FINOMETRICSMBA (FINANCE MANAGEMENT)

DEPARTMENT OF

MANAGEMENT

STUDIES

29

NEWSLETTER FEBRUARY 2019

VOLUME 6 (61)

Insights

1) FINTECH- Changing Conventions

2) Business in Financial Technology

3) Innovation In Branch banking ! rough Intelligent Robotic Assistance

4) Technological Innovations In Yes Bank

5) Will Cryptocurrency Be A Sour-Grapes Story For India?

6) Cloud Telephone Is Easing ! e Process Of Personal Finance

7) FINTECH-Revolution or Disruption

8) Growth Of FINTECH In India

9) Emergence of FINTECH

10) Advancement In Banking Technology

11) FINTECH-Increasing or Decreasing start-ups?

12) Blockchain Technology

13) GAME CHANGER - High Frequency Trading

14) How To Overcome Financial Crisis?

15) Forensic Accounting

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FINTECH- Changing Conventions

Rithika . G

1828837

Regardless of other societal and administrative di" culties banks have perceived the signi# cance of computerized improvements and are working seriously on poten-tial arrangements and techniques.

Fintech, a blend of the words “Fi-nance” and “Technology,” is moder-ately a new and frequently indistinct term that applies to any developing innovation that enables customers or money related foundations to convey monetary administrations in more current, speedier courses than was customarily accessible .

Everything from a purchaser’s ca-pacity to go on the web and see their budgetary exchanges to applications that track spending to instruments that enable monetary establishments to settle on brisk loaning choic-es are all piece of the advancement of money related administrations.

Fintech is enabling customers to as-sume responsibility of their money related lives, prompting signi# cant-ly more prominent monetary educa-tion than any time in recent memory. It’s tearing down the old storehouses and propelling the shoppers’ bud-getary circumstance and results by utilizing trend setting innovation.

To put it plainly, the idea joins cus-tomary budgetary administrations with the most recent in advanced innovation and Big Data to make end clients’ lives simpler and better.

Few examples of Fintech Companies :Some notable organizations, for ex-ample, Personal Capital, Lending Club, Kabbage and Wealth front are cases of # ntech that have developed in the previous decade, giving new winds on money related ideas and enabling shoppers to have more e$ ect on their monetary results.

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! e development of # ntech is ex-pected in huge part to the open door it bears little players to contend on indistinguishable # eld from cus-tomary banks and budgetary foun-dations. Also, the arrangements o$ ered by # ntech organizations are never again “one size # ts all.” In-stead, they o$ er focused on – reg-ularly specialty – administrations that # ll the hole of a speci# c money related need, in some cases at much lower costs than those o$ ered by conventional budgetary suppliers.

Business in Financial Technology

Shanice Dias

1828840

! e money related innovation (# n-tech) industry is % ourishing and got $17.4 billion in speculation a year ago alone. As indicated by EY’s Fintech Adoption Index, 33% of buyers worldwide are utilizing at least two # ntech administrations, with 84 percent of clients saying they know about # ntech (up 22 per-cent from the earlier year). Mon-ey related innovation is extensively characterized as any mechanical development in budgetary admin-istrations. ! ose occupied with the business grow new innovations to disturb customary budgetary mar-kets. Di$ erent new businesses have been associated with the way to-ward making these new advances, however a signi# cant number of the world’s best banks including HSBC and Credit Suisse have been build-ing up their own # ntech thoughts also. Fintech organizations use in-novation as broadly accessible as instalment applications to more mind-boggling programming ap-plications, for example, man-made reasoning and huge information.

! e top three FinTech start-ups are given below: Stripe – $9.2 billion

Stripe was esteemed at $9.2 billion

in its latest $150 million subsidiz-ing round in November 2016. ! e organization has raised a sum of $440 million since its establishing in 2010.

Stripe is an instalments preparing start-up that gives any business a chance to acknowledge charge cards, Apple Pay, and other compa-rable administrations. A portion of its greatest clients incorporate Ly+ , Salesforce and Amazon.

It’s rapidly turned into the standard for online instalments. However, the organization still faces some opposition from new companies like Braintree and long-lasting force players like PayPal. So# - $4.4 billion.

SoFi was esteemed at $4.4 billion amid its latest round of subsidizing in February 2017, which brought the organization $500 million from # nancial specialists. Altogether, the organization has raised over $2 bil-lion, including a $1 billion round driven by So+ Bank in 2015.

SoFi - short for Social Finance - is an online moneylender which cen-tres on renegotiating understudy

advances and home loans for okay borrowers. It’s in% uenced a scratch in the budgetary administration to space as another kind of loan special-ist outside of the conventional banks.

In any case, SoFi has a couple of ob-stacles ahead. ! e organization has been in dangerous territory since its fellow benefactor and CEO Mike Cagney ventured down in Septem-ber following cases of inappropriate behaviour at the organization from present and past representatives.

Credit Karma - $3.5billion Credit Karma scored a $3.5 billion valuation on a $175 million sub-sidizing round in June 2015 which brought the organization’s aggre-gate # nancing to $368 million. ! e individual fund organization, which has some expertise in is-suing free # nancial assessments and reports, propelled in 2007. It’s since assumed control over the advanced credit checking space, thanks to some degree to expan-sive scale information breaks like Equifax, which have le+ buyers wor-ried about deceitful credit action.

2

Innovation In Branch banking ! rough Intelligent Robotic Assistance

Yashas B

1828822

! ese days, customers are embrac-ing technology as they have a choice of advancements in internet, mobile phone penetration and availability of low cost data plans.

In providing # nancial services, # -nancial institutions and banks are adopting to advanced technologies to cater to fast changing customer expectation. Banks are constantly developing new products and ser-vices and is made possible through di$ erent digital technologies. Banks are investing into development of digital infrastructure and digital in-novation.

Banks are enhancing customer ex-perience through Arti# cial Intelli-gence and Robotics.

Data analytics are handled by arti# -cial intelligence so+ ware and robot-ics are being brought into customer service and support.

IRA or Intelligent Robotic Assistant (IRA) are designed to assist branch sta$ in large branches. IRA guides customers in carrying out their banking transactions. Arti# cial in-telligence so+ ware play an integral role in banking system, function, processes and customer interac-tions.

! ese technologies help manage customers more e$ ectively and help reduce operational costs that arise in the future. Arti# cial Intelligence and Robotics transform the way people do banking.

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Digital transformation and innova-tion in the Banking Financial Ser-vice and Insurance (BFSI) sector will be mainly on these 3 technological innovation Block Chain, Arti# cial Intelligence and Internet of ! ings. AI are self-learning and evolving technologies and blockchain keeps track of every banking transactions. ! is will eliminate physical branch-es, Banking Apps and websites. ! ese technologies will make bank-ing relatively invisible. ! ese tech-nological transformation in Banks is brought by # nance technology.

Technological Innovations In Yes Bank

Khyati Bansal

1828828

With the long list of many innova-tive banking products that several Indian banks have come up with, the one innovative product that the Yes Bank has designed outshines all. Yes Bank, is the India’s fourth largest private sector bank with its pan India presence in all 29 states and 7 Union Territories of India, headquartered in the Lower Par-el Innovation District (LPID) of Mumbai, India. It is the outcome of the entrepreneurial and profession-al commitment of its Founder Rana Kapoor and its Top Management team, to establish a very high quali-ty, customer centric, service driven, private Indian Bank catering to the future businesses of India.

Yes Bank has adopted the highest standards of service quality, the best international practices and operational excellence, and o$ ers the comprehensive banking and # nancial solutions to all its valued customers. Yes Bank’s approach towards banking has always been

based on Innovation and Design ! inking for all its product services and o$ erings. Yes Bank was the # rst Bank in India to successfully im-plement the innovation in Supply Chain Finance using the Blockchain and the API Banking. Yes Bank col-laborated with IBM to use their Hy-perledger fabric and uses a Smart Contract designed and coded by the Cateina Technologies, started by the graduates from IITs.

YES ENGAGE, from Yes Bank is a Chatbot based platform for the employee engagement and the pro-ductivity management, developed to help Yes Bank sales teams plan and update the visits done by them through a completely mobile tool. ! is transparent sales monitoring process makes it very easy for the frontline workforce to plan their day-to-day and regular activities. Customer facing sales team mem-bers are now also able to save mul-tiple man hours every day through ‘Real Time Call Reporting’.

! e YES ENGAGE chatbot also helps updating the leads in real time through this mobile chatbot plat-form, leading to the enhancement of the productivity.

Yes Bank, was recently awarded the prestigious FINNOVITI Award 2018 for the Innovation at the Inter-national Banking Expo 2018 held in Mumbai, India. Yes Bank received this award for its innovation on Blockchain to provide an enhanced Supply chain # nancing experience to its clients and for enabling pro-ductivity in Salesforce through the YES ENGAGE chatbot application. Yes Bank won the FINNOVITI Award, for the second time, for ini-tiating the technological advances in the Banking Industry. ! e bank was one of the selected companies to have been awarded by the Bank-ing Frontiers from over 100 nom-inations received across the BFSI Sector.

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Will Cryptocurrency Be A Sour-Grapes Story For India?

Lakshmi Sai Mallavaram

1828831

! e global economy has been mov-ing towards digital currency in the past few years. In present days, ev-erything is going paperless and in addition to this digital payment, is cryptocurrency. Cryptocurrency is a digital currency implemented through blockchain technology. It is a peer-to-peer transaction and it does not need a third party to autho-rize it like the government. ! ough there are many cryptocurrencies like bitcoin, litecoin etc., countries are opting for their own nation-al cryptocurrency. Some countries like Japan, Russia, Dubai, Estonia etc., have already centralized their own cryptocurrency along with pri-vate ones like bitcoin.

However, where is India? RBI has barred banks, NBFCs and all reg-ular entities from dealing with

cryptocurrencies. ! e impact of this not con# ned to the # nancial system but also to blockchain technolo-gy; even though both are di$ erent ideas, they need each other. India is embracing one while banning the other. Knowing the relationship between them and choosing the op-timum notion of conservation will a$ ect India’s aspirations of being a leader in terms of technology.

! e uncertainty of crypto mining is making India take a step back from adopting this digital evolution and casting a shadow on the coun-try’s commitment to transform it-self technologically. Many people believe that the country is failing to unlock itself towards a powerful drive for economic growth. In be-tween this war of adopting cryp-tocurrency or not, there is a buzz

about India having its own cryp-tocurrency- “the Lakshmi coin”. Demonetization and linking of Aadhar to the bank accounts are supporting the above statement and clearly shows that the government wants to have greater control over the economy.

To implement its cryptocurrency, India should have a collaborative approach of knowing how crypto-currency works, how much money should be in cash form and how much the digital currency should be contributed. ! e current scenar-io of indecisiveness will not work and best action that RBI can take is a decisive approach by following US model of innovation than stay-ing mum about it and not doing anything.

5

Cloud Telephone Is Easing ! e Process Of Personal FinancePragya Jaiswal

1828836 Personal # nance companies have to meet a few more prerequisites in order to excel in the industry apart from following the rules and regu-lations, one of which that is most important is e" cient customer services. ! e companies dealing in personal # nance need to have data privacy and security, especially for customers.Cloud Telephony pro-vides a number of products and functionality to ease the process of customer interaction in the per-sonal # nance sector.Products and features that help personal # nance sector to tackle its issues in a more secure way are:1) Centralized business phone num-

ber:

A virtual 10-digit phone number a+ er which many other contact numbers are recorded serves as a centralized contact number for any association. So, irrespective of the geological location the customers can dial the same contact number to contact their individual account managers. Not only this, a virtual number also guarantees call-track-ing which helps in observing the performance of all the agents from a single location. So, next time if the customers complain about their calls not being picked on time, it can easily be tracked which agent is not performing his/her duty dutifully.

2) Sticky Agents:

! e problem of prediction going through a long IVR menu to reach their respective agents everytime they call gets resolved with the help of ‘Sticky Agent’ feature. ! is fea ture ensures that a particular call

gets connected only to that agent with whom the customer spoke beforehand. ! is feature simpli# es two processes. First, the customer gets connected only to their keen account manager everytime he/she calls. Second, the prediction need not explain their doubt again to any other agent if they need any more help related to the same issue. ! is feature not only reduces customer waiting time but also increases on the whole e" ciency of the team.

3) Call Recording:

Call recording is another most im-portant feature for any personal # -nance company. ! e reason is that it is one of those sectors that is in-volved in making # nancial invest-ments on behalf of their customers. So, it is very essential to keep a copy of all customer-agent conversation in order to ease the risk of any fu-ture argument. It also helps organi-zations to arrive at a quick decision for their customer complaints. Moreover, call recordings are also used to check call quality and con-sistency. Agents’ call recordings are being listened in order to check their on-call performance, and best recordings are also used for training purpose.

4) Cloud-based IVR:

Apart from these essential features, cloud-based IVR helps personal # -nance # rms meet up unexpected demands. At the time of major eco-nomic changes like the implemen tation of GST and demonetization, # rms get loaded with high call vol-umes, and calls don’t stop even af-ter o" ce hours. To meet such sud

den increase in customer calls, IVR stays available 24*7 and allows the callers to leave their message in the voicemail in case none of the agents are available during non-working hours. It also facilitates automatic call distribution (ACD), and hence handles high call volume well. IVR when integrated with CRM, inter-acts with the callers to give them their account information without any human help. Information such as total money invested in a mutual fund, exceptional premium amount, pro# ts accumulated for particular stocks, etc. can be given to the cus-tomers through a CRM-integrated IVR.

5) Automated caller database:

Cloud telephony also makes it eas-ier for the # rms to distribute im-portant information, and remarket the product to their callers by us-ing automated callers database. ! e database is used to reach out the prospects via SMS, Facebook ads or through calls. So, when a company needs to inform their customers about the best performing mutual fund or any other investment op-portunities, it can be done by exe-cution of SMS to multiple callers at once. Bulk SMS feature is also used to give important information to customers like an annual reminder to pay their premium, sending order con# rmation message to customers and sending OTP to make possible secure transactions. Moreover, call-ers database is also used to make outbound IVR calls to give import-ant information such as linking of Aadhar card, and # ling income tax return on time.

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FINTECH-Revolution or Disruption

Vinay M D

1828821

FinTech remains for Financial Tech-nologies, and in its broadest de# ni-tion, that is precisely what it is: ad-vancements utilized and connected in the monetary administrations part, mostly utilized by budgetary organizations themselves toward the back of their organizations. In any case, to an ever-increasing ex-tent, FinTech is coming to speak to advancements that are disturbing conventional budgetary adminis-trations, including portable instal-ments, cash exchanges, advances, gathering pledges, and resource ad-ministration.

Try not to expect that FinTech is es-sentially a craze or popular expres-sion: Accenture as of late discharged

a report, which found that interest in # ntech around the globe has ex-panded signi# cantly from $930 mil-lion out of 2008 to more than $12 billion by mid-2015.

Furthermore, this is likely just to keep on increasing, as FinTech con-tacts not simply the money related administrations segment, but rather every business the budgetary ad-ministration’s industry manages.

FinTech new businesses are lit-tle and nimble, ready to upset the stumbling behemoths that are con-ventional monetary foundations and advance rapidly — and your business can utilize that further bol-stering your good fortune.

FinTech is not new. It has been around in some shape essentially as long as money related adminis-trations have. A+ er the worldwide monetary emergency of 2008, in any case, FinTech has advanced to upset and reshape trade, instalments, ven-ture, resource administration, pro-tection, leeway and settlement of securities and even cash itself with cryptographic forms of money, for example, Bitcoin.

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Growth Of FINTECH In India

Alphonse J Neerackel

1828823

Technology and innovation have replaced the traditional norms of # nancial services globally. ! is radical transformation is not just bene# tting the users but also busi-nesses and speci# c groups. Fintech pioneers are now considered as more bene# cial partners. ! e year 2015 witnessed a major increase in the number of # ntech. Around 12000 start-ups came up with # n-tech solutions across the world with an investment of USD 19 billion. It is predicted that by 2020 the # n-tech sector would be touching USD 45 billion at a compound annual growth rate of 7.2%.

Indian economy in the last few years has bene# tted from # n tech-services. Some of the # ntech inno-vations includes e-wallets, lending and insurance. ! e services provid ed by these sectors has changed the traditional way of seeking service-sand daily transaction of the cus

tomers. Fintech in India has a lot of potential to grow more as there are number of users increasing. In ad-dition to that the number of smart phone users will be increasing in the coming years giving more op-portunity for the # ntech sector to grow. ! e current # nancial market of India is not optimizing the avail-able resources. 30 to 40% of the peo-ple are not getting access to bank and many numbers of transactions are still carried out through cash. ! is indicates that the # ntech or-ganisations must take massive steps in expanding their services to these population.

A favourable ecosystem has been promised by the Indian econo-my for the growth of # ntech sec-tors. Many of the # n tech com-panies are now trying to analyse customer needs. ! is will help them toforecast the demand and enable customized services.

Fintech in India has been promot-ed by several stakeholders includ-ing banking sector, start-up com-panies and government bodies. It is expected that the # ntech indus-try would grow by 1.7 times and be valued by approximately USD 8 billon.

Overall looking # ntech has a huge development potential in India because of the nation’s inclusive economy, large customer expec-tation and the scope for develop-ment. One thing is certain, and i.e digitization will make FinTech the future of monetary transactions across the globe. ! e emerging start-ups are providing e" cient and cheaper # nancial services like Paytm, Mobikwik, free charge, Bank Bazaar etc. Fintech has al-ready caused a revolution in India and is taking every measure to emerge as a global hub for # n tech services in the coming years.

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Emergence of FINTECH

Anna Wilson

1828824

Looking at the past few years, the environment in which # nancial institutions have been operating are challenging. Nowadays, many start-ups are coming up under the umbrella of Fin-tech and the way they are operating, they are going to disrupt the existing system of how # nancial services are delivered and will be successful in bringing a mas-sive change. Customers’ expectation from # nancial institutions will be high; especially in the # eld of digital banking and their interaction in the digital platform. ! ere are two reasons for the boost in # n-tech. the # rst one is the 2008 # nancial crisis, which resulted in recruitment freeze and lay-o$ s for large # nancial institutions. ! is re-sulted in wide space for the need for quali# ed # nance professionals and for the creation of new startups. ! e second reason is the reduction in the cost of technology. ! e cost of starting a business has come down by a factor of around 1,000 since 2000.

Recently, digitalization of services became an expected norm for all industries so that customers can

feel that the institutions are catering to their needs more e" ciently, thus developing % exibility and increas-ing interactivity in the process. In that case, small industries and start-ups have an advantage in adapting to # n-tech, but they lack the expe-rience to provide a good customer service. While the large # nancial institutions have an advantage in providing these services in a % exi-ble, timely and professional manner to their clients. Large # nancial organizations, who invest in # n-tech, supports the start-ups that are the best. In other words, start-ups that have the potential to create chaos and disruption. ! ese # nancial institutions either borrow the technology from these start-ups or acquire these startups. What most companies do are acquisitions of small start-ups. By these, it doesn’t mean that all the revolutions in # n-tech can be brought only by these start-ups. ! ese large organizations have an advantage when they come up with new ideas in # n-tech, that is, credibility, trust and licensing.

! ere are companies who develop # n-tech without taking the help of

any # nancial organizations. Large companies like Amazon and Goo-gle are the front players in this rev-olution and they have an advantage of being able to exert in% uence on the tastes and preferences of the customers than banks. For exam-ple, if Amazon starts accepting Bit coin as a mode payment, due to rep-utation of Amazon, this will give a boost to the virtual currency. But if any banks using the Bit coin strate-gy without communicating its strat-egy clearly, the customers are likely to not take that initiative in a posi-tive manner. Fin-tech companies inspire # rms that o$ er # nancial services to o$ er more digital services. However, the # n-tech industry is very fragmented as it deals with people’s money and they must be able to create trust and reliability among its customer base. And that is where large # nancial organizations have an advantage over small # n-tech companies and start-ups. People trust the known # -nancial organizations and trust the environment in which they oper-ate. ! is trust can be used to facili-tate the acceptance of new # nancial technology among people.

9

Advancement In Banking Technology

Mekha P

1828832

Innovation is essential for all the banks around the world to survive in the technologically competitive world. Banks must hold on to the competition or they will be le+ be-hind. Various approaches are taken by banks to make these shi+ s and changes. Some are embracing rad-ical realignment to form the busi-ness while others are making cer-tain incremental changes. ! e role of a bank is getting rede# ned to a service provider of various # nancial services under one roof. In order to retain their customers and the to survive the competition banks are looking for new innovations.

Customers expect a personalised ef-fective and dependable banking ser-vice. Hence banks need to provide a simple and continuous service to its customers in order to improve the customer’s satisfaction with banks. Some of the existing and emerging innovations in banking sector are as follows:

1) Mobile Banking Apps:

! ese have been introduced to pro-vide ease to customers to manage their accounts and transactions through smartphones. ! ey not only provide banking transactions but also additional facilities like in-vestment, bill payment and all other conveniences to the customers. Peer to peer transfers from mobile apps directly are being provided.

2) Application Programming Inter-

face (API):

New methods of client veri# cations

are done through the techniques based on APIs. ! e customers need not visit the banks for any of the veri# cations. API uses the custom-er’s existing account details, bio-metrics, documentation, ID infor-mation that are provided by third parties for veri# cation

3) Cardless Payments:

Near Field Communication (NFC) capable smartphones with Host Card Emulation (HCE) ae going to be introduced. ! is is available form iPhone 6 onwards and it pro-tects the customer form credit card data breaches and also protects wal-lets from the+ and fraud.

4) Arti" cial Intelligence (AI):

AI helps in detecting frauds and it will revolutionise banking. ! is also uses big data to align business with the customer needs. AIs help in avoiding NFCs by fast and accu-rate credit rating. Chatbots will also help in improving customer experi-ence by communicating in natural language and by aiding answers like how a real person does.

5) Talking Transaction:

Banks are now bringing transac-tions alive by integrating other apps and features with plug and play ser-vices like Google Maps, Facebook etc. ! is will bring the statements alive rather than the customer get-ting boring statements from banks regarding transactions. For exam-ple, Moven App brings things to life by alerting the user when they are spending too much money and

getting high above their budget lists by breaking the glass on their phone.

6) Wearables:

Wearables such as smart watches and smart glasses are going to be the future of retail banking. ! ese would process customer banking information for the employer and the employee simultaneously when the employee is doing other cus-tomer service jobs. Smart technol-ogies are steering banking towards the direction of convenience.

7) Upgraded ATMs::

ATMs transformed the banking in-dustry when they were # rst intro-duced. ! e next revolution in ATM is going to be contactless or cardless ATMs that will help the customer to perform the transactions through their smartphones like Apple Pay or Google Wallets. Some of these innovations are already available overseas like biometric authenti-cation is being used in some of the ATMs in India and iris recognition is being used at Qatar National Banks ATMs. ! ese technologies will also protect the customers form ATM hacks.

8) Blockchain Technology:

! is technology fundamentally transforms banking and # nancial services. It decentralises # nancial technology from a central authority to a widespread network of comput-ers. ! e # nancial technologies are broken down into blocks and then they are added to the chain of

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computer code which is then en-crypted for enhanced cybersecurity. ! is is also a basis for other banking technology trends like bitcoin.

9) Micro" nance:

Micro# nance institutions are pro-viding a wide range of high qual-ity, a$ ordable services # nancial products and services to the people which also includes insurance, fund transfer, savings etc. in the coming years it is likely to see many banks entering into micro# nance busi-ness as well and this will reduce the

banking services that is being pro-vided in rural and urban areas.

10) Big Data Analytics :

Banks generate and store lots of data. Retail space has embraced big data analytics like in Amazon and eBay and have been targeting con-sumers with new products. Banks are also trying to understand how to capture the data. Big data is all about exploring the data value. ! is will help the banks in tailoring the products according to the custom-er’s needs as the customers expect

a more personalised service kind of service from their banks. Banking sector is turning competitive and is also aiming at better productiv-ity and performance. Exposure to worldwide competition and the de-regulations in Indian monetary re-gion has led to the arrival of better exceptional services and products. ! e banking sector has stepped for-ward in terms of innovation and technology. Banking will be even more convenient, personal and pro-ductive and personalised with all the advent of FinTech in banking.

11

FINTECH-Increasing or Decreasing start-ups?

Yani Krupa

1828834

In the recent years, start-ups are us-ing # nancial technology as a tool to accelerate their # nancial services by entering di$ erent # elds. Innovating new products like virtual reality, mixed reality, e-wallets, machine learning, arti# cial intelligence etc, are enabling the startups to run for longer period. On the other hand, Tax planning, investment banking, capital markets, investment bank-ing, international banking technol-ogies are adopted by the banks to integrate technology into # nancial solutions and to have better rela-tions with their clients.

! ough there are lot of innovations in technology but sometimes inves-tors face dilemmatic situation and they question -

Whether start-ups can earn huge pro# ts or not? Can the product invented will be successful or not? -

Such questions are pushing back the investors to put in start-ups. ! e real business situations help the start-ups to upgrade or the innovation of new # nancial tech-nology builds strong investors for their success.

Catalyst is also a best way to expe-rience digitalization for the success of the business. ! e entrepreneur possessing creative skills innovates modern technology with high-er standards thus enables them to maintain competitiveness in the market. ! us, by earning higher pro# ts in the initial stages encour-ages the new entrepreneurs to es-tablish a start-up and shows an in-creasing trend for start-ups in the technology market.

12

Blockchain Technology

Settipalli Pravallika

Blockchain is the latest technology, that allows the users to distribute the digital ledger which contains economic transactions. But that information cannot be copied by other users, since it is encrypted format. ! e best and latest exam-ple for this technology is bitcoins, which are cryptocurrencies. ! e in-formation that is to be shared will be in the format of a spreadsheet that is distributed across computers. Since, it is a centralised spreadsheet, there very less chances to hack it or at least even edit the data that has been entered. It has been developed in order to ease and secure peer-to-peer transactions.

In the current world, people and # nancial institutions are beginning to realise the importance of latest technologies, like blockchain, and are almost successful in implement-ing many of them in their institu-tions for their easy and convenient functioning. ! e topmost compa-nies which are driving the develop-ment of this futuristic technology are Citibank, JPMorgan, and Gold-manSachs and Barclays.

Blockchain technology in " nance:

• Cross-border payments:

When transactions are made out-side countries, it involves lots of expenses and also it is a slow pro-cess. Blockchain technology, when involved, speeds up and simpli# es the process along with reducing the costs signi# cantly.

• Share Trading: Share trading when backed up with blockchain technol-ogy, gives greater trade accuracy and takes less time in settling the transactions.

• Smart contracts: In smart con-tracts, the transactions and agree-ments are done automatically. Since it acts as middle-men between the parties, additional amount that is to be paid to these middle-men is re-moved.

• Improve online identity manage-ment: When registered to transact through blockchain technology, users will have an option to choose how to identify themselves in the spreadsheet, and also to whom the information passes on. Users also

have the facility to reuse their reg-istration for some other services as well.

• Loyalty and rewards: Blockchain technology o$ ers several bene# ts apart from transparency and trace-ability of the recorded transactions.

• Crowdfunding: ! e latest initia-tives of this crowdfunding are Kick-starter and GoFundMe, which are now making advances for peer-to-peer transactions.

Apart from the above stated, there are also many other uses of this blockchain technology, like Supply chain auditing, decentralised # le storing, prediction of markets, In-ternet of ! ings and so on.

! ough currently there are only 3% of the companies, many companies have targeted for 2020 to include blockchain and many other tech-nologies that are very useful not only in the # eld of # nance but also in other areas of the industry.

13

GAME CHANGER - HIGH FREQUENCY TRADING

Nihal PJ

1828852

High frequency trading is a type of algorithmic trading. ! ey attempt to discover underlying temporary but recurring pricing phenomena that can help in generating trading opportunities. Algorithmic trad-ing strategies include microsecond price movement which helps trader to bene# t from market.

Characteristics of HFT :

• It’s involves use of high speed and sophisticated computer programs for generating, routing, and execut-ing orders.

• Very short timeframes for estab-lishing and liquidating positions.

• Very fast ping is required for HFT, hence trading computers are placed adjacent to exchanges to minimize the time lag.

HFT person has to do extensive research about the market and the di$ erent variables to create an al-gorithm. With the help of the data available researchers will be able to # nd correlation between variables. Studies suggest that an increase in in algorithmic trading positively in% uences the market quality. High frequency trader doesn’t take much risk because of the round trip. ! ey deploy their money for very short time and get it back but this e$ ects the non– HFT institutional inves-tors.

HFTs use trading programs that are based on mean-reversion or other forms of statistical arbitrage hav-ing little relevance to fundamental value. ! e repeated applications of directional tactics and statistical arbitrage may lead to price disloca-tion both of individual securities,

or even market wide dislocations when a su" cient number of equities are a$ ected.

! e potential advantage that HFT has over others are the speed. HFT gets insider information due to the speed at which they operate which help in predicting the % uctuations in price, this gives unfair advantage to the HFT. HFT manipulates the price via quote stu" ng and local-ised price skewing mechanisms.

14

Filter trading is one of the more primitive high-frequency trading strategies that involves monitoring large amounts of stocks for signi# cant or unusual price changes or volume activ-ity. ! is includes trading on announcements, news, or other event criteria.

How To Overcome Financial Crisis?

SIKHA T.C,

1828853

A # nancial crisis is frequently con-nected with a panic or a bank run where investors auction assets or withdraw cash from investment ac-counts since they expect or fear that the value of those assets will drop if they remain in a # nancial institu-tion.

! e initial step in overcoming # -nancial crisis is to identify the ba-sic issue that is causing di" culties. Financial problems are generally an indication of a bigger issue and to over come with long run solutions, you have to distinguish the real cause of your # nancial troubles.

Next ideal way to deal # nancial cri-sis is creating a budget plan. A bud-get is a week to week, month to

month or a yearly spending plan for your cash that controls your spend -ing decisions on essential stu$ for you. As you prepare your budget, it’s important to follow your expenses for at least a little while to observe where and how much amount you are spending. Setting your # nancial priorities is very important to over-come any # nancial crisis.

! ese needs help you to make tough # nancial decisions ,for example paying o$ your credit card bill, pay-ing your home loans or saving up for house repairs for your family; setting priorities will enable you to solve your money troubles and get back on track.

For many people, # nancial issues

can be tended to by reducing ex-penses and increasing salary, or some combination of both, yet it may not be the ideal alternative for all. For people, changing way of lifestyle is the most di" cult task, but given the money crisis circum-stances we are compelled to make changes.

Once you have ideas to handle your # nancial problems, come up with a sensible and realistic plan to achieve your # nancial objectives with a timeline of weeks, months or years and track your progress con-tinuously. Evaluate and monitor your plan, check whether you are making progress towards your ob-jectives and be available to the pos-sibility of adjusting the plan.

15

Forensic Accounting

Manvitha Krishnan

1828842

Forensic accounting means con-ducting an examination into the company’s # nancial statements by utilizing accounting, auditing and investigative skills.

It provides an accounting analysis suitable for court to understand in order to investigate the company # -nancials.

Forensic accountants are special-ly trained in order to look beyond the numbers and are also trained in dealing with the business reality of a situation. ! ey are involved in solving fraud cases.

Investigation in Forensic Account-ing :Forensic accounting also encom-passes the determination of wheth-

-er criminal matters occurred. Such crimes may include securities the+ , employee the+ , falsi# cation or mis-statement of information of # nan-cial statement, insurance fraud or identify the+ .

Forensic accountants may assist in searching for hidden assets in divorce cases or provide their ser-vices for other civil matters such as breach of contracts, tort and dis-agreements relating to the company acquisitions, breaches of warranty or business valuation disputes.

Forensic accounting personnel are basically assigned with work which includes investigating expropria-tions, construction claims, product liability claims or trademark or pat-ent infringements.

It can be used to determine the economic results of the breach of a nondisclosure or noncompetition agreement.

Forensic Accountant in Insurance Company :A forensic accountant may be asked to quantify the economic damages arising from a case of medical mal-practice or a vehicle accident. He must be knowledgeable in terms of the legislative process relating to these cases.

Forensic accounting encompasses the review of the insurance policies in order to determine the methods of calculating potential losses and coverage issues. Forensic account-ing may be utilized for either the insurer’s or insured case.

16

! e word “Forensic” means “suitable for use in a court of law”. ! e main steps in forensic an-alytics are (a) data collection, (b) data prepa-ration, (c) data analysis, and (d) reporting.

EDITORIAL TEAM

CHIEF EDITOR

Dr AMALANATHAN. S

HEAD

DEPARTMENT OF MANAGEMENT STUDIES

PROGRAMME CO-ORDINATOR

Dr SURESHA B

ASSOCIATE PROFESSOR

FACULTY CO-ORDINATOR

Prof. GNANENDRA .M

ASSISTANT PROFESSOR

EDITORIAL TEAM CREATIVE TEAM

Miss. NAYANCEE Mr. SIVASUNDARAM

Mr. BISHAL JYOTI DAS