How Lithuania Handled This Law?

This law in Lithuania is very similar to the laws in most European countries. Lithuania did not have electronic money before, however, they had legislation that allowed electronic contracts and electronic signatures. This was used for Bitcoin transactions since it allows cryptocurrency use.

The law was passed on the 13th of September 2017 which made all crypto-related activities legal but required them to register with their financial regulators within three months after passing this law, companies are obligated to follow KYC protocols if they want to avoid being fined or getting into trouble by Lithuanian authorities.

As long as businesses meet these conditions they can issue electronic currencies while also having some restrictions like how much users can deposit without verifying their accounts etc. It’s important to know this when applying for a Lithuania E-money license so that you know the rules and regulations. For example, only €100 would be deposited per user each month. The electronic money electronic license in Lithuania is valid for five years, and it must be renewed before the expiration date.

How The US (Federal Reserve) Regulates E-money?

When it comes to the United States electronic money is regulated by the Federal Reserve. In this case, it refers to funds or values that are stored electronically and can be exchanged through electronic transactions like mobile payments, online banking, e-commerce, etc.

The US electronic money laws consist of three parts:

• the Electronic Fund Transfer Act (EFTA)
• Regulation E, which applies when electronic funds transfers take place within two days
• Regulation Z applies when electronic transactions take more than two days.

The EFTA is the electronic money law that protects consumers from fraudulent activities in electronic fund transfers such as electronic check conversion (ECC), unauthorized use of lost or stolen cards, etc. ECC occurs when a business attempts to collect payment by debiting your checking account even after you have canceled the transaction with them.

The federal government has put in place protections against this illegal activity through an amendment in 1986 to the Electronic Funds Transfer Act (EFTA). This amendment requires merchants who accept debit card payments for goods and services to get their customer’s consent before processing any type of e-check conversion transaction on their bank accounts electronically.

How China Regulates E-money

The Chinese e-money law is regulated through a number of different electronic payment service supervision measures. According to those regulations, an electronic money issuer must provide the following services:

• issuance and supply;
• recharge;
• acceptance by others as well as acceptance from other institutions (with restrictions); and finally

China’s electronic money regulator, the People’s Bank of China (PBOC) has full control over electronic payments and e-money issuance. This includes:

• the power to set rules on electronic payment institutions;
• approval for new electronic payment products
• supervision over these institutions including their risk management practices.

The regulatory framework also outlines how much capital is required by different types of issuers based upon their size, scope of business operations, transaction amount limits, etc.

The European Union’s Rules On E-money

The European Union has electronic money laws that all electronic payment providers must follow. These provisions are to ensure electronic payments can occur across borders without any restrictions or boundaries, and the legislation is aimed at developing electronic commerce in Europe.

These e-money regulations help electronic transactions be regulated by one law throughout EU countries, rather than many different rules for each country’s individual nation. It also ensures electronic payment providers are treated as financial institutions and helps electronic money issuers operate in more than one country.

These laws cover all electronic payment services, including prepaid cards and electronic wallets. They also cover any service that can be used as a substitute for money or give access to a payment account, such as electronic money. These laws also cover a service that offers a combination of electronic and traditional payments.

How Is E-money Handled In Japan?

The Japanese e-money laws are wide-reaching and complex. E-money is electronic money that can be exchanged for goods or services in the same way as cash, checks, debit cards, and credit cards. This includes electronic funds transfers as well as general-use prepaid (GUP) such as gift certificates and mobile phone credits.

The laws governing electronic money include those on banking, electronic funds transfer, payment systems, creation of electronic money, and oversight. These laws are all governed by the FIEA (Financial Instruments & Exchange Act) and the FSA (Financial Services Agency).

E-money laws are regulated differently in various countries and it’s important for you to know how they work in the place you live in. This way you’ll get a license easier because you know your rights and limitations. Some countries are stricter, while others have a little bit looser regulations. Getting educated on this level is crucial!

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Determine What You Need To Track

This is where things can get complicated. You want to make sure that you are tracking the right information in order for your business, but this may require some legwork on your part. To begin, ask yourself these questions:  Is my business a corporation? If so, what type of corporation (S or C) and what tax year does it use for filing taxes. Do I need to track information about employees such as salaries or expenses that might be deducted from their paychecks? Is there anything specific that I need to know about how the IRS classifies my business? Are any of your clients that considered contractors? How do you keep records on this?

Do not forget about any employees who are on commission, as this will affect how they should be paid and what taxes (and social security) needs to be taken out of their paychecks. This can get complicated if your business uses an outside payroll service because these third parties may automatically deduct taxes for your company without considering whether some professionals might make more than $600 per month in commissions alone. This means it would be wise to talk with them first before making deductions from anyone’s paycheck so that both parties understand each other better. You want everyone clear on all expectations when using a payroll service.

Use A Third-Party Payroll Service Provider

If keeping track of it all is just too much, consider using a third-party payroll service. This will take some of the burdens off your shoulders and allow you to focus on growing your business without worrying about what needs to be paid when!

A good place to start would be with the company that provides the benefits package for employees such as a paystubs generator that provides online access for tracking claims, information, etc., In addition, they may also have forms that can help you keep track of any deductions made from each paycheck.

To get started right away look into choosing an online accounting software solution like Xero where it’s easy to set up accounts and make invoices to keep track of everything.

Keep A Spreadsheet

A good place to start is with a spreadsheet. Create columns for the information mentioned above and record it as you go along. You can continue with your tracking method if this works well, but make sure that all of those involved in payroll have access to the records so they know what has been recorded, who contributes how much, etc.,

In addition to keeping track of salary history and pay increases or changes some other details will need attention as time goes on: tax deductions (student loan interest deduction, IRA contributions), 401k matching percentage from employer, Flexible Spending Account elections benefits offered by HR department such as health club membership discounts.

Keep Records For At Least Three Years

Records of salary and benefits should be kept for at least three years (although some experts say keep them longer). This is because the IRS does not have to follow any specific time limit when it comes to requesting information.

For example, if you pay an employee $100 on February 15th, 2014 but don’t record that payment until March 2015 then there is no issue with this as far as taxes go. However, if your business were audited by the IRS in 2016 they would ask about that extra $100 so having good documentation will help clear up misunderstandings easily.

This also applies to deductions made from each paycheck such as tax withholding or 401k contributions which are deducted pre-tax. It is important to have records of this for three years so that if there are any issues or questions about them you can easily show what was paid and when it was paid too.

When You Hire An Employee

When you decide to bring on a new person, the first thing that needs to be handled is payroll. You will need to open up a new tax withholding account for the employee, choose an appropriate payroll frequency (usually weekly or bi-weekly) and submit any W-Forms needed. Most employees are paid via direct deposit so you should provide them with bank information including routing number and account number along with access to online banking if possible. Some companies do still pay by check but this is rare due to all of the security risks involved in mailing checks around.

After that, it’s just a matter of following your records! With everything set up correctly, there shouldn’t be anything more complicated than making sure that each paycheck reflects deductions made pre-tax such as 401k contributions, etc.

When An Employee Leaves The Company

When someone leaves your business it’s time to close that account you created for them.  You will need to close out the withholding account by completing a W-Form and submitting it along with any final wage statements.

You should also submit any final tax reports or forms necessary, including an I-94 Departure Record if they are no longer in the country (this gets submitted when you pay them their last salary). Finally, make sure that all of your records reflect this change so you don’t have anything held over from before!

Keeping track of salary information and taxes for your business can be a daunting task. But it’s important to create an organized system so you know who gets what, when they get it, how much goes where etc. You should have all these aspects in place before beginning work with employees or subcontractors to ensure everything flows smoothly throughout the year.

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About 95% of lawsuits are settled or dismissed before a judge or jury hears them. Defendants may want to avoid negative publicity, especially if they are a business. Plaintiffs may want to avoid fighting a legal battle for years. Both sides may want to avoid the hefty legal fees that accompany a lawsuit. In some cases, a defendant or both parties may decide simply not to move forward with a case.

That’s when a settlement occurs.

What Does a Lawsuit Settlement Mean?

Settling a lawsuit means terminating the lawsuit before a court has ruled for one side or the other. Typically, this involves agreeing to mutually acceptable terms for dismissing the suit. Terms may include compensation or some other concessions.

In some cases, lawsuits may be settled without any compensation. Because lawsuits can be expensive and time-consuming, many cases settle to avoid the high cost of litigation. A settlement effectively ends the dispute.

Settlements can happen before a lawsuit is filed, before court proceedings have occurred, or even during a trial. Many cases settle just before or during a court proceeding, especially if one side feels like a case is not going their way or they want to avoid the legal fees for a protracted legal battle.

Do Companies Ever Settle Lawsuits Without Winning or Losing?

Companies settle lawsuits frequently without declaring a winner or loser. In many cases, a condition of settlement may include a statement that a defendant does not admit to being at fault.

Sometimes, both parties will review their options and decide it’s in their best interest to end the suit. This happens frequently in cases where one side files a lawsuit and the other side files a counterclaim. In these cases, neither party wins or loses, and both are typically responsible for their legal fees.

For example, Aetna recently ended a lawsuit it had filed against medical group Mednax. Aetna alleged that Mednax had overbilled them for medical procedures by more than $50 million. It claimed that Mednax listed billing codes to exaggerate the care needed and encouraged its physicians to perform unnecessary services with higher reimbursements. After three years, the suit was terminated voluntarily.

In another example, Fortinet filed a complaint against FireEye, alleging the defendant had infringed on its patents. Both parties agreed to dismiss claims.

In a case between the town of Buena Vista, Colorado’s board of trustees, and its former mayor, both parties settled the dispute without declaring a winner, loser, or paying compensation. Instead, the parties agreed to not move forward, and the lawsuit was dismissed.

Alternative Dispute Resolution

Parties to lawsuits will often turn to alternative dispute resolution (ADR) as a way to settle a dispute without going to court. ADR uses arbitration, mediation, and negotiation to settle claims that might otherwise wind up in litigation.

Often, this involves hiring an independent third-party mediator to listen to the arguments from both sides and act as an impartial guide to create a legal resolution. Some states, such as Michigan, conduct pre-trial case evaluations in civil cases where independent attorneys evaluate a case and suggest resolutions or come to a finding that there is no cause for action.

What Happens to a Lawsuit After Settlement?

When a case is settled, it happens outside a courtroom. Whether it occurs through arbitration, mediation, or conference between lawyers, the parties to a lawsuit agree to settle and are then bound by the terms of the settlement agreement.

The settlement agreement spells out the terms of the agreement and typically includes:

• Any agreed-upon compensation (if any)
• Confidentiality agreements
• Any terms specific to the claim
• A full release of liability

Once a settlement agreement has been concluded, an attorney for the complainant will file a dismissal with prejudice with the appropriate court to end the lawsuit. A dismissal with prejudice means that the case has been dismissed permanently and may not be filed again for the same cause of action.

Can a Lawsuit Be Reopened After Settlement?

Once you settle a lawsuit, that is typically the end of your case. You have agreed to the terms of a settlement, which usually includes a waiver of future claims regarding your reason for originally filing the suit.

However, there are occasions where you may be able to reopen a lawsuit after a settlement. For example, you may agree on a dollar amount for settlements but may be unable to agree to the terms of release for additional claims. In this case, the settlement agreement would not be completed, which would allow you to refile a suit.

If you sign an agreement, it is a legally binding document. Even if you believe you should not have signed it or received bad advice, once it’s signed, it’s done. You may be able to file a separate lawsuit against your legal counsel if you believe they committed legal malpractice, but that is an exceptionally difficult case to prove.

Cases can be reopened when there are allegations of neglect, fraud, or mistakes of law. There are also cases where you settle with one defendant in a suit but are free to pursue legal action against others that are involved. It will depend on the language within your settlement agreement and the terms you negotiate with the defendant.

If a case has been dismissed without prejudice, it can be refiled. This is sometimes the case if a lawsuit is settled without compensation or dismissed voluntarily.

The majority of lawsuits get settled before going to court. In many cases, neither side is declared a winner or loser. In a settlement, both sides come to an agreement. This includes ending the lawsuit and usually agreeing to not pursue future claims by the plaintiff and no admission of guilt by the defendant.

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Let us now discuss about what is the BFSI sector and the drivers of transformation in the BFSI sector

From AI and Blockchain-powered financial services to omnichannel banking, today’s world is experiencing developments in the finance and banking industry. Today that concentrates on revolutionizing BFSI processes by holding customers at the center of current and future tactics. Digital is the future of the BSFI sector, and digitalization is the critical component that runs and drives this digital revolution. It is now archiving all that is manual or paper-based and is translated into digital format. Such efficient processes allow banks to experiment with and explore business processes. Many disruptive technologies are in use today, such as robotic process automation, blockchain, cybersecurity, and artificial intelligence.

Fintech is a compelling platform for digitalization or financial technology. Because of the new technological developments at their disposal, fintech companies worldwide are evolving from the conventional norms of the BFSI market. The BFSI sector is now at the client’s pressure points and threats. Currently, the fintech industry is rising rapidly, with the ever-changing dynamic of customer needs and behavior.

Drivers of Transformation

• Digitization & Digitalization

The emergence of services like Internet-enabled banking, Real Time Gross Settlement, Transfer of National Electronic Funds, and IMPS has lowered operational costs. They help the front lines make less human mistakes than before and contribute to their profit margins.

• Cognitive Analytics and AI

Cognitive Analytics and Machine Learning facilitate information discovery and data-driven decision-making in all sectors of the business. To pull out insights from complex datasets, these technologies put the data in the center and analyze and process it. AI technologies help reduce the difference between the reality of actionable decision-making and Big Data’s purpose. The perfect data goldmine for Cognitive Analytics is the BFSI sector. Valuable insights from unstructured information can produce insights from unstructured data using Deep Learning, Predictive Analytics, and Machine Learning. BFSI businesses use customized insights such as offerings for consumers and customer-brand interaction.

• Robotic Process Automation

RPA technology is specially designed to mimic acts carried out by humans based on basic rule-based processes. An application’s user interface level can be dealt with by RPA systems. This is to emulate the exact steps efficiently in the same manner as those operating through several applications. RPA is cost-effective, fast to implement, and very scalable.

• Blockchain

Blockchain is an evolving technology in the BFSI sector and is, therefore, capable of significant changes. In the financial and banking industries, blockchain technology has a lot of potential to create ripple effects. Banks not only collaborate with Blockchain and DLT specialized Fintech startups. But also promote cooperation between them as they realize that reciprocity is crucial to successful implementations of Blockchain.

• Fintech – Payments Banks Partnerships

By investing in Fintech and partnering with Fintech firms, Payment Banks aims for a long-term economic push. By removing intermediaries from the supply chain, PBs reduces transaction costs dramatically. PBs do not face the issues that conventional banks typically face when implementing new technologies. Therefore, it is likely to respond rapidly to customer preferences and industry shifts. PBs will tap into a much more extensive segment of the value chain due to their high versatility.

• Cyber Security

Anything that gets digitized becomes vulnerable to cyber threats and hazards. The BFSI sector faces the same threat. As cyber threats are continuously evolving, financial services companies and banks seek to tap into smartphone users’ vast demand. Therefore, banks have a unique digital wallet that offers a broad range of services and reduces the chances of cybercrime.

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Listed below are some of the latest trends in banking and developments expected within the sector over the next five years.

• Utilizing Fintechs For a Better Customer Experience: By collaborating with fintech, banks may deliver value-add solutions to their customers that fall beyond their areas of expertise, and the demand for such collaboration will continue to increase. By using alternative data sets and improved underwriting models to delivering instant money transfers to customers, banks can boost their services at low cost while increasing speed to market.
• The Rise of Neobanking: Expect to see the growth of direct mobile banks in the next five years. Neobanks now attract millions of customers across the country, indicating a shift in consumer preference from conventional, branch-based physical banking to digital-only solutions convenience.
• Automated and Personalized Customer Experiences: One of the main changes observed with different banking clients is that many of them recognized that they are spending additional resources in carrying out repetitive processes. Banks also realized that automating some of these would help free up human resources to carry out value-added operations, resulting in quicker execution, more efficiencies, and customer experience personalization.
• Blockchain and Decentralized Solutions Replacing Most Banks: Blockchain-based technologies are triggering the most significant shift to the banking industry, which allows for about instant peer-to-peer money transfer. Besides, decentralized finance solutions based on smart contract systems, such as Ethereum, already allow systems to lend without the need for financial institutions. These approaches could dominate financial services within five years.
• Better Regulation: Modern banks will focus on making deposits and investing for beneficial purposes and leaving innovative new fintech and digital companies with other financial services. This decouples risk, liquidity, and “know your customer” and increases the conflict of interest arising from the dual objective of modern banking — the safety of consumer money and financial returns for its shareholders.
• The Democratization of Consumer Finance: Secure, mobile-forward solutions will continue to provide quick, real-time “anywhere, anytime” answers to customer wants and needs. Such AI-fueled systems can handle and leverage the full-stack financial potential of an individual — available liquidity and credit-support capability — from a relational and holistic viewpoint, not the isolated transactional nature of today’s banking.

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There has been a considerable increase in devices from just millions to billions in only a few years, while also increasing the time people spend on the devices. It was estimated in 2016 that 75 percent of the world’s population had internet access, often connecting more than 6 million devices. With 4.5 billion people retrieving the internet in 2019 and raising the amount of devices linked to the internet, the IoT becomes a fascinating thing. IoT developer teams are helping banking institutions develop apps that help transform the customers’ experience of utilizing IoT data.

So how do the banking services get benefited from the IoT, and what are some of the solutions it provides?

Banking Facilitated by IoT

There are billions of devices that have something connected that provides an intelligent system of other systems. Through the cloud, these systems and intelligent devices share data that is analyzed to help transform businesses, people’s lives, and the world in different ways. Banks can have a full view of customer finances in real-time because the customers used smart devices to access data. The data is easily shared between millions of devices, from the customer’s end to the bank’s end side. Through the data collected by banks, they can anticipate customer needs and provide solutions and advice to help customers make sound and smart financial decisions. The ‘Bank of Things,’ therefore, becomes a powerful tool to facilitate the banks’ increase in customer loyalty, which in turn brings more business to the banks. In addition, banks engage and communicate with the customer frequently providing advice via cell phones. In terms of the purchasing patterns of the consumer, you can see a similar approach. Banks can communicate with their customers in many ways – by providing advice, for example, and by rewarding customers in certain areas of life, not just in finance.

Advantages of IoT in Banking

IoT provides many advantages when it comes to banking. This offers not only debt but also credit cardholders with reliable, easy-to-access services. The banks can determine how customers use ATM kiosks in various areas and decrease or increase the installation of ATMs in those places, depending on the usage volumes. In addition, banks can also use IoT to bring on-demand services closer to customers by installing kiosks and enhancing customers’ access to banking services. IoT provides customer data that helps banks identify their customers ‘ business needs and value chain, e.g., retailers, suppliers, and distributors. The data also lets the banks gain insights into customers. The customer information accessible via IoT allows banks to provide value-added services, personalized banking services, and products, and financial assistance to ensure that the parties involved, the consumer and the bank are in a win-win situation.

In the agricultural sector, farmers who are the banks’ customers can gain solutions from the IoT. For instance, banks are able to analyze agricultural output in addition to other crop farming conditions that allow the banks to estimate the crop output value. Based on the crop yield calculated via IoT, the banks can provide flexibility based on expected yield, frequency, and crop performance, when it comes to financial terms. Such knowledge will help the farmer and the banker develop a stronger relationship.

In addition, banks can also predict credit card fraud and debit transitions that will allow them to take appropriate action to prevent the problem. When a consumer swipes their card, they provide the account holder’s verification via system location, and the bank may easily refuse or accept the transaction based on the information obtained. Besides, sensor devices can be mounted within borrowers’ warehouses to monitor both raw materials and inventory. The monitored data will help the bank minimize the account balance or make sure that when the inventory sales occur, a loan that had been lent is repaid. By doing so, banks can mitigate overhead tracking costs and prevent borrowers from indulging in shoddy practice. Banks wanting IoT apps will recruit IoT developers to help build not only the apps but also manage them. The apps can be tailored to suit the banks’ needs and solve a particular problem.

Other advantages of IoT in Banking include:

Improved Financial Practices for Customers

Utilizing connected devices can enable bank customers to change their financial habits and tackle the over-spending problem. One of the earliest IoT banks, Interact IoT started to use shock wearables as a part of a user’s education program. If a user has set a credit card limit, the wearable will monitor the customer’s spending all day long. An alert will be elevated as the limit approaches. If the user ignores the signal and continues to spend, the wearable would send a shockwave to their wrists, which served as a potent reminder that their spending and the daily limit are not all very well.

Enhanced Banking Experience

IoT affects customer service banking in different ways. It gives customers timely insights and individualized experience. Device connectivity enables a visitor to schedule an appointment and be able to check it inside their smartphone. What this means is that customers know when it’s their turn to stand at the counter, instead of waiting in a line. Not only that, but the bank also keeps the customer’s visits in their database, the services they use whenever they visit the bank, and their questions.

Expanded Range of Service beyond Banking

Banks can use IoT technology to expand their range of services beyond traditional ones offered to their customers. For example, U.S. banks began using IoT initiatives to help motivate their clients to keep fit. Bonuses and financial rewards are granted when the customers complete achievements. This helps foster a robust Bank-Customer relationship. This helps foster a strong Bank-Customer relationship. It makes customers feel their bank is looking after their health.

Efficient Branch Banking

The modern branch system in banks is under threat from mobile banking. While banks are keen to maintain the traditional banking approach and ensure that it adds value, financial institutions need to use technology to meet demands.

Banks use the IoT and other banking applications to resolve the conflict with mobile banking that is seen in traditional branch banking. Biometric sensors, for example, can be used to gather user data while entering the bank and relaying the information to the primary system. Utilizing smart branches allows bank managers to reduce both the number of staff and the maintenance costs while also reducing the waiting time for the client. The managers create a connected system of communication between different branches at different locations. BMO Harris Bank tested the smart branch, where there are no real employees. In this case, a user often gets guided by a system or chatbots based on technology. There are random questions, so the chatbots can use video conference tools to contact a real human consultant.

Improve Credit Card Experience

IoT also allowed interactive credit card development. Instead of having a piece of plastic card, a bank customer interacts and engages with a digital display that will enable them to pose questions to the bank in real-time and, among other things, tweak their credit card limit settings right at a shopping site.

Conclusion

The increased use of devices by bank customers had led to an increase in IoT data usage. Banks now use IoT data to improve their customer interactions and deliver personalized services and products. Today, banks need to turn the IoT-derived data into useful information that will help them make informed decisions. The banks can increase their market share through the data obtained, while also offering better services for the customers. Companies may consider hiring an IoT developer to get the affordable Internet of Things app development.

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Several banks are now teaming up with financial technology (FinTech) companies to provide their customers with innovative banking solutions in their attempt to digitalize. Considering research, AI is expected to save the aggregate potential cost to banks of about US $ 447 billion by 2023.

The Need of AI in Banks

In recent years the banking industry has undergone revolutionary changes using state-of-the-art technologies. Also, they broaden their industry landscape to include retail, IT, and telecom to allow mobile banking, e-banking, and money transfer services in real-time. But these are also leading cyber risks, as the transfer of sensitive information across virtual networks continues to grow, and banks fall prey to fintech players’ competition.

Moreover, using cognitive technology with AI brings the benefit of digitization to banks and helps them face the pressure that agile fintech leaders have raised. According to joint research carried out by the National Business Research Institute and Narrative Science, approximately 32 percent of financial service providers are currently using AI tools such as voice recognition, predictive analytics, among others.

In addition, there are many reasons why banks are increasingly implementing AI applications, including massive competition in the banking sector; pressing for process-driven services; consumer demand to provide more personalized solutions; growing employee productivity; a dream to extend human labor through the use of robotics software; generating operational efficiencies; taking effective decisions and taking effective decisions and much more.

Strengthening the Profitability of Banks

Today, banks leverage AI to optimize a range of processes, including Accounting, Merchant Services, Fraud and Cybersecurity, Risk Management, Compliance, Customer Care, Funding and Loans, Asset Management, Internal Audit, and Sales.

Most banks are very much aware of AI’s potential advantages as it provides:

Enhanced Customer Experience – Customer Support is at the core of every company. AI can be leveraged here to gain a deeper understanding of purchasing habits for customers that will help banks tailor products by complementing customized apps and building strong customer relationships.

Efficient Decision-Making Capabilities – Harnessing cognitive systems provides effective real-time strategies based on available data as it considers and reacts as human experts do. Such systems maintain a collection of expert knowledge in their database that allows bank managers to use it for making strategic decisions.

Future Consequences and Trends Prediction – AI helps banks envisage future results and patterns as the system is capable of analyzing past behaviors. It also helps to spot fraud, anti-money laundering activities, and make recommendations for clients. When AI detects such concealed actions, it helps save millions of amounts for banks.

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As there is no vaccine so far to prevent the spread of coronavirus (COVID-19), the only option people have is to reduce exposure to the virus. That is attempted to accomplish by social distancing, personal hygiene measures, and avoiding interaction with the infected individual. In order to reduce the risks associated with the contagiousness of the disease, many countries and their cities are shut down, and quarantine measures are imposed on the entire population. This has confined people to their homes unless they are required to buy food, medication, or receive medical attention.

Other than that, global and small businesses all over the world have developed mandatory work-from-home policies amid COVID-19 spreading. To avoid further spread of the disease, people are advised to avoid social gatherings and travel to different countries/cities. These limitations have led to a slowdown of business in some industries while there are some which are least affected by the pandemic. Entertainment, finance, tech, the hyper-local marketplace, tourism, retail, and hospitality are some of the sectors which are getting affected by the COVID-2019.

Tech Industry

This year, due to the coronavirus outbreak, 10 big tech conferences have been canceled, including Google I/O, Mobile World Congress, Facebook F8, SXSW, Electronic Entertainment Expo (E3), etc. Coronavirus has a mixed influence on tech enterprises. Despite the strategy of work-in-isolation being a rule for workers, some companies making the most of it in terms of income. For instance:

• Slack Technologies Inc. states that there is a rise in interest in workplace-collaboration technologies due to the global effects of COVID-19.
• Zoom, an enterprise video chat system in the 2nd week of March 2020 (according to App Annie), is one of the most downloaded business applications in the US on the Apple Store.

As technology companies have closed their offices and stores, forcing their executives not to travel to the affected areas, the supply chains have been adversely affected. Manufacturers in China, for example, are the leading suppliers to the global technology firms. Manufacturers are impacted by coronavirus struggle to deliver on time, thus affecting multiple tech firms.

On the other hand, IT organizations are recognizing the advantages of outsourcing more than ever. Remote work has been given preference in the COVID-19, and therefore functions such as development and maintenance of software are least affected by the coronavirus.

Insurance Industry

The increase in cases of coronavirus can end up requiring some forms of insurance. While the COVID-19 virus continues to dominate the media, there is an increase in demand and recognition of health and life coverage insurance policies. Demand for life and health insurance policies saw a 35-40 percent rise in online insurance platforms. On the other hand, because of travel restrictions, travel insurers have seen a fall in the amount of insurances. Depending on the form of the insurance business is involved with, the insurance sector has positive and negative consequences of the Coronavirus pandemic.

Sports & Entertainment Industry

The coronavirus outbreak has adversely affected the film industry. However, as more people stay at home, in self, and are taking quarantine steps, the use of digital entertainment platforms such as gaming, video-on-demand, etc. is growing. According to the Financial Times, after the national isolation steps were taken, the number of apps downloads in China soared. Video streaming companies such as Netflix, Amazon are projected to see an increase in the number of subscribers on COVID-19’s effect.

• Disney and Universal Studios have decided to shut down many theme parks because large gatherings could trigger coronavirus spread.
• The NBA has suspended its season following a positive COVID-19 check for a player. Also, because of coronavirus, Arsenal Football Club has put its players in self-isolation and postponed the Manchester City game.
• Movie theaters are temporarily locked up in parts of India, following the spread of COVID-19.

Hyperlocal Marketplaces

Although there is a market downturn, and people are isolated to reduce COVID-19’s effects, hyperlocal delivery services make the most of that. Doorstep delivery services are gaining ground for food, medication, pharmacy, packages, etc. To make it easier for users and riders, food delivery companies such as Deliveroo, Postmates, Instacart, Zomato offered options for choosing contactless delivery where the rider drops off the package outside the house.

Travel & Tourism Industry

The coronavirus outbreak has severely affected the travel & tourism industry. With COVID-19 being a pandemic, people are avoiding travel to various countries and cities, which has adversely affected the travel industry and impacted the tourism benefits of the countries affected. Airlines are slashing frequencies and travel prices significantly, as more customers choose not to fly during the outbreak. Global airlines could lose $113 billion in revenue if the coronavirus continues to spread at this pace, according to the International Air Transport Association (IATA). At the end of the year, according to IATA, airlines may experience an 11-19 percent decline in global passenger revenue.

Retail & eCommerce

Malls, shopping centers are shut down temporarily due to COVID-19. Often, when people are distancing themselves from social events and crowded rooms, they tend to order their favorites or online needs. The same is true in the retail industry. On the contrary, digital companies are seeking to leverage this situation to the full. But surviving in such an outbreak remains a daunting task for eCommerce businesses.

Fintech

The spread of COVID-19 has proven to be the biggest threat to the global economy and the financial markets. If we look at the effect in the short term, we might see investors making healthier business investments. This means that there are fewer capital market transactions, a negative impact on VC funding from both current and new fintech firms. The Fintech industry has seen a decline in transactions at all rates. Because people are self-isolated to shield themselves from the spread of COVID-19, they spend less than average, resulting in a low transaction rate. In reality, cryptocurrencies such as Bitcoin, Ethereum experienced a significant dip amid the impact of coronavirus.

However, in the end, policies, wellbeing, and our own life are largely beyond our control. Scenarios and job excitement can be valuable ways of imagining a potential future. We need to make a strategy that avoids and plans for those futures that we don’t like, wherever possible.

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According to a study published by Forbes, “over 2.5 quintillion bytes of data are generated each day.” This is a massive number, and thus the significant increase in the number of consumers puts a humongous burden on the rate of services offered by these organizations.

Stakeholders are now seeking new ways not only to organize their data but also to use this data to track the behaviors of their customers. In this way, companies can use the data to provide their customers with the exact type of services needed at any given time. Big Data assets have become a key player for BFSI organizations to support them in a variety of areas that provide better customer service for such organizations and boost efficiency and profitability.

Why do BFSI organizations seek big data?

Big Data can assist BFSI organizations not only in managing their data but also in enhancing customer service. Listed below are the ways in which big data can benefit organizations:

• Customer Experience
• Operation Optimization
• Employee Engagement

Big Data helps in Enhancing Customer Experience: Customers often put high expectations on the way their banks choose to communicate. With the increasing number of customers, it has become difficult for banks and other organizations to fulfill rising customer’s demands. Big Data lets the companies get a 360-degree view of their customers. It offers necessary personal information, a history of purchases, browsing history, and other related details to help companies build customer segmentation. Big Data also helps to make strategic decisions that can bring a significant increase in marketing productivity.

Big Data Offers Operation Optimization: Big Data can help BFSI organizations improve their risk model predictive power, which is the main reason why it is gaining popularity in the banking sector. Big Data offers excellent coverage of the risk and significant cost savings. Big Data can be utilized to attain risk intelligence in Fraud and Credit Management, Market and Commercial Loans, Operational Risks, and Integrated Risk Management. Big Data helps detect fraud signals that are analyzed using machine learning and detect legitimate users or transactions in the end.

Employee Engagement is a Hidden Potential of Big Data: Big Data is not only for customers, but it also helps in tracking the success of employees. Companies can classify their top performers with the aid of Big Data, and if applied correctly, it can help companies in improving their success ratio. With the right technology, such as analytics, an organization can track, evaluate, and share: individual efficiency, team spirit, departmental engagement, and overall corporate culture. Big Data lets businesses assess their success regularly, not just annual reports based on it.

Big Data, in combination with other global developments, will help BFSI companies in achieving a more durable grip both internally and with their clients and consumers, which will allow in offering better services with fewer operating costs in real-time.

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Listed Below are Few Technology Trends Transforming the Insurance Industry

• Predictive Analysis: Many insurers use predictive analytics to collect a range of data to understand and forecast consumer behavior. There are also new ways in which it can be used to boost data quality. Insurance companies may use predictive analytics to select rates and costs, classify clients at risk of loss, classify fraud risk, triage claims, identify outlier claims, and anticipate trends.
• Artificial Intelligence (AI): Consumers often seek customized experiences, especially when purchasing something as crucial as P&C insurance. AI allows insurers to build such exclusive skills, fulfilling modern consumers’ high-speed demands. With AI insurers can increase turnover times of claims and radically change the process of underwriting. AI also helps insurers to access data more efficiently, and cutting down on the human factor will lead to more reliable reporting in shorter times. The initial effect of AI would mainly be related to increasing efficiencies and automating current underwriting and claims processes for customers. Its impact will be broader over time; it can define, analyze, and underwrite emerging risks and define new sources of revenue.
• Machine Learning (ML): The developments in insurance technology in recent years will involve the convergence of different innovations, all in the context of enhancing precision. According to Forbes, “Machine learning is an AI branch, but it’s more basic. ML is based on the premise that we can create data processing and learning machines on their own, without any constant supervision.” ML can not only enhance the interpretation of statements but can also simplify it. When files are digital and available via the cloud, they can be analyzed using pre-programmed algorithms to increase the speed and accuracy of processing. This automated analysis can have more effect than merely claims-it can be used for decision management and risk assessment.
• Internet of Things (IoT): Most consumers are willing to share extra personal information if it means saving money on their insurance plans–and much of that data sharing can be automated through the Internet of Things. Insurers may use data from IoT devices such as the various components of smart homes and wearable technology to help assess prices, reduce risk, and, in the first place, even avoid failure. IoT can bolster other insurance technologies with first-hand data, improve risk assessment accuracy, and give the insured’s more power to influence their policy pricing directly.
• Social Media Data: Social media and its role in the insurance industry are expanding beyond marketing and intelligent advertising strategies. Mining social media data increases risk management for P&C insurers, bolsters resources for fraud prevention, and unlocks entirely new consumer experiences. Insurance technology can also exploit social media for fraud investigations. Insurers may look at the insured’s social behavior and equate it to records of claims, finding any inconsistencies.
• Telematics: Telematics technologies will continue to impact auto policies. Think of telematics in insurance technology like wearable devices for your vehicle. Cars fitted with tracking tools — thinks Progressive’s Snapshot — track various indicators such as pace, venue, incident, and more, all of which are monitored and analyzed using analytics software to assess your policy prime. For both insurers and insured are the advantages of telematics various. Telematics in P&C insurance can promote improved driving habits, lower insurance premium rates, and shift the insurer from reactive to constructive to the consumer relationships. Telematics has various advantages for insurers as well as for insured’s. Telematics in P&C insurance should promote healthier driving practices, lower insurance premium rates, and move the insurer from reactive to constructive to customer relations.
• Chatbots: According to some estimates, chatbots will dominate 95% of all customer interactions by 2025. Using AI and machine learning, chatbots will communicate effortlessly with clients, saving everyone in an operational time–and eventually saving money for insurance companies. A bot will guide a customer through a process of implementing policies or claims, reserving human interaction for more complex situations.
• Drones: Unmanned drones are an insurance-technology device that insurers will use more in the coming years. They can be used in several phases of the insurance lifecycle–gathering data to quantify risk before implementing a policy, helping with preventive maintenance, and determining loss after loss. Farmers insurance is a perfect example, as they deploy drones to assist household risk management and damage assessment. Such drones carry out roof inspections and other tests, and the drones forward their data for review to the cloud. This is yet another instance in the insurance industry, where IoT and other innovations work together.

P&C insurers are also on the lookout for the new and most significant insurance product advancements. Not only does it help them stay ahead of their rivals, but it also provides the experiences that consumers want in the competitive market. With all the innovation that has been on the market in recent years, from smart home technology to insurtechs and micro-services, it will be fascinating to watch for insurance technology developments.

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