Source: FE CREDIT
To grow grain you need seed. To get seed you need something valuable as an exchange. When you want to get more seed, you need more valuables. This marks the beginning of investment. The finance provider developed a common sense-thinking process to guide an investment. This process we now call a mindset, includes 10 defined steps.
Investors have a long history, started some 4,500 years ago. To please their gods people would bring valuables to the temple. These were kept in storage. One day a temple’s high priest decided to help a farmer to buy seeds by lending him some of the temple’s valuables. He proposed the farmer to pay back the loan after selling the harvest, with interest. The farmer agreed. This priest became the first investor; this farmer the first credit customer. As long as disaster or war didn’t destroy the harvest, it was a genuine win-win for both the priest and the farmer. Commercial credit was born.
From tradesmen to Emperors, many followed this system, which has worked for many centuries. Some call it the “financing of civilization”.
The investors’ mindset
What went on in the mind of the temple’s high priest is essentially similar to what goes on in the modern investor’s mind. Ten steps:
- I have funds I don’t need for living expenses.
- I wonder if I can somehow grow my funds.
- I look around for companies who need money to grow something.
- I find opportunities to lend money to companies I trust will pay me back on time and with interest.
- With each opportunity I estimate the risk I will lose my money and the possibility to make money.
- As there is always some amount of risk, I choose a risk that suits me.
- I communicate with the company’s decision makers about the amount and the terms. We come to agreement & sign a contract.
- I make the amount payable.
- I follow developments to see if the company keeps their side of the agreement until the full amount plus interest is paid back.
- I evaluate the investment. If I’m happy with the result, I will most probably invest again.
When investors become gamblers
Some investors like high risks. They like a game with high stakes. In the world of start-ups there is little or no certainty the investment will be profitable. It’s all based on the investor’s belief in the entrepreneur and his willingness to support him. We all know the stories of start-ups that become a big success and start-ups that don’t. Still the 10 steps are the same. It’s just a matter of choosing a risk that suits you – Step 6. For these investors – sometimes called “angels” – the balance between gambling and investing is what makes it interesting for them. They like the game-factor. They like the “adrenaline rush” that comes with an investment without real certainties. They learn from both winning and losing.
Consumer finance: investment in people
While an investor is focusing on companies, a consumer finance company focuses on individuals. It is investing in people. So what goes on in the investor’s mind is quite similar to the procedures applied in granting credit to a private customer.
Like investors study the companies they consider for investment, consumer finance companies study the market of potential borrowers. Investors enable consumer finance companies to invest in individuals, who don’t qualify for a regular bank loan. To avoid gambling the consumer finance company uses advanced consumer profiling to reduce the risk. It’s up to the consumer finance company to build a reputation of professionalism and trust to convince investors that their relationship is a potential “win-win”.
The dynamics of the consumer finance market
StoxPlus’s Vietnam Consumer Finance Market Report 2016 indicates that the consumer finance market in Vietnam has witnessed the fastest growth in 2015 with a growth rate of 44.1% compared to 18% in 2014. The outstanding loan balance soared from US$10.5bn in December 2014 to US$15.12bn at the end of 2015.
In 2020 the Vietnamese consumers are forecasted to spend a robust 40%+ more than in 2016 according to Tradingeconomics.com. More and more customers become receptive to the idea of leveraging their income to finance the purchase of useful durable goods and avail various types of services to improve their lifestyles. The competitive dynamics in the Vietnamese consumer finance market have also changed significantly with the arrival of new consumer finance companies and increased competition within the traditional consumer finance market.
The proof of the pudding is in the eating
At the end of the day investing is all about producing high-returned results. This is where steps 5, 6 and 7 come in. Only with sound procedures, applied by well-trained and experienced sales professionals risk is minimized, results are maximized.
FE CREDIT understands and applies the lessons learned from the ancient high priests all the way up to present time. It services people who want to upgrade their lives now, and pay back with future income.
Over the past 5 years, FE CREDIT has served nearly 3 million Vietnamese customers, who despite earning a decent income, are often neglected by banks. FE CREDIT has achieved its market leading position thanks to pioneering in providing the most advanced products and services from personal loans, two-wheeler loans, consumer durables loans, credit cards.
FE CREDIT was awarded by the Global Banking & Finance Review (GBAF – the United Kingdom) the title of “Best Consumer Finance Company Vietnam 2015”. The company is expanding its distribution channels, smarter infrastructure and continuously developing its risk management practices by benchmarking with the world’s best practices.
Book: Financing Civilization by William N. Goetzmann, Yale University, School of Organization and Management, published 1994
Duo glide around world’s largest fountain in Dubai
Paragliders Llorens and Goberna take magical flight above the Palm Fountain.
Horacio Llorens and Rafael Goberna defied gravity to perform The Breaking Pointe flight around the world’s biggest fountain at The Pointe, Palm Jumeirah in Dubai. Here is all you need to know:
– Spaniard Llorens is a five-time world champion and Infinity Tumbling Guinness World Record holder, who has performed a series of spectacular projects during the last five years including paragliding with a flock of starlings and with the beautiful Aurora Borealis as a backdrop.
– Brazilian Goberna was a Guinness Book of World Records winner at only 12-years-old and, in December 2016, he took to the skies above one of the seven wonders of the natural world when paragliding at Iguazu Falls.
– This time around, the duo teamed up in Dubai to showcase The Palm Fountain at the Pointe, Palm Jumeirah. They overcame a tricky preparation period to expertly glide between the fountain’s powerful jets of water.
– Spanning across the boulevard, the Palm Fountain features two giant floating platforms covering 14,000 square metres of sea water. Reaching an impressive 105 metres high and lighting up the Dubai sky with 3,000 LED lights, the fountain “dances” to hit songs from sunset until midnight.
– They undertook training first at Paramotor Desert Adventure on January 12 to test out their brakes and motors with technician Ramon Lopez finally arriving after being held up by the heavy snow in Madrid.
– Training was crucial for the challenge of flying during the night with low visibility as safety director Alan Gayton ensured they had a reserve parachute in case of a technical issue with the main parachute. Llorens and Goberna also had to study the movement of the water with great precision in order not to get caught up in the jets of water
– Flying over water, it was also mandatory to have a lifejacket with rescue boats, jet skis and divers on hand which came handy when Goberna suffered a technical malfunction on the first January 14 practice run.
– After repairs long into the night, they returned to Paramotor Desert Adventure to test out the motors again before completing the stunning flight on January 15 with Llorens and Goberna performing in harmony.
– Llorens, 38, revealed: “As soon as we got the opportunity, we wanted to fly there. We needed to know the area really well beforehand and we needed to know how to ‘play’ with the fountain – this was new for us. Such strong streams of water shooting 100 metres up is a lot, so we had to be really prepared.”
– Goberna, 26, explained: “The motor wasn’t flying so good because, prior to arriving in Dubai, it was last used in Europe at high altitude. I needed to adjust the carburettor in the air inside the motor. In the first practice flight over the water, I broke one propeller. I really couldn’t understand what was happening and then another one broke. Eventually, a backup motor was required. After a long journey, the final result was beautiful! The team worked incredibly hard to make it.”
– Llorens added: “The highlight for me was playing between the super shooters with Rafael, because it’s something we’ve never done before; it felt really new and really powerful.”
EU sets itself jobs, training and equality targets for 2030
By Jan Strupczewski
BRUSSELS (Reuters) – The European Commission on Thursday announced goals for the 27-nation bloc to reduce poverty, inequality and boost training and jobs by 2030 as part of a post-pandemic economic overhaul financed by jointly borrowed funds.
The EU executive arm said the European Union should boost employment to 78% in 2030 from 73% in 2019, halve the gap between the number of employed women and men and cut the number of young people neither working nor studying to 9% from 12.6%
“With unemployment and inequalities expected to increase as a fallout of the pandemic, focusing our policy efforts on quality job creation, up- and reskilling and reducing poverty and exclusion is therefore essential to channel our resources where they are most needed,” the commission said.
The goals, which will have to be endorsed by EU leaders, also include an increase in the number of adults getting training every year to adapt to the EU’s transition to a greener and more digitalised economy to 60% from 40% now.
Finally, over the next 10 years, the EU should reduce the number of people at risk of poverty or social exclusion by 15 million from 91 million in 2019.
“These three 2030 headline targets are deemed ambitious and realistic at the same time,” the commission said.
The goals are part of the EU’s set of 20 social rights, agreed on in 2017, to make the EU more appealing to voters and counter eurosceptic sentiment across the bloc.
They say everybody has the right to quality education throughout their lives and that men and women must have equal opportunities in all areas and be paid the same for work of equal value.
The unemployed have the right to “personalised, continuous and consistent support”, while workers have the right “to fair wages that provide for a decent standard of living”.
(Reporting by Jan Strupczewski; Editing by Nick Macfie)
UK aero-engineer Meggitt eyes return to growth after pandemic slump
LONDON (Reuters) – British engineer Meggitt said that it could return to profit growth in 2021 provided there are no further lockdowns, despite a weakening in the struggling aviation market at the end of 2020 and early this year.
Pandemic restrictions halted much flying globally last year and forced plane makers Boeing and Airbus to cut production rates, dragging down suppliers like Meggitt, which makes and services parts for such aircraft.
Meggitt’s underlying operating profit plunged by 53% to 191 million pounds ($267 million) in 2020, it said on Thursday, despite continued growth in its defence business which makes parts for military jets and accounts for about 45% of the business.
Meggitt, however, said it expected air traffic to recover in the second half of the year which would help it return to profit growth over the year, although its guidance for flat revenue disappointed analysts who had expected growth of 6%.
Meggitt’s Chief Executive Tony Wood said in November that he had expected flying to start to recover by Easter, but new variants have led to more restrictions and delayed the recovery.
“It has gone back a couple of months… it’s now very much in the summer,” Wood said of the recovery in an interview on Thursday.
Further in the future, Meggitt is positioning itself for the move to lower emissions flying, and its sensors and electric motors will be used on electric urban air mobility platforms, such as flying taxis, and in hybrid aeroplanes being developed.
But Meggitt said new tax breaks announced in Britain’s annual budget on Wednesday aimed at encouraging investment would not change its plans.
“Yes, it will be a benefit. Are we looking at any acceleration as a result specifically of that? Not really,” Woods said.
Shares in Meggitt were down 1% to 427 pence at 0943 GMT. The stock has risen by 50% since news of a COVID-19 vaccine last November, but is still down 23% on where it was pre-pandemic.
($1 = 0.7165 pounds)
(Reporting by Sarah Young; Editing by Alistair Smout and Susan Fenton)
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Duo glide around world’s largest fountain in Dubai
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