Global banking technologies in 2022

Banks have been making serious digital waves in recent years. The pandemic can already be considered as a milestone in the evolution of banking, thanks to a confluence of trends that are revamping the industry by initiating business to adapt to the needs of employees and customers, making digital banking the way of the future.

Today, banks have grown more proactive as a result of COVID-19, questioning long-held assumptions and becoming more adaptable and innovative.

Check out some of the trends that will be most influential in disrupting banking in 2022 and enabling an exciting new future for banking.

  1. Hyperautomation and RPA
  2. Embedded banking
  3. Open Banking – Creating a ‘Digitally Yours’ Ecosystem
  4. Fintech
  5. The rise of Neobanks
  6. Blockchain & Cryptocurrency
  7. Machine Learning and trading

Hyperautomation and RPA

Gartner, an IT research and advisory group, coined the phrase hyperautomation in 2019. Hyperautomation is the process of automating manual operations using advanced technology such as machine learning and robotic process automation (RPA).

According to Deloitte, “using collaborative intelligence, technology and humans work together. Employees can start learning how to use automation and other software. Through Machine Learning, they can get to a state of AI-enabled decision-making. With hyper automation, companies can begin to reimagine work..”

Embedded banking

Embedded banking, which involves banking outside of a bank branch, internet, or mobile app, began to gain traction in 2021 and is expected to continue in 2022. The most apparent illustration of this trend recently has been the purchase now/pay later loans given on shopping websites, but it extends beyond that..

Banks and other financial service providers will aim to present products to customers at the most convenient time for them. Offering mortgages when someone is looking for a new home online, as well as personal loans through home contractors, doctors, veterinarians, and lawyers, are examples of this. It is possible that businesses may be able to open bank accounts through their accounting software.

Open Banking – Creating a ‘Digitally Yours’ Ecosystem

In the banking industry, customers always come first. A flawless client experience not only boosts the bank’s legitimacy, but it also helps to build a lifetime of loyalty across its whole customer base. Following traditional banking intricacies could prove to be damaging to multinational banks’ growth as they seek to improve their customer connection and experience. For the industry, a compelling innovation strategy is unavoidable. And it is here that open banking plays a crucial role.

Open banking, a technology-driven strategy, gives financial ecosystems the chance to ‘innovate continuously’ and market themselves as ‘Digitally Yours’ for their consumers. When banks adopt an end-to-end approach, they assure a successful and long-term customer experience.

Fintech

A blend of the words “finance” and “technology,” Fintech refers to any company that employs technology to improve or automate financial services and operations. The term refers to a rapidly growing industry that provides a variety of services to both consumers and businesses. Fintech has an almost infinite amount of applications, ranging from mobile banking to insurance to cryptocurrency and investment apps.

Fintech firms incorporate cutting-edge technologies (such as artificial intelligence, blockchain, and data science) into traditional financial services to make them safer, faster, and more efficient.

The rise of Neobanks

The fintech industry includes a considerable part of mobile banking. In the sphere of personal finance, consumers are increasingly requesting simple digital access to their bank accounts, particularly on mobile devices. Almost all major banks now provide mobile banking, thanks to the growth of digital-first banks, or “Neobanks.”

Neobanks do not have physical branches and provide customers with checking, savings, payment services, and loans through a fully mobile and digital infrastructure. Chime, Simple, and Varo are examples of neobanks.

Blockchain & Cryptocurrency

Cryptocurrencies and blockchain are gaining traction in tandem with fintech. Blockchain allows cryptocurrency mining and marketplaces to exist. Both blockchain and fintech are responsible for advancements in cryptocurrency technology. Gemini, Spring Labs, and Circle are some of the most essential blockchain companies, while Coinbase and SALT are examples of cryptocurrency-focused companies.

Machine Learning and trading

Being able to predict where markets will go is the Holy Grail of finance. It is no surprise that machine learning is becoming more prevalent in fintech, with billions of dollars on the line. The strength of this Artificial Intelligence subset rests in its capacity to process huge amounts of data using algorithms designed to detect trends and dangers, giving consumers, businesses, banks, and other firms a better knowledge of investment and purchasing risks earlier in the process.

Digital banking in 2022 is about reinventing how banks engage and interact with their consumers in all elements of their operations, not just new technology or digital services. In 2022, banks will have a lot of opportunity to leverage digital tools and data-driven personalisation to get to know their clients, give them advice, and help them achieve financial wellness.

Enhance your banking and financial knowledge and steer your career on the fast track with an online MBA in Global Banking & Finance. Learn more about the course:

GAAP vs IFRS

Difference Between GAAP and IFRS

In the world of accounting, there are two different standards of financial reporting. International Financial Reporting Standards (IFRS) and Generally Accepted Accounting Principles (GAAP). IFRS is the most widely used system in the world, with over 110 countries using this method of accounting for publicly traded companies. The United States of America is the only country that is yet to make the switch to this method of reporting.

GAAP vs IFRS is the most debatable topic in accounting where the former is defined as the financial reporting method having universal applicability while the latter are the set of guidelines made for financial accounting. As an account professional or business owner, it is vital to know the variations of these accounting methods, in order to successfully manage your company globally, as well as domestically.

Top 10 key differences between IFRS and GAAP accounting:

1. Adoption

IFRS is a globally adopted method for accounting, while GAAP is exclusively used within the United States.

2. Methodology

GAAP focuses on research and is rule-based, whereas IFRS looks at the overall patterns and is based on principle.

3. Developed by

The principles of IFRS are issued by the International Accounting Standard Board (IASB), while GAAP are issued by Financial Accounting Standard Board (FASB)

4. Inventory Methods

GAAP uses the Last In, First Out (LIFO) method for inventory estimates. However, in IFRS, the LIFO method for inventory is not allowed.

5. Inventory Reversal

IFRS and GAAP accounting also differ when it comes to inventory write-down reversals. In GAAP, the amount of the write-down cannot be reversed. However, under IFRS, the amount of the write-down can be reversed.

6. Income Statements

Extraordinary or unusual items are included in the income statement and not segregated under IFRS. While, under GAAP, they are separated and shown below the net income portion of the income statement.

7. Intangible Assets

When it comes to intangible assets, IFRS takes into account whether an asset will have a future economic benefit as a way of assessing the value. Intangible assets measured under GAAP are recognized at the fair market value and nothing more.

8. Fixed Assets

In fixed assets, companies using GAAP accounting must value these assets using the cost model. IFRS uses a different model for fixed assets called the revaluation model.

9. Development Costs

Development costs can be capitalized under IFRS, as long as certain criteria are met. With GAAP, development costs are not allowed to be capitalized.

10. Quality Characteristics

Finally, the qualitative characteristics of how the accounting methods function. GAAP uses a hierarchy of characteristics, such as relevance, reliability, comparability and understandability, to make informed decisions based on user-specific circumstances. IFRS also works with the same characteristics, except that decisions cannot be made based on an individual’s specific circumstances.

The value of accounting knowledge

Understanding these key differences between IFRS and GAAP accounting is important so your company can accurately do business internationally. You can improve your understanding of these accounting standards by taking an online course so that you can examine financial statements more effectively and learn more about your company’s performance.  

Join an MBA in Accounting and Finance program to understand explicit instruction in accounting principles and all financial standards. Get the master’s degree online or part-time with Exeed College for career advancement.

Accounting and Finance

Scope of MBA in Accounting and Finance

Finance is the backbone of every economy. With the continuous uptrend in the world economy, the job opportunities are also increasing at a rapid pace, especially for managerial positions. This has resulted in a huge demand for MBA professionals across the world.

MBA or Master’s degree in Business Administration is thought to be one of the most prestigious and sought after degrees in the world. It attracts people from a wide range of academic disciplines. It is one of the few degrees that involve meticulous training, assignments, and presentations, all of which provide you the crucial abilities required to manage real-life business situations.

Here’s an insight into the scope of MBA in Accounting and Finance.

MBA in Accounting and Finance

MBA Accounting and Finance is basically hard core accounts. Students who are fond of accounts and number-crunching can take up this specialization.It is a globally recognized qualification that presents a lucrative career. This degree can lead you to an outstanding career and position in multinational corporations around the world. It equips you to handle jobs in global financial markets, studying global trends and international portfolios.

Candidates considering careers in corporate treasury, retail banking and consumer finance positions will benefit with an MBA degree in Accounting and Finance. It combines particularly well with Strategic Management, Marketing Management, and Operations Management.

Benefits of MBA

Doing MBA in Accounting and Finance can be beneficial in many ways;

1. Boost your profile

Having an MBA degree will give you proper knowledge on corporate world and how it works.

2. Enhance your skills

It will give you professional skills that will help in your growth and development.

3. Develop your business expertise

An MBA is a very versatile degree that gives you business knowledge and adds value to your finance dealing expertise.

4. Start your own Business

Once you have an MBA degree, you can successfully run a business and provide employment too.

5. Dream Job

With your MBA degree, you can get into your dream job profile or company.

6. Career growth

Students who have an MBA in Accounting and Finance (Part Time or Distance Learning) can make their career in the finance sector and can hold these positions:

  • Risk and Insurance Managers
  • Management Consultants
  • Investment Bankers
  • Chief Financial Officers
  • Treasurers and Finance Officers
  • Financial Managers or Financial Analysts
  • Accounting Managers
  • Corporate Controllers

Scope of MBA in Accounting and Finance

Today, the scope of MBA has reached beyond expectations as it is one of the most demanding courses after graduation around the world. Many people are opting for this degree because of the vast scope and higher prospects. This program cover every finance courses ranging from finance, accounting, marketing, operational management, etc. Apart from these courses, this program also teach some practical skills like analytical skills, decision making, improved communication skills and better leadership skills.

A Master’s degree in Finance or Master of Business Administration degree in Accounting and Finance is designed to prepare a graduate for a career in financial analysis, credit management, investment management, investment banking, hedge funds, private equity, personal financial adviser and corporate finance. It can also qualify you for management consulting jobs as well as corporate finance positions.

Best Accounting Program

You can complete an MBA as quickly as one year (full-time), or up to three years (part-time) both on-campus and online. Online schools can be an excellent choice for many prospective students due to their flexible nature. If you are working during the day, an online MBA can be the answer to your dilemma of when you will have time to take classes.

The Internet has made things much smoother and sophisticated for distance learners. Previously, the books, notes and other related data were sent and received through the postal mail, which was not only time-consuming, but also hectic. But, now lectures, books and all the notes are easily delivered to the students online through email, or are uploaded in a group, where any student can easily download it.

The flexibility and simplicity offered by online MBA degree program is certainly something extremely substantial. Another great advantage of distance learning education is that you can start the course at any time of the year as per your own feasibility.

Conclusion

Earning an MBA will enhance your career and assist you in your quest for better, more beneficial jobs. It can open doors and highlight your success in both academics and business. An MBA signifies that you are educated and have the skill set to excel in your chosen field. To increase your value to your employers and clients and also get recognized among your peers, get that master’s degree and improve your value in your work place.

Choose your online MBA in accounting and Finance course that can drive you to the next level. The best affordable program for busy working professionals to transform into a global leader. Contact Exeed College