Assignment 6A- Identifying Opportunities in Economic &
Regulatory Trends
Economic trend: High-Interest
Online Cash Accounts
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I believe an
opportunity exists here for online-only banks rather than traditional brick and
mortar institutions. The need may arise for fintech savvy financial advisors to
help patrons transition from the local branches into unfamiliar online banking
territory.
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The prototypical
customers that may seize this opportunity are emerging online financial
institutions ready to ride the new wave of interest and comfort with online
banking. Tech confident financial advisors that are comfortable using and
selling fintech could create a space in the old school world of money
management.
·
I think that
exploiting this opportunity would prove to be difficult because traditional
banks are likely to move to join the few online banks already fueling this
trend. The space for managers or financial educators might be easier to enter
·
I think I saw this
opportunity because my small community bank was recently sold to a credit union
and I was checking out banking options, including online. I am so not ready to
give up Mandy and Tammy who I can call on personally if I have account
issues. Online-only makes me feel unsure.
Economic trend: Continuing
trend of debt overhang
·
Unfortunately, the
fact that people are living paycheck to paycheck presents opportunities. Uncertainty
and lack of available credit means buyers are using payday loan services, buy
here pay here high-interest car loans and the like. Cash only businesses could
prosper from the buying habits of debt-burdened consumers.
·
I think the
prototypical customers are high-interest predatory cash lenders, but also
discount retailers like dollar stores, thrift stores, and discount food
retailers.
·
I think that it will
be easy to exploit, in debt or not, consumers have basic needs and have consumer habits that are easy to predict and possibly manipulate.
·
I saw this opportunity
because I am interested in the elements of our society that keep broke people
broke. Everything is more expensive when one has bad credit, from buying cars
to home financing. As Americans become more and more comfortable with high levels
of debt in relation to their income, our collective vulnerability rises.
·
Regulatory
changes: 2020 Banking Regulatory Outlook. Breaking down this year’s federal
banking regulations
·
Due to the regulatory
shifts resulting after the emergence from the financial crisis, misconduct, and
trends moving away from globalization, opportunities present in the form of a
new approaches to companies’ financial resilience, ability to iterate,
innovate, and demonstrate resilience.
·
The prototypical
customer are those firms that deal in cybersecurity, financial analytics, risk
management and compliance.
·
I think it is
relatively easy to exploit for firms that already deal with similar banking
metrics of liquidity and exposure. This is a matter of tailoring the existing
services to adapt to regulatory shifts, not innovate, but could be lucrative.
·
I saw this opportunity
because I find the world of finance completely intimidating but am forcing
myself to learn more and get comfortable with the concepts. I know my personal
and business life is directly affected by these regulations, I should pay more
attention.
Regulatory
changes: H-1B, L-1 Visa Reforms on Tap for 2020
·
I think the
opportunity exists for services related to processing work visa paperwork,
procurement of American qualified workers, insurance providers for foreign
workers, etc. The intention of these restrictions is to protect American workers
and their wages. By its nature, opportunities should exist here.
·
The prototypical
customer, should these proposals be passed, is supposed to be the willing
American laborer. This could present training program opportunities to support
the development of qualified workers.
·
I think this is
somewhat easy to exploit. Either the focus on processing legal visas for
foreign workers, or preparing American workers to step into the jobs that they
profess to desire could be opportunities that emerge from these regulations
·
I found this
interesting on account of the fact that I have been witnessing first-hand the
change in the racehorse industry as a result of increased work visa regulations.
That reliable source of inexpensive immigrant labor is drying up. I have yet to
see American workers willing to take up the space, the hours are early and
relentless, the work is dangerous and exhausting. I am so interested to see
what happens.
Hi Sarah,
ReplyDeleteDevelopments in the banking industry can have a lot of impact on people’s daily finances. Online banking also makes me feel less secure than having a physical location to visit and withdraw cash. Opportunities in cybersecurity would increase, as there would be more threats of hackers gaining access to banking statements and records. Technology is becoming even more integrated into our daily lives and everything we do.
Re: post 1
ReplyDeleteI started banking with a “Mom and Pop” bank in Illinois in my teen years. It was amazing that they had me account pulled up by the time I had reached the service counter. That’s service. There’s also an element of trust there. Do you think many customers are willing to go online-only?
Re: part 2
Do you listen to the Dave Ramsey show. I have similar interests in this space. I try to encourage my coworkers to make healthy financial decisions.
Hard work and early hours combined put off a lot of potential employees. Even if the party is spot on. I work in a place where first shift starts at 4am and the work U.S.A. physically demanding for 10 hours a day. That’s why it’s called work, right?
Hey Sarah,
ReplyDeleteRegarding your online cash accounts, I think this economic trend is huge as not only is financial institutions becoming popular for online use but a lot of other services. With out world becoming so in tough with technology we consume the world in a way that does not need the help on a human hand. I think many small banks will be bought out by bigger firms as you said because my roommates bank he use to work for just got bought out. That being said the bigger banks have opportunity to grow their services into online services.
Hi! I think you made some very powerful points regarding very lucrative opportunities in the world. I agree, it is strange and fascinating how in the USA there seems to be a new method every day to keep the poor people poor and the wealthy wealthier. An understanding of this market may be the first step to fighting it in a profitable manner. In addition, the increased use of apps like Venmo and Cashapp has given rise to a massive market in online banking. In a rapidly digitalizing world, it makes sense to think of these things. However, as Pryor says, software development can take a lot of time and it is easy to lose to competition.
ReplyDelete