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Post-Pandemic Economic Growth in a Digital World

By
Smriti Rajan
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0
Post-Pandemic Economic Growth in a Digital World2

The COVID-19 pandemic has brought economic activity to a near standstill as countries imposed tight restrictions on movement to halt the spread of the virus. The word unprecedented has been used a lot to describe the pandemic’s impact and continues to have on economies across the globe.

While that word may seem overused, as the health and human toll grow, the economic damage is already evident and represents the largest economic shock the world has experienced in decades. 

2020 was, without a doubt, an extremely turbulent year for the global economy, with lockdowns, sharp trade contraction, accelerated job losses, and supply-chain disruptions. Recovery started picking up towards the second half of the year with the easing of COVID-19 restrictions. The global economy nonetheless experienced a very deep 2020 recession.

COVID-19 has severely impacted businesses and the economy. Throughout the crisis, many companies responded to accelerated digital adoption and changing consumer needs with short-term solutions. As the shift to digital is here to stay, now is the time to assess what this means for the remainder of this year — and into 2021.

Digital tools have been a lifeline during the lockdown, and they will be a catalyst for the comeback. But what else will be key during this time? We have five predictions for this post-pandemic economic recovery to help you focus your strategic efforts and drive renewed growth for your business.

Recovery is the keyword in 2021, with continued easing up of restrictions, vaccine administration, and demand-side revival. Global growth is expected to accelerate to 5.3% in 2021. The pace of recovery is expected to be much stronger for the group of emerging markets and developed economies, especially supported by high growth rates for China and India.

Driving Higher Economic Growth 

The world is changing around us, and we need to take that into account in terms of the way we think about our growth outlook. The biggest risk to economic recovery is a lack of growth, says New York-based economist Dr. Dambisa Moyo.

She notes that not only will low growth prevent the funding of critical projects, but the impact will also see more disaffected people, a lack of trust in institutions, and short-term public policies.

Therefore, in an increasingly internationalized world, a global effort is needed to stimulate growth. It is crucial to acknowledge sectors of the economy have been impacted in different ways and some will take longer than others to recover.

Now is the time to make sure we are reforming the supply side of our economy through business investment incentives and individuals to upskill, to be able to come out of this stronger and better. 

Below are some key initiatives that the government institutions, policymakers, corporates, and individual stakeholders can take: 

  • Find new openings to build resilience through ‘health proofing’ and diversifying economies.
  • Build and strengthen innovation ecosystems from state, business, and academia-led R&D to commercialization, startups, entrepreneurship, and VC. 
  • Invest in inclusive growth and unlocking the maximum productive potential of all people in communities. 
  • Lead a skill and talent revolution – both digital and knowledge-based skills to ensure that they have a place in the post-pandemic economy.
  • Thrive to make cities citizen-centric, by providing efficient and high-quality public services, updated public infrastructure, and more affordable housing.

Digital transformation for economic recovery and business growth

With 2021 bringing no clear endpoint to uncertainty, businesses will need to shift their focus from short-term solutions to long-term digital transformation. Consumer behavior is already predicted to have permanently shifted more in favor of online shopping, making customer journeys more virtual whilst consumer needs and interests evolve quickly.

Capturing this changing demand requires organizations to fundamentally rethink their business models; structuring for agility, upgrading technical capabilities, and prioritizing data-driven decisions. Smarter automation and measurement can be especially useful tools to capture fluctuating demand and gain higher value from your marketing spend.

Digitally mature companies can gain an edge in building long-term customer relationships by using first-party data strategies based on the transparent value exchange framework. By structuring teams to be alert and responsive to changing consumer needs, it can be possible to stay competitive in these dynamic times.

The global acceleration of digital adoption has only heightened the need for digital marketing maturity. Businesses that use this moment as a catalyst for digital marketing transformation, will not only be more agile in responding to markets today but will have a more sustainable framework for the future.

Apps – a bigger driver for economic growth

Apps have become more present in our lives than ever before. They have allowed people to stay connected, healthy, and informed while being safe at home. At the beginning of 2020, time spent in apps grew 20%, as much of the world’s population was under some form of lockdown.

As we work towards economic recovery, apps will allow businesses to improve service and customer satisfaction while maintaining social distancing and lowering costs by more accurately predicting sales through advance orders, for example.

Take a look at Starbucks. The coffee company has been able to open stores and maintain social distancing by utilizing in-app ordering. Investing in their app allowed the chain to reduce in-store waiting time and alleviate lines at peak hours.

They are even shifting physical locations to a model focused on ordering within the app, making it easier for customers to get their coffee with a smaller physical footprint. On top of enabling social distancing, app orders generally lead to 37% higher spend for retailers. Fintech apps also saw a huge surge during the lockdown, like cash, ATMs, and branch usage dropped by 60%. This created an accelerated digital adoption in financial services, driving a 72% rise in the use of FinTech apps.

Brands from across verticals can help consumers during the economic recovery by investing in their app presence. It’s important to do this strategically, rather than replicating a website experience, to add additional value for consumers.

For example, by adding helpful functionalities such as remote check-in in hotels and rewards programs. That way customers can interact with their favorite brands easily, often, and in new ways.

Conclusion

Fundamental to building a robust, reimagined post-pandemic economy is keeping in mind the continual objectives of productivity improvement and inclusion. 

A post-COVID world is likely to see the global economy become less integrated as a result of trade barriers, reshoring of supply chains, and reduced labor migration and foreign direct investment. The individual resilience of businesses and workers during the unique and devastating COVID-19 crisis has been inspiring.

Government authorities, business leaders, and stalwarts across all sectors can take the opportunity to reimagine not just their economies but also how they could work in sync to become far more resilient, flexible, and prosperous. 

The Benefits Of Transformation For Finance

By
Dheeraj
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0
The Benefits Of Transformation For Finance

As a result of the COVID-19 pandemic, every area of commerce, from global supply chains to financial markets has been impacted. Finance functions have been made to evolve rapidly to keep up with the changes. Transformation, therefore, is crucial for finance to thrive in this new post-pandemic world. 

Even before the onset of the pandemic, finance was moving significantly towards digital transformation. However, today, digital transformation in finance is no longer a choice but a necessity. 

Finance is at the Center of Business Evolution

Business models are being adapted and rebuilt at a rapid pace and the finance function finds itself in a unique position – at the very heart of evolution across the organization. Business leaders who lead digital transformation initiatives can show significant cost savings and improved efficiency. But finance transformation must allow finance leaders to play a leading role in creating value for enterprises and managing performance. 

What Finance Needs to Thrive Today

If finance is to thrive in today’s world, agile reporting forecasting and flexibility in investments are key transformative features that finance leaders must embrace in their organizations. By turning valuable data into actionable insights, finance can evolve from being a business cost center to the engine that drives business performance. 

Businesses Save Costs by Embracing Digital Transformation

Business leaders must ask themselves whether their finance function and workforce can adapt to this challenge. 

Finance teams can benefit by reducing costs if they embrace digital transformation. Costs have a great impact on businesses, especially in a post-COVID-19 world. Businesses save on costs when operations are run more efficiently. 

When business leaders have data at their fingertips, they can make faster and more economic decisions. This allows them to build resilience. 

Automation is Key to Business Continuity

Several organizations are focusing on accelerating automation initiatives so that they can devote time to improving value-added services. In our increasingly virtual world, automated processes are essential for efficiency and enabling better control and resilience. 

Creating a Truly Agile Finance Operations

Businesses must consider embracing cloud services and automation. With access to innovations such as predictive analytics and machine learning, organizations can create a truly agile finance operation.

Business leaders must realize that back-office transformation alone is not enough. They must work towards creating a strong foundation for the evolution of every function of the business. 

When finance teams embrace digital transformation, they can meet the evolving demands of a post-pandemic world and deliver: 

  • 45 percent reduction in general accounting costs
  • 15 percent improvement in working capital 
  • 50 percent reduction in manual reconciliations

The last word

The pandemic has undoubtedly presented businesses with unprecedented challenges. Organizations are under immense pressure and the need of the hour is for the evolution of the finance function. Digital transformation in finance operations is essential for business continuity.

Managing Your Finances in the Gig Economy: Tips for Freelancers and Independent Contractors

By
Purvi Senapati
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0
Managing Your Finances in the Gig Economy Tips for Freelancers and Independent Contractors2

In recent years, the gig economy has been on the rise. With the advent of technology and the internet, more people are turning to freelance and independent contract work. While the flexibility of being your own boss can be appealing, it also means that you are responsible for managing your own finances.

Here are some tips for freelancers and independent contractors to help you manage your finances in the gig economy. 

Create a Budget 

The first step to managing your finances is to create a budget. You need to know how much money is coming in and going out each month.

Make a list of all your monthly expenses, including rent, utilities, groceries, transportation, and any other bills you may have. Then, add up your monthly income from all your gigs. Once you have a clear picture of your finances, you can start making adjustments and finding ways to save money. 

Separate Your Business and Personal Finances 

It’s important to keep your business and personal finances separate. This means having a separate bank account and credit card for your business expenses. It will make it easier to keep track of your income and expenses and will also make tax time less stressful. 

Keep Track of your Expenses 

As a freelancer or independent contractor, you may be eligible for tax deductions. However, you need to keep track of your expenses to take advantage of these deductions.

Keep receipts and records of all your business expenses, including equipment, software, and office supplies. You can use a spreadsheet or accounting software to keep track of your expenses. 

Save for Taxes 

Unlike traditional employees, freelancers and independent contractors are responsible for paying their own taxes. It’s important to set aside money each month to pay your taxes. A good rule of thumb is to save 30% of your income for taxes. 

Set Financial Goals 

Setting financial goals can help you stay motivated and focused on your finances. Whether it’s saving for a down payment on a house or paying off debt, having a clear goal in mind can help you make better financial decisions. 

Consider Getting Professional Help 

Managing your finances as a freelancer or independent contractor can be challenging. If you’re feeling overwhelmed, consider getting professional help. A financial advisor or accountant can help you create a budget, manage your expenses, and plan for your financial future. 

In conclusion, managing your finances as a freelancer or independent contractor requires a bit of extra effort and planning.

By creating a budget, separating your business and personal finances, keeping track of your expenses, saving for taxes, setting financial goals, and getting professional help when needed, you can take control of your finances and achieve financial success in the gig economy. 

 

Claim Denied! Avoiding the Most Common Mistakes that Lead to Rejected Insurance Claims

By
Purvi Senapati
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0
Claim Denied! Avoiding the Most Common Mistakes that Lead to Rejected Insurance Claims

As a policyholder, you expect your insurance to provide you with financial protection in times of need. Whether it’s a medical emergency, a car accident, or damage to your property, you rely on your insurance policy to cover the costs.  

However, insurance claims can sometimes be denied, leaving you in a difficult situation. To avoid this unfortunate scenario, it’s crucial to understand the most common mistakes that can lead to rejected insurance claims and take steps to avoid them. 

Providing Incomplete or Inaccurate Information

One of the most common mistakes people make when filing an insurance claim is providing incomplete or inaccurate information. It’s essential to provide all the necessary details and documentation to support your claim accurately.

Be honest and thorough when providing information about the incident, including dates, times, and descriptions of the events. Failure to provide accurate information can result in your claim being denied. 

Failing to Understand Your Policy

Insurance policies can be complex, and many people do not fully understand the terms and conditions of their coverage. Before filing a claim, it’s crucial to review your insurance policy thoroughly and understand what is covered and what is not.  

Pay attention to the exclusions, deductibles, and limitations of your policy. If you have any questions, don’t hesitate to reach out to your insurance agent or company for clarification.

Being knowledgeable about your policy can help you avoid filing claims for incidents that are not covered, reducing the risk of denial. 

Delaying the Claim Process

Another mistake that policyholders often make is delaying the claim process. Insurance companies typically have strict timelines for filing claims, and failing to file within the specified timeframe can result in denial.  

It’s essential to report any incident to your insurance company as soon as possible and follow their instructions on how to proceed with the claim. Prompt action can help you avoid unnecessary delays and increase the chances of a successful claim. 

Not Providing Adequate Evidence

Insurance claims require evidence to support your case. Whether it’s photos, receipts, medical records, or other documentation, providing adequate evidence is critical to substantiate your claim. 

Failure to provide proper documentation or evidence can result in your claim being denied for lack of proof. Make sure to gather all relevant documents and evidence to support your claim and provide them to your insurance company as required. 

Failing to Follow Insurance Company’s Procedures

Each insurance company has its own set of procedures and requirements for filing claims. It’s important to follow these procedures carefully to ensure that your claim is processed smoothly. 

 Failing to do so can result in your claim being denied. Review your insurance company’s claim filing instructions and follow them meticulously, including filling out forms accurately, submitting documents on time, and complying with any additional requirements. 

In conclusion, avoiding the most common mistakes that lead to rejected insurance claims requires careful attention to detail and understanding of your insurance policy and company’s procedures.  

Provide complete and accurate information, understand your policy, file your claim promptly, provide adequate evidence, and follow your insurance company’s instructions to increase the chances of a successful claim. 

By avoiding these mistakes, you can protect your financial interests and ensure that your insurance coverage serves its intended purpose when you need it the most. 

The State of Small Business Funding in 2024: What Entrepreneurs Need to Know

By
Purvi Senapati
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0
The State of Small Business Funding in 2024 What Entrepreneurs Need to Know

As we head into 2024, small business owners continue to face challenges when it comes to securing funding. Whether you’re just starting out or looking to expand, understanding the current state of small business funding is crucial to your success.  

In this blog post, we’ll take a closer look at the state of small business funding in 2024 and what entrepreneurs need to know. 

Traditional funding sources are still hard to come by 

Traditional funding sources such as banks and credit unions continue to be challenging for small businesses to access.  

In fact, according to a recent survey, only 26% of small business owners who applied for funding from a traditional bank were approved. This is due in part to the stringent lending standards that these institutions have in place. 

Alternative funding options are on the rise  

Fortunately, there are alternative funding options that are becoming more readily available to small businesses. These include crowdfunding, angel investors, and online lenders.  

Crowdfunding platforms like Kickstarter and Indiegogo allow entrepreneurs to raise money from a large number of people who believe in their product or service. Angel investors are individuals who invest their own money in startups in exchange for equity. 

Online lenders provide quick access to capital, often with less stringent lending standards than traditional banks. 

Increased competition means more options for small businesses

As alternative funding options become more popular, competition among lenders has increased. This means that small businesses now have more options than ever when it comes to funding.  

However, it’s important to do your research and choose a reputable lender with fair terms and rates. 

The importance of a strong credit score  

While alternative funding options may be more accessible than traditional funding sources, having a strong credit score is still important. 

Lenders will still look at your credit history when considering your application. If you have a low credit score, consider working to improve it before applying for funding. 

Alternative funding options can be expensive  

While alternative funding options may be more accessible, they often come with higher interest rates and fees than traditional loans. It’s important to weigh the cost of borrowing against the potential benefits of accessing capital. 

In conclusion, while traditional funding sources remain difficult for small businesses to access, there are alternative funding options available. As competition among lenders increases, small businesses have more options than ever before.  

However, it’s important to do your research and choose a reputable lender with fair terms and rates. Additionally, having a strong credit score is still important, and alternative funding options can be expensive.

By understanding the current state of small business funding in 2024, entrepreneurs can make informed decisions about their financing options. 

How to Maintain and Upgrade a Strong Credit Profile

By
Purvi Senapati
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0
How to Maintain and Upgrade a Strong Credit Profile

Your credit score plays a crucial role in determining your financial health and future opportunities. Whether you’re planning to buy a car, apply for a mortgage, or even rent an apartment, having a healthy credit profile is essential.  

In this blog post, we will delve into the world of credit scores, exploring what they are, how they are calculated, and most importantly, how you can improve and maintain a healthy credit profile. 

What is a Credit Score?

Your credit score is a three-digit number that represents your creditworthiness. It reflects your borrowing and repayment history, and lenders use it to evaluate the risk associated with lending your money. FICO and Vantage Score are two common credit scoring models used in the United States. 

Factors That Affect Your Credit Score

In the following lines, we are going to cover these aspects in their entirety and learn more about them.

Payment History

Timely payment of bills and loan installments is crucial for maintaining a good credit score 

Credit Utilization Ratio

This ratio compares your total credit card balances to your credit limits. Keeping this ratio below 30% is advisable.  

Length of Credit History

The longer your credit history, the better. It demonstrates your ability to manage credit responsibly.  

Credit Mix

A healthy credit mix, including credit cards, loans, and mortgages, can have a positive impact on your score.  

New Credit

Opening multiple new credit accounts within a short period can lower your score temporarily. 

Tips to Improve Your Credit Score

In the following lines, we are going to cover these aspects in their entirety and learn more about them.

Pay Bills on Time

Automate payments or set reminders to ensure you never miss a payment.  

Reduce Credit Card Debt

Aim to pay off outstanding balances and keep your credit utilization low. 

Monitor Your Credit Report

Regularly check your credit report for errors or fraudulent activities. 

Build a Positive Credit History

Consider a secured credit card or becoming an authorized user on someone else’s account.  

Be Patient

Improving your credit score takes time, so stay consistent with good financial habits. 

Maintaining a Healthy Credit Profile

In the following lines, we are going to cover these aspects in their entirety and learn more about them.

Regularly Check Your Credit Score

Monitor your credit score and review your credit report at least once a year.

Avoid Frequent Credit Applications

Limit the number of credit applications to prevent unnecessary credit inquiries.

Keep Old Accounts Open

Closing old accounts can shorten your credit history and potentially lower your score.

Use Credit Responsibly

Be cautious with your credit card spending and make sure to pay off balances in full. 

Understanding credit scores and actively working towards improving and maintaining a healthy credit profile is a vital step towards financial success. By following these practical tips, you can take control of your credit and pave the way for better opportunities and financial well-being.

Remember, a healthy credit profile is a valuable asset that can open doors to your dreams and aspirations. Start building your creditworthiness today!

 

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