Jack Dorsey, chief executive officer of Square Inc. and co-founder of Twitter Inc., talks about Square's mobile-payment service. Dorsey also discusses Twitter's usage and management. He speaks with Emily Chang and Cory Johnson on Bloomberg Television's "Bloomberg West." (Source: Bloomberg)
Thursday, 2 June 2011
Sunday, 29 May 2011
Google Wallet: Is it for mobile payments or is it an advertising platform?
Timothy Kelly of the International Business Times poses an intriguing question – is Google’s recently announced Google Wallet about mobile payments or is it an advertising platform? You can take in Timothy’s comments HERE.
Saturday, 28 May 2011
Is technology killing the e-mail?
By Stanley Epstein, Principal Associate, Citadel Advantage.
Once upon a time e-mail was a simple uncomplicated affair. It was a fantastic tool for sending out and receiving communications in "almost real-time". We put up with those slow 64k dial-up modems. After all, this was state of the art hi-tech. Even with these delays this new fangled "e-mail" beat the pants of regular snail-mail.
Somehow, perhaps because e-mail was technology based, many of us, who in the normal course were terrified of putting a real pen to a real sheet of paper, were turned into regular e-mail fans. We became addicted to this new way of communication.
Of course, as with any other communications medium, advertising soon got into the act. Advertisements, special offers, promotions, and all other sorts of rubbish got into our e-mail boxes too. "Junk-mail", so familiar our real-life mailboxes got into our e-mailboxes as well.
However, unlike its original physical manifestation that came via snail-mail, which had to be physically trashed, virtual junk-mail could be blocked, isolated or trashed by a host of automated devices – so-called technology solutions. Blacklists, Spam filters, Verification processes; you name it, someone has invented it.
The pity is that none of this system based e-mail protections really work as they should. To make matters worse, we human users act like sheep, and trust these so-called solutions implicitly. After all, can they really go wrong?
Our trust in these processes has become overarching that these technology based solutions are beginning to kill regular e-mail communications in a really big way.
Genuine e-mails don’t get through. Legitimate business communications are blocked. Vital documentary attachments are deleted or rerouted to some silo that requires the actions of some techie to release. What should have taken seconds to complete is now back into the "days" category once more, especially if your Systems Administrator just happens to be on a course (what, another one?).
We have become prisoners of the systems that were supposed to protect us.
And all the while, the real junk still seems to make it into my Inbox, each and every day.
A case in point - my firm regularly bills clients for services rendered using e-mail. We send out PDF invoices. Its fast and its efficient and highly cost effective. Or at least it used to be.
Recently, after sending out one such invoice, which remained unpaid some three weeks later, we sent out our regular e-mail reminder. No response. A second reminder; still silence. Finally, a phone call had to be made. Given that the parties are some 4,000 miles apart this exercise was now starting to get expensive. And where were the missing e-mails? In the recipient's Junk-Mail of course.
I rest my case.
Once upon a time e-mail was a simple uncomplicated affair. It was a fantastic tool for sending out and receiving communications in "almost real-time". We put up with those slow 64k dial-up modems. After all, this was state of the art hi-tech. Even with these delays this new fangled "e-mail" beat the pants of regular snail-mail.
Somehow, perhaps because e-mail was technology based, many of us, who in the normal course were terrified of putting a real pen to a real sheet of paper, were turned into regular e-mail fans. We became addicted to this new way of communication.
Of course, as with any other communications medium, advertising soon got into the act. Advertisements, special offers, promotions, and all other sorts of rubbish got into our e-mail boxes too. "Junk-mail", so familiar our real-life mailboxes got into our e-mailboxes as well.
However, unlike its original physical manifestation that came via snail-mail, which had to be physically trashed, virtual junk-mail could be blocked, isolated or trashed by a host of automated devices – so-called technology solutions. Blacklists, Spam filters, Verification processes; you name it, someone has invented it.
The pity is that none of this system based e-mail protections really work as they should. To make matters worse, we human users act like sheep, and trust these so-called solutions implicitly. After all, can they really go wrong?
Our trust in these processes has become overarching that these technology based solutions are beginning to kill regular e-mail communications in a really big way.
Genuine e-mails don’t get through. Legitimate business communications are blocked. Vital documentary attachments are deleted or rerouted to some silo that requires the actions of some techie to release. What should have taken seconds to complete is now back into the "days" category once more, especially if your Systems Administrator just happens to be on a course (what, another one?).
We have become prisoners of the systems that were supposed to protect us.
And all the while, the real junk still seems to make it into my Inbox, each and every day.
A case in point - my firm regularly bills clients for services rendered using e-mail. We send out PDF invoices. Its fast and its efficient and highly cost effective. Or at least it used to be.
Recently, after sending out one such invoice, which remained unpaid some three weeks later, we sent out our regular e-mail reminder. No response. A second reminder; still silence. Finally, a phone call had to be made. Given that the parties are some 4,000 miles apart this exercise was now starting to get expensive. And where were the missing e-mails? In the recipient's Junk-Mail of course.
I rest my case.
Facebook Gets Roasted By Google, Twitter & Foursquare
What do Twitter, Foursquare and Google have to say about Facebook.
In this College Humor video, Facebook is the target of Twitter (played by Gilbert Gottfried), Google (played by Penn Jillette) and Foursquare’s (played by Lisa Lampanelli) endless barrage of jokes. Of course Friendster, Reddit, Pandora and the rest of the social media universe join in on the fun.
In this College Humor video, Facebook is the target of Twitter (played by Gilbert Gottfried), Google (played by Penn Jillette) and Foursquare’s (played by Lisa Lampanelli) endless barrage of jokes. Of course Friendster, Reddit, Pandora and the rest of the social media universe join in on the fun.
Monday, 23 May 2011
Orange and Barclaycard launch UK mobile phone payment service
In the UK Orange and Barclaycard have formally launched 'Quick Tap', a contactless mobile payment service which allows consumers to make purchases on the high street using their mobile phones.
Launching with a Quick Tap enabled version of one of Orange's best-selling devices, the Samsung Tocco Lite, the Samsung Tocco Quick Tap will be available on pay as you go and pay monthly price plans, with more handsets expected to follow from other device manufacturers in the coming months.
Barclaycard, Barclays debit or Orange Credit Card users can transfer funds of up to £100 onto the handset's Quick Tap app, after which the phone is ready to make payments of £15 and under in a single transaction. The device can be used at any retailer terminal capable of accepting contactless debit and credit cards.
Launching with a Quick Tap enabled version of one of Orange's best-selling devices, the Samsung Tocco Lite, the Samsung Tocco Quick Tap will be available on pay as you go and pay monthly price plans, with more handsets expected to follow from other device manufacturers in the coming months.
Barclaycard, Barclays debit or Orange Credit Card users can transfer funds of up to £100 onto the handset's Quick Tap app, after which the phone is ready to make payments of £15 and under in a single transaction. The device can be used at any retailer terminal capable of accepting contactless debit and credit cards.
Friday, 20 May 2011
Another digital gold rush? New US high-tech start-ups
Pier 38 in San Francisco is a hub for young internet startups, some of whom could become quite rich if their timing is right. This video from The Economist online.
Saturday, 14 May 2011
How Banking Systems Originally Started
How a clever idea of some young bank clerks to maximise their leisure and drinking time, led to the development of the enduring worldwide bank cheque clearing system. To read the full article CLICK HERE.
The Risk Involved With Trading Foreign Currency
By Stanley Epstein, Principal Associate, Citadel Advantage.
The word “risk” is pretty high in most folk’s awareness these days. This greater consciousness of the “R” word has in part been driven by the 2008 financial crisis and its persistent refusal to “go away”. Any article on risk needs to set its baseline by ensuring that the word “risk” has a clear definition.
There are many different explanations of the word risk. My preference is to keep it short and to the point. Dictionery.com’s definition that “risk” is “exposure to the chance of injury or loss” suits me fine.
The concept of trading in foreign currencies also needs some explanation. The events of the past few years have led to the impression that foreign currency trading is somehow “bad” and that it is linked to speculation and shady deals.
Let us dispel this notion at the outset. Foreign currency is a vital component that is linked directly to cross border trade and cross border investments. Importers need to pay for their imports; exporters need to be paid. Financial institutions need to invest money in other countries as they seek to maximise returns in respect of shareholders, pensions and the like. Foreign loans may be held in respect of short, medium and long-term financing requirements.
Trading in foreign currencies is a highly skilled, specialist operation. It is usually carried out by banks, brokers and specialist financial institutions.
Although there is a wide range of risks that can be classified as relating to foreign currency trading I am going to limit myself to three “core” risks that affect this type of activity – currency risk, settlement risk and operational risk.
Currency Risk
The price that a currency is traded at is the exchange rate (or the foreign-exchange rate, forex rate or FX rate). It is always stated in terms of another currency. The FX rate spells out how much one currency is worth in terms of the other – e.g. one British pound is worth 1.60 US dollars.
Currency risk is the risk that comes about from the change in price of one currency against another. This usually occurs as a result of changes in demand for one of the currencies. Changes in demand are often driven by changes in basic macroeconomic conditions such as inflation, employment, taxation, changes in cross-border trade or other factors. Political instability or civil disturbances can drastically change the FX rate in literally seconds.
When businesses conduct transactions in different currencies, the business is exposed to risk. The risk arises because the currencies price may move in relation to each other between the start and the finalization of the transaction. Revenue and costs can move up or down as exchange rates change. If a firm has borrowed money in a different currency, the repayments on the loan could change or, if the firm has invested in another country, the returns on investment may alter with exchange rate movements — this is usually known as foreign currency exposure.
Settlement Risk
Settlement risk is the risk that one counterparty to a transaction does not deliver a security or its cash value according to the agreed settlement terms after the other counterparty has already delivered security or cash value for its side of the deal.
This particular risk was very prevalent in foreign exchange settlements because of the nature of FX settlement practices. This risk is also known as Herstatt risk after the German bank that made this type of risk famous. On 26th June 1974, German bank regulators withdrew that bank’s license to operate. They did this at the end of the banking day in Germany (4:30pm local time). However some banks had undertaken foreign exchange transactions with Herstatt on that day and had already paid Deutsche Mark to the Herstatt, believing they would receive US dollars later the same day in the US from Herstatt's US accounts. 4:30 pm in Germany was 10:30 am in New York! Herstatt’s failure stopped all dollar payments to its counterparties at that time, leaving these counterparties unable to collect payments due to them. Today CLS Bank, which was eventually created as a result of these events, has eliminated this type of risk in the seventeen currencies that are covered (as of the end of 2010).
Operational Risk
An operational risk is one that comes about from the carrying out of a firm’s business functions. Operational Risk is defined in the Basel Accords as “the risk of direct or indirect loss resulting from inadequate or failed internal processes, people and systems or from external events”.
This type of risk is very wide ranging. It comes about from the risks connected to people, systems and processes through which the firm operates. Included are other categories such as fraud risks, legal risks, physical or environmental risks.
There are many operational risks that can be directly related to Foreign Currency Trading. In what follows I highlight a few that I consider the most critical.
Electronic trading with customers – FX trading activity is increasingly centered on remote electronic workstations. This requires much greater care regarding special precautions concerning passwords and system access. These measures would include recognizing the importance of guarding individual passwords, protecting the software and hardware on individual workstation and the need to have up-to-date virus protection.
24/7 Operations and “Off-Site” Trading - Foreign exchange trading takes place on a continuous round the clock basis. Twenty-four-hour trading can distort the distinction between regular end-of-day and intra-day position risk limits. This change requires that additional control procedures are in place for trading that is conducted outside of normal business hours, either from the office or elsewhere.
Mistrades – These could arise for a number of different reasons such as an unacceptable counterparty name was presented or the cover amount presented could not cover the transaction
Disputes – Usually come about over misunderstandings or errors either by a trader or a broker. Managers and traders need to recognize that when a trade is aborted, it may not be possible for the broker to find another counterparty at the same original price.
Product design – The development of new products must be properly supported and approved. This covers a whole gamut of issues such as product approval, implementation procedures, signoffs by legal, compliance, tax, audit, systems, operations, business unit, risk management, and accounting departments.
The word “risk” is pretty high in most folk’s awareness these days. This greater consciousness of the “R” word has in part been driven by the 2008 financial crisis and its persistent refusal to “go away”. Any article on risk needs to set its baseline by ensuring that the word “risk” has a clear definition.
There are many different explanations of the word risk. My preference is to keep it short and to the point. Dictionery.com’s definition that “risk” is “exposure to the chance of injury or loss” suits me fine.
The concept of trading in foreign currencies also needs some explanation. The events of the past few years have led to the impression that foreign currency trading is somehow “bad” and that it is linked to speculation and shady deals.
Let us dispel this notion at the outset. Foreign currency is a vital component that is linked directly to cross border trade and cross border investments. Importers need to pay for their imports; exporters need to be paid. Financial institutions need to invest money in other countries as they seek to maximise returns in respect of shareholders, pensions and the like. Foreign loans may be held in respect of short, medium and long-term financing requirements.
Trading in foreign currencies is a highly skilled, specialist operation. It is usually carried out by banks, brokers and specialist financial institutions.
Although there is a wide range of risks that can be classified as relating to foreign currency trading I am going to limit myself to three “core” risks that affect this type of activity – currency risk, settlement risk and operational risk.
Currency Risk
The price that a currency is traded at is the exchange rate (or the foreign-exchange rate, forex rate or FX rate). It is always stated in terms of another currency. The FX rate spells out how much one currency is worth in terms of the other – e.g. one British pound is worth 1.60 US dollars.
Currency risk is the risk that comes about from the change in price of one currency against another. This usually occurs as a result of changes in demand for one of the currencies. Changes in demand are often driven by changes in basic macroeconomic conditions such as inflation, employment, taxation, changes in cross-border trade or other factors. Political instability or civil disturbances can drastically change the FX rate in literally seconds.
When businesses conduct transactions in different currencies, the business is exposed to risk. The risk arises because the currencies price may move in relation to each other between the start and the finalization of the transaction. Revenue and costs can move up or down as exchange rates change. If a firm has borrowed money in a different currency, the repayments on the loan could change or, if the firm has invested in another country, the returns on investment may alter with exchange rate movements — this is usually known as foreign currency exposure.
Settlement Risk
Settlement risk is the risk that one counterparty to a transaction does not deliver a security or its cash value according to the agreed settlement terms after the other counterparty has already delivered security or cash value for its side of the deal.
This particular risk was very prevalent in foreign exchange settlements because of the nature of FX settlement practices. This risk is also known as Herstatt risk after the German bank that made this type of risk famous. On 26th June 1974, German bank regulators withdrew that bank’s license to operate. They did this at the end of the banking day in Germany (4:30pm local time). However some banks had undertaken foreign exchange transactions with Herstatt on that day and had already paid Deutsche Mark to the Herstatt, believing they would receive US dollars later the same day in the US from Herstatt's US accounts. 4:30 pm in Germany was 10:30 am in New York! Herstatt’s failure stopped all dollar payments to its counterparties at that time, leaving these counterparties unable to collect payments due to them. Today CLS Bank, which was eventually created as a result of these events, has eliminated this type of risk in the seventeen currencies that are covered (as of the end of 2010).
Operational Risk
An operational risk is one that comes about from the carrying out of a firm’s business functions. Operational Risk is defined in the Basel Accords as “the risk of direct or indirect loss resulting from inadequate or failed internal processes, people and systems or from external events”.
This type of risk is very wide ranging. It comes about from the risks connected to people, systems and processes through which the firm operates. Included are other categories such as fraud risks, legal risks, physical or environmental risks.
There are many operational risks that can be directly related to Foreign Currency Trading. In what follows I highlight a few that I consider the most critical.
Electronic trading with customers – FX trading activity is increasingly centered on remote electronic workstations. This requires much greater care regarding special precautions concerning passwords and system access. These measures would include recognizing the importance of guarding individual passwords, protecting the software and hardware on individual workstation and the need to have up-to-date virus protection.
24/7 Operations and “Off-Site” Trading - Foreign exchange trading takes place on a continuous round the clock basis. Twenty-four-hour trading can distort the distinction between regular end-of-day and intra-day position risk limits. This change requires that additional control procedures are in place for trading that is conducted outside of normal business hours, either from the office or elsewhere.
Mistrades – These could arise for a number of different reasons such as an unacceptable counterparty name was presented or the cover amount presented could not cover the transaction
Disputes – Usually come about over misunderstandings or errors either by a trader or a broker. Managers and traders need to recognize that when a trade is aborted, it may not be possible for the broker to find another counterparty at the same original price.
Product design – The development of new products must be properly supported and approved. This covers a whole gamut of issues such as product approval, implementation procedures, signoffs by legal, compliance, tax, audit, systems, operations, business unit, risk management, and accounting departments.
Tuesday, 10 May 2011
Africa and the Mobile – A look into the future
Below is an interesting presentation chronicling thoughts on the future of mobile in Africa in 2020 by various African experts. The presentation was co-curated by Rudy De Waele of M-trends, Erik Hersman of Ushahidi and Ken Banks of Kiwanja.net.
What do you think? Your comments are welcome.
What do you think? Your comments are welcome.
Mobile Trends 2020 Africa
View more presentations from Rudy De Waele
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