Complying with all the laws and regulations of the financial industry is not an easy job for banks, and it just keeps getting more difficult. Thanks to the rise of crime around the world, banks are under government pressure to implement important know-your-customer rules that are designed to thwart money laundering and fraud. The cost of that regulation alone is an estimated $10 million. However, banks can now outsource the expertise and technology to a company that specializes in helping them fully comply with government oversight. These companies are known as regtech, short for regulatory technology. And they might charge the bank just $300,000 to handle the requirements for the banks. But the regtech companies profit by supplying their expertise to many customers, taking advantage of economies of scale. Plus, they use the most advanced technological tools such as the blockchain, advanced software and Artificial Intelligence. That’s why outsourcing this expertise to a regtech company is so much less expensive for the banks than keeping the specialized data in-house. Even a high-powered firm of lawyers can’t compete with regtech.
That’s why Jeff Yastine says regtech is an important new technological sector investors should consider putting their money into. He covers it in his financial newsletter, Total Wealth Insider.
International banks have an especially difficult task. They must follow the laws and regulations of every country they operate in, even though every country passes its own laws and they are often different from each other. Let’s Talk Payments is a financial technology website. They estimate the cost for international banks to comply with every regulator around the world is $70 billion. And it estimates that will rise to $120 billion in the next three years. And the cost of complying with banking regulations is even higher in the European Union than in the United States. The same $10 million it costs a bank in the U.S. to track the identities of their customers amounts to $1 billion in Europe, according to HSBC and Deutsche Bank. Learn more at Seeking Alpha about Jeff Yastine
The regtech opportunity is becoming even bigger as the regulators are learning about these companies. They are willing to give these regtech companies access to information in the same way federal regulators work with Moody’s and Standard & Poor’s to establish credit ratings for the bond market. Making sure the regtech companies are up to speed makes the job of regulators that much easier, without giving any one particular bank a competitive advantage over another. For more updates, visit:https://stocktwits.com/jeffyastine
Joel Friant – also known as The Thai Guy – is an entrepreneur and businessman who studies the art of success and teaches others how to be successful.
Joel has experience in several branches of business. He has worked in real estate, both as a salesman and as a home remodeler. Using his real estate experience, Joel even opened an office that specialized in real estate mortgage loans.
Joel has also worked in the restaurant business. He founded the nations first Thai based fast food restaurant (this is where he got the name The Thai Guy) in 1995. This restaurant was a big success and it is where Joel got the idea for his most popular product – the Original Habanero Shaker.
The Original Habanero Shaker uses quality habanero peppers. The peppers are dried and then custom flaked so that each shaker is packed with spicy and smoky flavor. The Original Habanero Shaker can be used to add a delicious kick to any food and maintains the perfect level of spiciness – not too hot and not too cold.
The Original Habanero Shaker was an instant hit, and Joel managed to get it a spot on the shelves of nearly every major grocery retailer in the state of Washington.
Joel decided to study success as a science after the 2008 financial crisis. He looked at the different reasons some people achieved success and he explored the reason others didn’t achieve success. Joel developed a concept called the Income Thermostat and used this method to teach seminars and to publish articles on success. He has helped many people, from business owners to individuals, achieve success.
Joel currently continues to grow the Original Habanero Shaker. He has also taken an interest in cryptocurrency and teaches others how to use it to fund their businesses or other projects.
More one Joel Friant: https://crunchbase.com/person/joel-friant
Mergers and acquisitions is where you should focus in order to make money from investments.
Shareholders in Embraer, Brazil’s airplane maker, got a thirty percent windfall when it was announced that Boeing was looking at combining with the company. The government of Brazil is the largest shareholder and want to sell part of the company instead of all of it. It might call for financial terms that are onerous. They are already playing a game of musical chairs because it isn’t just aerospace but chip manufacturing, chemicals, media, consumer goods, and pharmaceuticals in addition to other industries. Follow Jeff Yastine at stocktwits.com
Invest in These Competitors of Amazon
The United States retail sector is an area where lots of merger and acquisition activity is expected to be seen this year. It is believed that Amazon’s competitors will be merging this year to compete more effectively with Amazon.com. A good candidate for buy out is eBay. Google is a potential buyer because it needs a retail arm on the internet to come compete with Amazon. EBay would be a good place to start since it has fulfillment warehouses in place and is a known retail brand.
Grocery chain Kroger with almost three thousand stores in the United States is another potential buyout for competitors of Amazon. While stock is down thirty-five percent from previous highs it has been successful at organic food sells. This is what resulted in Whole Foods partnering with Amazon. Kroger is planning to begin offering self-checkout in its stores this year.
While W.W. Grainger Inc is thought of as a business the sell industrial supplies the warehouses and centers for distribution make it an asset for anyone hoping to effectively compete against Amazon.
These companies are already profitable so there is not any work to be done making them profitable. Visit Jeff Yastine at medium .com to know more.
Mr. Yastine is the Total Wealth Insider editor. He joined Banyan Hill Publishing in 2015 as its editorial director. He has over two decades experience as a financial journalist and investor in the stock market. Jeff Yastine has been nominated for an Emmy and his financial newsletter is one of the most successful around.
To know more, Click here:https://jeffyastine.tumblr.com/