Money Makes the World Go Round: How technology & globalization will change the face of banking in the future

21:01 24 July in Blog
Technology has always had a way of dramatically changing an industry.  The banking industry is no exception.  According to experts, technology, globalization and demographics will be the catalyst that will drive changes in banking over the next 100 years. 
 
Competition in Consumer Banking
Traditional consumer banking will come under intense pressure in the future as insurance companies, pension and hedge funds enter the market place offering such products as online savings vehicles, crowd funding and loan syndications. 
 
Mobile Banking Technology
Experts believe that as mobile banking technology continues to advance, brick and mortar bank branches will become obsolete.  Of the 97,000 bank branches that exist across the U.S today, only a small percentage will actually remain, and may function more like a social gather place where people go to learn about personal finance. 
 
Global Regulation
As technology drives economic interconnectedness among nations, banking regulations will ultimately become more global rather than national in scope.
 
Financial Threat Reduction and Future of Physical Currency 
Large data-applications will dramatically enhance the ability of large banking institutions by reducing losses caused by identity theft and financial fraud.  Additionally, suspicious transfers of large sums of money can be detected in real time with the advent of these powerful tools.  Notwithstanding, cyber criminals will nevertheless find ways to game the system which will pave the way for deposit insurance like entities extending beyond traditional banks which will include theft coverage.
 
Physical currency, like checks and coins will likewise cease to exist in a technology based, global banking system.  As people continue to use hand held mobile devices to conduct banking and other merchant transactions using secure biometrics, the need for physical currency will cease to exist.  Paper currency however will continue to play a small role in global economic society as some merchants may stubbornly adopt a cash-only policy for their own personal reasons.
 
Increased Interest in Financial Services
In the future, Asset Management will play a significant role in the financial services industry.  This will happen due to a shift in global demographics changing our aging populous from consumers to savers.   Nowhere will this be more evident than in the growing middle class sector.
 
The middle class will seek out investment opportunities and will seek out professional advice from financial experts. They will value human relations with financial advisers despite technology. Capstone Capital Group, LLC (“Capstone”) also values human relationships.  They too provide professional and expert advice to small and midsized businesses by offering various commercial financing and options.  Capstone specializes in Single Invoice Factoring (“Spot Factoring”) for firms in need of immediate cash. Spot Factoring provides flexible, no contract invoice selling in exchange for working capital from Capstone Capital Group.  Give us a call today at (212) 755-3636 to find out how we can help you.  

Banks Ease Lending Standards Regardless of Regulations

21:31 17 July in Blog
In a recent report issued by the Office of the Comptroller of the Currency (OCC), certain areas of concern were highlighted which identified where banks took on more risk in pursuit of profits: high-yield loans issued to more speculative borrowers and indirect auto loans issued by banks to through car dealerships.  Similarly, banks are also easing lending standards on commercial loans.  

With demand for financing still at an all-time high, a finite pool of lending opportunities, low interest rates, intense competition, slow growth and increased governmental regulation, banks are feeling the pressure to increase revenue in today’s current economic climate. According to the report, the increased risk taking comes as banks continue struggling to generate strong profits in the aftermath of the 2008 financial crisis. The industry’s overall net income set a record in 2013, rising 12% from a year earlier to almost $108 billion.  The previous record was in 2006, and the fact it took the industry seven years to top that reflects “the weak nature of the banking recovery so far”.

Current regulation, brought about by the Dodd-Frank legislation, which capped the amount of commissions and fees banks can charge for originating loans have seemed to create a scenario where banks are now taking on higher risk loans in order to compete and make a profit in this new era of extreme banking regulations.  It is clear that if congress had truly understood the marketplace, they would not have produced the income problems which Dodd-Frank has unfortunately created.

 

Capstone Capital Group, LLC understands the concerns of commercial borrowers who are considering bank financing.  Accordingly, we offer various business finance options, including “Single Invoice Factoring” which functions as a safer alternative to traditional, and often times unpredictable, bank financing.  Spot Factoring provides flexible, no contract invoice selling in exchange for working capital from Capstone Capital Group.

 

Give us a call today to find out how we can help you.  Our underwriting guidelines are simple, straightforward and not subject to stringent regulatory oversight and control. Capstone Capital Group, LLC specializes in Single Invoice Factoring (“Spot Factoring”) for firms in need of immediate cash. Call Capstone at (212) 755-3636 or email [email protected] today and speak with a representative.


[1]Lenders Are Warned on Risk-Regulator Urges Caution by Banks About Standards Amid Competition, By Victoria McGrane And Gillian Tan

Keeping up the Pace: Embracing changes in technology in order to stay relevant in a digital marketplace

19:55 10 July in Blog
Is your company keeping pace with new innovation and technology?  If the answer is no, it is likely your company will not last very long.  In order to survive in a digital society, companies must embrace and keep pace with changes in innovation and technology.  According to some experts, keeping pace with change means testing new ideas and building new businesses within your organizations, as well as being aware that all media is social. 
 
Investing in IT and technology infrastructure, in addition to marketing expansion and new ventures is key to a company’s growth during uncertain economic times.  According to Futurist Jim Carroll, the top 10% of companies who survived and thrived during the “Great Recession” of 2007-2009, did so by specifically deciding to make bold moves to invest in world-class innovation, despite economic uncertainty. 
 
Soraya Darabi, Co-Founder of Zady and Social Entrepreneur gives five reasons why a company should embrace new media and technology.  The first reason is that understanding innovation as it evolves keeps your company relevant.  Darabi adds that not understanding innovation as it evolves makes your company irrelevant.  Next, Darabi states that by embracing new media and technology, companies create positive brand awareness.  Additionally, a company that evolves technologically will have a better ability to reach new audiences and new demographics.  There is also an opportunity for companies to generate additional revenue by utilizing smartphone app technology. 
 
As you can see, by investing in technology and new media, a company will have the ability to remain nimble, grow and ultimately succeed in a digital economic climate that shows no signs of slowing down. 
 
Capstone Capital Group, LLC wants to help your business succeed by getting you the investment capital you need to help your business grow and continue to stay relevant.  Capstone Capital Group, LLC specializes in Single Invoice Factoring (“Spot Factoring”), purchase order factoring for firms in need of immediate cash. Spot Factoring provides flexible, no contract invoice selling in exchange for working capital from Capstone Capital Group.

Capstone Wishes You a Safe and Happy 4th of July!

18:51 03 July in Blog
The 4th of July is dedicated to honoring our great nation and taking the time to appreciate and celebrate our independence and freedom.

 

Thanks to all of our loyal customers and partners, we continually work together to help this country thrive. Together we build, fund and grow better businesses that benefit our economy and our country as a whole.

 

Look to Capstone Capital Group, LLC, to help your business start, grow and thrive. Capstone prides itself as a factor whose objective is to help its clients succeed. Our partnership, along with optimism and dedication in our free market society, is the catalyst which spurs economic growth and a more prosperous U.S.A!

 

Thank you for your continued loyalty and support. We wish you all a safe and happy 4th of July!
For more information on how to partner with Capstone, please email [email protected] or call (212) 755-3636 to speak with a representative today.

Now Trending! Outlook is Good for Start Up Businesses in the U.S.

19:16 26 June in Blog
According to a recent report detailed in a publication entitled “Global Entrepreneurship Monitor”, 2013 was an optimal year for start up businesses. The report was based on a survey of adult American entrepreneurs between April and June of last year.  The report reflected a steady increase of new business creation since the recession leading up to 2014.
 
A Washington, D.C. economist attributed increases in business creation with access and availability of startup capital, whether from banks, angel investors or family members.  Likewise, in a downturn where credit markets are frozen and capital is more difficult to come by, this consideration is reflected in the overall number of startup ventures in any given period.
 
While the above reflects an optimistic outlook for budding entrepreneurs ready and able to start new business ventures, a different study, conducted by the Ewing Marion Kauffman Foundation (“Kauffman study”), painted an entirely different picture. 
 
The Kauffman study, which based its data from the U.S. Census Bureau and the Labor Department, concluded a lesser percentage of new business startups were created in 2013; and an even lesser amount of startups were created in 2011 and 2012.  A researcher for Kauffman attributed the conclusions of the study to the lower number of “new entrepreneurs coming out of unemployment” or “necessity-driven entrepreneurs” who, out of sheer necessity, are forced to start businesses because they are unable to find full time employment. 
 
Despite the disparity between the two reports, there does appear to be a trend towards economic recovery in the U.S. and an aim by the government, factoring companies like Capstone Capital Group, LLC, and others to help new business start, grow and thrive. Capstone prides itself as a factor whose objective is to help its clients succeed. As your factoring partner, we offer commercial financingsingle invoice factoring, which can provide you with the capital you need to accelerate your cash flow and help your business continue to grow and thrive in today’s market on a more flexible basis than other factoring companies.

 

Optimism in a free market society seems to be the catalyst which spurs economic growth in most cases.   Let’s hope the optimism continues to grow and investment capital remains steady in years to come.

 

For more information on how Capstone can help, please email [email protected] or call (212) 755-3636 to speak with a representative today.

 

Feds Streamline Lending Standards: A Good Idea Or Will History Repeat Itself?

18:35 19 June in Blog
In an effort to assist minority entrepreneurs to borrower funds for business ventures, the federal government recently announced it would be streamlining its lending standards in connection with Small Business Administration (“SBA”) Loans.  In order to increase the percentage of loans made to African American business owners, the SBA will no longer require lenders to perform an analysis of cash flow or debt service coverage on loans of $350,000 or less.  The changes will begin starting July 1, 2014 and according to the SBA, these modifications in qualifying guidelines are aimed at simplifying and streamlining the lending process in an effort to incentivize banks to do more small-dollar loans in order to get more loans into the hands of traditionally underserved entrepreneurs. 
 
We at Capstone Capital Group, LLC find this change in criteria alarming.  As a private financial institution that assists its clients in accelerating their cash flow through Factoring accounts receivable it is our goal to increase access to capital for all qualified business borrowers.  However, providing access to capital to unqualified borrowers who do not have the ability repay will ultimately cause further problems down the line.  Once these no cash flow loans begin to default, Congress will have to act because taxpayer money is at stake.  The laws they ultimately will put in place will end up hurting small businesses access to conventional bank financing as Dodd-Frank has.
 
If history has taught us anything, it is that relaxing underwriting guidelines in an effort to extend loans to “underserving” individuals is not necessarily a good idea.  Like sub-prime commercial lenders in the past that offered small balance, stated income/stated asset with no debt service coverage, commercial loans to business owners who would not necessarily qualify for traditional financing, the government may be going down a dangerous slope with its new underwriting guidelines on SBA loans aimed at what they term as “underserved”.  The government lowering its lending standards to spur loan demand is a recipe we have seen all too often in this country, which ultimately has led to defaults and often times foreclosures. 
 
Recent events in the student loan market support the ultimate end game using relaxed standards.  Prior to the government handling student loans they were administered and underwritten by banks.  Now college graduates are graduating with mountains of debt because the ability to repay is not taken into account.  The tax payers will ultimately bear the burden of paying all of these poorly underwritten student loans back as more and more graduates are under employed and cannot pay their debts.
 
Further, and even more unsettling, is that commercial banks aren’t given similar consideration as they are prohibited from doing the same under Dodd-Frank.  As much as the government may believe loosening lending standards on SBA loans to spur lending to the undeserved is a good idea, these loans may very well be like the recent student loan crisis the government has created. 
 
Capstone Capital Group, LLC prides itself as a factor whose objective is to help its clients grow. As an alternative, we offer purchase order factoringsingle invoice factoring which can provide you with the capital you need to accelerate your cash flow and get your business back on track without undertaking debt you are unable to repay.

 

For more information on how Capstone can help, please email [email protected] or call (212) 755-3636 to speak with a representative today.

 

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