taken parts of the investment world by storm in recent years. 
    • Mobile Payments – It seems as though everyone with a smartphone uses some form of mobile payments. In fact, according to Statista data, the global mobile payment market is on track to surpass $1 trillion in 2019. Using increasingly sophisticated technology, services have emerged that allow consumers to exchange money and payments online or on mobile devices – including popular payment app Venmo. 
    • Insurance – Fintech has even disrupted the insurance industry. In fact, insurtech (as it’s been so-called) has come to include everything from car insurance to home insurance and data protection. Additionally, insurtech startups are increasingly attracting funding. 
    • Robo-Advising and Stock-Trading Apps – Robo-advising has disrupted the asset management sector by providing algorithm-based asset recommendations and portfolio management that have increased efficiency and lowered costs. Since the rise of more advanced technology that can analyze various portfolio options 24/7, financial institutions have adapted to offer online robo-advising services. Perhaps one of the more popular and big innovations in the fintech space has been the development of stock-trading apps. When once investors had to go directly to a stock exchange like the NYSE or Nasdaq, now, investors can buy and sell stocks at the tap of a finger on their mobile device. And with inexpensive and low-minimum apps, investing from anywhere with any budget has never been easier. 
    • Budgeting Apps – One of the most common uses of fintech is budgeting apps for consumers, which have grown exponentially in popularity over the years. Before, consumers had to create their own budgets, gather checks, or navigate excel spreadsheets to keep track of their finances. But after the fintech revolution prompted the development of financial services apps, consumers can easily and efficiently keep track of their income, expenses and other budgeting tools that have revolutionized the way consumers think about their money. Budgeting apps help consumers track their income, monthly payments, expenditures and more – all on their mobile device. 

    With fintech innovations, firms can better meet customer needs and expectations. With clear benefits, fintech is quickly changing the landscape of investment management. Advancements include the use of robo-advisers, Big Data, AI, and machine learning to evaluate investment opportunities, optimize portfolios, and mitigate risks. In the area of financial recordkeeping, blockchain and distributed ledger technology are creating new ways to record, track, and store transactions for financial assets.

    Additionally, artificial intelligence (AI) is having a major impact on the finance industry as part of fintech. AI is being used to analyze investment opportunities, optimize portfolios, and mitigate risks, among many other functions, but the applications go well beyond the investment decision-making process. For example, automated wealth advisers (or “robo-advisers”) may assist investors without the need for a human adviser, or they may be used in combination with a human adviser. The desired outcome is the ability to provide tailored, actionable advice to investors with greater ease of access and at lower cost.

    The annual Forbes Fintech 50 compiles some of the hottest fintech platforms on the market worth noting.

    Fintech is changing the landscape of financial and investment management. At its core, Fintech exist to help companies, business owners and consumers better manage their finances, processes, and lives by utilizing specialized technology, software and algorithms.

    References:

    1. https://www.investopedia.com/terms/f/fintech.asp
    2. https://www.cfainstitute.org/en/research/fintech
    3. https://www.bloomberg.com/news/articles/2021-10-07/fintech-s-explosive-growth-has-regulators-scrambling-lionel-laurent
    4. https://www.thestreet.com/technology/what-is-fintech-14885154
    5. https://www.forbes.com/fintech/2021/#1e6de3bc31a6
    6. https://www.forbes.com/sites/elizahaverstock/2021/06/08/the-future-of-personal-finance-fintech-50-2021/?sh=2ce3aba8710a

    2020 Consumer Electronic Show | Las Vegas

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    2020 CES | Sunday, January 5, 2020, Las Vegas, Nevada

    It is easy to observe the pending presence and impact of #CES2020 Show on Las Vegas. With more than 170K plus expected attendees, the 2020 CES Show and attendees literally take-over the “City of Sin”.

    Today, listened to CES Tech Talk Podcast entitled “Making Space for Drones“, which featured Steve Dickson, Administrator, Federal Aviation Administration (FAA) and Mark Blanks, Director, Virginia Tech Mid-Atlantic Aviation Partnership. They discussed facilitating and regulating the safe operation and testing of drones. During the CES Tech Talk, the FAA Administrator emphasized that if someone operates a drone, they’re considered a pilot and are subject to FAA regulations and guidelines. FAA is expected to have a significant presence at 2020 CES.

    Las Vegas Weekend Happy Hour

    Additionally, my intent was to locate the best on the Las Vegas strip or just off the strip venue for a weekend happy hour and to simultaneously watch NFL Wild Card Football games.

    Thus far, made a brief stop for food and drink at MB Steak located adjacent to off-strip Hard Rock Resort and Casino. From the hour of 4 pm to 5 pm, the restaurant’s small bar area offered a very limited happy hour menu of cocktails and appetizers. Although enjoyed the happy hour offerings of brisket sliders and Gentlemen’s Mule, the venue was absent of life and nearly empty. And, the bartender seemed a bit surly and provided service with a pained expression.

    Another weekend happy hour venue worth a visit is the Tex-Mex El Segundo Sol’s Loco Hour from 4 pm to 7 pm at Fashion Show Mall. The Tex-Mex restaurant offers a Loco Hour menu at the bar consisting of quesadillas, tacos, Margaritas, draft beers and well drinks to name a few. The daily Loco Hour draws a decent size crowds of Las Vegas locals and visitors stopping for nourishment and hydration. The food was okay and the beverages were above average. Overall, an excellent venue for an early evening happy hour.

    People Watching

    Afterwards, spent time wandering the nearby casinos and people watching.

    First brief wandering was inside the Wynn Casino. And, must say that I was impressed by the design of the entrance and the holiday decorations that adorned the lobby and entrance to the casino.

    After the Wynn, I crossed the elevated pedestrian walkway and wandered into the Palazzo to sit in the casino and people watch in the vicinity of Bar Luca. Regretfully, smoking remains permissible and a guy smoking a foul smelling non-American cigarette forced me to leave a prime people watching area.

    Afterwards, I found a perch in Venetian near the blackjack pit to people watch. Unfortunately, the new location paled in comparison to the seat in Palazzo and concluded that the people to watch were in the Wynn and Palazzo.

    Overall, I terrific day wandering around the Las Vegas Strip casinos.