FinTech Today

Read Time: 5 mins Now we have all seen the turmoil which the coronavirus has created for all of us. We have been seated all the while, seeing our economy shrinking, countries such as Germany and South Korea entering a state of recession because of COVID dragging down their exports, the death rates escalating, the desperation to get nominal healthcare facilities, and much more!  Talking about the stock markets, Dow Jones IA, FTSE 100, NIFTY all plunged by 40%,35%, and 38% respectively . Now we know that the race for the vaccine is ongoing and when will these unprecedented time end, we have no clue. Will we see a second wave? Will the vaccine work as the virus is a mutant? We have no idea but what we know is that the economy is recovering! So let's have a look at how economies usually recover! This is not the first time the economy has shrunken by this much, we have seen worst in the past and have recovered from it and so we will from this pandemic. During the Great Depression1929, w...

Read Time: 4 mins We all are well aware that the coronavirus pandemic has led us to state wherein we are worried about our health, food, essentials, money, and even our jobs. In this time wherein we need each other's support, we also need to understand the numbers clearly rather than just insinuating. Also, we need to understand the chances of a recession alongside the size of the recession. Spoiler Alert : Chances of recession within 12 months as per Bloomberg Economies = 100%. Source: Bloomberg Business Week I guess, now you'll be heeding to this blog even more carefully. So first let's see how big the Pandemic can be and as we have already seen how the GFC (shorted for Global Finacial Crisis) of 2008, how this one compares to that. First, to understand what happened during GFC, I would like you to read this blog . Now since we know what happened in the period 2007 to 2009 during the GFC. Let's focus on the coronavirus pandemic. As of now, what we kno...

Read Time: 4 mins As the world is suffering from the coronavirus pandemic. It is really important to understand how the measures taken by certain governments are going to affect their respective economies and the economy worldwide. As we know that the majority of the firms these days work on Capitalism and that has led us to cheaper solutions to the majority of our stuff. But is Capitalism really good for us and should we keep up with the flow and let Capitalism grow like it is or should we focus to drive Socialism instead? Let's deep-dive and understand that how the surroundings are changing and what COVID-19 may lead us to. First of all, let's understand what Capitalism is? C apitalism is basically an economic and political system wherein a country's industries and trade are managed and controlled by private owners, also known as shareholders, on a for-profit basis. Although no country is fully Capitalized here is a list of countries wherein the majority is con...

Read Time: 3 mins Today as we all see that the market is plunging by margins that none of us expected or are willing to believe. As in today's world, problems are solved on a global level due to globalization, so are the creation of problems. One problem leads to another and that leads to another thus creating a domino effect. This is a big reason why we are seeing such a drop in the market worldwide. Looking back at how 2020 started for us we can easily understand the domino effect. Starting with the Trade war between US-China, then Israel-Palestine conflict, the death of Soleimani i.e. the US-Iran conflict, then CAA-NRC conflict in India, the climate issues addressed at Davos 2020, and the current pressing issues of Russia and OPEC oil pricing war and the pandemic Coronavirus, all these are the ripples that create a convolute path for the understanding of the downfall in the global market. First, let's see what is the status of the global market and a few top compani...

Read Time: 5 mins The Global Financial Crisis was the downturn in the market that took place from mid-2017 and lasted until early 2019. Also known as the United States subprime mortgage crisis, the reason behind the crisis, as is well understood by the name, was the housing market of the US. The US housing market was valued pretty high due to lots of misinformation, this misinformation came into the knowledge of experts in mid-2017 and investors started taking money out of the market and as the awareness spread, more people started moving their money leading to the domino effect which led to the crisis. How it all started? In 2001, as we know, the U.S. economy experienced a mild, short-lived recession which happened due to multiple reasons such as the dot-com bubble, 9/11 and multiple accounting scandals. Although the economy nicely withstood the terrorist attacks, the accounting scandals and the bust of the dot-com bubble, the fear of recession really preoccupied everybody...

Read Time - 2 mins The Recovery of financial services, especially Banks, is a mix of positive and negative growth. As we know many banks were able to come out of the global crisis without much effect, however, some banks made it with a bare minimum in their pockets to survive and all have done the aftermath really well to recover from the crisis and to generate profit for the economy. As we know that Lehman filed Chapter 11 bankruptcy with a loss of $600 billion and Merrill lynch barely made an escape with the help of Bank of America. Let's see where the top-notch banks are and how they performed over the last decade since 2008. The list of banks that we'll be analyzing will be: J.P. Morgan Wells Fargo Bank of America Goldman Sachs  Citigroup Morgan Stanley As you can see that J.P. Morgan and Wells Fargo are the only 2 banks that have advanced in a better way then they have from 1998-2008 than from 2008-2018. Goldman Sachs was able to maintain similar g...

Read Time - 4 mins History of Lehman  It all started in 1844, when Henry Lehman, a German immigrant, came to Montgomery, Alabama and started a small general store in 1844. Henry Lehman and his brothers, Emanuel and Mayer, later founded Lehman Brothers in the year 1950. The company that started by selling dry-goods moved to cotton trade. After the death of Henry  Lehman, in 1855, the other brothers expanded Lehman Brothers and started commodities trading and brokerage services. To complement the growth of the U.S. economy, Lehman Brothers prospered over the decades and reached a value of $600 billion before the collapse in 2008. Although, Lehman has overcome a lot of challenges over the years such as the railroad bankruptcies in the 1800s, the Great Depression in the 1930s, both world wars, the American Express spun off in 1994, the Long Term Capital Management collapse alongside the Russian debt defaults in 1998, the global recession or the subprime mortgage crisis wa...

Read Time - 3 mins Let us see how FinTech gained traction and how it has evolved in the last 2 decades. As we all know that FinTech is not anything new that has originated from a Pandora's box and has existed since the 1950s. In this article, we'll focus on how has it grown in recent years, what was the need for FinTech and how it took such an elusive pace. How the world started heeding FinTech? As the saying goes "In the middle of difficulty lies opportunity", the FinTech startups saw the opportunities during the Global Financial Crisis of 2008. To understand this, let's understand what the global financial crisis was and how it impacted millions of people.   The Global Financial Crisis centered in the US was a downturn in the housing market of the United States. Easier lending processes and the erroneous AAA accreditations of multiple mortgage-backed bonds were the catalysts for the financial crisis. Millions of peoples lost their jobs, multiple ban...

Read Time - 3 mins Shortened for Financial Technology, FinTech is basically a combination of Financial Services and Technology. As the world is advancing more in the technical field and with such advancements in Machine Learning and Artificial Intelligence, the accessibility and accuracy are growing at an elusive pace wherein we all are left with no other option than to adapt to FinTech. Emerging in the 21st century, any innovation which in terms is related to Financial Services and is done with the help of technology can be categorized under FinTech. At its core, FinTech can be used by anyone and everyone and if you observe carefully, we all are surrounded by FinTech and it comes into the picture every time you make payment. There are certain categories in the Finance Sector that are adopting to FinTech or have already adapted to it, there are some huge and recent implementations of FinTech at a global level and to talk a few: Bitcoin is accepted by companies such...