How Overbond Is Changing the Bond Market

The best way to launch a successful company is to find an unfulfilled need in the market and offer the solution first.

Bonds are not new. In fact, the earliest recorded bond is a surety bond made for grain dating back to 2400 BCE. Yet even though they have a part of the business world for centuries, they have yet to enter the digital world. Obviously, this is an area full of potential.

After all, startups (and companies) need bonds. One of the major reasons startups fail is funding—or lack of funding, to be more accurate. If you don’t have the financial base to keep building your momentum, no amount of hard work will keep the company going. Loans are an option, but they come with certain burdens companies may not want to handle.

Overbond has entered the market to give entrepreneurs a new way to find funding. Using their system, startups can gauge the interest in their offerings, connect with potential investors and sell their bonds. By cutting out the middle-man (investment firms), Overbond makes the process faster and easier for everyone involved.

Using a unique cloud-based platform, clients can research prices and investors, research and analyze data, check up on compliance management and connect with other parties trading and dealing in the bond field.

Founded by Vuk Magdelinic and Han Ryoo in 2015, the company has been named as one of Canada’s most innovative tech companies and one of the emerging FinTech stars. It is a fantastic example of the success that can come when you find that unreached niche in the market.

For entrepreneurs seeking to enter the field, use Overbond as a model to emulate. Follow their lead and look for the areas of the FinTech market that are not being properly serviced and then create a solution. With the right marketing and great customer service, your startup will quickly find success and acclaim and you can rest assured that you have helped to make the financial world a better place.

Here’s Why FinTech Will Trump Trump

Recent political events have shocked the world and many questions are now being raised about what this is going to do to the market and where the world is going to go from here.  For startups needing a strong market to build their business, a shift in market interest or a loss of investment capital could be devastating. If you are one of the people who is worried that 2017 will see the stalling of the FinTech momentum and the return to the stranglehold of big banking, here are three facts to calm your fears:

i. The outgoing U.S. Democratic Party made it a point to stress the importance of the FinTech industry in the modern business world and released a final whitepaper, A Framework for FinTech, to lay out their policy framework and the future of the process. The ten principles were:

1. think broadly about the financial ecosystem;
2. start with the consumer in mind;
3. promote safe financial inclusion and financial health;
4. recognize and overcome potential technological bias;
5. maximize transparency;
6. strive for interoperability and harmonize technical standards;
7. build in cybersecurity, data security, and privacy protections from the start;
8. increase efficiency and effectiveness in financial infrastructure;
9. protect financial stability; and
10. continue and strengthen cross-sector engagement.

This whitepaper clearly lays out how to keep the thriving industry moving forward and offers the new government a clear plan for them to follow. If the paper successfully appeals to the business side of Trump, he will see the economic need for a thriving FinTech industry and will take the necessary steps to ensure the transition goes smoothly.

ii. 2017 already has multiple conferences set up to explore the increasing importance of the FinTech industry. Spanning the globe, these conferences clearly illustrate how deeply FinTech has infiltrated the world market and how quickly companies are moving to embrace the new technology. If you want to know where the FinTech industry is going, pay attention to what these conferences are presenting.

iii. Mobile banking continues to thrive. This should not come as a surprise, considering the ease and low cost of this technology. As the millennial section of the market continues to gain power, mobile banking is becoming more prominent and startups that cater to the unique needs of this demographic will in no doubt thrive in the coming year. Cybersecurity that focuses on cell phone transactions will be well received as the need for secure financial transactions will increase as the mobile banking market grows.

Don’t dismiss FinTech yet, as it definitely has the power to withstand any changes that are coming in the market. With such a strong base and a real need for the technology and security FinTech brings, this is not an industry that is going to go quietly into the night. You may have to brace for a bumpy ride at parts, but FinTech is still an excellent investment.

Why Your FinTech Startup Needs Cybersecurity

Technology is most definitely improving our lives in many ways, but with these improvements come new dangers. Yes, modern financial companies can boast about technologies that increase and improve their customers’ access to services, but they now also have to face the real danger of cybercrime.

This new venue for crime is large and damaging. (45% of the financial industry has reportedly suffered fallout from cybercrime and by 2019 the costs related to it will reach $2 trillion.) If you have been panicking about this aspect of the new business world and its potential impact on your startup, note that startups actually have one benefit over established companies: As they are in the process of building the company, they can easily import cybersecurity methods into the code as it is written, as opposed to having to go back into old work to see how it can be amended. Work cybersecurity into your planning now and you will be able to sleep better at night as your company grows.

Fellow entrepreneurs also see the new need in the market and are working on solutions. One example is the Qkey, a security device designed to securely transfer payment information. If you worry about your customers’ payment data being exposed by coding flaws, this device is the perfect solution to quell your fears. Or, if your greatest worry is the (inadequate) level of security your startup has, CrowdStrike is ready to provide you with a security system that will keep your data safe. Its falcon system uses big data and the cloud to help startups prevent cyber-attacks, offering a three-headed attack dog for businesses to use for protection.

When you consider how prevalent cybercrime is in today’s business world—just in 2016 major businesses like LinkedIn, Yahoo! and Hyatt Hotels Corporation suffered breaches—and how damaging such an attack can be on your public image and bottom line, cybersecurity is obviously a must-have for modern startups. Don’t put your infrastructure or systems at risk by leaving errors for hackers to exploit.

At the same time, see the potential that exists in this dynamic. For FinTech companies looking to expand, a cybersecurity division will service a much-needed area of the market. For companies looking for new company traits to highlight, an ironclad security system is a great one to push in order to win over customers concerned about their personal data.

FinTech is the future of finance and cybersecurity is what will keep the industry safe.

How FinTech Is Changing the Comparison Shopping Experience

Often new technology scares people. They stay with what they know because they feel secure and safe and don’t want the risk that comes with change. There is logic here (as making the wrong choice can damage your credit and life) but refusing to explore what new technology offers means you end up missing out on incredible opportunities that will improve your livelihood.

For example: Are you still clipping coupons? Are you spending hours comparison shopping and researching your options before you make any purchases to ensure you get the best deal? Or have you thought about saving money this way but have been unable to go through the effort?

You’re not alone. As prices rise and wages stagnate, more and more people show interest in the concept of deal-hunting, but the act itself often seems much too time-consuming. Luckily, with new technology comes new possibilities. Yes, one of the positive outcomes of the FinTech wave is it makes comparison shopping a much easier process.

Imagine: Instead of looking at every flyer or ad that comes to your house (or calling each company to do background research) you just go to a single website and punch in your details. In an instant you are shown multiple options from various businesses angling to get your patronage. Yes, FinTech companies are making it this easy.

For example: Have you ever stopped to wonder if you’re paying too much in auto insurance or mortgage rates? One quick stop to LowestRates could help you uncover how solid your current plan is and (if you don’t like the results) what your alternatives are. And if you are just entering into the insurance field, LowestRates can help you find the best deal and lay out your choices so you better understand your insurance/mortgage agreement.

This is a fantastic use of technology and great news for consumers, but companies offering insurance are going to have to learn to step up their game to survive in the new marketplace. When customers can check in advance to see if your prices are worth their attention, overshooting your value will cause a lot of damage to your company while undershooting to get their business will eat into your profits.

Startups looking to thrive in this marketplace will need to know how to push themselves as the ideal option. Use the presence of these comparison sites to your advantage, as they provide a new opportunity to bring in new customers. A good price will lead potential customers to your site, but quality products and excellent customer service is what will sell them on the deal and keep them coming back.

The Rise of FinTech and Artificial Intelligence

A common concept in fiction is the eventual rise of the machines. For people who think that such science fiction is a precursor to science reality (and worry about this evolution) the rise of artificial intelligence in FinTech companies might be worrying. For those who see the technology as the improvement it is, however, the introduction of artificial intelligence is welcomed.

With over $15 billion invested in its development between 2010 and 2014, artificial intelligence is not an untested concept coming to the 2017 market. In fact, it is already dramatically changing application processes and customer service.

In many ways, artificial intelligence is the ideal partner for FinTech. FinTech came in as a way to fix the finance industry, introducing modern technology and shaking up an institutional hierarchy ruled by corporations who were content to maintain the status quo. Artificial intelligence is now set to make over the decision making process, making it easier for companies to determine risk and guard against fraud. Combined, they are set to change the world.

ZestFinance, for example, is using artificial intelligence to create a new technology platform that will improve the credit industry. For the millions of Americans who are unable to obtain credit (or are forced to borrow at punishing rates) because of the outdated process used by the big banks, this new system is a life-changing event. Through its Basix loan system, users can now quickly and easily apply for personal loans.

Artificial intelligence is also set to make a huge difference in the field of Insurtech. For one thing, it is changing how startups are offering their services, using technology to increase and improve the access clients have to their insurance agency.

Insurify is a great example of the way Insurtech is changing the business. After punching in a few details or sending an image of their license plate, users are quickly connected with a personal virtual insurance agent (a.k.a. Evia). These fully automated robot advisors are designed to find users the best protection to fit their needs, using an artificial intelligence algorithm to analyze data and build custom insurance models. Once users opt into a plan, the agents are set up to send out text notifications about rate reductions.

Artificial intelligence will prove to be a great tool that will dramatically improve the financial and insurance industries. This system will improve access for millions and protect people and companies from fraud. Don’t fear the rise of technology: embrace it and the many positive effects that will come from its presence in the business world.

How Smart Contracts Are Changing Financial Services

Want to know what the next revolution will be in the financial industry? Meet smart contracts, the brainchild of the blockchain industry. Smart contracts have the potential to change the business world by automating the contract creation process, removing the need for a third-party intermediary and eliminating the tension that can come from the potential for human error.  This is incredibly important in the financial field, which is still working on regaining consumer trust.

If smart contracts are, as Nick Szabo said, “a computerized transaction protocol that executes the terms of a contract,” you can see why smart contracts are perfect for the FinTech startup industry. First, it makes little sense for an industry devoted to new technology to be using a system that is dangerously outdated; second, it allows startups to focus more on their growing business and less on fulfilling the fine-print in their contracts. If you tend to forget deadlines for renewals, smart contracts may just save your business. As well, if you are dealing with over-the-counter agreements, smart contracts are set up to make the process more secure for everyone involved.

Another positive aspect is the speed in which these contracts can be processed. In situations like auto insurance, smart contracts can dramatically reduce the timeframe of the claim process, getting the opposing parties settled quickly and with much less stress involved. For startups working on an international scale, the faster speed and automation process means the transaction is more secure and efficient. In the future the process will be even more efficient, as Common Accord sees the importance of a global contracts system and is in the process of creating a global code.

There are, of course, dangers in entrusting a coded contract. If the coding is flawed, the terms will not be properly executed. This means that startups using smart contracts need to keep an eye on the process and be ready to take quick action if certain stipulations do not end up getting met. As well, faulty coding can lead to cybersecurity issues. In May 2016, the DAO set records for its crowdfunding efforts and was set to start funding proposals. Unfortunately, a hacker exploited an error in the code and drained the system. You need to ensure your contract coding is failsafe to prevent major issues.

2017 is looking to be the year of the smart contracts. As FinTech companies are already deep in the technology field, this shift won’t be jarring. In fact, smart contracts will prove to be a much better fit.

Here’s Why Angel Investing Is Right for Your Startup

So you had a brilliant business idea and now are planning to start your own company. Such an endeavor is possible, but if you want to successfully take your startup from the initial concept to a full-fledged business empire you will require certain things. One of the most important: funding. The reality is that unless you happen to already have a sizeable bank account you will need to access alternative financing. There are options, ranging from personal loans to grants to venture capital, but for many startups the angel investor option is the best way to go. Why? Look at it in terms of these adages.

1. “Money doesn’t grow on trees.”

   You may have a fantastic idea that could revolutionize the financial technology industry, but if you don’t have the financing to back up your concept the business will never make it past conception—and you can’t pluck that money from nowhere. Angel investors can provide you with the funding you need to launch and grow your business. (According to Forbes, the typical angel investment ranges from $25, 000 to $100, 000.) As this money is not a loan, you are not saddled with added costs and stress that comes with a repayment plan. You can then direct your focus on your quest to use your company to improve the financing industry.

   Symend, for example, is using financing from angel investors to recreate the debt collection process. Its software system aims to revolutionize the current system, making it easier for creditors and debtors to work together to settle debts. As delinquent debt rates are continuing to rise, a business providing a solution to the issues leading to delinquent payments has a great chance of making a positive impact and seeing great returns. And angel investing helped make the vision a reality.

2. “It’s not what you know but who you know.”

   Business success does not come easy and your journey will be even harder if you are blindly navigating the marketplace. An angel investor can not only be an needed connection, he/she can link you to other important people in the industry. The connections made through angel investing are one of the elements that will be vital when it comes to growing your business and making sure it thrives in the marketplace.

   As well, your angel investor can guide you through the business world, offering you mentorship that will massively benefit your startup. You won’t get that from your typical business loan.

3. “If you snooze you lose.”

   The business and technology fields move quickly and if your startup is stalled as you search for funding you run the real risk of missing your window of opportunity. With angel investors, the due diligence process moves much faster, getting your startup up and running quicker than other financing options would. This is a vital factor to ensure your company gets the attention it needs at the right time and you don’t waste time, money and energy as you wait for the paperwork to be ready.

Running a business empire brings a lot of stress. Don’t increase your problems by choosing the wrong financing option. Angel investing is a smart option for FinTech startups. The right angel investor will care about your company and its impact in the business (and real) world. Once you link up with said investor, you can focus on building and improving your company, feeling secure in the partnership and knowing that your company financing is solid.