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Investing During a Financial Crisis

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Investing During a Financial Crisis

COVID-19 has had an impact on everything from our health to the way we shop and even global markets. Few countries have escaped the virus, leading to a huge economic crisis.

While it might not seem like the best time to invest, now is actually a great opportunity for investors. So, what should you know about investing during a financial crisis?

Why could now be a great time to invest?

There are a lot of potential benefits of investing during an economic crisis. As the global markets have been hit, you’ll find stocks and shares are cheaper now than ever before. This gives you the opportunity to invest in stocks that would have otherwise been unaffordable before the crisis.

Most people are getting out of their investments due to fear and panic. This leaves the markets wide open for new investors. It is said that the worst thing you can do during a financial crisis is nothing. So, if you’re willing to take the risk, now could be the perfect time to invest.

High risks, high rewards

While there are benefits of investing during a crisis, the high risks can’t be ignored. Not all markets will recover, meaning there is a big chance you could lose what money you do invest.

Of course, the higher risks mean the rewards are also higher. During a financial crisis, you can expect investments to be riskier but much more lucrative if they pay off.

A great way to minimize the risk is to use the services of financial advisers. They will be able to help you determine which investments pose a lesser risk.

Things to avoid when investing during a crisis

If you do decide to invest, there are a few things you’ll want to avoid. For example, if you don’t have any savings to fall back on, investing is probably a bad idea.

You’ll also want to avoid touching your portfolio for at least seven years. So, if you’re looking to touch your investments soon, you’re not going to find it profitable to invest during a crisis. Also, ensure you’re choosing less risky stocks where you can. Some stocks are definitely considered riskier than others, particularly in sectors that are struggling to survive.

Overall, investing during times of financial crisis can provide great opportunities for businesses. However, it can also be extremely risky. It’s important to understand your options and seek professional advice if you don’t want to lose further money during an economic downturn.

FinTech

FinTech: 5 Automation Trends That Are Impacting the Industry Right Now

The FinTech industry is rapidly moving toward automation as a source of efficiency. The move to specific tools and software programs increases speed and accuracy of processes. It also keeps employers on their toes as they need to quickly evolve and learn. Many of these programs previously required specialized training and adaptability.
Automation helps with repetitive procedures and simplifies complicated tasks. It increases accuracy and safety measures, while minimizing human error. Expectations indicate that the FinTech industry will extend its tech integration significantly over the next four years.


Here are 5 automation trends that are impacting the Fintech industry right now:

1. Human Resources Management: This used to be one of the least automated components, but now software like Workday and 15Five are building platforms to assist workflow with related systems that support employee management. Finance companies increasingly recognize that their people are the most valuable resource and need to be managed more thoughtfully as well as efficiently.

2. Mobile: Finance companies now consider mobile oriented tech as part of the core work-flow. The industry relies heavily on its ability to get work done efficiently. FinTech continues to utilize software which speeds up communication and productivity. Mobile used to be considered a security risk by the financial industry. Now it is considered a way to enhance productivity as well as provide more flexible workflow for employees.

3. Customer Support: More automation is taking over customer service. This support has advanced tremendously with certain software programs that include internal systems to support customers. Software systems such as Fresh Desk and Zen Desk are cutting down on the head count needed for customer service departments in some companies. But more importantly these new systems are improving the customer experience and the lives of the people working in those departments.

4. Billing/Invoicing: Payments systems like Stripe, invoicing and billing systems like Freshbooks, and more advanced ERP systems Netsuite are examples of programs that continue to reinvent the way FinTech is automating business functions. Although many companies are still at least partially stuck in the past of creating manual invoices and payments, these automated systems are increasingly taking over. Both the customer and the vendor win with greater automation in this area. Vendors cut costs and get paid faster. Customers benefit from this greater efficiency of vendors with lower prices or higher value delivered for their purchases.

5. Accounting: Xendoo, Zoho, Quicken online and other systems automate are automating the accounting, bookkeeping, and tax filing functions of businesses. Traditional accounting software, and human bookkeepers and accountants, still have an important role to play in this area, but the accounting business is rapidly changing as well due to technology. The number of people involved with these activities is likely to shrink dramatically as automation takes over more of these functions. Ultimately businesses and their customers will benefit from this via lower operating costs that allow for better value to be delivered rather than spent on administrative functions like accounting.

It is crucial for companies of all sizes to be knowledgeable about this trend and keep their business updated as automation continues to reinvent Fintech industry jobs. You have to be able to adapt quickly to these changes. Our previous ideas and habits of doing business are changing, and we have to keep up with those changes or be left behind by competitors who will adapt more quickly

Automation is impacting Fintech employees in a variety of complex ways so it’s critical for employees to have a greater understanding of and training on different software systems to ensure they keep up with the automation and benefit from it rather than viewing it as a potential threat to their jobs. There is no way to stop technology. All of us need to work hard to stay on the right side of its inevitable progress.