Financial Statements – Business Operations Blueprint
“Boring, Useless, and Depressing” That’s what most people think about their Financial Statements.
This clip shows you how to easily create Financial Reports that give you an exciting view into the profitability and financial health of your organization.
Duration : 0:9:1
Impact of Globalization on Indian Financial Services Industry
BY
Dr.V.V.S.K.PRASAD.,M.Com.,M.B.A.,Ph.D.,
Professor and Head
E-Mail: vskprasad.vempati@gmail.com
ABSTRACT
Reforms of the financial sector constitutes the most important component of India’s programme towards economic liberalization. The recent economic liberalization measures have opened the door to foreign competitors to enter into our domestic market. Deregulation in the form of elimination of exchange controls and interest rate ceilings have made the market more competitive. Innovation has become a must for survival.
Many of the providers and users of capital have changed their roles all over the world. Financial intermediaries have come out of their traditional approach and they are ready to assume more credit risks. As a consequence, many innovations have taken place in the global financial sector which have its own impact on the domestic sector also. The emergences of various financial institutions and regulatory bodies have transformed the financial services sector from being a conservative industry to a very dynamic one. In this process this sector is facing a number of challenges.
In this changed context, the financial services industry in India has to play a very positive and dynamic role in the years to come by offering many innovative products to suit the varied requirements of the millions of prospective investors spread throughout the country.
Overview
Reforms of the financial sedctor constitutes the most important component of India’s programme towards economic liberalization. The recent economic liberalization measures have opened the door to foreign competitors to enter into our domestic market. Deregulation in the form of elimination of exchange controls and interest rate ceilings have made the market more competitive. Innovation has become a must for survival.
Many of the providers and users of capital have changed their roles all over the world. Financial intermediaries have come out of their traditional approach and they are ready to assume more credit risks. As a consequence, many innovations have taken place in the global financial sector. Which have its own impact on the domestic sector also. The emergence of various financial institutions and regulatory bodies have transformed the financial services sector from being a conservative industry to a very dynamic one. In this process this sector is facing a number of challenges.
Growth in financial services (comprising banking, insurance, real estate and business services), after dipping to 5.6% in 2003-04 bounced back to 8.7% in 2004-05 and 10.9% in 2005-06. The momentum has been maintained with a growth of 11.1% in 2006-07.
Impressive progress in information technology (IT) and IT-enabled services, both rail and road traffic, and fast addition to existing stock of telephone connections, particularly mobiles, played a key role in such growth.
Because of Globalization, the financial services industry is in a period of transition. Market shifts, competition, and technological developments are ushering in unprecedented changes in the global financial services industry. Organizations in this highly competitive and increasingly regulated industry will especially need to focus on making themselves more:
Ø Adept to face increasing transaction volumes, regulation and the integration of previously disparate global markets
Ø Agile at identifying and managing risk
Ø Operationally efficient
Ø Customer – centric
Ø Optimized in both business & technology
In this scenario, spearheading IT initiatives has become critically important.
Major spending initiative priorities tend to focus on automation to reduce costs and lessen risk, along with using BPO to gain efficiency and allow internal IT organizations to focus on strategic initiatives. Delivery of these capabilities at a high efficiency level but at low costs is one of the major success factors for any financial services business.
OBJECTIVE:
The objective of the present paper is to examine the status of Financial Services Industry in India and to study the challenges before this industry due to globalization
To enhance their competitive advantage in this changed environment, financial services institutions are increasingly harnessing new technologies to provide superior customer offerings and streamline internal processes. Today’s dynamic marketplace demands that financial services providers emphasize on technologically advanced, feature-rich solutions, that can operate in real-time and with the highest degree of precision and reliability.
Information technology is increasingly being considered as critical to the strategic direction and the day-to-day operation of financial services firms.
Growth in financial services is being bolstered by the opportunities of demography, emerging markets and ever more innovative products and services. Yet, organisations also face the challenges of mounting competition, more complex regulation and ever more exacting customer expectations. Effective growth strategies are therefore likely to cut across all operating processes and functional boundaries. Key priorities include ensuring that the business model takes full account of customers’ needs, tax, financial and regulatory considerations and the organisation’s capacity to change the way it does business. In turn, the objectives and criteria for success need to be clearly measured.
A survey of more than 250 financial services executives carried out by PricewaterhouseCoopers in 2006, found that respondents believe that existing customers will be their main source of organic growth. Creating operations that can retain and deliver profits from customers through their lifetime will demand a significant investment in data gathering and relationship management and may therefore require a shift in the prevailing cost-income model. This includes a re-think of training, reward and performance management strategies including a move from volume-based incentives to rewards geared to client satisfaction and the profitability of the customer over the lifetime of the relationship. Success will also require timely and insightful metrics on customers’ evolving attitudes and preferences.
The Financial Services & banking industry is changing at a fast pace. These changes are throwing up fresh challenges like managing complex technological divergence in a converging market. Banks strive to constantly offer more to the existing customer base. To achieve this, they emphasize on more targeted technology investments and high-quality service. To remain competitive, financial institutions will have to renew their commitment to investing in new technology strategically — to reduce costs, improve efficiencies, and boost revenue-generating initiatives.
Taking full note of these challenges, OFS puts together its banking practice to help financial institutions improve enterprise performance, comply with regulatory mandates, boost operational efficiency, and better serve their customers through OFS’ spectrum of solutions and services derived from proven track record of domain expertise.
The Challenges
Among the key IT challenges facing the Financial Services industry today is:
- Preserving investments in old systems while leveraging new technologies to drive down transactions costs, expand and improve customer service
- Integrating enterprise wide disparate systems to gain operational efficiencies
- Substantially reducing time for deployment of new systems
- Reducing IT costs and obtaining better ROIs for new investments in the long-term
Only a carefully thought out long-term IT strategy backed by execution, implementation and support capability can meet these challenges successfully.
Today’s financial services firms face mounting pressures on all fronts:
- Credit markets are creating industry turmoil
- Tightening credit guidelines that threaten revenue streams
- Growing reporting and risk management obligations like Sarbanes-Oxley, Know Your Customer and Basel II
- The difficulties of sustaining growth in overly-saturated markets
- Innovative products that address the needs of a diverse client base such as retirees and young emerging and ethnic segments
- Growing concerns over customer data security and identity management
- Increasing competition not just from traditional competitors, but from other organizations that expand their service offerings
- The complexities that arise from mergers and acquisitions and from expanding into the global marketplace
Whether we are trying to maintain competitive advantage, looking for ways to position our self better for mergers or acquisitions or expanding into the global marketplace, the challenges are as complex as they are varied. And while we deal with these fundamental concerns, we are met with increasing demands from investors, regulators and customers.
The Answers
How do we succeed in this environment? The first step is to ensure that we have the infrastructure and solutions to support our business strategy. With the right systems in place, our organization can more rapidly comply with regulations, operational risk and security issues. We can also open up new product offerings, reduce customer turnover and minimize fixed costs and maximize productivity. In addition, the companies can leverage outsourcing opportunities to reduce overhead, while still enjoying the scalability they need to support future growth or new initiatives.
The process of globalization has paved the way for the entry of innovative and sophisticated financial products into our country. Since the Government is very keen in removing all obstacles that stand in the way of inflow of foreign capital, the potentiabilities for the introduction of innovative international financial products in India are very great. Moreover, India is likely to enter the full convertibility era soon. Hence, there is every possibility of introduction of more and more innovative and sophisticated financial services in our country.
Realizing all these factors, the Government of India has initiated many steps to reform the financial services industry.
Ø The Government has already switched over to free pricing of issues from pricing issues by the Controller of capital issues.
Ø The interest rates have been deregulated
Ø The private sector has been permitted to participate in banking and mutual funds and the public sector undertakings are being privatized.
Ø The Finance Act, 1992 has brought into effect large scale amendments in the tax structure of long term capital gains.
Ø The Finance Act, 1994 has given a further boost by lowering the lock – in period from 3 years to 1 year, in order to get the entitlement as a long – term capital asset.
Ø The SEBI has liberalized many stringent conditions so as to boost the Financial Services Industry.
In this changed context, the financial services industry in India has to play a very positive and dynamic role in the years to come by offering many innovative products to suit the varied requirements of the millions of prospective investors spread throughout the country.
*****
Dr.V.V.S.K.PRASAD
http://www.articlesbase.com/finance-articles/impact-of-globalization-on-indian-financial-services-industry-737929.html
Productivity Metrics – Business Operations Blueprint
Can you determine the health and profitability of your organization from just 5 numbers? You could if you had Productivity Metrics in place!
Metrics are simply pieces of data that allow you to get a snapshot look at your organization. Productivity Metrics can also be early warning signals of:
* Being out of compliance
* Critical materials shortages
* Violations of service level agreements
* Missed customer service targets
* Dangerous levels of debt, cash, expenses, absenteeism, and inventory shrinkage
In this video clip, we talk about how to easily determine what metrics you need and how to collect them.
Duration : 0:9:50
Financial Executive Recruitment – How Companies Select The Right Candidate
Financial executive recruitment is a very important process in any company. A lot of thought must be put into selecting the proper candidates for the post a good candidate will be an asset to the firm and so many companies actually outsource the process of recruiting their financial executives.
Business houses both large and small acknowledge that the process of recruiting financial executives is a very important process for the business. This is one reason that the top executives put in a lot of thought and effort when it comes to recruiting anyone involved with the financials of the business. Such is the importance of selecting the proper candidates for the post of financial executives in a company that there are companies set up for the very purpose of selecting financial executives and offer their services to all forms of businesses all over the world.
These financial executive recruitment companies are only too aware of the importance of selecting the right candidate for the post. They know that the talent of the financial executive will determine the productiveness of the business and so they assure the management of the best candidates from their data bases. All businesses large and small ate increasingly turning to these recruitment services to get the best executives to fill the vacancies in their companies.
These financial services recruitment companies are not limited to recruiting financial executives for the banking and the financial organizations but even for the accounting departments of all other businesses that need their services. Blue chip and regional companies are one of their largest clients. These recruitment services cater to companies needs for executive as well as director and CEO level executives as well.
So whatever the need for a business organization they invariably turn to a recruitment service provider who has a good reputation for providing a timely list of the most appropriate financial candidates for interview. The grass root sorting is done by the financial services and the final interview and selection is done by the top management of the business that requires the executive. A lot of effort is cut out for the management and they are presented with a list of the most eligible candidates for final interview.
In order to locate and recruit the best financial recruits for the industry it is important to have in-depth knowledge of the financial world and its requirements. You must also have the ability to attract the best candidates who are looking for a change and even those who are well settled but do not know that you have something better to offer them than they are getting presently. Financial recruitment services have this ability. They are in constant contact with the candidates they have placed and are doing well for themselves. These services can attract and recruit the very best financial candidates in the shortest time possible.
Getting the right employee is the first step towards better productivity. You definitely do not want someone who will change jobs a few months or a year down the line. Financial executive services ensure that the candidates they get you stick with you for longer periods of time by choosing the right candidate for the job.
Abhishek Agarwal
http://www.articlesbase.com/careers-articles/financial-executive-recruitment-how-companies-select-the-right-candidate-703286.html
Fed the One to Blame for Financial Crisis?
Ben Bernanke’s ideas may be the the one to blame for the global financial crisis but Andrew Smithers, founder of Smithers & Co, is pleased that Bernanke was reappointed as Fed chief, in spite of the errors of the past. He tells CNBC’s Martin Soong why.
Duration : 0:3:31
Industry Survey Reveals Truth of How Today’s Financial Storm is Affecting Usa’s Financial Planners
Over the past three years, my firm has done considerable research on the opinions held, and the strategies employed, by financial advisors. Our research covers a full range of RIAs and CFP® professionals. Most recently, to understand the effects of this watershed recession on financial advisors, I had my staff conduct a comprehensive survey during and following the NAPFA Practice Management and Technology Management Conference in Las Vegas in late October, 2008.
Survey Backdrop
Just as I was preparing to walk onstage at the St. Regis in Aspen, CO on Sept. 15, 2008 to present the practice management keynote address for CapWest Securities’ annual Sales and Compliance Conference, the attendees were rocked by giants falling. Every newspaper provided to the attendees by the luxurious resort boldly announced that Lehman, Merrill Lynch, and AIG, three of the biggest names in the financial world, were crashing.
While I had been expecting such events for over a year, the stunned looks on the faces and the befuddled comments whispered among the crowd were reminiscent of the Day of Infamy, December 7, 1941, when the Japanese bombed Pearl Harbor. Disaster had befallen us, and the offices of America’s financial planners were right on battleship row at the center of the action.
It matters little whether this is the result of markets innocently gone wrong, massive political, corporate and bureaucratic bungling, or a nefarious conspiracy by financial titans to centralize the entire world’s banking power in their hands. Financial bombshells are continuing to fall, doing injury to our clients, our peers, and even to some of us personally.
Against this backdrop, I wanted to discover what effect our current crisis is having on financial advisors. What are they doing in the face of battle? How does this compare to the classic strategies they should be employing? Have the current tumultuous market conditions confirmed the validity of classic strategies, or have they turned conventional wisdom on its head?
Importantly, how many planners are using today’s highly visible investor dissatisfaction as their marketing opportunity of the decade? How are their clients reacting to current market gyrations? What would have happened if more investors had searched out skilled financial advisors? This was a completely anonymous survey done so that there would be no way to trace any answers to any particular industry professional to make sure that the answers were as candid as possible.
Summary survey results are provided and analyzed below.
Q1. What effects have the recent tumultuous market conditions had on you?
Analysis: A full 71 percent of the advisors surveyed say they are working twice as hard as they used to do because of the current market scene, and of those, at least half are feeling strained by it. These advisors are reaching out to their clientele because they want to stabilize them and to keep them from doing anything rash. Some of those surveyed were personally very affected by the emotional turmoil expressed by their clients and the pressures accompanying investment losses. A much smaller percentage had their attention on their own reduced revenue. A minority claimed that the situation had no effect.
Q2. How have your clients reacted to recent market gyrations?
Analysis: Advisors reported nearly a 50/50 split of clients panicking vs. those who aren’t. It is questionable if this is due to differences in how different advisors are handling their clients, but it appears that many advisors have bolstered their image with clients as a result of how they have handled the crisis. In almost every case, it is clear that advisors realize that it is important to be visible and to show they are there to help. Most advisors said they carried out a rigorous client-services campaign as the market was falling, but many advisors admitted that they were less than skilled in dealing with it.
Q3. How have these adverse market conditions affected your firm?
Analysis: The strain of the chaos is showing up as inefficiencies in the day-to-day activities of some firms. Generally, advisors saw this as a time to put the brakes on expansion. A small number of advisors gravitated toward increased marketing to dig themselves out and continue to expand their firms.
Q4. What decisions have you made about your financial planning practice as a result of recent events?
Analysis: Of all the questions, this got the most varied answers, with different financial planners focusing on very different areas, or no area at all. As evidence of their overall conservative tone, more than half see no cause for decisions of any kind and are not noticeably shaken—but they are watchful and cautious. Smaller numbers (fairly evenly divided) have reaffirmed their purpose, resolved to increase service and efficiency, are embarking on marketing plans, or are pulling back to ride out the rough times ahead. There is no consensus on the best way to proceed.
Q5. Do you see any opportunities for yourself from the current problems in the markets and their effects on financial planners?
a. If so, what?
b. If not, why not?
Analysis: To a high degree, NAPFA members reported that they feel like this is their time, and they need to get the word out that they are the “go to” guys and gals. However, their actions were passive—except for a couple of firms that are looking at what has occurred as a really big opportunity. For some advisors, additional business is simply showing up, apparently without much effort on anyone’s part. It looks like some firms would like to be more aggressive, but they are too conservative to venture out. A small percentage of respondents saw no opportunities.
Q6. What do you feel could be done to improve your income now?
Analysis: More than half of those surveyed agree that marketing actions are needed to bolster their income, even those firms that feel they are too encumbered to take steps in that direction. Some have the viewpoint that nothing could or should be done, and it is just a matter of time until things sort out. A smaller number feel their best option is to bolster profits by improving internal operations or expanding services to existing clientele.
Q7. If more investors had consulted CFP® professionals, would it have affected what happened in the markets?
a. If so, how?
b. If not, why not?
Analysis: About a third of the advisors interviewed felt that getting more people into the hands of professionals with proper training (for the sake of our question, we used the phrase CFP® professionals as the example) would have had an effect on what happened in the markets. Two-thirds did not. Of the two-thirds who did not, more than half named poor regulation or institutional investors as the responsible parties. A smaller percentage of advisors felt it was just the way the market is. A very small group said that the key is having the right people working with individual investors.
Summary Analysis.
The majority of respondents to the survey view themselves as proactive. But, from an exterior perspective, they are just reacting to what happens in the market and with their clients, rather than exerting control where they could. The advisors who are the most in control of their practices—both in operations and especially in communications and marketing—are doing the best. More and more advisors see the need right now to strengthen their practices in order to stay competitive.
Unfortunately for the majority of firms, their marketing is woefully inadequate to take advantage of the opportunities presented by our current crisis. These firms have the technical foundation, but they are not taking the actions needed to move themselves onto center stage. This does not match the passion they obviously feel about their profession, nor does it create the additional demand from investors that these firms are seeking.
In a period of stress, clients are increasingly likely to change investment advisors. About 50 percent of the time, clients leave because they are upset with the planner’s handling of them, and about 50 percent of the time they leave due to what they consider is unacceptable investment performance. While very few markets have been kind to investors, we hope it is helpful to know what your peers are experiencing. It is likely to also be helpful to get some expert advice on how to weather the storm.
Practice management and marketing strategies are “sciences” -specific actions will produce specific results. When approached this way Marketing, Productivity and Time Management, Long-term Strategies with Real Time Planning and Efficient Utilization of Personnel—all can be directed to the benefit of advisors who are willing to take advantage of the current economy and move their firms toward more “Face Time,” more qualified prospects and growth despite everything.
Copyright© 2009 Creative Business Strategies, Inc. All Rights Reserved.
David Sanders
http://www.articlesbase.com/economics-articles/industry-survey-reveals-truth-of-how-todays-financial-storm-is-affecting-usas-financial-planners-726605.html
Worker Productivity FAIL [HD]
Analista financeiro é flagrado com fotos picantes ao vivo na TV Nossa Ao Vivo
http://www.youtube.com/subscription_center?add_user=MixComedia
Duration : 0:0:36
The Financial Burden of Cancer
A discussion with NCI’s Dr. Robin Yabroff about the data behind a new report on national expenditures on cancer care. More information about the new report is available on the Benchmarks website. Click on the banner at the top of the page to be routed there.
Duration : 0:5:47
Financial Professional Tuition.flv
LCBS Dhaka
Financial Professional Tuition.
Limerick Collage of Business Studies (LCBS) Ireland is a high quality professional collage and corporate training center, which has been education and assisting students of all nationalities in perusing a professional financial career since its establishment. LCBS courses are all globally recognized by employers worldwide. LCBS has achieved an ACCA & CIMA Approved Learning Partner status.
LCBS Dhaka, located in Dhanmondi, will deliver the same high quality as LCBS Ireland. LCBS Dhaka students will enjoy the benefits of focused academic tuition, career development expertise, financial English Language assistance, assistance with instates registrations and returns
LCBS Corporate department provides up-skill and update courses for employees and trainees of all levels in the finance sector. Increased Knowledge and efficiency improves productivity in the workplace
Full time and part time accountancy courses available-
ACCA Qualification (The Association of Chartered Certified Accountants)
CAT, Certified Accounting Technician (Awarded by Oxford Brookes University)
B.S.C Honors in Applied Accounting.
CIMA Professional Qualification (Chartered Institute Of Management Accountants)
CBA, Certificate in Business Accounting (Awarded by CIMA)
Cert IF, Certificate in Islamic Finance (Awarded by CIMA)
Duration : 0:5:8
Lee Jong-Wha: “V-shaped” Asian recovery in 2010
Asia’s developing countries should achieve an aggregate 6.6% GDP growth or more in 2010, says Professor Lee Jong-Wha, Chief Economist of the Asian Development Bank. On the sidelines of the Asian Financial Forum 2010 in Hong Kong, Professor Lee says his strong regional forecast contrasts with an expected U-shaped recovery globally.
Duration : 0:8:7