Month: April 2018

Advantages Of Net Banking

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Is the nature of company forcing customers to make use of internet banking? Or, is there something in it for the consumers? Indeed there are lots of advantages to performing web banking.

1. It’s quick to open an world wide web banking account. You sit, within the comfort of your house or office, and sort within your answers to a few questions. You set up the security measures which will be used to access your account, like usernames, passwords, etc. Then, all you need to do is print off and sign a form to send in to complete the process.

2. Web banking is cheaper. With the benefit of having no physical structure to keep up, virtual banks have low overhead. They can afford to cut you a break by offering higher interest rates on your savings. They will also provide lower overdraft fees. Even banks which are backed by physical buildings encourage on the internet banking with free of charge bill paying services.

3. Web banking enables you to compare deals easily. You’ll be able to go to various online banks and discover their interest rates and policies about checking and savings accounts. You may find out what credit cards they give, and at what rates. You may compare loan terms. It is possible to check with the FDIC to check the banks’ credibility.

4. World wide web banking consumers can watch their daily balances. By going on the web to the bank’s site it is possible to take a look at what’s going on within your account any day or time. You are able to check your balance. You’ll be able to find out if a particular check has cleared your account or see when automatic deposits are made. All these services make check bouncing almost a factor of the past.

5. Your monthly statement can be reconciled by making use of your personal computer. You can download your bank data into a software program like Quicken or Microsoft Funds. Then, having a couple of clicks of your mouse you’ll be able to square up your account. By way of your web banking account, you are able to even see copies of checks you might have written.

6. You’ve got a superior opportunity to catch fraudulent use in case you have an internet banking account. Whenever you check your debits and deposits, you’ll most likely notice if some thing is there that you did not do. If someone withdraws money from your account, you’ll know it as soon as you log on and look over your account. Then, you may work on correcting the situation long before you would even notice it with conventional banking.

7. World wide web banking is much a lot more convenient than traditional banking. You do not need to wait for the bank to open its doors. You don’t have to drive to get there. If you are employing web banking for your office, you will not need to waste valuable time going to the bank. You’ll be able to manage your funds anywhere, any time.

Internet banking is growing for a reason. Individuals are getting accustomed to transacting business over the internet. They’re enjoying the convenience plus the control over their dollars that world wide web banking gives them.

Convenient Banking Solutions By Asb Fast Net Services

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ASB (Auckland Savings Bank)bank was started in 1847. Operational in New Zealand, it is one of the biggest banks, with branches throughout the nation. To offere convenient banking solutions, it established its Internet Banking Services (IBS) to offer following solutions to its retail and commercial customers.

Providing valuable information

Easy E- banking services

Apply for any product online

Secure Online transaction facility

Check balances and statements

Transfer funds and make bill payments

It also provides credit card authorization for e-merchants. The bank operates in a very secure platform. Any body can visit the bank’s official website www.asbbank.co.nz and find valuable information there.

ASB fastnet was launched in in April 1996.

The Online Services offered by ASB Online banking are:-

ASB Card Pay:-
It is a real-time credit card payment facility used for business purposes where products are sold via internet by mail order or through a call center. Customers details are captured and are transmitted to the bank. After authorization, the fund is credited to customers bank account.

Payment Express:- It is a Visa and MasterCard certified solution used in electronic payments from multiple access points.

Support:- Provides support and assistance in protecting your account against fraudulent acts and protect confidential information. Also ensures 24-hours a day, seven days a week helpdesk support and back-up services.

Paystation services:-It is a Paymark Certified Solutions Provider that specializes in making easy payment processing and lowering the technology entry level and cost. It supports Internet credit card payment facilities provided by New Zealand banks – ANZ, ASB, Bank of New Zealand, Kiwi bank, The National Bank and Westpac.

Voice mail service:-The bank is currently using a computer telephony integration (CTI) plug-in that delivers voice mail to an e-mail inbox, and integrates calendar and directory functions.

Mobile commerce services:-Customers can securely pay for goods and services from their bank account using their mobile phone.

VISA business card of ASB:- It is useful in paying for business purchases and expenses.

Business saver:-It is an online business deposit account used for GST, provisional tax and other business expenses.

Stream line account:- Online monitoring of accounts. Only you have to ‘register in “Statement Stopper’ in FastNet Classic.

Fast saver:-Fast Saver is the phone and internet, high interest savings account.

Why Indians Prefer Banking Sector Jobs

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The economy of India has evolved a lot over the last couple of years. There are a lot of foreign companies who have set up their business units in the country and are already doing brisk business. The employment opportunities offered by these companies are very much lucrative, but that does not stop the Indians from admiring government more than private jobs.

The biggest factor that usually plays in the mind is job security. The population of India is growing like anything and so are the living costs. Under such circumstances, one cannot risk being kicked out of a job for not being able to perform according to the expectations of the employers. All of us want to have a steady income to meet our family needs without having to worry much about job security. The working culture in most private companies is very competitive and they don’t hesitate to replace a candidate with someone else whom they think would bring them more profits. This is a fairly common practice and they do this without giving enough time to the candidate to find himself a new job.

The compensation offered to the candidate while firing him is also very little. Under such circumstances it becomes very difficult for a conservative Indian to find himself a new job without losing his dignity. No wonder, the Indians prefer the security of government jobs over the huge compensation and growth opportunities offered by the private companies.

There is one more problem also. The cost of establishing a business unit in India is very low and within the reach of all kinds of private investors. This makes it very easy for the private companies to shut doors whenever they run into losses and stop functioning entirely. Whenever this happens, it is the employees who are left running from pillar to post looking for a new job to sustain their families. Such things have happened in India quite a number of times in the recent years and people seem to have learnt their lessons.

In private companies, people are expected to work for long hours. This is something that Indians find difficult to live with. Indians not only love to spend a lot of time with their families, but also spent some time pursuing their personal interests and hobbies. In this country family comes first; money and carrier growth are actually secondary. No wonder, most people in this country prefer low-paying jobs with low working hours compared to high paying jobs with high working hours. The government jobs just fit the bill!

Software Investment Banking – The Art Of Business Valuation

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One of the most challenging aspects of selling a software company is coming up with a business valuation. Sometimes the valuations provided by the market (translation – a completed transaction) defy all logic. In other industry segments there are some pretty handy rules of thumb for valuation metrics. In one industry it may be 1 X Revenue, in another it could be 7.5 X EBITDA.

Since it is critical to our business to help our information technology clients maximize their business selling price, I have given this considerable thought. Why are some of these software company valuations so high? It is because of the profitability leverage of technology?

A simple example is what is Microsoft’s incremental cost to produce the next copy of Office Professional? It is probably $1.20 for three CD’s and 80 cents for packaging. Let’s say the license cost is $400. The gross margin is north of 99%. That does not happen in manufacturing or services or retail or most other industries.

One problem in selling a small technology company is that they do not have any of the brand name, distribution, or standards leverage that the big companies possess. So, on their own, they cannot create this profitability leverage. The acquiring company, however, does not want to compensate the small seller for the post acquisition results that are directly attributable to the buyer’s market presence. This is what we refer to as the valuation gap.

What we attempt to do is to help the buyer justify paying a much higher price than a pre-acquisition financial valuation of the target company. In other words, we want to get strategic value for our seller. Below are the factors that we use in our analysis:

1. Cost for the buyer to write the code internally – Many years ago, Barry Boehm, in his book, Software Engineering Economics, developed a constructive cost model for projecting the programming costs for writing computer code. He called it the COCOMO model. It was quite detailed and complex, but I have boiled it down and simplified it for our purposes.

We have the advantage of estimating the projects retrospectively because we already know the number of lines of code comprising our client’s products. In general terms he projected that it takes 3.6 person months to write one thousand SLOC (source lines of code). So if you looked at a senior software engineer at a $70,000 fully loaded compensation package writing a program with 15,000 SLOC, your calculation is as follows – 15 X 3.6 = 54 person months X $5,800 per month = $313,200 divided by 15,000 = $20.88/SLOC.

Before you guys with 1,000,000 million lines of code get too excited about your $20.88 million business value, there are several caveats. Unfortunately the market does not care and will not pay for what it cost you to develop your product.

Secondly, this information is designed to help us understand what it might cost the buyer to develop it internally so that he starts his own build versus buy analysis. Thirdly, we have to apply discounts to this analysis if the software is three generations old legacy code, for example. In that case, it is discounted by 90%. You are no longer a technology sale with high profitability leverage. They are essentially acquiring your customer base and the valuation will not be that exciting.

If, however, your application is a brand new application that has legs, start sizing your yacht. Examples of this might be a click fraud application, Pay Pal, or Internet Telephony. The second high value platform would be where your software technology “leap frogs” a popular legacy application.

An example of this is when we sold a company that had completely rewritten their legacy distribution management platform for a new vertical market in Microsoft’s latest platform. They leap frogged the dominant player in that space that was supporting multiple green screen solutions. Our client became a compelling strategic acquisition. Fast forward one year and I hear the acquirer is selling one of these $100,000 systems per week. Now that’s leverage!

2. Most acquirers could write the code themselves, but we suggest they analyze the cost of their time to market delay. Believe me, with first mover advantage from a competitor or, worse, customer defections, there is a very real cost of not having your product today.

We were able to convince one buyer that they would be able to justify our seller’s entire purchase price based on the number of client defections their acquisition would prevent. As it turned out, the buyer had a huge install base and through multiple prior acquisitions was maintaining six disparate software platforms to deliver essentially the same functionality.

This was very expensive to maintain and they passed those costs on to their disgruntled install base. The buyer had been promising upgrades for a few years, but nothing was delivered. Customers were beginning to sign on with their major competitor.

Our pitch to the buyer was to make this acquisition, demonstrate to your client base that you are really providing an upgrade path and give notice of support withdrawal for 4 or 5 of the other platforms. The acquisition was completed and, even though their customers that were contemplating leaving did not immediately upgrade, they did not defect either. Apparently the devil that you know is better than the devil you don’t in the world of information technology.

3. Another arrow in our valuation driving quiver for our sellers is we restate historical financials using the pricing power of the brand name acquirer. We had one client that was a small IT company that had developed a fine piece of software that compared favorably with a large, publicly traded company’s solution. Our product had the same functionality, ease of use, and open systems platform, but there was one very important difference.

The end-user customer’s perception of risk was far greater with the little IT company that could be “out of business tomorrow.” We were literally able to double the financial performance of our client on paper and present a compelling argument to the big company buyer that those economics would be immediately available to him post acquisition. It certainly was not GAP Accounting, but it was effective as a tool to drive transaction value.

4. Financials are important so we have to acknowledge this aspect of buyer valuation as well. We generally like to build in a baseline value (before we start adding the strategic value components) of 2 X contractually recurring revenue during the current year.

So, for example, if the company has monthly maintenance contracts of $100,000 times 12 months = $1.2 million X 2 = $2.4 million as a baseline company value component. Another component we add is for any contracts that extend beyond one year. We take an estimate of the gross margin produced in the firm contract years beyond year one and assign a 5 X multiple to that and discount it to present value.

Let’s use an example where they had 4 years remaining on a services contract and the last 3 years were $200,000 per year in revenue with approximately 50% gross margin. We would take the final tree years of $100,000 annual gross margin and present value it at a 5% discount rate resulting in $265,616. This would be added to the earlier 2 X recurring year 1 revenue from above. Again, this financial analysis is to establish a baseline, before we pile on the strategic value components.

5. We try to assign values for miscellaneous assets that the seller is providing to the buyer. Don’t overlook the strategic value of Blue Chip Accounts. Those accounts become a platform for the buyer’s entire product suite being sold post acquisition into an installed account. It is far easier to sell add-on applications and products into an existing account than it is to open up that new account. These strategic accounts can have huge value to a buyer.

6. Finally, we use a customer acquisition cost model to drive value in the eyes of a potential buyer. Let’s say that your sales person at 100% of Quota earns total salary and commissions of $125,000 and sells 5 net new accounts. That would mean that your base customer acquisition cost per account was $25,000. Add a 20% company overhead for the 85 accounts, for example, and the company value, using this methodology would be $2,550,000.

After reading this you may be saying to yourself, come on, this is a little far fetched. These components do have real value, but that value is open to a broad interpretation by the marketplace. We are attempting to assign metrics to a very subjective set of components. The buyers are smart, and experienced in the M&A process and quite frankly, they try to deflect these artistic approaches to driving up their financial outlay.

The best leverage point we have is that those buyers know that we are presenting the same analysis to their competitors and they don’t know which component or components of value that we have presented will resonate with their competition. In the final analysis, we are just trying to provide the buyers some reasonable explanation for their board of directors to justify paying 8 X revenues for an acquisition.

The Most Difficult Interview Question For Banking You Should Know

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Don’t be caught with the most difficult interview question for banking. Interviewers are not monsters to be scared of. They are assigned to perform the task of choosing the best person fit for the job. Tricky questions are actually teasers for them to know how you cope with pressures because the banking industry is a complicated arena of services, personalities, financial corporate players, systems, policies and regulations, among many others.

Nailing the most difficult interview question for banking seem to be every applicant’s concern. There are already a lot of insider secrets on how to succeed at interviews, ebooks, websites, and a whole lot more of resources for the interviewee to exploit. There are actually a myriad of approaches to overcome the most difficult interview question for banking. All it takes is for you to go beyond the confines of your comfort zone and exert more efforts to turn this gruelling interview into an opportunity for you.

Possible Difficult Questions And How To Answer Them

Many people who have gone through interviews find the simple and easy questions to be the most challenging – with worries of giving a too plain answer. It only takes practice, and tactical strategy to counter this.

1. Say something about yourself

Reply to this by highlighting your good qualities that you have spelled out in your resume. Focus on the qualities that fit into the job. Keep your answers brief and concise and interesting enough to hold the interviewer’s attention.

2. What is your most undesirable weakness and how will you overcome it?

Do not admit directly your weakness as this might jeopardize your chances. Instead, pacify the interviewer by demonstrating that you are aware of this weakness and you are trying to ameliorate yourself from it. The safest way to answer this it to simply cite a flaw rather than a weakness.

3. What was biggest challenge you faced in your career and the intervention you made?

Be critical when answering this question. Again, this might bring you down. Elaborate how you were able to manage and get past through it successfully. Do not give the impression that you are prone to mistakes.

4. Do you believe that you are the right person for the job?

Do not answer with yes or no. Instead highlight your best qualities, job experiences and attitudes relevant to the position. Always make sure that the reference point is the post you are applying for.

5. How much are you worth (salary-wise)?

Do not over rate or under rate. The best thing is to base your salary range on standard industry rates. Indicate your openness and flexibility to negotiations rather than demanding.

Do what it takes to make it easier for you and don’t get stumped by the most difficult interview question on banking. Be prepared beforehand by knowing and understanding these questions and learning how to answer appropriately. Practise and master the questions, as well as the answers.